Document:

exv4w10

 

Exhibit 4.10

Exhibit C to Note Purchase Agreement

 

INDENTURE AND SECURITY AGREEMENT

([Reg. No.])

Dated as of ____________ ___, 20__1

between

DELTA AIR LINES, INC.,

and

U.S. BANK TRUST NATIONAL ASSOCIATION,

as Loan Trustee

One Boeing [Model]

(Generic Manufacturer and Model BOEING [Generic Model]) Aircraft

U.S. Registration No. [Reg. No.]

 

			
	1	 	To insert the relevant Closing Date.

 

Indenture and Security Agreement (2011-1 EETC)

[Reg. No.]

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page

	ARTICLE I

DEFINITIONS
	 	 	 	 
	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	9	 
	Section 1.02 Other Definitional Provisions
	 	 	9	 
	 
	 	 	 	 
	ARTICLE II

THE EQUIPMENT NOTES
	 	 	 	 
	 
	 	 	 	 
	Section 2.01 Form of Equipment Notes
	 	 	10	 
	Section 2.02 Issuance and Terms of Equipment Notes
	 	 	16	 
	Section 2.03 Method of Payment
	 	 	18	 
	Section 2.04 Withholding Taxes
	 	 	19	 
	Section 2.05 Application of Payments
	 	 	19	 
	Section 2.06 Termination of Interest in Collateral
	 	 	20	 
	Section 2.07 Registration, Transfer and Exchange of Equipment Notes
	 	 	20	 
	Section 2.08 Mutilated, Destroyed, Lost or Stolen Equipment Notes
	 	 	22	 
	Section 2.09 Payment of Expenses on Transfer; Cancellation
	 	 	22	 
	Section 2.10 Mandatory Redemption of Equipment Notes
	 	 	22	 
	Section 2.11 Voluntary Redemption of Equipment Notes
	 	 	23	 
	Section 2.12 Redemptions; Notice of Redemptions; Repurchases
	 	 	24	 
	Section 2.13 Subordination
	 	 	25	 
	Section 2.14 Certain Payments
	 	 	26	 
	Section 2.15 Repayment of Monies for Equipment Note Payments Held by Loan Trustee
	 	 	28	 
	Section 2.16 Directions by Subordination Agent
	 	 	28	 
	 
	 	 	 	 
	ARTICLE III

RECEIPT, DISTRIBUTION AND APPLICATION OF INCOME FROM THE COLLATERAL
	 	 	 	 
	 
	 	 	 	 
	Section 3.01 Basic Distributions
	 	 	29	 
	Section 3.02 Event of Loss; Optional Redemption
	 	 	29	 
	Section 3.03 Payments After Event of Default
	 	 	31	 
	Section 3.04 Certain Payments
	 	 	35	 
	Section 3.05 Payments to Company
	 	 	36	 
	Section 3.06 Cooperation
	 	 	36	 
	Section 3.07 Securities Account
	 	 	36	 

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Table of Contents
(Continued)

	 	 	 	 	 
	 	 	Page
	ARTICLE IV

EVENTS OF DEFAULT; REMEDIES OF LOAN TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	Section 4.01 Events of Default
	 	 	37	 
	Section 4.02 Remedies
	 	 	39	 
	Section 4.03 Remedies Cumulative
	 	 	43	 
	Section 4.04 Discontinuance of Proceedings
	 	 	44	 
	Section 4.05 Waiver of Past Defaults
	 	 	44	 
	Section 4.06 Noteholders May Not Bring Suit Except Under Certain Conditions
	 	 	44	 
	Section 4.07 Appointment of a Receiver
	 	 	45	 
	 
	 	 	 	 
	ARTICLE V

DUTIES OF LOAN TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	Section 5.01 Notice of Event of Default
	 	 	45	 
	Section 5.02 Action upon Instructions; Certain Rights and Limitations
	 	 	46	 
	Section 5.03 Indemnification
	 	 	47	 
	Section 5.04 No Duties Except as Specified in Indenture or Instructions
	 	 	47	 
	Section 5.05 No Action Except under Indenture or Instructions
	 	 	47	 
	Section 5.06 Investment of Amounts Held by Loan Trustee
	 	 	47	 
	 
	 	 	 	 
	ARTICLE VI

LOAN TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	Section 6.01 Acceptance of Trusts and Duties
	 	 	48	 
	Section 6.02 Absence of Certain Duties
	 	 	49	 
	Section 6.03 No Representations or Warranties as to the Documents
	 	 	49	 
	Section 6.04 No Segregation of Monies; No Interest
	 	 	49	 
	Section 6.05 Reliance; Agents; Advice of Counsel
	 	 	50	 
	Section 6.06 Instructions from Noteholders
	 	 	50	 
	 
	 	 	 	 
	ARTICLE VII

OPERATING COVENANTS OF COMPANY
	 	 	 	 
	 
	 	 	 	 
	Section 7.01 Liens
	 	 	51	 
	Section 7.02 Possession, Operation and Use, Maintenance and Registration
	 	 	52	 
	Section 7.03 Inspection; Financial Information
	 	 	59	 
	Section 7.04 Replacement and Pooling of Parts; Alterations, Modifications and
Additions; Substitution of Engines
	 	 	61	 

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Table of Contents
(Continued)

	 	 	 	 	 
	 	 	Page
	Section 7.05 Loss, Destruction or Requisition
	 	 	63	 
	Section 7.06 Insurance
	 	 	69	 
	 
	 	 	 	 
	ARTICLE VIII

SUCCESSOR AND ADDITIONAL TRUSTEES
	 	 	 	 
	 
	 	 	 	 
	Section 8.01 Resignation or Removal; Appointment of Successor
	 	 	78	 
	Section 8.02 Appointment of Additional and Separate Trustees
	 	 	79	 
	 
	 	 	 	 
	ARTICLE IX

AMENDMENTS AND WAIVERS
	 	 	 	 
	 
	 	 	 	 
	Section 9.01 Amendments to this Indenture without Consent of Holders
	 	 	81	 
	Section 9.02 Amendments to this Indenture with Consent of Holders
	 	 	83	 
	Section 9.03 Amendments, Waivers, Etc. of the Participation Agreement
	 	 	84	 
	Section 9.04 Revocation and Effect of Consents
	 	 	84	 
	Section 9.05 Notation on or Exchange of Equipment Notes
	 	 	85	 
	Section 9.06 Trustee Protected
	 	 	85	 
	Section 9.07 No Consent of Individual Indenture Indemnitees Required
	 	 	85	 
	 
	 	 	 	 
	ARTICLE X

MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	Section 10.01 Termination of Indenture
	 	 	85	 
	Section 10.02 No Legal Title to Collateral in Noteholders
	 	 	86	 
	Section 10.03 Sale of Aircraft by Loan Trustee is Binding
	 	 	86	 
	Section 10.04 Indenture for Benefit of Company, Loan Trustee and Noteholders
	 	 	86	 
	Section 10.05 Notices
	 	 	86	 
	Section 10.06 Severability
	 	 	88	 
	Section 10.07 No Oral Modification or Continuing Waivers
	 	 	88	 
	Section 10.08 Successors and Assigns
	 	 	88	 
	Section 10.09 Headings
	 	 	88	 
	Section 10.10 Normal Commercial Relations
	 	 	88	 
	Section 10.11 Voting by Noteholders
	 	 	89	 
	Section 10.12 Section 1110
	 	 	89	 
	Section 10.13 Company’s Performance and Rights
	 	 	89	 
	Section 10.14 Counterparts
	 	 	89	 
	Section 10.15 Governing Law
	 	 	90	 
	Section 10.16 Confidential Information
	 	 	90	 
	Section 10.17 Submission to Jurisdiction
	 	 	90	 

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Table of Contents
(Continued)

	 	 	 	 	 
	 	 	Page

			

	Exhibit A

	 	Form of Indenture Supplement
	Exhibit B

	 	List of Permitted Countries
	Exhibit C

	 	Certain Terms
	 
	 	 
	Schedule I

	 	Description of Equipment Notes
	Schedule II

	 	Pass Through Trust Agreement and Pass Through Trust Supplements
	 
	 	 
	Annex A

	 	Definitions

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INDENTURE AND SECURITY AGREEMENT

([REG. NO.])

     This INDENTURE AND SECURITY AGREEMENT ([REG. NO.]), dated as of _______________ ___,
20__2, is made by and between DELTA AIR LINES, INC., a Delaware corporation (together
with its successors and permitted assigns, “Company”), and U.S. BANK TRUST NATIONAL
ASSOCIATION, a national banking association, not in its individual capacity, except as expressly
stated herein, but solely as Loan Trustee hereunder (together with its permitted successors
hereunder, “Loan Trustee”).

W I T N E S S E T H:

     WHEREAS, the parties desire by this Indenture (such term and other capitalized terms used
herein without definition being defined as provided in Article I), among other things, to provide
for (i) the issuance by Company of the Equipment Notes specified on Schedule I hereto (as,
in the case of any Series B Equipment Notes issued after the Closing Date, such Schedule I may be
amended in connection with such issuance), and (ii) the assignment, mortgage and pledge by
Company to Loan Trustee, as part of the Collateral hereunder, among other things, of all of
Company’s estate, right, title and interest in and to the Aircraft, as security for, among other
things, Company’s obligations to Loan Trustee, for the equal and proportionate benefit and security
of Noteholders, Indenture Indemnitees and Related Indenture Indemnitees, subject to Section 2.13
and Article III;

     WHEREAS, all things have been done to make the Equipment Notes of the Series listed on
Schedule I hereto (as, in the case of any Series B Equipment Notes issued after the Closing Date,
such Schedule I may be amended in connection with such issuance), when executed by Company and
authenticated and delivered by Loan Trustee hereunder, the valid, binding and enforceable
obligations of Company; and

     WHEREAS, all things necessary to make this Indenture a legal, valid and binding obligation of
Company for the uses and purposes herein set forth, in accordance with its terms, have been done
and performed and have occurred;

GRANTING CLAUSE

 

			
	2	 	To insert the relevant Closing Date.

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     NOW, THEREFORE, (x) to secure the prompt and complete payment (whether at stated
maturity, by acceleration or otherwise) of principal of, Make-Whole Amount, if any, and interest
on, the Equipment Notes and all other Secured Obligations payable by Company under the Operative
Documents and the performance and observance by Company of all the agreements and covenants to be
performed or observed by Company for the benefit of Noteholders and Indenture Indemnitees contained
in the Operative Documents and (y) to secure the Related Secured Obligations, and in
consideration of the premises and of the covenants contained in the Operative Documents and the
Related Indentures, and for other good and valuable consideration given by Noteholders, Indenture
Indemnitees and Related Indenture Indemnitees to Company at or before the Closing Date, the receipt
and adequacy of which is hereby acknowledged, Company does hereby grant, bargain, sell, convey,
transfer, mortgage, assign, pledge and confirm unto Loan Trustee and its successors in trust and
permitted assigns, for the security and benefit of Noteholders, each Indenture Indemnitee and each
Related Indenture Indemnitee, a first priority security interest in, and mortgage lien on, all
estate, right, title and interest of Company in, to and under, all and singular, the following
described properties, rights, interests and privileges, whether now owned or hereafter acquired
(which, collectively, together with all property hereafter specifically subject to the Lien of this
Indenture by the terms hereof or any supplement hereto, are included within, and are referred to
as, the “Collateral”):

     (1) the Aircraft, including the Airframe and the Engines, whether or not any such Engine from
time to time is installed on the Airframe or any other airframe or any other aircraft, and any and
all Parts relating thereto, and, to the extent provided herein, all substitutions and replacements
of, and additions, improvements, accessions and accumulations to, the Aircraft, including the
Airframe, the Engines and any and all Parts (in each case other than Excluded Equipment) relating
thereto (such Airframe and Engines as more particularly described in the Indenture Supplement
executed and delivered with respect to the Aircraft on the Closing Date or with respect to any
substitutions or replacements therefor) and together with all logs, manuals, modification and
maintenance records at any time required to be maintained with respect to the Aircraft in
accordance with the rules and regulations of the FAA if the Aircraft is registered under the laws
of the United States or the rules and regulations of the government of the country of registry if
the Aircraft is registered under the laws of a jurisdiction other than the United States;

     (2) the Warranty Rights, together with all rights, powers, privileges, options and other
benefits of Company under the same;

     (3) all requisition proceeds with respect to the Aircraft or any Part thereof, and all
insurance proceeds with respect to the Aircraft or any Part thereof, but excluding

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all proceeds of, and rights under, any insurance maintained by Company and not required, or in
excess of that required, under Section 7.06(b);

     (4) all moneys and securities held by Loan Trustee pursuant to paragraph (vii) of clause
“third” of Section 3.03, all rents, revenues and other proceeds collected by Loan Trustee pursuant
to Section 4.02(a), all moneys and securities from time to time paid or deposited or required to be
paid or deposited to or with Loan Trustee by or for the account of Company pursuant to any term of
any Operative Document and held or required to be held by Loan Trustee hereunder or thereunder,
including the Securities Account and all monies and securities deposited into the Securities
Account; and

     (5) all proceeds of the foregoing;

     PROVIDED, HOWEVER, that notwithstanding any of the foregoing provisions, so long as no Event
of Default shall have occurred and be continuing, Company shall have the right, to the exclusion of
Loan Trustee, (i) to quiet enjoyment of the Aircraft, the Airframe, the Parts and the
Engines, and to possess, use, retain and control the Aircraft, the Airframe, the Parts and the
Engines and all revenues, income and profits derived therefrom and (ii) with respect to the
Warranty Rights, to exercise in Company’s name all rights and powers of Buyer (as defined in the
Purchase Agreement) under the Warranty Rights and to retain any recovery or benefit resulting from
the enforcement of any warranty or indemnity or other obligation under the Warranty Rights;
provided, further, that notwithstanding the occurrence and continuation of an Event
of Default, Loan Trustee shall not enter into any amendment or modification of the Purchase
Agreement that would alter the rights, benefits or obligations of Company thereunder;

     TO HAVE AND TO HOLD all and singular the aforesaid property unto Loan Trustee, and its
successors and permitted assigns, in trust for the equal and proportionate benefit and security of
Noteholders, Indenture Indemnitees and Related Indenture Indemnitees, except as otherwise provided
in this Indenture, including Section 2.13 and Article III, without any priority of any one
Equipment Note over any other, or any Related Equipment Note over any other, by reason of priority
of time of issue, sale, negotiation, date of maturity thereof or otherwise for any reason
whatsoever, and for the uses and purposes and in all cases and as to all property specified in
paragraphs (1) through (5) inclusive above, subject to the terms and provisions set forth in this
Indenture.

     It is expressly agreed that notwithstanding anything herein to the contrary, Company shall
remain liable under the Purchase Agreement to perform all of the

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obligations of Buyer thereunder, and, except to the extent expressly provided in any Operative
Document, none of Loan Trustee, any Noteholder, any other Indenture Indemnitee or any Related
Indenture Indemnitee shall be required or obligated in any manner to perform or fulfill any
obligations of Company under or pursuant to any Operative Document, or have any obligation or
liability under the Purchase Agreement by reason of or arising out of the assignment hereunder, or
to make any inquiry as to the nature or sufficiency of any payment received by it, or present or
file any claim or take any action to collect or enforce the payment of any amount that may have
been assigned to it or to which it may be entitled at any time or times.

     Notwithstanding anything herein to the contrary (but without in any way releasing Company from
any of its duties or obligations under the Purchase Agreement), Loan Trustee, Noteholders, other
Indenture Indemnitees and Related Indenture Indemnitees confirm for the benefit of Manufacturer
that in exercising any rights under the Warranty Rights, or in making any claim with respect to the
Aircraft or other goods and services delivered or to be delivered pursuant to the Purchase
Agreement, the terms and conditions of the Purchase Agreement relating to the Warranty Rights,
including, without limitation, the warranty disclaimer provisions for the benefit of Manufacturer,
shall apply to and be binding upon Loan Trustee, Noteholders, other Indenture Indemnitees and
Related Indenture Indemnitees to the same extent as Company. Company hereby directs Manufacturer,
so long as an Event of Default shall have occurred and be continuing, to pay all amounts, if any,
payable to Company pursuant to the Warranty Rights directly to Loan Trustee to be held and applied
as provided herein. Nothing contained herein shall subject Manufacturer to any liability to which
it would not otherwise be subject under the Purchase Agreement or modify in any respect the
contract rights of Manufacturer thereunder except as provided in the Manufacturer’s Consent.

     Subject to the terms and conditions hereof, Company does hereby irrevocably constitute Loan
Trustee the true and lawful attorney of Company (which appointment is coupled with an interest)
with full power (in the name of Company or otherwise) to ask for, require, demand and receive any
and all monies and claims for monies (in each case including insurance and requisition proceeds)
due and to become due to Company under or arising out of the Purchase Agreement (to the extent
assigned hereby), and all other property which now or hereafter constitutes part of the Collateral,
to endorse any checks or other instruments or orders in connection therewith and to file any claims
or to take any action or to institute any proceedings which Loan Trustee may deem to be necessary
or advisable in the premises; provided that Loan Trustee shall not exercise any such rights
except during the continuance of an Event of Default. Company agrees that, promptly upon receipt
thereof, to the extent required by the Operative Documents, it will transfer to Loan Trustee any
and all monies from time to time received by Company constituting part of the Collateral, for
distribution by Loan Trustee pursuant to this Indenture.

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     Company does hereby warrant and represent that it has not sold, assigned or pledged, and
hereby covenants and agrees that it will not sell, assign or pledge, so long as this Indenture
shall remain in effect and the Lien hereof shall not have been released pursuant to the provisions
hereof, any of its estate, right, title or interest hereby assigned, to any Person other than Loan
Trustee, except as otherwise provided in or permitted by any Operative Document.

     Company agrees that at any time and from time to time, upon the written request of Loan
Trustee, Company shall promptly and duly execute and deliver or cause to be duly executed and
delivered any and all such further instruments and documents as Loan Trustee may reasonably deem
necessary to perfect, preserve or protect the mortgage, security interests and assignments created
or intended to be created hereby or to obtain for Loan Trustee the full benefit of the assignment
hereunder and of the rights and powers herein granted; provided that any instrument or
other document so executed by Company will not expand any obligations or limit any rights of
Company in respect of the transactions contemplated by the Operative Documents.

     IT IS HEREBY COVENANTED AND AGREED by and between the parties hereto as follows:

ARTICLE I

Definitions

     Section 1.01 Definitions. For all purposes of this Indenture, unless the context
otherwise requires, capitalized terms used but not defined herein have the respective meanings set
forth or incorporated by reference in Annex A.

     Section 1.02 Other Definitional Provisions.

     (a) The definitions stated herein and in Annex A apply equally to both the singular and the
plural forms of the terms defined.

     (b) All references in this Indenture to designated “Articles”, “Sections”, “Subsections”,
“Schedules”, “Exhibits”, “Annexes” and other subdivisions are to the designated Article, Section,
Subsection, Schedule, Exhibit, Annex or other subdivision of this Indenture, unless otherwise
specifically stated.

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     (c) The words “herein”, “hereof” and “hereunder” and other words of similar import refer to
this Indenture as a whole and not to any particular Article, Section, Subsection, Schedule,
Exhibit, Annex or other subdivision.

     (d) Unless the context otherwise requires, whenever the words “including”, “include” or
“includes” are used herein, they shall be deemed to be followed by the phrase “without limitation”.

     (e) All references in this Indenture to a “government” are to such government and any
instrumentality or agency thereof.

     (f) All references in this Indenture to a Person shall include successors and permitted
assigns of such Person.

ARTICLE II

The Equipment Notes

     Section 2.01 Form of Equipment Notes. The Equipment Notes shall be substantially in
the form set forth below:

THIS EQUIPMENT NOTE HAS NOT BEEN REGISTERED PURSUANT TO THE SECURITIES ACT
OF 1933, AS AMENDED (THE “ACT”), OR PURSUANT TO THE SECURITIES
LAWS OF ANY STATE OR OTHER JURISDICTION. ACCORDINGLY, THIS EQUIPMENT NOTE
MAY NOT BE OFFERED FOR SALE OR SOLD UNLESS EITHER REGISTERED UNDER THE ACT
AND SUCH APPLICABLE STATE OR OTHER LAWS OR EXEMPTIONS FROM SUCH
REGISTRATION REQUIREMENTS ARE AVAILABLE. IN ADDITION, THIS EQUIPMENT NOTE
IS SUBJECT TO RESTRICTIONS ON TRANSFER PURSUANT TO THE PARTICIPATION
AGREEMENT REFERRED TO HEREIN.

DELTA AIR LINES, INC.

SERIES 2011-1[__]-[___]

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EQUIPMENT NOTE DUE [MATURITY DATE]

ISSUED IN CONNECTION WITH THE BOEING MODEL [MODEL] (GENERIC

MODEL [GENERIC MODEL]) AIRCRAFT BEARING UNITED STATES

REGISTRATION NUMBER [REG. NO.]

			
	 	 	 
	No. __________
	 	Date: ________
	 
	DEBT RATE
	 	MATURITY DATE
	__________
	 	_______________

     DELTA AIR LINES, INC. (together with its successors and permitted assigns, “Company”)
hereby promises to pay to           , or the registered assignee thereof, the principal amount of
__________________________ Dollars ($___________) [on _______] 3 [in installments on the
Payment Dates set forth in Schedule I hereto, each such installment to be in an amount computed by
multiplying the original principal amount of this Equipment Note by the percentage set forth in
Schedule I hereto opposite the Payment Date on which such installment is due,] 4 and to
pay interest in arrears on each Payment Date at the Debt Rate shown above on the principal amount
remaining unpaid from time to time (calculated on the basis of a year of 360 days comprised of
twelve 30-day months) from the date hereof, or from the most recent date to which interest hereon
has been paid or duly provided for, until paid in full. [Notwithstanding the foregoing, the final
payment made on this Equipment Note shall be in an amount sufficient to discharge in full the
unpaid principal amount and all accrued and unpaid interest on, and any other amounts due under,
this Equipment Note.] 5 Notwithstanding anything to the contrary contained herein, if
any date on which a payment under this Equipment Note becomes due and payable is not a Business
Day, then such payment shall not be made on such scheduled date but shall be made on the next
succeeding Business Day with the same force and effect as if made on such scheduled date, and if
payment is made on such next succeeding Business Day, no interest shall accrue on the amount of
such payment from and after such scheduled date.

 

			
	3	 	To be inserted in non-installment Equipment Notes.
	 
	4	 	To be inserted in installment Equipment Notes.
	 
	5	 	To be inserted in installment Equipment Notes.

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     For purposes hereof, the term “Indenture” means the Indenture and Security Agreement ([Reg.
No.]), dated as of _________ ___, 20__, between Company and U.S. Bank Trust National Association,
as Loan Trustee (“Loan Trustee”), as the same may be amended, supplemented or otherwise
modified from time to time in accordance with its terms. All capitalized terms used in this
Equipment Note and not defined herein, unless the context otherwise requires, shall have the
respective meanings set forth or incorporated by reference, and shall be construed and interpreted
in the manner described, in the Indenture.

     This Equipment Note shall bear interest, payable on demand, at the Past Due Rate (and not the
Debt Rate) (calculated on the basis of a year of 360 days comprised of twelve 30-day months) on any
principal amount and (to the extent permitted by applicable law) Make-Whole Amount, if any,
interest, and any other amounts payable hereunder not paid when due for any period during which the
same is overdue, in each case for the period the same is overdue. Amounts shall be overdue if not
paid in the manner provided herein or in the Indenture when due (whether at stated maturity, by
acceleration or otherwise).

     There shall be maintained an Equipment Note Register for the purpose of registering transfers
and exchanges of Equipment Notes at the Corporate Trust Office of Loan Trustee, or at the office of
any successor trustee, in the manner provided in Section 2.07 of the Indenture.

     The principal amount and interest and other amounts due hereunder shall be payable in Dollars
in immediately available funds at the Corporate Trust Office of Loan Trustee, or as otherwise
provided in the Indenture. Company shall not have any responsibility for the distribution of any
such payment to Noteholder of this Equipment Note. Each such payment shall be made on the date
such payment is due and without any presentment or surrender of this Equipment Note, except that in
the case of any final payment with respect to this Equipment Note, the Equipment Note shall be
surrendered to Loan Trustee for cancellation.

     The holder hereof, by its acceptance of this Equipment Note, agrees that, except as provided
in the Indenture, including the subordination provisions referred to below, each payment of an
installment of principal amount, Make-Whole Amount, if any, and interest received by it hereunder
shall be applied: first, to the payment of accrued interest on this Equipment Note (as
well as any interest on (i) any overdue principal amount, and (ii) to the extent
permitted by law, any overdue Make-Whole Amount, if any, any overdue interest and any other overdue
amounts hereunder) to the date of such payment; second, to the payment of Make-Whole
Amount, if any, with respect to this Equipment

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Note; third, to the payment of the principal amount of this Equipment Note (or portion
thereof) then due hereunder, if any; and fourth, the balance, if any, remaining thereafter
to the payment of installments of the principal amount of this Equipment Note (or portion thereof)
remaining unpaid in the inverse order of their maturity.

     This Equipment Note is one of the Equipment Notes referred to in the Indenture which have been
or are to be issued by Company pursuant to the terms of the Indenture. The Collateral is held by
Loan Trustee as security, in part, for the Equipment Notes. The provisions of this Equipment Note
are subject to the Indenture, the Related Indentures, the Participation Agreement, the other
Operative Documents and the Pass Through Documents. Reference is hereby made to the Indenture, the
Related Indentures, the Participation Agreement, the other Operative Documents and the Pass Through
Documents for a complete statement of the rights and obligations of the holder of, and the nature
and extent of the security for, this Equipment Note (including as a “Related Equipment Note” under
each Related Indenture) and the rights and obligations of the holders of, and the nature and extent
of the security for, any other Equipment Notes executed and delivered under the Indenture, to all
of which terms and conditions in the Indenture, the Related Indentures, the Participation
Agreement, the other Operative Documents and the Pass Through Documents each holder hereof agrees
by its acceptance of this Equipment Note.

     As provided in the Indenture and subject to certain limitations therein set forth, this
Equipment Note is exchangeable for an equal aggregate principal amount of Equipment Notes of the
same Series of different authorized denominations, as requested by the holder surrendering the
same. Prior to the due presentment for registration of transfer of this Equipment Note, Company
and Loan Trustee shall deem and treat the Person in whose name this Equipment Note is registered on
the Equipment Note Register as the absolute owner and holder hereof for the purpose of receiving
all amounts payable with respect to this Equipment Note and for all purposes, and neither Company
nor Loan Trustee shall be affected by notice to the contrary.

     This Equipment Note is subject to redemption as provided in Sections 2.10, 2.11 and 2.12 of
the Indenture but not otherwise. In addition, this Equipment Note may be accelerated as provided
in Section 4.02 of the Indenture.

     This Equipment Note is subject to certain restrictions set forth in Sections 4.01(a)(ii) and
4.01(a)(iii) of the Intercreditor Agreement, as further specified in Section 2.07 of the Indenture,
to all of which terms and conditions in the Intercreditor Agreement each holder hereof agrees by
its acceptance of this Equipment Note.

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     The holder hereof, by its acceptance of this Equipment Note, agrees that no payment or
distribution shall be made on or in respect of the Secured Obligations (as defined in the
Indenture) or the Secured Obligations (as defined in any Related Indenture) owed to such holder,
including, without limitation, any payment or distribution of cash, property or securities after
the occurrence of any of the events referred to in Section 4.01(f) of the Indenture or after the
commencement of any proceedings of the type referred to in Sections 4.01 (g), (h) or (i) of the
Indenture, except, in each case, as expressly provided in Article III of the Indenture or Article
III of the applicable Related Indenture, as appropriate.

     The indebtedness evidenced by this Equipment Note is[,]6 [(i) to the extent
and in the manner provided in the Indenture, subordinate and subject in right of payment to the
prior payment in full of the Secured Obligations in respect of Series A Equipment Notes, and
certain other Secured Obligations, and (ii)]7 to the extent and in the manner
provided in each Related Indenture, subordinate and subject in right of payment to the prior
payment in full under such Related Indenture of the “Secured Obligations” in respect of the
“Equipment Notes” issued under such Related Indenture, and this Equipment Note is issued subject to
such provisions. The Noteholder of this Equipment Note, by accepting the same, (a) agrees
to and shall be bound by such provisions, (b) authorizes and directs Loan Trustee or the
Related Loan Trustee under the applicable Related Indenture, as appropriate, on such Noteholder’s
behalf to take any action necessary or appropriate to effectuate the subordination as provided in
the Indenture or the applicable Related Indenture and (c) appoints Loan Trustee or the
Related Loan Trustee under the applicable Related Indenture, as appropriate, as such Noteholder’s
attorney-in-fact for such purpose.

     Without limiting the foregoing, the holder hereof, by its acceptance of this Equipment Note,
agrees that if such holder, in its capacity as a Noteholder, receives any payment or distribution
on any Secured Obligation in respect of this Equipment Note that it is not entitled to receive
under Section 2.13 or Article III of the Indenture, it shall hold any amount so received in trust
for Loan Trustee and forthwith turn over such amount to Loan Trustee in the form received to be
applied as provided in Article III of the Indenture.

     Unless the certificate of authentication hereon has been executed by or on behalf of Loan
Trustee by manual signature, this Equipment Note shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

 

			
	6	 	To be inserted in the case of a Series A Equipment
Note.
	 
	7	 	To be inserted in the case of a Series B Equipment
Note.

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     THIS EQUIPMENT NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE
OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE.

     IN WITNESS WHEREOF, Company has caused this Equipment Note to be executed in its corporate
name by its officer thereunto duly authorized on the date hereof.

	 	 	 	 	 
	 	DELTA AIR LINES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

LOAN TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Equipment Notes referred to in the within-mentioned Indenture.

	 	 	 	 	 
	 	U.S. BANK TRUST NATIONAL ASSOCIATION,

not in its individual capacity but solely as Loan

Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

SCHEDULE I8

 

			
	8	 	To be inserted in installment Equipment Notes.

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EQUIPMENT NOTE AMORTIZATION

	 	 	 	 	 
	 	 	Percentage of Original	 
	 	 	Principal Amount	 
	Payment Date	 	to be Paid	 
	 
	 	 	 	 

[SEE “EQUIPMENT NOTES AMORTIZATION” ON SCHEDULE I TO

INDENTURE]

* * *

     Section 2.02 Issuance and Terms of Equipment Notes. The Equipment Notes shall be
dated the date of issuance thereof, shall be issued in (a) separate Series consisting of
Series A Equipment Notes and, if issued, Series B Equipment Notes and (b) the maturities
and principal amounts and shall bear interest at the applicable Debt Rates specified in Schedule I
(as, in the case of any Series B Equipment Notes issued after the Closing Date, such Schedule I may
be amended in connection with such issuance). On the Closing Date, each Series A Equipment Note
and, if issued, Series B Equipment Note shall be issued to Subordination Agent on behalf of each of
the Pass Through Trustees of the Pass Through Trusts then in existence for the applicable Pass
Through Trust created under the Pass Through Trust Agreements referred to in Schedule II. If no
Series B Equipment Notes are issued on the Closing Date, then, subject to compliance with the
conditions set forth in Section 4(a)(v) of the Note Purchase Agreement, Section 2.02 of the
Participation Agreement and Section 8.01(d) of the Intercreditor Agreement, Company shall have the
option to issue Series B Equipment Notes after the Closing Date. In addition, if all of the Series
B Equipment Notes (whether issued on or after the Closing Date) shall have been redeemed pursuant
to Section 2.11(b), and if, simultaneously with such redemption, new Series B Equipment Notes,
which may have terms different from those of the redeemed Series B Equipment Notes, are being
issued, Company shall, subject to compliance with the conditions set forth in Section 4(a)(v) of
the Note Purchase Agreement, Section 2.02 of the Participation Agreement and Section 8.01(c) of the
Intercreditor Agreement, issue new Series B Equipment Notes with the same Series B designation as,
but with the terms that may differ from those of, the redeemed Series B Equipment Notes. Any
Series B Equipment Notes issued after the Closing Date pursuant to any of the two immediately
preceding sentences shall have such maturities, principal amounts and interest rate as specified in
Schedule I hereto in respect of Series B Equipment Notes, as amended in connection with any such
issuance. The Equipment Notes shall be issued in registered form only. The Equipment Notes shall
be issued in denominations of $1,000 and integral multiples thereof, except that one Equipment Note
of each Series may be in an amount that is not an integral multiple of $1,000. Without limitation
of the foregoing, if any Series B Equipment Notes shall have been issued hereunder, new Series B
Equipment Notes may be issued pursuant to the provisions of Section 2.11(b).

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     Each Equipment Note shall bear interest at the Debt Rate specified for the applicable Series
(calculated on the basis of a year of 360 days comprised of twelve 30-day months), payable in
arrears on each Payment Date on the unpaid principal amount thereof from time to time outstanding
from the most recent Payment Date to which interest has been paid or duly provided for (or, if no
interest has been so paid or provided for, from the date of issuance of such Equipment Note) until
such principal amount is paid in full, as further provided in the form of Equipment Note set forth
in Section 2.01. The principal amount of each Series A Equipment Note and, if issued, Series B
Equipment Note shall be payable in installments or in a single payment on the Payment Dates set
forth in such Equipment Note, each such installment, if any, to be in an amount computed by
multiplying the original principal amount of such Equipment Note by the corresponding percentage
set forth in Schedule I hereto (as, in the case of any Series B Equipment Notes issued after the
Closing Date, such Schedule I may be amended in connection with such issuance) applicable to such
Series, the applicable portion of which shall be attached as Schedule I to such Equipment Note,
opposite the Payment Date on which such installment is due. Notwithstanding the foregoing, the
final payment made under each Equipment Note shall be in an amount sufficient to discharge in full
the unpaid principal amount and all accrued and unpaid interest on, and any other amounts due
under, such Equipment Note. Each Equipment Note shall bear interest, payable on demand, at the
Past Due Rate (and not at the Debt Rate) (calculated on the basis of a year of 360 days comprised
of twelve 30-day months) on any principal amount and (to the extent permitted by applicable law)
Make-Whole Amount, if any, interest and any other amounts payable thereunder not paid when due for
any period during which the same is overdue, in each case for the period the same is overdue.
Amounts shall be overdue under an Equipment Note if not paid in the manner provided herein when due
(whether at stated maturity, by acceleration or otherwise). Notwithstanding anything to the
contrary contained herein, if any date on which a payment hereunder or under any Equipment Note
becomes due and payable is not a Business Day, then such payment shall not be made on such
scheduled date but shall be made on the next succeeding Business Day with the same force and effect
as if made on such scheduled date, and if such payment is made on such next succeeding Business
Day, no interest shall accrue on the amount of such payment from and after such scheduled date.

     The Equipment Notes shall be executed on behalf of Company by the manual or facsimile
signature of one of its authorized officers. Equipment Notes bearing the signatures of individuals
who were at the time of execution the proper officers of Company shall bind Company,
notwithstanding that such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Equipment Notes or did not hold such offices at the respective
dates of such Equipment Notes. No Equipment Note shall be secured by or entitled to any benefit
under this Indenture or be valid or obligatory for any purposes unless there appears on such
Equipment Note a certificate of authentication in the form provided herein executed by Loan Trustee
by the

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manual signature of one of its authorized officers, and such certificate upon any Equipment
Notes shall be conclusive evidence, and the only evidence, that such Equipment Note has been duly
authenticated and delivered hereunder.

     Section 2.03 Method of Payment. The principal amount of, interest on, Make-Whole
Amount, if any, and, except to the extent expressly provided herein, all other amounts due under
each Equipment Note or otherwise payable hereunder shall be payable by Company in Dollars by wire
transfer of immediately available funds not later than 10:00 a.m. (New York City time) on the due
date of payment to Loan Trustee at the Corporate Trust Office for distribution among Noteholders in
the manner provided herein, and payment of such amount by Company to Loan Trustee shall be deemed
to satisfy Company’s obligation to make such payment. Company shall not have any responsibility
for the distribution of such payment to any Noteholder. Notwithstanding the foregoing or any
provision in any Equipment Note to the contrary, Loan Trustee will use reasonable efforts to pay or
cause to be paid, if so directed in writing by any Noteholder (with a copy to Company), all amounts
paid by Company hereunder and under such Noteholder’s Equipment Note or Equipment Notes to such
Noteholder or a nominee therefor (including all amounts distributed pursuant to Article III) by
transferring, or causing to be transferred, by wire transfer of immediately available funds in
Dollars, prior to 12:00 noon (New York City time) on the due date of payment, to an account
maintained by such Noteholder with a bank located in the continental United States the amount to be
distributed to such Noteholder, for credit to the account of such Noteholder maintained at such
bank; provided that, in the event the Equipment Notes are not held by Subordination Agent
on behalf of Pass Through Trustees, Loan Trustee shall, unless instructed by Company to use another
method, pay such amounts by check mailed to Noteholder’s address as it appears on the Equipment
Note Register. If, after its receipt of funds at the place and prior to the time specified above
in the immediately preceding sentence, Loan Trustee fails (other than as a result of a failure of
Noteholder to provide it with wire transfer instructions) to make any such payment required to be
paid by wire transfer as provided in the immediately preceding sentence on the Business Day it
receives such funds, Loan Trustee, in its individual capacity and not as trustee, agrees to
compensate such Noteholders for loss of use of funds at the Federal Funds Rate until such payment
is made and Loan Trustee shall be entitled to any interest earned on such funds until such payment
is made. Any payment made hereunder shall be made without any presentment or surrender of any
Equipment Note, except that, in the case of the final payment in respect of any Equipment Note,
such Equipment Note shall be surrendered to Loan Trustee for cancellation. Notwithstanding any
other provision of this Indenture to the contrary, Loan Trustee shall not be required to make, or
cause to be made, wire transfers as aforesaid prior to the first Business Day on which it is
practicable for Loan Trustee to do so in view of the time of day when the funds to be so
transferred were received by it if such funds were received after 1:00 p.m. (New York City time) at
the place of payment, in which case Loan Trustee shall make such required payment on the

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next succeeding Business Day. So long as any signatory to the Participation Agreement or
nominee thereof shall be a registered Noteholder, all payments to it shall be made to the account
of such Noteholder specified in Schedule I to the Participation Agreement and otherwise in the
manner provided in or pursuant to the Participation Agreement unless it shall have specified some
other account or manner of payment by notice to Loan Trustee consistent with this Section 2.03.

     Section 2.04 Withholding Taxes. Loan Trustee shall exclude and withhold at the
appropriate rate from each payment of principal amount of, interest on, Make-Whole Amount, if any,
and other amounts due hereunder or under each Equipment Note (which exclusion and withholding shall
constitute payment of such amounts payable hereunder or in respect of such Equipment Notes, as
applicable) any and all withholding taxes applicable thereto as required by law. Loan Trustee
agrees to act as such withholding agent and, in connection therewith, whenever any present or
future taxes or similar charges are required to be withheld with respect to any amounts payable
hereunder or in respect of the Equipment Notes, to withhold such amounts (which withholding shall
constitute payment of such amounts payable hereunder or in respect of such Equipment Notes, as
applicable) and timely pay the same to the appropriate authority in the name of and on behalf of
Noteholders, that it will file any necessary withholding tax returns or statements when due, and
that as promptly as possible after the payment thereof it will deliver to each Noteholder (with a
copy to Company) appropriate documentation showing the payment thereof, together with such
additional documentary evidence as any such Noteholder may reasonably request from time to time.
Loan Trustee agrees to file any other information reports it is required to file under United
States law.

     Section 2.05 Application of Payments. Subject always to Section 2.13 and except as
otherwise provided in Article III, in the case of each Equipment Note, each payment of an
installment of principal amount, Make-Whole Amount, if any, and interest paid thereon shall be
applied:

     first, to the payment of accrued interest on such Equipment Note (as well as
any interest on (i) any overdue principal amount, and (ii) to the extent
permitted by law, any overdue Make-Whole Amount, if any, any overdue interest and any other
overdue amounts thereunder) to the date of such payment;

     second, to the payment of Make-Whole Amount, if any, with respect to such
Equipment Note;

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     third, to the payment of the principal amount of such Equipment Note (or
portion thereof) then due thereunder, if any; and

     fourth, the balance, if any, remaining thereafter, to the payment of
installments of the principal amount of such Equipment Note (or portion thereof) remaining
unpaid in the inverse order of their maturity.

     Section 2.06 Termination of Interest in Collateral. No Noteholder or Indenture
Indemnitee shall, as such, have any further interest in, or other right with respect to, the
Collateral when and if the principal amount of, Make-Whole Amount, if any, and interest (including,
to the extent permitted by applicable law, post-petition interest and interest on any overdue
amounts) on and all other amounts due under all Equipment Notes held by such Noteholder and all
other sums then due and payable to such Noteholder or Indenture Indemnitee, as the case may be,
hereunder (including, without limitation, under Section 2.14) and under the Participation Agreement
by Company (the “Secured Obligations”) have been paid in full.

     Subject to Section 10.01 hereof, no Related Indenture Indemnitee shall, as such, have any
further interest in, or other right with respect to, the Collateral when and if all Related Secured
Obligations have been paid in full.

     Section 2.07 Registration, Transfer and Exchange of Equipment Notes. Loan Trustee
shall keep a register or registers (the “Equipment Note Register”) in which Loan Trustee
shall provide for the registration of Equipment Notes and the registration of transfers of
Equipment Notes. No such transfer shall be given effect unless and until registration hereunder
shall have occurred. The Equipment Note Register shall be kept at the Corporate Trust Office of
Loan Trustee. Loan Trustee is hereby appointed “Equipment Note Registrar” for the purpose of
registering Equipment Notes and transfers of Equipment Notes as herein provided. A holder of any
Equipment Note intending to exchange or transfer such Equipment Note shall surrender such Equipment
Note to Loan Trustee at the Corporate Trust Office, together with a written request from the
registered holder thereof for the issuance of a new Equipment Note of the same Series, specifying,
in the case of a surrender for transfer, the name and address of the new holder or holders. Upon
surrender for registration of transfer of any Equipment Note and subject to satisfaction of Section
2.09, Company shall execute, and Loan Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Equipment Notes of an equal aggregate
principal amount and of the same Series. At the option of Noteholder, Equipment Notes may be
exchanged for other Equipment Notes of the same Series of any authorized denominations of an equal
aggregate principal amount, upon surrender of the Equipment Notes to be exchanged to Loan Trustee
at the Corporate

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Trust Office. Whenever any Equipment Notes are so surrendered for exchange, Company shall
execute, and Loan Trustee shall authenticate and deliver, the Equipment Notes which Noteholder
making the exchange is entitled to receive. All Equipment Notes issued upon any registration of
transfer or exchange of Equipment Notes (whether under this Section 2.07 or under Section 2.08 or
otherwise under this Indenture) shall be the valid obligations of Company evidencing the same
respective obligations, and entitled to the same security and benefits under this Indenture, as the
Equipment Notes surrendered upon such registration of transfer or exchange. Every Equipment Note
presented or surrendered for registration of transfer shall (if so required by Company or Loan
Trustee) be duly endorsed or be accompanied by a written instrument of transfer in form
satisfactory to Loan Trustee, duly executed by Noteholder or such Noteholder’s attorney duly
authorized in writing, and Company and Loan Trustee shall require evidence satisfactory to it as to
the compliance of any such transfer with the Securities Act and the securities laws of any
applicable state or jurisdiction. Loan Trustee shall make a notation on each new Equipment Note of
the amount of all payments of principal amount previously made on the old Equipment Note or
Equipment Notes with respect to which such new Equipment Note is issued and the date to which
interest on such old Equipment Note or Equipment Notes has been paid. Principal, interest and all
other amounts shall be deemed to have been paid on such new Equipment Note to the date on which
such amounts have been paid on such old Equipment Note. Company shall not be required to exchange
any surrendered Equipment Notes as provided above (a) during the ten-day period preceding
the due date of any payment on such Equipment Note or (b) that has been called for
redemption. Company and Loan Trustee shall in all cases deem and treat the Person in whose name
any Equipment Note has been issued and registered on the Equipment Note Register as the absolute
owner and Noteholder of such Equipment Note for the purpose of receiving payment of all amounts
payable with respect to such Equipment Note and for all other purposes, and neither Company nor
Loan Trustee shall be affected by any notice to the contrary. Loan Trustee will promptly notify
Company of each registration of a transfer of an Equipment Note. Any such transferee of an
Equipment Note, by its acceptance of an Equipment Note, agrees to the provisions of the Indenture,
the Related Indentures, the Participation Agreement, the other Operative Documents and the Pass
Through Documents applicable to Noteholders or, in the case of each Related Indenture, Related
Noteholders, and, without limiting the generality of the foregoing, any such transferee of an
Equipment Note, by its acceptance of an Equipment Note: (i) agrees to the applicable
provisions of Sections 6.01, 7.10 and 7.11 of the Participation Agreement, and shall be deemed to
have represented, warranted and covenanted to the parties to the Participation Agreement as to the
matters represented, warranted and covenanted by Noteholders, including Pass Through Trustees, in
the Participation Agreement and (ii) agrees to the restrictions set forth in Sections
4.01(a)(ii) and 4.01(a)(iii) of the Intercreditor Agreement, and shall be deemed to have covenanted
to the parties to the Intercreditor Agreement not to give any direction to, or otherwise authorize,
Loan Trustee to take any action that would violate Sections 4.01(a)(ii) or 4.01(a)(iii) of the
Intercreditor Agreement. Subject to compliance by Noteholder and any

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transferee of the requirements set forth in this Section 2.07 and in Section 2.09, Loan
Trustee and Company shall use all reasonable efforts to issue new Equipment Notes upon transfer or
exchange within ten Business Days of the date an Equipment Note is surrendered for transfer or
exchange.

     Section 2.08 Mutilated, Destroyed, Lost or Stolen Equipment Notes. If any Equipment
Note becomes mutilated, destroyed, lost or stolen, Company shall, upon the written request of the
holder of such Equipment Note and subject to satisfaction of this Section 2.08 and of Section 2.09,
execute and Loan Trustee shall authenticate and deliver in replacement thereof a new Equipment Note
of the same Series, payable in the same principal amount, dated the same date and captioned as
issued in connection with the Aircraft. If the Equipment Note being replaced has become mutilated,
such Equipment Note shall be surrendered to Loan Trustee, and a photocopy thereof shall be
furnished to Company. If the Equipment Note being replaced has been destroyed, lost or stolen, the
holder of such Equipment Note shall furnish to Company and Loan Trustee such security or indemnity
as may be required by them to save Company and Loan Trustee harmless and evidence satisfactory to
Company and Loan Trustee of the destruction, loss or theft of such Equipment Note and of the
ownership thereof.

     Section 2.09 Payment of Expenses on Transfer; Cancellation.

     (a) No service charge shall be made to a Noteholder for any registration of transfer or
exchange of Equipment Notes, but Loan Trustee, as Equipment Note Registrar, may require payment of
a sum sufficient to cover any Tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Equipment Notes.

     (b) Loan Trustee shall cancel all Equipment Notes surrendered for replacement, redemption,
transfer, exchange, payment or cancellation, shall keep a copy of such canceled Equipment Notes,
and shall send the original canceled Equipment Notes marked “canceled” to Company.

     Section 2.10 Mandatory Redemption of Equipment Notes. Company shall redeem the
Equipment Notes in whole in connection with an Event of Loss in respect of the Airframe or the
Airframe and the Engines installed thereon (unless Company has performed the option set forth in
Section 7.05(a)(i) with respect thereto) on or before the Loss Payment Date at a redemption price
equal to 100% of the unpaid principal amount thereof, together with all accrued and unpaid interest
thereon to (but excluding) the date

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of redemption and all other Secured Obligations owed or then due and payable to Noteholders,
but without any Make-Whole Amount.

     Section 2.11 Voluntary Redemption of Equipment Notes.

     (a) Except as provided in Section 2.11(b), all (but not less than all) of the Equipment Notes
may be redeemed by Company at any time upon at least 30 days’ revocable prior written notice to
Loan Trustee and Noteholders, and such Equipment Notes shall be redeemed in whole at a redemption
price equal to 100% of the unpaid principal amount thereof, together with accrued and unpaid
interest thereon to (but excluding) the date of redemption and all other Secured Obligations owed
or then due and payable to Noteholders, plus Make-Whole Amount, if any; provided that no
redemption shall be permitted under this Section 2.11(a) unless, simultaneously with such
redemption, the Related Equipment Notes shall also be redeemed.

     (b) If issued, all of the Series B Equipment Notes may be redeemed by Company upon at least 30
days’ revocable prior written notice to Loan Trustee and Noteholders of the Series B Equipment
Notes, and the Series B Equipment Notes shall be redeemed in whole at a redemption price equal to
100% of the unpaid principal amount thereof, together with accrued and unpaid interest thereon to
(but excluding) the date of redemption and all other Secured Obligations owed or then due and
payable to Noteholders of the Series B Equipment Notes, plus Make-Whole Amount, if any;
provided that:

     (i) no redemption shall be permitted under this Section 2.11(b) unless, simultaneously
with such redemption, the Related Series B Equipment Notes shall also be redeemed; and

     (ii) if, simultaneously with such redemption, new Series B Equipment Notes, which may
have terms different from those of the redeemed Series B Equipment Notes, are being issued,
such new Series B Equipment Notes shall be issued in accordance with Section 2.02 of the
Participation Agreement, Section 4(a)(v) of the Note Purchase Agreement and Section 8.01(c)
of the Intercreditor Agreement.

     (c) Notwithstanding anything to the contrary in Section 2.11(a) or (b), so long as Company or
any of its Affiliates beneficially owns 100% of the Pass Through Certificates issued by any Pass
Through Trustee, the redemption price shall not include, and no Noteholder shall have any right to
otherwise claim, any Make-Whole Amount

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with respect to the Series of Equipment Notes issued to Subordination Agent for the benefit of
such Pass Through Trustee.

     Section 2.12 Redemptions; Notice of Redemptions; Repurchases.

     (a) No redemption of any Equipment Note may be made except to the extent and in the manner
expressly permitted by this Indenture. Company may at any time repurchase any of the Equipment
Notes not held by Subordination Agent at any price and may hold or resell such Equipment Notes or
surrender such Equipment Notes to Loan Trustee for cancellation.

     (b) Notice of redemption with respect to the Equipment Notes shall be given by Loan Trustee by
first-class mail, postage prepaid, mailed not less than 30 nor more than 60 days prior to the
applicable redemption date, to each Noteholder of such Equipment Notes to be redeemed, at such
Noteholder’s address appearing in the Equipment Note Register; provided that such notice
shall be revocable by written notice from Company to Loan Trustee given no later than three days
prior to the redemption date. All notices of redemption shall state: (1) the redemption
date, (2) the applicable basis for determining the redemption price, (3) that on
the redemption date, the redemption price will become due and payable upon each such Equipment
Note, and that, if any such Equipment Notes are then outstanding, interest on such Equipment Notes
shall cease to accrue on and after such redemption date and (4) the place or places where
such Equipment Notes are to be surrendered for payment of the redemption price.

     (c) On or before the redemption date, Company (or any person on behalf of Company) shall, to
the extent an amount equal to the redemption price for the Equipment Notes to be redeemed on the
redemption date shall not then be held by Loan Trustee, deposit or cause to be deposited with Loan
Trustee by 10:00 a.m. (New York City time) on the redemption date in immediately available funds
the redemption price of the Equipment Notes to be redeemed.

     (d) Notice of redemption having been given as aforesaid (and not revoked as permitted by this
Section 2.12), the Equipment Notes to be redeemed shall, on the redemption date, become due and
payable at the Corporate Trust Office of Loan Trustee, and from and after such redemption date
(unless there is a default in the payment of the redemption price) any such Equipment Notes then
outstanding shall cease to bear interest. Upon surrender of any such Equipment Note for redemption
in accordance with said notice, such Equipment Note shall be redeemed at the redemption price.

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     Section 2.13 Subordination.

     (a) The indebtedness evidenced by the Series B Equipment Notes, if issued, shall be, to the
extent and in the manner provided in this Indenture (as, in the case of any Series B Equipment
Notes issued after the Closing Date, may be amended in connection with the issuance of such Series
B Equipment Notes), subordinate and subject in right of payment to the prior payment in full of the
Secured Obligations in respect of the Series A Equipment Notes, and the Series B Equipment Notes,
if issued, shall be issued subject to such provisions. The indebtedness evidenced by the Series A
Equipment Notes is, and indebtedness evidenced by the Series B Equipment Notes, if issued, shall
be, to the extent and in the manner provided in each Related Indenture, subordinate and subject in
right of payment to the prior payment in full under such Related Indenture of the “Secured
Obligations” in respect of the “Equipment Notes” issued under such Related Indenture, and the
Series A Equipment Notes are, and the Series B Equipment Notes shall be, issued subject to such
provisions. By acceptance of its Equipment Notes of any Series, each Noteholder of such Series
(i) agrees to and shall be bound by such provisions, (ii) authorizes and directs
Loan Trustee or the Related Loan Trustee under the applicable Related Indenture, as appropriate, on
such Noteholder’s behalf to take any action necessary or appropriate to effectuate the
subordination as provided in this Indenture and the applicable Related Indenture and (iii)
appoints Loan Trustee or the Related Loan Trustee under the applicable Related Indenture, as
appropriate, as such Noteholder’s attorney-in-fact for such purpose.

     (b) Company, Loan Trustee and, by acceptance of its Equipment Notes of any Series, each
Noteholder of such Series, hereby agree that no payment or distribution shall be made on or in
respect of the Secured Obligations, or the “Secured Obligations” under any Related Indenture, owed
to such Noteholder of such Series, including any payment or distribution of cash, property or
securities after the occurrence of any of the events referred to in Section 4.01(f) or after the
commencement of any proceedings of the type referred to in Sections 4.01(g), (h) or (i), except, in
each case, as expressly provided in Article III of this Indenture or Article III of the applicable
Related Indenture, as appropriate.

     (c) By the acceptance of its Equipment Notes of any Series, each Noteholder of such Series
agrees that (i) if such Noteholder, in its capacity as a Noteholder, receives any payment
or distribution on any Secured Obligations in respect of such Series that it is not entitled to
receive under this Section 2.13 or Article III, it will hold any amount so received in trust for
Loan Trustee and forthwith turn over such amount to Loan Trustee in the form received to be applied
as provided in Article III and (ii) if such Noteholder, in its capacity as a “Noteholder”
under any Related Indenture, receives any payment or distribution on any “Secured Obligations” in
respect of “Equipment Notes” of any

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“Series” issued under such Related Indenture that it is not entitled to receive under Section
2.13 or Article III of such Related Indenture, it will hold any amount so received in trust for the
Related Loan Trustee under such Related Indenture and forthwith turn over such amount to such
Related Loan Trustee under such Related Indenture in the form received to be applied as provided in
Article III of such Related Indenture.

     Section 2.14 Certain Payments.9 Company agrees to pay to Loan Trustee for
distribution in accordance with Section 3.04:

     (a) an amount or amounts equal to the fees payable to Class A Liquidity Provider under
Section 2.03 of the Class A Liquidity Facility and the Fee Letter (as defined in the
Intercreditor Agreement) related thereto (or similar provisions of any Replacement
Liquidity Facility therefor and any related fee letter), multiplied by a fraction, the
numerator of which is the then outstanding aggregate principal amount of the Series A
Equipment Notes and the denominator of which is the then outstanding aggregate principal
amount of all “Series A Equipment Notes” (as defined in the Note Purchase Agreement) with
respect to all of the “Indentures” (as defined in the Note Purchase Agreement);

     (b) an amount equal to interest on any Special Termination Advance (other than any
Applied Special Termination Advance) payable under Section 3.07 of the Class A Liquidity
Facility (or similar provisions of any Replacement Liquidity Facility therefor) minus
Investment Earnings from such Special Termination Advance multiplied by the fraction
specified in the foregoing clause (a);

     (c) an amount equal to interest on any Downgrade Advance (other than any Applied
Downgrade Advance) payable under Section 3.07 of the Class A Liquidity Facility (or similar
provisions of any Replacement Liquidity Facility therefor) minus Investment Earnings from
such Downgrade Advance multiplied by the fraction specified in the foregoing clause (a);

     (d) an amount equal to interest on any Non-Extension Advance (other than any Applied
Non-Extension Advance) payable under Section 3.07 of the Class A Liquidity Facility (or
similar provisions of any Replacement Liquidity Facility therefor) minus Investment
Earnings from such Non-Extension Advance multiplied by the fraction specified in the
foregoing clause (a);

 

			
	9	 	To be revised to reflect the Class B Liquidity
Facility, if any.

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     (e) if any payment default shall have occurred and be continuing with respect to
interest on any “Series A Equipment Notes” (as defined in the Note Purchase Agreement),
(x) the excess, if any, of (1) the amount equal to the sum of interest on
any Unpaid Advance (other than a Special Termination Advance), Applied Provider Advance or
Applied Special Termination Advance payable under Section 3.07 of the Class A Liquidity
Facility (or similar provisions of any Replacement Liquidity Facility therefor) plus any
other amounts payable in respect of such Unpaid Advance, Applied Provider Advance or
Applied Special Termination Advance under Section 3.01, 3.03 or 3.09 of the Class A
Liquidity Facility (or similar provisions of any Replacement Liquidity Facility therefor)
over (2) the sum of (A) Investment Earnings from any Final Advance plus
(B) any amount of interest at the Past Due Rate actually payable (whether or not in
fact paid) by Company in respect of the overdue scheduled interest on the “Series A
Equipment Notes” (as defined in the Note Purchase Agreement), multiplied by (y) a
fraction, the numerator of which is the then aggregate overdue amounts of interest on the
then outstanding Series A Equipment Notes (other than interest becoming due and payable
solely as a result of acceleration of any such Equipment Notes) and the denominator of
which is the then aggregate overdue amounts of interest on all “Series A Equipment Notes”
(as defined in the Note Purchase Agreement) with respect to all of the “Indentures” (as
defined in the Note Purchase Agreement) (other than interest becoming due and payable
solely as a result of acceleration of any such “Equipment Notes”);

     (f) any amounts owed to Class A Liquidity Provider by Subordination Agent as borrower
under Sections 3.01 (other than in respect of an Unpaid Advance, Applied Provider Advance
or Applied Special Termination Advance), 3.03 (other than in respect of an Unpaid Advance,
Applied Provider Advance or Applied Special Termination Advance), 7.05 and 7.07 of the
Class A Liquidity Facility (or similar provisions of any Replacement Liquidity Facility
therefor) multiplied by the fraction specified in the foregoing clause (a); and

     (g) an amount or amounts equal to the compensation, including reasonable expenses and
disbursements actually incurred, payable to Subordination Agent under Section 6.07 of the
Intercreditor Agreement, multiplied by the fraction specified in the foregoing clause (a)
(but in any event without duplication of any amount or amounts payable by Company in
respect of such compensation under any other Operative Document or Pass Through Document).

     For purposes of this paragraph, the terms “Applied Downgrade Advance”, “Applied Non-Extension
Advance”, “Applied Provider Advance”, “Applied Special

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Termination Advance”, “Downgrade Advance”, “Final Advance”, “Investment Earnings”,
“Non-Extension Advance”, “Special Termination Advance” and “Unpaid Advance” have the meanings
specified in the Class A Liquidity Facility or the Intercreditor Agreement, as applicable.

     Section 2.15 Repayment of Monies for Equipment Note Payments Held by Loan Trustee.
Any money held by Loan Trustee in trust for any payment of the principal of, Make-Whole Amount, if
any, or interest or any other amounts due on, any Equipment Note, including, without limitation,
any money deposited pursuant to Section 2.12(c) or 10.01, and remaining unclaimed for a 730-day
period (for purposes of calculating this 730-day period, all days on which the payment of such
money shall not have been made because of operation of law shall be excluded) after the due date
for such payment (or such lesser time as Loan Trustee is satisfied, after 60 days’ notice from
Company, is one month prior to the escheat period provided under applicable state law) shall be
paid to Company. Noteholders of any outstanding Equipment Notes shall thereafter, as unsecured
general creditors, look only to Company for payment thereof, and all liability of Loan Trustee with
respect to such trust money shall thereupon cease. Loan Trustee, before being required to make any
such repayment, may at the expense of Company cause to be mailed to each such Noteholder notice
that such money remains unclaimed. After a date specified in such notice, which may not be less
than 30 days from the date of mailing, any unclaimed balance of such money then remaining will be
repaid to Company as provided herein.

     Section 2.16 Directions by Subordination Agent. So long as Subordination Agent is a
Noteholder, notwithstanding anything contained herein or in any other Operative Document to the
contrary, in exercising its right to vote the Equipment Notes held by it, or in giving or taking
any direction, consent, request, demand, instruction, authorization, notice, waiver or other action
provided by this Indenture or in respect of the Equipment Notes to be given or taken by a
Noteholder (each such vote or other action, a “Direction”) in respect of such Equipment
Notes, Subordination Agent may act in accordance with any votes, directions, consents, requests,
demands, instructions, authorizations, notices, waivers or other actions given or taken by any
applicable Pass Through Trustee or the Controlling Party pursuant to the Intercreditor Agreement,
including without limitation pursuant to Section 2.06, Article IV or Section 8.01(b) thereof.
Subordination Agent shall be permitted (x) to give a Direction with respect to less than
the entire principal amount of any single Equipment Note held by it, and (y) to give
different Directions with respect to different portions of the principal amount of any single
Equipment Note held by it. Any Direction given by Subordination Agent at any time with respect to
more than a majority in aggregate unpaid principal amount of all of the Equipment Notes issued and
then outstanding hereunder shall be deemed to have been given by a Majority in Interest of
Noteholders.

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ARTICLE III

Receipt, Distribution and Application of Income

From the Collateral

     Section 3.01 Basic Distributions. Except as otherwise provided in Sections 3.02, 3.03
and 3.04, each periodic payment by Company of regularly scheduled installments of principal or
interest on the Equipment Notes received by Loan Trustee shall be promptly distributed in the
following order of priority:

     first, so much of such payment as is required to pay in full the aggregate
amount of the payment or payments of principal amount and interest (as well as any interest
on any overdue principal amount and, to the extent permitted by applicable law, on any
overdue interest and any other overdue amounts) then due under all Series A Equipment Notes
shall be distributed to Noteholders of Series A Equipment Notes ratably, without priority
of one over the other, in the proportion that the amount of such payment or payments then
due under each Series A Equipment Note bears to the aggregate amount of the payments then
due under all Series A Equipment Notes;

     second, after giving effect to clause “first” above (if any Series B Equipment
Notes shall have been issued hereunder and except as this clause “second” may be modified
pursuant to paragraph (xv) of Section 9.01 in connection with the original issuance or
subsequent redemption and issuance from time to time of such Series B Equipment Notes), so
much of such payment remaining as is required to pay in full the aggregate amount of the
payment or payments of principal amount and interest (as well as any interest on any
overdue principal amount and, to the extent permitted by applicable law, on any overdue
interest and any other overdue amounts) then due under all Series B Equipment Notes shall
be distributed to Noteholders of Series B Equipment Notes ratably, without priority of one
over the other, in the proportion that the amount of such payment or payments then due
under each Series B Equipment Note bears to the aggregate amount of the payments then due
under all Series B Equipment Notes; and

     third, the balance, if any, of such installment remaining thereafter shall be
distributed to Company.

     Section 3.02 Event of Loss; Optional Redemption.

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          Except as otherwise provided in Sections 3.03 and 3.04 and subject to the following provisos,
any payments received by Loan Trustee (i) with respect to the Airframe or the Airframe and
one or more Engines as the result of an Event of Loss pursuant to Section 2.10 or (ii)
pursuant to an optional redemption of the Equipment Notes pursuant to Section 2.11 shall be applied
to redemption of the Equipment Notes and to all other Secured Obligations and Related Secured
Obligations then due by applying such payments in the following order of priority:

     first, so much of such payment as is required (i) to reimburse Loan
Trustee and Noteholders for any reasonable costs or expenses actually incurred in
connection with such redemption for which they are entitled to reimbursement, or indemnity
by Company, under the Operative Documents and then (ii) to pay any other Secured
Obligations then due to Loan Trustee, Noteholders and other Indenture Indemnitees under
this Indenture, the Participation Agreement or the Equipment Notes (other than amounts
specified in clauses “second” and “third” below);

     second, after giving effect to clause “first” above:

     (i) so much of such payment remaining as is required to pay the amounts
specified in paragraph (i) of clause “third” of Section 3.03 plus Make-Whole
Amount, if any, then due and payable in respect of the Series A Equipment Notes;
and

     (ii) after giving effect to paragraph (i) above (if any Series B Equipment
Notes shall have been issued hereunder and except as this paragraph (ii) may be
modified pursuant to paragraph (xv) of Section 9.01 in connection with the original
issuance or subsequent redemption and issuance from time to time of such Series B
Equipment Notes), so much of such payment remaining as is required to pay the
amounts specified in paragraph (ii) of clause “third” of Section 3.03 plus
Make-Whole Amount, if any, then due and payable in respect of the Series B
Equipment Notes;

     third, after giving effect to clause “second” above, so much of such payment
remaining as is required to pay the amounts as provided in clause “third” of Section 3.03
in respect of Related Secured Obligations under each Defaulted Operative Indenture other
than paragraph (vii) of clause “third” of Section 3.03; and

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     fourth, the balance, if any, of such payment, shall be distributed as provided
in clause “fourth” of Section 3.03;

provided that any insurance, condemnation or similar proceeds resulting from an Event of
Loss that are received by Loan Trustee shall be held and distributed by Loan Trustee as provided in
Sections 7.05(c) and 7.06(d), and any such proceeds that are held by Loan Trustee shall be invested
as provided in Section 5.06; and provided, further, that in the case of a
redemption of the Series B Equipment Notes pursuant to Section 2.11(b), no application of funds
shall be made pursuant to the paragraphs in clause “second” above that refer to the Series A
Equipment Notes in connection with such redemption. No Make-Whole Amount shall be due and payable
on the Equipment Notes as a consequence of the redemption of the Equipment Notes as a result of an
Event of Loss with respect to the Airframe or the Airframe and one or more Engines.

     Section 3.03 Payments After Event of Default.

          Except as otherwise provided in Section 3.04, all payments received and amounts held or
realized by Loan Trustee (including any amounts realized by Loan Trustee from the exercise of any
remedies pursuant to Article IV) after both an Event of Default shall have occurred and be
continuing and the Equipment Notes shall have become due and payable pursuant to Section 4.02(a),
as well as all payments or amounts then held by Loan Trustee as part of the Collateral, shall be
promptly distributed by Loan Trustee in the following order of priority:

     first, so much of such payments or amounts as is required to (i)
reimburse Loan Trustee or U.S. Bank, to the extent Loan Trustee or U.S. Bank is entitled to
be reimbursed or indemnified under the Operative Documents, for any Tax, expense or other
loss (including, without limitation, all amounts to be expended at the expense of, or
charged upon the tolls, rents, revenues, issues, products and profits of, the property
included in the Collateral pursuant to Section 4.02(a)) actually incurred by Loan Trustee
or U.S. Bank (to the extent not previously reimbursed), the expenses of any sale, taking or
other proceeding, reasonable attorneys’ fees and expenses, court costs, and any other
expenditures actually incurred or expenditures or advances made by Loan Trustee, U.S. Bank
or Noteholders in the protection, exercise or enforcement of any right, power or remedy or
any damages sustained by Loan Trustee, U.S. Bank or any Noteholder, liquidated or
otherwise, upon such Event of Default shall be applied by Loan Trustee as between itself,
U.S. Bank and Noteholders in reimbursement of such expenses and any other expenses for
which Loan Trustee, U.S. Bank or Noteholders are entitled to reimbursement under any
Operative Document and (ii) pay all Secured Obligations payable to other Indenture
Indemnitees hereunder and under the Participation Agreement or the Equipment Notes (other
than

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amounts specified in clauses “second” and “third” below); and in case the aggregate amount so
to be distributed shall be insufficient to pay as aforesaid in clauses (i) and (ii), then
ratably, without priority of one over the other, in proportion to the amounts owed each
hereunder;

     second, after giving effect to clause “first” above, so much of such payments
or amounts remaining as is required to reimburse the then existing or prior Noteholders for
payments made pursuant to Section 5.03 (to the extent not previously reimbursed) shall be
distributed to such then existing or prior Noteholders ratably, without priority of one
over the other, in accordance with the amount of the payment or payments made by each such
then existing or prior Noteholder pursuant to Section 5.03;

     third, after giving effect to clause “second” above:

     (i) so much of such payments or amounts remaining as is required to pay in
full the aggregate unpaid principal amount of all Series A Equipment Notes, and the
accrued but unpaid interest and other amounts due thereon and all other Secured
Obligations in respect of the Series A Equipment Notes to the date of distribution,
shall be distributed to Noteholders of Series A Equipment Notes, and in case the
aggregate amount so to be distributed shall be insufficient to pay in full as
aforesaid, then ratably, without priority of one over the other, in the proportion
that (x) the aggregate unpaid principal amount of all Series A Equipment
Notes held by each holder thereof plus the accrued but unpaid interest and other
amounts due in respect thereof hereunder or thereunder to the date of distribution
bears to (y) the aggregate unpaid principal amount of all Series A
Equipment Notes held by all holders thereof plus the accrued but unpaid interest
and other amounts due thereon to the date of distribution;

     (ii) after giving effect to paragraph (i) above (if any Series B Equipment
Notes shall have been issued hereunder and except as this paragraph (ii) may be
modified pursuant to paragraph (xv) of Section 9.01 in connection with the original
issuance or subsequent redemption and issuance from time to time of such Series B
Equipment Notes), so much of such payments or amounts remaining as is required to
pay in full the aggregate unpaid principal amount of all Series B Equipment Notes,
and the accrued but unpaid interest and other amounts due thereon and all other
Secured Obligations in respect of the Series B Equipment Notes to the date of
distribution, shall be distributed to Noteholders of Series B

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Equipment Notes, and in case the aggregate amount so to be distributed shall
be insufficient to pay in full as aforesaid, then ratably, without priority of one
over the other, in the proportion that (x) the aggregate unpaid principal
amount of all Series B Equipment Notes held by each holder thereof plus the accrued
but unpaid interest and other amounts due in respect thereof hereunder or
thereunder to the date of distribution bears to (y) the aggregate unpaid
principal amount of all Series B Equipment Notes held by all holders thereof plus
the accrued but unpaid interest and other amounts due thereon to the date of
distribution;

     (iii) after giving effect to paragraph (ii) above, so much of such payments or
amounts remaining as is required to pay in full the amounts then due and covered by
clause “first” of Section 3.03 of each Defaulted Operative Indenture shall be
distributed to the Related Loan Trustee under each respective Defaulted Operative
Indenture, and in case the aggregate amount so to be distributed shall be
insufficient to pay in full as aforesaid, then ratably, without priority of one
over the other, in accordance with the priorities and prorations in such clause
“first”;

     (iv) after giving effect to paragraph (iii) above, so much of such payments or
amounts remaining as is required to pay in full the amounts then due and covered by
clause “second” of Section 3.03 of each Defaulted Operative Indenture shall be
distributed to the Related Loan Trustee under each respective Defaulted Operative
Indenture, and in case the aggregate amount so to be distributed shall be
insufficient to pay in full as aforesaid, then ratably, without priority of one
over the other, in accordance with the priorities and prorations in such clause
“second”;

     (v) after giving effect to paragraph (iv) above, so much of such payments or
amounts remaining as is required to pay in full the aggregate amount of the payment
or payments of principal amount and interest (as well as any interest on any
overdue principal amount and, to the extent permitted by applicable law, on any
overdue interest and any other overdue amounts) then due under all Related Series A
Equipment Notes, if any, issued under any Defaulted Operative Indenture shall be
distributed to the Related Loan Trustee under each respective Defaulted Operative
Indenture under which any Related Series A Equipment Notes are outstanding, and in
case the aggregate amount so to be distributed shall be insufficient to pay in full
as aforesaid, then ratably, without priority of one over the other, in the
proportion that (x) the amount of such payment or payments then due under
all Related Series A Equipment Notes issued

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under each Defaulted Operative Indenture bears to (y) the aggregate
amount of the payments then due under all Related Series A Equipment Notes issued
under all Defaulted Operative Indentures;

     (vi) after giving effect to paragraph (v) above (if any Related Series B
Equipment Notes shall have been issued under any Related Indenture and except as
this paragraph (vi) may be modified pursuant to paragraph (xv) of Section 9.01 in
connection with the original issuance or subsequent redemption and issuance from
time to time of such Series B Equipment Notes), so much of such payments or amounts
remaining as is required to pay in full the aggregate amount of the payment or
payments of principal amount and interest (as well as any interest on any overdue
principal amount and, to the extent permitted by applicable law, on any overdue
interest and any other overdue amounts) then due under all Related Series B
Equipment Notes, if any, issued under any Defaulted Operative Indenture shall be
distributed to the Related Loan Trustee under each respective Defaulted Operative
Indenture under which any Related Series B Equipment Notes are outstanding, and in
case the aggregate amount so to be distributed shall be insufficient to pay in full
as aforesaid, then ratably, without priority of one over the other, in the
proportion that (x) the amount of such payment or payments then due under
all Related Series B Equipment Notes issued under each Defaulted Operative
Indenture bears to (y) the aggregate amount of the payments then due under
all Related Series B Equipment Notes issued under all Defaulted Operative
Indentures;

     (vii) after giving effect to paragraph (vi) above, if any Related Equipment
Note is outstanding, any of such payments or amounts remaining and any invested
Permitted Investments shall be held by Loan Trustee in an Eligible Account in
accordance with the provisions of Section 3.07 (and invested as provided in Section
5.06) as additional security for the Related Secured Obligations, and such amounts
(and any investment earnings thereon) shall be distributed from time to time in
accordance with the foregoing provisions of this clause “third” as and to the
extent any such Related Secured Obligation shall at any time and from time to time
become due and remain unpaid after the giving of any required notice and the
expiration of any applicable grace period; and, upon the payment in full of all
such Related Secured Obligations the balance, if any, of any such remaining amounts
and investment earnings thereon shall be applied as provided in clause “fourth” of
this Section 3.03; and

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     fourth, the balance, if any, of such payments or amounts remaining thereafter
shall be distributed to Company.

     No Make-Whole Amount shall be payable on the Equipment Notes as a consequence of or in
connection with an Event of Default or the acceleration of the Equipment Notes.

     Section 3.04 Certain Payments.

     (a) Any payments received by Loan Trustee for which provision as to the application thereof is
made in this Indenture other than in this Article III shall be applied as provided in those
provisions. Without limiting the foregoing, any payments received by Loan Trustee which are
payable to Company pursuant to any of the provisions of this Indenture other than those set forth
in this Article III (including Sections 5.06, 7.05 and 7.06) shall be so paid to Company. Any
payments received by Loan Trustee for which no provision as to the application thereof is made in
this Indenture and for which such provision is made in any other Operative Document shall be
applied forthwith to the purpose for which such payment was made in accordance with the terms of
such other Operative Document.

     (b) Notwithstanding anything to the contrary contained in this Article III, Loan Trustee will
distribute promptly upon receipt any indemnity payment received by it from Company pursuant to
Section 4.02 of the Participation Agreement payable to (i) U.S. Bank and Loan Trustee,
(ii) Subordination Agent, (iii) any separate or additional trustee appointed
pursuant to Section 8.02, (iv) Pass Through Trustees, and (v) any Liquidity
Provider, in each case, directly to the Person entitled thereto. Any payment received by Loan
Trustee from Company under Section 2.14 shall be distributed to Subordination Agent to be
distributed in accordance with Section 2.04(c) of the Intercreditor Agreement.

     (c) Any payments received by Loan Trustee not constituting part of the Collateral or otherwise
for which no provision as to the application thereof is made in any Operative Document shall be
distributed by Loan Trustee to Company. Further, and except as otherwise provided in Sections 3.02
and 3.03, all payments received and amounts realized by Loan Trustee with respect to the Aircraft,
to the extent received or realized at any time after payment in full of all Secured Obligations, as
well as any amounts remaining as part of the Collateral after the occurrence of such payment in
full, shall be distributed by Loan Trustee to Company.

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     Section 3.05 Payments to Company. Any amounts distributed hereunder by Loan Trustee
to Company shall be paid to Company (within the time limits contemplated by Section 2.03) by wire
transfer of funds of the type received by Loan Trustee at such office and to such account or
accounts of such entity or entities as shall be designated by notice from Company to Loan Trustee
from time to time.

     Section 3.06 Cooperation. Prior to making any distribution under this Article III,
Loan Trustee shall consult with Related Loan Trustees to determine amounts payable with respect to
the Related Secured Obligations. Loan Trustee shall cooperate with Related Loan Trustees and shall
provide such information as shall be reasonably requested by each Related Loan Trustee to enable
such Related Loan Trustee to determine amounts distributable under Article III of its Related
Indenture.

     Section 3.07 Securities Account. In furtherance of the provisions of Section 3.03,
U.S. Bank agrees to act as an Eligible Institution under the Indenture in accordance with the
provisions of this Indenture (in such capacity, the “Securities Intermediary”). Except in
its capacity as Loan Trustee, U.S. Bank waives any claim or lien against any Eligible Account it
may have, by operation of law or otherwise, for any amount owed to it by Company. The Securities
Intermediary hereby agrees that, notwithstanding anything to the contrary in this Indenture,
(i) any amounts to be held by Loan Trustee pursuant to paragraph (vii) of clause “third” of
Section 3.03 and any investment earnings thereon or other Permitted Investments in which such
amounts are invested will be credited to an Eligible Account (the “Securities Account”) for
which it is a “securities intermediary” (as defined in Section 8-102(a)(14) of the NY UCC) and Loan
Trustee is the “entitlement holder” (as defined in Section 8-102(a)(7) of the NY UCC) of the
“security entitlement” (as defined in Section 8-102(a)(17) of the NY UCC) with respect to each
“financial asset” (as defined in Section 8-102(a)(9) of the NY UCC) credited to such Eligible
Account, (ii) all such amounts, Permitted Investments and all other property acquired with
cash credited to the Securities Account will be credited to the Securities Account, (iii)
all items of property (whether cash, investment property, Permitted Investments, other investments,
securities, instruments or other property) credited to the Securities Account will be treated as a
“financial asset” under Article 8 of the NY UCC, (iv) its “securities intermediary’s
jurisdiction” (as defined in Section 8-110(e) of the NY UCC) with respect to the Securities Account
is the State of New York, and (v) all securities, instruments and other property in order
or registered form and credited to the Securities Account shall be payable to or to the order of,
or registered in the name of, the Securities Intermediary or shall be indorsed to the Securities
Intermediary or in blank, and in no case whatsoever shall any financial asset credited to the
Securities Account be registered in the name of Company, payable to or to the order of Company or
specially indorsed to Company except to the extent the foregoing have been specially endorsed by
Company to the Securities Intermediary or in blank. Loan Trustee agrees that it will hold (and
will indicate clearly in its books and records that it holds) its “security entitlements”

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to the “financial assets” credited to the Securities Account in trust for the benefit of
Noteholders, each Indenture Indemnitee and each Related Indenture Indemnitee as set forth in this
Indenture. Company acknowledges that, by reason of Loan Trustee being the “entitlement holder” in
respect of the Securities Account as provided above, Loan Trustee shall have the sole right and
discretion, subject only to the terms of this Indenture, to give all “entitlement orders” (as
defined in Section 8-102(a)(8) of the NY UCC) with respect to the Securities Account and any and
all financial assets and other property credited thereto to the exclusion of Company. If any
Person asserts any Lien (including, without limitation, any writ, garnishment, judgment, warrant of
attachment, execution or similar process) against the Securities Account or any financial asset
carried therein, U.S. Bank will promptly notify Loan Trustee and Company thereof.

ARTICLE IV

Events of Default; Remedies of Loan Trustee

     Section 4.01 Events of Default. Each of the following events constitutes an “Event of
Default” whether such event is voluntary or involuntary or comes about or is effected by operation
of law or pursuant to or in compliance with any judgment, decree or order of any court or any
order, rule or regulation of any administrative or governmental body and each such Event of Default
is deemed to exist and continue so long as, but only as long as, it has not been remedied or
explicitly waived:

     (a) Company fails to make any payment of principal amount of, Make-Whole Amount, if
any, or interest on, any Equipment Note within 15 days after such payment is due;

     (b) Company fails to make payment when the same is due of any amount (other than
amounts referred to in Section 4.01(a)) due hereunder, under any Equipment Note or under
any other Operative Document, and such failure continues unremedied for 30 days after the
receipt by Company of written notice thereof from Loan Trustee or any Noteholder;

     (c) Company fails to carry and maintain (or cause to be maintained) insurance or
indemnity on or with respect to the Aircraft in accordance with the provisions of Section
7.06; provided that no such failure to carry and maintain insurance shall
constitute an Event of Default until the earlier of (i) the date such failure has
continued unremedied for a period of 30 days after receipt by Loan

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Trustee of the notice of cancellation referred to in Section 7.06 or (ii) the
date such insurance is not in effect as to Loan Trustee;

     (d) Company fails to perform or observe any other covenant, condition or agreement to
be performed or observed by it under any Operative Document, and such failure continues
unremedied for a period of 60 days after receipt by Company of written notice thereof from
Loan Trustee or any Noteholder; provided that, if such failure is capable of being
remedied, no such failure shall constitute an Event of Default for a period of one year
after such notice is received by Company so long as Company is diligently proceeding to
remedy such failure;

     (e) any representation or warranty made by Company in any Operative Document was
incorrect in any material respect at the time made, and such incorrectness continues to be
material to the transactions contemplated hereby and continues unremedied for a period of
60 days after receipt by Company of written notice thereof from Loan Trustee;
provided that, if such incorrectness is capable of being remedied, no such
incorrectness shall constitute an Event of Default for a period of one year after such
notice is received by Company so long as Company is diligently proceeding to remedy such
incorrectness;

     (f) Company consents to the appointment of or the taking of possession by a receiver,
trustee or liquidator in respect of a substantial part of its property, admits in writing
its inability to pay its debts generally as they come due or makes a general assignment for
the benefit of its creditors;

     (g) Company files a voluntary petition in bankruptcy or a voluntary petition or an
answer seeking reorganization, liquidation or other relief as a debtor in a case under any
bankruptcy laws or insolvency laws (as in effect at such time) or an answer admitting the
material allegations of a petition filed against Company as a debtor in any such case, or
Company as a debtor seeks relief by voluntary petition, answer or consent under the
provisions of any other bankruptcy or other similar law providing for the reorganization or
winding-up of corporations (as in effect at such time), or Company seeks an agreement,
composition, extension or adjustment with its creditors under such laws;

     (h) an order, judgment or decree is entered by any court of competent jurisdiction
appointing, without the consent of Company, a receiver, trustee or liquidator of Company or
sequestering any substantial part of its property, or

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granting any other relief in respect of Company as a debtor under any bankruptcy laws
or insolvency laws (as in effect at such time), and any such order, judgment or decree of
appointment or sequestration remains in force undismissed, unstayed or unvacated for a
period of 90 days after the date of entry thereof;

     (i) a petition against Company as a debtor in a case under the federal bankruptcy laws
or other insolvency laws (as in effect at such time) is filed and not withdrawn or
dismissed within 90 days thereafter, or if, under the provisions of any law providing for
reorganization or winding-up of corporations that may apply to Company, any court of
competent jurisdiction assumes jurisdiction, custody or control of Company or of any
substantial part of its property and such jurisdiction, custody or control remains in force
unrelinquished, unstayed or unterminated for a period of 90 days; or

     (j) an “Event of Default” (as defined in any Related Indenture) shall have occurred
and be continuing;

provided that notwithstanding anything to the contrary contained in this Section 4.01, any
failure of Company to perform or observe any covenant, condition or agreement shall not constitute
an Event of Default if such failure arises by reason of an event referred to in the definition of
“Event of Loss” so long as Company is continuing to comply with all of the terms of Section
7.05.

     Section 4.02 Remedies.

     (a) If an Event of Default has occurred and is continuing and so long as the same shall
continue unremedied, then and in every such case Loan Trustee may, and upon the written
instructions of a Majority in Interest of Noteholders, Loan Trustee shall, do one or more of the
following to the extent permitted by, and subject to compliance with the requirements of,
applicable law then in effect (provided that during any period the Airframe or any Engine
is subject to the CRAF Program and is in possession of or being operated under the direction of the
United States government or an agency or instrumentality of the United States, Loan Trustee shall
not, on account of any Event of Default, be entitled to exercise or pursue any of the powers,
rights or remedies described in this Section 4.02 in such manner as to limit Company’s control
under this Indenture (or any Permitted Lessee’s control under any Lease) of the Airframe or such
Engine, unless at least 60 days’ (or such lesser period as may then be applicable under the CRAF
Program of the United States government) prior written notice of default hereunder has been given
by Loan Trustee by registered or certified mail to Company (and any such

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Permitted Lessee) with a copy addressed to the Contracting Office Representative or other
appropriate person for the Air Mobility Command of the United States Air Force under any contract
with Company (or such Permitted Lessee) relating to the Aircraft):

     (i) declare by written notice to Company all the Equipment Notes to be due and
payable, whereupon the aggregate unpaid principal amount of all Equipment Notes then
outstanding, together with accrued but unpaid interest thereon, and other amounts due
thereunder (but without Make-Whole Amount), shall immediately become due and payable
without presentment, demand, protest or other notice, all of which are hereby waived;
provided that if an Event of Default referred to in Sections 4.01(f), (g), (h) or
(i) has occurred and is continuing, then and in every such case the unpaid principal amount
of the Equipment Notes then outstanding, together with accrued but unpaid interest thereon,
and all other amounts due thereunder (but without Make-Whole Amount) shall immediately and
without further act become due and payable without presentment, demand, protest or notice,
all of which are hereby waived; and, following such declaration or deemed declaration:

     (ii) (A) cause Company, upon the demand by notice of Loan Trustee, at
Company’s expense, to deliver promptly, and Company shall deliver promptly, all or such
part of the Airframe or any Engine as Loan Trustee so demands to Loan Trustee or its order,
or, if Company has failed to so deliver the Airframe or any Engine after such demand, Loan
Trustee, at its option, may enter upon the premises where all or any part of the Airframe
or any Engine are located and take immediate possession of and remove the same together
with any engine which is not an Engine but which is installed on the Airframe, subject to
all of the rights of the owner, lessor, lienor or secured party of such engine;
provided that the Airframe with an engine (which is not an Engine) installed
thereon may be flown or returned only to a location within the continental United States,
and such engine shall be held at the expense of Company for the account of any such owner,
lessor, lienor, secured party or, if such engine is owned by Company, may at the option of
Company with the consent of Loan Trustee (which will not be unreasonably withheld) or at
the option of Loan Trustee with the consent of Company (which will not be unreasonably
withheld), be exchanged with Company for an Engine in accordance with the provisions of
Section 7.05(b); (B) sell all or any part of the Airframe and any Engine at public
or private sale, whether or not Loan Trustee at the time has possession thereof, as Loan
Trustee may determine, or otherwise dispose of, hold, use, operate, lease to others or keep
idle all or any part of the Airframe or such Engine as Loan Trustee, in its sole
discretion, determines, all free and clear of any rights or claims of Company, and the
proceeds of such sale or disposition shall be applied as set forth in Section 3.03; or
(C) exercise any other remedy of a secured party under the Uniform

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Commercial Code of the State of New York (whether or not in effect in the jurisdiction
in which enforcement is sought); provided that, notwithstanding anything to the
contrary set forth herein or in any other Operative Document, (i) as permitted by
Article 15 of the Cape Town Convention, the provisions of Chapter III of the Cape Town
Convention are hereby excluded and made inapplicable to this Indenture and the other
Operative Documents, except for those provisions of such Chapter III that cannot be
derogated from; and (ii) as permitted by Article IV(3) of the Aircraft Protocol,
the provisions of Chapter II of the Aircraft Protocol are hereby excluded and made
inapplicable to this Indenture and the other Operative Documents, except for (x)
Article XVI of the Aircraft Protocol and (y) those provisions of such Chapter II
that cannot be derogated from. In furtherance of the foregoing, the parties hereto agree
that the exercise of remedies hereunder and the other Operative Documents is subject to
other applicable law, including without limitation, the Uniform Commercial Code (as in
effect in the State of New York) and the Bankruptcy Code, and that nothing herein derogates
from the rights of Company or Loan Trustee under or pursuant to such other applicable law,
including without limitation, the Uniform Commercial Code (as in effect in the State of New
York) or the Bankruptcy Code.

     Upon every such taking of possession of Collateral under this Section 4.02, Loan Trustee may,
from time to time, at the expense of the Collateral, make all such expenditures for maintenance,
insurance, repairs, alterations, additions and improvements to and of the Collateral as it deems
necessary to cause the Collateral to be in such condition as required by the provisions of this
Indenture. In each such case, Loan Trustee may maintain, use, operate, store, insure, lease,
control, manage or dispose of the Collateral and may exercise all rights and powers of Company
relating to the Collateral as Loan Trustee reasonably deems best, including the right to enter into
any and all such agreements with respect to the maintenance, use, operation, storage, insurance,
leasing, control, management or disposition of the Collateral or any part thereof as Loan Trustee
may reasonably determine; and Loan Trustee shall be entitled to collect and receive directly all
tolls, rents, revenues, issues, income, products and profits of the Collateral and every part
thereof without prejudice, however, to the rights of Loan Trustee under any provision of this
Indenture to collect and receive all cash held by, or required to be deposited with Loan Trustee
hereunder. Such tolls, rents, revenues, issues, income, products and profits shall be applied to
pay the expenses of the use, operation, storage, insurance, leasing, control, management or
disposition of the Collateral, and of all maintenance, repairs, replacements, alterations,
additions and improvements, and to make all payments that Loan Trustee is required or elects to
make, if any, for Taxes, insurance or other proper charges assessed against or otherwise imposed
upon the Collateral or any part thereof, and all other payments which Loan Trustee is required or
expressly authorized to make under any provision of this Indenture, as well as just and reasonable
compensation for the services of Loan Trustee, and shall otherwise be applied in

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accordance with Article III. If an Event of Default has occurred and is continuing and the
Equipment Notes either have been accelerated pursuant to this Section 4.02 or have become due at
maturity and Loan Trustee is entitled to exercise rights hereunder, at the request of Loan Trustee,
Company shall promptly execute and deliver to Loan Trustee such instruments of title and other
documents as Loan Trustee reasonably deems necessary or advisable to enable Loan Trustee or an
agent or representative designated by Loan Trustee, at such time or times and place or places as
Loan Trustee specifies, to obtain possession of all or any part of the Collateral to which Loan
Trustee at the time is entitled hereunder. If Company for any reason fails to execute and deliver
such instruments and documents after such request by Loan Trustee, Loan Trustee may seek a judgment
conferring on Loan Trustee the right to immediate possession and requiring Company to execute and
deliver such instruments and documents to Loan Trustee, to the entry of which judgment Company
hereby specifically consents to the fullest extent it may lawfully do so. All actual and
reasonable expenses of obtaining such judgment or of pursuing, searching for and taking such
property shall, until paid, be secured by the Lien of this Indenture.

     (b) Loan Trustee shall give Company at least 30 days’ prior written notice of any public sale
or of the date on or after which any private sale will be held, which notice Company hereby agrees
to the extent permitted by applicable law is reasonable notice. Any Noteholder or Noteholders
shall be entitled to bid for and become the purchaser of any Collateral offered for sale pursuant
to this Section 4.02 and to credit against the purchase price bid at such sale by such Noteholders
all or any part of the unpaid amounts owing to such Noteholders under the Operative Documents and
secured by the Lien of this Indenture (but only to the extent that such purchase price would have
been paid to such Noteholders pursuant to Article III if such purchase price were paid in cash and
the foregoing provision of this Section 4.02(b) were not given effect). Loan Trustee may exercise
such right without possession or production of the Equipment Notes or proof of ownership thereof,
and as a representative of Noteholders may exercise such right without notice to Noteholders as
party to any suit or proceeding relating to the foreclosure of any Collateral. Company may also
bid for and become the purchaser of any Collateral offered for sale pursuant to this Section 4.02.

     (c) To the extent permitted by applicable law, while an Event of Default has occurred and is
continuing, Company irrevocably appoints Loan Trustee the true and lawful attorney-in-fact of
Company (which appointment is coupled with an interest) in its name and stead and on its behalf,
for the purpose of effectuating any sale, assignment, transfer or delivery for the enforcement of
the Lien of this Indenture, whether pursuant to foreclosure or power of sale, or otherwise, to
execute and deliver all such bills of sale, assignments and other instruments as may be necessary
or appropriate, with full power of substitution, Company hereby ratifying and confirming all that
such attorney or any substitute does by virtue hereof in accordance with applicable law;
provided that if so

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requested by Loan Trustee or any purchaser, Company shall ratify and confirm any such sale,
assignment or transfer of delivery, by executing and delivering to Loan Trustee or such purchaser
all bills of sale, assignments, releases and other proper instruments to effect such ratification
and confirmation as may reasonably be designated in any such request.

     (d) At any time after Loan Trustee has declared the unpaid principal amount of all Equipment
Notes then outstanding to be due and payable, or all Equipment Notes shall have become due and
payable as provided in the proviso to Section 4.02(a)(i), and, in either case, prior to the sale of
any part of the Collateral pursuant to this Article IV, a Majority in Interest of Noteholders, by
written notice to Company and Loan Trustee, may rescind and annul such declaration, whether made by
Loan Trustee on its own accord or as directed or deemed declaration, and its consequences if:
(i) there has been paid to or deposited with Loan Trustee an amount sufficient to pay all
overdue installments of principal amount of, and interest on, the Equipment Notes, and all other
amounts owing under the Operative Documents, that have become due otherwise than by such
declaration of acceleration and (ii) all other Events of Default, other than nonpayment of
principal amount or interest on the Equipment Notes that have become due solely because of such
acceleration, have been either cured or waived; provided that no such rescission or
annulment shall extend to or affect any subsequent default or Event of Default or impair any right
consequent thereon.

     (e) Notwithstanding anything contained herein, (i) so long as Pass Through Trustee
under any Pass Through Trust Agreement or Subordination Agent on its behalf is a Noteholder, Loan
Trustee will not be authorized or empowered to acquire title to any Collateral or take any action
with respect to any Collateral so acquired by it if such acquisition or action would cause any Pass
Through Trust to fail to qualify as a “grantor trust” for federal income tax purposes, and
(ii) Loan Trustee will not take any action that would violate Section 4.01(a)(ii) or
4.01(a)(iii) of the Intercreditor Agreement.

     Section 4.03 Remedies Cumulative. To the extent permitted under applicable law, each
and every right, power and remedy specifically given to Loan Trustee herein or otherwise in this
Indenture shall be cumulative and shall be in addition to every other right, power and remedy
specifically given herein or now or hereafter existing at law, in equity or by statute, and each
and every right, power and remedy whether specifically given herein or otherwise existing may be
exercised from time to time and as often and in such order as may be deemed expedient by Loan
Trustee, and the exercise or the beginning of the exercise of any power or remedy shall not be
construed to be a waiver of the right to exercise at the same time or thereafter any other right,
power or remedy. No delay or omission by Loan Trustee in the exercise of any right, remedy or
power or in the pursuance of any remedy shall, to the extent permitted by applicable law, impair
any such

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right, power or remedy or be construed to be a waiver of any default on the part of Company or
to be an acquiescence therein.

     Section 4.04 Discontinuance of Proceedings. In case Loan Trustee has instituted any
proceedings to enforce any right, power or remedy under this Indenture by foreclosure, entry or
otherwise, and such proceedings have been discontinued or abandoned for any reason or have been
determined adversely to Loan Trustee, then and in every such case Company and Loan Trustee shall,
subject to any determination in such proceedings, be restored to their former positions and rights
hereunder with respect to the Collateral, and all rights, remedies and powers of Loan Trustee shall
continue as if no such proceedings had been undertaken (but otherwise without prejudice).

     Section 4.05 Waiver of Past Defaults. Upon written instruction from a Majority in
Interest of Noteholders, Loan Trustee shall waive any past default hereunder and its consequences,
and upon any such waiver such default shall cease to exist and any Event of Default arising
therefrom shall be deemed to have been cured for every purpose of this Indenture and the other
Operative Documents, but no such waiver shall extend to any subsequent or other default or impair
any right consequent thereon; provided that in the absence of written instructions from
each of the affected Noteholders, Loan Trustee shall not waive any default (i) in the
payment of the principal amount, Make-Whole Amount, if any, or interest due under any Equipment
Note then outstanding (other than with the consent of the holder thereof), or (ii) in
respect of a covenant or provision hereof which, under Article IX, cannot be modified or amended
without the consent of each such affected Noteholder.

     Section 4.06 Noteholders May Not Bring Suit Except Under Certain Conditions. A
Noteholder of any Series shall not have the right to institute any suit, action or proceeding at
law or in equity or otherwise with respect to this Indenture for the appointment of a receiver or
for the enforcement of any other remedy under this Indenture, unless:

     (1) such Noteholder previously shall have given written notice to Loan Trustee of a
continuing Event of Default;

     (2) a Majority in Interest of Noteholders shall have requested Loan Trustee in writing
to institute such action, suit or proceeding and shall have offered to Loan Trustee
indemnity as provided in Section 5.03;

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     (3) Loan Trustee shall have refused or neglected to institute any such action, suit or
proceeding for 60 days after receipt of such notice, request and offer of indemnity; and

     (4) no direction inconsistent with such written request shall have been given to Loan
Trustee during such 60-day period by a Majority in Interest of Noteholders.

     Except to the extent provided in the Intercreditor Agreement or in any Indenture Supplement,
it is understood and intended that no one or more of Noteholders of any Series shall have any right
in any manner whatsoever hereunder or under the Indenture Supplement or under the Equipment Notes
of such Series to (i) surrender, impair, waive, affect, disturb or prejudice any
Collateral, or the Lien of the Indenture on any Collateral, or the rights of Noteholders of such
Series, (ii) obtain or seek to obtain priority over or preference with respect to any other
such Noteholder of such Series or (iii) enforce any right under this Indenture, except in
the manner provided in this Indenture and for the equal, ratable and common benefit of all
Noteholders of such Series subject to the provisions of this Indenture.

     Section 4.07 Appointment of a Receiver. To the extent permitted by applicable law, if
an Event of Default shall have occurred and be continuing, and the Equipment Notes either shall
have been accelerated pursuant to Section 4.02 or have become due at maturity, Loan Trustee shall,
as a matter of right, be entitled to the appointment of a receiver (who may be Loan Trustee or any
successor or nominee thereof) for all or any part of the Collateral, whether such receivership be
incidental to a proposed sale of the Collateral or the taking of possession thereof or otherwise,
and, to the extent permitted by applicable law, Company hereby consents to the appointment of such
a receiver and will not oppose any such appointment. Any receiver appointed for all or any part of
the Collateral shall be entitled to exercise all the rights and powers of Loan Trustee with respect
to the Collateral.

ARTICLE V

Duties of Loan Trustee

     Section 5.01 Notice of Event of Default. If Loan Trustee has knowledge of an Event of
Default or of a default arising from a failure by Company to pay when due any payment of principal
amount, interest on, or Make-Whole Amount, if any, due and payable under any Equipment Note, Loan
Trustee shall promptly give notice thereof to

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Company, each Liquidity Provider and each Noteholder. Subject to the terms of Sections 4.02,
4.05, 5.02 and 5.03, Loan Trustee shall take such action, or refrain from taking such action, with
respect to such default or Event of Default (including with respect to the exercise of any rights
or remedies hereunder) as Loan Trustee is instructed in writing by a Majority in Interest of
Noteholders. Subject to the provisions of Section 5.03, if Loan Trustee does not receive
instructions as above provided within 20 Business Days after giving notice of such default or Event
of Default to Noteholders, Loan Trustee may, subject to instructions thereafter received pursuant
to the preceding provisions of this Section 5.01, take such action, or refrain from taking such
action with respect to such default or Event of Default as it reasonably determines to be advisable
in the best interests of Noteholders, but shall be under no duty to take or refrain from taking any
action. Loan Trustee shall use the same degree of care and skill in connection therewith as a
prudent person would use under the circumstances in the conduct of his or her own affairs. Loan
Trustee may not sell the Airframe or any Engine without the consent of a Majority in Interest of
Noteholders.

     For all purposes of this Indenture, in the absence of actual knowledge, Loan Trustee shall not
be deemed to have knowledge of a default or an Event of Default unless notified in writing by
Company or one or more Noteholders; and “actual knowledge” (as used in the foregoing clause) of
Loan Trustee shall mean actual knowledge of an officer in the Corporate Trust Office of Loan
Trustee; provided that Loan Trustee is deemed to have actual knowledge of (i) the
failure of Company to pay any principal amount of, or interest on, the Equipment Notes directly to
Loan Trustee when the same shall become due or (ii) the failure of Company to maintain
insurance as required under Section 7.06 if Loan Trustee receives written notice thereof from an
insurer or insurance broker.

     Section 5.02 Action upon Instructions; Certain Rights and Limitations. Subject to the
terms of Article IV and this Article V, upon the written instructions at any time of a Majority in
Interest of Noteholders, Loan Trustee shall promptly (i) give such notice, direction,
consent, waiver or approval or exercise such right, remedy or power hereunder in respect of all or
any part of the Collateral or (ii) take such other action permitted hereunder, in each
case, as is specified in such instructions.

     Loan Trustee will cooperate with Company in connection with the recording, filing,
re-recording and refiling of the Indenture and any supplements to it and any financing statements
or other documents as is necessary to maintain the perfection hereof or otherwise protect the
security interests created hereby. Loan Trustee shall furnish to Company upon request such
information and copies of such documents as Loan Trustee may have and as are necessary for Company
to perform its duties under Article II.

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     Section 5.03 Indemnification. Loan Trustee shall not be required to take any action
or refrain from taking any action under Section 5.01 (other than the first sentence thereof) or
5.02 or Article IV unless it shall have received indemnification against any risks incurred in
connection therewith in form and substance reasonably satisfactory to it, including, without
limitation, adequate advances against costs that may be actually incurred by it in connection
therewith. Loan Trustee shall not be required to take any action under Section 5.01 (other than
the first sentence thereof) or 5.02 or Article IV, nor shall any other provision of any Operative
Document be deemed to impose a duty on Loan Trustee to take any action, if Loan Trustee shall have
been advised by outside counsel that such action is contrary to the terms hereof or is otherwise
contrary to law.

     Section 5.04 No Duties Except as Specified in Indenture or Instructions. Loan Trustee
shall not have any duty or obligation to manage, control, lease, use, sell, operate, store, dispose
of or otherwise deal with the Aircraft or any other part of the Collateral, or to otherwise take or
refrain from taking any action under, or in connection with, this Indenture, except as expressly
provided by the terms of this Indenture or the Participation Agreement or as expressly provided in
written instructions received pursuant to the terms of Section 5.01 or 5.02; and no implied duties
or obligations shall be read into this Indenture against Loan Trustee.

     Section 5.05 No Action Except under Indenture or Instructions. Loan Trustee will not
manage, control, use, sell, lease, operate, store, dispose of or otherwise deal with the Aircraft
or any other part of the Collateral except in accordance with the powers granted to, or the
authority conferred upon, Loan Trustee pursuant to this Indenture and in accordance with the
express terms hereof.

     Section 5.06 Investment of Amounts Held by Loan Trustee. Any monies (including for
the purpose of this Section 5.06 any amounts held by Loan Trustee pursuant to Section 3.02, 3.03 or
3.07 or pursuant to any provision of any other Operative Document providing for amounts to be held
by Loan Trustee which are not distributed pursuant to the other provisions of Article III, or any
cash received by Loan Trustee pursuant to Section 7.05(c) or 7.06(d) or otherwise, or Permitted
Investments purchased by the use of such cash pursuant to this Section 5.06 or any cash
constituting the proceeds of the maturity, sale or other disposition of any Permitted Investments)
held by Loan Trustee hereunder as part of the Collateral, until paid out by Loan Trustee as herein
provided, (i) subject to clause (ii) below and Section 3.07, may be carried by Loan Trustee
on deposit with itself or on deposit to its account with any bank, trust company or national
banking association incorporated or doing business under the laws of the United States or one of
the states thereof having combined capital and surplus and retained earnings of a least
$100,000,000, and Loan Trustee shall not have any liability for interest upon any such monies
except as otherwise agreed in writing with Company, or (ii) at any

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time and from time to time, so long as no Event of Default shall have occurred and be
continuing, at the request of Company, shall be invested and reinvested in Permitted Investments as
specified in such request (if such investments are reasonably available for purchase) and sold, in
any case at such prices, including accrued interest or its equivalent, as are set forth in such
request, and, as provided in Section 3.07, such Permitted Investments shall be held by Loan Trustee
in trust as part of the Collateral until so sold; provided that Company shall upon demand
pay to Loan Trustee the amount of any loss realized upon maturity, sale or other disposition of any
such Permitted Investment and, so long as no Event of Default or Payment Default shall have
occurred and be continuing, Company shall be entitled to receive from Loan Trustee, and Loan
Trustee shall promptly pay to Company, any profit, income, interest, dividend or gain realized upon
maturity, sale or other disposition of any Permitted Investment. All Permitted Investments held by
Loan Trustee pursuant to this Section 5.06 shall be held pursuant to Section 3.07. If an Event of
Default or Payment Default shall have occurred and be continuing, any net income, profit, interest,
dividend or gain realized upon maturity, sale or other disposition of any Permitted Investment
shall be held as part of the Collateral and shall be applied by Loan Trustee at the same time, on
the same conditions and in the same manner as the amounts in respect of which such income, profit,
interest, dividend or gain was realized are required to be distributed in accordance with the
provisions hereof pursuant to which such amounts were required to be held. Subject to Section
3.03, at such time as there shall not be continuing any such Event of Default or Payment Default,
such income, profit, interest, dividend or gain shall be paid to Company. In addition, subject to
Section 3.03, if any moneys or investments are held by Loan Trustee solely because an Event of
Default or Payment Default has occurred and is continuing, at such time as there shall not be
continuing any such Event of Default or Payment Default, such moneys and investments shall be paid
to Company. Loan Trustee shall not be responsible for any losses on any investments or sales of
Permitted Investments made pursuant to the procedure specified in this Section 5.06 other than by
reason of its willful misconduct or negligence.

ARTICLE VI

Loan Trustee

     Section 6.01 Acceptance of Trusts and Duties. U.S. Bank accepts the trusts and duties
hereby created and applicable to it and agrees to perform such duties, but only upon the terms of
this Indenture and agrees to receive, handle and disburse all monies received by it as Loan Trustee
constituting part of the Collateral in accordance with the terms. U.S. Bank shall have no
liability hereunder except (a) for its own willful misconduct or negligence, (b) as
provided in the fourth sentence of Section 2.03 and the last sentence of Section 5.06, (c)
for liabilities that may result from the inaccuracy of any

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representation or warranty of U.S. Bank in the Participation Agreement or expressly made
hereunder and (d) as otherwise expressly provided in the Operative Documents.

     For the avoidance of doubt, Loan Trustee shall also be accountable in its capacity as
Securities Intermediary with respect to the Security Account, as set forth in Section 3.07.

     Section 6.02 Absence of Certain Duties. Except in accordance with written
instructions furnished pursuant to Section 5.01, 5.02 or 6.06, and except as provided in, and
without limiting the generality of, Sections 5.02, 5.03 and 5.04, Loan Trustee shall have no duty
(a) to see to any registration of the Aircraft or any recording or filing of this Indenture
or any other document, or to see to the maintenance of any such registration, recording or filing,
(b) to see to any insurance on the Aircraft or to effect or maintain any such insurance,
whether or not Company is in default with respect thereto, (c) to confirm, verify or
inquire into the failure to receive any financial statements of Company or (d) to inspect
the Aircraft at any time or ascertain or inquire as to the performance or observance of any of
Company’s covenants hereunder with respect to the Aircraft.

     Section 6.03 No Representations or Warranties as to the Documents. Except as provided
in Article V of the Participation Agreement, Loan Trustee shall not be deemed to have made any
representation or warranty as to the validity, legality or enforceability of any Operative Document
or any other document or instrument, or as to the correctness of any statement (other than a
statement by Loan Trustee) contained herein or therein, except that Loan Trustee hereby represents
and warrants that each of said specified documents to which it is a party has been or will be duly
executed and delivered by one of its officers who is and will be duly authorized to execute and
deliver such document on its behalf.

     Section 6.04 No Segregation of Monies; No Interest. Subject to Section 5.06 and
except as provided in Section 3.07, all moneys received by Loan Trustee shall, until used or
applied as herein provided, be held in trust for the purposes for which they were received, but
need not be segregated from other funds except to the extent required by mandatory provisions of
law, and neither Loan Trustee nor any agent of Loan Trustee shall be under any liability for
interest on any moneys received by it hereunder; provided that any payments received, or
applied hereunder, by Loan Trustee shall be accounted for by Loan Trustee so that any portion
thereof paid or applied pursuant hereto shall be identifiable as to the source thereof.

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     Section 6.05 Reliance; Agents; Advice of Counsel. Loan Trustee shall not incur any
liability to anyone in acting upon any signature, instrument, notice, resolution, request, consent,
order, certificate, report, opinion, bond or other document or paper reasonably believed by it to
be genuine and reasonably believed by it to be signed by the proper party or parties. Loan Trustee
may accept a copy of a resolution of the Board of Directors of any party to the Participation
Agreement, certified by the Secretary or an Assistant Secretary of such party as duly adopted and
in full force and effect, as conclusive evidence that such resolution has been duly adopted and
that the same is in full force and effect. As to any fact or matter the manner of ascertainment of
which is not specifically described herein, Loan Trustee may for all purposes hereof rely on a
certificate, signed by a duly authorized officer of Company, as to such fact or matter, and such
certificate shall constitute full protection to Loan Trustee for any action taken or omitted to be
taken by it in good faith in reliance thereon. In the administration of the trusts hereunder, Loan
Trustee may (a) execute any of the trusts or powers hereof and perform its powers and
duties hereunder directly or through agents (including paying agents or registrars) or attorneys,
and (b) at the expense of the Collateral, consult with counsel, accountants and other
skilled Persons to be selected and retained by it; provided that, prior to retaining agents
(including paying agents or registrars), counsel, accountants or other skilled Persons, so long as
no Event of Default exists, Loan Trustee shall obtain Company’s consent (such consent not to be
unreasonably withheld). Loan Trustee shall not be liable for anything done, suffered or omitted in
good faith by it in accordance with the advice or opinion of any such counsel, accountants or other
skilled Persons acting within such counsel’s, accountants’ or Person’s area of competence (so long
as Loan Trustee shall have exercised reasonable care and judgment in selecting such Persons).

     Section 6.06 Instructions from Noteholders. In the administration of the trusts
created hereunder, Loan Trustee shall have the right to seek instructions from a Majority in
Interest of Noteholders should any provision of this Indenture appear to conflict with any other
provision herein or any other Operative Document or Pass Through Document or should Loan Trustee’s
duties or obligations hereunder be unclear, and Loan Trustee shall incur no liability in refraining
from acting until it receives such instructions. Loan Trustee shall be fully protected for acting
in accordance with any instructions received under this Section 6.06.

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ARTICLE VII

Operating Covenants of Company

     Section 7.01 Liens. Company will not directly or indirectly create, incur, assume or
suffer to exist any Lien on or with respect to the Aircraft, its title thereto or any of its
interest therein, except:

     (a) the respective rights of Loan Trustee and Company as provided in the Operative
Documents, the Lien of this Indenture, the rights of any Permitted Lessee under a Lease
permitted hereunder and the rights of any Person existing pursuant to the Operative
Documents or the Pass Through Documents;

     (b) the rights of others under agreements or arrangements to the extent expressly
permitted by this Indenture;

     (c) Loan Trustee Liens, Noteholder Liens and Other Party Liens;

     (d) Liens for Taxes either not yet overdue or being contested in good faith by
appropriate proceedings so long as such proceedings do not involve any material risk of the
sale, forfeiture or loss of the Airframe or any Engine or Loan Trustee’s interest therein
or impair the Lien of this Indenture;

     (e) materialmen’s, mechanics’, workers’, repairmen’s, landlords’, employees’ or other
like Liens arising in the ordinary course of business (including those arising under
maintenance agreements entered into in the ordinary course of business) securing
obligations that either are not yet overdue for a period of more than 60 days or are being
contested in good faith by appropriate proceedings so long as such proceedings do not
involve any material risk of the sale, forfeiture or loss of the Airframe or any Engine or
Loan Trustee’s interest therein or materially impair the Lien of this Indenture;

     (f) Liens arising out of any judgment or award, so long as such judgment or award is,
within 60 days after the entry thereof, discharged, vacated or reversed, or execution
thereof stayed pending appeal or other judicial review or is discharged, vacated or
reversed within 60 days after the expiration of such stay;

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     (g) any other Lien with respect to which Company provides a bond, cash collateral or
other security adequate in the reasonable opinion of Loan Trustee;

     (h) salvage or similar rights of insurers under insurance policies maintained by
Company; and

     (i) Liens approved in writing by Loan Trustee with the consent of a Majority in
Interest of Noteholders.

     Liens described in clauses (a) through (i) above are referred to herein as “Permitted
Liens”. Company shall promptly, at its own expense, take (or cause to be taken) such action as
may be necessary duly to discharge (by bonding or otherwise) any Lien other than a Permitted Lien
arising at any time with respect to the Aircraft, its title thereto or any of its interest therein.

     Section 7.02 Possession, Operation and Use, Maintenance and Registration.

     (a) Possession. Without the prior written consent of Loan Trustee, Company shall not
lease or otherwise in any manner deliver, transfer or relinquish possession of the Airframe or any
Engine or install any Engine, or permit any Engine to be installed, on any airframe other than the
Airframe; provided that Company (or, except with respect to clauses (viii) and (ix) below,
any Permitted Lessee) may without the prior written consent of Loan Trustee:

     (i) subject the Airframe to interchange agreements or subject any Engine to
interchange or pooling agreements or arrangements, in each case entered into by Company (or
any Permitted Lessee) in the ordinary course of its business; provided that
(A) no such agreement or arrangement contemplates or requires the transfer of title
to the Airframe and (B) if Company’s title to any such Engine is divested under any
such agreement or arrangement, such divestiture shall be deemed to be an Event of Loss with
respect to such Engine, and Company shall (or shall cause any Permitted Lessee to) comply
with Section 7.05(b) in respect thereof;

     (ii) deliver possession of the Airframe or any Engine to any Person for testing,
service, repair, restoration, storage, maintenance or other similar purposes

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or for alterations, modifications or additions to the Airframe or such Engine to the
extent required or permitted by the terms hereof;

     (iii) transfer or permit the transfer of possession of the Airframe or any Engine to
any Government pursuant to a lease, contract or other instrument;

     (iv) subject (or permit any Permitted Lessee to subject) the Airframe or any Engine to
the CRAF Program or transfer (or permit any Permitted Lessee to transfer) possession of the
Airframe or any Engine to the United States government in accordance with applicable laws,
rulings, regulations or orders (including, without limitation, any transfer of possession
pursuant to the CRAF Program); provided that Company (or any Permitted Lessee)
(A) shall promptly notify Loan Trustee upon transferring possession of the Airframe
or any Engine pursuant to this clause (iv) and (B) in the case of a transfer of
possession pursuant to the CRAF Program, shall notify Loan Trustee of the name and address
of the responsible Contracting Office Representative for the Air Mobility Command of the
United States Air Force or other appropriate Person to whom notices must be given and to
whom requests or claims must be made to the extent applicable under the CRAF Program;

     (v) install an Engine on an airframe owned by Company (or any Permitted Lessee) free
and clear of all Liens, except (A) Permitted Liens and Liens that apply only to the
engines (other than Engines), appliances, parts, instruments, appurtenances, accessories,
furnishings and other equipment (other than Parts) installed on such airframe (but not to
the airframe as an entirety) and (B) the rights of third parties under interchange
agreements or pooling or similar arrangements that would be permitted under clause (i)
above;

     (vi) install an Engine on an airframe leased to Company (or any Permitted Lessee) or
purchased or owned by Company (or any Permitted Lessee) subject to a conditional sale or
other security agreement; provided that: (A) such airframe is free and
clear of all Liens except (1) the rights of the parties to the lease or conditional
sale or other security agreement covering such airframe, or their successors and assigns,
and (2) Liens of the type permitted by clause (v) of this Section 7.02(a); and
(B) either: (1) Company has obtained from the lessor or secured party of
such airframe a written agreement (which may be the lease, conditional sale or other
security agreement covering such airframe), in form and substance satisfactory to Loan
Trustee (an agreement from such lessor or secured party substantially in the form of the
penultimate paragraph of this Section 7.02(a) being deemed to be satisfactory to Loan
Trustee), whereby such lessor or secured

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party expressly agrees that neither it nor its successors or assigns will acquire or
claim any right, title or interest in any Engine by reason of such Engine being installed
on such airframe at any time while such Engine is subject to the Lien of this Indenture, or
(2) such lease, conditional sale or other security agreement provides that such
Engine shall not become subject to the Lien of such lease, conditional sale or other
security agreement at any time while such Engine is subject to the Lien of this Indenture,
notwithstanding its installation on such airframe;

     (vii) install an Engine on an airframe owned by Company (or any Permitted Lessee),
leased to Company (or any Permitted Lessee) or purchased by Company (or any Permitted
Lessee) subject to a conditional sale or other security agreement under circumstances where
neither clause (v) nor clause (vi) of this Section 7.02(a) is applicable; provided
that such installation shall be deemed an Event of Loss with respect to such Engine, and
Company shall comply with Section 7.05(b) in respect thereof, if such installation
adversely affects Loan Trustee’s security interest in such Engine, Loan Trustee not
intending hereby to waive any right or interest it may have to or in such Engine under
applicable law until compliance by Company with Section 7.05(b);

     (viii) lease any Engine or the Airframe and Engines to any United States air carrier
as to which there is in force a certificate issued pursuant to the Transportation Code (49
U.S.C. Sections 41101-41112) or successor provision that gives like authority;
provided that no Event of Default exists at the time such lease is entered into;
and

     (ix) lease any Engine or the Airframe and Engines to (A) any foreign air
carrier that is at the inception of the lease based in and a domiciliary of a country
listed in Exhibit B hereto, (B) the manufacturer of the Airframe or any Engine
(either directly or through an affiliate) and (C) any foreign air carrier consented
to in writing by Loan Trustee with the consent of a Majority in Interest of Noteholders;
provided that (w) no Event of Default exists at the time such lease is
entered into, (x) in the case of a lease to any foreign air carrier (other than a
foreign air carrier principally based in Taiwan), the United States maintains normal
diplomatic relations with the country in which such foreign air carrier is based at the
time such lease is entered into and in the case of a lease to a foreign air carrier
principally based in Taiwan, the United States maintains diplomatic relations with Taiwan
at least as good as those on the Closing Date, (y) in the case of a lease to any
foreign air carrier, Company furnishes Loan Trustee with a certificate from a Responsible
Officer of Company certifying that there exist no possessory rights in favor of such lessee
under the laws of such lessee’s country

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which would, upon bankruptcy or insolvency of or other default by Company, and
assuming at such time such lessee is not insolvent or bankrupt, prevent the taking of
possession of any such Engine or the Airframe and any such Engine by Loan Trustee in
accordance with and when permitted by the terms of Section 4.02 upon the exercise by Loan
Trustee of its remedies under Section 4.02, and (z) in the case of any lease to a
foreign air carrier, such carrier is not then subject to any bankruptcy, insolvency,
liquidation, reorganization, dissolution or similar proceeding and shall not have
substantially all of its property in the possession of any liquidator, trustee, receiver or
similar person;

provided that the rights of any lessee or other transferee who receives possession of the
Aircraft, the Airframe or any Engine by reason of a transfer permitted by this Section 7.02(a)
(other than the transfer of an Engine which is deemed an Event of Loss) shall be subject and
subordinate to, and any permitted lease shall be made expressly subject and subordinate to, all the
terms of this Indenture, including Loan Trustee’s rights to repossess pursuant to Section 4.02 and
to avoid such lease upon such repossession, and Company shall remain primarily liable hereunder for
the performance and observance of all of the terms and conditions of this Indenture to the same
extent as if such lease or transfer had not occurred, any such lease shall include appropriate
provisions for the maintenance and insurance of the Aircraft, the Airframe or such Engine, and no
lease or transfer of possession otherwise in compliance with this Section shall (x) result
in any registration or re-registration of the Aircraft except to the extent permitted in Section
7.02(e) or the maintenance, operation or use thereof that does not comply with Sections 7.02(b) and
(c) or (y) permit any action not permitted to be taken by Company with respect to the
Aircraft hereunder. Company shall promptly notify Loan Trustee and the Rating Agencies of the
existence of any such lease with a term in excess of one year.

     Loan Trustee, each Noteholder by acceptance of an Equipment Note, and each Related Noteholder
by acceptance of a Related Equipment Note agrees, for the benefit of Company (and any Permitted
Lessee) and for the benefit of the lessor or secured party of any airframe or engine leased to
Company (or any Permitted Lessee) or purchased or owned by Company (or any Permitted Lessee)
subject to a conditional sale or other security agreement, that Loan Trustee, Noteholders and
Related Noteholders will not acquire or claim, as against Company (or any Permitted Lessee) or such
lessor or secured party, any right, title or interest in: (A) any engine or engines owned
by Company (or any Permitted Lessee) or by the lessor under such lease or subject to a security
interest in favor of the secured party under such conditional sale or other security agreement as
the result of such engine or engines being installed on the Airframe, or (B) any airframe
owned by Company (or any Permitted Lessee) or by the lessor under such lease or subject to a
security interest in favor of the secured party under such conditional sale or other security
agreement as the result of any Engine being installed on such airframe.

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     Loan Trustee acknowledges that any “wet lease” or other similar arrangement under which
Company (or any Permitted Lessee) maintains operational control of the Aircraft does not constitute
a delivery, transfer or relinquishment of possession for purposes of this Section 7.02(a).

     (b) Operation and Use. Company agrees that the Aircraft will not be maintained, used
or operated in violation of any law, rule or regulation of any government of any country having
jurisdiction over the Aircraft or in violation of any airworthiness certificate, license or
registration relating to the Aircraft issued by any such government, except to the extent Company
(or, if a Lease is then in effect, any Permitted Lessee) is contesting in good faith the validity
or application of any such law, rule or regulation in any manner that does not involve any material
risk of sale, forfeiture or loss of the Aircraft or impair the Lien of this Indenture;
provided that Company shall not be in default under, or required to take any action set
forth in, this sentence if it is not possible for it to comply with the laws of a jurisdiction
other than the United States (or other than any jurisdiction in which the Aircraft is then
registered) because of a conflict with the applicable laws of the United States (or such
jurisdiction in which the Aircraft is then registered). Company will not operate the Aircraft, or
permit the Aircraft to be operated or located, (i) in any area excluded from coverage by
any insurance required by the terms of Section 7.06 or (ii) in any war zone or recognized
or, in Company’s judgment, threatened areas of hostilities unless covered by war risk insurance in
accordance with Section 7.06, unless in the case of either clause (i) or (ii), (x)
government indemnification complying with Sections 7.06(a) and (b) has been provided or (y)
the Aircraft is only temporarily located in such area as a result of an isolated occurrence or
isolated series of occurrences attributable to a hijacking, medical emergency, equipment
malfunction, weather conditions, navigational error or other similar circumstances and Company is
using its good faith efforts to remove the Aircraft from such area as promptly as practicable.

     (c) Maintenance. Company shall maintain, service, repair and overhaul the Aircraft
(or cause the same to be done) (i) so as to keep the Aircraft in good operating condition
and in such condition as may be necessary to enable the airworthiness certification of the Aircraft
to be maintained in good standing at all times (other than during temporary periods of storage,
during maintenance, testing or modification permitted hereunder, or during periods of grounding by
applicable governmental authorities) under the Transportation Code, during such periods in which
the Aircraft is registered under the laws of the United States, or, if the Aircraft is registered
under the laws of any other jurisdiction, the applicable laws of such jurisdiction and (ii)
using the same standards as Company (or a Permitted Lessee, if a Lease is in effect) uses with
respect to similar aircraft operated by Company (or such Permitted Lessee) in similar circumstances
(it being understood that the obligations pursuant to this clause (ii) do not limit Company’s
obligations under the preceding clause (i)). In any case, the Aircraft

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will be maintained in accordance with the maintenance standards required by the FAA (while
operated under an FAA-approved maintenance program) or, while operated under the maintenance
program of another jurisdiction, standards substantially equivalent to those required by the
central aviation authority of Australia, Austria, Belgium, Canada, Denmark, Finland, France,
Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Spain, Sweden, Switzerland or
the United Kingdom. Company shall maintain or cause to be maintained all records, logs and other
documents required to be maintained in respect of the Aircraft by appropriate authorities in the
jurisdiction in which the Aircraft is registered.

     (d) Identification of Loan Trustee’s Interest. Company agrees to affix as promptly as
practicable after the Closing Date and thereafter to maintain in the cockpit of the Aircraft, in a
clearly visible location, and (if not prevented by applicable law or regulations or by any
government) on each Engine, a nameplate bearing the inscription “MORTGAGED TO U.S. BANK TRUST
NATIONAL ASSOCIATION, AS LOAN TRUSTEE” (such nameplate to be replaced, if necessary, with a
nameplate reflecting the name of any successor Loan Trustee).

     (e) Registration. Company shall cause the Aircraft to remain duly registered, under
the laws of the United States, in the name of Company except as otherwise required by the
Transportation Code; provided that Loan Trustee shall, at Company’s expense, execute and
deliver all such documents as Company may reasonably request for the purpose of continuing such
registration. Notwithstanding the preceding sentence, Company, at its own expense, may cause or
allow the Aircraft to be duly registered under the laws of any foreign jurisdiction in which a
Permitted Lessee could be principally based, in the name of Company or of any nominee of Company,
or, if required by applicable law, in the name of any other Person (and, following any such foreign
registration, may cause the Aircraft to be re-registered under the laws of the United States);
provided that in the case of jurisdictions other than those approved by Loan Trustee with
the consent of a Majority in Interest of Noteholders (i) if such jurisdiction is at the
time of registration listed on Exhibit B, Loan Trustee shall have received at the time of such
registration an opinion of counsel to Company to the effect that (A) this Indenture and
Loan Trustee’s right to repossession thereunder is valid and enforceable under the laws of such
country, (B) after giving effect to such change in registration, the Lien of this Indenture
shall continue as a valid Lien and shall be duly perfected in the new jurisdiction of registration
and that all filing, recording or other action necessary to perfect and protect the Lien of this
Indenture has been accomplished (or if such opinion cannot be given at such time, (x) the
opinion shall detail what filing, recording or other action is necessary and (y) Loan
Trustee shall have received a certificate from a Responsible Officer of Company that all possible
preparations to accomplish such filing, recording and other action shall have been done, and such
filing, recording and other action shall be accomplished and a supplemental opinion to that effect
shall be promptly

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delivered to Loan Trustee subsequent to the effective date of such change in registration),
(C) the obligations of Company under this Indenture shall remain valid, binding and
(subject to customary bankruptcy and equitable remedies exceptions and to other exceptions
customary in foreign opinions generally) enforceable under the laws of such jurisdiction (or the
laws of the jurisdiction to which the laws of such jurisdiction would refer as the applicable
governing law), (D) all approvals or consents of any government in such jurisdiction having
jurisdiction required for such change in registration shall have been duly obtained and shall be in
full force and effect and (E) (unless Company shall have agreed to provide insurance
covering the risk of requisition of use or title of the Aircraft by the government of such
jurisdiction so long as the Aircraft is registered under the laws of such jurisdiction) the laws of
such jurisdiction require fair compensation by the government of such jurisdiction payable in
currency freely convertible into Dollars for the loss of use or title of the Aircraft in the event
of requisition by such government of such use or title, and (ii) if such jurisdiction is at
the time of registration not listed on Exhibit B, Loan Trustee shall have received (in addition to
the opinions set forth in clause (i) above) at the time of such registration an opinion of counsel
to Company to the effect that (A) the terms of this Indenture are legal, valid, binding and
enforceable in such jurisdiction (subject to exceptions customary in such jurisdiction;
provided that, subject to exceptions relating to bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the rights of creditors generally and exceptions relating to
general principles of equity, such counsel shall opine that any applicable laws limiting the
remedies provided in Section 4.02 do not in the opinion of such counsel make the remedies provided
in Section 4.02 inadequate for the practical realization of the rights and benefits provided
thereby), (B) it is not necessary for Loan Trustee to register or qualify to do business in
such jurisdiction and (C) there is no tort liability of the lender of an aircraft not in
possession thereof under the laws of such jurisdiction other than tort liability that might have
been imposed on such lender under the laws of the United States or any state thereof (it being
understood that such opinion shall be waived if insurance reasonably satisfactory to Loan Trustee
is provided, at Company’s expense, to cover such risk). Loan Trustee will cooperate with Company
in effecting such foreign registration. Notwithstanding the foregoing, prior to any such change in
the country of registry of the Aircraft, the following conditions shall be met (or waived as
provided in Section 6.01(b) of the Participation Agreement):

     (i) no Event of Default shall have occurred and be continuing at the effective date of
the change in registration; provided that it shall not be necessary to comply with
this condition if the change in registration results in the registration of the Aircraft
under the laws of the United States or if a Majority in Interest of Noteholders consents to
such change in registration;

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     (ii) Loan Trustee shall have received evidence of compliance with the insurance
provisions contained herein after giving effect to such change in registration;

     (iii) other than in the case of a change in registration to Taiwan, the proposed
change in registration is made to a country with which the United States then maintains
normal diplomatic relations, and in the case of a change in registration to Taiwan, the
United States maintains diplomatic relations with Taiwan at least as good as those on the
Closing Date; and

     (iv) Company shall have paid or made provision reasonably satisfactory to Loan Trustee
for the payment of all reasonable expenses (including reasonable attorneys’ fees) of Loan
Trustee and Noteholders in connection with such change in registration.

     Company shall (i) at Loan Trustee’s request from time to time, take such actions as
may be required to be taken by Company so that any International Interest arising in relation to
this Indenture, the Aircraft, any Replacement Aircraft, any Engine or Replacement Engine may be
duly registered (and any such registration may be assigned, amended, extended or discharged) at the
International Registry, and (ii) obtain from the International Registry all approvals as
may be required duly and timely to perform Company’s obligations under this Indenture with respect
to the registration of any such International Interest. Loan Trustee shall take all actions
necessary with respect to the International Registry to consent to Company’s initiation of any
registrations required under this Indenture to enable Company to complete such registrations,
including, without limitation, appointing Daugherty, Fowler, Peregrin, Haught & Jenson, a
Professional Corporation, as its “professional user entity” (as defined in the Cape Town Treaty) to
consent to any registrations on the International Registry with respect to the Airframe or any
Engine.

     Section 7.03 Inspection; Financial Information.

     (a) Inspection. At all reasonable times, but upon at least 15 Business Days’ prior
written notice to Company, Loan Trustee or its authorized representatives may, subject to the other
conditions of this Section 7.03(a), inspect the Aircraft and may inspect the books and records of
Company relating to the maintenance of the Aircraft required to be maintained by the FAA or the
government of another jurisdiction in which the Aircraft is then registered; provided that
(i) Loan Trustee or its representatives, as the case may be, shall be fully insured at no
cost to Company or any Permitted Lessee in a

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manner satisfactory to Company with respect to any risks incurred in connection with any such
inspection or shall provide to Company a written release satisfactory to Company and any Permitted
Lessee with respect to such risks, (ii) any such inspection shall be during Company’s or
Permitted Lessee’s, as the case may be, normal business hours and subject to the safety, security
and workplace rules applicable at the location where such inspection is conducted and any
applicable governmental rules or regulations, (iii) any such inspection of the Aircraft
shall be a visual, walk-around inspection of the interior and exterior of the Aircraft and shall
not include opening any panels, bays or the like without Company’s express consent, which consent
Company may in its sole discretion withhold, and (iv) no exercise of such inspection right
shall interfere with the use, operation or maintenance of the Aircraft by, or the business of,
Company or any Permitted Lessee and Company and any Permitted Lessee shall not be required to
undertake or incur any additional liabilities in connection therewith. All information obtained in
connection with any such inspection of the Aircraft and of such books and records shall be
Confidential Information and shall be treated by Loan Trustee and its representatives in accordance
with the provisions of Section 10.16. Any inspection pursuant to this Section 7.03(a) shall be at
the sole risk (including, without limitation, any risk of personal injury or death) and expense of
Loan Trustee (or its representatives) making such inspection. Except during the continuance of an
Event of Default, all inspections by Loan Trustee and its representatives provided for under this
Section 7.03(a) shall be limited to one inspection of any kind contemplated by this Section 7.03(a)
during any consecutive twelve month period.

     (b) Financial Information. So long as any of the Secured Obligations remain unpaid,
Company agrees to furnish to Loan Trustee: (i) within 60 days after the end of each of the
first three quarterly periods in each fiscal year of Company, either (x) a consolidated
balance sheet of Company and its consolidated subsidiaries prepared by it as of the close of such
period, together with the related consolidated statements of income for such period or (y)
a report of Company on Form 10-Q in respect of such period in the form filed with the Securities
and Exchange Commission and (ii) within 120 days after the close of each fiscal year of
Company, either (x) a consolidated balance sheet of Company and its consolidated
subsidiaries as of the close of such fiscal year, together with the related consolidated statements
of income for such fiscal year, certified by independent public accountants, or (y) a
report of Company on Form 10-K in respect of such year in the form filed with the Securities and
Exchange Commission. The items required to be furnished pursuant to clause (i) and clause (ii)
above shall be deemed to have been furnished on the date on which such item is posted on the
Securities and Exchange Commission’s website at www.sec.gov, and such posting shall be deemed to
satisfy the requirements of clause (i) and clause (ii); provided that Company will deliver
a paper copy of any item referred to in clause (i) and clause (ii) above if Loan Trustee so
requests.

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     Section 7.04 Replacement and Pooling of Parts; Alterations, Modifications and Additions;
Substitution of Engines.

     (a) Replacement of Parts. Company shall promptly replace or cause to be replaced all
Parts incorporated or installed in or attached to the Airframe or any Engine and that become worn
out, lost, stolen, destroyed, seized, confiscated, damaged beyond repair or rendered permanently
unfit for use for any reason, except as otherwise provided in Section 7.04(c) or if the Airframe or
an Engine to which a Part relates has suffered an Event of Loss. In addition, Company (or any
Permitted Lessee) may remove in the ordinary course of maintenance, service, repair, overhaul or
testing, any Parts, whether or not worn out, lost, stolen, destroyed, seized, confiscated, damaged
beyond repair or rendered permanently unfit for use; provided that Company (or any
Permitted Lessee), except as otherwise provided in Section 7.04(c), will replace such Parts as
promptly as practicable. All replacement Parts shall be free and clear of all Liens (except for
Permitted Liens and except in the case of replacement property temporarily installed on an
emergency basis) and shall be in the condition and repair required to be maintained by the terms
hereof. Except as otherwise provided in Section 7.04(c), any Part removed from the Airframe or any
Engine shall remain subject to the Lien of this Indenture no matter where located until it is
replaced by a part incorporated or installed in or attached to the Airframe or such Engine that
meets the requirements for replacement Parts specified above. Immediately upon any replacement
Part becoming incorporated or installed in or attached to the Airframe or any Engine as above
provided (except in the case of replacement property temporarily installed on an emergency basis),
without further act, (i) the replaced Part shall thereupon be free and clear of all rights
of Loan Trustee and of the Lien of this Indenture and shall no longer be deemed a Part hereunder,
and (ii) such replacement Part shall become subject to the Lien of this Indenture and be
deemed a Part of the Airframe or such Engine for all purposes to the same extent as the Parts
originally incorporated or installed in or attached to the Airframe or such Engine. Upon request
of Company from time to time, Loan Trustee shall execute and deliver to Company an appropriate
instrument confirming the release of any such replaced Part from the Lien of this Indenture.

     (b) Pooling of Parts. Any Part removed from the Airframe or any Engine as provided in
Section 7.04(a) may be subjected by Company or a Person permitted to be in possession of the
Aircraft to a pooling arrangement entered into in the ordinary course of Company’s or such Person’s
business; provided that the part replacing such removed Part shall be incorporated or
installed in or attached to the Airframe or such Engine in accordance with Section 7.04(a) as
promptly as practicable after the removal of such removed Part. In addition, any replacement Part
when incorporated or installed in or attached to the Airframe or any Engine may be owned by any
third party subject to such a pooling arrangement; provided that Company, at its expense,
as promptly thereafter as practicable either (i) causes title to such replacement Part to
vest in Company free and

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clear of all Liens (except Permitted Liens), or (ii) replaces such replacement Part by
incorporating or installing in or attaching to the Airframe or such Engine a further replacement
Part in the manner contemplated by Section 7.04(a).

     (c) Alterations, Modifications and Additions. Company will make (or cause to be made)
such alterations and modifications in and additions to the Airframe and the Engines as are required
from time to time to meet the applicable requirements of the FAA or any applicable government of
any other jurisdiction in which the Aircraft is then registered; provided that Company (or,
if a Lease is then in effect, any Permitted Lessee) may, in good faith, contest the validity or
application of any such requirement in any manner that does not involve any material risk of sale,
loss or forfeiture of the Aircraft and does not materially adversely affect Loan Trustee’s interest
in the Aircraft. In addition, Company (or any Permitted Lessee), at its own expense, may from time
to time add further parts or accessories and make or cause to be made such alterations and
modifications in and additions to the Airframe or any Engine as Company (or any Permitted Lessee)
deems desirable in the proper conduct of its business, including, without limitation, removal
(without replacement) of Parts; provided that no such alteration, modification or addition
shall materially diminish the value or utility of the Airframe or such Engine below its value or
utility immediately prior to such alteration, modification or addition, assuming that the Airframe
or such Engine was then in the condition required to be maintained by the terms of this Indenture,
except that the value (but not the utility) of the Airframe or any Engine may be reduced by the
value of any such Parts that are removed that Company deems obsolete or no longer suitable or
appropriate for use on the Airframe or any Engine. All Parts incorporated or installed in or
attached or added to the Airframe or any Engine as the result of such alteration, modification or
addition shall, without further act, be subject to the Lien of this Indenture. Notwithstanding the
foregoing, Company (or any Permitted Lessee) may, at any time, remove any Part from the Airframe or
any Engine if such Part: (i) is in addition to, and not in replacement of or substitution
for, any Part originally incorporated or installed in or attached to the Airframe or such Engine at
the time of delivery thereof to Company or any Part in replacement of, or substitution for, any
such Part, (ii) is not required to be incorporated or installed in or attached or added to
the Airframe or such Engine pursuant to the first sentence of this Section 7.04(c) and
(iii) can be removed from the Airframe or such Engine without materially diminishing the
value or utility required to be maintained by the terms of this Indenture that the Airframe or such
Engine would have had had such Part never been installed on the Airframe or such Engine. Upon the
removal by Company (or any Permitted Lessee) of any Part as permitted by this Section 7.04(c), such
removed Part shall, without further act, be free and clear of all rights and interests of Loan
Trustee and the Lien of this Indenture and shall no longer be deemed a Part hereunder. Upon
request of Company from time to time, Loan Trustee shall execute and deliver to Company an
appropriate instrument confirming the release of any such removed Part from the Lien of this
Indenture. Loan Trustee acknowledges that it has no

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interest in the Excluded Equipment. Notwithstanding the provisions of this Section 7.04(c) or
any other term or condition of this Indenture, Company (or any Permitted Lessee) may from time to
time install on, and remove from, the Aircraft equipment that is owned by, leased to or
conditionally sold to Company (or any Permitted Lessee) (and title to such equipment shall remain
vested in Company, such Permitted Lessee, or the lessor or the conditional vendor thereof) if
(1) such equipment is Excluded Equipment and (2) the location affected by any such
removal, if damaged, is repaired prior to return, in a workmanlike manner, to a condition suitable
for commercial passenger service; provided that all costs of installation, removal and
replacement shall be the responsibility of Company.

     (d) Substitution of Engines. Company shall have the right at its option at any time,
on at least 30 days’ prior written notice to Loan Trustee, to substitute a Replacement Engine for
any Engine. In such event, and prior to the date of such substitution, Company shall replace such
Engine by complying with the terms of Section 7.05(b) to the same extent as if an Event of Loss had
occurred with respect to such Engine.

     Section 7.05 Loss, Destruction or Requisition.

     (a) Event of Loss with Respect to the Airframe. Upon the occurrence of an Event of
Loss with respect to the Airframe or the Airframe and the Engines then installed thereon, Company
shall as soon as practicable (and, in any event, within 30 days after an Event of Loss has
occurred) notify Loan Trustee of such Event of Loss, and, within 90 days after such Event of Loss,
Company shall give Loan Trustee written notice of its election to perform one of the following
options (it being agreed that if Company has not given such notice of election within such 90-day
period, Company shall be deemed to have elected to perform the option set forth in the following
clause (ii)). Company may elect either to:

     (i) substitute, on or before the Loss Payment Date (as defined below), as replacement
for the Airframe or Airframe and Engines with respect to which an Event of Loss has
occurred, a Replacement Airframe (together with a number of Replacement Engines equal to
the number of Engines, if any, with respect to which the Event of Loss occurred), such
Replacement Airframe and Replacement Engines to be owned by Company free and clear of all
Liens (other than Permitted Liens); provided that if Company has not performed such
obligation on or prior to the Loss Payment Date, then Company shall on the Loss Payment
Date redeem the Equipment Notes in full in accordance with Section 2.10; or

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     (ii) redeem, on or before the Loss Payment Date, the Equipment Notes in full in
accordance with Section 2.10. Company shall give Loan Trustee 20 days prior written notice
if it elects to redeem the Equipment Notes on any day prior to the Loss Payment Date.

     The “Loss Payment Date” with respect to an Event of Loss means the Business Day next
succeeding the 120th day following the date of occurrence of such Event of Loss.

     If Company elects to substitute a Replacement Airframe (or a Replacement Airframe and one or
more Replacement Engines, as the case may be) Company shall, at its sole expense, not later than
the Loss Payment Date, (A) cause an Indenture Supplement for such Replacement Airframe and
Replacement Engines, if any, to be delivered to Loan Trustee for execution and, upon such
execution, to be filed for recordation pursuant to the Transportation Code or the applicable laws
of such other jurisdiction in which the Aircraft is then registered, (B) cause the sale of
such Replacement Airframe and Replacement Engines, if any, to Company (if occurring after February
28, 2006 and if the seller of such Replacement Airframe and Replacement Engines, if any, is
“situated in” a country that has ratified the Cape Town Convention) and the International Interest
created pursuant to the Indenture Supplement in favor of Loan Trustee with respect to such
Replacement Airframe and Replacement Engines, if any, each to be registered on the International
Registry as a sale or an International Interest, respectively; provided that if the seller
of such Replacement Airframe and Replacement Engines, if any, is not situated in a country that has
ratified the Cape Town Convention, Company will use its best efforts to cause the seller to
register the contract of sale on the International Registry, (C) cause a financing
statement or statements with respect to the Replacement Airframe and Replacement Engines, if any,
or other requisite documents or instruments to be filed in such place or places as necessary in
order to perfect Loan Trustee’s interest therein in the United States, or in any other jurisdiction
in which the Aircraft is then registered, (D) furnish Loan Trustee with an opinion of
Company’s counsel (which may be internal counsel of Company) addressed to Loan Trustee to the
effect that upon such replacement, such Replacement Airframe and Replacement Engines, if any, will
be subject to the Lien of this Indenture and addressing the matters set forth in clauses (A), (B)
and (C), (E) furnish Loan Trustee with a certificate of an independent aircraft engineer or
appraiser, certifying that the Replacement Airframe and Replacement Engines, if any, have a value
and utility (without regard to hours or cycles) at least equal to the Airframe and Engines, if any,
so replaced, assuming the Airframe and such Engines were in the condition and repair required by
the terms hereof immediately prior to the occurrence of such Event of Loss, (F) furnish
Loan Trustee with evidence of compliance with the insurance provisions of Section 7.06 with respect
to such Replacement Airframe and Replacement Engines, if any, (G) furnish Loan Trustee with
a copy of the original bill of sale respecting such

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Replacement Airframe and a copy of the original bill of sale or, if the bill of sale is
unavailable, other evidence of ownership reasonably satisfactory to Loan Trustee (which may be a
copy of an invoice or purchase order) respecting such Replacement Engines, if any, and (H)
furnish Loan Trustee with an opinion of Company’s counsel (which may be internal counsel of
Company) reasonably satisfactory to Loan Trustee to the effect that Loan Trustee will be entitled
to the benefits of Section 1110 with respect to the Replacement Airframe; provided that
(i) such opinion need not be delivered to the extent that the benefits of Section 1110 were
not, by reason of a change in law or governmental or judicial interpretation thereof, available to
Loan Trustee with respect to the Aircraft immediately prior to such substitution and (ii)
such opinion may contain qualifications and assumptions of the tenor contained in the Section 1110
opinion of Company’s counsel delivered pursuant to Section 3.01 of the Participation Agreement on
the Closing Date and such other qualifications and assumptions as are at the time customary in
opinions rendered in comparable circumstances.

     In the case of each Replacement Airframe or Replacement Airframe and one or more Replacement
Engines subjected to the Lien of this Indenture under this Section 7.05(a), promptly upon the
recordation of the Indenture Supplement covering any such Replacement Airframe and Replacement
Engines, if any, pursuant to the Transportation Code (or pursuant to the applicable law of such
other jurisdiction in which such Replacement Airframe and Replacement Engines, if any, are
registered), Company will cause to be delivered to Loan Trustee a favorable opinion of FAA counsel
selected by Company if at the time of the Event of Loss the Aircraft was registered under the laws
of the United States (or, if at the time of the Event of Loss the Aircraft was registered under the
laws of another jurisdiction, counsel qualified to opine on matters of registration in such
jurisdiction selected by Company, which counsel shall be reasonably satisfactory to Loan Trustee)
addressed to Loan Trustee as to the due registration of such Replacement Aircraft and the due
recordation of such Indenture Supplement or such other requisite documents or instruments and the
validity and perfection of the security interest in the Replacement Aircraft granted to Loan
Trustee under this Indenture.

     For all purposes hereof, upon the attachment of the Lien of this Indenture thereto, the
Replacement Aircraft and Replacement Engines, if any, shall become part of the Collateral, the
Replacement Airframe shall be deemed an “Airframe” as defined herein, and each such
Replacement Engine shall be deemed an “Engine” as defined herein. Upon compliance with
clauses (A) through (H) of the third paragraph of this Section 7.05(a), Loan Trustee shall execute
and deliver to Company an appropriate instrument releasing such replaced Airframe and Engines (if
any) installed thereon at the time such Event of Loss occurred, all proceeds (including, without
limitation, insurance proceeds), the Warranty Rights in respect of such replaced Airframe and
Engines (if any) and all rights relating to the foregoing, from the Lien of this Indenture and
assigning to Company all claims against third Persons for damage to or loss of the Airframe and
Engines arising

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from the Event of Loss, and will take such actions as may be required to be taken by Loan
Trustee to cancel or release any International Interest of Loan Trustee registered with the
International Registry in relation to the replaced Airframe and replaced Engines, if any.

     If, after an Event of Loss, Company performs the option set forth in clause (ii) of the first
paragraph of this Section 7.05(a), Loan Trustee shall execute and deliver to Company an appropriate
instrument releasing the Aircraft, all proceeds (including, without limitation, insurance
proceeds), the Warranty Rights in respect of the Aircraft and all rights relating to the foregoing
from the Lien of this Indenture and assigning to Company all claims against third Persons for
damage to or loss of the Aircraft arising from the Event of Loss, and will take such actions as may
be required to be taken by Loan Trustee to cancel or release any International Interest of Loan
Trustee registered with the International Registry in relation to the Airframe and Engines, if any,
with respect to which such Event of Loss occurred.

     (b) Event of Loss with Respect to an Engine. As soon as practicable following the
occurrence of an Event of Loss with respect to an Engine under circumstances in which there has not
occurred an Event of Loss with respect to the Airframe, Company shall give Loan Trustee prompt
written notice thereof and shall, within 120 days after the occurrence of such Event of Loss, cause
to be subjected to the Lien of this Indenture, as replacement for the Engine with respect to which
such Event of Loss occurred, a Replacement Engine free and clear of all Liens (other than Permitted
Liens).

     Prior to or at the time of any replacement under this Section 7.05(b), Company will
(i) cause an Indenture Supplement covering such Replacement Engine to be delivered to Loan
Trustee for execution and, upon such execution, to be filed for recordation pursuant to the
Transportation Code or the applicable laws of any other jurisdiction in which the Aircraft is then
registered, (ii) furnish Loan Trustee with a copy of the original bill of sale or, if the
bill of sale is unavailable, other evidence of ownership reasonably satisfactory to Loan Trustee
(which may be a copy of an invoice or purchase order) respecting such Replacement Engine, which in
the case of any such conveyance to which the Cape Town Convention is applicable shall be in such
form as will qualify as “contract of sale” pursuant to Article V of the Aircraft Protocol, and all
documents required under the Operative Documents to establish, continue, confirm, register and/or
perfect the interests of Loan Trustee in such Replacement Engine, (iii) cause the sale of
such Replacement Engine to Company (if occurring after February 28, 2006 and if the seller of such
Replacement Engine is “situated in” a country that has ratified the Cape Town Convention) and the
International Interest created pursuant to the Indenture Supplement in favor of Loan Trustee with
respect to such Replacement Engine, each to

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be registered on the International Registry as a sale or an International Interest,
respectively; provided that if the seller of such Replacement Engine is not situated in a
country that has ratified the Cape Town Convention, Company will use its best efforts to cause the
seller to register the contract of sale on the International Registry, (iv) cause a
financing statement or statements with respect to such Replacement Engine or other requisite
documents or instruments to be filed in such place or places as necessary in order to perfect Loan
Trustee’s interest therein in the United States, or in such other jurisdiction in which the Engine
is then registered, (v) furnish Loan Trustee with an opinion of Company’s counsel (which
may be internal counsel to Company) addressed to Loan Trustee to the effect that, upon such
replacement, the Replacement Engine will be subject to the Lien of this Indenture, (vi)
furnish Loan Trustee with a certificate of an aircraft engineer or appraiser (who may be an
employee of Company) certifying that such Replacement Engine has a value and utility (without
regard to hours or cycles) at least equal to the Engine so replaced assuming such Engine was in the
condition and repair required by the terms hereof immediately prior to the occurrence of such Event
of Loss and (vii) furnish Loan Trustee with evidence of compliance with the insurance
provisions of Section 7.06 with respect to such Replacement Engine. In the case of each
Replacement Engine subjected to the Lien of this Indenture under this Section 7.05(b), promptly
upon the recordation of the Indenture Supplement covering such Replacement Engine pursuant to the
Transportation Code (or pursuant to the applicable law of such other jurisdiction in which the
Aircraft is registered), Company will cause to be delivered to Loan Trustee an opinion of FAA
counsel selected by Company if at the time of the Event of Loss the Aircraft was registered under
the laws of the United States (or, if at the time of the Event of Loss the Aircraft was registered
under the laws of another jurisdiction, counsel qualified to opine on matters of registration in
such jurisdiction selected by Company, which counsel shall be reasonably satisfactory to Loan
Trustee) addressed to Loan Trustee as to the due recordation of such Indenture Supplement or such
other requisite documents or instruments, the registration with the International Registry of the
sale of such Replacement Engine to Company (if occurring after February 28, 2006) and of the
International Interest created pursuant to the Indenture Supplement with respect to such
Replacement Engine and the validity and perfection of the security interest in the Replacement
Engine granted to Loan Trustee under this Indenture. For all purposes hereof, upon the attachment
of the Lien of this Indenture thereto, the Replacement Engine shall become part of the Collateral
and shall be deemed an “Engine” as defined herein. Upon compliance with clauses (i)
through (vii) of the first sentence of this paragraph, Loan Trustee shall execute and deliver to
Company an appropriate instrument releasing such replaced Engine, any proceeds (including, without
limitation, insurance proceeds), the Warranty Rights in respect of such replaced Engine and all
rights relating to any of the foregoing from the Lien of this Indenture and assigning to Company
all claims against third Persons for damage to or loss of such Engine arising from the Event of
Loss, and will take such actions as may be required to be taken by Loan Trustee to cancel or
release any International Interest of Loan Trustee

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registered with the International Registry in relation to the Engines with respect to which such Event of
Loss occurred.

     (c) Application of Payments for Event of Loss from Requisition of Title or Use. Any
payments other than insurance proceeds (the application of which is provided for in Section 7.06)
received at any time by Company or by Loan Trustee from any government or other Person with respect
to an Event of Loss to the Airframe or any Engine, will be applied as follows:

     (i) if such payments are received with respect to the Airframe or the Airframe and any
Engines installed on the Airframe that has been or is being replaced by Company pursuant to
Section 7.05(a), such payments shall be paid over to, or retained by, Loan Trustee and upon
completion of such replacement shall be paid over to, or retained by, Company;

     (ii) if such payments are received with respect to the Airframe or the Airframe and
any Engines installed on the Airframe that has not been and will not be replaced pursuant
to Section 7.05(a), so much of such payments remaining after reimbursement of Loan Trustee
for costs and expenses that shall not exceed the amounts required to be paid to Noteholders
pursuant to Section 2.10 shall be applied in reduction of Company’s obligation to pay such
amounts, if not already paid by Company, or, if already paid by Company, shall be applied
to reimburse Company for its payment of such amount and the balance, if any, of such
payment remaining thereafter will be paid over to, or retained by, Company; and

     (iii) if such payments are received with respect to an Engine with regard to which an
Event of Loss has occurred, so much of such payments remaining after reimbursement of Loan
Trustee for costs and expenses shall be paid over to, or retained by, Company;
provided that Company has fully performed its obligations under Section 7.05(b)
with respect to the Event of Loss for which such payments are made.

     (d) Requisition for Use by the Government of the Airframe and the Engines Installed
Thereon. In the event of the requisition for use or hire by any government (it being
acknowledged that the use of the Airframe or any Engine pursuant to the CRAF Program does not
constitute such a requisition or hire) of the Airframe and the Engines or engines installed on the
Airframe that does not constitute an Event of Loss, all of Company’s rights and obligations under
this Indenture with respect to the Airframe and such Engines shall continue to the same extent as
if such requisition or hire had not

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occurred; provided that, notwithstanding the foregoing, Company’s obligations other
than payment obligations shall only continue to the extent feasible. All payments received by
Company or Loan Trustee from such government for such requisition of the Airframe and Engines or
engines shall be paid over to, or retained by, Company.

     (e) Requisition for Use by the Government of an Engine not Installed on the Airframe.
If any government requisitions the use or hire (it being acknowledged that the use of the Airframe
or any Engine pursuant to the CRAF Program does not constitute such a requisition), for a period in
excess of sixty (60) days, of any Engine not then installed on the Airframe, Company will replace
such Engine by complying with the terms of Section 7.05(b) to the same extent as if an Event of
Loss had occurred with respect to such Engine. Upon such replacement, any payments received by
Company or Loan Trustee from such government with respect to such requisition shall be paid over
to, or retained by, Company.

     (f) Application of Payments During Existence of Event of Default. Any amount referred
to in Section 7.05 that is payable to or retainable by Company shall not be paid to or retained by
Company if at the time of such payment or retention an Event of Default or Payment Default has
occurred and is continuing, but shall be held by or paid over to Loan Trustee as security for the
obligations of Company under this Indenture and the Participation Agreement. When any such Event
of Default or Payment Default ceases, such amount shall be paid to Company.

     Section 7.06 Insurance.

     (a) Aircraft Liability Insurance.

     (i) Except as provided in clause (ii) of this Section 7.06(a), and subject to the
rights of Company to establish and maintain self-insurance in the manner and to the extent
specified in Section 7.06(d), Company will carry, or cause to be carried, at no expense to
Loan Trustee, aircraft liability insurance (including, but not limited to, passenger,
contractual, bodily injury, personal injury and property damage liability (exclusive of
manufacturer’s product liability insurance and war risk, hijacking and related perils
insurance)) with respect to the Aircraft that is of the type as from time to time
applicable to aircraft operated by Company (or, if a Lease in respect of the Aircraft is
then in effect, by Permitted Lessee) of the same type as the Aircraft (A) in
amounts that are not less than the aircraft liability insurance applicable to similar
aircraft and engines in Company’s fleet on which Company carries insurance and operated by
Company on the same

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or similar routes as operated by the Aircraft; provided that such liability
insurance shall not be less than the amount (the “Minimum Insurance Amount”)
certified in the insurance report delivered to Loan Trustee and each Liquidity Provider on
the Closing Date, and (B) that is maintained in effect with insurers of recognized
responsibility. Any policies of insurance carried in accordance with this Section 7.06(a)
and any policies taken out in substitution or replacement for any of such policies shall:
(1) name Loan Trustee, Subordination Agent, each Pass Through Trustee and each
Liquidity Provider as their Interests (defined below in this Section 7.06) may appear, as
additional insureds (the “Additional Insureds”), (2) subject to the
conditions of clause (3) below, provide that, in respect of the interest of each Additional
Insured in such policies, the insurance shall not be invalidated by any action or inaction
of Company, any Permitted Lessee, or any other insured (other than such Additional Insured)
and shall insure each Additional Insured’s Interests as they appear, regardless of any
breach or violation of any warranty, declaration or condition contained in such policies by
Company, any Permitted Lessee or any other insured (other than such Additional Insured),
(3) provide that, if such insurance is canceled for any reason, or if any change is
made in the insurance that materially reduces the amount of insurance or the coverage
certified in the insurance report delivered on the Closing Date to Loan Trustee and each
Liquidity Provider, or if such insurance is canceled for nonpayment of premium, such
cancellation or change shall not be effective as to any Additional Insured for 30 days
after receipt by such Additional Insured of written notice from such insurers of such
cancellation or change, (4) provide that the Additional Insureds shall have no
obligation or liability for premiums, commissions, assessments or calls in connection with
such insurance, (5) provide that the insurers shall waive any rights of (x)
set-off, counterclaim or any other deduction, whether by attachment or otherwise, in
respect of any liability of the Additional Insureds to the extent of any moneys due to the
Additional Insureds and (y) subrogation against the Additional Insureds to the
extent that Company has waived its rights by its agreements to indemnify the Additional
Insureds pursuant to the Operative Documents, (6) be primary without right of
contribution from any other insurance carried by any Additional Insured with respect to its
Interests as such in the Aircraft and (7) expressly provide that all of the
provisions thereof, except the limits of liability, shall operate in the same manner as if
there were a separate policy covering each insured. “Interests” as used in this
Section 7.06(a) and in Sections 7.06(b) and 7.06(c) with respect to any Person means the
interests of such Person in the transactions contemplated by the Operative Documents.

     (ii) During any period that the Airframe or an Engine, as the case may be, is on the
ground and not being flown, Company may carry or cause to be carried as to such non-flown
Airframe or Engine, in lieu of the insurance required

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by clause (i) above, and subject to self-insurance to the extent permitted by Section
7.06(d) below, insurance otherwise conforming with the provisions of said clause (i) except
that: (A) the amounts of coverage shall not be required to exceed the amounts of
airline liability insurance from time to time applicable to airframes or engines owned or
leased by Company (or, if a Lease is then in effect, by the Permitted Lessee) of the same
type as such non-flown Airframe or Engine and that are on the ground and not being flown
and (B) the scope of the risks covered and the type of insurance shall be the same
as from time to time are applicable to airframes or engines operated by Company (or, if a
Lease is then in effect, by the Permitted Lessee) of the same type as such non-flown
Airframe or Engine and that are on the ground and not being flown.

     (b) War Risk, Hijacking and Related Perils Liability Insurance. If the Aircraft, the
Airframe or any Engine is being operated in any war zone or area of recognized or, in Company’s
judgment, threatened hostilities, then Company shall maintain or cause to be maintained war risk,
hijacking and related perils liability insurance (x) in an amount that is not less than the
aircraft liability insurance applicable to similar aircraft and engines in Company’s fleet on which
Company carries insurance and operated by Company (or if a Lease is then in effect, in the
Permitted Lessee’s fleet on which such Permitted Lessee carries insurance and operated by such
Permitted Lessee) on the same or similar routes as the Aircraft, the Airframe or such Engine;
provided that such liability insurance shall not be less than the Minimum Insurance Amount,
(y) that is maintained in effect with insurers of recognized responsibility, and
(z) which shall cover the perils set forth in the insurance policies maintained in
connection with the CRAF Program (as such insurance policies maintained in connection with the CRAF
Program may be amended from time to time). Except with respect to any war risk, hijacking or
related perils liability insurance maintained on any aircraft owned or operated by Company in
connection with the CRAF Program, if war risk, hijacking or related perils liability insurance is
maintained by Company (or if a Lease is then in effect, by the Permitted Lessee) with respect to
any aircraft owned or operated by Company (or such Permitted Lessee, as the case may be) of the
same or similar type operated by Company (or such Permitted Lessee, as the case may be) on the same
or similar routes as operated by the Aircraft, the Airframe or such Engine, then Company shall
maintain or cause to be maintained with respect to the Aircraft war risk, hijacking and related
perils liability insurance in scope and coverage no less comprehensive, in an amount not less than
the insurance maintained by Company (or such Permitted Lessee, as the case may be) with respect to
such other aircraft, and with insurers of recognized responsibility. Any policies of insurance
carried in accordance with this Section 7.06(b) and any policies taken out in substitution or
replacement for any of such policies shall: (1) name Loan Trustee, Subordination Agent,
each Pass Through Trustee and each Liquidity Provider as their Interests may appear, as Additional
Insureds, (2) subject to the conditions of clause (3) below (other than the exception set
forth therein), provide that, in respect of the

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interest of each Additional Insured in such policies, the insurance shall not be invalidated
by any action or inaction of Company, any Permitted Lessee, or any other insured (other than such
Additional Insured) and shall insure each Additional Insured’s Interests as they appear, regardless
of any breach or violation of any warranty, declaration or condition contained in such policies by
Company, any Permitted Lessee, or any other insured (other than such Additional Insured),
(3) provide that, except to the extent not provided for by Company’s war risk and allied
perils insurance provider, if such insurance is canceled for any reason, or if any change is made
in the insurance that materially reduces the amount of insurance or the coverage certified in the
insurance report delivered on or prior to the Closing Date to Loan Trustee and each Liquidity
Provider or, if such insurance is canceled for nonpayment of premium, such cancellation or change
shall not be effective as to any Additional Insured for seven days (or such other period as is then
generally available in the industry) after receipt by such Additional Insured of written notice
from such insurers of such cancellation or change, (4) provide that the Additional Insureds
shall have no obligation or liability for premiums, commissions, assessments or calls in connection
with such insurance, (5) provide that the insurers shall waive any rights of (x)
set-off, counterclaim or any other deduction, whether by attachment or otherwise, in respect of any
liability of the Additional Insureds to the extent of any moneys due to the Additional Insureds and
(y) subrogation against the Additional Insureds to the extent that Company has waived its
rights by its agreements to indemnify the Additional Insureds pursuant to the Operative Documents,
(6) be primary without right of contribution from any other insurance carried by any
Additional Insured with respect to its Interests as such in the Aircraft and (7) expressly
provide that all of the provisions thereof, except the limits of liability, shall operate in the
same manner as if there were a separate policy covering each insured. To the extent that Company’s
war risk and allied perils insurance provider does not provide for provision of direct notice to
Additional Insureds of cancellation or change in the insurance required hereunder, Company hereby
agrees that upon receipt of notice of any thereof from such insurance provider it shall give the
Additional Insureds immediate notice of each cancellation or change to such insurance.

     (c) Insurance Against Loss or Damage to Aircraft.

     (i) Except as provided in clause (ii) of this Section 7.06(c), and subject to the
rights of Company to establish and maintain self-insurance in the manner and to the extent
specified in Section 7.06(d) below, Company shall maintain, or cause to be maintained, in
effect with insurers of recognized responsibility, at no expense to Loan Trustee, all-risk
aircraft hull insurance covering the Aircraft and all-risk coverage with respect to any
Engines or Parts while removed from the Aircraft (including, but not limited to, war risk
insurance, if and to the extent the same is maintained by Company (or, if a Lease is then
in effect, by the Permitted Lessee) with respect to other similar aircraft operated by
Company or such Permitted Lessee, as the case may be, on the same routes) that

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is of the type as from time to time applicable to aircraft operated by Company (or, if
a Lease is then in effect, by the Permitted Lessee) of the same type as the Aircraft;
provided that (A) such insurance (including the permitted self-insurance)
shall at all times while the Aircraft is subject to this Indenture be for an amount not
less than 110% of the aggregate principal amount of the Equipment Notes outstanding from
time to time, (B) such insurance need not cover an Engine while attached to an
airframe not owned, leased or operated by Company, and (C) such insurance covering
Engines and Parts removed from an Airframe or an airframe or (in the case of Parts) an
Engine need be obtained only to the extent available at reasonable cost (as reasonably
determined by Company). Any policies carried in accordance with this Section 7.06(c) and
any policies taken out in substitution or replacement for any such policies shall:
(1) provide that any insurance proceeds up to an amount equal to the outstanding
principal amount of the Equipment Notes, together with accrued but unpaid interest thereon,
plus an amount equal to the interest that would accrue on the outstanding principal amount
of the Equipment Notes at the Debt Rate in effect on the date of payment of such insurance
proceeds to Loan Trustee (as provided for in this sentence) during the period commencing on
the day following the date of such payment to Loan Trustee and ending on the Loss Payment
Date (the sum of such three amounts being the “Loan Amount”), payable for any loss
or damage constituting an Event of Loss with respect to the Aircraft and any insurance
proceeds in excess of the Insurance Threshold up to an amount equal to the Loan Amount for
any loss or damage to the Aircraft (or Engines) not constituting an Event of Loss with
respect to the Aircraft (or Engines), shall be paid to Loan Trustee as long as the
Indenture has not been discharged, and that all other amounts shall be paid to Company,
unless the insurer has received notice that an Event of Default exists, in which case all
insurance proceeds for any loss or damage to the Aircraft (or Engines) up to an amount
equal to the Loan Amount shall be payable to Loan Trustee, (2) subject to the
conditions of clause (C) below (other than the exception set forth therein), provide that,
in respect of the interest of each Additional Insured in such policies, the insurance shall
not be invalidated by any action or inaction of Company, any Permitted Lessee, or any other
insured (other than such Additional Insured) and shall insure each Additional Insured’s
Interests as they appear, regardless of any breach or violation of any warranty,
declaration or condition contained in such policies by Company, any Permitted Lessee or any
other insured (other than such Additional Insured), (3) provide that, except to the
extent not provided for by Company’s hull war risk and allied perils insurance provider, if
such insurance is canceled for any reason, or if any change is made in the insurance that
materially reduces the coverage (not including the amount) certified in the insurance
report delivered on the Closing Date to Loan Trustee, and each Liquidity Provider or, if
such insurance is canceled for nonpayment of premium, such cancellation or change shall not
be effective as to the Additional Insureds for 30 days (seven days, or such other period as
is then customary in the

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industry, in the case of war risk or allied perils coverage) after receipt by the
Additional Insureds of written notice from such insurers of such cancellation or change,
(4) provide that the Additional Insureds shall have no obligation or liability for
premiums, commissions, assessments or calls in connection with such insurance, (5)
provide that the insurers shall waive rights of (x) setoff, counterclaim or any
other deduction, whether by attachment or otherwise, in respect of any liability of the
Additional Insureds to the extent of any moneys due to the Additional Insureds and
(y) subrogation against the Additional Insureds to the extent Company has waived
its rights by its agreement to indemnify the Additional Insureds pursuant to the Operative
Documents, and (6) be primary without right of contribution from any other
insurance carried by any Additional Insured with respect to its Interests as such in the
Aircraft. To the extent that Company’s war risk and allied perils insurance provider does
not provide for provision of direct notice to Additional Insureds of cancellation or change
in the insurance required hereunder, Company hereby agrees that upon receipt of notice of
any thereof from such insurance provider it shall give the Additional Insureds immediate
notice of each cancellation or change to such insurance.

     (ii) During any period that the Airframe or an Engine, as the case may be, is on the
ground and not being flown, Company may carry or cause to be carried as to such non-flown
Airframe or Engine, in lieu of the insurance required by clause (i) above, and subject to
self-insurance to the extent permitted by Section 7.06(d) below, insurance otherwise
conforming with the provisions of said clause (i) except that the scope of the risks
covered and the type of insurance shall be the same as from time to time are applicable to
airframes and engines operated by Company (or, if a Lease is then in effect, by the
Permitted Lessee) of the same type as such non-flown Airframe or Engine and that are on the
ground and not being flown; provided that, subject to self-insurance to the extent
permitted by Section 7.06(d) below, Company shall maintain or cause to be maintained
insurance against risk of loss or damage to such non-flown Airframe or Engine in an amount
at least equal to 110% of the aggregate outstanding principal amount of the Equipment Notes
during such period that such Airframe or Engine is on the ground and not being flown.

     (d) Self-Insurance. Company may from time to time self-insure, by way of deductible,
self-insured retention, premium adjustment or franchise or otherwise (including, with respect to
insurance maintained pursuant to Sections 7.06(a), 7.06(b) or 7.06(c), insuring for a maximum
amount that is less than the amounts set forth in Sections 7.06(a), 7.06(b) and 7.06(c) above), the
risks required to be insured against pursuant to Sections 7.06(a), 7.06(b) and 7.06(c) above, but
in no case shall the self-insurance with respect to all of the aircraft and engines in the combined
fleet of Company and its Affiliates (including, without limitation, the Aircraft) exceed for any
12-month

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policy year 1.0% of the average aggregate insurable value (during the preceding policy year)
of all aircraft (including, without limitation, the Aircraft) on which Company and its Affiliates
carry insurance, unless an insurance broker of national standing certifies that the standard among
other major United States airlines is a higher level of self-insurance, in which case Company may
self-insure the Aircraft to such higher level; provided that (1) any deductible per
occurrence that, in the case of the Aircraft, is not in excess of the amount customarily allowed as
a deductible in the industry or is required to facilitate claims handling or (2) any
applicable mandatory minimum per aircraft (or if applicable per annum or other period) hull or
liability insurance deductibles imposed by the aircraft hull or liability insurers shall be
permitted in addition to the above-mentioned self-insurance.

     (e) Indemnification by United States Government in Lieu of Insurance. Notwithstanding
any provision of this Section 7.06 requiring insurance, in lieu of insurance against any risk with
respect to the Aircraft, indemnification from, or insurance provided by, the United States
government, or any agency or instrumentality thereof, against such risk in an amount which, when
added to the amount of insurance maintained against such risk by Company (or, if a Lease is then in
effect, by the Permitted Lessee), shall be at least equal to the amount of insurance against such
risk otherwise required by this Section 7.06 (taking into account self-insurance permitted by
Section 7.06(d)) shall be considered adequate insurance for purposes of this Section 7.06.

     (f) Application of Insurance Payments. All losses will be adjusted by Company with
the insurers. As between Loan Trustee and Company it is agreed that all insurance payments
received under policies required to be maintained by Company hereunder, exclusive of any payments
received in excess of the Loan Amount for the Aircraft from such policies, as the result of the
occurrence of an Event of Loss with respect to the Airframe or an Engine will be applied as
follows:

     (i) if such payments are received with respect to the Airframe or the Airframe and any
Engines installed on the Airframe that has been or is being replaced by Company pursuant to
Section 7.05(a), such payments shall be paid over to, or retained by, Loan Trustee and upon
completion of such replacement shall be paid over to, or retained by, Company;

     (ii) if such payments are received with respect to the Airframe or the Airframe and
any Engines installed on the Airframe that has not been and will not be replaced as
contemplated by Section 7.05(a), so much of such payments remaining, after reimbursement of
Loan Trustee for its costs and expenses, as do not exceed the amounts required to be paid
by Company pursuant to Section 2.10

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shall be applied in reduction of Company’s obligation to pay such amounts, if not
already paid by Company, or, if already paid by Company, shall be applied to reimburse
Company for its payment of such amounts, and the balance, if any, of such payment remaining
thereafter will be paid over to, or retained by, Company; and

     (iii) if such payments are received with respect to an Engine, so much of such
payments remaining after reimbursement of Loan Trustee for its costs and expenses shall be
paid over to, or retained by, Company; provided that Company has fully performed
its obligations under Section 7.05(b) with respect to the Event of Loss for which such
payments are made.

     In all events, the insurance payment of any property damage or loss received under policies
maintained by Company in excess of the Loan Amount for the Aircraft shall be paid to Company.

     The insurance payments for any loss or damage to the Airframe or an Engine not constituting an
Event of Loss with respect to the Airframe or such Engine will be applied in payment (or to
reimburse Company) for repairs or for replacement property in accordance with the terms of Sections
7.02 and 7.04, and any balance remaining after compliance with such Sections with respect to such
loss or damage shall be paid to Company. Any amount referred to in the preceding sentence or in
clause (i) or (ii) of the first paragraph of this Section 7.06(f) that is payable to Company shall
not be paid to Company (or, if it has been previously paid directly to Company, shall not be
retained by Company) if at the time of such payment an Event of Default or Payment Default has
occurred and is continuing, but shall be paid to and held by Loan Trustee as security for the
obligations of Company under this Indenture and the other Operative Documents and shall be invested
pursuant to Section 5.06 unless and until such amount is applied, at the option of Loan Trustee, to
Company’s obligations under this Indenture and the other Operative Documents as and when due, it
being understood that any such application shall be made to such obligations of Company as Loan
Trustee may determine in its sole discretion. At such time as there shall be continuing no Event
of Default or Payment Default, such amount shall be paid to Company to the extent not previously
applied in accordance with this Section 7.06(f).

     (g) Reports, Etc. On or before the Closing Date and annually following renewal of
Company’s insurance coverage, Company will furnish to Loan Trustee and each Liquidity Provider
current certificates of insurance and a report signed by a firm of independent aircraft insurance
brokers appointed by Company (which brokers may be in the regular employ of Company), stating the
opinion of such firm that the insurance then

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carried and maintained on the Aircraft complies with the terms hereof. All information
contained in such report shall be Confidential Information and shall be treated by Loan Trustee and
each Liquidity Provider and each of their Affiliates and their respective officers, directors,
agents and employees in accordance with the provisions of Section 10.16. Company will cause such
firm to notify Loan Trustee and each Liquidity Provider of any act or omission on the part of
Company of which such firm has knowledge that might invalidate or render unenforceable, in whole or
in part, any insurance on the Aircraft. Company will also cause such firm to notify Loan Trustee
and each Liquidity Provider as promptly as practicable after such firm acquires knowledge that a
cancellation of any insurance carried and maintained on the Aircraft pursuant to this Section 7.06
will occur. Such information may only be provided to other Persons in accordance with Section
10.16.

     In the event that Company shall fail to maintain or to cause to be maintained insurance as
herein provided, Loan Trustee may at its option obtain such insurance (giving Company prompt
written notice thereof, but the failure to so notify Company shall not in any way affect the rights
of Loan Trustee hereunder) and, in such event, Company shall, upon demand, reimburse Loan Trustee
for the cost to Loan Trustee of such insurance, together with interest thereon at the Past Due Rate
for the period commencing with the date such cost was paid to the date of reimbursement;
provided, however, that no exercise by Loan Trustee of said option shall affect the
provisions of this Indenture, including the provisions that failure by Company to maintain the
prescribed insurance shall constitute an Event of Default.

     (e) Salvage Rights; Other. All salvage rights to the Airframe and each Engine shall
remain with Company’s insurers at all times, and any insurance policies of Loan Trustee insuring
the Airframe or any Engine shall provide for a release to Company of any and all salvage rights in
and to the Airframe or any Engine. Neither Loan Trustee nor any Noteholder may, directly or
indirectly, obtain insurance for its own account with respect to the Airframe or any Engine if such
insurance would limit or otherwise adversely affect the coverage or amounts payable under, or
increase the premiums for, any insurance required to be maintained pursuant to this Section 7.06 or
any other insurance maintained with respect to the Aircraft or any other aircraft in Company’s
fleet.

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ARTICLE VIII

Successor and Additional Trustees

     Section 8.01 Resignation or Removal; Appointment of Successor.

     (a) The resignation or removal of Loan Trustee and the appointment of a successor Loan Trustee
shall become effective only upon the successor Loan Trustee’s acceptance of appointment as provided
in this Section 8.01. Loan Trustee or any successor thereto must resign if at any time it ceases
to be eligible in accordance with the provisions of Section 8.01(c) and may resign at any time
without cause by giving at least 60 days’ prior written notice to Company and each Noteholder. In
addition, either Company (so long as no Event of Default or Payment Default shall have occurred and
be continuing) or a Majority in Interest of Noteholders (but only with the consent of Company so
long as no Event of Default or Payment Default shall have occurred and be continuing), may at any
time remove Loan Trustee without cause by an instrument in writing delivered to Loan Trustee and
each Noteholder, and, in case of a removal by a Majority in Interest of Noteholders, to Company.
In the case of the resignation or removal of Loan Trustee, Company shall promptly appoint a
successor Loan Trustee. If a successor Loan Trustee has not been appointed within 60 days after
such notice of resignation or removal, Loan Trustee, Company or any Noteholder may apply to any
court of competent jurisdiction to appoint a successor Loan Trustee to act until such time, if any,
as a successor is appointed as above provided. The successor Loan Trustee so appointed by such
court shall immediately and without further act be superseded by any successor Loan Trustee
appointed as above provided.

     (b) Any successor Loan Trustee, however appointed, shall execute and deliver to the
predecessor Loan Trustee and Company an instrument accepting such appointment and assuming the
obligations of Loan Trustee arising from and after the time of such appointment, and thereupon such
successor Loan Trustee, without further act, shall become vested with all the estates, properties,
rights, powers and duties of the predecessor Loan Trustee in the trust hereunder applicable to it
with like effect as if originally named Loan Trustee herein; but nevertheless upon the written
request of such successor Loan Trustee, such predecessor Loan Trustee shall execute and deliver an
instrument transferring to such successor Loan Trustee all the estates, properties, rights and
powers of such predecessor Loan Trustee, and such predecessor Loan Trustee shall duly assign,
transfer, deliver and pay over to such successor Loan Trustee all monies or other property and all
other books and records, or true, correct and complete copies thereof, then held by such
predecessor Loan Trustee.

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     (c) This Indenture shall at all times have a Loan Trustee, however appointed, that is a
Citizen of the United States (without the use of a voting trust) and a bank or trust company having
a combined capital and surplus of at least $100,000,000 (or a combined capital and surplus in
excess of $5,000,000 and the obligations of which, whether now in existence or hereafter incurred,
are fully and unconditionally guaranteed by a corporation organized and doing business under the
laws of the United States or any state or territory thereof or the District of Columbia and having
a combined capital and surplus of at least $100,000,000) or a corporation with a net worth of at
least $100,000,000, if there be such an institution willing, able and legally qualified to perform
the duties of Loan Trustee upon reasonable or customary terms. If such bank, trust company or
corporation publishes reports of conditions at least annually, pursuant to law or to the
requirements of federal, state, territorial or District of Columbia supervising or examining
authority, then for the purposes of this Section 8.01(c) the combined capital and surplus of such
bank, trust company or corporation shall be deemed to be its combined capital and surplus as set
forth in its most recent report of conditions so published. In case at any time Loan Trustee
ceases to be eligible in accordance with the provisions of this Section 8.01(c), Loan Trustee shall
resign immediately in the manner and with the effect specified in Section 8.01(a).

     (d) Any bank, trust company or corporation into which Loan Trustee may be merged or converted
or with which it may be consolidated, or any bank, trust company or corporation resulting from any
merger, conversion or consolidation to which Loan Trustee is a party, or any bank, trust company or
corporation to which substantially all the corporate trust business of Loan Trustee may be
transferred, shall, subject to the terms of Section 8.01(c), be a successor Loan Trustee under this
Indenture without further act.

     Section 8.02 Appointment of Additional and Separate Trustees.

     (a) Whenever (i) Loan Trustee deems it necessary or desirable in order to conform to
any law of any jurisdiction in which all or any part of the Collateral is situated or to make any
claim or bring any suit with respect to or in connection with the Collateral, any Operative
Document or any of the transactions contemplated by the Operative Documents, (ii) Loan
Trustee shall be advised by counsel satisfactory to it that it is necessary or prudent in the
interests of Noteholders (and Loan Trustee shall so advise Company) or (iii) Loan Trustee
has been requested to do so by a Majority in Interest of Noteholders, then in any such case, Loan
Trustee and, upon the written request of Loan Trustee, Company, shall execute and deliver an
indenture supplemental hereto and such other, instruments as from time to time are necessary or
advisable either (1) to constitute one or more banks or trust companies or corporations
meeting the requirements of Section 8.01(c) and approved by Loan Trustee, either to act jointly
with Loan Trustee as additional trustee or trustees of all or any part of the Collateral or to act
as separate

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trustee or trustees of all or any part of the Collateral, in each case with such rights,
powers, duties and obligations consistent with this Indenture as is provided in such supplemental
indenture or other instruments as Loan Trustee or a Majority in Interest of Noteholders deems
necessary or advisable, or (2) to clarify, add to or subtract from the rights, powers,
duties and obligations theretofore granted any such additional or separate trustee, subject in each
case to the remaining provisions of this Section 8.02. If no Event of Default has occurred and is
continuing, no additional or supplemental trustee shall be appointed without Company’s consent. If
an Event of Default shall have occurred and be continuing, Loan Trustee may act under the foregoing
provisions of this Section 8.02(a) without the concurrence of Company, and, to the extent permitted
by applicable law, Company hereby irrevocably appoints (which appointment is coupled with an
interest) Loan Trustee as its agent and attorney-in-fact to act for it under the foregoing
provisions of this Section 8.02(a). Loan Trustee may, in such capacity, execute, deliver and
perform any such supplemental indenture, or any such instrument, as may be required for the
appointment of any such additional or separate trustee or for the clarification of, addition to or
subtraction from the rights, powers, duties or obligations theretofore granted to any such
additional or separate trustee, subject in each case to the remaining provisions of this Section
8.02. In case any additional or separate trustee appointed under this Section 8.02(a) becomes
incapable of acting, resigns or is removed, all the assets, property, rights, powers, trusts,
duties and obligations of such additional or separate trustee shall revert to Loan Trustee until a
successor additional or separate trustee is appointed as provided in this Section 8.02(a).

     (b) No additional or separate trustee shall be entitled to exercise any of the rights, powers,
duties and obligations conferred upon Loan Trustee in respect of the custody, investment and
payment of monies and all monies received by any such additional or separate trustee from or
constituting part of the Collateral or otherwise payable under any Operative Documents to Loan
Trustee shall be promptly paid over by it to Loan Trustee. All other rights, powers, duties and
obligations conferred or imposed upon any additional or separate trustee shall be exercised or
performed by Loan Trustee and such additional or separate trustee jointly except to the extent that
applicable law of any jurisdiction in which any particular act is to be performed renders Loan
Trustee incompetent or unqualified to perform such act, in which event such rights, powers, duties
and obligations (including the holding of title to all or part of the Collateral in any such
jurisdiction) shall be exercised and performed by such additional or separate trustee. No
additional or separate trustee shall take any discretionary action except on the instructions of
Loan Trustee or a Majority in Interest of Noteholders. No trustee hereunder shall be personally
liable by reason of any act or omission of any other trustee hereunder, except that Loan Trustee
shall be liable for the consequences of its lack of reasonable care in selecting, and Loan
Trustee’s own actions in acting with, any additional or separate trustee. Each additional or
separate trustee appointed pursuant to this Section 8.02 shall be subject to, and shall have the
benefit of Articles IV, V, VI, VIII,

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IX and X insofar as they apply to Loan Trustee. The powers of any additional or separate
trustee appointed pursuant to this Section 8.02 shall not in any case exceed those of Loan Trustee.

     (c) If at any time Loan Trustee deems it no longer necessary or desirable or in the event that
Loan Trustee has been requested to do so in writing by a Majority in Interest of Noteholders, Loan
Trustee and, upon the written request of Loan Trustee, Company, shall execute and deliver an
indenture supplemental hereto and all other instruments and agreements necessary or proper to
remove any additional or separate trustee. Loan Trustee may act on behalf of Company under this
Section 8.02(c) when and to the extent it could so act under Section 8.02(a). In any case, Company
may remove an additional or separate trustee in the manner set forth in Section 8.01.

ARTICLE IX

Amendments and Waivers

     Section 9.01 Amendments to this Indenture without Consent of Holders. At any time
after the date hereof, Company may and Loan Trustee shall, at Company’s request, enter into one or
more agreements supplemental hereto and to amend the Equipment Notes without notice to or consent
of any Noteholder, Indenture Indemnitee or Related Indenture Indemnitee for any of the following
purposes: (i) to evidence the succession of another Person to Company and the assumption
by any such successor of the covenants of Company contained in any Operative Documents pursuant to
Section 6.02(e) of the Participation Agreement; (ii) to cure any defect or inconsistency
herein or in the Equipment Notes, or to make any change not inconsistent with the provisions hereof
(provided that such change does not adversely affect the interests of any Noteholder, any
Indenture Indemnitee or any Related Indenture Indemnitee in its capacity solely as Noteholder,
Indenture Indemnitee or Related Indenture Indemnitee, as the case may be); (iii) to cure
any ambiguity or correct any mistake; (iv) to evidence the succession of a new trustee
hereunder pursuant hereto or the removal of the trustee hereunder or to provide for or facilitate
the appointment of an additional or separate trustee pursuant to Section 8.02; (v) to
convey, transfer, assign, mortgage or pledge any property to or with Loan Trustee; (vi) to
make any other provisions or amendments with respect to matters or questions arising hereunder or
under the Equipment Notes, or to amend, modify or supplement any provision hereof or thereof, so
long as such action shall not adversely affect the interests of any Noteholder, any Indenture
Indemnitee or any Related Indenture Indemnitee in its capacity solely as Noteholder, Indenture
Indemnitee or Related Indenture Indemnitee, as the case may be; (vii) to correct,
supplement or amplify the description of any property at any time subject to the Lien of this
Indenture, or better to

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assure, convey and confirm unto Loan Trustee any property subject or required to be subject to
the Lien of this Indenture or to subject to the Lien of this Indenture the Airframe or Engines or
any Replacement Airframe or Replacement Engine; (viii) to add to the covenants of Company
for the benefit of Noteholders, Indenture Indemnitees or Related Indenture Indemnitees or to
surrender any rights or power herein conferred upon Company; (ix) to add to the rights of
Noteholders, Indenture Indemnitees or Related Indenture Indemnitees; (x) to include on the
Equipment Notes any legend as may be required by law or as otherwise necessary or advisable;
(xi) to comply with any applicable requirements of the Trust Indenture Act, or any other
requirements of applicable law or of any regulatory body; (xii) to give effect to the
replacement of Class A Liquidity Provider with a Replacement Liquidity Provider and the replacement
of the Class A Liquidity Facility with a Replacement Liquidity Facility therefor, and, if a
Replacement Liquidity Facility is to be comprised of more than one instrument as contemplated by
the definition of the term “Replacement Liquidity Facility” in the Intercreditor
Agreement, to incorporate appropriate mechanics for multiple Liquidity Facilities for a single Pass
Through Trust; (xiii) to give effect to the replacement of Depositary with a Replacement
Depositary (as defined in the Note Purchase Agreement) and the replacement of each Deposit
Agreement with a Replacement Deposit Agreement (as defined in the Note Purchase Agreement);
(xiv) to evidence the succession of a new escrow agent or a new paying agent under each
Escrow and Paying Agent Agreement pursuant thereto or the removal of the escrow agent or paying
agent thereunder; (xv) to provide for the issuance or successive redemption and issuance
from time to time of any Series B Equipment Notes (and any Related Series B Equipment Notes), and
for the issuance of pass through certificates by any pass through trust that acquires any such
Series B Equipment Notes (and Related Series B Equipment Notes) and to make changes relating to any
of the foregoing (including without limitation to provide for any prefunding mechanism in
connection therewith) and to provide for any credit support for any pass through certificates
relating to any such Series B Equipment Notes (and Related Series B Equipment Notes) (including,
without limitation, to secure claims for fees, interest, expenses, reimbursement of advances and
other obligations arising from such credit support (including, without limitation, to specify such
credit support as a “Liquidity Facility” and the “Class B Liquidity Facility” and the provider of
any such credit support as a “Liquidity Provider” and the “Class B Liquidity Provider” and, if the
Class B Liquidity Facility is to be comprised of more than one instrument, to incorporate
appropriate mechanics for multiple Liquidity Facilities for a single Pass Through Trust));
provided that such Series B Equipment Notes are issued in accordance with Section 4(a)(v)
of the Note Purchase Agreement, Section 2.02 of the Participation Agreement and Section 8.01(c) or
8.01(d) of the Intercreditor Agreement, as applicable; and (xvi) if any Class B Liquidity
Facility shall have been provided, to give effect to the replacement of any Class B Liquidity
Provider with any Replacement Liquidity Provider and the replacement of the Class B Liquidity
Facility with any Replacement Liquidity Facility therefor and, if applicable, to incorporate
appropriate mechanics for multiple Liquidity Facilities for a single Pass Through Trust.

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     Section 9.02 Amendments to this Indenture with Consent of Holders.

     (a) With the written consent of a Majority in Interest of Noteholders, Company may, and Loan
Trustee shall, subject to Section 9.06, at any time and from time to time, enter into such
supplemental agreements to add any provisions to or to change or eliminate any provisions of this
Indenture or of any such supplemental agreements or to modify in any manner the rights and
obligations of Company, Loan Trustee and Noteholders under this Indenture; provided that,
without the consent of each Noteholder affected thereby, an amendment under this Section 9.02 may
not:

     (1) reduce the principal amount of, Make-Whole Amount, if any, or interest on, any
Equipment Note;

     (2) change the date on which any principal amount of, Make-Whole Amount, if any, or
interest on any Equipment Note, is due or payable;

     (3) create any Lien with respect to the Collateral prior to or pari passu with the
Lien thereon under this Indenture except such as are permitted by this Indenture, or
deprive any Noteholder of the benefit of the Lien on the Collateral created by this
Indenture, except as provided in connection with the exercise of remedies under Article IV;
provided that, without the consent of each holder of an affected Related Equipment
Note then outstanding, no such amendment, waiver or modification of terms of, or consent
under, any thereof shall modify Section 3.03 or this clause (3) or deprive any Related
Noteholder of the benefit of the Lien of this Indenture on the Collateral, except as
provided in connection with the exercise of remedies under Article IV;

     (4) reduce the percentage of the outstanding principal amount of the Equipment Notes
the consent of whose holders is required for any such supplemental agreement, or the
consent of whose holders is required for any waiver of compliance with certain provisions
of this Indenture or of certain defaults hereunder or their consequences provided for in
this Indenture; or

     (5) make any change in Section 4.05 or this Section 9.02, except to provide that
certain other provisions of this Indenture cannot be modified or waived without the consent
of each Noteholder affected thereby.

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     Notwithstanding the foregoing, neither Company nor Loan Trustee shall enter into any
amendment, waiver or modification of, or supplement or consent to, this Indenture or any other
Operative Document other than the Participation Agreement (which is addressed in Section 9.03)
which shall reduce, modify or amend any indemnities in favor of any Liquidity Provider without the
consent of such Liquidity Provider that is subject to such reduction, modification or amendment.

     (b) It is not necessary under this Section 9.02 for Noteholders to consent to the particular
form of any proposed supplemental agreement, but it is sufficient if they consent to the substance
thereof.

     (c) Promptly after the execution by Company and Loan Trustee of any supplemental agreement
pursuant to the provisions of this Section 9.02, Loan Trustee shall transmit by first-class mail a
notice, setting forth in general terms the substance of such supplemental agreement, to all
Noteholders, as the names and addresses of such Noteholders appear on the Equipment Note Register.
Any failure of Loan Trustee to mail such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such supplemental agreement.

     Section 9.03 Amendments, Waivers, Etc. of the Participation Agreement. Without the
consent of a Majority in Interest of Noteholders, the respective parties to the Participation
Agreement may not modify, amend or supplement such agreement, or give any consent, waiver,
authorization or approval thereunder, for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions thereof or of modifying in any manner the rights of
the respective parties thereunder; provided that, without the consent of Loan Trustee, any
Noteholder, any other Indenture Indemnitee or any Related Indenture Indemnitee, the Participation
Agreement may be modified, amended or supplemented in order (i) to cure any defect or
inconsistency therein or to cure any ambiguity or correct any mistake, (ii) to amend,
modify or supplement any provision thereof or make any other provision with respect to matters or
questions arising thereunder or under this Indenture (provided that the making of any such
other provision shall not materially adversely affect the interests of Noteholders) or
(iii) to make any other change, or reflect any other matter, of the kind referred to in
clauses (i) through (xvi) of Section 9.01. Notwithstanding the foregoing, without the consent of
any Liquidity Provider, Company shall not enter into any amendment, waiver or modification of or
supplement or consent to the Participation Agreement which shall reduce, modify or amend any
indemnities in favor of such Liquidity Provider contained therein.

     Section 9.04 Revocation and Effect of Consents. Until an amendment or waiver becomes
effective, a consent to it by a Noteholder is a continuing consent by Noteholder

Indenture and Security Agreement (2011-1 EETC)
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and every subsequent Noteholder, even if notation of the consent is not made on any Equipment
Note.

     Section 9.05 Notation on or Exchange of Equipment Notes. Loan Trustee may place an
appropriate notation about an amendment or waiver on any Equipment Note thereafter executed. Loan
Trustee in exchange for such Equipment Notes may execute new Equipment Notes that reflect the
amendment or waiver.

     Section 9.06 Trustee Protected. If, in the reasonable opinion of the institution
acting as Loan Trustee, any document required to be executed by it pursuant to the terms of Section
9.01 or 9.02 adversely affects any right, duty, immunity or indemnity with respect to such
institution under this Indenture, such institution may in its discretion decline to execute such
document.

     Section 9.07 No Consent of Individual Indenture Indemnitees Required. Notwithstanding
anything in this Indenture or any other Operative Document to the contrary, when any provision
hereof or thereof would otherwise require a consent of an Indenture Indemnitee, such provision
shall always be construed to require only the consent of an Indenture Indemnitee other than any
Indenture Indemnitee covered by clause (ix) of the definition of “Indenture Indemnitees”.

ARTICLE X

Miscellaneous

     Section 10.01 Termination of Indenture. Subject to Section 7.05, upon (or at any time
after) payment in full of the principal amount of, Make-Whole Amount, if any, and interest on and
all other amounts due under all Equipment Notes and provided that (i) there shall then be
(x) no other Secured Obligations due to Noteholders, Loan Trustee and other Indenture
Indemnitees hereunder, under the Participation Agreement or any other Operative Document, and
(y) no Related Secured Obligations due under any Related Indenture or any other “Operative
Document” (as defined in any Related Indenture) and (ii) in the case of any redemption of
all of the Equipment Notes pursuant to Section 2.11(a), the provisions of the foregoing clause (i)
shall apply and no Related Indenture Bankruptcy Default or Related Indenture Event of Default shall
have occurred and be continuing, Company shall direct Loan Trustee to execute and deliver to or as
directed in writing by Company an appropriate instrument releasing the Aircraft and the Engines and
(subject to paragraph (vii) of clause “third” of Section 3.03, if applicable) all other Collateral
from the Lien of this Indenture and Loan Trustee shall execute and

Indenture and Security Agreement (2011-1 EETC)
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deliver such instrument as aforesaid; provided that this Indenture and the trusts
created hereby shall earlier terminate and this Indenture shall be of no further force or effect
upon any sale or other final disposition by Loan Trustee of all property constituting part of the
Collateral and the final distribution by Loan Trustee of all monies or other property or proceeds
constituting part of the Collateral in accordance with the terms hereof. Except as aforesaid
otherwise provided, this Indenture and the trusts created hereby shall continue in full force and
effect in accordance with the terms hereof.

     Section 10.02 No Legal Title to Collateral in Noteholders. No holder of an Equipment
Note or a Related Equipment Note shall have legal title to any part of the Collateral. No
transfer, by operation of law or otherwise, of any Equipment Note, Related Equipment Note or other
right, title and interest of any Noteholder or Related Noteholder in and to the Collateral or
hereunder shall operate to terminate this Indenture or entitle such holder or any successor or
transferee of such holder to an accounting or to the transfer to it of any legal title to any part
of the Collateral.

     Section 10.03 Sale of Aircraft by Loan Trustee is Binding. Any sale or other
conveyance of the Aircraft, the Airframe, any Engine or any interest therein by Loan Trustee made
pursuant to the terms of this Indenture shall bind Noteholders and Company and shall be effective
to transfer or convey all right, title and interest of Loan Trustee, Company and such Noteholders
in and to such Aircraft, Airframe, Engine or interest therein. No purchaser or other grantee shall
be required to inquire as to the authorization, necessity, expediency or regularity of such sale or
conveyance or as to the application of any sale or other proceeds with respect thereto by Loan
Trustee or Noteholders.

     Section 10.04 Indenture for Benefit of Company, Loan Trustee and Noteholders. Nothing
in this Indenture, whether express or implied, shall be construed to give any Person other than
Company, Noteholders, Loan Trustee, other Indenture Indemnitees, Related Loan Trustees and Related
Indenture Indemnitees any legal or equitable right, remedy or claim under or in respect of this
Indenture, except that the Persons referred to in the second to last full paragraph of Section
7.02(a) shall be third party beneficiaries of such paragraph.

     Section 10.05 Notices. Unless otherwise expressly specified or permitted by the terms
hereof, all notices, requests, demands, authorizations, directions, consents, waivers or documents
required or permitted under the terms and provisions of this Indenture shall be in English and in
writing, and any such notice may be given by United States mail, courier service, facsimile, and
any such notice shall be effective when delivered (or, if mailed, three Business Days after
deposit, postage prepaid, in the first class U.S. mail

Indenture and Security Agreement (2011-1 EETC)
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and, if delivered by facsimile, upon completion of transmission and confirmation by the sender
(by a telephone call to a representative of the recipient or by machine confirmation) that such
transmission was received) addressed as follows:

     if to Company, addressed to:

Delta Air Lines, Inc.

1030 Delta Boulevard

Atlanta, Georgia 30354

Attention: Treasurer, Dept. 856

Telephone: (404) 715-6583

Facsimile: (404) 773-7345

     with a copy to the General Counsel at the same address, but Dept. 971

Telephone: (404) 715-7820

Facsimile: (404) 715-7882;

	 	 	if to Loan Trustee, addressed to:

U.S. Bank Trust National Association

One Federal Street, 3rd Floor

Boston, Massachusetts 02110

Attention: Corporate Trust Services

Ref.: Delta 2011-1 EETC

Telephone: (617) 603-6553

Facsimile: (617) 603-6683;

     if to any Noteholder, addressed to such Noteholder at its address set forth in the Equipment
Note Register maintained pursuant to Section 2.07;

     if to any Indenture Indemnitee other than Loan Trustee, addressed to the address of such party
(if any) set forth in Section 7.01 of the Participation Agreement or to such other address as such
Indenture Indemnitee shall have furnished by notice to Company and Loan Trustee; and

     if to any Related Indenture Indemnitee, addressed to such Related Indenture Indemnitee at its
address set forth in the Equipment Note Register (defined in the

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

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applicable Related Indenture) maintained pursuant to Section 2.07 of the applicable Related
Indenture.

     Any party, by notice to the other parties hereto, may designate different addresses for
subsequent notices or communications. Whenever the words “notice” or “notify” or similar words are
used herein, they mean the provision of formal notice as set forth in this Section 10.05.

     Section 10.06 Severability. To the extent permitted by applicable law, any provision
of this Indenture that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

     Section 10.07 No Oral Modification or Continuing Waivers. No terms or provisions of
this Indenture or of the Equipment Notes may be changed, waived, discharged or terminated orally,
but only by an instrument in writing signed by Company and Loan Trustee, in compliance with Article
IX. Any waiver of the terms hereof or of any Equipment Note shall be effective only in the
specific instance and for the specific purpose given.

     Section 10.08 Successors and Assigns. All covenants and agreements contained herein
shall bind and inure to the benefit of, and be enforceable by, each of the parties hereto and the
successors and permitted assigns of each, all as herein provided. Any request, notice, direction,
consent, waiver or other instrument or action by any Noteholder shall bind the successors and
permitted assigns of such Noteholder. Each Noteholder by its acceptance of an Equipment Note
agrees to be bound by (i) this Indenture and all provisions of the Participation Agreement,
the other Operative Documents and the Pass Through Documents applicable to a Noteholder and
(ii) all provisions of each Related Indenture applicable to a Related Noteholder to the
extent such Noteholder is such Related Noteholder.

     Section 10.09 Headings. The headings of the various Articles and Sections herein and
in the Table of Contents hereto are for convenience of reference only and shall not define or limit
any of the terms or provisions hereof.

     Section 10.10 Normal Commercial Relations. Anything contained in this Indenture to
the contrary notwithstanding, Loan Trustee, any Noteholder or any other

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

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party to any of the Operative Documents or the Pass Through Documents or any of their
affiliates may conduct any banking or other financial transactions, and have banking or other
commercial relationships, with Company, fully to the same extent as if this Indenture were not in
effect, including without limitation the making of loans or other extensions of credit to Company
for any purpose whatsoever, whether related to any of the transactions contemplated hereby or
otherwise.

     Section 10.11 Voting by Noteholders. All votes of Noteholders shall be governed by a
vote of a Majority in Interest of Noteholders, except as otherwise provided herein.

     Section 10.12 Section 1110. It is the intention of the parties hereto that the
security interest created hereby, to the fullest extent available under applicable law, entitles
Loan Trustee, on behalf of Noteholders, to all of the benefits of Section 1110 with respect to the
Aircraft.

     Section 10.13 Company’s Performance and Rights. Any obligation imposed on Company
herein shall require only that Company perform or cause to be performed such obligation, even if
stated as a direct obligation, and the performance of any such obligation by any permitted
assignee, lessee or transferee under an assignment, lease or transfer agreement then in effect and
in accordance with the provisions of the Operative Documents shall constitute performance by
Company and, to the extent of such performance, discharge such obligation by Company. Except as
otherwise expressly provided herein, any right granted to Company in this Indenture shall grant
Company the right to permit such right to be exercised by any such assignee, lessee or transferee,
and, in the case of a lessee, as if the terms hereof were applicable to such lessee were such
lessee Company hereunder. The inclusion of specific references to obligations or rights of any
such assignee, lessee or transferee in certain provisions of this Indenture shall not in any way
prevent or diminish the application of the provisions of the two sentences immediately preceding
with respect to obligations or rights in respect of which specific reference to any such assignee,
lessee or transferee has not been made in this Indenture.

     Section 10.14 Counterparts. This Indenture may be executed in any number of
counterparts (and each of the parties hereto shall not be required to execute the same
counterpart). Each counterpart of this Indenture including a signature page or pages executed by
each of the parties hereto shall be an original counterpart of this Indenture, but all of such
counterparts together shall constitute one instrument.

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

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     Section 10.15 Governing Law. THIS INDENTURE HAS BEEN DELIVERED IN THE STATE OF NEW
YORK AND THIS INDENTURE, ANY INDENTURE SUPPLEMENT AND THE EQUIPMENT NOTES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE.

     Section 10.16 Confidential Information. The term “Confidential Information”
means: (a) the existence and terms of any lease of the Airframe or Engines pursuant to
Section 7.02(a) and the identity of the Permitted Lessee thereunder; (b) all information
obtained in connection with any inspection conducted by Loan Trustee or its representative pursuant
to Section 7.03(a); (c) each certification furnished to Loan Trustee pursuant to Sections
7.06(a) and 7.06(b); (d) all information contained in each report furnished to Loan Trustee
pursuant to Section 7.06(e); (e) all information regarding the Warranty Rights; and
(f) all information designated by Company as non-public information. All Confidential
Information shall be held confidential by Loan Trustee and each Noteholder and each affiliate,
agent, officer, director, or employee of any thereof and shall not be furnished or disclosed by any
of them to anyone other than (i) Loan Trustee or any Noteholder and (ii) their
respective bank examiners, auditors, accountants, agents and legal counsel, and except as may be
required by an order of any court or administrative agency or by any statute, rule, regulation or
order of any governmental authority.

     Section 10.17 Submission to Jurisdiction. Each of the parties hereto, and by
acceptance of Equipment Notes, each Noteholder, to the extent it may do so under applicable law,
for purposes hereof and of all other Operative Documents hereby (a) irrevocably submits
itself to the non-exclusive jurisdiction of the courts of the State of New York sitting in the City
of New York and to the non-exclusive jurisdiction of the United States District Court for the
Southern District of New York, for the purposes of any suit, action or other proceeding arising out
of this Indenture, the subject matter hereof or any of the transactions contemplated hereby brought
by any party or parties hereto or thereto, or their successors or permitted assigns and (b)
waives, and agrees not to assert, by way of motion, as a defense, or otherwise, in any such suit,
action or proceeding, that the suit, action or proceeding is brought in an inconvenient forum, that
the venue of the suit, action or proceeding is improper or that this Indenture or the Equipment
Notes or the subject matter hereof or any of the transactions contemplated hereby may not be
enforced in or by such courts.

[Signature Pages Follow.]

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

90

 

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed by their
respective officers thereof duly authorized, as of the date first above written.

	 	 	 	 	 
	 	DELTA AIR LINES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	U.S. BANK TRUST NATIONAL ASSOCIATION, not in
 its
individual capacity, except as expressly provided
herein,
 but solely as Loan Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

 

 

Exhibit A

to Indenture and Security Agreement

([REG. NO.])

FORM OF INDENTURE SUPPLEMENT

INDENTURE SUPPLEMENT NO. _____

     INDENTURE SUPPLEMENT NO. ____, dated _______________ ____, 20__ (“Indenture
Supplement”), between DELTA AIR LINES, INC. (“Company”) and U.S. BANK TRUST NATIONAL
ASSOCIATION, not in its individual capacity but solely as Loan Trustee under the Indenture (each as
hereinafter defined).

W I T N E S S E T H:

     WHEREAS, the Indenture and Security Agreement ([REG. NO.]), dated as of _________ ___, 20__
(the “Indenture”; capitalized terms used herein without definition shall have the meanings
specified therefor in Annex A to the Indenture), between Company and U.S. Bank Trust National
Association, not in its individual capacity, except as expressly provided therein, but solely as
Loan Trustee (“Loan Trustee”), provides for the execution and delivery of supplements
thereto substantially in the form hereof which shall particularly describe the Aircraft, and shall
specifically grant a security interest in the Aircraft to Loan Trustee; and

     [WHEREAS, the Indenture relates to the Airframe and Engines described in Annex A attached
hereto and made a part hereof, and a counterpart of the Indenture is attached to and made a part of
this Indenture Supplement;]10

     [WHEREAS, Company has, as provided in the Indenture, heretofore executed and delivered to Loan
Trustee Indenture Supplement(s) for the purpose of specifically subjecting to the Lien of the
Indenture certain airframes and/or engines therein described, which Indenture Supplement(s) is/are
dated and has/have been duly recorded with the FAA as set forth below, to wit:

     Date Recordation Date FAA Document Number]11

     NOW, THEREFORE, (x) to secure the prompt and complete payment (whether at stated
maturity, by acceleration or otherwise) of principal of, Make-Whole Amount, if

 

			
	10	 	Use for Indenture Supplement No. 1 only.
	 
	11	 	Use for all Indenture Supplements other than
Indenture Supplement No. 1.

Indenture Supplement No.___ (2011-1 EETC)
[Reg. No.]

A-1

 

any, and interest on, the Equipment Notes and all other Secured Obligations payable by Company
under the Operative Documents and the performance and observance by Company of all the agreements
and covenants to be performed or observed by Company for the benefit of Noteholders and Indenture
Indemnitees contained in the Operative Documents and (y) to secure the Related Secured
Obligations, and in consideration of the premises and of the covenants contained in the Operative
Documents and the Related Indentures, and for other good and valuable consideration given by
Noteholders, Indenture Indemnitees and Related Indenture Indemnitees to Company at or before the
Closing Date, the receipt and adequacy of which is hereby acknowledged, Company does hereby grant,
bargain, sell, convey, transfer, mortgage, assign, pledge and confirm unto Loan Trustee and its
successors in trust and permitted assigns, for the security and benefit of Noteholders, each
Indenture Indemnitee and each Related Indenture Indemnitee, a first priority security interest in,
and mortgage lien on, all estate, right, title and interest of Company in, to and under the
Aircraft, including the Airframe and Engines described in Annex A attached hereto, whether or not
any such Engine from time to time is installed on the Airframe or any other airframe or any other
aircraft, and any and all Parts relating thereto, and, to the extent provided in the Indenture, all
substitutions and replacements of, and additions, improvements, accessions and accumulations to,
the Aircraft, including the Airframe, the Engines and any and all Parts (in each case other than
Excluded Equipment) relating thereto;

     To have and to hold all and singular the aforesaid property unto Loan Trustee, and its
successors and permitted assigns, in trust for the equal and proportionate benefit and security of
Noteholders, Indenture Indemnitees and Related Indenture Indemnitees, except as otherwise provided
in the Indenture, including Section 2.13 and Article III of the Indenture, without any priority of
any one Equipment Note over any other, or any Related Equipment Note over any other by reason of
priority of time of issue, sale, negotiation, date of maturity thereof or otherwise for any reason
whatsoever, and for the uses and purposes and subject to the terms and provisions set forth in the
Indenture.

     This Indenture Supplement shall be construed as supplemental to the Indenture and shall form a
part thereof, and the Indenture is hereby incorporated by reference herein and is hereby ratified,
approved and confirmed.

     THIS INDENTURE SUPPLEMENT HAS BEEN DELIVERED IN THE STATE OF NEW YORK AND SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE.

[Signature Pages Follow.]

Indenture Supplement No.___ (2011-1 EETC)
[Reg. No.]

A-2

 

     IN WITNESS WHEREOF, the undersigned have caused this Indenture Supplement No. _____ to be duly
executed by their respective duly authorized officers, on the date first above written.

	 	 	 	 	 
	 	DELTA AIR LINES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	U.S. BANK TRUST NATIONAL ASSOCIATION, not in
 its
individual capacity, except as expressly provided
herein,
 but solely as Loan Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page

Indenture Supplement No.___ (2011-1 EETC)
[Reg. No.]

 

 

Annex A

to Indenture Supplement No. ___

([REG. NO.])

DESCRIPTION OF AIRFRAME AND ENGINES 

     AIRFRAME

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Generic	 	 	FAA	 	 	 	 
	 	 	 	 	 	 	Manufacturer	 	 	Registration	 	 	Manufacturer’s	 
	Manufacturer	 	Model	 	 	Model	 	 	No.	 	 	Serial No.	 
	The Boeing Company
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

     ENGINES

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Generic	 	 	 	 
	 	 	 	 	 	 	Manufacturer	 	 	 	 
	Manufacturer	 	Model	 	 	Model	 	 	Manufacturer’s Serial Nos.	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

     Each Engine has 550 or more rated take-off horsepower or the equivalent of such horsepower and
is a jet propulsion aircraft engine having at least 1750 pounds of thrust or the equivalent of such
thrust.

Indenture Supplement No.___ (2011-1 EETC)
[Reg. No.]

 

 

Exhibit B

to Indenture and Security Agreement

([REG. NO.])

LIST OF PERMITTED COUNTRIES

	 	 	 	 	 

	Australia

	 	Greece
	 	Norway
	 
	Austria

	 	Hong Kong
	 	Peoples’ Republic of China
	 
	Bahamas

	 	Hungary
	 	Poland
	 
	Barbados

	 	Iceland
	 	Portugal
	 
	Belgium

	 	India
	 	Republic of China (Taiwan)
	 
	Bermuda Islands

	 	Ireland
	 	Russia
	 
	Brazil

	 	Italy
	 	Singapore
	 
	British Virgin Islands

	 	Jamaica
	 	South Africa
	 
	Canada

	 	Japan
	 	South Korea
	 
	Cayman Islands

	 	Jordan
	 	Spain
	 
	Chile

	 	Liechtenstein
	 	Sweden
	 
	Czech Republic

	 	Luxembourg
	 	Switzerland
	 
	Denmark

	 	Malaysia
	 	Thailand
	 
	Ecuador

	 	Mexico
	 	Trinidad and Tobago
	 
	Egypt

	 	Monaco
	 	United Kingdom
	 
	Finland

	 	Netherlands Antilles
	 	Venezuela
	 
	France

	 	Netherlands, the	 	 
	 
	Germany

	 	New Zealand	 	 

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

B-1

 

Exhibit C

to Indenture and

Security Agreement

([REG. NO.])

CERTAIN TERMS

	 	 	 	 	 

	Insurance Threshold:
	 	$	[8,000,000]	12
	 
	 	$	[12,000,000]	13
	 
	 	$	[15,000,000]	14

 

			
	12	 	To be inserted in the case of any 737-832 model
aircraft.
	 
	13	 	To be inserted in the case of any 757-232 model
aircraft.
	 
	14	 	To be inserted in the case of any 767-332ER model
aircraft.

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

C-1

 

Schedule I

to Indenture and

Security Agreement

DESCRIPTION OF EQUIPMENT NOTES15

     The information set forth below this text in this Schedule has been intentionally omitted from
the FAA filing copy as the parties hereto deem it to contain confidential information.

 

			
	15	 	This page to be included only in the FAA filing
package in the place of the completed amortization schedule.

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

I-1

 

Schedule I

to Indenture and

Security Agreement

(Cont’d)

DESCRIPTION OF EQUIPMENT NOTES16

	 	 	 	 	 	 	 	 	 
	 	 	Original Principal	 	 
	 	 	Amount17	 	Maturity Date
	Series A
	 	$	[•]	 	 	April 15, 2019
	Equipment Notes:
	 	 	 	 	 	 	 	 

CERTAIN DEFINED TERMS

	 	 	 	 	 
	Defined Term	 	Definition
	Debt Rate for Series A Equipment Notes
	 	 	5.30	% per annum
	Make-Whole Spread for Series A Equipment Notes
	 	 	0.50	%

 

			
	16	 	If any Series B Equipment Notes are being issued
on the Closing Date, this Schedule I should be revised to include the relevant
information for the Series B Equipment Notes.
	 
	17	 	For Series A Equipment Notes, to insert the
amount set forth in the line captioned “At Issuance” in the “Equipment Note
Ending Balance” column relating to the relevant aircraft in Appendix V to the
Prospectus Supplement relating to Delta Pass Through Certificates, Series
2011-1A.

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

 

 

Schedule I

to Indenture and

Security Agreement

(Cont’d)

EQUIPMENT NOTES AMORTIZATION18

SERIES A EQUIPMENT NOTES19

Boeing [Model]

[Reg. No.]

	 	 	 	 	 
	 	 	Percentage of	 
	 	 	Original Principal Amount	 
	Payment Date	 	to be Paid	 
	 
	 	 	 	 

 

			
	18	 	If any Series B Equipment Notes are being issued
on the Closing Date, this Schedule I should be revised to include the relevant
information for the Series B Equipment Notes.
	 
	19	 	For each Aircraft (as defined in the Note
Purchase Agreement), to be completed based on the amortization schedule in
Schedule III to the Note Purchase Agreement.

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

 

 

Schedule I

to Indenture and

Security Agreement

(Cont’d)

EQUIPMENT NOTES AMORTIZATION20

The portion of this Schedule appearing below this text is intentionally deleted from the FAA filing
counterpart because the parties hereto deem it to contain confidential information.

 

			
	20	 	This page to be included only in the FAA filing
package in the place of the completed amortization schedule.

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

 

 

Schedule II

to Indenture and

Security Agreement

PASS THROUGH TRUST AGREEMENT AND

PASS THROUGH TRUST SUPPLEMENTS21

     Pass Through Trust Agreement, dated as of November 16, 2000, between Delta Air Lines, Inc. and
U.S. Bank Trust National Association (as successor to State Street Bank and Trust Company of
Connecticut, National Association), as trustee, as supplemented by Trust Supplement No. 2011-1A,
dated as of the Issuance Date.

 

			
	21	 	If any Series B Equipment Notes are being issued
on the Closing Date, this Schedule II should be revised to include the relevant
information for the applicable Trust Supplement.

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

II-1

 

Annex A to

Participation Agreement and

Indenture and Security Agreement

([REG. NO.])

DEFINITIONS

([REG. NO.])

     “Additional Insureds” has the meaning specified in Section 7.06(a) of the Indenture.

     “Affiliate” means with respect to any Person, any other Person directly or indirectly
controlling, controlled by or under common control with such Person. For the purposes of this
definition, “control” (including “controlled by” and “under common control with”) shall mean the
power, directly or indirectly, to direct or cause the direction of the management and policies of
such Person whether through the ownership of voting securities or by contract or otherwise. In no
event shall U.S. Bank be deemed to be an Affiliate of Loan Trustee or vice versa.

     “After-Tax Basis” means that indemnity and compensation payments required to be made
on such basis will be supplemented by the Person paying the base amount by that amount which, when
added to such base amount, and after deduction of all Federal, state, local and foreign Taxes
required to be paid by or on behalf of the payee with respect of the receipt or realization of the
base amount and any such supplemental amounts, and after consideration of any current tax savings
of such payee resulting by way of any deduction, credit or other tax benefit actually and currently
realized that is attributable to such base amount or Tax, shall net such payee the full amount of
such base amount.

     “Agreement” and “Participation Agreement” mean that certain Participation
Agreement ([REG. NO.]), dated on or before the Closing Date, among Company, U.S. Bank, Pass Through
Trustee under each Pass Through Trust Agreement in effect as of the date of execution and delivery
of such Participation Agreement, Subordination Agent and Loan Trustee, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with its terms.

     “Aircraft” means the Airframe (or any Replacement Airframe substituted therefor
pursuant to Section 7.05 of the Indenture) together with the two Engines described in the Indenture
Supplement originally executed and delivered under the Indenture (or any Replacement Engine that
may from time to time be substituted for any of such Engines pursuant to Section 7.04 or Section
7.05 of the Indenture), whether or not any of such initial or substituted Engines is from time to
time installed on such Airframe or installed on any other airframe or on any other aircraft. The
term “Aircraft” includes any Replacement Aircraft.

     “Aircraft Protocol” means the official English language text of the Protocol to the
Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft
Equipment, adopted on November 16, 2001, at a diplomatic conference in Cape Town, South Africa, and
all amendments, supplements, and revisions thereto (and from and after the effective date of the
Cape Town Treaty in the relevant country, means when referring to the Aircraft

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Protocol with respect to that country, the Aircraft Protocol as in effect in such country,
unless otherwise indicated).

     “Airframe” means (a) the Boeing [Model] (generic model [Generic Model])
aircraft (except (i) the Engines or engines from time to time installed thereon and any and
all Parts related to such Engine or engines and (ii) Excluded Equipment) specified on Annex
A to the Indenture Supplement originally executed and delivered under the Indenture and (b)
any and all related Parts. The term “Airframe” includes any Replacement Airframe that is
substituted for the Airframe pursuant to Section 7.05 of the Indenture. At such time as any
Replacement Airframe is so substituted and the Airframe for which such substitution is made is
released from the Lien of the Indenture, such replaced Airframe shall cease to be an Airframe under
the Indenture.

     “Bankruptcy Code” means the United States Bankruptcy Code, 11 United States Code §§101
et seq., as amended from time to time, or any successor statutes thereto.

     “Basic Pass Through Trust Agreement” means that certain Pass Through Trust Agreement,
dated as of November 16, 2000, between Company and U.S. Bank (as successor in interest to State
Street Bank and Trust Company of Connecticut, National Association), as the same may be amended,
supplemented or otherwise modified from time to time in accordance with its terms (but does not
include any Trust Supplement).

     “Business Day” means any day other than a Saturday, a Sunday or a day on which
commercial banks are required or authorized to close in New York, New York, Atlanta, Georgia,
Boston, Massachusetts, Wilmington, Delaware or, if different from the foregoing, the city and state
in which Loan Trustee, the Pass Through Trustee or Subordination Agent maintains its Corporate
Trust Office or receives and disburses funds.

     “Cape Town Convention” means the official English language text of the Convention on
International Interests in Mobile Equipment, adopted on November 16, 2001, at a diplomatic
conference in Cape Town, South Africa, and all amendments, supplements, and revisions thereto (and
from and after the effective date of the Cape Town Treaty in the relevant country, means when
referring to the Cape Town Convention with respect to that country, the Cape Town Convention as in
effect in such country, unless otherwise indicated).

     “Cape Town Treaty” means, collectively, the official English language text of
(a) the Convention on International Interests in Mobile Equipment, and (b) the
Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to
Aircraft Equipment, in each case adopted on November 16, 2001, at a diplomatic conference in Cape
Town, South Africa, and from and after the effective date of the Cape Town Treaty in the relevant
country, means when referring to the Cape Town Treaty with respect to that country, the Cape Town
Treaty as in effect in such country, unless otherwise indicated, and (c) all rules and
regulations adopted pursuant thereto and, in the case of each of the foregoing described in clauses
(a) through (c), all amendments, supplements, and revisions thereto.

     “Certificated Air Carrier” means a Citizen of the United States holding an air carrier
operating certificate issued by the Secretary of Transportation pursuant to Chapter 447 of Title 49
of the United States Code for aircraft capable of carrying ten or more individuals or 6,000

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pounds or more of cargo or that otherwise is certified or registered to the extent required to
fall within the purview of Section 1110.

     “Citizen of the United States” has the meaning specified for such term in Section
40102(a)(15) of Title 49 of the United States Code or any similar legislation of the United States
enacted in substitution or replacement therefor.

     “Claim” has the meaning specified in Section 4.02(a) of the Participation Agreement.

     “Class A Certificates” means Pass Through Certificates issued by the Class A Pass
Through Trust.

     “Class A Liquidity Facility” has the meaning set forth in the Intercreditor Agreement.

     “Class A Liquidity Provider” has the meaning set forth in the Intercreditor Agreement.

     “Class A Pass Through Trust” means the Delta Air Lines Pass Through Trust 2011-1A
created pursuant to the Basic Pass Through Trust Agreement, as supplemented by Trust Supplement No.
2011-1A, dated as of the Issuance Date, between Company and U.S. Bank, as Class A Trustee.

     “Class A Trustee” means the trustee for the Class A Pass Through Trust.

     “Class B Certificates” means Pass Through Certificates, if any, issued by any Class B
Pass Through Trust (including, without limitation, any “Refinancing Certificates” (as such term is
defined in the Intercreditor Agreement)).

     “Class B Liquidity Facility” has the meaning set forth in the Intercreditor Agreement.

     “Class B Liquidity Provider” has the meaning set forth in the Intercreditor Agreement.

     “Class B Pass Through Trust” means (i) initially, a grantor trust, if any,
created pursuant to the applicable Pass Through Trust Agreement, to facilitate the issuance and
sale of pass through certificates in connection with the initial issuance of any Series B Equipment
Notes, and (ii) any “Refinancing Trust” (as such term is defined in the Intercreditor Agreement)
created in connection with any subsequent redemption of such Series B Equipment Notes and issuance
of new Series B Equipment Notes.

     “Class B Trustee” means the trustee for any Class B Pass Through Trust.

     “Closing” has the meaning specified in Section 2.03 of the Participation Agreement.

     “Closing Date” means the date of the closing of the transaction contemplated by the
Operative Documents.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     “Collateral” has the meaning specified in the granting clause of the Indenture.

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     “Company” means Delta Air Lines, Inc., and its successors and permitted assigns.

     “Compulsory Acquisition” means requisition of title or other compulsory acquisition,
capture, seizure, deprivation, confiscation or detention for any reason of the Aircraft by any
government that results in the loss of title or use of the Aircraft by Company (or any Permitted
Lessee) for a period in excess of 180 consecutive days, but shall exclude requisition for use or
hire not involving requisition of title.

     “Confidential Information” has the meaning specified in Section 10.16 of the
Indenture.

     “Controlling Party” has the meaning specified in Section 2.06 of the Intercreditor
Agreement.

     “Corporate Trust Office” has the meaning specified in Section 1.01 of the
Intercreditor Agreement.

     “CRAF Program” means the Civil Reserve Air Fleet Program authorized under 10 U.S.C.
Section 9511 et seq. or any similar or substitute program under the laws of the United States.

     “Debt Rate” means (i) with respect to any Series of Equipment Notes, the rate
per annum specified for the applicable Series as such in Schedule I to the Indenture (as, in the
case of any Series B Equipment Notes issued after the Closing Date, such Schedule I may be amended
in connection with such issuance), and (ii) for any other purpose, with respect to any
period, the weighted average interest rate per annum during such period borne by the outstanding
Equipment Notes, excluding any interest payable at the Past Due Rate.

     “Defaulted Operative Indenture” means any Operative Indenture (the terms “Event of
Default”, “Equipment Notes” and “Payment Default” used in this definition have the meanings
specified therefor in such Operative Indenture) with respect to which (i) a Payment Default
has occurred and is continuing or an Event of Default described in Section 4.01(a) of such
Operative Indenture has occurred and is continuing or (ii) an Event of Default other than
an Event of Default described in Section 4.01(a) of such Operative Indenture has occurred and is
continuing and, in any such case, either (x) the Equipment Notes issued thereunder have
been accelerated and such acceleration has not been rescinded and annulled in accordance therewith
or (y) the loan trustee under such Operative Indenture has given Company a notice of its
intention to exercise one or more of the remedies specified in Section 4.02(a) of such Operative
Indenture; provided that in the event of a bankruptcy proceeding under the Bankruptcy Code
under which Company is a debtor, if and so long as the trustee or the debtor agrees to perform and
performs all obligations of Company under such Operative Indenture and the Equipment Notes issued
thereunder in accordance with Section 1110(a)(2) of the Bankruptcy Code and cures defaults under
such Operative Indentures and Equipment Notes to the extent required by Section 1110(a)(2) of the
Bankruptcy Code, such Operative Indenture shall not be a Defaulted Operative Indenture.

     “Department of Transportation” means the United States Department of Transportation
and any agency or instrumentality of the United States government succeeding to its functions.

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     “Deposit Agreement” means, subject to Section 5(f) of the Note Purchase Agreement,
each of (i) the Deposit Agreement (Class A), dated as of the Issuance Date, between Escrow
Agent and Depositary, which relates to the Class A Pass Through Trust and (ii) a deposit
agreement, between Escrow Agent and Depositary, that has been, or may in the future be, entered
into with respect to the Class B Pass Through Trust, if any, and to which Company shall have
consented; provided that, for purposes of any obligation of Company, no amendment,
modification or supplement to, or substitution or replacement of, any Deposit Agreement shall be
effective unless consented to by Company.

     “Depositary” means, subject to Section 5(f) of the Note Purchase Agreement, The Bank
of New York Mellon, a New York banking corporation, as Depositary under each Deposit Agreement.

     “Direction” has the meaning specified in Section 2.16 of the Indenture.

     “Dollars” and “$” mean the lawful currency of the United States.

     “Eligible Account” means an account established by and with an Eligible Institution at
the request of Loan Trustee, which institution agrees, for all purposes of the UCC including
Article 8 thereof, that (a) such account shall be a “securities account” (as defined in
Section 8-501(a) of the NY UCC), (b) such institution is a “securities intermediary” (as
defined in Section 8-102(a)(14) of the NY UCC), (c) all property (other than cash) credited
to such account shall be treated as a “financial asset” (as defined in Section 8-102(a)(9) of the
NY UCC), (d) Loan Trustee shall be the “entitlement holder” (as defined in Section
8-102(a)(7) of the NY UCC) in respect of such account, (e) it will comply with all
entitlement orders issued by Loan Trustee to the exclusion of Company, (f) it will waive or
subordinate in favor of Loan Trustee all claims (including, without limitation, claims by way of
security interest, lien or right of set-off or right of recoupment), and (g) the “securities
intermediary jurisdiction” (under Section 8-110(e) of the NY UCC) shall be the State of New York.

     “Eligible Institution” means the corporate trust department of (a) U.S. Bank
or any other Person that becomes a successor Loan Trustee under the Indenture, in each case, acting
solely in its capacity as a “securities intermediary” (as defined in Section 8-102(a)(14) of the NY
UCC), or (b) a depository institution organized under the laws of the United States of
America or any one of the states thereof or the District of Columbia (or any U.S. branch of a
foreign bank), which has a Long-Term Rating from Moody’s of at least A3 (or its equivalent) and
from S&P of at least A (or its equivalent).

     “Engine” means (a) each of the two [Engine Manufacturer and Model] engines
(generic manufacturer and model [Generic Manufacturer and Model]), listed by manufacturer’s serial
number and further described on Annex A to the Indenture Supplement originally executed and
delivered under the Indenture, whether or not from time to time installed on the Airframe or
installed on any other airframe or on any other aircraft and (b) any Replacement Engine
substituted for an Engine pursuant to Section 7.04 or 7.05 of the Indenture; together in each case
with any and all related Parts but excluding Excluded Equipment. At such time as a Replacement
Engine is so substituted and the Engine for which substitution is made is released

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from the Lien of the Indenture, such replaced Engine shall cease to be an Engine under the
Indenture.

     “Equipment Note” means and includes any equipment notes issued under the Indenture in
the form specified in Section 2.01 thereof (as such form may be varied pursuant to the terms of the
Indenture) and any Equipment Note issued in exchange therefor or replacement thereof pursuant to
Section 2.07 or 2.08 of the Indenture.

     “Equipment Note Register” has the meaning specified in Section 2.07 of the Indenture.

     “Equipment Note Registrar” has the meaning specified in Section 2.07 of the Indenture.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and the regulations promulgated and rulings issued thereunder. Section references to
ERISA are to ERISA as in effect at the date of the Participation Agreement and any subsequent
provisions of ERISA amendatory thereof, supplemental thereto or substituted therefor.

     “Escrow Agent” means U.S. Bank National Association, a national banking association,
as escrow agent under each Escrow Agreement, or any successor agent thereto.

     “Escrow Agreement” means each of (i) the Escrow and Paying Agent Agreement
(Class A), dated as of the Issuance Date, among Escrow Agent, Paying Agent, the Underwriters, and
Class A Trustee, which relates to the Class A Pass Through Trust and (ii) an escrow and
paying agent agreement, among Escrow Agent, Paying Agent, Class B Trustee and any other party that
may be specified therein, that has been, or may in the future be, entered into with respect to the
Class B Pass Through Trust, if any, and to which Company shall have consented; provided
that, for purposes of any obligation of Company, no amendment, modification or supplement to, or
substitution or replacement of, any Escrow Agreement shall be effective unless consented to by
Company.

     “Event of Default” has the meaning specified in Section 4.01 of the Indenture.

     “Event of Loss” means, with respect to the Aircraft, Airframe or any Engine, any of
the following events with respect to such property:

     (a) the loss of such property or of the use thereof due to destruction, damage beyond repair
or rendition of such property permanently unfit for normal use for any reason whatsoever;

     (b) any damage to such property which results in an insurance settlement with respect to such
property on the basis of a total loss, a compromised total loss or a constructive total loss;

     (c) the theft, hijacking or disappearance of such property for a period in excess of 180
consecutive days;

     (d) the requisition for use or hire of such property by any government (other than a
requisition for use or hire by a Government or the government of the country of registry of the

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Aircraft) that results in the loss of possession of such property by Company (or any Permitted
Lessee) for a period in excess of 12 consecutive months;

     (e) the operation or location of the Aircraft, while under requisition for use by any
government, in any area excluded from coverage by any insurance policy in effect with respect to
the Aircraft required by the terms of Section 7.06 of the Indenture, unless Company shall have
obtained indemnity or insurance in lieu thereof from such government;

     (f) any Compulsory Acquisition;

     (g) as a result of any law, rule, regulation, order or other action by the FAA or other
government of the country of registry, the use of the Aircraft or Airframe in the normal business
of air transportation is prohibited by virtue of a condition affecting all aircraft of the same
type for a period of 18 consecutive months, unless Company is diligently carrying forward all steps
that are necessary or desirable to permit the normal use of the Aircraft or Airframe or, in any
event, if such use is prohibited for a period of three consecutive years; and

     (h) with respect to an Engine only, any divestiture of title to or interest in an Engine or
any event with respect to an Engine that is deemed to be an Event of Loss with respect to such
Engine pursuant to Section 7.02(a)(vii) of the Indenture.

     An Event of Loss with respect to the Aircraft shall be deemed to have occurred if an Event of
Loss occurs with respect to the Airframe unless Company elects to substitute a Replacement Airframe
pursuant to Section 7.05(a)(i) of the Indenture.

     “Excluded Equipment” means (i) defibrillators, enhanced emergency medical kits
and other medical equipment, (ii) airphones and other components or systems installed on or
affixed to the Airframe that are used to provide individual telecommunications or electronic
entertainment to passengers aboard the Aircraft, (iii) galley carts, beverage carts, waste
containers, liquor kits, food tray carriers, ice containers, oven inserts, galley inserts, and
other branded passenger convenience or service items, (iv) any items, equipment or systems
leased by Company or any Permitted Lessee (other than items, equipment, or systems that are leased
from Company pursuant to the applicable Lease) or owned by Company or any Permitted Lessee subject
to a conditional sales agreement or a security interest (other than the security interest granted
under the Indenture), and (v) cargo containers.

     “FAA” means the United States Federal Aviation Administration and any agency or
instrumentality of the United States government succeeding to its functions.

     “FAA Bill of Sale” means the bill of sale for the Aircraft on AC Form 8050-2 executed
by Manufacturer or an affiliate of Manufacturer in favor of Company and recorded with the FAA.

     “Federal Funds Rate” means a fluctuating interest rate per annum in effect from time
to time, which rate per annum shall at all times be equal to the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal
funds brokers, as published for such day (or, if such day is not a Business Day, for the

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next preceding Business Day) by the Federal Reserve Bank of New York, or if such rate is not
so published for any day that is a Business Day, the average of the quotations for such day for
such transactions received by U.S. Bank from three Federal funds brokers of recognized standing
selected by it.

     “Government” means the government of any of Canada, France, Germany, Japan, The
Netherlands, Sweden, Switzerland, the United Kingdom or the United States and any instrumentality
or agency thereof.

     “Indemnitee” has the meaning specified in Section 4.02(b) of the Participation
Agreement.

     “Indenture” means that certain Indenture and Security Agreement ([REG. NO.]), dated as
of the Closing Date, between Company and Loan Trustee, as the same may be amended, supplemented or
otherwise modified from time to time in accordance with its terms, including supplementation by an
Indenture Supplement pursuant to the Indenture.

     “Indenture Indemnitee” means (i) Loan Trustee, (ii) U.S. Bank,
(iii) each separate or successor or additional trustee appointed pursuant to Section 8.02
of the Indenture, (iv) so long as it holds any Equipment Notes as agent and trustee of any
Pass Through Trustee, Subordination Agent, (v) each Liquidity Provider, (vi) so
long as it is the holder of any Equipment Notes, each Pass Through Trustee, (vii) Paying
Agent, (viii) Escrow Agent, and (ix) any of their respective successors and
permitted assigns in such capacities, directors, officers, employees, agents and servants. No
holder of a Pass Through Certificate in its capacity as such shall be an Indenture Indemnitee.

     “Indenture Supplement” means a supplement to the Indenture, substantially in the form
of Exhibit A to the Indenture, which particularly describes the Aircraft, and any Replacement
Airframe and/or Replacement Engine, included in the property subject to the Lien of the Indenture.

     “Insurance Threshold” is the amount set forth as the Insurance Threshold in Exhibit C
to the Indenture.

     “Intercreditor Agreement” means that certain Intercreditor Agreement, dated as of the
Issuance Date, among Class A Trustee, Class A Liquidity Provider and Subordination Agent, as the
same may be amended, supplemented or otherwise modified from time to time in accordance with its
terms; provided that, for purposes of any obligations of Company, no amendment,
modification or supplement to, or substitution or replacement of, such Intercreditor Agreement
shall be effective unless consented to by Company.

     “Interests” has the meaning specified in Section 7.06(a) of the Indenture.

     “International Interest” has the meaning ascribed to the defined term “international
interest” under the Cape Town Treaty.

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     “International Registry” means the international registry established pursuant to the
Cape Town Treaty.

     “Issuance Date” means April 5, 2011.

     “Lease” means any lease permitted by the terms of Section 7.02(a) of the Indenture.

     “Lien” means any mortgage, pledge, lien, encumbrance, lease, sublease, sub-sublease or
security interest.

     “Liquidity Facilities” means, collectively, the Class A Liquidity Facility and, if
provided, the Class B Liquidity Facility.

     “Liquidity Providers” means, collectively, Class A Liquidity Provider and, if any
Class B Liquidity Facility shall have been provided, Class B Liquidity Provider.

     “Loan Amount” has the meaning specified in Section 7.06(c) of the Indenture.

     “Loan Trustee” has the meaning specified in the introductory paragraph of the
Indenture.

     “Loan Trustee Liens” means any Lien attributable to U.S. Bank or Loan Trustee with
respect to the Aircraft, any interest therein or any other portion of the Collateral arising as a
result of (i) claims against U.S. Bank or Loan Trustee not related to its interest in the
Aircraft or the administration of the Collateral pursuant to the Indenture, (ii) acts of
U.S. Bank or Loan Trustee not permitted by, or the failure of U.S. Bank or Loan Trustee to take any
action required by, the Operative Documents or the Pass Through Documents, (iii) claims
against U.S. Bank or Loan Trustee relating to Taxes or Claims that are excluded from the
indemnification provided by Section 4.02 of the Participation Agreement pursuant to said Section
4.02 or (iv) claims against U.S. Bank or Loan Trustee arising out of the transfer by any
such party of all or any portion of its interest in the Aircraft, the Collateral, the Operative
Documents or the Pass Through Documents, except while an Event of Default is continuing and prior
to the time that Loan Trustee has received all amounts due to it pursuant to the Indenture.

     “Long-Term Rating” has the meaning specified in the Intercreditor Agreement.

     “Loss Payment Date” has the meaning specified in Section 7.05(a) of the Indenture.

     “Majority in Interest of Noteholders” means, as of a particular date of determination
and subject to Section 2.16 of the Indenture, the holders of at least a majority in aggregate
unpaid principal amount of all Equipment Notes outstanding as of such date (excluding any Equipment
Notes held by Company or any Affiliate thereof, it being understood that a Pass Through Trustee
shall be considered an Affiliate of Company as long as more than 50% in the aggregate face amount
of Pass Through Certificates issued by the corresponding Pass Through Trust are held by Company or
an Affiliate of Company or a Pass Through Trustee is otherwise under the control of Company or such
Affiliate of Company (unless all Equipment Notes then outstanding are held by Company or any
Affiliate thereof, including Pass Through Trustees which are considered Affiliates of Company
pursuant hereto); provided that for the purposes of directing any action or

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casting any vote or giving any consent, waiver or instruction hereunder, any Noteholder of an
Equipment Note or Equipment Notes may allocate, in such Noteholder’s sole discretion, any
fractional portion of the principal amount of such Equipment Note or Equipment Notes in favor of or
in opposition to any such action, vote, consent, waiver or instruction.

     “Make-Whole Amount” means, with respect to any Equipment Note, the amount (as
determined by an independent investment banker selected by Company (and, following the occurrence
and during the continuance of an Event of Default, reasonably acceptable to Loan Trustee)), if any,
by which (i) the present value of the remaining scheduled payments of principal and
interest from the redemption date to maturity of such Equipment Note computed by discounting each
such payment on a semiannual basis from its respective Payment Date (assuming a 360-day year of
twelve 30 day months) using a discount rate equal to the Treasury Yield plus the Make-Whole Spread
exceeds (ii) the outstanding principal amount of such Equipment Note plus accrued but
unpaid interest thereon to the date of redemption. For purposes of determining the Make-Whole
Amount, “Treasury Yield” means, at the date of determination, the interest rate (expressed
as a semiannual equivalent and as a decimal rounded to the number of decimal places as appears in
the Debt Rate of such Equipment Note and, in the case of United States Treasury bills, converted to
a bond equivalent yield) determined to be the per annum rate equal to the semiannual yield to
maturity for United States Treasury securities maturing on the Average Life Date and trading in the
public securities market either as determined by interpolation between the most recent weekly
average constant maturity, non-inflation-indexed series yield to maturity for two series of United
States Treasury securities, trading in the public securities markets, (A) one maturing as
close as possible to, but earlier than, the Average Life Date and (B) the other maturing as
close as possible to, but later than, the Average Life Date, in each case as reported in the most
recent H.15(519) or, if a weekly average constant maturity, non-inflation indexed series yield to
maturity for United States Treasury securities maturing on the Average Life Date is reported in the
most recent H.15(519), such weekly average yield to maturity as reported in such H.15(519).
“H.15(519)” means the weekly statistical release designated as such, or any successor
publication, published by the Board of Governors of the Federal Reserve System. The date of
determination of a Make-Whole Amount shall be the third Business Day prior to the applicable
redemption date and the “most recent H.15(519)” means the latest H.15(519) published prior
to the close of business on the third Business Day prior to the applicable redemption date.
“Average Life Date” means, for each Equipment Note to be redeemed, the date which follows
the redemption date by a period equal to the Remaining Weighted Average Life at the redemption date
of such Equipment Note. “Remaining Weighted Average Life” of an Equipment Note, at the
redemption date of such Equipment Note, means the number of days equal to the quotient obtained by
dividing: (i) the sum of the products obtained by multiplying (A) the amount of
each then remaining installment of principal, including the payment due on the maturity date of
such Equipment Note, by (B) the number of days from and including the redemption date to
but excluding the scheduled Payment Date of such principal installment by (ii) the then
unpaid principal amount of such Equipment Note.

     “Make-Whole Spread” means, with respect to any Series of Equipment Notes, the
percentage specified for the applicable Series as such in Schedule I to the Indenture (as, in the

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case of any Series B Equipment Notes issued after the Closing Date, such Schedule I may be
amended in connection with such issuance).

     “Manufacturer” means The Boeing Company, a Delaware corporation, and its successors
and assigns.

     “Manufacturer’s Consent” means the Manufacturer’s Consent and Agreement to Assignment
of Warranties, dated as of the Closing Date, substantially in the form of Exhibit D to the
Participation Agreement.

     “Minimum Insurance Amount” has the meaning specified in Section 7.06(a) of the
Indenture.

     “Moody’s” means Moody’s Investors Service, Inc.

     “Noteholder” means any Person in whose name an Equipment Note is registered on the
Equipment Note Register (including, for so long as it is the registered holder of any Equipment
Notes, Subordination Agent on behalf of Pass Through Trustees pursuant to the provisions of the
Intercreditor Agreement).

     “Noteholder Liens” means any Lien attributable to any Noteholder on or against the
Aircraft, any interest therein or any other portion of the Collateral, arising out of any claim
against such Noteholder that is not related to the Operative Documents or Pass Through Documents,
or out of any act or omission of such Noteholder that is not related to the transactions
contemplated by, or that constitutes a breach by such Noteholder of its obligations under, the
Operative Documents or the Pass Through Documents.

     “Note Purchase Agreement” means the Note Purchase Agreement, dated as of the Issuance
Date, among Company, Subordination Agent, Escrow Agent, Paying Agent and Class A Trustee, providing
for, among other things, the issuance and sale of certain equipment notes, as the same may be
amended, supplemented or otherwise modified from time to time in accordance with its terms.

     “NY UCC” means UCC as in effect in the State of New York.

     “Operative Documents” means, collectively, the Participation Agreement, the Indenture,
each Indenture Supplement, the Manufacturer’s Consent and the Equipment Notes.

     “Operative Indentures” means, as of any date, each “Indenture” (as such term is
defined in the Note Purchase Agreement), including the Indenture, whether any other “Indenture”
shall have been entered into before or after the date of the Indenture, but only if as of such date
all “Equipment Notes” (as defined in each such “Indenture”) are held by “Subordination Agent” under
the “Intercreditor Agreement”, as such terms are defined in each such “Indenture”.

     “Other Party Liens” means any Lien attributable to Pass Through Trustee (other than in
its capacity as Noteholder), Subordination Agent (other than in its capacity as Noteholder) or any
Liquidity Provider on or against the Aircraft, any interest therein, or any other portion of the

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

11

 

Collateral arising out of any claim against such party that is not related to the Operative
Documents or Pass Through Documents, or out of any act or omission of such party that is not
related to the transactions contemplated by, or that constitutes a breach by such party of its
obligations under, the Operative Documents or the Pass Through Documents.

     “Participation Agreement” has the meaning set forth under the definition of
“Agreement”.

     “Parts” means any and all appliances, parts, instruments, appurtenances, accessories,
furnishings and other equipment of whatever nature (other than (a) complete Engines or
engines and (b) Excluded Equipment), so long as the same are incorporated or installed in
or attached to the Airframe or any Engine or so long as the same are subject to the Lien of the
Indenture in accordance with the terms of Section 7.04 thereof after removal from the Airframe or
any Engine.

     “Pass Through Certificates” means the pass through certificates issued by any Pass
Through Trust (and any other pass through certificates for which such pass through certificates may
be exchanged).

     “Pass Through Documents” means each Pass Through Trust Agreement, the Note Purchase
Agreement, each Escrow Agreement, each Deposit Agreement, the Intercreditor Agreement and each
Liquidity Facility.

     “Pass Through Trust” means each of the separate grantor trusts that have been or will
be created pursuant to the Pass Through Trust Agreements to facilitate certain of the transactions
contemplated by the Operative Documents.

     “Pass Through Trust Agreement” means each of the Trust Supplements relating to the
Pass Through Trusts, together in each case with the Basic Pass Through Trust Agreement, as the same
may be amended, supplemented or otherwise modified from time to time in accordance with its terms.

     “Pass Through Trustee” means the trustee under a Pass Through Trust Agreement,
together with any successor in interest and any successor or other trustee appointed as provided in
such Pass Through Trust Agreement.

     “Past Due Rate” means the lesser of (a) with respect to (i) any
payment made to a Noteholder under any Series of Equipment Notes, the Debt Rate then applicable to
such Series plus 1% and (ii) any other payment made under any Operative Document to any
other Person, the Debt Rate plus 1% (computed on the basis of a year of 360 days comprised of
twelve 30-day months) and (b) the maximum rate permitted by applicable law.

     “Paying Agent” means U.S. Bank, as paying agent under each Escrow Agreement, and any
successor agent thereto.

     “Payment Date” means, for any Equipment Note, each April 15 and October 15, commencing
with October 15, 2011.

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

12

 

     “Payment Default” means the occurrence of an event that would give rise to an Event of
Default under Section 4.01(a) of the Indenture upon the giving of notice or the passing of time or
both.

     “Permitted Investments” means each of (a) direct obligations of the United
States and agencies thereof; (b) obligations fully guaranteed by the United States;
(c) certificates of deposit issued by, or bankers’ acceptances of, or time deposits with,
any bank, trust company or national banking association incorporated or doing business under the
laws of the United States or one of the states thereof having combined capital and surplus and
retained earnings of at least $100,000,000 and having a Long-Term Rating of A, its equivalent or
better by Moody’s or S&P (or, if neither such organization then rates such institutions, by any
nationally recognized rating organization in the United States); (d) commercial paper of
any holding company of a bank, trust company or national banking association described in clause
(c); (e) commercial paper of companies having a Short-Term Rating assigned to such
commercial paper by either Moody’s or S&P (or, if neither such organization then rates such
commercial paper, by any nationally recognized rating organization in the United States) equal to
either of the two highest ratings assigned by such organization; (f) Dollar-denominated
certificates of deposit issued by, or time deposits with, the European subsidiaries of (i)
any bank, trust company or national banking association described in clause (c), or (ii)
any other bank or financial institution described in clause (g), (h) or (j) below; (g)
United States-issued Yankee certificates of deposit issued by, or bankers’ acceptances of, or
commercial paper issued by, any bank having combined capital and surplus and retained earnings of
at least $100,000,000 and headquartered in Canada, Japan, the United Kingdom, France, Germany,
Switzerland or The Netherlands and having a Long-Term Rating of A, its equivalent or better by
Moody’s or S&P (or, if neither such organization then rates such institutions, by any nationally
recognized rating organization in the United States); (h) Dollar-denominated time deposits
with any Canadian bank having a combined capital and surplus and retained earnings of at least
$100,000,000 and having a Long-Term Rating of A, its equivalent or better by Moody’s or S&P (or, if
neither such organization then rates such institutions, by any nationally recognized rating
organization in the United States); (i) Canadian Treasury Bills fully hedged to Dollars;
(j) repurchase agreements with any financial institution having combined capital and
surplus and retained earnings of at least $100,000,000 collateralized by transfer of possession of
any of the obligations described in clauses (a) through (i) above; (k) bonds, notes or
other obligations of any state of the United States, or any political subdivision of any state, or
any agencies or other instrumentalities of any such state, including, but not limited to,
industrial development bonds, pollution control revenue bonds, public power bonds, housing bonds,
other revenue bonds or any general obligation bonds, that, at the time of their purchase, such
obligations have a Long-Term Rating of A, its equivalent or better by Moody’s or S&P (or, if
neither such organization then rates such obligations, by any nationally recognized rating
organization in the United States); (1) bonds or other debt instruments of any company, if
such bonds or other debt instruments, at the time of their purchase, have a Long-Term Rating of A,
its equivalent or better by Moody’s or S&P (or, if neither such organization then rates such
obligations, by any nationally recognized rating organization in the United States); (m)
mortgage backed securities (i) guaranteed by the Federal National Mortgage Association, the
Federal Home Loan Mortgage Corporation or the Government National Mortgage Association or having a
Long-Term Rating of AAA, its equivalent or better by Moody’s or S&P (or, if neither such
organization then rates such obligations, by any nationally recognized rating organization in the

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

13

 

United States) or, if unrated, deemed to be of a comparable quality by Loan Trustee and
(ii) having an average life not to exceed one year as determined by standard industry
pricing practices presently in effect; (n) asset-backed securities having a Long-Term
Rating of A, its equivalent or better by Moody’s or S&P (or, if neither such organization then
rates such obligations, by any nationally recognized rating organization in the United States) or,
if unrated, deemed to be of a comparable quality by Loan Trustee; and (o) such other
investments approved in writing by Loan Trustee; provided that the instruments described in
the foregoing clauses shall have a maturity no later than the earliest date when such investments
may be required for distribution. The bank acting as Pass Through Trustee or Loan Trustee is
hereby authorized, in making or disposing of any investment described herein, to deal with itself
(in its individual capacity) or with any one or more of its affiliates, whether it or such
affiliate is acting as an agent of Pass Through Trustee or Loan Trustee or for any third person or
dealing as principal for its own account.

     “Permitted Lessee” means any Person to whom Company is permitted to lease the Airframe
or any Engine pursuant to Section 7.02(a) of the Indenture.

     “Permitted Lien” has the meaning specified in Section 7.01 of the Indenture.

     “Person” means any person, including any individual, corporation, limited liability
company, partnership, joint venture, association, joint-stock company, trust, trustee,
unincorporated organization or government or any agency or political subdivision thereof.

     “Prospective International Interest” has the meaning ascribed to the defined term
“prospective international interest” under the Cape Town Treaty.

     [“Purchase Agreement” means Purchase Agreement No. 2022, dated as of October 21, 1997,
which incorporates by reference the Aircraft General Terms Agreement AGTA-DAL, dated as of October
21, 1997, between Manufacturer and Company, as the same may be amended, supplemented or otherwise
modified from time to time in accordance with its terms.]22

     [“Purchase Agreement” means Purchase Agreement No. 2023, dated as of October 21, 1997,
which incorporates by reference the Aircraft General Terms Agreement AGTA-DAL, dated as of October
21, 1997, between Manufacturer and Company, as the same may be amended, supplemented or otherwise
modified from time to time in accordance with its terms.]23

     [“Purchase Agreement” means Purchase Agreement No. 2024, dated as of October 21, 1997,
which incorporates by reference the Aircraft General Terms Agreement AGTA-DAL, dated as of October
21, 1997, between Manufacturer and Company, as the same may be amended, supplemented or otherwise
modified from time to time in accordance with its terms.]24

 

			
	22	 	To be inserted for 737-832 aircraft.
	 
	23	 	To be inserted for 757-232 aircraft.
	 
	24	 	To be inserted for 767-332ER aircraft.

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

14

 

     “Rating Agencies” has the meaning specified in the Intercreditor Agreement.

     “Related Equipment Note” means, as of any date, an “Equipment Note” as defined in each
Related Indenture, but only if as of such date it is held by “Subordination Agent” under the
“Intercreditor Agreement”, as such terms are defined in such Related Indenture.

     “Related Indemnitee Group” has the meaning specified in Section 4.02(b) of the
Participation Agreement.

     “Related Indenture” means each Operative Indenture (other than the Indenture).

     “Related Indenture Bankruptcy Default” means any “Event of Default” under Section
4.01(f), (g), (h) or (i) of any Related Indenture, determined without giving effect to any
applicable grace period.

     “Related Indenture Event of Default” means any “Event of Default” under any Related
Indenture.

     “Related Indenture Indemnitee” means each Related Noteholder.

     “Related Loan Trustee” means “Loan Trustee” as defined in each Related Indenture.

     “Related Make-Whole Amount” means the “Make-Whole Amount”, as defined in each Related
Indenture.

     “Related Noteholder” means a registered holder of a Related Equipment Note.

     “Related Secured Obligations” means, as of any date, the outstanding principal amount
of the Related Equipment Notes issued under each Related Indenture, the accrued and unpaid interest
(including, to the extent permitted by applicable law, post-petition interest) due thereon in
accordance with such Related Indenture as of such date, Related Make-Whole Amount, if any, with
respect thereto in accordance with such Related Indenture as of such date, and any other amounts
payable as of such date under the “Operative Documents” (as defined in each Related Indenture).

     “Related Series A Equipment Note” means, as of any date, a “Series A Equipment Note”,
as defined in each Related Indenture, but only if as of such date it is held by the “Subordination
Agent” under the “Intercreditor Agreement”, as such terms are defined in such Related Indenture.

     “Related Series B Equipment Note” means, as of any date, a “Series B Equipment Note”,
if any, as defined in each Related Indenture, but only if as of such date it is held by the
“Subordination Agent” under the “Intercreditor Agreement”, as such terms are defined in such
Related Indenture.

     “Replacement Aircraft” means the Aircraft of which a Replacement Airframe is part.

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

15

 

     “Replacement Airframe” means a Boeing
[737-800]25[757-200]26[767-300ER]27 aircraft or a comparable or
improved model of Manufacturer (except (a) Engines or engines from time to time installed
thereon and any and all Parts related to such Engine or engines and (b) Excluded
Equipment), that shall have been made subject to the Lien of the Indenture pursuant to Section 7.05
thereof, together with all Parts relating to such aircraft.

     “Replacement Engine” means a [Engine Manufacturer and Model] engine (or an engine of
the same or another manufacturer of a comparable or an improved model and suitable for installation
and use on the Airframe with the other Engine (or any other Replacement Engine being substituted
simultaneously therewith)) that is made subject to the Lien of the Indenture pursuant to Section
7.04 or Section 7.05 thereof, together with all Parts relating to such engine.

     “Replacement Liquidity Facility” has the meaning set forth in the Intercreditor
Agreement.

     “Replacement Liquidity Provider” has the meaning set forth in the Intercreditor
Agreement.

     “Responsible Officer” means, with respect to Company, its Chairman of the Board, its
President, its Chief Operating Officer, any Executive Vice President, any Senior Vice President,
the Chief Financial Officer, any Vice President, the Treasurer, the Controller or the Secretary.

     “S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services
LLC business.

     “Section 1110” means Section 1110 of the Bankruptcy Code.

     “Secured Obligations” has the meaning specified in Section 2.06 of the Indenture.

     “Securities Account” has the meaning specified in Section 3.07 of the Indenture.

     “Securities Act” means the Securities Act of 1933, as amended from time to time.

     “Securities and Exchange Commission” means the United States Securities and Exchange
Commission and any agency or instrumentality of the United States government succeeding to its
functions.

     “Securities Intermediary” has the meaning specified in Section 3.07 of the Indenture.

     “Series” means any series of Equipment Notes, including the Series A Equipment Notes
or, if issued, the Series B Equipment Notes.

 

			
	25	 	To be inserted for 737-832 aircraft.
	 
	26	 	To be inserted for 757-232 aircraft.
	 
	27	 	To be inserted for 767-332ER aircraft.

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

16

 

     “Series A” or “Series A Equipment Notes” means Equipment Notes issued and
designated as “Series A Equipment Notes” under the Indenture, in the original principal amount and
maturities as specified in Schedule I to the Indenture under the heading “Series A Equipment Notes”
and bearing interest at the Debt Rate for Series A Equipment Notes specified in Schedule I to the
Indenture.

     “Series B” or “Series B Equipment Notes” means Equipment Notes, if any, issued
and designated as “Series B Equipment Notes” under the Indenture, in the original principal amount
and maturities as specified under the heading “Series B Equipment Notes” in Schedule I to the
Indenture (as such Schedule I may be amended in connection with the issuance of such Equipment
Notes, if issued after the Closing Date) and bearing interest at the Debt Rate for Series B
Equipment Notes specified in Schedule I to the Indenture (as such Schedule I may be amended in
connection with the issuance of such Equipment Notes, if issued after the Closing Date).

     “Short-Term Rating” has the meaning specified in the Intercreditor Agreement.

     “Subordination Agent” has the meaning specified in the introductory paragraph of the
Participation Agreement.

     “Tax” and “Taxes” mean all governmental fees (including, without limitation,
license, filing and registration fees) and all taxes (including, without limitation, franchise,
excise, stamp, value added, income, gross receipts, sales, use and property taxes), withholdings,
assessments, levies, imposts, duties or charges, of any nature whatsoever, together with any
related penalties, fines, additions to tax or interest thereon imposed, withheld, levied or
assessed by any country, taxing authority or governmental subdivision thereof or therein or by any
international authority, including any taxes imposed on any Person as a result of such Person being
required to collect and pay over withholding taxes.

     “Transportation Code” means that portion of Title 49 of the United States Code
comprising those provisions formerly referred to as the Federal Aviation Act of 1958, as amended,
or any subsequent legislation that amends, supplements or supersedes such provisions.

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended from time to
time.

     “Trust Supplements” means (i) those agreements supplemental to the Basic Pass
Through Trust Agreement referred to in Schedule II to the Participation Agreement as of the Closing
Date and (ii) in the case of any Class B Certificates issued after the Closing Date,
whether in connection with the initial issuance of any Series B Equipment Notes, if so issued after
the Closing Date, or in connection with any subsequent redemption of any Series B Equipment Notes
(whether issued on or after the Closing Date) and issuance of new Series B Equipment Notes, an
agreement supplemental to the Basic Pass Through Trust Agreement pursuant to which (a) a
separate trust is created for the benefit of the holders of such Class B Certificates, (b)
the issuance of such Class B Certificates representing fractional undivided interests in the Class
B Pass Through Trust is authorized and (c) the terms of such Class B Certificates are
established.

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

17

 

     “UCC” means the Uniform Commercial Code as in effect in any applicable jurisdiction.

     “Underwriter” means each of the underwriters identified as such in the Underwriting
Agreement.

     “Underwriting Agreement” means that certain Underwriting Agreement, dated March 30,
2011, among Company and Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche
Bank Securities Inc., Morgan Stanley & Co. Incorporated and Wells Fargo Securities, LLC, as
underwriters, as the same may be amended, supplemented or otherwise modified from time to time in
accordance with its terms.

     “United States” means the United States of America.

     “U.S. Bank” has the meaning specified in the introductory paragraph of the
Participation Agreement.

     “Warranty Bill of Sale” means the warranty (as to title) bill of sale covering the
Aircraft executed by Manufacturer or an affiliate of Manufacturer in favor of Company and
specifically referring to each Engine, as well as the Airframe, constituting a part of the
Aircraft.28

     “Warranty Rights” means all right and interest of Company in, to and under Parts 1, 2,
3, 4 and 6 of the Product Assurance Document attached as Exhibit C to the Aircraft General Terms
Agreement AGTA-DAL, dated as of October 21, 1997, but only to the extent the same relate to
continuing rights of Company in respect of any warranty or indemnity, express or implied, pursuant
to the Product Assurance Document with respect to the Airframe, it being understood that the
Warranty Rights exclude any and all other right, title and interest of Company in, to and under the
Purchase Agreement and that the Warranty Rights are subject to the terms of the Manufacturer’s
Consent.

 

			
	28	 	To be updated, as necessary, in the event that
one or more of the Engines are not the engines referred to in such bill of
sale.

Indenture and Security Agreement (2011-1 EETC)
[Reg. No.]

18exv10w1

Exhibit 10.1

EXECUTION VERSION

AMENDED AND RESTATED

REVOLVING CREDIT AND TERM LOAN AGREEMENT

dated as of April 4, 2011

among

STRAYER EDUCATION, INC.,

as Borrower

THE LENDERS FROM TIME TO TIME PARTY HERETO

and

SUNTRUST BANK

as Administrative Agent

 

SUNTRUST ROBINSON HUMPHREY, INC.,

and

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

as Joint Lead Arrangers and Joint Book Managers

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	ARTICLE 1 DEFINITIONS; CONSTRUCTION
	 	 	1	 
	 
	 	 	 	 
	Section 1.1. Definitions
	 	 	1	 
	Section 1.2. Classifications of Loans and Borrowings
	 	 	28	 
	Section 1.3. Accounting Terms and Determination
	 	 	28	 
	Section 1.4. Terms Generally
	 	 	28	 
	Section 1.5. Letter of Credit Amounts
	 	 	29	 
	 
	 	 	 	 
	ARTICLE 2 AMOUNT AND TERMS OF THE COMMITMENTS
	 	 	29	 
	 
	 	 	 	 
	Section 2.1. General Description of Facilities
	 	 	29	 
	Section 2.2. Revolving Loans
	 	 	29	 
	Section 2.3. Procedure for Revolving Borrowings
	 	 	29	 
	Section 2.4. Swingline Commitment
	 	 	30	 
	Section 2.5. Reserved
	 	 	32	 
	Section 2.6. Term Loans
	 	 	32	 
	Section 2.7. Funding of Borrowings
	 	 	32	 
	Section 2.8. Interest Elections
	 	 	33	 
	Section 2.9. Optional Reduction and Termination of Commitments
	 	 	34	 
	Section 2.10. Repayment of Loans
	 	 	35	 
	Section 2.11. Evidence of Indebtedness
	 	 	35	 
	Section 2.12. Optional Prepayments
	 	 	36	 
	Section 2.13. Mandatory Prepayments
	 	 	36	 
	Section 2.14. Interest on Loans
	 	 	38	 
	Section 2.15. Fees
	 	 	39	 
	Section 2.16. Computation of Interest and Fees
	 	 	40	 
	Section 2.17. Inability to Determine Interest Rates
	 	 	40	 
	Section 2.18. Illegality
	 	 	41	 
	Section 2.19. Increased Costs
	 	 	41	 
	Section 2.20. Funding Indemnity
	 	 	42	 
	Section 2.21. Taxes
	 	 	43	 
	Section 2.22. Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	44	 
	Section 2.23. Letters of Credit
	 	 	46	 
	Section 2.24. Intentionally Deleted
	 	 	51	 
	Section 2.25. Mitigation of Obligations
	 	 	51	 
	Section 2.26. Replacement of Lenders
	 	 	52	 
	Section 2.27. Defaulting Lender
	 	 	52	 
	Section 2.28. Certain Permitted Amendments
	 	 	53	 
	 
	 	 	 	 
	ARTICLE 3 CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT
	 	 	55	 
	 
	 	 	 	 
	Section 3.1. Conditions To Effectiveness
	 	 	55	 
	Section 3.2. Each Credit Event
	 	 	58	 

 

 

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	Section 3.3. Delivery of Documents
	 	 	59	 
	 
	 	 	 	 
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES
	 	 	59	 
	 
	 	 	 	 
	Section 4.1. Existence; Power
	 	 	59	 
	Section 4.2. Organizational Power; Authorization
	 	 	59	 
	Section 4.3. Governmental Approvals; No Conflicts
	 	 	59	 
	Section 4.4. Financial Statements
	 	 	60	 
	Section 4.5. Litigation and Environmental Matters
	 	 	60	 
	Section 4.6. Compliance with Laws and Agreements
	 	 	60	 
	Section 4.7. Investment Company Act, Etc.
	 	 	60	 
	Section 4.8. Taxes
	 	 	61	 
	Section 4.9. Margin Regulations
	 	 	61	 
	Section 4.10. ERISA
	 	 	61	 
	Section 4.11. Ownership of Property
	 	 	61	 
	Section 4.12. Disclosure
	 	 	62	 
	Section 4.13. Labor Relations
	 	 	62	 
	Section 4.14. Subsidiaries
	 	 	62	 
	Section 4.15. Insolvency
	 	 	62	 
	Section 4.16. Reserved
	 	 	63	 
	Section 4.17. OFAC
	 	 	63	 
	Section 4.18. Patriot Act
	 	 	63	 
	Section 4.19. Security Documents
	 	 	63	 
	 
	 	 	 	 
	ARTICLE 5 AFFIRMATIVE COVENANTS
	 	 	64	 
	 
	 	 	 	 
	Section 5.1. Financial Statements and Other Information
	 	 	64	 
	Section 5.2. Notices of Material Events
	 	 	66	 
	Section 5.3. Existence; Conduct of Business
	 	 	66	 
	Section 5.4. Compliance with Laws, Etc; Maintenance of Licenses and Accreditations
	 	 	67	 
	Section 5.5. Payment of Obligations
	 	 	67	 
	Section 5.6. Books and Records
	 	 	67	 
	Section 5.7. Visitation, Inspection, Etc.
	 	 	67	 
	Section 5.8. Maintenance of Properties; Insurance
	 	 	67	 
	Section 5.9. Use of Proceeds and Letters of Credit
	 	 	68	 
	Section 5.10. Intentionally Deleted
	 	 	68	 
	Section 5.11. Additional Subsidiaries
	 	 	68	 
	Section 5.12. Further Assurances
	 	 	68	 
	 
	 	 	 	 
	ARTICLE 6 FINANCIAL COVENANTS
	 	 	69	 
	 
	 	 	 	 
	Section 6.1. Minimum EBITDA
	 	 	69	 
	Section 6.2. Interest Coverage Ratio
	 	 	69	 
	Section 6.3. Unrestricted Liquidity
	 	 	70	 
	Section 6.4. Minimum Consolidated Tangible Net Worth
	 	 	70	 
	 
	 	 	 	 
	ARTICLE 7 NEGATIVE COVENANTS
	 	 	70	 

ii

 

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	Section 7.1. Indebtedness and Preferred Stock
	 	 	70	 
	Section 7.2. Negative Pledge
	 	 	71	 
	Section 7.3. Fundamental Changes
	 	 	72	 
	Section 7.4. Investments, Loans, Etc.
	 	 	72	 
	Section 7.5. Restricted Payments
	 	 	73	 
	Section 7.6. Sale of Assets
	 	 	74	 
	Section 7.7. Transactions with Affiliates
	 	 	74	 
	Section 7.8. Restrictive Agreements
	 	 	75	 
	Section 7.9. Sale and Leaseback Transactions
	 	 	75	 
	Section 7.10. Hedging Transactions
	 	 	75	 
	Section 7.11. Amendment to Material Documents
	 	 	76	 
	Section 7.12. Intentionally Deleted
	 	 	76	 
	Section 7.13. Accounting Changes
	 	 	76	 
	 
	 	 	 	 
	ARTICLE 8 EVENTS OF DEFAULT
	 	 	76	 
	 
	 	 	 	 
	Section 8.1. Events of Default
	 	 	76	 
	Section 8.2. Application of Proceeds from Collateral
	 	 	79	 
	 
	 	 	 	 
	ARTICLE 9 THE ADMINISTRATIVE AGENT
	 	 	80	 
	 
	 	 	 	 
	Section 9.1. Appointment of Administrative Agent
	 	 	80	 
	Section 9.2. Nature of Duties of Administrative Agent
	 	 	80	 
	Section 9.3. Lack of Reliance on the Administrative Agent
	 	 	81	 
	Section 9.4. Certain Rights of the Administrative Agent
	 	 	81	 
	Section 9.5. Reliance by Administrative Agent
	 	 	81	 
	Section 9.6. The Administrative Agent in its Individual Capacity
	 	 	82	 
	Section 9.7. Successor Administrative Agent
	 	 	82	 
	Section 9.8. Authorization to Execute other Loan Documents
	 	 	83	 
	Section 9.9. Benefits of Article 9
	 	 	84	 
	Section 9.10. Titled Agents
	 	 	84	 
	 
	 	 	 	 
	ARTICLE 10 MISCELLANEOUS
	 	 	84	 
	 
	 	 	 	 
	Section 10.1. Notices
	 	 	84	 
	Section 10.2. Waiver; Amendments
	 	 	86	 
	Section 10.3. Expenses; Indemnification
	 	 	88	 
	Section 10.4. Successors and Assigns
	 	 	89	 
	Section 10.5. Governing Law; Jurisdiction; Consent to Service of Process
	 	 	93	 
	Section 10.6. WAIVER OF JURY TRIAL
	 	 	94	 
	Section 10.7. Right of Setoff
	 	 	94	 
	Section 10.8. Counterparts; Integration
	 	 	95	 
	Section 10.9. Survival
	 	 	95	 
	Section 10.10. Severability
	 	 	96	 
	Section 10.11. Confidentiality
	 	 	96	 
	Section 10.12. Interest Rate Limitation
	 	 	96	 
	Section 10.13. Waiver of Effect of Corporate Seal
	 	 	96	 

iii

 

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	Section 10.14. Patriot Act
	 	 	97	 
	Section 10.15. Publicity
	 	 	97	 

iv

 

	 	 	 	 	 	 	 

	Schedules	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Schedule I
	 	-
	 	Applicable Margin and Applicable Percentage
	 

	 	Schedule II
	 	-
	 	Commitment Amounts
	 

	 	Schedule 2.23
	 	-
	 	Existing Letters of Credit
	 

	 	Schedule 4.5
	 	-
	 	Environmental Matters
	 

	 	Schedule 4.14
	 	-
	 	Subsidiaries
	 

	 	Schedule 4.19
	 	-
	 	Real Property
	 

	 	Schedule 7.1
	 	-
	 	Outstanding Indebtedness
	 

	 	Schedule 7.2
	 	-
	 	Existing Liens
	 

	 	Schedule 7.4
	 	-
	 	Existing Investments
	 
	 	 	 	 	 	 
	Exhibits	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Exhibit A
	 	-
	 	Form of Revolving Credit Note
	 

	 	Exhibit B
	 	-
	 	Form of Term Note
	 

	 	Exhibit C
	 	-
	 	Reserved
	 

	 	Exhibit D
	 	-
	 	Form of Swingline Note
	 

	 	Exhibit E
	 	-
	 	Form of Assignment and Assumption
	 

	 	Exhibit F
	 	-
	 	Form of Amended and Restated Subsidiary Guaranty Agreement
	 

	 	Exhibit G
	 	-
	 	Form of Security Agreement
	 

	 	Exhibit H
	 	-
	 	Form of Pledge Agreement
	 
	 	 	 	 	 	 
	 

	 	Exhibit 2.3
	 	-
	 	Form of Notice of Revolving Borrowing
	 

	 	Exhibit 2.4
	 	-
	 	Form of Notice of Swingline Borrowing
	 

	 	Exhibit 2.8
	 	-
	 	Form of Notice of Conversion/Continuation
	 

	 	Exhibit 5.1(d)
	 	-
	 	Form of Compliance Certificate

v

 

AMENDED AND RESTATED

REVOLVING CREDIT AND TERM LOAN AGREEMENT

     THIS AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT (this “Agreement”)
is made and entered into as of April 4, 2011, by and among STRAYER EDUCATION, INC., a Maryland
corporation (the “Borrower”), the several banks and other financial institutions and
lenders from time to time party hereto (the “Lenders”), and SUNTRUST BANK, in its capacity
as administrative agent for the Lenders (the “Administrative Agent”), as issuing bank (the
“Issuing Bank”) and as swingline lender (the “Swingline Lender”).

W I T N E S S E T H:

     WHEREAS, the Administrative Agent, certain of the Lenders and the Borrower are parties to a
Revolving Credit Agreement, dated as of January 3, 2011 (as amended, modified or supplemented to
the date hereof, the “Existing Credit Agreement”), pursuant to which such Lenders extend
credit to the Borrower;

     WHEREAS, the Borrower has requested that (a) the Revolving Loan Lenders establish a
$100,000,000 revolving credit facility in favor of, and (b) the Term Loan Lenders make term loans
in an aggregate principal amount equal to $100,000,000 to, the Borrower;

     WHEREAS, subject to the terms and conditions of this Agreement, which amends and restates the
Existing Credit Agreement in its entirety, the Revolving Loan Lenders, the Term Loan Lenders, the
Issuing Bank and the Swingline Lender to the extent of their respective Commitments as defined
herein, are willing severally to establish the requested revolving credit facility, letter of
credit subfacility and the swingline subfacility in favor of, and severally to make the term loans
to, the Borrower.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained,
the Borrower, the Lenders, the Administrative Agent, the Issuing Bank and the Swingline Lender
agree as follows:

ARTICLE 1

DEFINITIONS; CONSTRUCTION

     Section 1.1. Definitions. In addition to the other terms defined herein, the
following terms used herein shall have the meanings herein specified (to be equally applicable to
both the singular and plural forms of the terms defined):

     “Accepting Lender” shall have the meaning provided in Section 2.28(a).

     “Accreditor” shall mean any entity or organization, whether governmental or
government-chartered, private or quasi-private, which engages in the granting or withholding of
accreditation of post-secondary education institutions or of educational programs provided by such
institutions in accordance with prescribed standards and procedures.

 

 

     “Adjusted LIBO Rate” shall mean, with respect to each Interest Period for a Eurodollar
Borrowing, the rate per annum obtained by dividing (i) LIBOR for such Interest Period by (ii) a
percentage equal to 1.00 minus the Eurodollar Reserve Percentage.

     “Administrative Questionnaire” shall mean, with respect to each Lender, an
administrative questionnaire in the form prepared by the Administrative Agent and submitted to the
Administrative Agent duly completed by such Lender.

     “Affiliate” shall mean, as to any Person, any other Person that directly, or
indirectly through one or more intermediaries, Controls, is Controlled by, or is under common
Control with, such Person. For the purposes of this definition, “Control” shall mean the power,
directly or indirectly, either to (i) vote 5% or more of the securities having ordinary voting
power for the election of directors (or persons performing similar functions) of a Person or (ii)
direct or cause the direction of the management and policies of a Person, whether through the
ability to exercise voting power, by control or otherwise. The terms “Controlling”, “Controlled
by”, and “under common Control with” have the meanings correlative thereto.

     “Aggregate Revolving Commitment Amount” shall mean the aggregate principal amount of
the Aggregate Revolving Commitments from time to time. On the Closing Date, the Aggregate
Revolving Commitment Amount equals $100,000,000.

     “Aggregate Revolving Commitments” shall mean, collectively, all Revolving Commitments
of all Lenders at any time outstanding.

     “Applicable Lending Office” shall mean, for each Lender and for each Type of Loan, the
“Lending Office” of such Lender (or an Affiliate of such Lender) designated for such Type of Loan
in the Administrative Questionnaire submitted by such Lender or such other office of such Lender
(or an Affiliate of such Lender) as such Lender may from time to time specify to the Administrative
Agent and the Borrower as the office by which its Loans of such Type are to be made and maintained.

     “Applicable Margin” shall mean, as of any date, with respect to interest on all
Revolving Loans and Term Loans outstanding on any date, or the letter of credit fee, as the case
may be, a percentage per annum determined by reference to the applicable Leverage Ratio from time
to time in effect as set forth on Schedule I; provided, that a change in the
Applicable Margin resulting from a change in the Leverage Ratio shall be effective on the second
Business Day after which the Borrower delivers the financial statements required by Section
5.1(a) or (b) and the Compliance Certificate required by Section 5.1(d);
provided, further, that if at any time the Borrower shall have failed to deliver
such financial statements and such Compliance Certificate when so required, the Applicable Margin
shall be at Level III as set forth on Schedule I until such time as such financial
statements and Compliance Certificate are delivered, at which time the Applicable Margin shall be
determined as provided above; and provided, further, that in the event that
any financial statement delivered pursuant to Section 5.1(a) or (b) or any
Compliance Certificate delivered pursuant to Section 5.1(d) is shown to be inaccurate
(regardless of whether this Agreement or the Commitments are in effect when such inaccuracy is
discovered), and such inaccuracy, if corrected, would have led to the application of a higher
Applicable Margin for any period (an “Applicable Margin Period”) than the Applicable Margin
applied for such Applicable

2

 

Margin Period, and only in such case, then the Borrower shall immediately (i) deliver to the
Administrative Agent a corrected Compliance Certificate for such Applicable Margin Period, (ii)
determine the Applicable Margin for such Applicable Margin Period based upon the corrected
Compliance Certificate, and (iii) immediately pay to the Administrative Agent the accrued
additional interest owing as a result of such increased Applicable Margin for such Applicable
Margin Period, which payment shall be promptly applied by the Administrative Agent in accordance
with Section 2.22. The provisions of this definition are in addition to rights of the
Administrative Agent and Lenders with respect to Section 2.14(c) and Article 8 and
other of their respective rights under this Agreement. Notwithstanding the foregoing, the
Applicable Margin from the Closing Date until the financial statements and Compliance Certificate
for the Fiscal Quarter ending December 31, 2010, are required to be delivered shall be at Level I
as set forth on Schedule I.

     “Applicable Percentage” shall mean, as of any date, with respect to the commitment fee
as of any date, the percentage per annum determined by reference to the applicable Leverage Ratio
in effect on such date as set forth on Schedule I; provided, that a change in the
Applicable Percentage resulting from a change in the Leverage Ratio shall be effective on the
second Business Day after which the Borrower delivers the financial statements required by
Section 5.1(a) or (b) and the Compliance Certificate required by Section
5.1(d); provided further, that if at any time the Borrower shall have failed to
deliver such financial statements and such Compliance Certificate, the Applicable Percentage shall
be at Level III as set forth on Schedule I until such time as such financial statements and
Compliance Certificate are delivered, at which time the Applicable Percentage shall be determined
as provided above; and provided, further, that in the event that any
financial statement delivered pursuant to Section 5.1(a) or (b) or any Compliance
Certificate delivered pursuant to Section 5.1(d) is shown to be inaccurate (regardless of
whether this Agreement or the Commitments are in effect when such inaccuracy is discovered), and
such inaccuracy, if corrected, would have led to the application of a higher Applicable Percentage
for any period (an “Applicable Percentage Period”) than the Applicable Percentage applied
for such Applicable Percentage Period, and only in such case, then the Borrower shall immediately
(i) deliver to the Administrative Agent a corrected Compliance Certificate for such Applicable
Percentage Period, (ii) determine the Applicable Percentage for such Applicable Percentage Period
based upon the corrected Compliance Certificate, and (iii) immediately pay to the Administrative
Agent the accrued additional commitment fees owing as a result of such increased Applicable
Percentage for such Applicable Percentage Period, which payment shall be promptly applied by the
Administrative Agent in accordance with Section 2.22. For purposes of calculating the
Applicable Percentage only, the Loans shall be deemed used to the extent of the then outstanding
Revolving Loans plus the sum of (x) the aggregate undrawn amount of all outstanding Letters
of Credit plus (y) the aggregate amount of all unreimbursed LC Disbursements. The
provisions of this definition are in addition to rights of the Administrative Agent and Lenders
with respect to Section 2.14(c) and Article 8 and other of their respective rights
under this Agreement. Notwithstanding the foregoing, the Applicable Percentage for the commitment
fee from the Closing Date until the financial statements and Compliance Certificate for the Fiscal
Quarter ending December 31, 2010, are required to be delivered shall be at Level I as set forth on
Schedule I.

     “Approved Fund” shall mean any Person (other than a natural Person) that is (or will
be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar

3

 

extensions of credit in the ordinary course of its business and that is administered or
managed by (i) a Lender, (ii) an Affiliate of a Lender or (iii) an entity or an Affiliate of an
entity that administers or manages a Lender.

     “Assignment and Assumption” shall mean an Assignment and Assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section
10.4(b)) and accepted by the Administrative Agent, in the form of Exhibit E attached
hereto or any other form approved by the Administrative Agent.

     “Availability Period” shall mean the period from the Closing Date to the Revolving
Commitment Termination Date.

     “Base Rate” shall mean the highest of (i) the per annum rate which the Administrative
Agent publicly announces from time to time to be its prime lending rate, as in effect from time to
time, (ii) the Federal Funds Rate, as in effect from time to time, plus one-half of one percent
(0.50%) or (iii) the one-month Index Rate. The Administrative Agent’s prime lending rate is a
reference rate and does not necessarily represent the lowest or best rate charged to customers.
The Administrative Agent may make commercial loans or other loans at rates of interest at, above or
below the Administrative Agent’s prime lending rate. Each change in the Administrative Agent’s
prime lending rate shall be effective from and including the date such change is publicly announced
as being effective.

     “Borrowing” shall mean a borrowing consisting of (i) Loans of the same Class and Type,
made, converted or continued on the same date and in the case of Eurodollar Loans, as to which a
single Interest Period is in effect, or (ii) a Swingline Loan.

     “Business Day” shall mean (i) any day other than a Saturday, Sunday or other day on
which commercial banks in Richmond, Virginia are authorized or required by law to close and (ii) if
such day relates to a Borrowing of, a payment or prepayment of principal or interest on, a
conversion of or into, or an Interest Period for, an Index Rate Loan or Eurodollar Loan or a notice
with respect to any of the foregoing, any day on which dealings in Dollars are carried on in the
London interbank market.

     “Capital Expenditures” shall mean for any period, without duplication, (i) the
additions to property, plant and equipment and other capital expenditures of the Borrower and its
Subsidiaries that are (or would be) set forth on a consolidated statement of cash flows of the
Borrower for such period prepared in accordance with GAAP and (ii) Capital Lease Obligations
incurred by the Borrower and its Subsidiaries during such period.

     “Capital Lease Obligations” of any Person shall mean all obligations of such Person to
pay rent or other amounts under any lease (or other arrangement conveying the right to use) of real
or personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

     “Capital Stock” shall mean any capital stock (or in the case of a partnership or
limited liability company, the partners’ or members’ equivalent equity interest) of the Borrower or
any

4

 

of its Subsidiaries (to the extent issued to a Person other than the Borrower), whether common
or preferred.

     “Cash Management Swingline Loans” shall have the meaning assigned to such term in
Section 2.4(b).

     “Change in Control” shall mean the occurrence of one or more of the following events:
(i) any sale, lease, exchange or other transfer (in a single transaction or a series of related
transactions) of all or substantially all of the assets of the Borrower to any Person or “group”
(within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and
Exchange Commission thereunder in effect on the date hereof), (ii) the acquisition of ownership,
directly or indirectly, beneficially or of record, by any Person or “group” (within the meaning of
the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission
thereunder as in effect on the date hereof) of 30% or more of the outstanding shares of the voting
stock of the Borrower or (iii) occupation of a majority of the seats (other than vacant seats) on
the board of directors of the Borrower by Persons who were neither (a) nominated by the current
board of directors nor (b) appointed by directors so nominated.

     “Change in Law” shall mean (i) the adoption of any applicable law, rule or regulation
after the date of this Agreement, (ii) any change in any applicable law, rule or regulation, or any
change in the interpretation or application thereof, by any Governmental Authority after the date
of this Agreement, or (iii) compliance by any Lender (or its Applicable Lending Office) or the
Issuing Bank (or for purposes of Section 2.19(b), by such Lender’s or the Issuing Bank’s
parent corporation, if applicable) with any request, guideline or directive (whether or not having
the force of law) of any Governmental Authority made or issued after the date of this Agreement
(and for purposes of this Agreement, the Dodd-Frank Wall Street Reform and Consumer Protection Act
and all requests, guidelines and directions in connection therewith (the “Dodd-Frank Act”) are
deemed to have been adopted and gone into effect after the date hereof).

     “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Revolving Loans, Swingline Loans or Term Loans and when
used in reference to any Commitment, refers to whether such Commitment is a Revolving Commitment, a
Swingline Commitment or a Term Loan Commitment.

     “Closing Date” shall mean the date on which the conditions precedent set forth in
Section 3.1 and, if a Loan or Letter of Credit is requested, Section 3.2(a),
(b) and (f), have been satisfied or waived in accordance with Section 10.2.

     “Closing Date Legal Costs” shall have the meaning given to such term in Section
10.3(a).

     “Code” shall mean the Internal Revenue Code of 1986, as amended and in effect from
time to time.

     “Collateral” shall mean all property and assets of the Loan Parties, now owned or
hereafter acquired, upon which a Lien is purported to be created by any Security Document, other
than Excluded Collateral.

5

 

     “Commitment” shall mean a Revolving Commitment, a Swingline Commitment or a Term Loan
Commitment or any combination thereof (as the context shall permit or require).

     “Compliance Certificate” shall mean a certificate from the principal executive officer
or the principal financial officer of the Borrower in the form of, and containing the
certifications set forth in, the certificate attached hereto as Exhibit 5.1(d).

     “Consolidated EBIT” shall mean, for the Borrower and its Subsidiaries for any period,
an amount equal to the sum of (i) Consolidated Net Income for such period plus (ii) to the extent
deducted in determining Consolidated Net Income for such period, (A) Consolidated Interest Expense,
(B) income tax expense determined on a consolidated basis in accordance with GAAP, (C) the amount
of any charges associated with the grant of any share based payment awards to employees, officers,
directors or consultants and (D) all other non-cash charges acceptable to the Required Lenders, as
all of the foregoing are determined on a consolidated basis in accordance with GAAP, in each case
for such period.

     “Consolidated EBITDA” shall mean, for the Borrower and its Subsidiaries for any
period, an amount equal to the sum of (i) Consolidated Net Income for such period plus (ii) to the
extent deducted in determining Consolidated Net Income for such period, (A) Consolidated Interest
Expense, (B) income tax expense determined on a consolidated basis in accordance with GAAP, (C)
depreciation and amortization determined on a consolidated basis in accordance with GAAP, (D) the
amount of any charges associated with the grant of any share based payment awards to employees,
officers, directors or consultants and (E) all other non-cash charges acceptable to the Required
Lenders, as all of the foregoing are determined on a consolidated basis in accordance with GAAP, in
each case for such period.

     “Consolidated Interest Expense” shall mean, for the Borrower and its Subsidiaries for
any period determined on a consolidated basis in accordance with GAAP, the sum of (i) total
interest expense, including without limitation the interest component of any payments in respect of
Capital Lease Obligations capitalized or expensed during such period (whether or not actually paid
during such period) plus (ii) the net amount payable (or minus the net amount receivable) under
Hedging Transactions during such period (whether or not actually paid or received during such
period); provided, however, that Consolidated Interest Expense shall exclude
amortization of debt issuance costs and other deferred financing fees incurred on or prior to the
Closing Date relating to the Existing Credit Agreement or this Agreement and the other Loan
Documents.

     “Consolidated Net Income” shall mean, for the Borrower and its Subsidiaries for any
period, the net income (or loss) of the Borrower and its Subsidiaries for such period determined on
a consolidated basis in accordance with GAAP, but excluding therefrom (to the extent otherwise
included therein) (i) any extraordinary gains or losses, (ii) any gains attributable to write-ups
of assets, (iii) any equity interest of the Borrower or any Subsidiary of the Borrower in the
unremitted earnings of any Person that is not a Subsidiary and (iv) any income (or loss) of any
Person accrued prior to the date it becomes a Subsidiary or is merged into or consolidated with the
Borrower or any Subsidiary on the date that such Person’s assets are acquired by the Borrower or
any Subsidiary.

6

 

     “Consolidated Tangible Net Worth” shall mean, as of any date, (i) the total assets of
the Borrower and its Subsidiaries that would be reflected on the Borrower’s consolidated balance
sheet as of such date prepared in accordance with GAAP, after eliminating all amounts properly
attributable to minority interests, if any, in the stock and surplus of Subsidiaries, minus
(ii) the sum of (x) the total liabilities of the Borrower and its Subsidiaries that would be
reflected on the Borrower’s consolidated balance sheet as of such date prepared in accordance with
GAAP, (y) the amount of any write-up in the book value of any assets resulting from a revaluation
thereof or any write-up in excess of the cost of such assets acquired reflected on the consolidated
balance sheet of the Borrower as of such date prepared in accordance with GAAP and (z) the net book
amount of all assets of the Borrower and its Subsidiaries that would be classified as intangible
assets on a consolidated balance sheet of the Borrower as of such date prepared in accordance with
GAAP.

     “Consolidated Total Debt” shall mean, as of any date, all Indebtedness of the Borrower
and its Subsidiaries measured on a consolidated basis as of such date, but excluding Indebtedness
of the type described in subsection (xi) thereof.

     “Contractual Obligation” of any Person shall mean any provision of any security issued
by such Person or of any agreement, instrument or undertaking under which such Person is obligated
or by which it or any of the property in which it has an interest is bound.

     “Default” shall mean any condition or event that, with the giving of notice or the
lapse of time or both, would constitute an Event of Default.

     “Defaulting Lender” shall mean, at any time, a Lender (which the Administrative Agent
shall promptly notify the Borrower thereof) that (i) such Lender has failed for three or more
Business Days to comply with its obligations under this Agreement to make a Loan, make a payment to
the Issuing Bank in respect of a Letter of Credit and/or make a payment to the Swingline Lender in
respect of a Swingline Loan (each, a “funding obligation”), (ii) such Lender has notified the
Administrative Agent or the Borrower in writing, or has stated publicly, that it will not comply
with any such funding obligation hereunder, or has defaulted on its funding obligations under any
other loan agreement or credit agreement or other similar/other financing agreement, (iii) such
Lender has, for three or more Business Days, failed to confirm in writing to the Administrative
Agent, in response to a written request of the Administrative Agent, that it will comply with its
funding obligations hereunder, or (iv) a Lender Insolvency Event has occurred and is continuing
with respect to such Lender. Any determination that a Lender is a Defaulting Lender under clauses
(i) through (iv) above will be made by the Administrative Agent in its reasonable discretion acting
in good faith, but a failure of the Administrative Agent to make such a determination shall not be
determinative of the status of such Lender as not being a Defaulting Lender for purposes of this
Agreement. The Administrative Agent will promptly send to all parties hereto a copy of any notice
to the Borrower provided for in this definition.

     “Default Interest” shall have the meaning set forth in Section 2.14(c).

     “Disposition” shall have the meaning set forth in Section 7.6.

     “Dollar(s)” and the sign “$” shall mean lawful money of the United States of America.

7

 

     “Domestic Subsidiary” shall mean a direct or indirect Subsidiary of the Borrower
organized under the laws of the United States, one of the fifty states or commonwealths of the
United States or the District of Columbia.

     “Educational Licenses” shall mean all federal, state, and Accreditor licenses,
permits, authorizations, certifications, agreements, or similar approvals necessary under
applicable law and accreditation standards and procedures for SUI to operate as a post-secondary
educational institution as it currently operates or may operate from time to time during the term
of this Agreement.

     “ELP” means Education Loan Processing, Inc., a Virginia corporation.

     “Environmental Laws” shall mean all laws, rules, regulations, codes, ordinances,
orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or
entered into by or with any Governmental Authority, relating in any way to the environment,
preservation or reclamation of natural resources, the management, Release or threatened Release of
any Hazardous Material or to health and safety matters.

     “Environmental Liability” shall mean any liability, contingent or otherwise (including
any liability for damages, costs of environmental investigation and remediation, costs of
administrative oversight, fines, natural resource damages, penalties or indemnities), of the
Borrower or any Subsidiary directly or indirectly resulting from or based upon (i) any actual or
alleged violation of any Environmental Law, (ii) the generation, use, handling, transportation,
storage, treatment or disposal of any Hazardous Materials, (iii) any actual or alleged exposure to
any Hazardous Materials, (iv) the Release or threatened Release of any Hazardous Materials or (v)
any contract, agreement or other consensual arrangement pursuant to which liability is assumed or
imposed with respect to any of the foregoing.

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended
from time to time, and any successor statute.

     “ERISA Affiliate” shall mean any trade or business (whether or not incorporated),
which, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of
the Code or, solely for the purposes of Section 302 of ERISA and Section 412 of the Code, is
treated as a single employer under Section 414 of the Code.

     “ERISA Event” shall mean (i) any “reportable event”, as defined in Section 4043 of
ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which
the 30-day notice period is waived); (ii) the existence with respect to any Plan of an “accumulated
funding deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not
waived; (iii) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to any Plan; (iv) the
incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA
with respect to the termination of any Plan; (v) the receipt by the Borrower or any ERISA Affiliate
from the PBGC or a plan administrator appointed by the PBGC of any notice relating to an intention
to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (vi) the incurrence
by the Borrower or any of its ERISA Affiliates of any

8

 

liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer
Plan; or (vii) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by
any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the
imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected
to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

     “Eurodollar” when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, bears interest at a rate determined by reference to
the Adjusted LIBO Rate.

     “Eurodollar Reserve Percentage” shall mean the aggregate of the maximum reserve
percentages (including, without limitation, any emergency, supplemental, special or other marginal
reserves) expressed as a decimal (rounded upwards to the next 1/100th of 1%) in effect
on any day to which any Lender is subject with respect to the Adjusted LIBO Rate pursuant to
regulations issued by the Board of Governors of the Federal Reserve System (or any Governmental
Authority succeeding to any of its principal functions) with respect to eurocurrency funding
(currently referred to as “eurocurrency liabilities” under Regulation D). Eurodollar Loans shall
be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without
benefit of or credit for proration, exemptions or offsets that may be available from time to time
to any Lender under Regulation D. The Eurodollar Reserve Percentage shall be adjusted
automatically on and as of the effective date of any change in any reserve percentage.

     “Event of Default” shall have the meaning provided in Article 8.

     “Excluded Collateral” shall mean:

     (a) any lease, license, contract, property rights or agreement to which any Loan Party is a
party (including any Educational Licenses) or any of its respective rights or interests therein if
and for so long as the grant of a security interest therein shall constitute or result in (i) the
abandonment, invalidation or unenforceability of any right, right, title or interest of any Loan
Party therein or (ii) a breach or termination pursuant to the terms of, or a default under, any
such lease, license, contract, property rights or agreement or under applicable law (other than to
the extent that any such term would be rendered ineffective pursuant to Section 9-406, 9-407, 9-408
or 9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction or any
other applicable law); provided, however, that a security interest shall attach immediately (and
such lease, license, contract, property rights or agreement shall immediately cease to be Excluded
Collateral) at such time as the condition causing such abandonment, invalidation or
unenforceability shall be remedied, and, to the extent severable, shall attach immediately to any
portion of such lease, license, contract, property rights or agreement (and such portion of such
lease, license, contract, property rights or agreement shall immediately cease to be Excluded
Collateral) that does not result in any of the consequences specified in the foregoing clauses (i)
or (ii);

     (b) (i) funds that SUI receives from federal student financial aid programs under Title IV of
the Higher Education Act of 1965, as amended, and holds in a bank or investment account for federal
funds pursuant to 34 C.F.R. 668.163 (or any successor regulation) or otherwise in

9

 

trust pursuant to 34 C.F.R. 668.161(b) and (ii) any similar federal or state student financial
aid funds; and

     (c) any treasury stock of the Borrower that has not yet been retired.

     “Excluded Taxes” shall mean with respect to the Administrative Agent, any Lender, the
Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of
the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by
the United States of America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any Lender, in which its
applicable lending office is located, (b) any branch profits taxes imposed by the United States of
America or any similar tax imposed by any other jurisdiction in which any Lender is located and (c)
in the case of a Foreign Lender, any withholding tax that (i) is imposed on amounts payable to such
Foreign Lender at the time such Foreign Lender becomes a party to this Agreement, (ii) is imposed
on amounts payable to such Foreign Lender at any time that such Foreign Lender designates a new
lending office, other than taxes that have accrued prior to the designation of such lending office
that are otherwise not Excluded Taxes, and (iii) is attributable to such Foreign Lender’s failure
to comply with Section 2.21(e).

     “Exempt Student Financial Aid Funds” shall mean (i) funds that (A) SUI receives from
federal student financial aid programs under Title IV of the Higher Education Act of 1965, as
amended, and (B) students do not earn pursuant to 34 C.F.R. 668.22(e) (or any successor regulation)
and (ii) any similar federal or state student financial aid funds.

     “Existing Letters of Credit” means the letters of credit issued and outstanding under
the Existing Credit Agreement as set forth on Schedule 2.23.

     “Federal Funds Rate” shall mean, for any day, the rate per annum (rounded upwards, if
necessary, to the next 1/100th of 1%) equal to the weighted average of the rates on
overnight Federal funds transactions with member banks of the Federal Reserve System arranged by
Federal funds brokers, as published by the Federal Reserve Bank of New York on the next succeeding
Business Day or if such rate is not so published for any Business Day, the Federal Funds Rate for
such day shall be the average rounded upwards, if necessary, to the next 1/100th of 1% of the
quotations for such day on such transactions received by the Administrative Agent from three
Federal funds brokers of recognized standing selected by the Administrative Agent.

     “Fee Letter” shall mean that certain fee letter, dated as of March 4, 2011, executed
by STRH and SunTrust Bank and accepted by Borrower on March 7, 2011.

     “Fiscal Quarter” shall mean any fiscal quarter of the Borrower.

     “Fiscal Year” shall mean any fiscal year of the Borrower.

     “Foreign Lender” shall mean any Lender that is not a United States person under
Section 7701(a)(30) of the Code.

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     “Foreign Subsidiary” shall mean any Subsidiary that is organized under the laws of a
jurisdiction other than the United States, one of the fifty states or commonwealths of the United
States or the District of Columbia.

     “GAAP” shall mean generally accepted accounting principles in the United States
applied on a consistent basis and subject to the terms of Section 1.3.

     “Governmental Authority” shall mean the government of the United States of America,
any other nation or any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

     “Guarantee” of or by any Person (the “guarantor”) shall mean any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly and including any obligation, direct or
indirect, of the guarantor (i) to purchase or pay (or advance or supply funds for the purchase or
payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for
the purchase of) any security for the payment thereof, (ii) to purchase or lease property,
securities or services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (iii) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (iv) as an account party in respect of any
letter of credit or letter of guaranty issued in support of such Indebtedness or obligation;
provided, that the term “Guarantee” shall not include endorsements for collection or
deposits in the ordinary course of business. The amount of any Guarantee shall be deemed to be an
amount equal to the stated or determinable amount of the primary obligation in respect of which
Guarantee is made or, if not so stated or determinable, the maximum reasonably anticipated
liability in respect thereof (assuming such Person is required to perform thereunder) as determined
by such Person in good faith. The term “Guarantee” used as a verb has a corresponding meaning.

     “Hazardous Materials” shall mean all explosive or radioactive substances or wastes and
all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.

     “Hedging Obligations” of any Person shall mean any and all obligations of such Person,
whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired
under (i) any and all Hedging Transactions, (ii) any and all cancellations, buy backs, reversals,
terminations or assignments of any Hedging Transactions and (iii) any and all renewals, extensions
and modifications of any Hedging Transactions and any and all substitutions for any Hedging
Transactions.

     “Hedging Transaction” of any Person shall mean (a) any transaction (including an
agreement with respect to any such transaction) now existing or hereafter entered into by such

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Person that is a rate swap transaction, swap option, basis swap, forward rate transaction,
commodity swap, commodity option, equity or equity index swap or option, bond option, interest rate
option, foreign exchange transaction, cap transaction, floor transaction, collar transaction,
currency swap transaction, cross-currency rate swap transaction, currency option, spot transaction,
credit protection transaction, credit swap, credit default swap, credit default option, total
return swap, credit spread transaction, repurchase transaction, reverse repurchase transaction,
buy/sell-back transaction, securities lending transaction, or any other similar transaction
(including any option with respect to any of these transactions) or any combination thereof,
whether or not any such transaction is governed by or subject to any master agreement and (b) any
and all transactions of any kind, and the related confirmations, which are subject to the terms and
conditions of, or governed by, any form of master agreement published by the International Swaps
and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any
other master agreement (any such master agreement, together with any related schedules, a
“Master Agreement”), including any such obligations or liabilities under any Master
Agreement.

     “Indebtedness” of any Person shall mean, without duplication (i) all obligations of
such Person for borrowed money, (ii) all obligations of such Person evidenced by bonds, debentures,
notes or other similar instruments, (iii) all obligations of such Person in respect of the deferred
purchase price of property or services (other than trade payables incurred in the ordinary course
of business; provided, that for purposes of Section 8.1(g), trade payables overdue
by more than 120 days shall be included in this definition except to the extent that any of such
trade payables are being disputed in good faith and by appropriate measures), (iv) all obligations
of such Person under any conditional sale or other title retention agreement(s) relating to
property acquired by such Person, (v) all Capital Lease Obligations of such Person, (vi) all
obligations, contingent or otherwise, of such Person in respect of letters of credit, acceptances
or similar extensions of credit, (vii) all Guarantees of such Person of the type of Indebtedness
described in clauses (i) through (vi) above, (viii) all Indebtedness of a third party secured by
any Lien on property owned by such Person, whether or not such Indebtedness has been assumed by
such Person, (ix) all obligations of such Person, contingent or otherwise, to purchase, redeem,
retire or otherwise acquire for value any preferred or common stock of such Person (other than
voluntary repurchases of shares of Capital Stock and the exercise of options to purchase shares of
Capital Stock of the Borrower permitted by Sections 7.4(f) and 7.5(iii)), (x)
Off-Balance Sheet Liabilities and (xi) all Hedging Obligations. The Indebtedness of any Person
shall include the Indebtedness of any partnership or joint venture in which such Person is a
general partner or a joint venturer, except to the extent that the terms of such Indebtedness
provide that such Person is not liable therefor.

     “Indemnified Taxes” shall mean Taxes other than Excluded Taxes.

     “Index Rate” means that rate per annum effective on any Index Rate Determination Date
which is equal to the quotient of:

               (i) the rate per annum equal to the offered rate for deposits in U.S. dollars for a one (1)
month period, which rate appears on that page of Bloomberg reporting service, or such similar
service as determined by the Administrative Agent, that displays British Bankers’ Association
interest settlement rates for deposits in U.S. Dollars, as of 11:00 A.M. (London,

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England time) two (2) Business Days prior to the Index Rate Determination Date; provided, that
if no such offered rate appears on such page, the rate used for such period will be the per annum
rate of interest determined by the Administrative Agent to be the rate at which U.S. dollar
deposits for such period, are offered to the Administrative Agent in the London Inter-Bank Market
as of 11:00 A.M. (London, England time), on the day which is two (2) Business Days prior to the
Index Rate Determination Date, divided by

               (ii) a percentage equal to 1.00 minus the maximum reserve percentages (including any
emergency, supplemental, special or other marginal reserves) expressed as a decimal (rounded upward
to the next 1/100th of 1%) in effect on any day to which the Administrative Agent is subject with
respect to any Index Rate Loan pursuant to regulations issued by the Board of Governors of the
Federal Reserve System with respect to eurocurrency funding (currently referred to as “eurocurrency
liabilities” under Regulation D). This percentage will be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

     “Index Rate Borrowing” and “Index Rate Loan” when used in reference to any
Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, bears
interest at a rate determined by reference to the Index Rate, provided, that “Index Rate
Borrowing” and “Index Rate Loan” shall not be deemed to refer to any Base Rate Loan or
Base Rate Borrowing bearing interest at a rate determined by reference to the Index Rate.

     “Index Rate Determination Date” means the Closing Date and the first Business Day of
each calendar month thereafter.

     “Interest Coverage Ratio” shall mean, as of any date, the ratio of (i) the sum of (A)
Consolidated EBIT for the four consecutive Fiscal Quarters ending on or immediately prior to such
date, less (B) Capital Expenditures made during the four consecutive Fiscal Quarters ending on or
immediately prior to such date, less (C) Restricted Payments made by the Borrower in cash during
the four consecutive Fiscal Quarters ending on or immediately prior to such date (other than
repurchases of shares of Capital Stock) to (ii) Consolidated Interest Expense for the four
consecutive Fiscal Quarters ending on or immediately prior to such date. For purposes of
determining the Interest Coverage Ratio for the respective periods of four consecutive Fiscal
Quarters ending on June 30, 2011, September 30, 2011, and December 31, 2011, Consolidated Interest
Expense shall be deemed to be equal to (a) for the Fiscal Quarter ending on June 30, 2011,
Consolidated Interest Expense for the Fiscal Quarter then ended multiplied by 4, (b) for the Fiscal
Quarter ending on September 30, 2011, Consolidated Interest Expense for the period of two
consecutive Fiscal Quarters then ended multiplied by 2 and (c) for the Fiscal Quarter ending on
December 31, 2011, Consolidated Interest Expense for the period of three consecutive Fiscal
Quarters then ended multiplied by 1.33.

     “Interest Period” shall mean, with respect to any Eurodollar Borrowing, a period of
one, two, three or six months; provided, that:

               (i) the initial Interest Period for such Borrowing shall commence on the date of such
Borrowing (including the date of any conversion from a Borrowing of another

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Type), and each Interest Period occurring thereafter in respect of such Borrowing shall
commence on the day on which the next preceding Interest Period expires;

               (ii) if any Interest Period would otherwise end on a day other than a Business Day, such
Interest Period shall be extended to the next succeeding Business Day, unless such Business Day
falls in another calendar month, in which case such Interest Period would end on the next preceding
Business Day;

               (iii) any Interest Period which begins on the last Business Day of a calendar month or on a
day for which there is no numerically corresponding day in the calendar month at the end of such
Interest Period shall end on the last Business Day of such calendar month;

               (iv) each principal installment of the Term Loans shall have an Interest Period ending on each
installment payment date and the remaining principal balance (if any) of the Term Loans shall have
an Interest Period determined as set forth above; and

               (v) no Interest Period may extend beyond the Revolving Commitment Termination Date or the
Maturity Date.

     “Issuing Bank” shall mean SunTrust Bank or any other Lender that may agree to issue
Letters of Credit, each in its capacity as an issuer of Letters of Credit pursuant to Section
2.23.

     “LC Commitment” shall mean that portion of the Aggregate Revolving Commitment Amount
that may be used by the Borrower for the issuance of Letters of Credit in an aggregate face amount
not to exceed $50,000,000.

     “LC Disbursement” shall mean a payment made by the Issuing Bank pursuant to a Letter
of Credit.

     “LC Documents” shall mean all applications, agreements and instruments relating to the
Letters of Credit (but excluding the Letters of Credit).

     “LC Exposure” shall mean, at any time, the sum of (i) the aggregate undrawn amount of
all outstanding Letters of Credit at such time, plus (ii) the aggregate amount of all LC
Disbursements that have not been reimbursed by or on behalf of the Borrower at such time. The LC
Exposure of any Lender shall be its Pro Rata Share of the total LC Exposure at such time.

     “Lender Insolvency Event” shall mean that (i) a Lender or its Parent Company is
insolvent, or is generally unable to pay its debts as they become due, or makes a general
assignment for the benefit of its creditors, or (ii) such Lender or its Parent Company is the
subject of a bankruptcy, insolvency, reorganization, liquidation or similar proceeding, or a
receiver, trustee, conservator, intervenor or sequestrator or the like has been appointed for such
Lender or its Parent Company, or such Lender or its Parent Company has taken any action in
furtherance of or indicating its consent to or acquiescence in any such proceeding or appointment.

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     “Lenders” shall have the meaning assigned to such term in the opening paragraph of
this Agreement and shall include, where appropriate, the Swingline Lender.

     “Letter of Credit” shall mean any stand-by letter of credit issued pursuant to
Section 2.23 by the Issuing Bank for the account of the Borrower pursuant to the LC
Commitment and the Existing Letters of Credit. For purposes of computing the amount available to
be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in
accordance with Section 1.5. For all purposes of this Agreement, if on any date of
determination a Letter of Credit has expired by its terms but any amount may still be drawn
thereunder by reason of the operation of Rule 3.14 of the “International Standby Practices 1998”
(ISP98) (or such later revision as may be published by the Institute of International Banking Law &
Practice on any date any Letter of Credit may be issued), such Letter of Credit shall be deemed to
be “outstanding” in the amount so remaining available to be drawn.

     “Leverage Ratio” shall mean, as of any date, the ratio of (i) Consolidated Total Debt
as of such date to (ii) Consolidated EBITDA for the four consecutive Fiscal Quarters ending on or
immediately prior to such date.

     “LIBOR” shall mean, for any Interest Period with respect to a Eurodollar Loan, the
rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on Reuters
Screen LIBOR01 Page (or any successor page) as the London interbank offered rate for deposits in
Dollars at approximately 11:00 a.m. (London time) two Business Days prior to the first day of such
Interest Period for a term comparable to such Interest Period. If for any reason such rate is not
available, LIBOR shall be, for any Interest Period, the rate per annum reasonably determined by the
Agent as the rate of interest at which Dollar deposits in the approximate amount of the Eurodollar
Loan comprising part of such borrowing would be offered by the Agent to major banks in the London
interbank Eurodollar market at their request at or about 10:00 a.m. (Richmond, Virginia time) two
Business Days prior to the first day of such Interest Period for a term comparable to such Interest
Period.

     “Lien” shall mean any mortgage, pledge, security interest, lien (statutory or
otherwise), charge, encumbrance, hypothecation, assignment, cash collateral arrangement, or other
arrangement having the practical effect of the foregoing or any preference, priority or other
security agreement or preferential arrangement of any kind or nature whatsoever (including any
conditional sale or other title retention agreement and any capital lease having the same economic
effect as any of the foregoing).

     “Loan Documents” shall mean, collectively, this Agreement, the Notes (if any), the LC
Documents, the Subsidiary Guaranty Agreement, the Security Documents, all Notices of Borrowing, all
Notices of Conversion/Continuation, all Compliance Certificates, each Assignment and Assumption,
any Loan Modification Agreement and any and all other instruments, agreements, documents and
writings executed in connection with any of the foregoing (other than any agreement delivered in
connection with Hedging Obligations or Treasury Management Obligations).

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     “Loan Modification Agreement” shall mean a Loan Modification Agreement in form and
substance reasonably satisfactory to the Administrative Agent and the Borrower, among the Borrower,
the other Loan Parties, one or more Accepting Lenders and the Administrative Agent.

     “Loan Modification Offer” shall have the meaning provided in Section 2.28(a).

     “Loan Parties” shall mean the Borrower and the Subsidiary Loan Parties.

     “Loans” shall mean all Revolving Loans, Swingline Loans and Term Loans in the
aggregate or any of them, as the context shall require.

     “Material Adverse Effect” shall mean, with respect to any event, act, condition or
occurrence of whatever nature (including any adverse determination in any litigation, arbitration,
or governmental investigation or proceeding), whether singularly or in conjunction with any other
event or events, act or acts, condition or conditions, occurrence or occurrences whether or not
related, a material adverse change in, or a material adverse effect on, (i) the business, results
of operations, financial condition, assets or liabilities of the Borrower and its Subsidiaries
taken as a whole (it being understood that fluctuations in the stock price of the Borrower, alone,
shall not be the determinant of the existence of a Material Adverse Effect under this clause (i)),
(ii) the ability of the Loan Parties to perform any of their respective obligations under the Loan
Documents, (iii) the rights and remedies of the Administrative Agent, the Issuing Bank, Swingline
Lender, and the Lenders under any of the Loan Documents, or (iv) the legality, validity or
enforceability of any of the Loan Documents.

     “Material Indebtedness” shall mean Indebtedness (other than the Loans and Letters of
Credit) and Hedging Obligations of the Borrower or any of its Subsidiaries, individually or in an
aggregate principal amount exceeding $5,000,000. For purposes of determining the amount of
attributed Indebtedness from Hedging Obligations, the “principal amount” of any Hedging Obligations
at any time shall be the Net Mark-to-Market Exposure of such Hedging Obligations.

     “Maturity Date” shall mean, with respect to the Term Loans, the earlier of (i) March
31, 2014, or (ii) the date on which the principal amount of all outstanding Term Loans have been
declared or automatically have become due and payable (whether by acceleration or otherwise).

     “Moody’s” shall mean Moody’s Investors Service, Inc., and, if such corporation shall
be dissolved or liquidated or shall no longer perform the functions of a securities rating agency,
“Moody’s” shall be deemed to refer to any other nationally recognized securities rating agency
designated by the Borrower with the consent of the Administrative Agent.

     “Multiemployer Plan” shall have the meaning set forth in Section 4001(a)(3) of ERISA.

     “Net Mark-to-Market Exposure” of any Person shall mean, as of any date of
determination with respect to any Hedging Obligation, the excess (if any) of all unrealized losses
over all unrealized profits of such Person arising from such Hedging Obligation. “Unrealized
losses” shall mean the fair market value of the cost to such Person of replacing the Hedging
Transaction giving rise to such Hedging Obligation as of the date of determination (assuming the
Hedging Transaction were to be terminated as of that date), and “unrealized profits” means the

16

 

fair market value of the gain to such Person of replacing such Hedging Transaction as of the
date of determination (assuming such Hedging Transaction were to be terminated as of that date).

     “Non-Defaulting Lender” shall mean, at any time, a Lender that is not a Defaulting
Lender or a Potential Defaulting Lender.

     “Notes” shall mean, collectively, the Revolving Credit Notes, the Swingline Note and
the Term Notes.

     “Notice of Conversion/Continuation” shall mean the notice given by the Borrower to the
Administrative Agent in respect of the conversion or continuation of an outstanding Borrowing as
provided in Section 2.8(b).

     “Notice of Revolving Borrowing” shall have the meaning as set forth in Section
2.3.

     “Notice of Swingline Borrowing” shall have the meaning as set forth in Section
2.4.

     “Notices of Borrowing” shall mean, collectively, the Notices of Revolving Borrowing
and the Notices of Swingline Borrowing.

     “Obligations” shall mean (a) all amounts owing by the Borrower to the Administrative
Agent, the Issuing Bank or any Lender (including the Swingline Lender) pursuant to or in connection
with this Agreement or any other Loan Document or otherwise with respect to any Loan or Letter of
Credit, including without limitation, all principal, interest (including any interest accruing
after the filing of any petition in bankruptcy or the commencement of any insolvency,
reorganization or like proceeding relating to the Borrower, whether or not a claim for post-filing
or post-petition interest is allowed in such proceeding), all reimbursement obligations, fees,
expenses, indemnification and reimbursement payments, costs and expenses (including all fees and
expenses of counsel to the Administrative Agent, the Issuing Bank and any Lender (including the
Swingline Lender) incurred, or required to be reimbursed, pursuant to this Agreement or any other
Loan Document), whether direct or indirect, absolute or contingent, liquidated or unliquidated, now
existing or hereafter arising hereunder or thereunder, (b) all Hedging Obligations owed by any Loan
Party to any Lender or Affiliate of any Lender or to any Person that was a Lender or an Affiliate
of a Lender at the time the applicable Hedging Transaction was entered into and (c) all Treasury
Management Obligations owed by any Loan Party to any Lender or Affiliate of any Lender or to any
Person that was a Lender or an Affiliate of a Lender at the time the applicable agreement giving
rise to such Treasury Management Obligations was entered into, together with all renewals,
extensions, modifications or refinancings of any of the foregoing.

     “Off-Balance Sheet Liabilities” of any Person shall mean (i) any repurchase obligation
or liability of such Person with respect to accounts or notes receivable sold by such Person, (ii)
any liability of such Person under any sale and leaseback transactions that do not create a
liability on the balance sheet of such Person, (iii) any Synthetic Lease Obligation or (iv) any
obligation arising with respect to any other transaction which is the functional equivalent of or
takes the place of borrowing but which does not constitute a liability on the balance sheet of such
Person.

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     “OSHA” shall mean the Occupational Safety and Health Act of 1970, as amended from time
to time, and any successor statute.

     “Other Taxes” shall mean any and all present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies arising from any payment made
hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this
Agreement or any other Loan Document.

     “Paid in Full,” “Pay in Full” or “Payment in Full” means, with respect
to any Obligations, (a) the payment in full in cash of all such Obligations (other than (i)
contingent indemnification obligations to the extent no claim giving rise thereto has been
asserted, (ii) Treasury Management Obligations (unless the Administrative Agent has commenced to
exercise its remedies pursuant to Section 8.1 and such Treasury Management Obligations are
then due and payable) and (iii) Hedging Obligations that, by their terms or in accordance any
consent obtained from the counterparty thereto, are not required to continue to be secured by the
Collateral under the Loan Documents) (unless the Administrative Agent has commenced to exercise its
remedies pursuant to Section 8.1 and such Hedging Obligations are then due and payable),
(b) the termination or expiration of all of the Commitments and (c) in connection with the
termination or expiration of the Revolving Commitment, either (i) the cancellation and return to
the Administrative Agent of all Letters of Credit or (ii) the cash collateralization (or the
delivery of a back-to-back letter of credit reasonably acceptable to the Administrative Agent in
form and content and from an issuer reasonably acceptable to the Administrative Agent) of all
Letters of Credit pursuant to the terms and conditions of this Agreement and otherwise in a manner
reasonably acceptable to the Administrative Agent.

     “Parent Company” shall mean, with respect to a Lender, the bank holding company (as
defined in Federal Reserve Board Regulation Y), if any, of such Lender, and/or Person owning,
beneficially or of record, directly or indirectly, a majority of the shares of such Lender.

     “Participant” shall have the meaning set forth in Section 10.4(d).

     “Payment Office” shall mean the office of the Administrative Agent located at 303
Peachtree Street, N.E., Atlanta, Georgia 30308, or such other location as to which the
Administrative Agent shall have given written notice to the Borrower and the other Lenders.

     “PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in
ERISA, and any successor entity performing similar functions.

     “PEI” shall mean Professional Education, Inc., a Maryland corporation and a Subsidiary
of the Borrower.

     “Permitted Acquisition” means any transaction consummated after the date hereof, in
which the Borrower or a Subsidiary acquires all or substantially all of the assets or outstanding
Capital Stock of any Person or any division or business line of any Person, or merges or
consolidates with any Person (with any such acquisition being referred to as an “Acquired
Business” and any such Person, division or line of business being the “Target”),
provided that, with respect to such transaction: (a) at the closing of such transaction, after
giving effect thereto, no Default or Event of Default shall have occurred and be continuing, (b)
the Target has Target

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Consolidated EBITDA for the period of twelve consecutive fiscal months ending as of the end of
the most recent Fiscal Quarter prior to the consummation of the Target transaction in an amount of
not less than $0, (c) such acquisition is not a “hostile” acquisition and has been approved by the
Board of Directors and/or shareholders of the Borrower, the applicable Subsidiary and the Target,
(d) the Target is not subject to pending insolvency proceedings, nor has it expressed in writing
its intention to commence a voluntary case or other proceeding, to file any petition seeking
liquidation, reorganization or other relief under any federal, state or foreign bankruptcy,
insolvency or other similar law or to seek the appointment of a custodian, trustee, receiver,
liquidator or other similar official of it or any substantial part of its property, or to consent
to the institution of, or fail to contest in a timely and appropriate manner, any insolvency
proceeding or petition; (e) at least 10 Business Days prior to the closing of such transaction, the
Borrower shall give written notice of such transaction to the Administrative Agent (which shall
promptly deliver a copy to the Lenders) (the “Acquisition Notice”), which shall include (i)
either (A) the final acquisition agreement or the then current draft of the acquisition agreement
or (B) a reasonably detailed description of the material terms of such Permitted Acquisition
(including, without limitation, the purchase price and method and structure of payment) and (ii)
all available financial statements of the Target and its Subsidiaries covering the prior three
years (or such lesser period for which such financial statements are available), (f) if the
Borrower is a party to such merger, then the Borrower shall be the surviving entity of such merger,
or a Subsidiary shall be the surviving entity of any merger or such surviving entity shall become a
Subsidiary Loan Party, and the surviving entity shall not be a Foreign Subsidiary, (g) the Acquired
Business shall be in substantially the same line of business as the Borrower and its Subsidiaries
or in a line of business reasonably related to the line of business of the Borrower and its
Subsidiaries, (h) the Transaction Value of all such transactions shall not exceed $7,500,000 in the
aggregate during any Fiscal Year of the Borrower or $22,500,000 in the aggregate during the term of
this Agreement, (i) at the time it gives the Acquisition Notice, the Borrower shall deliver to the
Administrative Agent pro forma financial statements for next succeeding two-year period giving
effect to the acquisition, which shall reflect to the Administrative Agent’s reasonable
satisfaction that the Borrower and its Subsidiaries will continue to be in compliance with all of
the financial covenants set forth in this Agreement, (j) the Administrative Agent shall receive and
approve (such approval not to be unreasonably withheld or delayed) all documents relating to the
acquisition and such additional documentation regarding the acquisition as it shall reasonably
require, including, to the extent available, audited financial statements, compiled financial
statements or a financial review of such Target, as applicable, for its two most recent fiscal
years prepared by independent certified public accountants reasonably acceptable to the
Administrative Agent and unaudited fiscal year-to-date statements for the two most recent interim
periods, and (k) at the time it gives the Acquisition Notice, the Borrower shall deliver to the
Administrative Agent (which shall promptly deliver a copy to the Lenders) a certificate, executed
by a Responsible Officer of the Borrower, demonstrating in sufficient detail compliance with the
financial covenants contained in Article 6 on a pro forma basis after giving effect to such
acquisition and, further, certifying that, after giving effect to the consummation of such
acquisition, the representations and warranties of the Borrower contained herein will be true and
correct in all material respects and as of the date of such consummation (unless qualified by
materiality, in which case, the same shall be true and correct in all respects), except to the
extent such representations or warranties expressly relate to an earlier date, and that the
Borrower, as of

19

 

the date of such consummation, will be in compliance with all other terms and conditions
contained herein.

     “Permitted Amendment” shall have the meaning provided in Section 2.28(c).

     “Permitted Encumbrances” shall mean:

               (i) Liens imposed by law for taxes or other governmental charges not at the time delinquent or
thereafter payable without penalty or which are being contested in good faith by appropriate
proceedings and with respect to which adequate reserves are being maintained in accordance with
GAAP;

               (ii) statutory Liens of landlords, suppliers, carriers, warehousemen, mechanics, materialmen,
and similar Liens arising by operation of law in the ordinary course of business for amounts not at
the time delinquent or thereafter payable without penalty or which are being contested in good
faith by appropriate proceedings and with respect to which adequate reserves are being maintained
in accordance with GAAP;

               (iii) pledges and deposits made in the ordinary course of business in compliance with workers’
compensation, unemployment insurance and other social security laws or regulations;

               (iv) deposits to secure the performance of bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in
each case in the ordinary course of business;

               (v) judgment and attachment liens not giving rise to an Event of Default or Liens created by
or existing from any litigation or legal proceeding that are currently being contested in good
faith by appropriate proceedings and with respect to which adequate reserves are being maintained
in accordance with GAAP;

               (vi) easements, zoning restrictions, rights-of-way and similar encumbrances on real property
imposed by law or arising in the ordinary course of business that do not secure any monetary
obligations and do not materially detract from the value of the affected property or materially
interfere with the ordinary conduct of business of the Borrower and its Subsidiaries taken as a
whole;

               (vii) leases, licenses, subleases or sublicenses granted to other Persons in the ordinary
course of business which do not (x) interfere in any material respect with the business of the
Borrower and its Subsidiaries taken as a whole or (y) secure any Indebtedness for borrowed money;

               (viii) any interest or title of (x) a lessor or sublessor under any lease or sublease or (y) a
licensor or sublicensor under any license or sublicense, in each case entered into in the ordinary
course of business, so long as such interest or title relate solely to the assets subject thereto;

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               (ix) banker’s liens, rights of setoff and other similar Liens that are customary in the
banking industry and existing solely with respect to cash and other amounts on deposit in one or
more accounts (including securities accounts) maintained by the Borrower or its Subsidiaries;

               (x) Liens on insurance policies and the proceeds thereof securing the financing of the
premiums with respect thereto;

               (xi) Liens of a collection bank arising under Section 4-210 of the Uniform Commerical Code on
items in the course of collection;

               (xii) Liens arising from precautionary UCC financing statement filings (or similar filings
under other applicable Law) regarding operating leases entered into by the Borrower or any of its
Subsidiaries in the ordinary course of business;

               (xiii) licenses of patents, trademarks, copyrights and other intellectual property rights
reasonably entered into in the ordinary course of business which do not secure any Indebtedness for
borrowed money;

               (xiv) good faith deposits required in connection with any investment transaction permitted
under Section 7.4;

               (xv) to the extent constituting a Lien, escrow arrangements securing indemnification
obligations associated any investment transaction permitted under Section 7.4;

               (xvi) Liens (x) on advances of cash or Permitted Investments in favor of the seller of any
property to be acquired by the Borrower or any of its Subsidiaries in an Investment permitted
pursuant to Section 7.4 to be applied against the purchase price for such Investment;
provided, that (I) the aggregate amount of such advances of cash or Permitted Investments
shall not exceed the purchase price of such Investment and (II) the property is acquired within 180
days following the date of the first such advance so made; and (y) consisting of an agreement to
dispose of any property in a Disposition permitted under Section 7.6, in each case, solely
to the extent such Investment or disposition, as the case may be, would have been permitted on the
date of the creation of such Lien; and

               (xvii) Liens of any Governmental Authority on Exempt Student Financial Aid Funds;

provided, that the term “Permitted Encumbrances” shall not include any Lien securing
Indebtedness (other than clauses (i), (ii), (ix), (x) and (xi), but, with respect to clauses (i)
and (ii), only to the extent being contested in good faith and by appropriate proceedings, and
provided that the Borrower maintains adequate reserves for such contest in accordance with GAAP,
and, with respect to all such clauses, only to the extent such Indebtedness is otherwise permitted
by this Agreement).

     “Permitted Investments” shall mean:

21

 

               (i) direct obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States (or by any agency thereof to the extent such
obligations are backed by the full faith and credit of the United States), in each case maturing
within one year from the date of acquisition thereof;

               (ii) commercial paper having the highest rating, at the time of acquisition thereof, of S&P or
Moody’s and in either case maturing within six months from the date of acquisition thereof;

               (iii) certificates of deposit, bankers’ acceptances and time deposits maturing within 180 days
of the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit
accounts issued or offered by, any domestic office of any Lender or any other commercial bank
organized under the laws of the United States or any state thereof which has a combined capital and
surplus and undivided profits of not less than $500,000,000;

               (iv) fully collateralized repurchase agreements with a term of not more than 30 days for
securities described in clause (i) above and entered into with a financial institution satisfying
the criteria described in clause (iii) above; and

               (v) Investments, classified in accordance with GAAP as current assets of the Borrower or any
of its Subsidiaries, in money market investment programs registered under the Investment Company
Act of 1940, which are administered by reputable financial institutions, and the portfolios of
which are limited to Investments of the character, quality and maturity described in clauses (i)
through (iv) above.

     “Person” shall mean any individual, partnership, firm, corporation, association, joint
venture, limited liability company, trust or other entity, or any Governmental Authority.

     “Plan” shall mean any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA,
and in respect of which the Borrower or any ERISA Affiliate is (or, if such plan were terminated,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.

     “Pledge Agreement” shall mean the Pledge Agreement, dated as of the date hereof and
substantially in the form of Exhibit H, made by the Borrower and the Subsidiary Loan
Parties in favor of the Administrative Agent for the benefit of the Secured Parties (as therein
defined), pursuant to which the Borrower and each of such Subsidiary Loan Parties shall pledge all
of the Capital Stock that it holds in its Subsidiaries to secure the Obligations, as amended,
restated, supplemented or otherwise modified from time to time.

     “Potential Defaulting Lender” shall mean, at any time, a Lender that has, or whose
Parent Company has, a non-investment grade rating from Moody’s or S&P or another nationally
recognized rating agency. Any determination that a Lender is a Potential Defaulting Lender will be
made by the Administrative Agent in its reasonable discretion acting in good faith. The
Administrative Agent will promptly send to all parties hereto a copy of any notice to the Borrower
provided for in this definition.

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     “Pro Rata Share” shall mean (i) with respect to any Revolving Commitment of any Revolving Loan Lender at any time, a percentage, the numerator of which shall be such Revolving
Loan Lender’s Revolving Commitment (or if such Revolving Commitments have been terminated or
expired or the Loans have been declared to be due and payable, such Lender’s Revolving Credit
Exposure), and the denominator of which shall be the sum of such Revolving Commitments of all
Revolving Loan Lenders (or if such Revolving Commitments have been terminated or expired or the
Loans have been declared to be due and payable, all Revolving Credit Exposure of all Revolving Loan
Lenders), (ii) with respect to any Term Loan Commitment of any Term Loan Lender at any time, a
percentage, the numerator of which shall be such Term Loan Lender’s Term Loan Commitment (or if
such Term Loan Commitments have been terminated or expired or the Loans have been declared to be
due and payable, such Term Loan Lender’s Term Loan), and the denominator of which shall be the sum
of such Term Loan Commitments of all Term Loan Lenders (or if such Term Loan Commitments have been
terminated or expired or the Loans have been declared to be due and payable, all Term Loans of all
Term Loan Lenders) and (iii) with respect to all Commitments of any Lender at any time, the
numerator of which shall be the sum of such Lender’s Revolving Commitment (or if such Revolving
Commitments have been terminated or expired or the Loans have been declared to be due and payable,
such Lender’s Revolving Credit Exposure) and Term Loans and the denominator of which shall be the
sum of all Lenders’ Revolving Commitments (or if such Revolving Commitments have been terminated or
expired or the Loans have been declared to be due and payable, all Revolving Credit Exposure of all
Lenders funded under such Commitments) and Term Loans.

     “Regulation D” shall mean Regulation D of the Board of Governors of the Federal
Reserve System, as the same may be in effect from time to time, and any successor regulations.

     “Related Parties” shall mean, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents and advisors of such Person
and such Person’s Affiliates.

     “Release” shall mean any release, spill, emission, leaking, dumping, injection,
pouring, deposit, disposal, discharge, dispersal, leaching or migration into the environment
(including ambient air, surface water, groundwater, land surface or subsurface strata) or within
any building, structure, facility or fixture.

     “Required Lenders” shall mean, (a) at any time that there are two Lenders or fewer,
Lenders holding 100% of the aggregate outstanding Revolving Commitments and Term Loans at such time
or if the Lenders have no Commitments outstanding, then Lenders holding 100% of the Revolving
Credit Exposure and Term Loans; and (b) at any other time, Lenders holding more than 50% of the
aggregate outstanding Revolving Commitments and Term Loans at such time or if the Lenders have no
Commitments outstanding, then Lenders holding more than 50% of the Revolving Credit Exposure and
Term Loans; provided, however, that to the extent that any Lender is a Defaulting
Lender, such Defaulting Lender and all of its Commitments and Revolving Credit Exposure shall be
excluded for purposes of determining Required Lenders.

     “Requirement of Law” for any Person shall mean the articles or certificate of
incorporation, bylaws, partnership certificate and agreement, or limited liability company

23

 

certificate of organization and agreement, as the case may be, and other organizational and
governing documents of such Person, and any law, treaty, rule or regulation, or determination of a
Governmental Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

     “Responsible Officer” shall mean any of the president, the chief executive officer,
the chief operating officer, the chief financial officer or the treasurer of the Borrower or such
other representative of the Borrower as may be designated in writing by any one of the foregoing
with the consent of the Administrative Agent; and, with respect to the financial covenants only,
the chief financial officer or the treasurer of the Borrower.

     “Restricted Payment” shall have the meaning set forth in Section 7.5.

     “Revolving Commitment” shall mean, with respect to each Lender, the obligation of such
Lender to make Revolving Loans to the Borrower and to participate in Letters of Credit and
Swingline Loans in an aggregate principal amount not exceeding the amount set forth with respect to
such Lender on Schedule II, or in the case of a Person becoming a Lender after the Closing
Date through an assignment of an existing Revolving Commitment, the amount of the assigned
“Revolving Commitment” as provided in the Assignment and Assumption executed by such Person as an
assignee, as the same may be increased or decreased pursuant to terms hereof.

     “Revolving Commitment Termination Date” shall mean the earliest of (i) March 31, 2014,
(ii) the date on which all Revolving Commitments are terminated pursuant to Section 2.9 and
(iii) the date on which all amounts outstanding under this Agreement have been declared or have
automatically become due and payable (whether by acceleration or otherwise).

     “Revolving Credit Exposure” shall mean, with respect to any Lender at any time, the
sum of the outstanding principal amount of such Lender’s Revolving Loans, LC Exposure and Swingline
Exposure.

     “Revolving Credit Note” shall mean a promissory note of the Borrower payable to the
order of a requesting Lender in the principal amount of such Lender’s Revolving Commitment, in
substantially the form of Exhibit A.

     “Revolving Loan” shall mean a loan made by a Lender (other than the Swingline Lender)
to the Borrower under its Revolving Commitment, which may either be a Base Rate Loan, an Index Rate
Loan or a Eurodollar Loan.

     “Revolving Loan Lender” shall mean each Lender that has a Revolving Commitment or is
the holder of Revolving Credit Exposure.

     “Sale and Leaseback Transaction” shall have the meaning set forth in Section
7.9.

     “S&P” shall mean Standard & Poor’s, a division of McGraw-Hill, Inc., a corporation
organized and existing under the laws of the State of New York, its successors and assigns, and, if
such corporation shall be dissolved or liquidated or shall no longer perform the functions of a
securities rating agency, “S&P” shall be deemed to refer to any other nationally recognized

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securities rating agency designated by the Borrower with the consent of the Administrative
Agent.

     “Security Agreement” shall mean the Security Agreement, dated as of the date hereof
and substantially in the form of Exhibit G, made by the Borrower and the Subsidiary Loan
Parties in favor of the Administrative Agent for the benefit of the Secured Parties (as therein
defined), as amended, restated, supplemented or otherwise modified from time to time.

     “Security Documents” shall mean the Pledge Agreement, the Security Agreement and each
of the security agreements, mortgages and other instruments and documents executed and delivered
pursuant to the Security Agreement or pursuant to Section 5.12, as amended, restated,
supplemented or otherwise modified from time to time.

     “Specified Hedge Provider” means a Person that was a Lender or an Affiliate of a
Lender at the date of entering into a Hedging Transaction and, in the case of an Affiliate, such
Affiliate executes and delivers to the Administrative Agent a letter agreement in form and
substance reasonably acceptable to the Administrative Agent pursuant to which such Affiliate (i)
appoints the Administrative Agent as its agent under the applicable Loan Documents and (ii) agrees
to be bound by the provisions of Articles 9 and 10.

     “Specified Treasury Management Provider” means each Person that provides products of
the type described in the definition of “Treasury Management Obligations” to any of the Loan
Parties and such Person either (A) is a Lender or (B) an Affiliate of a Lender that executes and
delivers to the Administrative Agent a letter agreement in form and substance reasonably acceptable
to the Administrative Agent pursuant to which such Affiliate (i) appoints the Administrative Agent
as its agent under the applicable Loan Documents and (ii) agrees to be bound by the provisions of
Articles 9 and 10.

     “STRH” shall mean SunTrust Robinson Humphrey, Inc., in its capacity as a Joint Lead
Arranger.

     “Subsidiary” shall mean, with respect to any Person (the “parent”), any
corporation, partnership, joint venture, limited liability company, association or other entity the
accounts of which would be consolidated with those of the parent in the parent’s consolidated
financial statements if such financial statements were prepared in accordance with GAAP as of such
date, as well as any other corporation, partnership, joint venture, limited liability company,
association or other entity (i) of which securities or other ownership interests representing more
than 50% of the equity or more than 50% of the ordinary voting power, or in the case of a
partnership, more than 50% of the general partnership interests are, as of such date, owned,
controlled or held, or (ii) that is, as of such date, otherwise controlled, by the parent or one or
more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.
Unless otherwise indicated, all references to “Subsidiary” hereunder shall mean a Subsidiary of the
Borrower.

     “Subsidiary Guaranty Agreement” shall mean the Amended and Restated Subsidiary
Guaranty Agreement, dated as of the date hereof and substantially in the form of Exhibit F,
made by all Domestic Subsidiaries of the Borrower in favor of the Administrative Agent for the
benefit of the Guaranteed Parties (as therein defined).

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     “Subsidiary Guaranty Supplement” shall mean each supplement substantially in the form
of Schedule II to the Subsidiary Guaranty Agreement executed and delivered by a Domestic
Subsidiary of the Borrower pursuant to Section 5.11.

     “Subsidiary Loan Party” shall mean any Subsidiary that executes or becomes a party to
the Subsidiary Guaranty Agreement.

     “SUI” shall mean Strayer University, Inc., a Maryland corporation.

     “Swingline Commitment” shall mean the commitment of the Swingline Lender to make
Swingline Loans in an aggregate principal amount at any time outstanding not to exceed $10,000,000.

     “Swingline Exposure” shall mean, with respect to each Revolving Loan Lender, the
principal amount of the Swingline Loans in which such Lender is legally obligated either to make an
Index Rate Loan or to purchase a participation in accordance with Section 2.4, which shall
equal such Revolving Loan Lender’s Pro Rata Share of all outstanding Swingline Loans.

     “Swingline Lender” shall mean SunTrust Bank, or any other Lender that may agree to
make Swingline Loans hereunder.

     “Swingline Loan” shall mean a loan made to the Borrower by the Swingline Lender under
the Swingline Commitment.

     “Swingline Note” shall mean the promissory note of the Borrower payable to the order
of the Swingline Lender in the principal amount of the Swingline Commitment, substantially the form
of Exhibit D.

     “Swingline Rate” shall mean the Index Rate plus the Applicable Margin.

     “Synthetic Lease” shall mean a lease transaction under which the parties intend that
(i) the lease will be treated as an “operating lease” by the lessee pursuant to Statement of
Financial Accounting Standards No. 13, as amended and (ii) the lessee will be entitled to various
tax and other benefits ordinarily available to owners (as opposed to lessees) of like property.

     “Synthetic Lease Obligations” shall mean, with respect to any Person, the sum of (i)
all remaining rental obligations of such Person as lessee under Synthetic Leases which are
attributable to principal and, without duplication (ii) all rental and purchase price payment
obligations of such Person under such Synthetic Leases assuming such Person exercises the option to
purchase the lease property at the end of the lease term.

     “Target Consolidated EBITDA” shall mean, for the Target and its Subsidiaries for any
period, an amount equal to the sum of (i) the consolidated net income for such period plus (ii) to
the extent deducted in determining consolidated net income for such period, (A) consolidated
interest expense, (B) income tax expense, (C) depreciation and amortization, all of the foregoing
as determined on a consolidated basis in accordance with GAAP, (D) the amount of any charges
associated with the grant of any share based payment awards to employees, officers, directors or

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consultants and (E) all other non-cash charges acceptable to the Required Lenders, in each
case for such period.

     “Taxes” shall mean any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.

     “Term Loan” shall have the meaning set forth in Section 2.6.

     “Term Loan Commitment” shall mean, with respect to each Term Loan Lender, the
obligation of such Term Loan Lender to make a Term Loan hereunder on the Closing Date, in a
principal amount not exceeding the amount set forth with respect to such Lender on Schedule
II. The aggregate principal amount of all Term Loan Lenders’ Term Loan Commitments is
$100,000,000.

     “Term Loan Lender” shall mean each Lender that has a Term Loan Commitment or is the
holder of a Term Loan.

     “Term Note” shall mean a promissory note of the Borrower payable to the order of a
requesting Term Loan Lender in the principal amount of such Lender’s Term Loan Commitment, in
substantially the form of Exhibit B.

     “Title IV, HEA Programs” shall mean the programs of federal student financial
assistance authorized by Title IV of the Higher Education Act of 1965, as amended, 20 U.S.C. 1079
et seq., and any amendments or successor statutes thereto after the Closing Date.

     “Transaction Value” shall mean the aggregate value of the sum of all current and
deferred cash and securities to be paid and issued, plus Indebtedness paid or assumed, in
connection with a Permitted Acquisition (provided, however, that any consideration paid in Capital
Stock of the Borrower shall not be included in the calculation of Transaction Value). The Borrower
shall make an estimate in good faith as of the time of the closing of a Permitted Acquisition of
all deferred payments (including, without limitation, earnout payments) to be paid in connection
with such Permitted Acquisition.

     “Treasury Management Obligations” shall mean, collectively, all obligations and other
liabilities of any Loan Parties pursuant to any agreements governing the provision to such Loan
Parties of treasury or cash management services, including deposit accounts, funds transfer,
automated clearing house, zero balance accounts, returned check concentration, controlled
disbursement, lockbox, account reconciliation, reporting and trade finance services, overnight
draft, credit cards, purchasing cards and commercial cards and other cash management services.

     “Type”, when used in reference to a Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the
Adjusted LIBO Rate, the Index Rate or the Base Rate.

     “Unrestricted Liquidity” shall mean, at any time, the sum of (a) cash and Permitted
Investments of the Loan Parties that are not subject to any Lien, other than Liens in favor of the
Administrative Agent, or any restriction on use and (b) the aggregate unused Revolving

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Commitments of all Lenders; provided, however, that the component of
Unrestricted Liquidity attributable to this clause (b) shall not exceed $25,000,000.

     “Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

     Section 1.2. Classifications of Loans and Borrowings. For purposes of this Agreement,
Loans may be classified and referred to by Class (e.g., a “Revolving Loan” or a “Term Loan”) or by
Type (e.g. a “Eurodollar Loan,” “Index Rate Loan” or “Base Rate Loan”) or by Class and Type (e.g.
“Revolving Eurodollar Loan”). Borrowings also may be classified and referred to by Class (e.g.
“Revolving Borrowing”) or by Type (e.g. “Eurodollar Borrowing”) or by Class and Type (e.g.
“Revolving Eurodollar Borrowing”).

     Section 1.3. Accounting Terms and Determination. Unless otherwise defined or
specified herein, all accounting terms used herein shall be interpreted, all accounting
determinations hereunder shall be made, and all financial statements required to be delivered
hereunder shall be prepared, in accordance with GAAP as in effect from time to time, applied on a
basis consistent with the most recent audited consolidated financial statements of the Borrower
delivered pursuant to Section 5.1(a); provided, that if the Borrower notifies the
Administrative Agent that the Borrower wishes to amend any covenant in Article 6 to
eliminate the effect of any change in GAAP on the operation of such covenant (or if the
Administrative Agent notifies the Borrower that the Required Lenders wish to amend Article
6 for such purpose), then the Borrower’s compliance with such covenant shall be determined on
the basis of GAAP in effect immediately before the relevant change in GAAP became effective, until
either such notice is withdrawn or such covenant is amended in a manner satisfactory to the
Borrower and the Required Lenders.

     Section 1.4. Terms Generally. The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. In the
computation of periods of time from a specified date to a later specified date, the word “from”
means “from and including” and the word “to” means “to but excluding”. Unless the context requires
otherwise (i) any definition of or reference to any agreement, instrument or other document herein
shall be construed as referring to such agreement, instrument or other document as it was
originally executed or as it may from time to time be amended, restated, supplemented or otherwise
modified (subject to any restrictions on such amendments, supplements or modifications set forth
herein), (ii) any reference herein to any Person shall be construed to include such Person’s
successors and permitted assigns, (iii) the words “hereof”, “herein” and “hereunder” and words of
similar import shall be construed to refer to this Agreement as a whole and not to any particular
provision hereof, (iv) all references to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles, Sections, Exhibits and Schedules to this Agreement and (v) all
references to a specific time shall be construed to refer to the time in the city and state of the
Administrative Agent’s principal office, unless otherwise indicated.

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     Section 1.5. Letter of Credit Amounts. Unless otherwise specified herein, the amount
of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit
in effect at such time; provided, however, that with respect to any Letter of
Credit that, by its terms or the terms of any LC Document related thereto, provides for one or more
automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be
deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such
increases, whether or not such maximum stated amount is in effect at such time.

ARTICLE 2

AMOUNT AND TERMS OF THE COMMITMENTS

     Section 2.1. General Description of Facilities. Subject to and upon the terms and
conditions herein set forth, (i) the Revolving Loan Lenders hereby establish in favor of the
Borrower a revolving credit facility pursuant to which each Revolving Loan Lender severally agrees
(to the extent of such Lender’s Revolving Commitment) to make Revolving Loans to the Borrower in
accordance with Section 2.2, (ii) the Issuing Bank agrees to issue Letters of Credit in
accordance with Section 2.23, (iii) the Swingline Lender agrees to make Swingline Loans in
accordance with Section 2.4, (iv) each Revolving Loan Lender agrees to purchase a
participation interest in the Letters of Credit and the Swingline Loans pursuant to the terms and
conditions hereof; provided, that in no event shall the aggregate principal amount of all
outstanding Revolving Loans, Swingline Loans and outstanding LC Exposure exceed at any time the
Aggregate Revolving Commitment Amount from time to time in effect; and (v) each Term Loan Lender
severally agrees to make a Term Loan to the Borrower in a principal amount not exceeding such Term
Loan Lender’s Term Loan Commitment on the Closing Date.

     Section 2.2. Revolving Loans. Subject to the terms and conditions set forth herein,
each Revolving Loan Lender severally agrees to make Revolving Loans, ratably in proportion to its
Pro Rata Share, to the Borrower, from time to time during the Availability Period, in an aggregate
principal amount outstanding at any time that will not result in (a) such Revolving Loan Lender’s
Revolving Credit Exposure exceeding such Revolving Loan Lender’s Revolving Commitment or (b) the
sum of the aggregate Revolving Credit Exposures of all Revolving Loan Lenders exceeding the
Aggregate Revolving Commitment Amount. During the Availability Period, the Borrower shall be
entitled to borrow, prepay and reborrow Revolving Loans in accordance with the terms and conditions
of this Agreement; provided, that the Borrower may not borrow or reborrow should there
exist a Default or Event of Default or should any of the conditions set forth in Section
3.2 not be satisfied or waived as provided in this Agreement.

     Section 2.3. Procedure for Revolving Borrowings. The Borrower shall give the
Administrative Agent written notice (or telephonic notice promptly confirmed in writing) of each
Revolving Borrowing substantially in the form of Exhibit 2.3 (a “Notice of Revolving
Borrowing”) (x) prior to 11:00 a.m. (Richmond, Virginia time) on the same Business Day as the
requested date of each Base Rate Borrowing or Index Rate Borrowing and (y) prior to 11:00 a.m.
(Richmond, Virginia time) three (3) Business Days prior to the requested date of each Eurodollar
Borrowing. Each Notice of Revolving Borrowing shall be irrevocable and shall specify: (i) the
aggregate principal amount of such Borrowing, (ii) the date of such Borrowing (which shall be a
Business Day), (iii) the Type of such Revolving Loan comprising such Borrowing and (iv) in the

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case of a Eurodollar Borrowing, the duration of the initial Interest Period applicable thereto
(subject to the provisions of the definition of “Interest Period”). Each Revolving Borrowing shall
consist entirely of Base Rate Loans, Index Rate Loans or Eurodollar Loans, as the Borrower may
request, provided, that any Revolving Loans funded on the Closing Date shall be Index Rate
Loans. The aggregate principal amount of each Eurodollar Revolving Borrowing shall be not less
than $1,000,000 or a larger multiple of $1,000,000, and the aggregate principal amount of each Base
Rate Revolving Borrowing and Index Rate Revolving Borrowing shall not be less than $1,000,000 or a
larger multiple of $500,000; provided, that Index Rate Revolving Loans or Base Rate
Revolving Loans, respectively, made pursuant to Section 2.4 or Section 2.23(d) may
be made in lesser amounts as provided therein. At no time shall the total number of Eurodollar
Borrowings outstanding at any time exceed eight. Promptly following the receipt of a Notice of
Revolving Borrowing in accordance herewith, the Administrative Agent shall advise each Revolving
Loan Lender of the details thereof and the amount of such Revolving Loan Lender’s Revolving Loan to
be made as part of the requested Revolving Borrowing.

     Section 2.4. Swingline Commitment.

          (a) Subject to the terms and conditions set forth herein, the Swingline Lender agrees to make
Swingline Loans to the Borrower, from time to time during the Availability Period, in an aggregate
principal amount outstanding at any time not to exceed the lesser of (i) the Swingline Commitment
then in effect and (ii) the difference between the Aggregate Revolving Commitment Amount and the
aggregate Revolving Credit Exposures of all Lenders; provided, that the Swingline Lender
shall not be permitted to make a Swingline Loan to refinance an outstanding Swingline Loan. The
Borrower shall be entitled to borrow, repay and reborrow Swingline Loans in accordance with the
terms and conditions of this Agreement.

          (b) The Swingline Lender agrees to make Swingline Loans to the Borrower from time to time in
accordance with the treasury and cash management services and products provided to the Borrower by
the Swingline Lender (the “Cash Management Swingline Loans”). For other Swingline Loans,
the Borrower shall give the Administrative Agent written notice (or telephonic notice promptly
confirmed in writing) of each Swingline Borrowing substantially in the form of Exhibit 2.4
attached hereto (“Notice of Swingline Borrowing”) prior to 1:00 p.m. (Richmond, Virginia
time) on the requested date of each Swingline Borrowing. Each Notice of Swingline Borrowing shall
be irrevocable and shall specify: (i) the principal amount of such Swingline Loan, (ii) the date of
such Swingline Loan (which shall be a Business Day) and (iii) the account of the Borrower to which
the proceeds of such Swingline Loan should be credited. The Administrative Agent will promptly
advise the Swingline Lender of each Notice of Swingline Borrowing. Each Swingline Loan shall
accrue interest at the Swingline Rate. The aggregate principal amount of each Swingline Loan shall
be not less than $100,000 or a larger multiple of $50,000, or such other minimum amounts agreed to
by the Swingline Lender and the Borrower. Unless the Swingline Lender has received notice from the
Administrative Agent or any Lender on or before the Business Day immediately preceding the date the
Swingline Lender is to make the requested Swingline Loan directing the Swingline Lender not to make
the Swingline Loan because such Swingline Loan is not then permitted hereunder because of the
limitations set forth in Section 2.4(a) or that one or more conditions specified in
Article 3 are not then satisfied, then, subject to the terms and conditions hereof, the
Swingline Lender will make the proceeds of each Swingline Loan available to the Borrower in Dollars
in immediately

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available funds at the account specified by the Borrower in the applicable Notice of Swingline
Borrowing not later than the later of 1:00 p.m. (Richmond, Virginia time) or two hours following
the delivery of the Notice of Swingline Borrowing on the requested date of such Swingline Loan.

          (c) The Swingline Lender, at any time and from time to time in its sole discretion, may, on
behalf of the Borrower (which hereby irrevocably authorizes and directs the Swingline Lender to act
on its behalf), give a Notice of Revolving Borrowing to the Administrative Agent requesting the
Revolving Loan Lenders (including the Swingline Lender) to make Index Rate Loans in an amount equal
to the unpaid principal amount of any Swingline Loan. Each Revolving Loan Lender will make the
proceeds of its Index Rate Loan included in such Borrowing available to the Administrative Agent
for the account of the Swingline Lender in accordance with Section 2.7, which will be used
solely for the repayment of such Swingline Loan. The Swingline Lender agrees that it shall give
such Notice of Revolving Borrowing on the last Business Day of each calendar week if any Swingline
Loans are then outstanding.

          (d) If for any reason an Index Rate Borrowing may not be (as determined in the sole discretion
of the Administrative Agent), or is not, made in accordance with the foregoing provisions, then
each Revolving Loan Lender (other than the Swingline Lender) shall purchase an undivided
participating interest in such Swingline Loan in an amount equal to its Pro Rata Share thereof on
the date that such Index Rate Borrowing should have occurred. On the date of such required
purchase, each Revolving Loan Lender shall promptly transfer, in immediately available funds, the
amount of its participating interest to the Administrative Agent for the account of the Swingline
Lender. If such Swingline Loan bears interest at a rate other than the Index Rate, such Swingline
Loan shall automatically become an Index Rate Loan on the effective date of any such participation
and interest shall become payable on demand.

          (e) Each Revolving Loan Lender’s obligation to make an Index Rate Loan pursuant to Section
2.4(c) or to purchase the participating interests pursuant to Section 2.4(d) shall be
absolute and unconditional and shall not be affected by any circumstance, including without
limitation (i) any setoff, counterclaim, recoupment, defense or other right that such Revolving
Loan Lender or any other Person may have or claim against the Swingline Lender, the Borrower or any
other Person for any reason whatsoever, (ii) the existence of a Default or an Event of Default or
the termination of any Revolving Loan Lender’s Revolving Commitment, (iii) the existence (or
alleged existence) of any event or condition which has had or could reasonably be expected to have
a Material Adverse Effect, (iv) any breach of this Agreement or any other Loan Document by the
Borrower, the Administrative Agent or any Revolving Loan Lender or (v) any other circumstance,
happening or event whatsoever, whether or not similar to any of the foregoing. If such amount is
not in fact made available to the Swingline Lender by any Revolving Loan Lender, the Swingline
Lender shall be entitled to recover such amount on demand from such Lender, together with accrued
interest thereon for each day from the date of demand thereof (i) at the Federal Funds Rate until
the second Business Day after such demand and (ii) at the Base Rate at all times thereafter. Until
such time as such Revolving Loan Lender makes its required payment, the Swingline Lender shall be
deemed to continue to have outstanding Swingline Loans in the amount of the unpaid participation
for all purposes of the Loan Documents. In addition, such Revolving Loan Lender shall be deemed to
have assigned any and all payments made of principal and interest on its Revolving Loans and any
other amounts due to it hereunder, to the Swingline Lender to fund the amount of such Revolving

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Loan Lender’s participation interest in such Swingline Loans that such Revolving Loan Lender
failed to fund pursuant to this Section 2.4, until such amount has been purchased in full.

     Section 2.5. Reserved.

     Section 2.6. Term Loans. Subject to the terms and conditions set forth herein, each
Term Loan Lender severally agrees to make a single loan (each, a “Term Loan”) to the
Borrower on the Closing Date in a aggregate principal amount not to exceed the Term Loan Commitment
of such Term Loan Lender; provided, that if for any reason the full amount of such Term Loan
Lender’s Term Loan Commitment is not fully drawn on the Closing Date, the undrawn portion thereof
shall automatically be cancelled. The Term Loans may be, from time to time, Base Rate Loans, Index
Rate Loans or Eurodollar Loans or a combination thereof; provided, that on the Closing Date
all Term Loans shall be Index Rate Loans. The execution and delivery of this Agreement by the
Borrower and the satisfaction of all conditions precedent pursuant to Section 3.1 shall be
deemed to constitute the Borrower’s request to borrow the Term Loans on the Closing Date.

     Section 2.7. Funding of Borrowings.

          (a) Each Lender will make available each Loan to be made by it hereunder on the proposed date
thereof by wire transfer in immediately available funds by 1:00 p.m. (Richmond, Virginia time) to
the Administrative Agent at the Payment Office; provided, that the Swingline Loans will be
made as set forth in Section 2.4. The Administrative Agent will make such Loans available
to the Borrower by promptly crediting the amounts that it receives, in like funds by the close of
business on such proposed date, to an account maintained by the Borrower with the Administrative
Agent or at the Borrower’s option, by effecting a wire transfer of such amounts to an account
designated by the Borrower to the Administrative Agent.

          (b) Unless the Administrative Agent shall have been notified by any Lender prior to 5:00 p.m.
(Richmond, Virginia time) one (1) Business Day prior to the date of a Borrowing in which such
Lender is to participate that such Lender will not make available to the Administrative Agent such
Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made
such amount available to the Administrative Agent on such date, and the Administrative Agent, in
reliance on such assumption, may make available to the Borrower on such date a corresponding
amount. If such corresponding amount is not in fact made available to the Administrative Agent by
such Lender on the date of such Borrowing, the Administrative Agent shall be entitled to recover
such corresponding amount on demand from such Lender together with interest at the Federal Funds
Rate until the second Business Day after such demand and thereafter at the Base Rate. If such
Lender does not pay such corresponding amount forthwith upon the Administrative Agent’s demand
therefor, the Administrative Agent shall promptly notify the Borrower, and the Borrower shall
immediately pay such corresponding amount to the Administrative Agent together with interest at the
rate specified for such Borrowing. Nothing in this subsection shall be deemed to relieve any
Lender from its obligation to fund its Pro Rata Share of any Borrowing hereunder or to prejudice
any rights which the Borrower may have against any Lender as a result of any default by such Lender
hereunder.

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          (c) All Revolving Borrowings shall be made by the Lenders on the basis of their respective Pro
Rata Shares. All Term Loan Borrowings shall be made by the Lenders on the basis of their
respective Pro Rata Shares. No Lender shall be responsible for any default by any other Lender in
its obligations hereunder, and each Lender shall be obligated to make its Loans provided to be made
by it hereunder, regardless of the failure of any other Lender to make its Loans hereunder.

     Section 2.8. Interest Elections.

          (a) On the Closing Date, each Revolving Loan funded on such date shall be an Index Rate Loan,
each Term Loan funded on such date shall be an Index Rate Loan and each Swingline Loan shall be an
Index Rate Loan. After the Closing Date, each Borrowing initially shall be of the Type specified
in the applicable Notice of Borrowing, and in the case of a Eurodollar Borrowing, shall have an
initial Interest Period as specified in such Notice of Borrowing, provided that only Revolving
Loans, Swingline Loans and Term Loans may be borrowed as Index Rate Loans. Thereafter, the
Borrower may elect to convert such Borrowing into a different Type or to continue such Borrowing,
and in the case of a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in
this Section 2.8. The Borrower may elect different options with respect to different
portions of the affected Borrowing, in which case each such portion shall be allocated ratably
among the Lenders holding Loans comprising such Borrowing, and the Loans comprising each such
portion shall be considered a separate Borrowing. This Section shall not apply to Swingline
Borrowings, which may not be converted or continued.

          (b) To make an election pursuant to this Section 2.8, the Borrower shall give the
Administrative Agent prior written notice (or telephonic notice promptly confirmed in writing) of
each Borrowing that is to be converted or continued, as the case may be, substantially in the form
of Exhibit 2.8 attached hereto (a “Notice of Conversion/Continuation”), (x) prior
to 11:00 a.m. (Richmond, Virginia time) on the same Business Day as the requested date of a
conversion into a Base Rate Borrowing or an Index Rate Borrowing and (y) prior to 11:00 a.m.
(Richmond, Virginia time) three (3) Business Days prior to a continuation of or conversion into a
Eurodollar Borrowing or of a Eurodollar Borrowing into a Borrowing of another Type. Each such
Notice of Conversion/Continuation shall be irrevocable and shall specify (i) the Borrowing to which
such Notice of Conversion/Continuation applies and if different options are being elected with
respect to different portions thereof, the portions thereof that are to be allocated to each
resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and
(iv) shall be specified for each resulting Borrowing); (ii) the effective date of the election made
pursuant to such Notice of Conversion/Continuation, which shall be a Business Day, (iii) whether
the resulting Borrowing is to be a Base Rate Borrowing, an Index Rate Borrowing or a Eurodollar
Borrowing; and (iv) if the resulting Borrowing is to be a Eurodollar Borrowing, the Interest Period
applicable thereto after giving effect to such election, which shall be a period contemplated by
the definition of “Interest Period.” If any such Notice of Conversion/Continuation requests a
Eurodollar Borrowing but does not specify an Interest Period, the Borrower shall be deemed to have
selected an Interest Period of one month. The principal amount of any resulting Borrowing shall
satisfy the minimum borrowing amount for Eurodollar Borrowings, Index Rate Borrowings and Base Rate
Borrowings set forth in Section 2.3.

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          (c) If, on the expiration of any Interest Period in respect of any Eurodollar Borrowing, the
Borrower shall have failed to deliver a Notice of Conversion/Continuation, then, unless such
Borrowing is repaid as provided herein, the Borrower shall be deemed to have elected to convert
such Borrowing to a Base Rate Borrowing. No Borrowing may be converted into, or continued as, a
Eurodollar Borrowing if a Default or an Event of Default exists, unless the Administrative Agent
and each of the Lenders shall have otherwise consented in writing. No conversion of any Eurodollar
Loans shall be permitted except on the last day of the Interest Period in respect thereof.

          (d) Upon receipt of any Notice of Conversion/Continuation, the Administrative Agent shall
promptly notify each Lender of the details thereof and of such Lender’s portion of each resulting
Borrowing.

          (e) If a Notice of Borrowing or a Notice of Conversion/Continuation does not specify a Type,
the Borrower shall be deemed to have requested an Index Rate Borrowing with respect to the
Revolving Loans.

     Section 2.9. Optional Reduction and Termination of Commitments.

          (a) Unless previously terminated, all Revolving Commitments, Swingline Commitments and LC
Commitments shall terminate on the Revolving Commitment Termination Date. The Term Loan
Commitments shall terminate on the Closing Date upon the making of the Term Loans pursuant to
Section 2.6.

          (b) Upon at least three (3) Business Days’ prior written notice (or telephonic notice promptly
confirmed in writing) to the Administrative Agent (which notice shall be irrevocable unless
contingent on the consummation of an anticipated refinancing and the Borrower shall, as promptly as
practicable, notify the Administrative Agent that such refinancing will not occur as scheduled),
the Borrower may reduce the Aggregate Revolving Commitments in part or terminate the Aggregate
Revolving Commitments in whole; provided, that (i) any partial reduction shall apply to
reduce proportionately and permanently the Revolving Commitment of each Lender, (ii) any partial
reduction pursuant to this Section 2.9 shall be in an amount of at least $5,000,000 and any
larger multiple of $1,000,000, and (iii) no such reduction shall be permitted which would reduce
the Aggregate Revolving Commitment Amount to an amount less than the outstanding Revolving Credit
Exposures of all Lenders. Any such reduction in the Aggregate Revolving Commitment Amount below
the sum of the principal amount of the Swingline Commitment and the LC Commitment shall result in a
proportionate reduction (rounded to the next lowest integral multiple of $100,000) in the Swingline
Commitment and the LC Commitment.

          (c) The Borrower may terminate the unused amount of the Revolving Commitment of a Defaulting
Lender upon not less than two Business Days’ prior notice to the Administrative Agent (which will
promptly notify the Lenders thereof), and in such event the provisions of Section 2.22 will apply
to all amounts thereafter paid by the Borrower for the account of such Defaulting Lender under this
Agreement (whether on account of principal, interest, fees, indemnity or other amounts), provided
that such termination will not be deemed to

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be a waiver or release of any claim the Borrower, the Administrative Agent, the Issuing Bank,
the Swingline Lender or any Lender may have against such Defaulting Lender.

     Section 2.10. Repayment of Loans.

          (a) The outstanding principal amount of all Revolving Loans shall be due and payable (together
with accrued and unpaid interest thereon) on the Revolving Commitment Termination Date.

          (b) The principal amount of each Swingline Borrowing shall be due and payable (together with
accrued and unpaid interest thereon) on the Revolving Commitment Termination Date.

          (c) The Borrower unconditionally promises to pay to the Administrative Agent, for the account
of each Term Loan Lender, the then unpaid principal amount of the Term Loan of such Term Loan
Lender in installments payable on the last day of each March, June, September and December,
commencing on December 31, 2011, with each such installment being in the aggregate principal amount
for all Term Loan Lenders (i) for the installment due December 31, 2011, in the amount of 2.5% of
the aggregate original principal amount of the Term Loans; (ii) for the installment due March 31,
2012, in the amount of 5.0% of the aggregate original principal amount of the Term Loans and (iii)
for each quarterly installment thereafter, commencing with June 30, 2012, in the amount of 7.5% of
the aggregate original principal amount of the Term Loans; provided, that, to the extent
not previously paid, the aggregate unpaid principal balance of the Term Loans shall be due and
payable on the Maturity Date.

     Section 2.11. Evidence of Indebtedness.

          (a) Each Lender shall maintain in accordance with its usual practice appropriate records
evidencing the Indebtedness of the Borrower to such Lender resulting from each Loan made by such
Lender from time to time, including the amounts of principal and interest payable thereon and paid
to such Lender from time to time under this Agreement. The Administrative Agent shall maintain
appropriate records in which shall be recorded (i) the Revolving Commitment and Term Loan
Commitment of each Lender, (ii) the amount of each Loan made hereunder by each Lender, the Class
and Type thereof and the Interest Period applicable thereto, (iii) the date of each continuation
thereof pursuant to Section 2.8, (iv) the date of each conversion of all or a portion
thereof to another Type pursuant to Section 2.8, (v) the date and amount of any principal
or interest due and payable or to become due and payable from the Borrower to each Lender hereunder
in respect of such Loans and (vi) both the date and amount of any sum received by the
Administrative Agent hereunder from the Borrower in respect of the Loans and each Lender’s Pro Rata
Share thereof. The entries made in such records shall be prima facie evidence of the existence and
amounts of the obligations of the Borrower therein recorded, absent manifest error;
provided, that the failure or delay of any Lender or the Administrative Agent in
maintaining or making entries into any such record or any error therein shall not in any manner
affect the obligation of the Borrower to repay the Loans (both principal and unpaid accrued
interest) of such Lender in accordance with the terms of this Agreement.

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          (b) At the request of any Lender (including the Swingline Lender) at any time, the Borrower
agrees that it will execute and deliver to such Lender, as applicable, a Revolving Credit Note
and/or a Term Note and, in the case of the Swingline Lender only, a Swingline Note, payable to the
order of such Lender.

     Section 2.12. Optional Prepayments. The Borrower shall have the right at any time and
from time to time to prepay any Borrowing, in whole or in part, without premium or penalty, by
giving irrevocable written notice (or telephonic notice promptly confirmed in writing) to the
Administrative Agent no later than (i) in the case of prepayment of any Eurodollar Borrowing, 11:00
a.m. (Richmond, Virginia time) not less than three (3) Business Days prior to any such prepayment,
(ii) in the case of any prepayment of any Base Rate Borrowing or an Index Rate Borrowing, 11:00
a.m. (Richmond, Virginia time) on the Business Day of such prepayment, and (iii) in the case of
Swingline Borrowings, 11:00 a.m. (Richmond, Virginia time) on the date of such prepayment, provided
that no notice shall be required for the prepayment of any Cash Management Swingline Loans. Each
such notice shall be irrevocable and shall specify the proposed date of such prepayment and the
principal amount of each Borrowing or portion thereof to be prepaid. Upon receipt of any such
notice, the Administrative Agent shall promptly notify each affected Lender of the contents thereof
and of such Lender’s Pro Rata Share of any such prepayment. If such notice is given, the aggregate
amount specified in such notice shall be due and payable on the date designated in such notice,
together with accrued interest to such date on the amount so prepaid in accordance with Section
2.14(d); provided, that if a Eurodollar Borrowing is prepaid on a date other than the
last day of an Interest Period applicable thereto, the Borrower shall also pay all amounts required
pursuant to Section 2.20. Each partial prepayment of any Loan (other than a Swingline
Loan) shall be in an amount that would be permitted in the case of an advance of a Revolving
Borrowing of the same Type pursuant to Section 2.2 or in the case of a Swingline Loan
pursuant to Section 2.4. Each prepayment of a Borrowing shall be applied ratably to the
Loans comprising such Borrowing, and in the case of a prepayment of a Term Loan Borrowing, to
principal installments in such order of maturity as the Borrower may direct.

     Section 2.13. Mandatory Prepayments.

          (a) No later than the Business Day following the date of receipt by the Borrower or any of its
Subsidiaries of proceeds of any sale or disposition by the Borrower or such Subsidiary of any of
its assets (excluding (i) sales of inventory in the ordinary course of business, (ii) sales of
worn-out, obsolete equipment, (iii) so long as no Event of Default has occurred and is continuing,
sales of assets the proceeds of which are invested into the businesses of the Borrower and its
Subsidiaries within 180 days after such assets are sold and (iv) so long as no Event of Default has
occurred and is continuing, other sales of assets of the Borrower or any of its Subsidiaries with
an aggregate book value not to exceed $1,000,000 in any Fiscal Year) the Borrower shall prepay the
Loans (without any associated permanent reduction of the Commitments) in an amount equal to all
such proceeds, net of commissions and other reasonable and customary transaction costs, fees and
expenses properly attributable to such transaction and payable by the Borrower or such Subsidiary
in connection therewith (in each case, paid to non-Affiliates). Any such prepayment shall be
applied in accordance with Section 2.13(d).

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          (b) If the Borrower or any of its Subsidiaries issues any debt securities (other than
Indebtedness permitted under Section 7.1), then no later than the Business Day following
the date of receipt of the proceeds thereof, Borrower shall prepay the Loans (without any
associated permanent reduction of the Commitments) in an amount equal to all such proceeds, net of
underwriting discounts and commissions and other reasonable costs paid to non-Affiliates in
connection therewith. Any such prepayment shall be applied in accordance with Section
2.13(d).

          (c) No later than the Business Day following the date of receipt by the Borrower or any of its
Subsidiaries of proceeds of any settlement of or payment in respect of any property or casualty
insurance claim or any condemnation proceeding relating to any asset of the Borrower or any of its
Subsidiaries in respect of which the associated proceeds exceed $1,000,000 (excluding, so long as
no Event of Default has occurred and is continuing, proceeds which are invested into the businesses
of the Borrower and its Subsidiaries within 180 days after the receipt of such proceeds) the
Borrower shall prepay the Loans in an amount equal to all such proceeds and payable by such
Borrower or such Subsidiary in connection therewith (in each case, paid to non-Affiliates). Any
such prepayment shall be applied in accordance with Section 2.13(d).

          (d) Subject to Section 8.2, any prepayments made by the Borrower pursuant to
Sections 2.13(a), (b) or (c) above shall be applied as follows:
first, to Administrative Agent’s fees and reimbursable expenses then due and payable
pursuant to any of the Loan Documents; second, to all other fees and reimbursable expenses
of the Lenders and the Issuing Bank then due and payable pursuant to any of the Loan Documents, pro
rata to the Lenders and the Issuing Bank based on their respective Pro Rata Shares of such fees and
expenses; third, to interest then due and payable on the Loans made to Borrower, pro rata
to the Lenders based on their respective Pro Rata Shares; fourth, to the principal balance
of the Swingline Loans, until the same shall have been paid in full, to the Swingline Lender;
fifth, to the principal balance of the Term Loans, until the same shall have been paid in
full, pro rata to the Lenders based on their respective Pro Rata Shares, sixth, to the
principal balance of the Revolving Loans, until the same shall have been paid in full, pro rata to
the Lenders based on their respective Pro Rata Shares and seventh, to the extent that an
Event of Default has occurred and is continuing, to cash collateralize the Letters of Credit in
accordance with Section 2.23(g) in an amount in cash equal to the LC Exposure as of such
date plus any accrued and unpaid fees thereon.

          (e) If at any time the Revolving Credit Exposure of all Lenders exceeds the Aggregate
Revolving Commitment Amount, as reduced pursuant to Section 2.9 or otherwise, the Borrower
shall immediately repay Swingline Loans and Revolving Loans in an amount equal to such excess,
together with all accrued and unpaid interest on such excess amount and any amounts due under
Section 2.20. Each prepayment shall be applied first to the Swingline Loans to the full
extent thereof, second to the Base Rate Loans to the full extent thereof, and finally to Eurodollar
Loans to the full extent thereof. If after giving effect to prepayment of all Swingline Loans and
Revolving Loans, the Revolving Credit Exposure of all Lenders exceeds the Aggregate Revolving
Commitment Amount, the Borrower shall deposit in an account with the Administrative Agent, in the
name of the Administrative Agent and for the benefit of the Issuing Bank and the Lenders, an amount
in cash equal to such excess plus any accrued and unpaid fees

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thereon to be held as collateral for the LC Exposure. Such account shall be administered in
accordance with Section 2.23(g) hereof.

     Section 2.14. Interest on Loans.

          (a) The Borrower shall pay interest on each Base Rate Loan at the Base Rate in effect from
time to time and on each Eurodollar Loan at the Adjusted LIBO Rate for the applicable Interest
Period in effect for such Loan, plus, in each case, the Applicable Margin in effect from time to
time. The Borrower shall pay interest on each Index Rate Loan at the Index Rate plus the
Applicable Margin in effect from time to time. The interest rate on Index Rate Loans shall be
established based on the Index Rate in effect on the first Index Rate Determination Date, and shall
be adjusted on each Index Rate Determination Date thereafter to reflect the Index Rate then in
effect.

          (b) The Borrower shall pay interest on each Swingline Loan at the Swingline Rate in effect
from time to time.

          (c) While an Event of Default exists or after acceleration, at the option of the Required
Lenders, the Borrower shall pay interest (“Default Interest”) with respect to all
Eurodollar Loans and at the rate otherwise applicable for the then-current Interest Period plus an
additional 2% per annum until the last day of such Interest Period, and thereafter, and with
respect to all Index Rate Loans (including all Swingline Loans) and Base Rate Loans and all other
Obligations hereunder (other than Loans), at an all-in rate in effect for Base Rate Loans, plus an
additional 2% per annum.

          (d) Interest on the principal amount of all Loans shall accrue from and including the date
such Loans are made to but excluding the date of any repayment thereof. Interest on all
outstanding Base Rate Revolving Loans and Base Rate Term Loans shall be payable monthly in arrears
on the last day of each calendar month, and on the Revolving Commitment Termination Date or the
Maturity Date, as the case may be. Interest on all outstanding Index Rate Revolving Loans, Index
Rate Term Loans and Swingline Loans shall be payable monthly in arrears on the last day of each
calendar month and on the Revolving Commitment Termination Date or the Maturity Date, as the case
may be. Interest on all outstanding Eurodollar Loans shall be payable on the last day of each
Interest Period applicable thereto, and, in the case of any Eurodollar Loans having an Interest
Period in excess of three months, on each day which occurs every three months after the initial
date of such Interest Period, and on the Revolving Commitment Termination Date or the Maturity
Date, as the case may be. Interest on any Loan which is converted into a Loan of another Type or
which is repaid or prepaid shall be payable on the date of such conversion or on the date of any
such repayment or prepayment (on the amount repaid or prepaid) thereof. All Default Interest shall
be payable on demand.

          (e) The Administrative Agent shall determine each interest rate applicable to the Loans
hereunder and shall promptly notify the Borrower and the Lenders of such rate in writing (or by
telephone, promptly confirmed in writing). Any such determination shall be conclusive and binding
for all purposes, absent manifest error.

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     Section 2.15. Fees.

          (a) The Borrower shall pay to the Administrative Agent for its own account fees in the amounts
and at the times previously agreed upon in writing by the Borrower and the Administrative Agent.

          (b) The Borrower agrees to pay to the Administrative Agent for the account of each Revolving
Loan Lender a commitment fee, which shall accrue at the Applicable Percentage per annum (determined
daily in accordance with Schedule I) on the daily amount of the unused Revolving Commitment
of such Revolving Loan Lender during the Availability Period. For purposes of computing commitment
fees with respect to the Revolving Commitments, the Revolving Commitment of each Revolving Loan
Lender shall be deemed used to the extent of the outstanding Revolving Loans and LC Exposure, but
not Swingline Exposure, of such Revolving Loan Lender.

          (c) The Borrower agrees to pay (i) to the Administrative Agent, for the account of each
Revolving Loan Lender, a letter of credit fee with respect to its participation in each Letter of
Credit, which shall accrue at a rate per annum equal to the Applicable Margin for Eurodollar Loans
then in effect on the average daily amount of such Revolving Loan Lender’s LC Exposure attributable
to such Letter of Credit during the period from and including the date of issuance of such Letter
of Credit to but excluding the date on which such Letter of Credit expires or is drawn in full
(including without limitation any LC Exposure that remains outstanding after the Revolving
Commitment Termination Date) and (ii) to the Issuing Bank for its own account a fronting fee, which
shall accrue at the rate of 0.25% per annum on the average daily amount of the LC Exposure
(excluding any portion thereof attributable to unreimbursed LC Disbursements) during the
Availability Period (or until the date that such Letter of Credit is irrevocably cancelled,
whichever is later), as well as the Issuing Bank’s standard fees with respect to issuance,
amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder.
Notwithstanding the foregoing, if the Required Lenders elect to increase the interest rate on the
Loans to the Default Interest pursuant to Section 2.14(c), the rate per annum used to
calculate the letter of credit fee pursuant to clause (i) above shall automatically be increased by
an additional 2% per annum.

          (d) The Borrower shall pay to the Administrative Agent, for the ratable benefit of each
Lender, the upfront fee previously agreed upon by the Borrower and the Administrative Agent, which
shall be due and payable on the Closing Date.

          (e) Accrued fees under paragraphs (b) and (c) above shall be payable quarterly in arrears on
the last day of each March, June, September and December, commencing on June 30, 2011, and on the
Revolving Commitment Termination Date (and if later, the date the Loans and LC Exposure shall be
repaid in their entirety); provided further, that any such fees accruing after the
Revolving Commitment Termination Date shall be payable on demand.

          (f) Anything herein to the contrary notwithstanding, during such period as a Lender is a
Defaulting Lender, such Defaulting Lender will not be entitled to any fees accruing during such
period pursuant to paragraphs (b) and (c) above (without prejudice to the rights of the Lenders
other than Defaulting Lenders in respect of such fees) and the pro rata payment

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provisions of Section 2.22 will automatically be deemed adjusted to reflect the
provisions of this Section. Such fees shall accrue, but shall only be payable pursuant to
Section 2.27(b).

     Section 2.16. Computation of Interest and Fees. Subject to the following sentence,
all computations of interest and fees hereunder shall be made on the basis of a year of 360 days
for the actual number of days (including the first day but excluding the last day) occurring in the
period for which such interest or fees are payable (to the extent computed on the basis of days
elapsed). Interest hereunder based on the Administrative Agent’s prime lending rate shall be
computed on the basis of a year of 365 days (or 366 days in a leap year) and paid for the actual
number of days elapsed (including the first day but excluding the last day). Each determination by
the Administrative Agent of an interest amount or fee hereunder shall be made in good faith and,
except for manifest error, shall be final, conclusive and binding for all purposes.

     Section 2.17. Inability to Determine Interest Rates. If prior to the commencement of
any Interest Period for any Eurodollar Borrowing or on the Index Rate Determination Date for any
Index Rate Borrowing or a Base Rate Borrowing bearing interest at a rate determined by reference to
the Index Rate,

               (i) the Administrative Agent shall have determined (which determination shall be conclusive
and binding upon the Borrower) that, by reason of circumstances affecting the relevant interbank
market, adequate means do not exist for ascertaining LIBOR for such Interest Period or the Index
Rate on such Index Rate Determination Date, or

               (ii) the Administrative Agent shall have received notice from the Required Lenders that the
Adjusted LIBO Rate or the Index Rate does not adequately and fairly reflect the cost to such
Lenders (or Lender, as the case may be) of making, funding or maintaining their (or its, as the
case may be) Eurodollar Loans for such Interest Period or its Index Rate Loans or its Base Rate
Loans bearing interest at a rate determined by reference to the Index Rate, as applicable,

     the Administrative Agent shall give written notice (or telephonic notice, promptly confirmed
in writing) to the Borrower and to the Lenders as soon as practicable thereafter. Until the
Administrative Agent shall notify the Borrower and the Lenders that the circumstances giving rise
to such notice no longer exist, (i) the obligations of the Lenders to make Eurodollar Revolving
Loans or Index Rate Loans or Base Rate Loans bearing interest at a rate determined by reference to
the Index Rate or to continue or convert outstanding Loans as or into Eurodollar Loans or Index
Rate Loans or Base Rate Loans bearing interest at a rate determined by reference to the Index Rate
shall be suspended and (ii) all such affected Loans shall be converted into Base Rate Loans on the
last day of the then current Interest Period applicable thereto and all Index Rate Loans shall
automatically be converted to Base Rate Loans, unless, in either case, the Borrower prepays such
Loans in accordance with this Agreement. Unless the Borrower notifies the Administrative Agent at
least one Business Day before the date of any Eurodollar Revolving Borrowing or Index Rate
Revolving Borrowing for which a Notice of Revolving Borrowing has previously been given that it
elects not to borrow on such date, then such Revolving Borrowing shall be made as a Base Rate
Borrowing.

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     Section 2.18. Illegality. If any Change in Law shall make it unlawful or
impossible for any Lender to make, maintain or fund any Eurodollar Loan or Index Rate Loan or Base
Rate Loan bearing interest at a rate determined by reference to the Index Rate and such Lender
shall so notify the Administrative Agent, the Administrative Agent shall promptly give notice
thereof to the Borrower and the other Lenders, whereupon until such Lender notifies the
Administrative Agent and the Borrower that the circumstances giving rise to such suspension no
longer exist, the obligation of such Lender to make Eurodollar Loans or Index Rate Loans or Base
Rate Loans bearing interest at a rate determined by reference to the Index Rate, or to continue or
convert outstanding Loans as or into Eurodollar Loans or Index Rate Loans or Base Rate Loans
bearing interest at a rate determined by reference to the Index Rate, shall be suspended. In the
case of the making of a Eurodollar Revolving Borrowing, Eurodollar Term Loan Borrowing, Index Rate
Borrowing or a Base Rate Borrowing bearing interest at a rate determined by reference to the Index
Rate, such Lender’s Revolving Loan or Term Loan, as applicable, shall be made as a Base Rate Loan
as part of the same Revolving Borrowing or Term Loan Borrowing, as the case may be, for the same
Interest Period and if the affected Eurodollar Loan is then outstanding, such Loan shall be
converted to a Base Rate Loan either (i) on the last day of the then current Interest Period
applicable to such Eurodollar Loan if such Lender may lawfully continue to maintain such Loan to
such date or (ii) immediately if such Lender shall determine that it may not lawfully continue to
maintain such Eurodollar Loan to such date, and immediately in the case of an Index Rate Loan or a
Base Rate Loan bearing interest at a rate determined by reference to the Index Rate.
Notwithstanding the foregoing, the affected Lender shall, prior to giving such notice to the
Administrative Agent, designate a different Applicable Lending Office if such designation would
avoid the need for giving such notice and if such designation would not otherwise be
disadvantageous to such Lender in the good faith exercise of its discretion.

     Section 2.19. Increased Costs.

          (a) If any Change in Law shall:

               (i) impose, modify or deem applicable any reserve, special deposit or similar requirement that
is not otherwise included in the determination of the Adjusted LIBO Rate or the Index Rate
hereunder against assets of, deposits with or for the account of, or credit extended by, any Lender
(except any such reserve requirement reflected in the Adjusted LIBO Rate or the Index Rate) or the
Issuing Bank; or

               (ii) impose on any Lender or on the Issuing Bank or the eurodollar interbank market any other
condition affecting this Agreement or any Eurodollar Loans or Index Rate Loans or Base Rate Loans
bearing interest at a rate determined by reference to the Index Rate made by such Lender or any
Letter of Credit or any participation therein;

     and the result of either of the foregoing is to increase the cost to such Lender of
making, converting into, continuing or maintaining a Eurodollar Loan or Index Rate Loan or Base
Rate Loan bearing interest at a rate determined by reference to the Index Rate or to increase the
cost to such Lender or the Issuing Bank of participating in or issuing any Letter of Credit or to
reduce the amount received or receivable by such Lender or the Issuing Bank hereunder (whether
of principal, interest or any other amount), then the Borrower shall promptly pay, upon
written notice (which shall include a statement setting forth the basis for such demand and a
calculation

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of the amount thereof in reasonable detail) from and demand by such Lender on the Borrower (with a
copy of such notice and demand to the Administrative Agent), to the Administrative Agent for the
account of such Lender, within ten days after the date of such notice and demand, the additional
amount or amounts sufficient to compensate such Lender or the Issuing Bank, as the case may be, for
such additional costs incurred or reduction suffered.

          (b) If any Lender or the Issuing Bank shall have determined that on or after the date of this
Agreement any Change in Law regarding capital requirements has or would have the effect of reducing
the rate of return on such Lender’s or the Issuing Bank’s capital (or on the capital of such
Lender’s or the Issuing Bank’s parent corporation) as a consequence of its obligations hereunder or
under or in respect of any Letter of Credit to a level below that which such Lender or the Issuing
Bank or such Lender’s or the Issuing Bank’s parent corporation could have achieved but for such
Change in Law (taking into consideration such Lender’s or the Issuing Bank’s policies or the
policies of such Lender’s or the Issuing Bank’s parent corporation with respect to capital
adequacy), from time to time, within ten days after receipt by the Borrower of written demand
(which shall include a statement setting forth the basis for such demand and a calculation of the
amount thereof in reasonable detail) by such Lender (with a copy thereof to the Administrative
Agent), the Borrower shall pay to such Lender such additional amounts as will compensate such
Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s parent corporation for any such
reduction suffered.

          (c) A certificate of a Lender or the Issuing Bank setting forth the basis for such demand and
a calculation of the amount or amounts necessary to compensate such Lender or the Issuing Bank or
such Lender’s or the Issuing Bank’s parent corporation, as the case may be, specified in paragraph
(a) or (b) of this Section 2.19 shall be delivered to the Borrower (with a copy to the
Administrative Agent) and shall be conclusive, absent manifest error. The Borrower shall pay any
such Lender or the Issuing Bank, as the case may be, such amount or amounts within 10 days after
receipt thereof.

          (d) Failure or delay on the part of any Lender or the Issuing Bank to demand compensation
pursuant to this Section 2.19 shall not constitute a waiver of such Lender’s or the Issuing
Bank’s right to demand such compensation; provided, that the Borrower shall not be required
to compensate a Lender or the Issuing Bank under this Section 2.19 for any increased costs
or reductions incurred more than six (6) months prior to the date that such Lender or the Issuing
Bank notifies the Borrower of such increased costs or reductions and of such Lender’s or the
Issuing Bank’s intention to claim compensation therefor; provided further, that if the
Change in Law giving rise to such increased costs or reductions is retroactive, then such six-month
period shall be extended to include the period of such retroactive effect.

     Section 2.20. Funding Indemnity. In the event of (a) the payment of any principal of
a Eurodollar Loan other than on the last day of the Interest Period applicable thereto (including
as a result of an Event of Default), (b) the conversion or continuation of a Eurodollar Loan other
than on the last day of the Interest Period applicable thereto, or (c) the failure by the Borrower
to borrow, prepay, convert or continue any Eurodollar Loan on the date specified in any applicable
notice (regardless of whether such notice is withdrawn or revoked), then, in any such event, the
Borrower shall compensate each Lender, within five (5) Business Days after written demand from such
Lender, for any loss, cost or expense attributable to such event. In the case of a

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Eurodollar Loan, such loss, cost or expense shall be deemed to include an amount determined by
such Lender to be the excess, if any, of (A) the amount of interest that would have accrued on the
principal amount of such Eurodollar Loan if such event had not occurred at the Adjusted LIBO Rate
applicable to such Eurodollar Loan for the period from the date of such event to the last day of
the then current Interest Period therefor (or in the case of a failure to borrow, convert or
continue, for the period that would have been the Interest Period for such Eurodollar Loan) over
(B) the amount of interest that would accrue on the principal amount of such Eurodollar Loan for
the same period if the Adjusted LIBO Rate were set on the date such Eurodollar Loan was prepaid or
converted or the date on which the Borrower failed to borrow, convert or continue such Eurodollar
Loan. A certificate as to any additional amount payable under this Section 2.20 submitted
to the Borrower by any Lender (with a copy to the Administrative Agent) shall be conclusive, absent
manifest error. The Borrower shall also pay any customary administrative fees charged by such
Lender in connection with the foregoing.

     Section 2.21. Taxes.

          (a) Any and all payments by or on account of any obligation of the Borrower hereunder shall be
made free and clear of and without deduction for any Indemnified Taxes or Other Taxes;
provided, that if the Borrower shall be required to deduct any Indemnified Taxes or Other
Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after
making all required deductions (including deductions applicable to additional sums payable under
this Section 2.21) the Administrative Agent, any Lender or the Issuing Bank (as the case
may be) shall receive an amount equal to the sum it would have received had no such deductions been
made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable law.

          (b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

          (c) The Borrower shall indemnify the Administrative Agent, each Lender and the Issuing Bank,
within five (5) Business Days after written demand therefor, for the full amount of any Indemnified
Taxes or Other Taxes paid by the Administrative Agent, such Lender or the Issuing Bank, as the case
may be, on or with respect to any payment by or on account of any obligation of the Borrower
hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
amounts payable under this Section 2.21) and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto that may become payable by the Administrative
Agent, such Lender or the Issuing Bank, whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as
to the amount of such payment or liability setting forth in reasonable detail the calculation
thereof and delivered to the Borrower by a Lender or the Issuing Bank, or by the Administrative
Agent on its own behalf or on behalf of a Lender or the Issuing Bank, shall be conclusive absent
manifest error.

          (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrower to a Governmental Authority, the Borrower shall deliver to the Administrative Agent the
original or a certified copy of a receipt issued by such Governmental

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Authority evidencing such payment, a copy of the return reporting such payment or other
evidence of such payment reasonably satisfactory to the Administrative Agent.

          (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the Code or any treaty to which the United States is a party, with respect to payments under
this Agreement shall deliver to the Borrower (with a copy to the Administrative Agent), at the time
or times prescribed by applicable law, such properly completed and executed documentation
prescribed by applicable law or reasonably requested by the Borrower as will permit such payments
to be made without withholding or at a reduced rate. Without limiting the generality of the
foregoing, each Foreign Lender agrees that it will deliver to the Administrative Agent and the
Borrower (or in the case of a Participant, to the Lender from which the related participation shall
have been purchased), as appropriate, two (2) duly completed copies of (i) Internal Revenue Service
Form W-8 ECI, or any successor form thereto, certifying that the payments received from the
Borrower hereunder are effectively connected with such Foreign Lender’s conduct of a trade or
business in the United States; or (ii) Internal Revenue Service Form W-8 BEN, or any successor form
thereto, certifying that such Foreign Lender is entitled to benefits under an income tax treaty to
which the United States is a party which reduces the rate of withholding tax on payments of
interest; or (iii) Internal Revenue Service Form W-8 BEN, or any successor form prescribed by the
Internal Revenue Service, together with a certificate (A) establishing that the payment to the
Foreign Lender qualifies as “portfolio interest” exempt from U.S. withholding tax under Code
section 871(h) or 881(c), and (B) stating that (1) the Foreign Lender is not a bank for purposes of
Code section 881(c)(3)(A), or the obligation of the Borrower hereunder is not, with respect
to such Foreign Lender, a loan agreement entered into in the ordinary course of its trade or
business, within the meaning of that section; (2) the Foreign Lender is not a 10% shareholder of
the Borrower within the meaning of Code section 871(h)(3) or 881(c)(3)(B); and (3) the Foreign
Lender is not a controlled foreign corporation that is related to the Borrower within the meaning
of Code section 881(c)(3)(C); or (iv) such other Internal Revenue Service forms as may be
applicable to the Foreign Lender, including Forms W-8 IMY or W-8 EXP. Each such Foreign Lender
shall deliver to the Borrower and the Administrative Agent such forms on or before the date that it
becomes a party to this Agreement (or in the case of a Participant, on or before the date such
Participant purchases the related participation). In addition, each such Foreign Lender shall
deliver such forms promptly upon the obsolescence or invalidity of any form previously delivered by
such Foreign Lender. Each such Foreign Lender shall promptly notify the Borrower and the
Administrative Agent at any time that it determines that it is no longer in a position to provide
any previously delivered certificate to the Borrower (or any other form of certification adopted by
the Internal Revenue Service for such purpose).

     Section 2.22. Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

          (a) Each Borrowing hereunder, each payment by the Borrower on account of any commitment fee or
Letter of Credit fee (other than the fronting fee payable solely to the Issuing Bank) and any
reduction of the Revolving Commitments of the Revolving Loan Lenders shall be made pro
rata according to the respective Pro Rata Shares of the relevant Lenders. Each payment
(other than prepayments) in respect of principal or interest in respect of the Loans and each
payment in respect of fees payable hereunder shall be applied to the amounts of such

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obligations owing to the Lenders pro rata according to the respective amounts
then due and owing to the Lenders.

          (b) Each payment (including each prepayment) of the Term Loans shall be allocated among the
Term Loan Lenders holding such Term Loans pro rata based on the principal amount of
such Term Loans held by such Term Loan Lenders. Voluntary prepayments shall be applied as provided
in Section 2.12, and all other prepayments shall be applied pro rata to the remaining installments
of such Term Loans. Amounts prepaid on account of the Term Loans may not be reborrowed.

          (c) Each payment (including each prepayment) by the Borrower on account of principal of and
interest on the Revolving Loans shall be made pro rata according to the respective
outstanding principal amounts of the Revolving Loans then held by the Revolving Loan Lenders. Each
payment in respect of LC Disbursements in respect of any Letter of Credit shall be made to the
Issuing Bank that issued such Letters of Credit.

          (d) The Borrower shall make each payment required to be made by it hereunder (whether of
principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under
Sections 2.19, 2.20 or 2.21, or otherwise) prior to 12:00 noon (Richmond,
Virginia time) on the date when due, in immediately available funds, free and clear of any
defenses, rights of set-off, counterclaim, or withholding or deduction of taxes. Any amounts
received after such time on any date may, in the discretion of the Administrative Agent, be deemed
to have been received on the next succeeding Business Day for purposes of calculating interest
thereon. All such payments shall be made to the Administrative Agent at the Payment Office, except
payments to be made directly to the Issuing Bank or Swingline Lender as expressly provided herein
and except that payments pursuant to Sections 2.19, 2.20 and 2.21 and
10.3 shall be made directly to the Persons entitled thereto. The Administrative Agent
shall distribute any such payments received by it for the account of any other Person to the
appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on
a day that is not a Business Day, the date for payment shall be extended to the next succeeding
Business Day, and, in the case of any payment accruing interest, interest thereon shall be made
payable for the period of such extension. All payments hereunder shall be made in Dollars.

          (e) If at any time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then
due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest
and fees then due to such parties, (ii) second, towards payment of principal and unreimbursed LC
Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with the
amounts of principal and unreimbursed LC Disbursements then due to such parties and (iii) last,
towards payment of all other Obligations then due, ratably among the parties entitled thereto in
accordance with the amounts of such Obligations then due to such parties.

          (f) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Revolving Loans or
participations in LC Disbursements or Swingline Loans that would result in such Lender

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receiving payment of a greater proportion of the aggregate amount of its Revolving Loans and
participations in LC Disbursements and Swingline Loans and accrued interest thereon than the
proportion received by any other Lender, then the Lender receiving such greater proportion shall
purchase (for cash at face value) participations in the Revolving Loans and participations in LC
Disbursements and Swingline Loans of other Lenders to the extent necessary so that the benefit of
all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of
principal of and accrued interest on their respective Revolving Loans and participations in LC
Disbursements and Swingline Loans; provided, that (i) if any such participations are
purchased and all or any portion of the payment giving rise thereto is recovered, such
participations shall be rescinded and the purchase price restored to the extent of such recovery,
without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any
payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement
or any payment obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Loans or participations in LC Disbursements or Swingline Loans to any
assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to
which the provisions of this paragraph shall apply). The Borrower consents to the foregoing and
agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against the Borrower rights of
set-off and counterclaim with respect to such participation as fully as if such Lender were a
direct creditor of the Borrower in the amount of such participation.

          (g) Unless the Administrative Agent shall have received notice from the Borrower prior to the
date on which any payment is due to the Administrative Agent for the account of the Lenders or the
Issuing Bank hereunder that the Borrower will not make such payment, the Administrative Agent may
assume that the Borrower has made such payment on such date in accordance herewith and may, in
reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be,
the amount or amounts due. In such event, if the Borrower has not in fact made such payment, then
each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank
with interest thereon, for each day from and including the date such amount is distributed to it to
but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds
Effective Rate and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation.

          (h) If any Lender shall fail to make any payment required to be made by it pursuant to
Section 2.4(c), 2.4(d), 2.7(b), 2.22(d), 2.23(d) or
(e) or 10.3(d), then the Administrative Agent may, in its discretion
(notwithstanding any contrary provision hereof), apply any amounts thereafter received by the
Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such
Sections until all such unsatisfied obligations are fully paid.

     Section 2.23. Letters of Credit.

          (a) During the Availability Period, the Issuing Bank, in reliance upon the agreements of the
other Revolving Loan Lenders pursuant to Section 2.23(d), agrees to issue, at the request
of the Borrower, Letters of Credit for the account of the Borrower on the terms and

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conditions hereinafter set forth; provided, that (i) each Letter of Credit shall
expire on the earlier of (A) the date one year after the date of issuance of such Letter of Credit
(or in the case of any renewal or extension thereof, one year after such renewal or extension) and
(B) the date that is five (5) Business Days prior to the Revolving Commitment Termination Date;
(ii) each Letter of Credit shall be in a stated amount of at least $100,000 (or such other amount
as may be agreed to by the Issuing Bank); (iii) the Borrower may not request any Letter of Credit,
if, after giving effect to such issuance (A) the aggregate LC Exposure would exceed the LC
Commitment or (B) the aggregate Revolving Credit Exposure of all Lenders would exceed the Aggregate
Revolving Commitment Amount and (iv) except as provided in Section 3.2(f), the Issuing Bank
shall not be required to issue any Letter of Credit if there is any Defaulting Lender or Potential
Defaulting Lender at the time of such request or issuance. Each Revolving Loan Lender shall be
deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Issuing Bank
without recourse a participation in each Letter of Credit equal to such Revolving Loan Lender’s Pro
Rata Share of the aggregate amount available to be drawn under such Letter of Credit (i) on the
Closing Date with respect to all Existing Letters of Credit and (ii) on the date of issuance with
respect to all other Letters of Credit. Each issuance of a Letter of Credit shall be deemed to
utilize the Revolving Commitment of each Revolving Loan Lender by an amount equal to the amount of
such participation.

          (b) To request the issuance of a Letter of Credit (or any amendment, renewal or extension of
an outstanding Letter of Credit), the Borrower shall give the Issuing Bank and the Administrative
Agent irrevocable written notice at least three (3) Business Days (or such earlier date as may be
agreed to by the Issuing Bank and the Administrative Agent) prior to the requested date of such
issuance specifying the date (which shall be a Business Day) such Letter of Credit is to be issued
(or amended, extended or renewed, as the case may be), the expiration date of such Letter of
Credit, the amount of such Letter of Credit, the name and address of the beneficiary thereof and
such other information as shall be necessary to prepare, amend, renew or extend such Letter of
Credit. In addition to the satisfaction of the conditions in Article 3 the issuance of
such Letter of Credit (or any amendment which increases the amount of such Letter of Credit) will
be subject to the further conditions that such Letter of Credit shall be in such form and contain
such terms as the Issuing Bank shall approve and that the Borrower shall have executed and
delivered any additional applications, agreements and instruments relating to such Letter of Credit
as the Issuing Bank shall reasonably require; provided, that in the event of any conflict
between such applications, agreements or instruments and this Agreement, the terms of this
Agreement shall control; provided, further that the following are specific
conditions under which the Issuing Bank may refuse to issue Letters of Credit:

          (i) any order, judgment or decree of any Governmental Authority or arbitrator shall by its
terms purport to enjoin or restrain the Issuing Bank from issuing such Letter of Credit, or any Law
applicable to the Issuing Bank or any request or directive (whether or not having the force of law)
from any Governmental Authority with jurisdiction over the Issuing Bank shall prohibit, or request
that the Issuing Bank refrain from, the issuance of letters of credit generally or such Letter of
Credit in particular or shall impose upon the Issuing Bank with respect to such Letter of Credit
any restriction, reserve or capital requirement (for which the Issuing Bank is not otherwise
compensated hereunder) not in effect on the Closing Date, or shall impose upon the Issuing Bank any
unreimbursed loss, cost or expense which was not applicable

47

 

on the Closing Date and which the Issuing Bank in good faith deems material to it (for which
the Issuing Bank is not otherwise compensated hereunder); or

               (ii) the issuance of such Letter of Credit would violate one or more policies of the Issuing
Bank applicable to letters of credit generally; or

               (iii) such Letter of Credit is to be denominated in a currency other than Dollars.

          (c) At least two Business Days (or such earlier date as may be agreed to by the Issuing Bank
and the Administrative Agent) prior to the issuance of any Letter of Credit, the Issuing Bank will
confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent
has received such notice and if not, the Issuing Bank will provide the Administrative Agent with a
copy thereof. Unless the Issuing Bank has received notice from the Administrative Agent or any
Revolving Loan Lender on or before the Business Day immediately preceding the date the Issuing Bank
is to issue the requested Letter of Credit directing the Issuing Bank not to issue the Letter of
Credit because such issuance is not then permitted hereunder because of the limitations set forth
in Section 2.23(a), or that one or more conditions specified in Article 3 are not
then satisfied, then, subject to the terms and conditions hereof, the Issuing Bank shall, on the
requested date, issue such Letter of Credit in accordance with the Issuing Bank’s usual and
customary business practices.

          (d) The Issuing Bank shall examine all documents purporting to represent a demand for payment
under a Letter of Credit promptly following its receipt thereof. The Issuing Bank shall notify the
Borrower and the Administrative Agent of such demand for payment and whether the Issuing Bank has
made or will make a LC Disbursement thereunder; provided, that any failure to give or delay
in giving such notice shall not relieve the Borrower of its obligation to reimburse the Issuing
Bank and the Revolving Loan Lenders with respect to such LC Disbursement. The Borrower shall be
irrevocably and unconditionally obligated to reimburse the Issuing Bank for any LC Disbursements
paid by the Issuing Bank in respect of such drawing, without presentment, demand or other
formalities of any kind. Unless the Borrower shall have notified the Issuing Bank and the
Administrative Agent prior to 11:00 a.m. (Richmond, Virginia time) on the Business Day immediately
prior to the date on which such drawing is honored that the Borrower intends to reimburse the
Issuing Bank for the amount of such drawing in funds other than from the proceeds of Revolving
Loans, the Borrower shall be deemed to have timely given a Notice of Revolving Borrowing to the
Administrative Agent requesting the Revolving Loan Lenders to make a Base Rate Borrowing on the
date on which such drawing is honored in an exact amount due to the Issuing Bank; provided,
that for purposes solely of such Borrowing, the conditions precedent set forth in Section
3.2 hereof shall not be applicable. The Administrative Agent shall notify the Lenders of such
Borrowing in accordance with Section 2.3, and each Revolving Loan Lender shall make the
proceeds of its Base Rate Loan included in such Borrowing available to the Administrative Agent for
the account of the Issuing Bank in accordance with Section 2.7. The proceeds of such
Borrowing shall be applied directly by the Administrative Agent to reimburse the Issuing Bank for
such LC Disbursement.

          (e) If for any reason a Base Rate Borrowing may not be (as determined in the sole discretion
of the Administrative Agent), or is not, made in accordance with the foregoing

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provisions, then each Revolving Loan Lender (other than the Issuing Bank) shall be obligated
to fund the participation that such Revolving Loan Lender purchased pursuant to subsection (a) in
an amount equal to its Pro Rata Share of such LC Disbursement on and as of the date which such Base
Rate Borrowing should have occurred. Each Revolving Loan Lender’s obligation to fund its
participation shall be absolute and unconditional and shall not be affected by any circumstance,
including without limitation (i) any setoff, counterclaim, recoupment, defense or other right that
such Lender or any other Person may have against the Issuing Bank or any other Person for any
reason whatsoever, (ii) the existence of a Default or an Event of Default or the termination of the
Aggregate Revolving Commitments, (iii) any adverse change in the condition (financial or otherwise)
of the Borrower or any of its Subsidiaries, (iv) any breach of this Agreement by the Borrower or
any other Lender, (v) any amendment, renewal or extension of any Letter of Credit or (vi) any other
circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. On
the date that such participation is required to be funded, each Revolving Loan Lender shall
promptly transfer, in immediately available funds, the amount of its participation to the
Administrative Agent for the account of the Issuing Bank. Whenever, at any time after the Issuing
Bank has received from any such Revolving Loan Lender the funds for its participation in a LC
Disbursement, the Issuing Bank (or the Administrative Agent on its behalf) receives any payment on
account thereof, the Administrative Agent or the Issuing Bank, as the case may be, will distribute
to such Revolving Loan Lender its Pro Rata Share of such payment; provided, that if such
payment is required to be returned for any reason to the Borrower or to a trustee, receiver,
liquidator, custodian or similar official in any bankruptcy proceeding, such Lender will return to
the Administrative Agent or the Issuing Bank any portion thereof previously distributed by the
Administrative Agent or the Issuing Bank to it.

          (f) To the extent that any Revolving Loan Lender shall fail to pay any amount required to be
paid pursuant to paragraphs (d) or (e) above on the due date therefor, such Revolving Loan Lender
shall pay interest to the Issuing Bank (through the Administrative Agent) on such amount from such
due date to the date such payment is made at a rate per annum equal to the Federal Funds Rate;
provided, that if such Revolving Loan Lender shall fail to make such payment to the Issuing
Bank within three (3) Business Days of such due date, then, retroactively to the due date, such
Revolving Loan Lender shall be obligated to pay interest on such amount at the rate set forth in
Section 2.14(c).

          (g) If any Event of Default shall occur and be continuing, on the Business Day that the
Borrower receives notice from the Administrative Agent or the Required Lenders demanding the
deposit of cash collateral pursuant to this paragraph, the Borrower shall deposit in an account
with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the
Issuing Bank and the Revolving Loan Lenders, an amount in cash equal to the LC Exposure as of such
date plus any accrued and unpaid fees thereon; provided, that the obligation to deposit
such cash collateral shall become effective immediately, and such deposit shall become immediately
due and payable, without demand or notice of any kind, upon the occurrence of any Event of Default
with respect to the Borrower described in clause (h) or (i) of Section 8.1. Such deposit
shall be held by the Administrative Agent as collateral for the payment and performance of the
obligations of the Borrower under this Agreement. The Administrative Agent shall have exclusive
dominion and control, including the exclusive right of withdrawal, over such account. Borrower
agrees to execute any documents and/or certificates to effectuate the intent of this paragraph.
Other than any interest earned on the investment of such deposits,

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which investments shall be made at the option and sole discretion of the Administrative Agent
and at the Borrower’s risk and expense, such deposits shall not bear interest. Interest and
profits, if any, on such investments shall accumulate in such account. Moneys in such account
shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for
which it had not been reimbursed and to the extent so applied, shall be held for the satisfaction
of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the
maturity of the Loans has been accelerated, with the consent of the Required Lenders, be applied to
satisfy other obligations of the Borrower under this Agreement and the other Loan Documents. If
the Borrower is required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not so applied as aforesaid) shall be
returned to the Borrower within three Business Days after all Events of Default have been cured or
waived.

          (h) Promptly following the end of each calendar quarter, the Issuing Bank shall deliver
(through the Administrative Agent) to each Lender and the Borrower a report describing the
aggregate Letters of Credit outstanding at the end of such Fiscal Quarter. Upon the request of any
Lender from time to time, the Issuing Bank shall deliver to such Lender any other information
reasonably requested by such Lender with respect to each Letter of Credit then outstanding.

          (i) The Borrower’s obligation to reimburse LC Disbursements hereunder shall be absolute,
unconditional and irrevocable and shall be performed strictly in accordance with the terms of this
Agreement under all circumstances whatsoever and irrespective of any of the following
circumstances:

               (i) Any lack of validity or enforceability of any Letter of Credit or this Agreement;

               (ii) The existence of any claim, set-off, defense or other right which the Borrower or any
Subsidiary or Affiliate of the Borrower may have at any time against a beneficiary or any
transferee of any Letter of Credit (or any Persons or entities for whom any such beneficiary or
transferee may be acting), any Lender (including the Issuing Bank) or any other Person, whether in
connection with this Agreement or the Letter of Credit or any document related hereto or thereto or
any unrelated transaction;

               (iii) Any draft or other document presented under a Letter of Credit proving to be forged,
fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any
respect;

               (iv) Payment by the Issuing Bank under a Letter of Credit against presentation of a draft or
other document to the Issuing Bank that does not comply with the terms of such Letter of Credit;

               (v) Any other event or circumstance whatsoever, whether or not similar to any of the
foregoing, that might, but for the provisions of this Section 2.23, constitute a legal or
equitable discharge of, or provide a right of setoff against, the Borrower’s obligations hereunder;
or

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               (vi) The existence of a Default or an Event of Default.

     Neither the Administrative Agent, the Issuing Bank, the Lenders nor any Related Party of any
of the foregoing shall have any liability or responsibility by reason of or in connection with the
issuance or transfer of any Letter of Credit or any payment or failure to make any payment
thereunder (irrespective of any of the circumstances referred to above), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or other communication
under or relating to any Letter of Credit (including any document required to make a drawing
thereunder), any error in interpretation of technical terms or any consequence arising from causes
beyond the control of the Issuing Bank; provided, that the foregoing shall not be construed
to excuse (i) the Issuing Bank from liability to the Borrower to the extent of any actual direct
damages (as opposed to special, indirect (including claims for lost profits or other consequential
damages), or punitive damages, claims in respect of which are hereby waived by the Borrower to the
extent permitted by applicable law) suffered by the Borrower that are caused by the Issuing Bank’s
failure to exercise due care when determining whether drafts or other documents presented under a
Letter of Credit comply with the terms thereof or (ii) the Issuing Bank or any Related Party of any
of the foregoing from the Issuing Bank’s gross negligence or willful misconduct as determined in a
final, nonappealable judgment of a court of competent jurisdiction. The parties hereto expressly
agree, that in the absence of gross negligence or willful misconduct on the part of the Issuing
Bank (as finally determined by a court of competent jurisdiction), the Issuing Bank shall be deemed
to have exercised due care in each such determination. In furtherance of the foregoing and without
limiting the generality thereof, the parties agree that, with respect to documents presented that
appear on their face to be in substantial compliance with the terms of a Letter of Credit, the
Issuing Bank may, in its sole discretion, either accept and make payment upon such documents
without responsibility for further investigation, regardless of any notice or information to the
contrary, or refuse to accept and make payment upon such documents if such documents are not in
strict compliance with the terms of such Letter of Credit.

     (j) Unless otherwise expressly agreed by the Issuing Bank and the Borrower when a Letter of
Credit is issued and subject to applicable laws, performance under Letters of Credit by the Issuing
Bank, its correspondents, and the beneficiaries thereof will be governed by the rules of the
“International Standby Practices 1998” (ISP98) (or such later revision as may be published by the
Institute of International Banking Law & Practice on any date any Letter of Credit may be issued)
and to the extent not inconsistent therewith, the governing law of this Agreement set forth in
Section 10.5.

     Section 2.24. Intentionally Deleted.

     Section 2.25. Mitigation of Obligations. If any Lender requests compensation under
Section 2.19, or if the Borrower is required to pay any additional amount to any Lender or
any Governmental Authority for the account of any Lender pursuant to Section 2.21, then
such Lender shall use reasonable efforts to designate a different lending office for funding or
booking its Loans hereunder or to assign its rights and obligations hereunder to another of its
offices, branches or affiliates, if, in the sole judgment of such Lender, such designation or
assignment (i) would eliminate or reduce amounts payable under Section 2.19 or Section
2.21, as the case may be, in the future and (ii) would not subject such Lender to any
unreimbursed cost or expense and

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would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all
costs and expenses incurred by any Lender in connection with such designation or assignment.

     Section 2.26. Replacement of Lenders. If any Lender is unable to fund any Eurodollar
Loan or Index Rate Loan pursuant to Section 2.17(ii) or Section 2.18 or if any
Lender requests compensation under Section 2.19, or if the Borrower is required to pay any
additional amount to any Lender or any Governmental Authority of the account of any Lender pursuant
to Section 2.21, or if any Lender is a Defaulting Lender or defaults in its obligation to
fund Loans hereunder or comply with the provisions of Section 2.21(e) or if any Lender does
not provide its consent to any proposed waiver or amendment which is not effective unless consented
to by the Required Lenders (or such higher percentage or proportion of the Lenders as herein
provided), then the Borrower may, at its sole expense and effort, upon notice to such Lender and
the Administrative Agent, require such Lender to assign and delegate, without recourse (in
accordance with and subject to the restrictions set forth in Section 10.4(b)) all its
interests, rights and obligations under this Agreement to an assignee that shall assume such
obligations (which assignee may be another Lender); provided, that (i) the Borrower shall
have received the prior written consent of the Administrative Agent, which consent shall not be
unreasonably withheld (provided that such consent shall not be required to the extent an assignment
pursuant to Section 10.4 to such assignee would not require the consent of the
Administrative Agent), (ii) such Lender shall have received payment of an amount equal to the
outstanding principal amount of all Loans owed to it, accrued interest thereon, accrued fees and
all other amounts payable to it hereunder, from the assignee (in the case of such outstanding
principal and accrued interest) and from the Borrower (in the case of all other amounts) and (iii)
in the case of a claim for compensation under Section 2.19 or payments required to be made
pursuant to Section 2.21, such assignment will result in a reduction in such compensation
or payments. A Lender shall not be required to make any such assignment and delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the
Borrower to require such assignment and delegation cease to apply.

     Section 2.27. Defaulting Lender. If a Lender becomes, and during the period it
remains, a Defaulting Lender, the following provisions shall apply with respect to any outstanding
LC Exposure and any outstanding Swingline Exposure of such Defaulting Lender:

          (a) the Borrower will, not less than one Business Day after demand by the Administrative Agent
(at the direction of the Issuing Bank and/or the Swingline Lender, as the case may be), (i) to the
extent not otherwise reallocated among all other Lenders that are Non-Defaulting Lenders in
accordance with Section 3.2(f), cash collateralize (in accordance with Section
2.23(g)) a portion of the obligations of the Borrower owed to the Issuing Bank and the
Swingline Lender equal to such Defaulting Lender’s LC Exposure or Swingline Exposure, as the case
may be, (ii) in the case of such Swingline Exposure, prepay all Swingline Loans or (iii) make other
arrangements reasonably satisfactory to the Administrative Agent, and to the Issuing Bank and the
Swingline Lender, as the case may be, in their reasonable discretion to protect them against the
risk of non-payment by such Defaulting Lender; and

          (b) any amount paid by the Borrower for the account of a Defaulting Lender under this
Agreement (whether on account of principal, interest, fees, indemnity payments or

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other amounts)
will not be paid or distributed to such Defaulting Lender, but will instead be
retained by the Administrative Agent in a segregated non-interest-bearing account until the
termination of the Commitments and payment in full of all obligations of the Borrower hereunder and
will be applied by the Administrative Agent, to the fullest extent permitted by law, to the making
of payments from time to time in the following order of priority: first to the payment of any
amounts owing by such Defaulting Lender to the Administrative Agent under this Agreement, second to
the payments of any amounts owing by such Defaulting Lender to the Issuing Bank or the Swingline
Lender (pro rata as to the respective amounts owing to each of them) under this Agreement, third to
the payment of post-default interest and then current interest due and payable to Lenders other
than Defaulting Lenders, ratably among them in accordance with the amounts of such interest then
due and payable to them, fourth to the payment of fees then due and payable to the Non-Defaulting
Lenders hereunder, ratably among them in accordance with the amount of such fees then due and
payable to them, fifth to pay principal and unreimbursed LC Disbursements then due and payable to
the Non-Defaulting Lenders hereunder ratably in accordance with the amounts then due and payable to
them, sixth to the ratable payment of other amounts then due and payable to the Non-Defaulting
Lenders, and seventh after the termination of the Commitments and payment in full of all
obligations of the Borrower hereunder, to pay amounts owing under this Agreement to such Defaulting
Lender or as a court of competent jurisdiction may otherwise direct.

     Section 2.28. Certain Permitted Amendments.

          (a) The Borrower may, by written notice to the Administrative Agent from time to time make one
or more offers (each, a “Loan Modification Offer”) to all the Lenders to make one or more
Permitted Amendments pursuant to procedures reasonably specified by the Administrative Agent and
reasonably acceptable to the Borrower. Such notice shall set forth (i) the terms and conditions of
the requested Permitted Amendment and (ii) the date on which such Permitted Amendment is requested
to become effective (which shall not be less than 10 Business Days nor more than 30 Business Days
after the date of such notice, in each case, unless otherwise agreed to by the Administrative
Agent). Notwithstanding anything to the contrary in Section 10.2, each Permitted Amendment
shall only require the consent of the Borrower, the Administrative Agent and those Lenders that
accept the applicable Loan Modification Offer (such Lenders, the “Accepting Lenders”), and
each Permitted Amendment shall become effective only with respect to the Loans and Revolving
Commitments of the Accepting Lenders. In connection with any Loan Modification Offer, the Borrower
may, at its sole option, terminate or reduce the aggregate Revolving Commitments, and/or repay or
reduce any Term Loans, of one or more of the Lenders that are not Accepting Lenders. Additionally,
to the extent the Borrower has reduced the Revolving Commitments and/or Term Loans of such Lenders,
it may request any other financial institution (with the consent of the Administrative Agent, such
consent not to be unreasonably conditioned, delayed or withheld) to provide a commitment to make
loans on the terms set forth in such Loan Modification Offer in an amount not to exceed the amount
of the Revolving Commitments and Term Loans reduced pursuant to the preceding sentence.
Notwithstanding any other provision hereof, the Borrower shall not be entitled to have more than
one Loan Modification Offer outstanding at any one time, nor to make more than five Loan
Modification Offers during the term of the Loans.

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          (b) The Borrower and each Accepting Lender shall execute and deliver to the Administrative
Agent a Loan Modification Agreement and such other documentation as the
Administrative Agent shall reasonably specify to evidence the acceptance of the Permitted
Amendments and the terms and conditions thereof. The Administrative Agent shall promptly notify
each Lender as to the effectiveness of each Loan Modification Agreement. Each of the parties
hereto hereby agrees that, upon the effectiveness of any Loan Modification Agreement, this
Agreement shall be deemed amended to the extent (but only to the extent) necessary to reflect the
existence and terms of the Permitted Amendment evidenced thereby and only with respect to the Loans
and Revolving Commitments of the Accepting Lenders, including any amendments necessary to treat the
applicable Loans and/or Revolving Commitments of the Accepting Lenders as a new “Class” of loans
and/or revolving commitments hereunder. Notwithstanding the foregoing, no Permitted Amendment
shall become effective unless the Administrative Agent, to the extent reasonably requested by the
Administrative Agent, shall have received legal opinions, board resolutions, officer’s and
secretary’s certificates and other documentation consistent with those delivered on the Closing
Date under this Agreement.

          (c) “Permitted Amendments” means any or all of the following: (i) an extension of the
Maturity Date and/or the Revolving Commitment Termination Date applicable solely to the Loans
and/or Revolving Commitments of the Accepting Lenders, (ii) a delay in the timing of any scheduled
amortization payments to be made in respect of the Term Loans of any Accepting Lender, (iii) an
increase in the interest rate with respect to the Loans and/or Revolving Commitments of the
Accepting Lenders, (iv) the inclusion of additional fees to be payable to the Accepting Lenders in
connection with the Permitted Amendment (including any upfront fees), (v) such amendments to this
Agreement and the other Loan Documents as shall be appropriate, in the reasonable judgment of the
Administrative Agent, to provide the rights and benefits of this Agreement and other Loan Documents
to each new “Class” of loans and/or commitments resulting therefrom, provided, that (A) the
allocation of the participation exposure with respect to any then-existing or subsequently issued
or made Letter of Credit or Swingline Loan as between the revolving commitments of such new “Class”
and the Revolving Commitments of the then-existing Lenders shall be made on a pro rata basis as
between the revolving commitments of such new “Class” and the Revolving Commitments of the
then-existing Revolving Loan Lenders, (B) the LC Commitment and Swingline Commitment may not be
extended without the prior written consent of the Issuing Bank or the Swingline Lender, as
applicable, and only to the extent the LC Commitment or Swingline Commitment so extended does not
exceed the aggregate Revolving Commitments extended pursuant to clause (i) above, (C) payments of
principal and interest on Loans (including loans of Accepting Lenders) shall continue to be shared
pro rata in accordance with Section 2.22, except that notwithstanding Section 2.22,
the Loans and Revolving Commitments of the Lenders that are not Accepting Lenders may be repaid and
terminated on their applicable Maturity Date and/or Revolving Commitment Termination Date, as the
case may be, without any pro rata reduction of the revolving commitments and repayment of loans of
Accepting Lenders with a different Maturity Date and/or Revolving Commitment Termination Date, and
(vi) such other amendments to this Agreement and the other Loan Documents as shall be appropriate,
in the reasonable judgment of the Administrative Agent, to give effect to the foregoing Permitted
Amendments. The expenses of the transactions contemplated by this Section 2.28 shall be
paid by the Borrower in accordance with Section 10.3(a).

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          (d) This Section 2.28 shall supersede any provision in Section 10.2 to the
contrary. Notwithstanding any reallocation into extending and non-extending “Classes” in
connection with a Permitted Amendment, all Loans to the Borrower under this Agreement shall
rank pari-passu in right of payment.

ARTICLE 3

CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT

     Section 3.1. Conditions To Effectiveness. The obligations of the Lenders (including
the Swingline Lender) to make Loans and the obligation of the Issuing Bank to issue any Letter of
Credit hereunder shall not become effective until the date on which each of the following
conditions is satisfied (or waived in accordance with Section 10.2).

          (a) The Administrative Agent shall have received all fees and other amounts due and payable on
or prior to the Closing Date (other than Closing Date Legal Costs), including reimbursement or
payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder,
under any other Loan Document and under any agreement with the Administrative Agent or STRH
(including the Fee Letter).

          (b) The Administrative Agent (or its counsel) shall have received the following:

               (i) a counterpart of this Agreement signed by or on behalf of each party hereto or written
evidence satisfactory to the Administrative Agent (which may include telecopy transmission of a
signed signature page of this Agreement) that such party has signed a counterpart of this
Agreement;

               (ii) duly executed Notes payable to each Lender requesting a note (including the Swingline
Note payable to the Swingline Lender);

               (iii) the Subsidiary Guaranty Agreement duly executed by each Subsidiary Loan Party;

               (iv) the Security Agreement duly executed by the Borrower and each Subsidiary Loan Party;

               (v) the Pledge Agreement duly executed by the Borrower and each Subsidiary Loan Party;

               (vi) copies of duly executed payoff letters, in form and substance satisfactory to
Administrative Agent, executed by each holder of existing Indebtedness or the agent thereof, and a
Perfection Certificate (as defined in the Security Agreement) with respect to the Loan Parties
dated the Closing Date and duly executed by a Responsible Officer of the Borrower; together with
(a) the results of a search of the Uniform Commercial Code filings (or equivalent filings) made
with respect to the Loan Parties in the states (or other jurisdictions) of formation of such
Persons and in which the chief executive office of each such Person is located and in the other
jurisdictions in which such Persons maintain property or do business, together

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with copies of the
financing statements (or similar documents) disclosed by such search, (b) UCC-3 or other
appropriate termination statements, in form and substance satisfactory to
Administrative Agent, releasing all liens of such holders or agent upon any of the personal
property of the Borrower and its Subsidiaries and (c) any other releases, terminations or other
documents reasonably required by the Administrative Agent to evidence the payoff of such
Indebtedness;

               (vii) Reserved;

               (viii) a certificate of the Secretary or Assistant Secretary of each Loan Party in form and
substance acceptable to the Administrative Agent, attaching and certifying copies of its bylaws and
of the resolutions of its boards of directors, or partnership agreement or limited liability
company agreement, or comparable organizational documents and authorizations, authorizing the
execution, delivery and performance of the Loan Documents to which it is a party and certifying the
name, title and true signature of each officer of such Loan Party executing the Loan Documents to
which it is a party;

               (ix) certified copies of the articles or certificate of incorporation, certificate of
organization or limited partnership, or other registered organizational documents of each Loan
Party, together with certificates of good standing or existence, as may be available from the
Secretary of State of the jurisdiction of organization of such Loan Party;

               (x) Reserved;

               (xi) favorable written opinion of Hogan Lovells US LLP, counsel to the Loan Parties, addressed
to the Administrative Agent and each of the Lenders, and covering such matters relating to the Loan
Parties, the Loan Documents and the transactions contemplated therein as the Administrative Agent
or the Required Lenders shall reasonably request;

               (xii) a certificate, in form and substance acceptable to the Administrative Agent, dated the
Closing Date and signed by a Responsible Officer, certifying that (x) no Default or Event of
Default exists, (y) all representations and warranties of each Loan Party set forth in the Loan
Documents are true and correct in all material respects (or, if qualified by materiality, in all
respects) and (z) since December 31, 2010, there shall have been no change which has had or could
reasonably be expected to have a Material Adverse Effect;

               (xiii) with respect to any Loan to be funded on the Closing Date, if any, a duly executed
Notice of Borrowing;

               (xiv) with respect to any Loan to be funded on the Closing Date, if any, a duly executed funds
disbursement agreement, together with a report setting forth the sources and uses of the proceeds
of the Loans to be disbursed on the Closing Date;

               (xv) certified copies of all consents, approvals, authorizations, registrations and filings
and orders required to be made or obtained under any Requirement of Law, or by any Contractual
Obligation of each Loan Party, in connection with the execution, delivery and performance of the
Loan Documents by each Loan Party, and the validity and enforceability of the Loan Documents
against each Loan Party or any of the transactions

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contemplated thereby, and such consents,
approvals, authorizations, registrations, filings and orders shall be in full force and effect and
all applicable waiting periods shall have expired, and
no investigation or inquiry by any Governmental Authority regarding the Loans or any
transaction being financed with the proceeds thereof shall be ongoing;

               (xvi) Reserved;

               (xvii) Reserved;

               (xviii) copies of (A) the internally prepared quarterly financial statements of Borrower and
its Subsidiaries on a consolidated basis for the Fiscal Quarter ending on December 31, 2010, and
(B) the audited consolidated financial statements for Borrower and its Subsidiaries for the Fiscal
Years ending December 31, 2007, December 31, 2008, December 31, 2009, and December 31, 2010;

               (xix) a duly completed and executed Compliance Certificate of the Borrower, including pro
forma calculations of the financial covenants set forth in Article 6 hereof as of December
31, 2010;

               (xx) a copy of, or a certificate as to coverage under, the insurance policies required by the
applicable provisions of the Security Documents, each of which shall be endorsed or otherwise
amended to include a customary lender’s loss payable endorsement and to name the Administrative
Agent as additional insured, in form and substance satisfactory to the Administrative Agent;

               (xxi) Reserved; and

               (xxii) such other documents, certificates or information as the Administrative Agent or the
Required Lenders may reasonably request, all in form and substance reasonably satisfactory to the
Administrative Agent or the Required Lenders.

          (c) The Administrative Agent shall have received (i) to the extent required by the Pledge
Agreement, the certificates representing the shares of Capital Stock pledged pursuant to the Pledge
Agreement, together with an undated stock power for each such certificate executed in blank by a
duly authorized officer of the Borrower or the applicable Subsidiary Loan Party, as pledgor; (ii)
to the extent required by the Security Agreement, the certificates representing the shares of
Capital Stock pledged pursuant to the Security Agreement, together with an undated stock power for
each such certificate executed in blank by a duly authorized officer of the pledgor thereof and
(iii) to the extent required by the Security Agreement or the Pledge Agreement, each promissory
note pledged to the Administrative Agent pursuant to the Pledge Agreement and the Security
Agreement endorsed (without recourse) in blank (or accompanied by an executed transfer form in
blank satisfactory to the Administrative Agent) by the pledgor thereof.

          (d) Each document (including, without limitation, any Uniform Commercial Code financing
statement) required by the Security Documents or under law or reasonably requested by the
Administrative Agent to be filed, registered or recorded in order to create in favor of the
Administrative Agent, for the benefit of the Lenders, a perfected Lien on the

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Collateral described
therein, prior and superior in right to any other Person (other than with
respect to Liens permitted by Section 7.2), shall be in proper form for filing,
registration or recordation.

     Section 3.2. Each Credit Event. The obligation of each Lender to make a Loan on the
occasion of any Borrowing and of the Issuing Bank to issue, amend, renew or extend any Letter of
Credit is subject to the satisfaction of the following conditions:

          (a) at the time of and immediately after giving effect to such Borrowing or the issuance,
amendment, renewal or extension of such Letter of Credit, as applicable, no Default or Event of
Default shall exist;

          (b) at the time of and immediately after giving effect to such Borrowing or the issuance,
amendment, renewal or extension of such Letter of Credit, as applicable, all representations and
warranties of each Loan Party set forth in the Loan Documents shall be true and correct in all
material respects (or, if qualified by materiality, in all respects) on and as of the date of such
Borrowing or the date of issuance, amendment, extension or renewal of such Letter of Credit (except
to the extent stated to relate to a specific earlier date, in which case such representations and
warranties shall be true and correct in all material respects as of such earlier date), in each
case before and after giving effect thereto;

          (c) Reserved;

          (d) the Borrower shall have delivered the required Notice of Borrowing, or, in the case of any
Letter of Credit, any other notice required pursuant to Section 2.23;

          (e) Reserved; and

          (f) to the extent any Lender is a Defaulting Lender or a Potential Defaulting Lender, at the
time of such Loan or issuance of such Letter of Credit, the cost or loss to the Issuing Bank or the
Swingline Lender, as the case may be, that would result therefrom is fully covered or eliminated by
(i) with respect to such Letter of Credit, (x) the LC Exposure of such Defaulting Lender or
Potential Defaulting Lender being reallocated among all other Lenders that are Non-Defaulting
Lenders in proportion with their Pro Rata Share, but only to the extent that, after giving effect
to such reallocation, the Revolving Credit Exposure of each Non-Defaulting Lender does not exceed
such Non-Defaulting Lender’s Pro Rata Share of the Aggregate Revolving Commitment Amount; and (y)
to the extent that such LC Exposure of such Defaulting Lender or Potential Defaulting Lender
exceeds the amount that is permitted to be reallocated pursuant to the immediately preceding clause
(x), the Borrower having provided cash collateral to the Administrative Agent to hold on behalf of
the Borrower, on terms and conditions reasonably satisfactory to the Issuing Bank and the
Administrative Agent, in an amount equal to such excess, (ii) with respect to any Swingline Loan,
the Borrower having provided cash collateral to the Administrative Agent to hold on behalf of the
Borrower, on terms and conditions reasonably satisfactory to the Swingline Lender and the
Administrative Agent, in an amount equal to the Swingline Exposure of such Defaulting Lender or
Potential Defaulting Lender, or (iii) the Borrower making other arrangements reasonably
satisfactory to the Administrative Agent and the Issuing Bank or the Swingline Lender, as
applicable, in their reasonable discretion

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to protect them against the risk of non-payment by such
Defaulting Lender or Potential
Defaulting Lender; provided that none of the foregoing will constitute a waiver or release of
any claim the Borrower, the Administrative Agent, the Issuing Bank, the Swingline Lender or any
other Lender may have against such Defaulting Lender, or cause such Defaulting Lender or Potential
Defaulting Lender to be a Non-Defaulting Lender.

     Each Borrowing and each issuance, amendment, extension or renewal of any Letter of Credit
shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as
to the matters specified in paragraphs (a) and (b) of this Section 3.2.

     Section 3.3. Delivery of Documents. All of the Loan Documents, certificates, legal
opinions and other documents and papers referred to in this Article 3, unless otherwise
specified, shall be delivered to the Administrative Agent for the account of each of the Lenders.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants to the Administrative Agent and each Lender as follows:

     Section 4.1. Existence; Power. Each of the Loan Parties (i) is duly organized,
validly existing and in good standing as a corporation, partnership or limited liability company
under the laws of the jurisdiction of its organization, (ii) has all requisite power and authority
to carry on its business as now conducted, and (iii) is duly qualified to do business, and is in
good standing, in each jurisdiction where such qualification is required, except in a case where a
failure to be so qualified could not reasonably be expected to result in a Material Adverse Effect.

     Section 4.2. Organizational Power; Authorization. The execution, delivery and
performance by each Loan Party of the Loan Documents to which it is a party are within such Loan
Party’s organizational powers and have been duly authorized by all necessary organizational, and if
required, shareholder, partner or member, action. This Agreement has been duly executed and
delivered by the Borrower, and constitutes, and each other Loan Document to which any Loan Party is
a party, when executed and delivered by such Loan Party, will be duly executed and delivered by
such Loan Party, and will constitute, valid and binding obligations of the Borrower or such Loan
Party (as the case may be), enforceable against it in accordance with their respective terms,
except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or
similar laws affecting the enforcement of creditors’ rights generally and by general principles of
equity.

     Section 4.3. Governmental Approvals; No Conflicts. The execution, delivery and
performance by the Borrower of this Agreement, and by each Loan Party of the other Loan Documents
to which it is a party (a) do not require any consent or approval of, registration or filing with,
or any action by, any Governmental Authority, except those as have been obtained or made and are in
full force and effect, (b) will not violate any Requirements of Law applicable to the Borrower or
any of its Subsidiaries or any judgment, order or ruling of any Governmental Authority, (c) will
not violate or result in a default under any indenture, material agreement or

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other material
instrument binding on the Borrower or any of its Subsidiaries or any of its assets
or give rise to a right thereunder to require any payment to be made by the Borrower or any of
its Subsidiaries and (d) will not result in the creation or imposition of any Lien (other than
Liens permitted by Section 7.2) on any asset of the Borrower or any of its Subsidiaries.

     Section 4.4. Financial Statements. The Borrower has furnished to each Lender (i) the
audited consolidated balance sheet of the Borrower and its Subsidiaries as of December 31, 2010,
and the related consolidated statements of income, shareholders’ equity and cash flows for the
Fiscal Year then ended with a written report thereon prepared by PriceWaterhouse Coopers and (ii)
the unaudited consolidated balance sheet of the Borrower and its Subsidiaries as of December 31,
2010, and the related unaudited consolidated statements of income and cash flows for the Fiscal
Quarter and year-to-date period then ending, certified by a Responsible Officer. Such financial
statements fairly present in all material respects the consolidated financial condition of the
Borrower and its Subsidiaries as of such dates and the consolidated results of operations for such
periods in conformity with GAAP consistently applied, subject to year end audit adjustments and the
absence of footnotes in the case of the statements referred to in clause (ii). Since December 31,
2010, there has been no event, circumstance or condition which has had or would reasonably be
expected to have, singly or in the aggregate, a Material Adverse Effect.

     Section 4.5. Litigation and Environmental Matters.

          (a) No litigation, investigation or proceeding of or before any arbitrators or Governmental
Authorities is pending against or, to the knowledge of any Responsible Officer of the Borrower or
any other officer of the Borrower having primary responsibility therefor, threatened against or
affecting the Borrower or any of its Subsidiaries (i) as to which there is a reasonable possibility
of an adverse determination that could reasonably be expected to have, either individually or in
the aggregate, a Material Adverse Effect or (ii) which in any manner draws into question the
validity or enforceability of this Agreement or any other Loan Document.

          (b) Except for the matters set forth on Schedule 4.5 or as could not reasonably be
expected to result in a Material Adverse Effect, neither the Borrower nor any of its Subsidiaries
(i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any
permit, license or other approval required under any Environmental Law, (ii) has become subject to
any Environmental Liability, (iii) has received notice of any claim with respect to any
Environmental Liability or (iv) knows of any basis for any Environmental Liability.

     Section 4.6. Compliance with Laws and Agreements. The Borrower and each Subsidiary is
in compliance with (a) all Requirements of Law and all judgments, decrees and orders of any
Governmental Authority and (b) all indentures, agreements or other instruments binding upon it or
its properties, except where non-compliance, either singly or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

     Section 4.7. Investment Company Act, Etc. Neither the Borrower nor any of its
Subsidiaries is an “investment company” or is “controlled” by an “investment company”, as such

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terms are defined in, or is required to register under, the Investment Company Act of 1940, as
amended.

     Section 4.8. Taxes. The Borrower and its Subsidiaries have timely filed or caused to
be filed all Federal income tax returns and all other material tax returns that are required to be
filed by them, and have paid all Federal and other material taxes shown to be due and payable on
such returns or on any assessments made against it or its property and all other material taxes,
fees or other charges imposed on it or any of its property by any Governmental Authority, except
where the same are currently being contested in good faith by appropriate proceedings and for which
the Borrower or such Subsidiary, as the case may be, has set aside on its books adequate reserves
in accordance with GAAP. The charges, accruals and reserves on the books of the Borrower and its
Subsidiaries in respect of such taxes are adequate, and no tax liabilities that could be materially
in excess of the amount so provided are anticipated.

     Section 4.9. Margin Regulations. None of the proceeds of any of the Loans or Letters
of Credit will be used, directly or indirectly, for “purchasing” or “carrying” any “margin stock”
with the respective meanings of each of such terms under Regulation U of the Board of Governors of
the Federal Reserve System as now and from time to time hereafter in effect or for any purpose that
violates the provisions of the Regulation U. Neither the Borrower nor its Subsidiaries is engaged
principally, or as one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying “margin stock.”

     Section 4.10. ERISA. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events for which liability is reasonably
expected to occur, could reasonably be expected to result in a Material Adverse Effect. The
present value of all accumulated benefit obligations under each Plan (based on the assumptions used
for purposes of Statement of Financial Standards No. 87) did not, as of the date of the most recent
financial statements reflecting such amounts, exceed the fair market value of the assets of such
Plan, and the present value of all accumulated benefit obligations of all underfunded Plans (based
on the assumptions used for purposes of Statement of Financial Standards No. 87) did not, as of the
date of the most recent financial statements reflecting such amounts, exceed the fair market value
of the assets of all such underfunded Plans.

     Section 4.11. Ownership of Property.

          (a) Each of the Borrower and its Subsidiaries has good title to, or valid leasehold interests
in, all of its real and personal property material to the operation of its business, including all
such properties reflected in the most recent audited consolidated balance sheet of the Borrower
referred to in Section 4.4 or purported to have been acquired by the Borrower or any
Subsidiary after said date (except as sold or otherwise disposed of in the ordinary course of
business), in each case free and clear of Liens other than Liens permitted by this Agreement.
Except as could not reasonably be expected to result in a Material Adverse Effect, all leases that
individually or in the aggregate are material to the business or operations of the Borrower and its
Subsidiaries are valid and subsisting and are in full force.

          (b) Each of the Borrower and its Subsidiaries owns, or is licensed, or otherwise has the
right, to use, all patents, trademarks, service marks, trade names, copyrights

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and other intellectual property material to its business, and the use thereof by the Borrower
and its Subsidiaries does not infringe in any material respect on the rights of any other Person.

          (c) The properties of the Borrower and its Subsidiaries are insured with financially sound and
reputable insurance companies which are not Affiliates of the Borrower, in such amounts with such
deductibles and covering such risks as are customarily carried by companies engaged in similar
businesses and owning similar properties in localities where the Borrower or any applicable
Subsidiary operates.

     Section 4.12. Disclosure. None of the reports (including, without limitation, all
reports that the Borrower is required to file with the Securities and Exchange Commission),
financial statements, certificates or other information furnished by or on behalf of the Borrower
to the Administrative Agent or any Lender in connection with the negotiation or syndication of this
Agreement or any other Loan Document or delivered hereunder or thereunder (as modified or
supplemented by any other information so furnished, including, without limitation, all reports that
the Borrower is required to file with the Securities and Exchange Commission) contains any material
misstatement of fact or omits to state any material fact necessary to make the statements herein or
in any of the reports, financial statements, certificates or other information furnished by or on
behalf of the Borrower, taken as a whole, in light of the circumstances under which they were made,
not materially misleading; provided, that with respect to projected financial information, the
Borrower represents only that such information was prepared in good faith based upon assumptions
that management of the Borrower believed to be reasonable at the time such projected financial
information was prepared (it being recognized by the Administrative Agent and each Lender that
projections as to future events are not to be viewed as facts or guaranties of future performance,
that actual results during the period or periods covered by such projections may differ from the
projected results and that such differences may be material and that the Borrower makes no
representation that such projections will be in fact realized).

     Section 4.13. Labor Relations. There are no strikes, lockouts or other material labor
disputes or grievances against the Borrower or any of its Subsidiaries, or, to the knowledge of any
Responsible Officer of the Borrower or any other officer of the Borrower having primary
responsibility therefor, threatened against or affecting the Borrower or any of its Subsidiaries,
and no significant unfair labor practice, charges or grievances are pending against the Borrower or
any of its Subsidiaries, or to the knowledge of any Responsible Officer of the Borrower or any
other officer of the Borrower having primary responsibility therefor, threatened against any of
them before any Governmental Authority. All payments due from the Borrower or any of its
Subsidiaries pursuant to the provisions of any collective bargaining agreement have been paid or
accrued as a liability on the books of the Borrower or any such Subsidiary, except where the
failure to do so could not reasonably be expected to have a Material Adverse Effect.

     Section 4.14. Subsidiaries. Schedule 4.14 sets forth the name of, the
ownership interest of the Borrower or any Subsidiary in, the jurisdiction of incorporation or
organization of, and the type of, each Subsidiary and identifies each Subsidiary that is a
Subsidiary Loan Party, in each case as of the Closing Date.

     Section 4.15. Insolvency. After giving effect to the execution and delivery of the
Loan Documents and the making of the Loans under this Agreement, the Borrower and the Loan

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Parties, taken as a whole on a consolidated basis, (a) will not be “insolvent,” within the
meaning of such term as defined in § 101 of Title 11 of the United States Code, as amended from
time to time, (b) will not be unable to pay its debts generally as such debts become due, or (c)
will not have an unreasonably small capital to engage in any business or transaction, whether
current or contemplated.

     Section 4.16. Reserved.

     Section 4.17. OFAC. No Loan Party (i) is a person whose property or interest in
property is blocked or subject to blocking pursuant to Section 1 of Executive Order 13224 of
September 23, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten
to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) engages in any dealings or
transactions prohibited by Section 2 of such executive order, or is otherwise associated with any
such person in any manner violative of Section 2, or (iii) is a person on the list of Specially
Designated Nationals and Blocked Persons or subject to the limitations or prohibitions under any
other U.S. Department of Treasury’s Office of Foreign Assets Control regulation or executive order.

     Section 4.18. Patriot Act. Each Loan Party is in compliance, in all material
respects, with (i) the Trading with the Enemy Act, as amended, and each of the foreign assets
control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as
amended) and any other enabling legislation or executive order relating thereto, and (ii) the
Uniting And Strengthening America By Providing Appropriate Tools Required To Intercept And Obstruct
Terrorism (USA Patriot Act of 2001). No part of the proceeds of the Loans will be used, directly
or indirectly, for any payments to any governmental official or employee, political party, official
of a political party, candidate for political office, or anyone else acting in an official
capacity, in order to obtain, retain or direct business or obtain any improper advantage, in
violation of the United States Foreign Corrupt Practices Act of 1977, as amended.

     Section 4.19. Security Documents.

          (a) (i) The Security Agreement, upon execution and delivery thereof by the parties thereto,
will create in favor of the Administrative Agent, for the ratable benefit of the Lenders, a legal,
valid and enforceable security interest in the Collateral (as defined in the Security Agreement)
and the proceeds thereof, in which a security interest may be perfected under the Uniform
Commercial Code as in effect at the relevant time by filing of financing statements, and (ii) the
Lien created under the Security Agreement is (or will be, upon the filing of appropriate financing
statements and grants of security in intellectual property and the execution of appropriate control
agreements) a fully perfected first-priority Lien on, and security interest in, all right, title
and interest of the Loan Parties in such Collateral), in each case prior and superior in right to
any other Person, other than with respect to Liens permitted by Section 7.2, in the case of
each of clauses (i) and (ii) above, to the extent required by the Security Agreement.

          (b) Intentionally Deleted.

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          (c) Schedule 4.19 lists completely and correctly as of the Closing Date all real
property owned and leased by the Borrower and the Subsidiaries and the addresses thereof. As of
the Closing Date, the Borrower and the Subsidiaries have valid leases in all the leased real
property set forth on Schedule 4.19 and good and marketable title in all the owned real
property set forth on Schedule 4.19.

          (d) (i) The Pledge Agreement, upon execution and delivery thereof by the parties thereto, will
create in favor of the Administrative Agent, for the ratable benefit of the Lenders, a legal, valid
and enforceable security interest in the Pledged Collateral (as defined in the Pledge Agreement)
and the proceeds thereof, in which a security interest may be perfected under the Uniform
Commercial Code as in effect at the relevant time by filing of financing statements or obtaining
control or possession, and (ii) the Lien created under the Pledge Agreement is (or will be, upon
the filing of appropriate financing statements, the execution of appropriate control agreements and
delivery of certificated securities and instruments to the Administrative Agent) a fully perfected
first-priority Lien on, and security interest in, all right, title and interest of the Parent in
such Pledged Collateral, in each case prior and superior in right to any other Person, other than
with respect to Liens permitted by Section 7.2, in the case of each of clauses (i) and (ii)
above, to the extent required by Pledge Agreement.

ARTICLE 5

AFFIRMATIVE COVENANTS

     The Borrower covenants and agrees that so long as any Lender has a Commitment hereunder or any
Obligation remains unpaid or outstanding (other than indemnities and other similar contingent
obligations surviving the termination of this Agreement for which no claim has been made and which
are unknown and not calculable at the time of termination):

     Section 5.1. Financial Statements and Other Information. The Borrower will deliver to
the Administrative Agent (which the Administrative Agent shall forward to each Lender):

          (a) as soon as available and in any event, in the case of the consolidated statements required
hereunder only, within 120 days after the end of each Fiscal Year of Borrower, a copy of the annual
audited report for such Fiscal Year for the Borrower and its Subsidiaries, containing a
consolidated and, when available and to the extent prepared for SUI, consolidating balance sheet of
the Borrower and its Subsidiaries as of the end of such Fiscal Year and the related consolidated
and, when available and to the extent prepared for SUI, consolidating statements of income,
stockholders’ equity and cash flows (together with, in the case of consolidated financial
statements, all footnotes thereto) of the Borrower and its Subsidiaries for such Fiscal Year,
setting forth in each case in comparative form the figures for the previous Fiscal Year, all in
reasonable detail and, in the case of the consolidated financial statements only, reported on by
PriceWaterhouse Coopers or other independent public accountants of nationally recognized standing
(without a “going concern” or like qualification, exception or explanation and without any
qualification or exception as to scope of such audit) to the effect that such financial statements
present fairly in all material respects the financial condition and the results of operations of
the Borrower and its Subsidiaries for such Fiscal Year

64

 

on a consolidated basis in accordance with GAAP and that the examination by such accountants
in connection with such consolidated financial statements has been made in accordance with
generally accepted auditing standards;

          (b) as soon as available and in any event within 45 days after the end of each Fiscal Quarter
of the Borrower, an unaudited consolidated balance sheet of the Borrower and its Subsidiaries as of
the end of such Fiscal Quarter and the related unaudited consolidated statement of income and
consolidated statement of cash flows of the Borrower and its Subsidiaries for such Fiscal Quarter
and the then elapsed portion of such Fiscal Year, setting forth in each case in comparative form
the figures for the corresponding quarter and the corresponding portion of Borrower’s previous
Fiscal Year (it being understood that quarterly financial statements are not required to have
footnote disclosures and are subject to normal year-end adjustments);

          (c) intentionally deleted;

          (d) concurrently with the delivery of the financial statements referred to in clauses (a) and
(b) above, a Compliance Certificate signed by the principal executive officer and the principal
financial officer of the Borrower;

          (e) within 60 days after the end of each Fiscal Year, a budget and projection of the Borrower
and its Subsidiaries for the next succeeding Fiscal Year;

          (f) promptly after the same become publicly available, notice of all periodic and other
reports, proxy statements and other materials filed with the Securities and Exchange Commission, or
any Governmental Authority succeeding to any or all functions of said Commission, or with any
national securities exchange, or distributed by the Borrower to its shareholders generally, as the
case may be;

          (g) promptly upon such change, written notice of any change (i) in any Loan Party’s corporate
name, (ii) in the jurisdiction of organization or formation of any Loan Party, (iii) in any Loan
Party’s identity or form of organization or (iv) in any Loan Party’s Federal Taxpayer
Identification Number. The Borrower agrees not to effect or permit any change referred to in the
preceding sentence unless all filings have been made under the Uniform Commercial Code or otherwise
that are required in order for the Administrative Agent to continue at all times following such
change to have a valid, legal and perfected security interest in all the Collateral. The Borrower
also agrees promptly to notify the Administrative Agent if any material portion of the Collateral
is damaged or destroyed; and

          (h) promptly following any request therefor by the Administrative Agent, such other
information regarding the results of operations, business affairs and financial condition of the
Borrower or any Subsidiary as the Administrative Agent or any Lender may reasonably request.

Notwithstanding any other provision of this Agreement, Lenders and Administrative Agent acknowledge
and agree that nothing in this Agreement or the other Loan Documents shall require the Borrower and
it Subsidiaries to disclose education records and information from such records in a manner
inconsistent with the requirements of the Family Educational Rights and

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Privacy Act, 20 U.S.C. 1232g (or any successor statute); its implementing regulations, 34 C.F.R.
pt. 99 (or any successor regulation); applicable accreditation standards, policies, and procedures;
and applicable state laws and regulations.

     Section 5.2. Notices of Material Events.

          (a) The Borrower will furnish to the Administrative Agent prompt written notice of the
following (which the Administrative Agent shall forward to each Lender):

               (i) the occurrence of any Default or Event of Default;

               (ii) the filing or commencement of any action, suit or proceeding by or before any arbitrator
or Governmental Authority against or, to the knowledge of any Responsible Officer of the Borrower
or any other officer of the Borrower having primary responsibility therefor, affecting the Borrower
or any Subsidiary which could reasonably be expected to result in a Material Adverse Effect;

               (iii) the occurrence of any event or any other development by which the Borrower or any of its
Subsidiaries (i) fails to comply with any Environmental Law or to obtain, maintain or comply with
any permit, license or other approval required under any Environmental Law, (ii) becomes subject to
any Environmental Liability, (iii) receives notice of any claim with respect to any Environmental
Liability, or (iv) becomes aware of any basis for any Environmental Liability and in each of the
preceding clauses, which individually or in the aggregate, could reasonably be expected to result
in a Material Adverse Effect;

               (iv) the occurrence of any ERISA Event that alone, or together with any other ERISA Events
that have occurred, could reasonably be expected to result in liability of the Borrower and its
Subsidiaries in an aggregate amount exceeding $500,000;

               (v) the occurrence of any default or event of default, or the receipt by Borrower or any of
its Subsidiaries of any written notice of an alleged default or event of default, respect of any
Material Indebtedness of the Borrower or any of its Subsidiaries; and

               (vi) any other development that results in a Material Adverse Effect.

          (b) Each notice delivered under this Section 5.2 shall be accompanied by a written
statement of a Responsible Officer setting forth the details of the event or development requiring
such notice and any action taken or proposed to be taken with respect thereto.

     Section 5.3. Existence; Conduct of Business. The Borrower will, and will cause each
other Loan Party to, do or cause to be done all things necessary to preserve, renew and maintain in
full force and effect (a) its legal existence and (b) its respective rights, licenses, permits,
privileges, franchises, patents, copyrights, trademarks and trade names, the loss of which could
reasonably be expected to result in a Material Adverse Effect, and will continue to engage in the
same business as presently conducted or such other businesses that are reasonably related thereto;
provided, that nothing in this Section 5.3 shall prohibit any merger,
consolidation, liquidation, dissolution or disposition permitted under Section 7.3 or
Section 7.6.

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     Section 5.4. Compliance with Laws, Etc; Maintenance of Licenses and Accreditations.
The Borrower will, and will cause each of its Subsidiaries to, comply with all laws, rules,
regulations and requirements of any Governmental Authority applicable to its business and
properties, including without limitation, all Environmental Laws, ERISA, OSHA and rules,
regulations and requirements of the U.S. Department of Education (including any regulatory test of
financial responsibility), except where the failure to do so, either individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect. The Borrower
will, and will cause each of its Subsidiaries to, maintain all licenses and accreditations required
for the operation of its business and properties, the loss of which could not reasonably be
expected to result in a Material Adverse Effect.

     Section 5.5. Payment of Obligations. The Borrower will, and will cause each of its
Subsidiaries to, pay and discharge at or before maturity, all of Federal and other material tax
liabilities, assessments and governmental charges (including without limitation all tax liabilities
and claims that could result in a statutory Lien) before the same shall become delinquent or in
default, except where (a) the validity or amount thereof is being contested in good faith by
appropriate proceedings, (b) the Borrower or such Subsidiary has set aside on its books adequate
reserves with respect thereto in accordance with GAAP and (c) the failure to make payment pending
such contest could not reasonably be expected to result in a Material Adverse Effect.

     Section 5.6. Books and Records. The Borrower will, and will cause each of its
Subsidiaries to, keep proper books of record and account in which full, true and correct entries
shall be made of all dealings and transactions in relation to its business and activities to the
extent necessary to prepare the consolidated financial statements of Borrower in conformity with
GAAP.

     Section 5.7. Visitation, Inspection, Etc. The Borrower will, and will cause each of
its Subsidiaries to, permit any representative of the Administrative Agent or any Lender, to visit
and inspect its properties, to examine its books and records and to make copies and take extracts
therefrom, to discuss its affairs, finances and accounts with any of its officers and with its
independent certified public accountants, all at such reasonable times and as often as the
Administrative Agent or any Lender may reasonably request after reasonable prior notice to the
Borrower; provided, however, if an Event of Default has occurred and is continuing,
no prior notice shall be required. All such inspections and examinations by the Administrative
Agent or any Lender shall be at the Borrower’s expense; provided, that so long as no Event
of Default exists, the Borrower shall only be required to reimburse for one such inspection or
examination each Fiscal Year.

     Section 5.8. Maintenance of Properties; Insurance. The Borrower will, and will cause
each of its Subsidiaries to, (a) keep and maintain all property material to the conduct of its
business in good working order and condition, ordinary wear and tear and casualty events excepted,
(b) maintain with financially sound and reputable insurance companies, insurance with respect to
its properties and business, and the properties and business of its Subsidiaries, against loss or
damage of the kinds customarily insured against by companies in the same or similar businesses
operating in the same or similar locations and (c) at all times shall name Administrative Agent as
additional insured or loss payee on all property and liability policies of the Borrower and its
Subsidiaries (which policies shall be endorsed or otherwise amended to

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include a customary lender’s loss payable endorsement and to name the Administrative Agent as
additional insured or loss payee, in form and substance reasonably satisfactory to the
Administrative Agent). At the request of the Administrative Agent, the Borrower will deliver to
the Administrative Agent certificates or other evidence of the insurance policies required hereby
in form and substance reasonably satisfactory to the Administrative Agent.

     Section 5.9. Use of Proceeds and Letters of Credit. The Borrower will use the
proceeds of all Loans to refinance the Indebtedness of the Borrower under the Existing Credit
Agreement and pay transactional expenses related thereto, finance the repurchase of shares of the
Capital Stock of the Borrower, finance working capital needs and Permitted Acquisitions and pay
transactional expenses related thereto and for other general corporate purposes of the Borrower and
its Subsidiaries. No part of the proceeds of any Loan will be used, whether directly or
indirectly, for any purpose that would violate any rule or regulation of the Board of Governors of
the Federal Reserve System, including Regulations T, U or X. Specifically, no part of the proceeds
of any Loan will be used to purchase or carry “margin stock” or to extend credit to others for the
purpose of purchasing or carrying “margin stock.” All Letters of Credit will be used for general
corporate purposes.

     Section 5.10. Intentionally Deleted.

     Section 5.11. Additional Subsidiaries. If any Domestic Subsidiary is acquired or
formed after the Closing Date, the Borrower will promptly notify the Administrative Agent thereof
and, within ten (10) Business Days after any such Domestic Subsidiary is acquired or formed, will
cause such Domestic Subsidiary to become a Subsidiary Loan Party. A Domestic Subsidiary shall
become an additional Subsidiary Loan Party by executing and delivering to the Administrative Agent
a Subsidiary Guaranty Supplement, a Security Agreement and such other Security Documents as are
required by Section 5.12, accompanied by (i) all other Loan Documents related thereto, (ii)
certified copies of certificates or articles of incorporation or organization, by-laws, membership
operating agreements, and other organizational documents, appropriate authorizing resolutions of
the board of directors of such Subsidiaries, and, to the extent requested by the Administrative
Agent, opinions of counsel comparable to those delivered pursuant to Section 3.1, and (iii)
such other documents as the Administrative Agent may reasonably request. No Subsidiary that
becomes a Subsidiary Loan Party shall thereafter cease to be a Subsidiary Loan Party or be entitled
to be released or discharged from its obligation under the Subsidiary Guaranty Agreement or its
respective Security Agreement or other Security Documents, except as otherwise provided in this
Agreement. No Loan Party shall form or acquire a Foreign Subsidiary after the date hereof without
the prior written consent of the Required Lenders. PEI shall not be required to become a
Subsidiary Loan Party so long as no further Investments are made therein by the Borrower or any
Subsidiary.

     Section 5.12. Further Assurances. The Borrower will, and will cause each of its
Subsidiaries to, execute any and all further documents, financing statements, agreements and
instruments, and take all further action (including filing Uniform Commercial Code and other
financing statements, mortgages and deeds of trust) that may be required under applicable law, or
that the Required Lenders or the Administrative Agent may reasonably request, in each case, subject
to the agreements set forth in this Agreement, the Security Agreement or the Pledge Agreement, in
order to effectuate the transactions contemplated by the Loan Documents and in

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order to grant, preserve, protect and perfect the validity and first priority of the security
interests created or intended to be created by the Security Documents (subject to any Liens
permitted by Section 7.2). In addition, from time to time, subject to the agreements set
forth in this Agreement, the Security Agreement and the Pledge Agreement, the Borrower will, at its
cost and expense, promptly secure the Obligations by pledging or creating, or causing to be pledged
or created, perfected security interests in all real and personal property of the Loan Parties
other than (x) owned real property (i) listed on Schedule 4.19 or (ii) otherwise having a
fair market value of less than $2,000,000 at the time of acquisition, (y) leased real property and
(z) Excluded Collateral. Such security interests and Liens will be created under the Security
Documents and other security agreements, mortgages, deeds of trust and other instruments and
documents in form and substance reasonably satisfactory to the Administrative Agent, and the
Borrower shall deliver or cause to be delivered to the Administrative Agent all such additional
instruments and documents (including legal opinions, title insurance policies and lien searches) as
the Administrative Agent shall reasonably request to evidence compliance with this Section
5.12. The Borrower agrees to provide such evidence as the Administrative Agent shall
reasonably request as to the perfection and priority status of each such security interest and
Lien. In furtherance of the foregoing, the Borrower will give prompt notice to the Administrative
Agent of the acquisition by the Borrower or any of the Subsidiary Loan Parties of any owned real
property after the Closing Date having a fair market value in excess of $2,000,000 at the time of
acquisition.

ARTICLE 6

FINANCIAL COVENANTS

     The Borrower covenants and agrees that so long as any Lender has a Commitment hereunder or any
Obligation remains unpaid or outstanding (other than indemnities and other similar contingent
obligations surviving the termination of this Agreement for which no claim has been made and which
are unknown and not calculable at the time of termination):

     Section 6.1. Minimum EBITDA. The Borrower will maintain, as of the last day of each
Fiscal Quarter, commencing with the Fiscal Quarter ending June 30, 2011, Consolidated EBITDA for
the period of two consecutive Fiscal Quarters then ended of not less than $60,000,000.

     Section 6.2. Interest Coverage Ratio. The Borrower will maintain, as of the end of
each Fiscal Quarter, commencing with the Fiscal Quarter ending June 30, 2011, an Interest Coverage
Ratio of not less than 3.00 to 1.

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     Section 6.3. Unrestricted Liquidity. The Borrower will maintain, at all times,
Unrestricted Liquidity of not less than $50,000,000.

     Section 6.4. Minimum Consolidated Tangible Net Worth. The Borrower will maintain, as
of the end of each Fiscal Quarter, commencing with the Fiscal Quarter ending December 31, 2011,
Consolidated Tangible Net Worth of not less than $0.

ARTICLE 7

NEGATIVE COVENANTS

     The Borrower covenants and agrees that so long as any Lender has a Commitment hereunder or any
Obligation remains outstanding (other than indemnities and other similar contingent obligations
surviving the termination of this Agreement for which no claim has been made and which are unknown
and not calculable at the time of termination):

     Section 7.1. Indebtedness and Preferred Stock. The Borrower will not, and will not
permit any of its Subsidiaries to, create, incur, assume or suffer to exist any Indebtedness,
except:

          (a) Indebtedness created pursuant to the Loan Documents;

          (b) Indebtedness of the Borrower and its Subsidiaries existing on the date hereof and set
forth on Schedule 7.1 and extensions, renewals and replacements of any such Indebtedness
that do not increase the outstanding principal amount thereof (immediately prior to giving effect
to such extension, renewal or replacement) or shorten the maturity or the weighted average life
thereof;

          (c) Indebtedness of the Borrower or any Subsidiary incurred to finance the acquisition,
construction or improvement of any fixed or capital assets, including Capital Lease Obligations,
and any Indebtedness assumed in connection with the acquisition of any such assets or secured by a
Lien on any such assets prior to the acquisition thereof; provided, that such Indebtedness is
incurred prior to or within 180 days after such acquisition or the completion of such construction
or improvements or extensions, renewals, and replacements of any such Indebtedness that do not
increase the outstanding principal amount thereof (immediately prior to giving effect to such
extension, renewal or replacement) or shorten the maturity or the weighted average life thereof;
provided further, that the aggregate principal amount of such Indebtedness does not exceed
$10,000,000 at any time outstanding;

          (d) Indebtedness of the Borrower owing to any Subsidiary Loan Party and of any Subsidiary
owing to the Borrower or any other Subsidiary Loan Party;

          (e) Guarantees (i) by the Borrower or any Subsidiary Loan Party of Indebtedness of any other
Loan Party and by any Subsidiary of Indebtedness of the Borrower or any Subsidiary Loan Party and
(ii) by any Loan Party of Indebtedness of any Subsidiary that is not a Loan Party to the extent
constituting an Investment permitted pursuant to Section 7.4;

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          (f) Indebtedness of any Person which becomes a Subsidiary after the date of this Agreement;
provided, that such Indebtedness exists at the time that such Person becomes a Subsidiary
and is not created in contemplation of or in connection with such Person becoming a Subsidiary and
the aggregate principal amount of such Indebtedness permitted under this Section 7.1(f)
shall not exceed $5,000,000 outstanding at any time;

          (g) Indebtedness in respect of Hedging Obligations permitted by Section 7.10; and

          (h) other unsecured Indebtedness of the Borrower or its Subsidiaries in an aggregate principal
amount not to exceed $5,000,000 at any time outstanding.

          The Borrower will not, and will not permit any Subsidiary to, issue any preferred stock or
other preferred equity interests that (i) matures or is mandatorily redeemable pursuant to a
sinking fund obligation or otherwise, (ii) is or may become redeemable or repurchaseable by the
Borrower or such Subsidiary at the option of the holder thereof, in whole or in part or (iii) is
convertible or exchangeable at the option of the holder thereof for Indebtedness or preferred stock
or any other preferred equity interests described in this paragraph, on or prior to, in the case of
clause (i), (ii) or (iii), the 91st day following the Revolving Commitment Termination
Date or the Maturity Date, whichever is later.

     Section 7.2. Negative Pledge. The Borrower will not, and will not permit any of its
Subsidiaries to, create, incur, assume or suffer to exist any Lien on any of its assets or property
now owned or hereafter acquired or, except:

          (a) Liens securing the Obligations, provided, however, that no Liens may
secure Hedging Obligations without securing all other Obligations on a basis at least pari passu
with such Hedging Obligations and subject to the priority of payments set forth in Section
2.22 or Section 8.2 of this Agreement;

          (b) Permitted Encumbrances;

          (c) any Liens on any property or asset of the Borrower or any Subsidiary existing on the
Closing Date set forth on Schedule 7.2; provided, that such Lien shall not apply to
any other property or asset of the Borrower or any Subsidiary;

          (d) purchase money Liens upon or in any fixed or capital assets to secure the purchase price
or the cost of construction or improvement of such fixed or capital assets or to secure
Indebtedness incurred solely for the purpose of financing the acquisition, construction or
improvement of such fixed or capital assets (including Liens securing any Capital Lease
Obligations); provided, that (i) such Lien secures Indebtedness permitted by Section
7.1(c), (ii) such Lien attaches to such asset concurrently or within 180 days after the
acquisition, improvement or completion of the construction thereof; (iii) such Lien does not extend
to any other asset; and (iv) the principal amount of the Indebtedness secured thereby does not
exceed the cost of acquiring, constructing or improving such fixed or capital assets;

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          (e) Liens securing Indebtedness permitted pursuant to Section 7.1(f);
provided, that such Lien does not extend to any assets other than the assets of the Person
which becomes a Subsidiary after the date of this Agreement; and

          (f) extensions, renewals, or replacements of any Lien referred to in paragraphs (a) through
(e) of this Section 7.2; provided, that the principal amount of the Indebtedness
secured thereby is not increased and that any such extension, renewal or replacement is limited to
the assets originally encumbered thereby.

     Section 7.3. Fundamental Changes. The Borrower will not, and will not permit any
Subsidiary to, merge into or consolidate into any other Person, or permit any other Person to merge
into or consolidate with it, or sell, lease, transfer or otherwise dispose of (in a single
transaction or a series of transactions) all or substantially all of its assets (in each case,
whether now owned or hereafter acquired) or all or substantially all of the stock of any of its
Subsidiaries (in each case, whether now owned or hereafter acquired) or liquidate or dissolve;
provided, that if at the time thereof and immediately after giving effect thereto, no
Default or Event of Default shall have occurred and be continuing (i) the Borrower or any
Subsidiary may merge with a Person if (x) the Borrower is the surviving Person or (y) if the
Borrower is not a party to such merger, such Subsidiary is the surviving Person or the surviving
Person shall become a Subsidiary Loan Party pursuant to Section 5.11, (ii) any Subsidiary
may merge into another Subsidiary; provided, that if any party to such merger is a
Subsidiary Loan Party, the Subsidiary Loan Party shall be the surviving Person or the surviving
Person shall become a Subsidiary Loan Party pursuant to Section 5.11, (iii) any Subsidiary
may sell, transfer, lease or otherwise dispose of all or substantially all of its assets to the
Borrower or to a Subsidiary Loan Party or in connection with a Disposition permitted pursuant to
Section 7.6 and (iv) PEI (subject to the provisions of Section 5.11 regarding
Investments) and any other Subsidiary (other than a Subsidiary Loan Party, subject to the following
proviso) may liquidate or dissolve if the Borrower determines in good faith that such liquidation
or dissolution is in the best interests of the Borrower and is not materially disadvantageous to
the Lenders; provided, that ELP may liquidate or dissolve if (x) the Borrower determines in good
faith that such liquidation or dissolution is in the best interests of the Borrower and is not
materially disadvantageous to the Lenders, (y) the Borrower determines in good faith that ELP is no
longer required or necessary for the conduct of the business of the Borrower and (z) either (I)
upon dissolution, the assets of ELP become those of a Loan Party or (II) prior to dissolution, the
assets of ELP are subject to a Disposition permitted by Section 7.6; and provided,
further, that any merger permitted pursuant to this Section 7.3 involving a Person
that is not a wholly-owned Subsidiary immediately prior to such merger shall not be permitted
unless also permitted by Section 7.4.

     Section 7.4. Investments, Loans, Etc. The Borrower will not, and will not permit any
of its Subsidiaries to, purchase, hold or acquire (including pursuant to any merger with any Person
that was not a wholly-owned Subsidiary prior to such merger), any Capital Stock, evidence of
indebtedness or other securities (including any option, warrant, or other right to acquire any of
the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of,
or make or permit to exist any investment or any other interest in, any other Person (all of the
foregoing being collectively called “Investments”), or purchase or otherwise acquire (in
one transaction or a series of transactions) any assets of any other Person that constitute a
business unit, or create or form any Subsidiary, except:

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          (a) Investments (other than Permitted Investments) existing on the date hereof and set forth
on Schedule 7.4 (including Investments in Subsidiaries); and provided that,
notwithstanding anything to the contrary contained in this Agreement, the Borrower shall not, and
shall not permit any Subsidiary Loan Party to, make any further Investments in PEI;

          (b) Permitted Investments;

          (c) Guarantees constituting Indebtedness permitted by Section 7.1;

          (d) Investments made by the Borrower in or to any Subsidiary Loan Party and by any Subsidiary
to the Borrower or in or to a Subsidiary Loan Party;

          (e) loans or advances to employees, officers or directors of the Borrower or any Subsidiary in
the ordinary course of business for travel, relocation and related expenses; provided,
however, that the aggregate amount of all such loans and advances does not exceed
$1,000,000 at any time;

          (f) repurchases of shares of Capital Stock and options to purchase shares of Capital Stock of
the Borrower, and provided, that for the purpose of this clause (f) at the time such
repurchase is made and after giving effect thereto (i) no Default or Event of Default has occurred
and is continuing nor would occur and (ii) the Borrower would be in compliance with the financial
covenants contained in Article 6 (other than that contained in Section 6.4 with
respect to Consolidated Tangible Net Worth) on a pro forma basis;

          (g) Permitted Acquisitions;

          (h) Hedging Transactions permitted by Section 7.10;

          (i) Investments consisting of extensions of credit in the nature of accounts receivable or
notes receivable arising from the grant of trade credit in the ordinary course of business, and
Investments received in satisfaction or partial satisfaction thereof from financially troubled
account debtors to the extent reasonably necessary in order to prevent or limit loss;

          (j) Investments consisting of receivables and notes received from students in the ordinary
course of business; and

          (k) Other Investments which in the aggregate do not exceed $5,000,000 in any Fiscal Year.

     Section 7.5. Restricted Payments. The Borrower will not, and will not permit its
Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any dividend on
any class of its Capital Stock, or make any payment on account of, or set apart assets for a
sinking or other analogous fund for, the purchase, redemption, retirement, defeasance or other
acquisition of, any shares of Capital Stock or Indebtedness subordinated to the Obligations of the
Borrower or any Guarantee thereof or any options, warrants, or other rights to purchase such
Capital Stock or such Indebtedness, whether now or hereafter outstanding (each, a “Restricted
Payment”), except for (i) dividends payable by the Borrower solely in shares of any class of
its common stock, (ii) Restricted Payments made by any Subsidiary to the Borrower or to another

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Subsidiary, on at least a pro rata basis with any other shareholders if such Subsidiary is not
wholly owned by the Borrower and other wholly owned Subsidiaries, (iii) repurchases of shares of
Capital Stock and options to purchase shares of Capital Stock permitted by Section 7.4(f);
and (iv) cash dividends and distributions paid on the Capital Stock of the Borrower;
provided, for the purpose of this clause (iv) that at the time such dividend or
distribution is paid and after giving effect thereto (x) no Default or Event of Default has
occurred and is continuing nor would occur and (y) the Borrower would be in compliance with the
financial covenants contained in Article 6 (other than that contained in Section
6.4 with respect to Consolidated Tangible Net Worth) on a pro forma basis.

     Section 7.6. Sale of Assets. The Borrower will not, and will not permit any of its
Subsidiaries to, convey, sell, lease, assign, transfer or otherwise dispose of, any of its assets,
business or property, whether now owned or hereafter acquired, or, in the case of any Subsidiary,
issue or sell any shares of such Subsidiary’s Capital Stock to any Person other than the Borrower
or a Subsidiary Loan Party (or to qualify directors if required by applicable law) (each, a
“Disposition”), except:

          (a) the sale or other disposition for fair market value of obsolete or worn out property or
other property not necessary for operations disposed of in the ordinary course of business;

          (b) the sale of inventory and Permitted Investments in the ordinary course of business;

          (c) Dispositions permitted by Sections 7.3, 7.4 and 7.5;

          (d) leases, subleases, licenses or sublicenses of real or personal property in the ordinary
course of business, in each case that do not materially interfere with the business of the Borrower
and its Subsidiaries taken as a whole;

          (e) Dispositions of Permitted Investments for fair market value or otherwise in connection
with transactions not otherwise prohibited by this Agreement;

          (f) so long as no Event of Default has occurred and is continuing or would occur after giving
effect thereto, the Disposition of delinquent notes or accounts receivable in the ordinary course
of business of purposes of collection only (and not for the purpose of any bulk sale, financing or
securitization transaction); and

          (g) any other Disposition in an aggregate amount not to exceed $10,000,000 in any Fiscal Year.

     Section 7.7. Transactions with Affiliates. The Borrower will not, and will not permit
any of its Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or
purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other
transactions with, any of its Affiliates, except (a) in the ordinary course of business at prices
and on terms and conditions not less favorable to the Borrower or such Subsidiary than could be
obtained on an arm’s-length basis from unrelated third parties, (b) transactions between or among
the Borrower and any Subsidiary Loan Party not involving any other Affiliates, (c) any

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Restricted Payments permitted by Section 7.5 and any Investments permitted by
Section 7.4, (d) customary directors’ fees and expenses to Persons who are not otherwise
employees of the Borrower or any of its Subsidiaries, (e) employment agreements, employee benefit
and compensation plans, as determined in good faith by the board of directors or senior management
of the Borrower and (f) the payment of customary fees and reimbursement of reasonable out-of-pocket
costs of, and customary indemnities provided to or on behalf of, directors, officers and employees
of the Borrower and its Subsidiaries in the ordinary course of business.

     Section 7.8. Restrictive Agreements. The Borrower will not, and will not permit any
Subsidiary to, directly or indirectly, enter into, incur or permit to exist any agreement that
prohibits, restricts or imposes any condition upon (a) the ability of the Borrower or any
Subsidiary to create, incur or permit any Lien upon any of its assets or properties, whether now
owned or hereafter acquired, or (b) the ability of any Subsidiary to pay dividends or other
distributions with respect to its Capital Stock, to make or repay loans or advances to the Borrower
or any other Subsidiary, to Guarantee Indebtedness of the Borrower or any other Subsidiary or to
transfer any of its property or assets to the Borrower or any Subsidiary of the Borrower;
provided, that (i) the foregoing shall not apply to restrictions or conditions imposed by
law or by this Agreement or any other Loan Document, (ii) the foregoing shall not apply to
customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary
pending such sale, provided such restrictions and conditions apply only to the Subsidiary that is
sold and such sale is permitted hereunder, (iii) clause (a) shall not apply to restrictions or
conditions imposed by any agreement relating to secured Indebtedness permitted by this Agreement if
such restrictions and conditions apply only to the property or assets securing such Indebtedness,
(iv) clause (a) shall not apply to customary provisions in leases, licenses and other similar
agreements restricting the assignment thereof and (v) clause (a) shall not apply to negative pledge
covenants contained in any agreements relating to Indebtedness permitted to be incurred pursuant to
the provisions of this Agreement that (i) are not in any respect more restrictive than the
restrictions contained in this Agreement and (ii) do not prohibit the granting of Liens to secure
the Obligations.

     Section 7.9. Sale and Leaseback Transactions. The Borrower will not, and will not
permit any of the Subsidiaries to, enter into any arrangement, directly or indirectly, whereby it
shall sell or transfer any property, real or personal, used or useful in its business, whether now
owned or hereinafter acquired, and thereafter rent or lease such property or other property that it
intends to use for substantially the same purpose or purposes as the property sold or transferred
(each such transaction, a “Sale and Leaseback Transaction”), unless such Sale and Leaseback
Transaction is otherwise permitted by Sections 7.1 and 7.6.

     Section 7.10. Hedging Transactions. The Borrower will not, and will not permit any of
the Subsidiaries to, enter into any Hedging Transaction, other than Hedging Transactions entered
into in the ordinary course of business to hedge or mitigate risks to which the Borrower or any
Subsidiary is exposed in the conduct of its business or the management of its liabilities. Solely
for the avoidance of doubt, the Borrower acknowledges that a Hedging Transaction entered into for
speculative purposes or of a speculative nature (which shall be deemed to include any Hedging
Transaction under which the Borrower or any of the Subsidiaries is or may become obliged to make
any payment (i) in connection with the purchase by any third party of any Capital Stock or any
Indebtedness or (ii) as a result of changes in the market value of any

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Capital Stock or any Indebtedness (excluding Indebtedness of the Borrower or its Subsidiaries
under this Agreement and the other Loan Documents or as permitted to be incurred pursuant to this
Agreement) is not a Hedging Transaction entered into in the ordinary course of business to hedge or
mitigate risks.

     Section 7.11. Amendment to Material Documents. The Borrower will not, and will not
permit any of its Subsidiaries to, amend, modify or waive any of its rights in a manner materially
adverse to the Lenders under (a) its certificate of incorporation, bylaws or other organizational
documents or (b) Contractual Obligations evidencing, governing, securing or otherwise related to
Material Indebtedness.

     Section 7.12. Intentionally Deleted.

     Section 7.13. Accounting Changes. The Borrower will not, and will not permit any of
its Subsidiaries to, make any significant change in accounting treatment or reporting practices,
except as required by GAAP, or change the Fiscal Year of the Borrower or of any of its
Subsidiaries, except to change the fiscal year of a Subsidiary to conform its fiscal year to that
of the Borrower.

ARTICLE 8

EVENTS OF DEFAULT

     Section 8.1. Events of Default. If any of the following events (each an “Event of
Default”) shall occur:

          (a) the Borrower shall fail to pay any principal of any Loan or of any reimbursement
obligation in respect of any LC Disbursement when and as the same shall become due and payable,
whether at the due date thereof or at a date fixed for prepayment or otherwise; or

          (b) the Borrower shall fail to pay any interest on any Loan or any fee or any other amount
(other than an amount payable under clause (a) of this Section 8.1) payable under this
Agreement or any other Loan Document, when and as the same shall become due and payable, and such
failure shall continue unremedied for a period of three (3) Business Days; or

          (c) any representation or warranty made or deemed made by or on behalf of the Borrower or any
Subsidiary in or in connection with this Agreement or any other Loan Document (including the
Schedules attached thereto) and any amendments or modifications hereof or waivers hereunder, or in
any certificate, report, financial statement or other document submitted to the Administrative
Agent or the Lenders by any Loan Party or any representative of any Loan Party pursuant to or in
connection with this Agreement or any other Loan Document (including any Compliance Certificate)
shall prove to be incorrect in any material respect (or, if qualified by materiality, then in all
respects) when made or deemed made or submitted; or

          (d) the Borrower shall fail to observe or perform any covenant or agreement contained in
Section 5.1(a), 5.1(b), 5.2(a)(i), or 5.3(a) (with respect to the
Borrower’s or any Loan Party’s existence) or Articles 6 or 7; or

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          (e) any Loan Party shall fail to observe or perform any covenant or agreement contained in
this Agreement (other than those referred to in clauses (a), (b) and (d) above) or any other Loan
Document, and such failure shall remain unremedied for 30 days after the earlier of (i) any
Responsible Officer of the Borrower becomes aware of such failure, or (ii) notice thereof shall
have been given to the Borrower by the Administrative Agent or any Lender; or

          (f) intentionally deleted; or

          (g) the Borrower or any Subsidiary (whether as primary obligor or as guarantor or other
surety) shall fail to pay any principal of, or premium or interest on, any Material Indebtedness
that is outstanding, when and as the same shall become due and payable (whether at scheduled
maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue
after the applicable grace period, if any, specified in the agreement or instrument evidencing or
governing such Indebtedness; or any other event shall occur or condition shall exist under any
agreement or instrument relating to such Indebtedness and shall continue after the applicable grace
period, if any, specified in such agreement or instrument, if the effect of such event or condition
is to accelerate, or permit the acceleration of, the maturity of such Indebtedness; or any such
Indebtedness shall be declared to be due and payable, or required to be prepaid or redeemed (other
than by a regularly scheduled required prepayment or redemption), purchased or defeased, or any
offer to prepay, redeem, purchase or defease such Indebtedness shall be required to be made, in
each case prior to the stated maturity thereof (other than customary non-default mandatory
prepayment requirements associated with asset sales, casualty events or equity issuances); or

          (h) the Borrower or any Subsidiary Loan Party shall (i) commence a voluntary case or other
proceeding or file any petition seeking liquidation, reorganization or other relief under any
federal, state or foreign bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a custodian, trustee, receiver, liquidator or other similar official of
it or any substantial part of its property, (ii) consent to the institution of, or fail to contest
in a timely and appropriate manner, any proceeding or petition described in clause (i) of this
Section 8.1, (iii) apply for or consent to the appointment of a custodian, trustee,
receiver, liquidator or other similar official for the Borrower or any such Subsidiary Loan Party
or for a substantial part of its assets, (iv) file an answer admitting the material allegations of
a petition filed against it in any such proceeding, (v) make a general assignment for the benefit
of creditors, or (vi) take any action for the purpose of effecting any of the foregoing; or

          (i) an involuntary proceeding shall be commenced or an involuntary petition shall be filed
seeking (i) liquidation, reorganization or other relief in respect of the Borrower or any
Subsidiary Loan Party or its debts, or any substantial part of its assets, under any federal, state
or foreign bankruptcy, insolvency or other similar law now or hereafter in effect or (ii) the
appointment of a custodian, trustee, receiver, liquidator or other similar official for the
Borrower or any Subsidiary Loan Party or for a substantial part of its assets, and in any such
case, such proceeding or petition shall remain undismissed for a period of 60 days or an order or
decree approving or ordering any of the foregoing shall be entered; or

          (j) the Borrower or any Subsidiary shall become unable to pay, shall admit in writing its
inability to pay, or shall fail generally to pay, its debts as they become due; or

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          (k) an ERISA Event shall have occurred that, when taken together with other ERISA Events that
have occurred, would reasonably be expected to result in a Material Adverse Effect; or

          (l) any judgment or order for the payment of money in excess of $5,000,000 in the aggregate
shall be rendered against the Borrower or any Subsidiary, and either (i) enforcement proceedings
shall have been commenced by any creditor upon such judgment or order or (ii) there shall be a
period of 30 consecutive days during which a stay of enforcement of such judgment or order, by
reason of a pending appeal or otherwise, shall not be in effect; or

          (m) any non-monetary judgment or order shall be rendered against the Borrower or any
Subsidiary that would reasonably be expected to have a Material Adverse Effect, and there shall be
a period of 30 consecutive days during which a stay of enforcement of such judgment or order, by
reason of a pending appeal or otherwise, shall not be in effect; or

          (n) a Change in Control shall occur or exist; or

          (o) any provision of any Subsidiary Guaranty Agreement shall for any reason cease to be valid
and binding on, or enforceable against, any Subsidiary Loan Party, or any Subsidiary Loan Party
shall so state in writing, or any Subsidiary Loan Party shall seek to terminate its Subsidiary
Guaranty Agreement; or

          (p) any security interest purported to be created by any Security Document shall cease to be,
or shall be asserted by the Borrower or any other Loan Party not to be, a valid, perfected, first
priority (except as otherwise permitted in this Agreement or such Security Document) security
interest in the securities, assets or properties covered thereby; or

          (q) any “Event of Default” shall have occurred and be continuing under any other Loan
Document;

     then, and in every such event (other than an event with respect to the Borrower described in
clause (h) or (i) of this Section 8.1) and at any time thereafter during the continuance of
such event, the Administrative Agent may, and upon the written request of the Required Lenders
shall, by notice to the Borrower, take any or all of the following actions, at the same or
different times: (i) terminate the Commitments, whereupon the Commitment of each Lender shall
terminate immediately, (ii) declare the principal of and any accrued interest on the Loans, and all
other Obligations owing hereunder, to be, whereupon the same shall become, due and payable
immediately, without presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower, (iii) exercise all remedies contained in any other Loan Document,
and (iv) exercise any other remedies available at law or in equity; and that, if an Event of
Default specified in either clause (h) or (i) shall occur, the Commitments shall automatically
terminate and the principal of the Loans then outstanding, together with accrued interest thereon,
and all fees, and all other Obligations shall automatically become due and payable, without
presentment, demand, protest or other notice of any kind, all of which are hereby waived by the
Borrower.

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          Section 8.2. Application of Proceeds from Collateral. All proceeds from each sale of,
or other realization upon, all or any part of the Collateral by the Administrative Agent or any of
the Lenders after an Event of Default arises shall be applied as follows:

          (a) first, to the reimbursable expenses of the Administrative Agent incurred in
connection with such sale or other realization upon the Collateral, until the same shall have been
paid in full;

          (b) second, to the fees and other reimbursable expenses of the Administrative Agent
and the Issuing Bank then due and payable pursuant to any of the Loan Documents, until the same
shall have been paid in full;

          (c) third, to all reimbursable expenses, if any, of the Lenders then due and payable
pursuant to any of the Loan Documents, until the same shall have been paid in full;

          (d) fourth, to the fees due and payable under Sections 2.15(b) and (c)
of this Agreement and interest then due and payable under the terms of this Agreement, until the
same shall have been paid in full;

          (e) fifth, to the aggregate outstanding principal amount of the Term Loans (allocated
pro rata among the Term Loan Lenders in respect of their Pro Rata Shares), to the aggregate
outstanding principal amount of the Revolving Loans, the LC Exposure and, to the extent secured by
Liens, the Net Mark-to-Market Exposure of the Borrower and its Subsidiaries, until the same shall
have been paid in full, allocated pro rata among any Lender, any Affiliate of any Lender or any
Specified Hedge Provider, based on their respective pro rata shares of the aggregate amount of such
Revolving Loans, LC Exposure and Net Mark-to-Market Exposure and to the Treasury Management
Obligations maintained with any Specified Treasury Management Provider;

          (f) sixth, to additional cash collateral for the aggregate amount of all outstanding
Letters of Credit until the aggregate amount of all cash collateral held by the Administrative
Agent pursuant to this Agreement is equal to 105% of the LC Exposure after giving effect to the
foregoing clause fifth; and

          (g) to the extent any proceeds remain, to the Borrower or other parties lawfully entitled
thereto.

     All amounts allocated pursuant to the foregoing clauses second through sixth
to the Lenders as a result of amounts owed to the Lenders under the Loan Documents shall be
allocated among, and distributed to, the Lenders pro rata based on their respective Pro Rata
Shares; provided, however, that all amounts allocated to that portion of the LC
Exposure comprised of the aggregate undrawn amount of all outstanding Letters of Credit pursuant to
clause fifth and sixth shall be distributed to the Administrative Agent, rather
than to the Lenders, and held by the Administrative Agent in an account in the name of the
Administrative Agent for the benefit of the Issuing Bank and the Revolving Loan Lenders as cash
collateral for the LC Exposure, such account to be administered in accordance with Section
2.23(g).

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ARTICLE 9

THE ADMINISTRATIVE AGENT

     Section 9.1. Appointment of Administrative Agent.

          (a) Each Lender irrevocably appoints SunTrust Bank as the Administrative Agent and authorizes
it to take such actions on its behalf and to exercise such powers as are delegated to the
Administrative Agent under this Agreement and the other Loan Documents, together with all such
actions and powers that are reasonably incidental thereto. The Administrative Agent may perform
any of its duties hereunder or under the other Loan Documents by or through any one or more
sub-agents or attorneys-in-fact appointed by the Administrative Agent. The Administrative Agent
and any such sub-agent or attorney-in-fact may perform any and all of its duties and exercise its
rights and powers through their respective Related Parties. The exculpatory provisions set forth
in this Article shall apply to any such sub-agent or attorney-in-fact and the Related Parties of
the Administrative Agent, any such sub-agent and any such attorney-in-fact and shall apply to their
respective activities in connection with the syndication of the credit facilities provided for
herein as well as activities as Administrative Agent.

          (b) The Issuing Bank shall act on behalf of the Lenders with respect to any Letters of Credit
issued by it and the documents associated therewith until such time and except for so long as the
Administrative Agent may agree at the request of the Required Lenders to act for the Issuing Bank
with respect thereto; provided, that the Issuing Bank shall have all the benefits and immunities
(i) provided to the Administrative Agent in this Article with respect to any acts taken or
omissions suffered by the Issuing Bank in connection with Letters of Credit issued by it or
proposed to be issued by it and the application and agreements for letters of credit pertaining to
the Letters of Credit as fully as if the term “Administrative Agent” as used in this Article
included the Issuing Bank with respect to such acts or omissions and (ii) as additionally provided
in this Agreement with respect to the Issuing Bank.

     Section 9.2. Nature of Duties of Administrative Agent. The Administrative Agent shall
not have any duties or obligations except those expressly set forth in this Agreement and the other
Loan Documents. Without limiting the generality of the foregoing, (a) the Administrative Agent
shall not be subject to any fiduciary or other implied duties, regardless of whether a Default or
an Event of Default has occurred and is continuing, (b) the Administrative Agent shall not have any
duty to take any discretionary action or exercise any discretionary powers, except those
discretionary rights and powers expressly contemplated by the Loan Documents that the
Administrative Agent is required to exercise in writing by the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary under the circumstances as provided in
Section 10.2), and (c) except as expressly set forth in the Loan Documents, the
Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure
to disclose, any information relating to the Borrower or any of its Subsidiaries that is
communicated to or obtained by the Administrative Agent or any of its Affiliates in any capacity.
The Administrative Agent shall not be liable for any action taken or not taken by it, its
sub-agents or attorneys-in-fact with the consent or at the request of the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary under the circumstances as

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provided in Section 10.2) or in the absence of its own gross negligence or willful
misconduct as determined by a final, non-appealable judgment of a court of competent jurisdiction.
The Administrative Agent shall not be responsible for the negligence or misconduct of any
sub-agents or attorneys-in-fact selected by it with reasonable care. The Administrative Agent
shall not be deemed to have knowledge of any Default or Event of Default unless and until written
notice thereof (which notice shall include an express reference to such event being a “Default” or
“Event of Default” hereunder) is given to the Administrative Agent by the Borrower or any Lender,
and the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire
into (i) any statement, warranty or representation made in or in connection with any Loan Document,
(ii) the contents of any certificate, report or other document delivered hereunder or thereunder or
in connection herewith or therewith, (iii) the performance or observance of any of the covenants,
agreements, or other terms and conditions set forth in any Loan Document, (iv) the validity,
enforceability, effectiveness or genuineness of any Loan Document or any other agreement,
instrument or document, or (v) the satisfaction of any condition set forth in Article 3 or
elsewhere in any Loan Document, other than to confirm receipt of items expressly required to be
delivered to the Administrative Agent. The Administrative Agent may consult with legal counsel
(including counsel for the Borrower) concerning all matters pertaining to such duties.

     Section 9.3. Lack of Reliance on the Administrative Agent. Each of the Lenders, the
Swingline Lender and the Issuing Bank acknowledges that it has, independently and without reliance
upon the Administrative Agent or any other Lender and based on such documents and information as it
has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.
Each of the Lenders, the Swingline Lender and the Issuing Bank also acknowledges that it will,
independently and without reliance upon the Administrative Agent or any other Lender and based on
such documents and information as it has deemed appropriate, continue to make its own decisions in
taking or not taking of any action under or based on this Agreement, any related agreement or any
document furnished hereunder or thereunder.

     Section 9.4. Certain Rights of the Administrative Agent. If the Administrative Agent
shall request instructions from the Required Lenders with respect to any action or actions
(including the failure to act) in connection with this Agreement, the Administrative Agent shall be
entitled to refrain from such act or taking such act, unless and until it shall have received
instructions from such Lenders, and the Administrative Agent shall not incur liability to any
Person by reason of so refraining. Without limiting the foregoing, no Lender shall have any right
of action whatsoever against the Administrative Agent as a result of the Administrative Agent
acting or refraining from acting hereunder in accordance with the instructions of the Required
Lenders where required by the terms of this Agreement.

     Section 9.5. Reliance by Administrative Agent. The Administrative Agent shall be
entitled to rely upon, and shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing believed in good faith by it
to be genuine and to have been signed, sent or made by the proper Person. The Administrative Agent
may also rely upon any statement made to it orally or by telephone and believed in good faith by it
to be made by the proper Person and shall not incur any liability for relying thereon. The
Administrative Agent may consult with legal counsel (including counsel for the Borrower),
independent public accountants and other experts selected by it and shall not be liable for any

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action taken or not taken by it in accordance with the advice of such counsel, accountants or
experts.

     Section 9.6. The Administrative Agent in its Individual Capacity. The bank serving as
the Administrative Agent shall have the same rights and powers under this Agreement and any other
Loan Document in its capacity as a Lender as any other Lender and may exercise or refrain from
exercising the same as though it were not the Administrative Agent; and the terms “Lenders”,
“Required Lenders”, “holders of Notes”, or any similar terms shall, unless the context clearly
otherwise indicates, include the Administrative Agent in its individual capacity. The bank acting
as the Administrative Agent and its Affiliates may accept deposits from, lend money to, and
generally engage in any kind of business with the Borrower or any Subsidiary or Affiliate of the
Borrower as if it were not the Administrative Agent hereunder.

     Section 9.7. Successor Administrative Agent.

          (a) The Administrative Agent may resign at any time by giving notice thereof to the Lenders
and the Borrower. Upon any such resignation, the Required Lenders shall have the right to appoint
a successor Administrative Agent, which shall be a commercial bank organized under the laws of the
United States of America or any state thereof or a bank which maintains an office in the United
States, having a combined capital and surplus of at least $500,000,000, subject to the approval by
the Borrower provided that no Default or Event of Default shall exist at such time. If no
successor Administrative Agent shall have been so appointed, and shall have accepted such
appointment within 30 days after the retiring Administrative Agent gives notice of resignation,
then the retiring Administrative Agent may, on behalf of the Lenders and the Issuing Bank, appoint
a successor Administrative Agent meeting the above requirements.

          (b) Upon the acceptance of its appointment as the Administrative Agent hereunder by a
successor, such successor Administrative Agent shall thereupon succeed to and become vested with
all the rights, powers, privileges and duties of the retiring Administrative Agent, and the
retiring Administrative Agent shall be discharged from its duties and obligations under this
Agreement and the other Loan Documents. If within 45 days after written notice is given of the
retiring Administrative Agent’s resignation under this Section 9.7 no successor
Administrative Agent shall have been appointed and shall have accepted such appointment, then on
such 45th day (i) the retiring Administrative Agent’s resignation shall become
effective, (ii) the retiring Administrative Agent shall thereupon be discharged from its duties and
obligations under the Loan Documents (except that in the case of any Collateral held by the
Administrative Agent on behalf of the Lenders or the Issuing Bank under any of the Loan Documents,
the retiring Administrative Agent shall continue to hold such Collateral until such time as a
successor Administrative Agent is appointed, provided, however, that the retiring
Administrative Agent shall have no duties or obligations in respect thereof other than as imposed
by the UCC or other applicable law) and (iii) the Required Lenders shall thereafter perform all
duties of the retiring Administrative Agent under the Loan Documents until such time as the
Required Lenders appoint a successor Administrative Agent as provided above. After any retiring
Administrative Agent’s resignation hereunder, the provisions of this Article shall continue in
effect for the benefit of such retiring Administrative Agent and its representatives

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and agents in respect of any actions taken or not taken by any of them while it was serving as the
Administrative Agent.

     Section 9.8. Authorization to Execute other Loan Documents.

          (a) Each Lender authorizes the Administrative Agent to enter into each of the Loan Documents
to which it is a party and to take all action contemplated by such Loan Documents. Each Lender
agrees (except to the extent provided in Section 9.7(b) following the resignation of the
Administrative Agent) that no Lender, other than the Administrative Agent acting on behalf of all
Lenders, shall have the right individually to seek to realize upon the security granted by any Loan
Document, it being understood and agreed that such rights and remedies may be exercised solely by
the Administrative Agent for the benefit of the Lenders, upon the terms of the Loan Documents.
Each Lender further authorizes the Administrative Agent, and, at the request of the Borrower, the
Administrative Agent shall, release any Subsidiary Loan Party from its obligations under the
Subsidiary Guaranty Agreement and any other Loan Documents to which it is a party in connection
with any sale, liquidation, dissolution or other disposition of such Subsidiary Loan Party;
provided, that such sale, liquidation, dissolution or other disposition is otherwise
permitted under the Loan Documents.

          (b) In the event that any Collateral is pledged by any Person as collateral security for the
Obligations, the Administrative Agent is hereby authorized to execute and deliver on behalf of the
Lenders any Loan Documents necessary or appropriate to grant and perfect a Lien on such Collateral
in favor of the Administrative Agent on behalf of the Lenders.

          (c) The Lenders hereby authorize the Administrative Agent, at its option and in its
discretion, to release any Lien granted to or held by the Administrative Agent upon any Collateral
(i) upon Payment in Full of all of the Obligations; (ii) as permitted by, but only in accordance
with, the terms of the applicable Loan Document; (iii) if approved, authorized or ratified in
writing by the Required Lenders, unless such release is required to be approved by all of the
Lenders hereunder; or (iv) the release of any Lien on any assets which (A) are transferred or
disposed of in accordance with the terms of this Agreement or (B) become subject to a Lien
permitted by Section 7.1(c) in respect of which the applicable transaction documents do not permit
such asset to be included in the Collateral hereunder. In connection with any such release, the
Administrative Agent shall promptly (x) execute and deliver to the Borrower, at the Borrower’s
expense, all documents that the Borrower shall reasonably request to evidence such release and (y)
deliver to the Borrower, at the Borrower’s expense, any portion of such Collateral so released in
possession of the Administrative Agent. In addition, the Administrative Agent shall, at the
Borrower’s request, and at the Borrower’s expense, file UCC financing statement terminations or
amendments and take such other actions as shall be reasonably required by the Borrower to evidence
the release of any Excluded Collateral. Upon request by the Administrative Agent at any time, the
Lenders will confirm in writing the Administrative Agent’s authority to release particular types or
items of Collateral pursuant to this Section 9.8(c).

          (d) Upon any sale or transfer of assets constituting Collateral (including any dissolution of
a Subsidiary permitted under this Agreement, the shares of which are pledged pursuant to the
Security Documents) which is (x) permitted pursuant to the terms of any Loan Documents, or (y)
consented to in writing by the Required Lenders or all of the Lenders if the

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release of such assets is required hereunder to be approved by all of the Lenders, and upon at
least (A) five (5) Business Days’ prior written request by the Borrower in the case of clause (x)
or (B) ten (10) Business Days’ prior written request by the Borrower in the case of clause (y) (or
such shorter period as permitted by the Administrative Agent in its sole discretion), the
Administrative Agent shall (and is hereby irrevocably authorized by the Lenders to) execute such
documents as may be necessary or reasonably requested by the Borrower (including, if applicable,
the return, at the expense of the Borrower, of possessory collateral and the termination of any
control agreements) to evidence the release of the Liens granted to the Administrative Agent for
the benefit of the Lenders, upon the Collateral that was sold or transferred; provided,
however, that (i) the Administrative Agent shall not be required to execute any such
document on terms which, in the Administrative Agent’s opinion, would expose the Administrative
Agent to liability or create any obligation or entail any consequence other than the release of
such Liens without recourse or warranty, and (ii) such release shall not in any manner discharge,
affect or impair the Obligations or any Liens upon (or obligations of the Borrower or any Loan
Party) in respect of) all interests retained by the Borrower or any Loan Party, including (without
limitation) the proceeds of the sale, all of which shall continue to constitute part of the
Collateral.

     Section 9.9. Benefits of Article 9. None of the provisions of this Article 9
(other than the Borrower consent rights provided in Section 9.7(a) or the Borrower rights
to guaranty and Lien release as provided in Section 9.8) shall inure to the benefit of the
Borrower or of any Person other than Administrative Agent and each of the Lenders and their
respective successors and permitted assigns. Accordingly, neither the Borrower nor any Person
other than Administrative Agent and the Lenders (and their respective successors and permitted
assigns) shall be entitled to rely upon, or to raise as a defense, the failure of the
Administrative Agent or any Lenders to comply with the provisions of this Article 9.

     Section 9.10. Titled Agents. Each Lender and each Loan Party agrees that any
documentation agent or syndication agent or any other titled agent, in such capacity, shall have no
duties or obligations under any Loan Documents to any Lender or any Loan Party. Anything herein to
the contrary notwithstanding, none of the Bookrunners, Book Managers or Arrangers or other titled
agents listed on the cover page hereof shall have any powers, duties or responsibilities under this
Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the
Administrative Agent, a Lender or the Issuing Bank hereunder.

ARTICLE 10

MISCELLANEOUS

     Section 10.1. Notices.

          (a) Except in the case of notices and other communications expressly permitted to be given by
telephone, all notices and other communications to any party herein to be effective shall be in
writing and shall be delivered by hand or overnight courier service, mailed by certified or
registered mail, return receipt requested, or sent by telecopy, as follows:

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	To the Borrower:

	 	Strayer Education, Inc.

2303 Dulles Station Boulevard 

Herndon, Virginia 20171
	 

	 	Attention: Mark Brown, Executive Vice 

President and Chief Financial Officer
	 

	 	Telecopy Number: (703) [__-____]
	 
	 	 
	With a copy to:

	 	Hogan Lovells US LLP

Columbia Square

555 Thirteenth Street, NW

Washington, DC 20004
	 

	 	Attention: Gordon Wilson, Esquire
	 

	 	Telecopy Number: (202) 637-5910
	 
	 	 
	To the Administrative Agent 

or Swingline Lender:

	 	
SunTrust Bank 

120 E. Baltimore Street 

25th Floor 

Baltimore, Maryland 21202
	 

	 	Attention: Paul Deerin, Vice President
	 

	 	Telecopy Number: (410) 986-1927
	 
	 	 
	With a copy to:

	 	Hunton & Williams LLP 

1751 Pinnacle Drive 

Suite 1700

McLean, Virginia 22102
	 

	 	Attention: Kevin F. Hull, Esquire
	 

	 	Telecopy Number: (703) 714-7410
	 
	 	 
	With a copy to:

	 	SunTrust Bank

Agency Services 

303 Peachtree Street, N. E./ 25th Floor 

Atlanta, Georgia 30308
	 

	 	Attention: Mr. Douglas Weltz
	 

	 	Telecopy Number: (404) 221-2001
	 
	 	 
	To the Issuing Bank:

	 	SunTrust Bank 

25 Park Place, N. E./Mail Code 3706

Atlanta, Georgia 30303
	 

	 	Attention: Phil Acuff
	 

	 	Telecopy Number: (404) 588-8129

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	To the Swingline Lender:

	 	SunTrust Bank

Agency Services 

303 Peachtree Street, N.E./25th Floor 

Atlanta, Georgia 30308
	 

	 	Attention: Mr. Douglas Weltz
	 

	 	Telecopy Number: (404) 221-2001
	 
	 	 
	To any other Lender:

	 	the address set forth in the Administrative 

Questionnaire or the Assignment and Assumption 

Agreement executed by such
Lender

          (b) Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All such notices and other
communications shall, when transmitted by overnight delivery, or faxed, be effective when delivered
for overnight (next-day) delivery, or transmitted in legible form by facsimile machine,
respectively, or if mailed, upon the third Business Day after the
date deposited into the mail or if delivered, upon delivery; provided, that notices delivered to the Administrative Agent,
the Issuing Bank or the Swingline Lender shall not be effective until actually received by such
Person at its address specified in this Section 10.1.

          (c) Any agreement of the Administrative Agent and the Lenders herein to receive certain
notices by telephone or facsimile is solely for the convenience and at the request of the Borrower.
The Administrative Agent and the Lenders shall be entitled to rely on the authority of any Person
purporting to be a Person authorized by the Borrower to give such notice and the Administrative
Agent and Lenders shall not have any liability to the Borrower or other Person on account of any
action taken or not taken by the Administrative Agent or the Lenders in reliance upon such
telephonic or facsimile notice. The obligation of the Borrower to repay the Loans and all other
Obligations hereunder shall not be affected in any way or to any extent by any failure of the
Administrative Agent and the Lenders to receive written confirmation of any telephonic or facsimile
notice or the receipt by the Administrative Agent and the Lenders of a confirmation which is at
variance with the terms understood by the Administrative Agent and the Lenders to be contained in
any such telephonic or facsimile notice.

     Section 10.2. Waiver; Amendments.

          (a) No failure or delay by the Administrative Agent, the Issuing Bank or any Lender in
exercising any right or power hereunder or any other Loan Document, and no course of dealing
between the Borrower and the Administrative Agent or any Lender, shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power or any abandonment or
discontinuance of steps to enforce such right or power, preclude any other or further exercise
thereof or the exercise of any other right or power hereunder or thereunder. The rights and
remedies of the Administrative Agent, the Issuing Bank and the Lenders hereunder and under the
other Loan Documents are cumulative and are not exclusive of any rights or remedies provided by
law. No waiver of any provision of this Agreement or any other Loan Document or consent to any
departure by the Borrower therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section 10.2, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given.

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Without limiting the generality of the foregoing, the making of a Loan or the issuance of a
Letter of Credit shall not be construed as a waiver of any Default or Event of Default, regardless
of whether the Administrative Agent, any Lender or the Issuing Bank may have had notice or
knowledge of such Default or Event of Default at the time.

          (b) No amendment or waiver of any provision of this Agreement or the other Loan Documents, nor
consent to any departure by the Borrower or any Loan Party therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Borrower or the applicable Loan
Party and the Required Lenders or the Borrower or the applicable Loan Party and the Administrative
Agent with the consent of the Required Lenders and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given; provided, that
no amendment or waiver shall: (i) increase the Commitment of any Lender without the written consent
of such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate
of interest thereon, or reduce any fees payable hereunder, without the written consent of each
Lender affected thereby (provided, however, that only the consent of the Required
Lenders shall be necessary to (A) amend the definition of “Default Interest” or waive any
obligation of the Borrower to pay (1) Default Interest or (2) Letter of Credit fees by an
additional 2% per annum pursuant to the last sentence of Section 2.15(c) or (B) to amend
any financial covenant hereunder (or any defined term used therein) even if the effect of such
amendment would be to reduce the rate of interest on any Loan or LC Disbursement or to reduce any
fee payable hereunder), (iii) postpone the date fixed for any payment of any principal of, or
interest on, any Loan or LC Disbursement or interest thereon or any fees hereunder or reduce the
amount of, waive or excuse any such payment or postpone the scheduled date for the termination or
reduction of any Commitment, without the written consent of each Lender affected thereby, (iv)
change Section 2.22(b) or (c) or any other provision in the Loan Documents relating
specifically to pro rata sharing of payments in a manner that would alter the pro rata sharing of
payments required thereby, without the written consent of each Lender, (v) change any of the
provisions of this Section 10.2 or the definition of “Required Lenders” or any other
provision hereof specifying the number or percentage of Lenders which are required to waive, amend
or modify any rights hereunder or make any determination or grant any consent hereunder, without
the consent of each Lender; (vi) release the Borrower or any guarantor (subject to the provisions
of Section 9.8(a)) or limit the liability of the Borrower under the Loan Documents or any
such guarantor under any guaranty agreement, without the written consent of each Lender, (vii)
release all or substantially all collateral (if any) securing any of the Obligations, or agree to
subordinate any Lien in such collateral to any other creditor of the Borrower or any Subsidiary,
without the written consent of each Lender, (viii) subordinate the Loans to any other Indebtedness
without the consent of all Lenders, (ix) impose additional or more burdensome conditions on a
Lender’s ability to assign its Commitments without the consent of each Lender affected thereby or
(x) increase the aggregate of all Commitments without the consent of all of the Lenders;
provided further, that no such agreement shall amend, modify or otherwise affect the
rights, duties or obligations of the Administrative Agent, the Swingline Lender or the Issuing Bank
without the prior written consent of such Person. Notwithstanding anything to the contrary
contained herein, no Defaulting Lender shall have any right to approve or disapprove any amendment,
waiver or consent hereunder, except that the Commitment of such Lender may not be increased or
extended without the consent of such Lender, and provided that a Defaulting
 Lender shall have the
right to approve or disapprove any waiver, amendment or modification requiring the consent of all
Lenders or each affected Lender

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that by its terms affects such Defaulting Lender more adversely than other affected Lenders.
Notwithstanding anything contained herein to the contrary, this Agreement may be amended and
restated without the consent of any Lender (but with the consent of the Borrower and the
Administrative Agent) if, upon giving effect to such amendment and restatement, such Lender shall
no longer be a party to this Agreement (as so amended and restated), the Commitments of such Lender
shall have terminated (but such Lender shall continue to be entitled to the benefits of
Sections 2.19, 2.20, 2.21 and 10.3), such Lender shall have no
other commitment or other obligation hereunder and shall have been paid in full all principal,
interest and other amounts owing to it or accrued for its account under this Agreement.

     Section 10.3. Expenses; Indemnification.

          (a) The Borrower shall pay (i) all reasonable documented out-of-pocket costs and expenses of
the Administrative Agent and its Affiliates (other than the fees, charges and disbursements of
counsel for the Administrative Agent and its Affiliates related to the preparation, due diligence
and closing of the Loan Documents that are delivered on the Closing Date (the “Closing Date
Legal Costs”)), in connection with the syndication of the credit facilities provided for
herein, the preparation and administration of the Loan Documents and any amendments, modifications
or waivers thereof (other than the Closing Date Legal Costs) (whether or not the transactions
contemplated in this Agreement or any other Loan Document shall be consummated), (ii) all
reasonable documented out-of-pocket expenses incurred by the Issuing Bank in connection with the
issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment
thereunder and (iii) all documented out-of-pocket costs and expenses (including, without
limitation, the reasonable documented fees, charges and disbursements of outside counsel) incurred
by the Administrative Agent, the Issuing Bank or any Lender in connection with the enforcement or
protection of its rights in connection with this Agreement and the other Loan Documents, including
its rights under this Section 10.3, or in connection with the Loans made or any Letters of
Credit issued hereunder, including all such documented out-of-pocket expenses incurred during any
workout, restructuring or negotiations in respect of such Loans or Letters of Credit. The Borrower
shall pay to the Administrative Agent or STRH, as applicable, all fees due from time to time under
the Fee Letter.

          (b) The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof), each
Lender and the Issuing Bank, and each Related Party of any of the foregoing Persons (each such
Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any
and all losses, claims, damages, liabilities, penalties and related expenses (including the fees,
charges and disbursements of any counsel for any Indemnitee), and shall indemnify and hold harmless
each Indemnitee from all fees and time charges and disbursements for attorneys who may be employees
of any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any third party
or by the Borrower or any other Loan Party arising out of, in connection with, or as a result of
(i) the execution or delivery of this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the performance by the parties hereto of their
respective obligations hereunder or thereunder or the consummation of the transactions contemplated
hereby or thereby, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds
therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a Letter
of Credit if the documents presented in connection with such demand do not strictly comply with the
terms of such Letter of Credit),

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(iii) any actual or alleged presence or Release of Hazardous Materials on or from any property owned
or operated by the Borrower or any of its Subsidiaries, or any actual or alleged Environmental
Liability related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory, whether brought by a third party or by the
Borrower or any other Loan Party, and regardless of whether any Indemnitee is a party thereto,
provided that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities, penalties or related expenses (x) are determined by
a court of competent jurisdiction by final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Indemnitee, (y) result from a claim brought by the
Borrower or any other Loan Party against an Indemnitee for breach in bad faith of such Indemnitee’s
obligations hereunder or under any other Loan Document, if the Borrower or such Loan Party has
obtained a final and nonappealable judgment in its favor on such claim as determined by a court of
competent jurisdiction or (z) constitute amounts in respect of Excluded Taxes.

          (c) The Borrower shall pay, and hold the Administrative Agent and each of the Lenders harmless
from and against, any and all present and future stamp, documentary, and other similar taxes (other
than Excluded Taxes) with respect to this Agreement and any other Loan Documents, any collateral
described therein, or any payments due thereunder, and save the Administrative Agent and each
Lender harmless from and against any and all liabilities with respect to or resulting from any
delay or omission to pay such taxes.

          (d) To the extent that the Borrower fails to pay any amount required to be paid to the
Administrative Agent, the Issuing Bank or the Swingline Lender under clauses (a), (b) or (c)
hereof, each Lender severally agrees to pay to the Administrative Agent, the Issuing Bank or the
Swingline Lender, as the case may be, such Lender’s Pro Rata Share (determined as of the time that
the unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided,
that the unreimbursed expense or indemnified payment, claim, damage, liability or related expense,
as the case may be, was incurred by or asserted against the Administrative Agent, the Issuing Bank
or the Swingline Lender in its capacity as such.

          (e) To the extent permitted by applicable law, the Borrower shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to actual or direct damages) arising out of, in
connection with or as a result of, this Agreement or any agreement or instrument contemplated
hereby, the transactions contemplated therein, any Loan or any Letter of Credit or the use of
proceeds thereof.

          (f) All amounts due under this Section 10.3 shall be payable promptly after written
demand therefor.

     Section 10.4. Successors and Assigns.

          (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby, except that the
Borrower may not assign or otherwise transfer any of its rights or obligations hereunder

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without the prior written consent of the Administrative Agent and each Lender, and no Lender
may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an
assignee in accordance with the provisions of paragraph (b) of this Section, (ii) by way of
participation in accordance with the provisions of paragraph (d) of this Section or (iii) by way of
pledge or assignment of a security interest subject to the restrictions of paragraph (g) of this
Section (and any other attempted assignment or transfer by any party hereto shall be null and
void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly
contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any
legal or equitable right, remedy or claim under or by reason of this Agreement.

          (b) Any Lender may at any time assign to one or more assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its Commitment and the Loans at
the time owing to it); provided that any such assignment shall be subject to the following
conditions:

               (i) Minimum Amounts.

                    (A) in the case of an assignment of the entire remaining amount of the assigning Lender’s
Commitment and the Loans at the time owing to it or in the case of an assignment to a Lender, an
Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

                    (B) in any case not described in paragraph (b)(i)(A) of this Section, the aggregate amount of
the Commitment (which for this purpose includes Loans and Revolving Credit Exposure outstanding
thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding
balance of the Loans and Revolving Credit Exposure of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Assumption with respect to such assignment
is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and
Assumption, as of the Trade Date) shall not be less than $5,000,000 (or the entire Commitment, if
less), unless each of the Administrative Agent and, so long as no Event of Default has occurred and
is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld
or delayed).

               (ii) Proportionate Amounts. Each partial assignment shall be made as an assignment of
a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with
respect to the Loans, Revolving Credit Exposure or the Commitment assigned, except that this clause
(ii) shall not prohibit any Lender from assigning all or a portion of its rights and obligations
among separate Commitments on a non-pro rata basis.

               (iii) Required Consents. No consent shall be required for any assignment except to
the extent required by paragraph (b)(i)(B) of this Section and, in addition:

                    (A) the consent of the Borrower (such consent not to be unreasonably withheld or delayed)
shall be required unless (x) an Event of Default has occurred and is continuing at the time of such
assignment or (y) such assignment is to a Lender, an

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Affiliate of a Lender or an Approved Fund; provided that the Borrower shall be deemed to have
consented to any such assignment unless it shall object thereto by written notice to the
Administrative Agent within five (5) Business Days after having received notice thereof;

                    (B) the consent of the Administrative Agent (such consent not to be unreasonably withheld or
delayed) shall be required for (x) assignments in respect of (1) a Revolving Commitment if such
assignment is to a Person that is not a Lender with a Commitment in respect of such facility, an
Affiliate of such a Lender or an Approved Fund or (2) a funded Term Loan to a Person who is not a
Lender, an Affiliate of a Lender or an Approved Fund and (y) assignments by Defaulting Lenders; and

                    (C) the consent of the Issuing Bank (such consent not to be unreasonably withheld or delayed)
shall be required for any assignment that increases the obligation of the assignee to participate
in exposure under one or more Letters of Credit (whether or not then outstanding), and the consent
of the Swingline Lender (such consent not to be unreasonably withheld or delayed) shall be required
for any assignment in respect of the Revolving Credit Commitments.

               (iv) Assignment and Assumption. The parties to each assignment shall deliver to the
Administrative Agent (A) a duly executed Assignment and Assumption, (B) a processing and
recordation fee of $3,500, (C) an Administrative Questionnaire unless the assignee is already a
Lender and (D) the documents required under Section 2.21(e) if such assignee is a Foreign
Lender.

               (v) No Assignment to Borrower. No such assignment shall be made to the Borrower or
any of the Borrower’s Affiliates or Subsidiaries.

               (vi) No Assignment to Natural Persons. No such assignment shall be made to a natural
person.

     Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph
(c) of this Section 10.4, from and after the effective date specified in each Assignment
and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of
the interest assigned by such Assignment and Assumption, have the rights and obligations of a
Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but
shall continue to be entitled to the benefits of Sections 2.19, 2.20, 2.21
and 10.3 with respect to facts and circumstances occurring prior to the effective date of
such assignment. Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement
as a sale by such Lender of a participation in such rights and obligations in accordance with
paragraph (d) of this Section 10.4. If the consent of the Borrower to an assignment is
required hereunder (including a consent to an assignment which does not meet the minimum assignment
thresholds specified above), the Borrower shall be deemed to have given its consent five Business
Days after the date notice thereof has actually been delivered by the assigning Lender (through the
Administrative

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Agent) to the Borrower, unless such consent is expressly refused by the Borrower prior to such
fifth Business Day.

          (c) The Administrative Agent, acting solely for this purpose as an agent of the Borrower,
shall maintain at one of its offices in Atlanta, Georgia a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses of the Lenders, and
the Commitments of, and principal amount of the Loans and Revolving Credit Exposure owing to, each
Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the
Register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders may treat
each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register
shall be available for inspection by the Borrower and any Lender, at any reasonable time and from
time to time upon reasonable prior notice.

          (d) Any Lender may at any time, without the consent of, or notice to, the Borrower, the
Administrative Agent, the Swingline Lender or the Issuing Bank sell participations to any Person
(other than a natural person, the Borrower or any of the Borrower’s Affiliates or Subsidiaries)
(each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations
under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it);
provided that (i) such Lender’s obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto for the performance of
such obligations and (iii) the Borrower, the Administrative Agent, the Lenders, Issuing Bank and
Swingline Lender shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement.

          (e) Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver with respect to the following to the
extent affecting such Participant: (i) increase the Commitment of any Lender without the written
consent of such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement or reduce
the rate of interest thereon, or reduce any fees payable hereunder, without the written consent of
each Lender affected thereby, (iii) postpone the date fixed for any payment of any principal of, or
interest on, any Loan or LC Disbursement or interest thereon or any fees hereunder or reduce the
amount of, waive or excuse any such payment, or postpone the scheduled date for the termination or
reduction of any Commitment, without the written consent of each Lender affected thereby, (iv)
change Section 2.22(b) or (c) in a manner that would alter the pro rata sharing of
payments required thereby, without the written consent of each Lender, (v) change any of the
provisions of this Section 10.4 or the definition of “Required Lenders” or any other
provision hereof specifying the number or percentage of Lenders which are required to waive, amend
or modify any rights hereunder or make any determination or grant any consent hereunder, without
the consent of each Lender; (vi) release any guarantor (subject to the provisions of Section
9.8(a)) or limit the liability of any such guarantor under any guaranty agreement without the
written consent of each Lender except to the extent such release is expressly provided under the
terms of the Guaranty Agreement; or (vii) release all or substantially all collateral (if any)
securing any of the Obligations. Subject to paragraph (e) of

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this Section 10.4, the Borrower agrees that each Participant shall be entitled to the
benefits of Sections 2.19, 2.20, and 2.21 to the same extent as if it were
a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section
10.4. To the extent permitted by law, each Participant also shall be entitled to the benefits
of Section 10.7 as though it were a Lender, provided such Participant agrees to be subject
to Section 2.19 as though it were a Lender.

          (f) A Participant shall not be entitled to receive any greater payment under Section
2.19 and Section 2.21 than the applicable Lender would have been entitled to receive
with respect to the participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower’s prior written consent. A Participant that would be a
Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.21
unless the Borrower is notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 2.21(e) as though it were a
Lender.

          (g) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including without limitation
any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no
such pledge or assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

     Section 10.5. Governing Law; Jurisdiction; Consent to Service of Process.

          (a) This Agreement and the other Loan Documents shall be construed in accordance with and be
governed by the law (without giving effect to the conflict of law principles thereof) of the
Commonwealth of Virginia. EACH LOAN DOCUMENT (OTHER THAN AS OTHERWISE EXPRESSLY SET FORTH IN A
LOAN DOCUMENT) WILL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE LAWS OF THE
COMMONWEALTH OF VIRGINIA.

          (b) The Borrower hereby irrevocably and unconditionally submits, for itself and its property,
to the non-exclusive jurisdiction of the United States District Court of the Eastern District of
Virginia, Alexandria Division, and of any state court of the Commonwealth of Virginia sitting in
Fairfax County, Virginia, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to this Agreement or any other Loan Document or the transactions
contemplated hereby or thereby, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in such Virginia state court or, to the extent
permitted by applicable law, such Federal court. Each of the parties hereto agrees that a final
judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this
Agreement or any other Loan Document shall affect any right that the Administrative Agent, the
Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this
Agreement or any other Loan Document against the Borrower or its properties in the courts of any
jurisdiction.

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          (c) The Borrower irrevocably and unconditionally waives any objection which it may now or
hereafter have to the laying of venue of any such suit, action or proceeding described in paragraph
(b) of this Section 10.5 and brought in any court referred to in paragraph (b) of this
Section 10.5. Each of the parties hereto irrevocably waives, to the fullest extent
permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action
or proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents to the service of process in the manner
provided for notices in Section 10.1. Nothing in this Agreement or in any other Loan
Document will affect the right of any party hereto to serve process in any other manner permitted
by law.

     Section 10.6. WAIVER OF JURY TRIAL. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     Section 10.7. Right of Setoff.

          (a) In addition to any rights now or hereafter granted under applicable law and not by way of
limitation of any such rights, each Lender and the Issuing Bank and any Affiliate thereof shall
have the right, at any time or from time to time upon the occurrence and during the continuance of
an Event of Default, without prior notice to the Borrower, any such notice being expressly waived
by the Borrower to the extent permitted by applicable law, to set off and apply against all
deposits (general or special, time or demand, provisional or final) owned by the Borrower at any
time held or other obligations at any time owing by such Lender and the Issuing Bank or such
Affiliate to or for the credit or the account of the Borrower against any and all Obligations held
by such Lender or the Issuing Bank or such Affiliate, as the case may be, irrespective of whether
such Lender or the Issuing Bank or such Affiliate shall have made demand hereunder and although
such Obligations may be unmatured. The setoff rights provided in this Section 10.7 shall
not apply to funds held by or on behalf of the Borrower and its Subsidiaries in trust for other
persons, including, without limitation, funds received under the Title IV, HEA Programs that are
held in trust for the beneficiaries provided under 34 C.F.R. 668.161(b). Each Lender and the
Issuing Bank agree promptly to notify the Administrative Agent and the Borrower after any such
set-off and any application made by such Lender and the Issuing Bank or any Affiliate thereof, as
the case may be; provided, that the failure to give such notice shall not affect the
validity of such set-off and application.

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          (b) To the extent that any payment by or on behalf of any Loan Party is made to the
Administrative Agent, the Issuing Bank or any Lender, or the Administrative Agent, the Issuing Bank
or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any
part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or
required (including pursuant to any settlement entered into by the Administrative Agent, the
Issuing Bank or such Lender in its discretion) to be repaid to a trustee, receiver or any other
party, in connection with any proceeding under any bankruptcy, insolvency or similar debtor relief
laws or otherwise, then (i) to the extent of such recovery the obligation or part thereof
originally intended to be satisfied shall be revived and continued in full force and effect as if
such payment had not been made or such setoff had not occurred, and (ii) each Lender and the
Issuing Bank severally agrees to pay to the Administrative Agent upon demand its applicable share
(without duplication) of any amount so recovered from or repaid by the Administrative Agent, plus
interest thereon from the date of such demand to the date such payment is made at a rate per annum
equal to the Federal Funds Rate from time to time in effect. The obligations of the Lenders and
the Issuing Bank under clause (ii) of the preceding sentence shall survive the payment in full of
the Obligations and the termination of this Agreement.

     Section 10.8. Counterparts; Integration. This Agreement may be executed by one or
more of the parties to this Agreement on any number of separate counterparts (including by telecopy
or by email, in pdf format), and all of said counterparts taken together shall be deemed to
constitute one and the same instrument. This Agreement, the Fee Letter, the other Loan Documents,
and any separate letter agreement(s) relating to any fees payable to the Administrative Agent
constitute the entire agreement among the parties hereto and thereto regarding the subject matters
hereof and thereof and supersede all prior agreements and understandings, oral or written,
regarding such subject matters. Delivery of an executed counterpart of a signature page of this
Agreement and any other Loan Document by telecopy or by email, in pdf format, shall be effective as
delivery of a manually executed counterpart of this Agreement or such other Loan Document.

     Section 10.9. Survival. All covenants, agreements, representations and warranties
made by the Borrower herein, in the Loan Documents and in the certificates or other instruments
delivered in connection with or pursuant to this Agreement shall be considered to have been relied
upon by the other parties hereto and shall survive the execution and delivery of this Agreement and
the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made
by any such other party or on its behalf and notwithstanding that the Administrative Agent, the
Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect
representation or warranty at the time any credit is extended hereunder, and shall continue in full
force and effect as long as the principal of or any accrued interest on any Loan or any fee or any
other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is
outstanding and so long as the Commitments have not expired or terminated. The provisions of
Sections 2.19, 2.20, 2.21, and 10.3 and Article 9 shall
survive and remain in full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of
Credit and the Commitments or the termination of this Agreement or any provision hereof. All
representations and warranties made herein, in the Loan Documents, in the certificates, reports,
notices, and other documents delivered pursuant to this Agreement shall survive the execution and
delivery of

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this Agreement and the other Loan Documents, and the making of the Loans and the issuance of
the Letters of Credit.

     Section 10.10. Severability. Any provision of this Agreement or any other Loan
Document held to be illegal, invalid or unenforceable in any jurisdiction, shall, as to such
jurisdiction, be ineffective to the extent of such illegality, invalidity or unenforceability
without affecting the legality, validity or enforceability of the remaining provisions hereof or
thereof; and the illegality, invalidity or unenforceability of a particular provision in a
particular jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

     Section 10.11. Confidentiality. Each of the Administrative Agent, the Issuing Bank
and each Lender agrees to maintain the confidentiality of any information provided to it by the
Borrower or any Subsidiary, except that such information may be disclosed (i) to any Related Party
of the Administrative Agent, the Issuing Bank or any such Lender, including without limitation
accountants, legal counsel and other advisors, (ii) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (iii) to the extent requested by any
regulatory agency or authority, (iv) to the extent that such information becomes publicly available
other than as a result of a breach of this Section 10.11, or which becomes available to the
Administrative Agent, the Issuing Bank, any Lender or any Related Party of any of the foregoing on
a non-confidential basis from a source other than the Borrower, (v) in connection with the exercise
of any remedy hereunder or any suit, action or proceeding relating to this Agreement or the
enforcement of rights hereunder, (vi) subject to provisions substantially similar to this
Section 10.11, to any actual or prospective assignee or Participant or any actual or
prospective counterparty (or its advisors) to any swap or derivative transaction relating to a Loan
Party and its obligations or (vii) with the consent of the Borrower. Any Person required to
maintain the confidentiality of any information as provided for in this Section 10.11 shall
be considered to have complied with its obligation to do so if such Person has exercised the same
degree of care to maintain the confidentiality of such information as such Person would accord its
own confidential information.

     Section 10.12. Interest Rate Limitation. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges
and other amounts which may be treated as interest on such Loan under applicable law (collectively,
the “Charges”), shall exceed the maximum lawful rate of interest (the “Maximum
Rate”) which may be contracted for, charged, taken, received or reserved by a Lender holding
such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan
hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum
Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of
such Loan but were not payable as a result of the operation of this Section 10.12 shall be
cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods
shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Federal Funds Rate to the date of repayment, shall have been received
by such Lender.

     Section 10.13. Waiver of Effect of Corporate Seal. The Borrower represents and
warrants that neither it nor any other Loan Party is required to affix its corporate seal to this
Agreement or any other Loan Document pursuant to any requirement of law or regulation, agrees

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that this Agreement is delivered by Borrower under seal and waives any shortening of the
statute of limitations that may result from not affixing the corporate seal to this Agreement or
such other Loan Documents.

     Section 10.14. Patriot Act. The Administrative Agent and each Lender hereby notifies
the Loan Parties that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is required to obtain, verify
and record information that identifies each Loan Party, which information includes the name and
address of such Loan Party and other information that will allow such Lender or the Administrative
Agent, as applicable, to identify such Loan Party in accordance with the Patriot Act. Each Loan
Party shall, and shall cause each of its Subsidiaries to, provide to the extent commercially
reasonable, such information and take such other actions as are reasonably requested by the
Administrative Agent or any Lender in order to assist the Administrative Agent and the Lenders in
maintaining compliance with the Patriot Act.

     Section 10.15. Publicity. With the prior written consent of the Borrower, the
Administrative Agent or any Lender may publish customary advertising material relating to the
transactions contemplated by this Agreement and the Loan Documents using the Borrower’s name, logos
or trademarks.

(remainder of page left intentionally blank)

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	BORROWER:

STRAYER EDUCATION, INC., a Maryland 

corporation

 	 
	 	By:  	 	 
	 	Name: 	 	 
	 	Title: 	 	 
	 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

[SIGNATURE PAGE TO AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT]

 

 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT:

SUNTRUST BANK

as Administrative Agent, as Issuing Bank and as

Swingline Lender

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

[SIGNATURE PAGE TO AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT]

 

 

	 	 	 	 	 
	 	LENDERS:

SUNTRUST BANK

as Lender

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

[SIGNATURE PAGE TO AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT]

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

as Lender

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

[SIGNATURE PAGE TO AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT]

 

 

	 	 	 	 	 
	 	KEYBANK, N.A.

as Lender

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

[SIGNATURE PAGE TO AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT]

 

 

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION

as Lender

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

[SIGNATURE PAGE TO AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT]

 

 

	 	 	 	 	 
	 	BRANCH BANKING AND TRUST COMPANY

as Lender

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

[SIGNATURE PAGE TO AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT]

 

 

	 	 	 	 	 
	 	SOVEREIGN BANK

as Lender

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

[SIGNATURE PAGE TO AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT]

 

 

	 	 	 	 	 
	 	TD BANK, N.A.

as Lender

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

[SIGNATURE PAGE TO AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT]

 

 

	 	 	 	 	 
	 	STELLARONE BANK

as Lender

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[SIGNATURE PAGE TO AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT]

 

 

Schedule I

APPLICABLE MARGIN FOR THE LOANS AND 

APPLICABLE PERCENTAGE

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Applicable Margin	 	 	 	 
	 	 	 	 	for Eurodollar Loans	 	Applicable	 	Applicable
	Pricing	 	 	 	and Index Rate	 	Margin for Base	 	Percentage for
	Level	 	Leverage Ratio	 	Loans	 	Rate Loans	 	Commitment Fee
	I	 	Less than 1.00:1
	 	2.250% per annum	 	2.250% per annum	 	0.300% per annum
	II	 	Greater than or equal to 1.00:1.00 but less than 1.50:1.00
	 	2.500% per annum	 	2.500% per annum	 	0.350% per annum
	III	 	Greater than or equal to 1.50:1.00
	 	2.750% per annum	 	2.750% per annum	 	0.400% per annum

Schedule I

 

 

Schedule II

COMMITMENT AMOUNTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Term Loan Commitment	 
	Lender	 	Revolving Commitment Amount	 	 	Amount	 
	SunTrust Bank
	 	$	22,500,000	 	 	$	22,500,000	 
	Bank of America, N.A.
	 	$	22,500,000	 	 	$	22,500,000	 
	KeyBank, N.A.
	 	$	12,250,000	 	 	$	12,250,000	 
	PNC Bank, National Association
	 	$	12,250,000	 	 	$	12,250,000	 
	Branch Banking and Trust Company
	 	$	8,500,000	 	 	$	8,500,000	 
	Sovereign Bank
	 	$	8,500,000	 	 	$	8,500,000	 
	TD Bank, N.A.
	 	$	8,500,000	 	 	$	8,500,000	 
	StellarOne Bank
	 	$	5,000,000	 	 	$	5,000,000	 
	 
	 	 	 	 	 	 
	Total
	 	$	100,000,000	 	 	$	100,000,000	 
	 
	 	 	 	 	 	 

Schedule II

 

 

SCHEDULE 2.23

EXISTING LETTERS OF CREDIT

None.

Schedule 2.23

 

 

SCHEDULE 4.5

ENVIRONMENTAL MATTERS

None.

Schedule 4.5

 

 

SCHEDULE 4.14

SUBSIDIARIES

	 	 	 	 	 	 	 
	 	 	Jurisdiction of	 	Type of	 	 
	Name of Subsidiary	 	Organization	 	Organization	 	Ownership
	Strayer University, Inc.*

	 	MD
	 	Corporation
	 	100% of the equity interest held by Strayer Education, Inc.
	Education Loan Processing, Inc.*

	 	VA
	 	Corporation
	 	100% of the equity interest held by Strayer Education, Inc.
	Professional Education, Inc.

	 	MD
	 	Corporation
	 	100% of the equity interest held by Strayer Education, Inc.

 

Note: Asterisk (“*”) indicates each Subsidiary that is a Subsidiary Loan Party.

Schedule 4.14

 

 

SCHEDULE 4.19

REAL PROPERTY

Owned Real Property:

See attachment.

Leased Real Property:

See attachment.

Schedule 4.19

 

 

SCHEDULE 7.1

OUTSTANDING INDEBTEDNESS

None.

Schedule 7.1

 

 

SCHEDULE 7.2

EXISTING LIENS

None.

Schedule 7.2

 

 

SCHEDULE 7.4

EXISTING INVESTMENTS

See Schedule 4.14.

Schedule 7.4

 

 

REVOLVING CREDIT NOTE

	 	 	 

	[$___________]

	 	Arlington, Virginia
	 

	 	April 4, 2011

     FOR VALUE RECEIVED, the undersigned, STRAYER EDUCATION, INC., a Maryland corporation (the
“Borrower”), hereby promises to pay to
[name of Lender] (the “Lender”) or its registered assigns,
at the Payment Office (as defined in the Amended and Restated Revolving Credit and Term Loan
Agreement, dated as of April 4, 2011, among the Borrower, the Lenders from time to time party
thereto and SunTrust Bank, as Administrative Agent for the Lenders, as Issuing Bank and as
Swingline Lender, as the same may be amended, supplemented or otherwise modified from time to time,
the “Credit Agreement”; capitalized terms used herein and not otherwise defined shall have the
meanings given to such terms in the Credit Agreement) on the Revolving Commitment Termination Date,
the lesser of the principal sum of [amount of such Lender’s Revolving Commitment] or the aggregate
unpaid principal amount of all Revolving Loans made by the Lender to the Borrower pursuant to the
Credit Agreement, in lawful money of the United States of America in immediately available funds,
and to pay interest from the date hereof on the principal amount thereof from time to time
outstanding, in like funds, at said office, at the rate or rates per annum and payable on such
dates as provided in the Credit Agreement. In addition, should legal action or an attorney-at-law
be utilized to collect any amount due hereunder, the Borrower further promises to pay the
documented, out-of-pocket costs of collection of the Lender, in accordance with Section 10.3 of the
Credit Agreement.

     The Borrower promises to pay interest, on demand, on any overdue principal and, to the extent
permitted by law, overdue interest from their due dates at a rate or rates provided in the Credit
Agreement.

     All borrowings evidenced by this Revolving Credit Note and all payments and prepayments of the
principal hereof and the date thereof shall be endorsed by the holder hereof on the schedule
attached hereto and made a part hereof or on a continuation thereof which shall be attached hereto
and made a part hereof, or otherwise recorded by such holder in its internal records;
provided, that the failure of the holder hereof to make such a notation or any error in
such notation shall not affect the obligations of the Borrower to make the payments of principal
and interest in accordance with the terms of this Revolving Credit Note and the Credit Agreement.

     This Revolving Credit Note is issued in connection with, and is entitled to the benefits of,
the Credit Agreement which, among other things, contains provisions for the acceleration of the
maturity hereof upon the happening of certain events, for prepayment of the principal hereof prior
to the maturity hereof and for the amendment or waiver of certain provisions of the Credit
Agreement, all upon the terms and conditions therein specified. THIS REVOLVING CREDIT NOTE SHALL
BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS (WITHOUT GIVING EFFECT TO THE CONFLICT OF
LAW PRINCIPLES

 

 

THEREOF) OF THE COMMONWEALTH OF VIRGINIA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

[SIGNATURE ON FOLLOWING PAGE]

 

 

     IN WITNESS WHEREOF, the Borrower has caused this Revolving Credit Note to be signed by its
duly authorized representative all as of the day and year first above written.

	 	 	 	 	 	 	 

	 	 	STRAYER EDUCATION, INC., a	 	 
	 	 	Maryland corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

Signature Page to Revolving Credit Note

 

 

TERM NOTE

	 	 	 

	[$__________]

	 	Arlington, Virginia
	 

	 	April 4, 2011

     FOR VALUE RECEIVED, the undersigned, STRAYER EDUCATION, INC., a Maryland corporation (the
“Borrower”), hereby promises to pay to
[Insert name of Lender] (the “Lender”) or its registered
assigns, at the Payment Office, (i) on the Term Loan Maturity Date, as defined in the Amended and
Restated Revolving Credit and Term Loan Agreement dated as of April 4, 2011 (as the same may be
amended, supplemented or otherwise modified from time to time, the
“Credit Agreement”; capitalized
terms used herein but not otherwise defined shall have the meanings given to such terms in the
Credit Agreement), among the Borrower, the Lenders from time to time party thereto, and SunTrust
Bank, as Administrative Agent for the Lenders, as Issuing Bank and as Swingline Lender, the
aggregate unpaid principal amount of the Term Loan made by the Lender to the Borrower pursuant to
the Credit Agreement, and (ii) on each date specified in the Credit Agreement prior to the Term
Loan Maturity Date, the principal amount of the Term Loan made to the Borrower by the Lender
pursuant to the Credit Agreement and evidenced by this Note and payable to the Lender on such date
as specified therein, in each case in lawful money of the United States of America in immediately
available funds, and to pay interest from the date hereof on the principal amount thereof from time
to time outstanding, in like funds, at said office, at the rate or rates per annum and payable on
such dates as provided in the Credit Agreement. In addition, should legal action or an
attorney-at-law be utilized to collect any amount due hereunder, the Borrower further promises to
pay the documented, out-of-pocket costs of collection of the Lender, in accordance with Section
10.3 of the Credit Agreement.

     The Borrower promises to pay interest, on demand, on any overdue principal and, to the extent
permitted by law, overdue interest from their due dates at a rate or rates provided in the Credit
Agreement.

     All borrowings evidenced by this Term Note and all payments and prepayments of the principal
hereof and the date thereof shall be endorsed by the holder hereof on the schedule attached hereto
and made a part hereof or on a continuation thereof which shall be attached hereto and made a part
hereof, or otherwise recorded by such holder in its internal records; provided, that the
failure of the holder hereof to make such a notation or any error in such notation shall not affect
the obligations of the Borrower to make the payments of principal and interest in accordance with
the terms of this Term Note and the Credit Agreement.

     This Term Note is issued in connection with, and is entitled to the benefits of, the Credit
Agreement which, among other things, contains provisions for the acceleration of the maturity
hereof upon the happening of certain events, for prepayment of the principal hereof prior to the
maturity hereof and for the amendment or waiver of certain provisions of the Credit Agreement, all
upon the terms and conditions therein specified. THIS TERM NOTE SHALL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAWS OF THE COMMONWEALTH OF VIRGINIA AND ANY APPLICABLE LAWS OF THE UNITED
STATES OF AMERICA.

 

 

     IN WITNESS WHEREOF, the Borrower has caused this Term Note to be signed by its duly authorized
representative all as of the day and year first above written.

	 	 	 	 	 	 	 

	 	 	STRAYER EDUCATION, INC., a	 	 
	 	 	Maryland corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Signature Page to Term Note

 

 

AMENDED AND RESTATED SWINGLINE NOTE

	 	 	 

	$10,000,000

	 	Arlington, Virginia
	 

	 	April 4, 2011

     FOR VALUE RECEIVED, the undersigned, STRAYER EDUCATION, INC., a Maryland corporation (the
“Borrower”), hereby promises to pay to SUNTRUST
BANK, a Georgia banking corporation (the “Swingline
Lender”) or its registered assigns, at the Payment Office (as defined in the Amended and Restated
Revolving Credit and Term Loan Agreement, dated as of April 4, 2011, among the Borrower, the
Lenders from time to time party thereto and SunTrust Bank, as Administrative Agent for the Lenders,
as Issuing Bank and as Swingline Lender, as the same may be amended, supplemented or otherwise
modified from time to time, the “Credit
Agreement”; capitalized terms used herein and not otherwise
defined shall have the meanings given to such terms in the Credit Agreement), on the Revolving
Commitment Termination Date, the lesser of the principal sum of TEN MILLION DOLLARS AND NO/100
($10,000,000) or the aggregate unpaid principal amount of all Swingline Loans made by the Swingline
Lender to the Borrower pursuant to the Credit Agreement, in lawful money of the United States of
America in immediately available funds, and to pay interest from the date hereof on the principal
amount thereof from time to time outstanding, in like funds, at said office, at the rate or rates
per annum and payable on such dates as provided in the Credit Agreement. In addition, should legal
action or an attorney-at-law be utilized to collect any amount due hereunder, the Borrower further
promises to pay the documented, out-of-pocket costs of collection of the Lender, in accordance with
Section 10.3 of the Credit Agreement.

     The Borrower promises to pay interest, on demand, on any overdue principal and, to the extent
permitted by law, overdue interest from their due dates at a rate or rates provided in the Credit
Agreement.

     All borrowings evidenced by this Amended and Restated Swingline Note and all payments and
prepayments of the principal hereof and the date thereof shall be endorsed by the holder hereof on
the schedule attached hereto and made a part hereof or on a continuation thereof which shall be
attached hereto and made a part hereof, or otherwise recorded by such holder in its internal
records; provided, that the failure of the holder hereof to make such a notation or any
error in such notation shall not affect the obligations of the Borrower to make the payments of
principal and interest in accordance with the terms of this Amended and Restated Swingline Note and
the Credit Agreement.

     This Amended and Restated Swingline Note is issued in connection with, and is entitled to the
benefits of, the Credit Agreement which, among other things, contains provisions for the
acceleration of the maturity hereof upon the happening of certain events, for optional and
mandatory prepayment of the principal hereof prior to the maturity hereof and for the amendment or
waiver of certain provisions of the Credit Agreement, all upon the terms and conditions therein
specified. THIS AMENDED AND RESTATED SWINGLINE NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF) OF

 

 

THE COMMONWEALTH OF VIRGINIA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

     This Amended and Restated Swingline Note amends and restates in its entirety that certain
Swingline Note, dated as of January 3, 2011, made by the Borrower and payable to the Lender, in the
maximum principal amount of $10,000,000.

[SIGNATURE ON FOLLOWING PAGE]

 

 

     IN WITNESS WHEREOF, the Borrower has caused this Amended and Restated Swingline Note to be
signed by its duly authorized representative all as of the day and year first above written.

	 	 	 	 	 	 	 

	 	 	STRAYER EDUCATION, INC., a	 	 
	 	 	Maryland corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

Signature Page to Amended and Restated Swingline Note

 

 

FORM OF ASSIGNMENT AND ASSUMPTION

     This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the
“Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used
but not defined herein shall have the meanings given to them in the Credit Agreement identified
below (as amended, the “Credit Agreement”), receipt of a copy of which is hereby
acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached
hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment
and Assumption as if set forth herein in full.

     For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s
rights and obligations in its capacity as a Lender under the Credit Agreement and any other
documents or instruments delivered pursuant thereto to the extent related to the amount and
percentage interest identified below of all of such outstanding rights and obligations of the
Assignor under the respective facilities identified below (including any letters of credit,
guarantees, and Swingline loans included in such facilities) and (ii) to the extent permitted to be
assigned under applicable law, all claims, suits, causes of action and any other right of the
Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under
or in connection with the Credit Agreement, any other documents or instruments delivered pursuant
thereto or the loan transactions governed thereby or in any way based on or related to any of the
foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all
other claims at law or in equity related to the rights and obligations sold and assigned pursuant
to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii)
above being referred to herein collectively as the “Assigned Interest”). Such sale and
assignment is without recourse to the Assignor and, except as expressly provided in this Assignment
and Assumption, without representation or warranty by the Assignor.

	 	 	 	 
	 	 	 	 
	1. Assignor:

	 	 
 	 
	 
	 	 	 
	2. Assignee:

	 	 
 [and
is an Affiliate/Approved Fund of [identify Lender]1]	 
	 
	 	 	 
	3. Borrower:

	 	Strayer Education, Inc.	 
	 
	 	 	 
	4. Administrative Agent:

	 	SunTrust Bank, as the
administrative agent under the Credit Agreement

 

			
	1	 	Select as applicable.

 

 

	 	 	 

	5. Credit Agreement:

	 	Amended and Restated Revolving
Credit and Term Loan
 Agreement
dated as of April 4, 2011, among
Strayer Education,

 Inc., a
Maryland corporation, the Lender
parties thereto, and 

SunTrust
Bank, as Administrative Agent,
Issuing Bank and 

Swingline
Lender.
	 
	 	 
	6. Assigned Interest:
	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate Amount	 	 	 	 	 	 	 
	 	 	of	 	 	 	 	 	 	 
	 	 	Commitment/Loans	 	 	Amount of Commitment/	 	 	Percentage Assigned of	 
	Type of Loan	 	for all Lenders	 	 	Loans Assigned	 	 	Commitment/Loans2	 
	1)
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	 	 	 	 	 	 	 	 
	2)
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	 	 	 	 	 	 	 	 
	3)
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	 	 	 	 	 	 	 	 

Effective Date: _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL
BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 	 	 

	 	 	ASSIGNOR	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Title:
	 	 
	 
	 	 	 	 	 	 
	 	 	ASSIGNEE	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNEE]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Title:
	 	 

 

			
	2	 	Set forth, so at least 9 decimals, as a percentage
of the Commitment/Loans of all Lenders thereunder.

 

 

	 	 	 	 	 

	[Consented to and]3 Accepted:	 	 
	 
	 	 	 	 
	SUNTRUST BANK, as Administrative Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Title:
	 	 
	 
	 	 	 	 
	[Consented to:]4	 	 
	 
	 	 	 	 
	STRAYER EDUCATION, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Title:
	 	 

 

			
	3	 	To be added only if the consent of the
Administrative Agent is required by the terms of the Credit Agreement.
	 
	4	 	To be added only if the consent of the Borrower is
required by the terms of the Credit Agreement.

 

 

ANNEX 1

STRAYER EDUCATION, INC. CREDIT AGREEMENT

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

     1. Representations and Warranties.

     1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Credit Agreement or any
other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial
condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in
respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its
Domestic Subsidiaries or Affiliates or any other Person of any of their respective obligations
under any Loan Document.

     1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement
that are required to be satisfied by it in order to acquire the Assigned Interest and become a
Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit
Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together
with copies of the most recent financial statements delivered pursuant to Section 5.1(a) and (b)
thereof, as applicable, and such other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into this Assignment and Assumption and to
purchase the Assigned Interest on the basis of which it has made such analysis and decision
independently and without reliance on the Administrative Agent, the Assignor or any other Lender,
and (v) if it is a Foreign Lender, attached to the Assignment and Assumption is any documentation
required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and
executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on
the Administrative Agent, the Assignor or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with
their terms all of the obligations which by the terms of the Loan Documents are required to be
performed by it as a Lender.

     2. Payments. From and after the Effective Date, the Administrative Agent shall make
all payments in respect of the Assigned Interest (including payments of principal, interest,

 

 

fees and other amounts) to the Assignor for amounts which have accrued to but excluding the
Effective Date and to the Assignee for amounts which have accrued from and after the Effective
Date.

     3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This
Assignment and Assumption may be executed in any number of counterparts, which together shall
constitute one instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a manually executed
counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the Commonwealth of Virginia.

 

 

AMENDED AND RESTATED SUBSIDIARY GUARANTY AGREEMENT

     THIS AMENDED AND RESTATED SUBSIDIARY GUARANTY AGREEMENT dated as of April 4, 2011, among each
of the Subsidiaries listed on Schedule I hereto (each such Subsidiary individually, a
“Guarantor,” and collectively, the “Guarantors”) of STRAYER EDUCATION, INC., a
Maryland corporation (the “Borrower”) and SUNTRUST BANK, a Georgia banking corporation, as
administrative agent (the “Administrative Agent”) for the Lenders (as defined in the Credit
Agreement referred to below).

     Reference is made to the Amended and Restated Revolving Credit and Term Loan Agreement dated
as of April 4, 2011 (as amended, supplemented or otherwise modified from time to time, the
“Credit Agreement”), among the Borrower, the lenders from time to time party thereto (the
“Lenders”) and SunTrust Bank, as Administrative Agent, as Issuing Bank and as Swingline
Lender. Capitalized terms used herein and not defined herein shall have the meanings assigned to
such terms in the Credit Agreement.

     The Lenders have agreed to make Loans to the Borrower, and the Issuing Bank has agreed to
issue Letters of Credit for the account of the Borrower, pursuant to, and upon the terms and
subject to the conditions specified in, the Credit Agreement. Each of the Guarantors is a Domestic
Subsidiary of the Borrower and acknowledges that it will derive substantial benefit from the making
of the Loans by the Lenders, and the issuance of the Letters of Credit by the Issuing Bank. The
obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit are
conditioned on, among other things, the execution and delivery by the Guarantors of a Subsidiary
Guaranty Agreement in the form hereof. As consideration therefor and in order to induce the
Lenders to make Loans and the Issuing Bank to issue Letters of Credit, the Guarantors are willing
to execute this Amended and Restated Subsidiary Guaranty Agreement (as amended, modified or
supplemented from time to time, this “Agreement”).

     Accordingly, the parties hereto agree as follows:

     Section 1. Guarantee. Each Guarantor unconditionally guarantees, jointly with the
other Guarantors and severally, as a primary obligor and not merely as a surety, (i) the due and
punctual payment of all Obligations, including without limitation, (A) the principal of and
premium, if any, and interest (including interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in
such proceeding) on the Loans, when and as due, whether at maturity, by acceleration, upon one or
more dates set for prepayment or otherwise, (B) each payment required to be made by the Borrower
under the Credit Agreement in respect of any Letter of Credit, when and as due, including payments
in respect of reimbursement or disbursements, interest thereon and obligations to provide cash
collateral, and (C) all other monetary obligations, including reasonable, documented, out-of-pocket
fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or
otherwise (including monetary obligations incurred during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding), of the Loan Parties to the Administrative
Agent and the Lenders under the Credit Agreement and the

1

 

other Loan Documents; (ii) the due and punctual performance of all covenants, agreements,
obligations and liabilities of the Loan Parties under or pursuant to the Credit Agreement and the
other Loan Documents; (iii) the due and punctual payment and performance of all Hedging Obligations
of any Loan Party entered into with a counterparty that is a Lender or an Affiliate of a Lender
or was a Lender or an Affiliate of a Lender at the time the applicable Hedging
Transaction was entered into (each such person, a “Specified Hedge Provider”); and (iv) the
due and punctual payment and performance of all Treasury Management Obligations entered into with a
counterparty that is a Lender or an Affiliate of a Lender or was a Lender or an Affiliate of a
Lender at the time such Treasury Management Obligation was entered into (each such person, a
“Specified Treasury Management Provider”; the Administrative Agent, the Lenders, the
Issuing Bank, each Specified Hedge Provider, and each Specified Treasury Management Provider,
collectively, the “Guaranteed Parties,” and each individually a “Guaranteed Party”)
(all the monetary and other obligations referred to in the preceding clauses (i) through (iv) being
collectively called the “Guaranteed Obligations”). Each Guarantor further agrees that the
Guaranteed Obligations may be extended or renewed, in whole or in part, without notice to or
further assent from such Guarantor, and that such Guarantor will remain bound upon its guarantee
notwithstanding any extension or renewal of any Guaranteed Obligations.

     Section 2. Obligations Not Waived. To the fullest extent permitted by applicable
law, each Guarantor waives presentment or protest to, demand of or payment from the other Loan
Parties of any of the Guaranteed Obligations, and also waives notice of acceptance of its guarantee
and notice of protest for nonpayment. To the fullest extent permitted by applicable law, the
obligations of each Guarantor hereunder shall not be affected by (i) the failure of the
Administrative Agent or any Lender to assert any claim or demand or to enforce or exercise any
right or remedy against the Borrower or any other Guarantor under the provisions of the Credit
Agreement, any other Loan Document or otherwise, (ii) the failure of any Guaranteed Party to assert
any claim or demand or to enforce or exercise any right or remedy against the Borrower or any other
Guarantor under the provisions of any instruments, agreements or documents executed in connection
with any Hedging Transaction incurred to limit interest rate or fee fluctuation with respect to the
Loans and Letters of Credit entered into with a Specified Hedge Provider (each such document, a
“Hedging Document”), (iii) the failure of any Guaranteed Party to assert any claim or
demand or to enforce or exercise any right or remedy against the Borrower or any other Guarantor
under the provisions of any instruments, agreements or documents executed in connection with a
Treasury Management Obligation entered into with a Specified Treasury Management Provider (each
such document, a “Treasury Document”), (iv) any rescission, waiver, amendment or
modification of, or any release from any of the terms or provisions of, this Agreement, any other
Loan Document, Hedging Document, Treasury Document or any guarantee or any other agreement,
including with respect to any other Guarantor under this Agreement, or (v) the failure to perfect
any security interest in, or the release of, any of the security held by or on behalf of the
Administrative Agent or any Lender.

     Section 3. Security. Each of the Guarantors authorizes the Administrative Agent and
each of the Lenders to (a) take and hold security for payment of this Guaranty and the Guaranteed
Obligations and exchange, enforce, waive and release any such security, (b) upon the occurrence and
during the continuance of an Event of Default, apply such security and direct the

2

 

order or manner of sale thereof as they in their reasonable discretion may determine and (c)
release or substitute any one or more endorsees, other guarantors or other obligors.

     Section 4. Guaranty of Payment. Each Guarantor further agrees that its guaranty
constitutes a guaranty of payment when due and not of collection, and waives any right to require
that any resort be had by the Administrative Agent or any Guaranteed Party to any of the security
held for payment of the Guaranteed Obligations or to any balance of any deposit account or credit
on the books of the Administrative Agent or any Guaranteed Party in favor of the Borrower or any
other Person.

     Section 5. No Discharge or Diminishment of Guaranty. The obligations of each
Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination
for any reason (other than the indefeasible payment in full in cash of the Guaranteed Obligations
or pursuant to Section 13 hereof), including any claim of waiver, release, surrender, alteration or
compromise of any of the Guaranteed Obligations, and shall not be subject to any defense or setoff,
counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or
unenforceability of the Guaranteed Obligations or otherwise. Without limiting the generality of
the foregoing, the obligations of each Guarantor hereunder shall not be discharged or impaired or
otherwise affected by the failure of the Administrative Agent or any Guaranteed Party to assert any
claim or demand or to enforce any remedy under the Credit Agreement except to the extent otherwise
provided by applicable law, any other Loan Document, Hedging Document, Treasury Document or any
other agreement, by any waiver or modification of any provision of any thereof, by any default,
failure or delay, willful or otherwise, in the performance of the Guaranteed Obligations, or by any
other act or omission that may or might in any manner or to the extent vary the risk of any
Guarantor or that would otherwise operate as a discharge of each Guarantor as a matter of law or
equity (other than the indefeasible payment in full in cash of all the Obligations or pursuant to
Section 13 hereof).

     Section 6. Defenses of Borrower Waived. To the fullest extent permitted by
applicable law, each Guarantor waives any defense based on or arising out of any defense of any
Loan Party or the unenforceability of the Guaranteed Obligations or any part thereof from any
cause, or the cessation from any cause of the liability of any Loan Party, other than the
indefeasible payment in full in cash of the Guaranteed Obligations. The Administrative Agent and
the Guaranteed Parties may, at their election, foreclose on any security held by one or more of
them by one or more judicial or nonjudicial sales, accept an assignment of any such security in
lieu of foreclosure, compromise or adjust any part of the Guaranteed Obligations, make any other
accommodation with any other Loan Party or any other guarantor, without affecting or impairing in
any way the liability of any Guarantor hereunder except to the extent the Guaranteed Obligations
have been fully, finally and indefeasibly paid in cash. Pursuant to applicable law, each Guarantor
waives any defense arising out of any such election even though such election operates, pursuant to
applicable law, to impair or to extinguish any right of reimbursement or subrogation or other right
or remedy of such Guarantor against the Borrower or any other Guarantor or guarantor, as the case
may be, or any security. Each Guarantor hereby waives all rights afforded such Guarantor under
Sections 49-25 and 49-26 of the Code of Virginia (1950), as amended.

3

 

     Section 7. Agreement to Pay; Subordination. In furtherance of the foregoing and not
in limitation of any other right that the Administrative Agent or any Guaranteed Party has at law
or in equity against any Guarantor by virtue hereof, upon the failure of the Borrower or any other
Loan Party to pay any Obligation when and as the same shall become due, whether at maturity, by
acceleration, after notice of prepayment or otherwise, each Guarantor hereby promises to and will
forthwith pay, or cause to be paid, to the Administrative Agent for the benefit of the Guaranteed
Parties in cash the amount of such unpaid and overdue Obligation. Upon payment by any Guarantor of
any sums to the Administrative Agent, all rights of such Guarantor against any Loan Party arising
as a result thereof by way of right of subrogation, contribution, reimbursement, indemnity or
otherwise shall in all respects be subordinate and junior in right of payment to the prior
indefeasible payment in full in cash of all the Guaranteed Obligations. In addition, any
indebtedness of any Loan Party now or hereafter held by any Guarantor is hereby subordinated in
right of payment to the prior payment in full in cash of the Guaranteed Obligations; provided,
however, that so long as no Event of Default shall exist, any Guarantor may seek, accept and retain
payments by any other Loan Party of principal and interest in connection with such indebtedness.
If any amount shall erroneously be paid to any Guarantor on account of (i) such subrogation,
contribution, reimbursement, indemnity or similar right or (ii) any such indebtedness of any Loan
Party, such amount shall be held in trust for the benefit of the Administrative Agent and the
Guaranteed Parties and shall forthwith be paid to the Administrative Agent to be credited against
the payment of the Guaranteed Obligations, whether matured or unmatured, in accordance with the
terms of the Loan Documents.

     Section 8. Information. Each Guarantor assumes all responsibility for being and
keeping itself informed of other Loan Parties’ financial condition and assets, and of all other
circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature,
scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that
none of the Administrative Agent or the Guaranteed Parties will have any duty to advise any of the
Guarantors of information known to it or any of them regarding such circumstances or risks.

     Section 9. Indemnity and Subrogation. In addition to all such rights of indemnity
and subrogation as the Guarantors may have under applicable law (but subject to Section 7),
the Borrower agrees that (a) in the event a payment shall be made by any Guarantor under this
Agreement, the Borrower shall indemnify such Guarantor for the full amount of such payment and such
Guarantor shall be subrogated to the rights of the person to whom such payment shall have been made
to the extent of such payment and (b) in the event any assets of any Guarantor shall be sold to
satisfy a claim of any Guaranteed Party under this Agreement, the Borrower shall indemnify such
Guarantor in an amount equal to the greater of the book value or the fair market value of the
assets so sold.

     Section 10. Contribution and Subrogation. Each Guarantor (a “Contributing
Guarantor”) agrees (subject to Section 7) that, in the event a payment shall be made by
any other Guarantor under this Agreement or assets of any other Guarantor shall be sold to satisfy
a claim of any Guaranteed Party and such other Guarantor (the “Claiming Guarantor”) shall
not have been fully indemnified by the Borrower as provided in Section 9, the Contributing
Guarantor shall indemnify the Claiming Guarantor in an amount equal to the amount of such payment
or

4

 

the greater of the book value or the fair market value of such assets, as the case may be, in
each case multiplied by a fraction of which the numerator shall be the net worth of the
Contributing Guarantor on the date hereof and the denominator shall be the aggregate net worth of
all the Guarantors on the date hereof (or, in the case of any Guarantor becoming a party hereto
pursuant to Section 23, the date of the Supplement hereto executed and delivered by such
Guarantor). Any Contributing Guarantor making any payment to a Claiming Guarantor pursuant to this
Section 10 shall be subrogated to the rights of such Claiming Guarantor under Section
9 to the extent of such payment.

     Section 11. Subordination. Notwithstanding any provision of this Agreement to the
contrary, all rights of the Guarantors under Section 9 and Section 10 and all other
rights of indemnity, contribution or subrogation under applicable law or otherwise shall be fully
subordinated to the indefeasible payment in full in cash of the Guaranteed Obligations. No failure
on the part of the Borrower or any Guarantor to make the payments required under applicable law or
otherwise shall in any respect limit the obligations and liabilities of any Guarantor with respect
to its obligations hereunder, and each Guarantor shall remain liable for the full amount of the
obligations of such Guarantor hereunder.

     Section 12. Representations and Warranties. Each Guarantor represents and warrants
as to itself that all representations and warranties relating to it (as a Subsidiary of the
Borrower) contained in the Credit Agreement are true and correct.

     Section 13. Termination. The guarantees made hereunder (i) shall terminate without
the necessity of any further action by any party hereto when all the Guaranteed Obligations (other
than those Guaranteed Obligations relating to the Hedging Obligations or the Treasury Management
Obligations and those indemnities and other similar contingent obligations for which no claim has
been made and which are unknown and not calculable at the time of termination) have been paid in
full in cash and the Guaranteed Parties have no further commitment to lend under the Credit
Agreement, the LC Exposure has been reduced to zero and the Issuing Bank has no further obligation
to issue Letters of Credit under the Credit Agreement and (ii) shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part thereof, of any Obligation is
rescinded or must otherwise be restored by any Lender or any Guarantor upon the bankruptcy or
reorganization of the Borrower, any Guarantor or otherwise. Furthermore, upon release of any
Guarantor in accordance with Section 9.8(a) of the Credit Agreement, such Guarantor shall be
released automatically from its obligations under this Agreement without the necessity of any
further action by any party hereto. In connection with the foregoing, the Administrative Agent
shall execute and deliver to such Guarantor or Guarantor’s designee, at such Guarantor’s expense,
any documents or instruments which such Guarantor shall reasonably request from time to time to
evidence such termination and release.

     Section 14. Binding Effect; Several Agreement; Assignments. Whenever in this
Agreement any of the parties hereto is referred to, such reference shall be deemed to include the
successors and assigns of such party; and all covenants, promises and agreements by or on behalf of
the Guarantors that are contained in this Agreement shall bind and inure to the benefit of each
party hereto and their respective permitted successors and assigns. This Agreement shall become
effective as to any Guarantor when a counterpart hereof executed on behalf of such Guarantor shall
have been delivered to the Administrative Agent, and a counterpart hereof shall have been

5

 

executed on behalf of the Administrative Agent, and thereafter shall be binding upon such
Guarantor and the Administrative Agent and their respective successors and assigns, and shall inure
to the benefit of such Guarantor, the Administrative Agent and the Guaranteed Parties, and their
respective permitted successors and assigns, except that no Guarantor shall have the right to
assign its rights or obligations hereunder or any interest herein (and any such attempted
assignment shall be void). This Agreement shall be construed as a separate agreement with respect
to each Guarantor and may be amended, modified, supplemented, waived or released with respect to
any Guarantor without the approval of any other Guarantor and without affecting the obligations of
any other Guarantor hereunder.

     Section 15. Waivers; Amendment.

     (a) No failure or delay of the Administrative Agent of any kind in exercising any power, right
or remedy hereunder and no course of dealing between any Guarantor on the one hand and the
Administrative Agent or any holder of any Note on the other hand shall operate as a waiver thereof,
nor shall any single or partial exercise of any such power, right or remedy hereunder, or under any
Loan Document, Hedging Document, or Treasury Document, or any abandonment or discontinuance of
steps to enforce such a power, right or remedy, preclude any other or further exercise thereof or
the exercise of any other power, right or remedy. The rights of the Administrative Agent hereunder
and of the Guaranteed Parties under the other Loan Documents, the Hedging Documents and the
Treasury Document, as applicable, are cumulative and are not exclusive of any rights or remedies
that they would otherwise have. No waiver of any provision of this Agreement or consent to any
departure by any Guarantor therefrom shall in any event be effective unless the same shall be
permitted by subsection (b) below, and then such waiver and consent shall be effective only in the
specific instance and for the purpose for which given. No notice or demand on any Guarantor in any
case shall entitle such Guarantor to any other or further notice in similar or other circumstances.

     (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to a written agreement entered into between the Guarantors with respect to which such
waiver, amendment or modification relates and the Administrative Agent, with the prior written
consent of the Required Lenders (except as otherwise provided in the Credit Agreement).

     Section 16. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF VIRGINIA.

     Section 17. Notices. All communications and notices hereunder shall be in writing
and given as provided in Section 10.1 of the Credit Agreement. All communications and notices
hereunder to each Guarantor shall be given to it at its address set forth on Schedule I attached
hereto or any subsequent address described in a written notice given as provided in Section 10.1 of
the Credit Agreement.

     Section 18. Survival of Agreement; Severability.

6

 

     (a) All covenants, agreements representations and warranties made by the Guarantors herein and
in the certificates or other instruments prepared or delivered in connection with or pursuant to
this Agreement or the other Loan Document shall be considered to have been relied upon by the
Administrative Agent and the Lenders and shall survive the making by the Lenders of the Loans and
the issuance of the Letters of Credit by the Issuing Bank regardless of any investigation made by
any of them or on their behalf, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any other fee or amount payable under this
Agreement or any other Loan Document is outstanding and unpaid or the LC Exposure does not equal
zero and as long as the Commitments have not been terminated.

     (b) In the event one or more of the provisions contained in this Agreement or in any other
Loan Document should be held invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein and therein shall not in
any way be affected or impaired thereby (it being understood that the invalidity of a particular
provision in a particular jurisdiction shall not in and of itself affect the validity of such
provision in any other jurisdiction). The parties shall endeavor in good-faith negotiations to
replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect
of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

     Section 19. Counterparts. This Agreement may be executed in counterparts, each of
which shall constitute an original, but all of which when taken together shall constitute a single
contract (subject to Section 14), and shall become effective as provided in Section 14. Delivery
of an executed signature page to this Agreement by facsimile transmission or by email as a pdf
shall be as effective as delivery of a manually executed counterpart of this Agreement.

     Section 20. Rules of Interpretation. The rules of interpretation specified in Section
1.4 of the Credit Agreement shall be applicable to this Agreement.

     Section 21. Jurisdiction; Consent to Service of Process.

     (a) Each Guarantor hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any of the United States District Court of the
Eastern District of Virginia, Alexandria Division, and of any state court of the Commonwealth of
Virginia sitting in Fairfax County, Virginia, and any appellate court from any thereof, in any
action or proceeding arising out of or relating to this Agreement, any other Loan Document or any
Hedging Document or any Treasury Document or the transactions contemplated hereby or thereby, or
for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or proceeding may be heard
and determined in such Virginia state court or, to the extent permitted by law, in such Federal
court. Each of the parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any
other manner provided by law. Nothing in this Agreement shall affect any right that the
Administrative Agent, the Issuing Bank or any Guaranteed Party may otherwise have to bring any
action or proceeding relating to this Agreement or the other Loan Documents against any Guarantor
or its properties in the courts of any jurisdiction.

7

 

     (b) Each Guarantor hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection that it may now or hereafter have to the laying of
venue of any suit, action or proceeding arising out of or relating to this Agreement or the other
Loan Documents in any Virginia state or Federal court. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to
the maintenance of such action or proceeding in any such court.

     (c) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 17. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

     Section 22. Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, OR
ANY OTHER LOAN DOCUMENT, HEDGING DOCUMENT OR TREASURY DOCUMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, THE HEDGING DOCUMENTS OR THE TREASURY
DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 22.

     Section 23. Additional Guarantors. Upon the occurrence of certain events and on the
terms and conditions set forth and described in Section 5.11 of the Credit Agreement, certain other
Domestic Subsidiaries of the Borrower may become Guarantors for purposes hereof and become a party
hereto by executing and delivering to the Administrative Agent an instrument in the form of Annex I
(each, a “Joinder Agreement”). Upon execution and delivery after the date hereof by the
Administrative Agent and such Domestic Subsidiary of a Joinder Agreement, such Domestic Subsidiary
shall become a Guarantor hereunder with the same force and effect as if originally named as a
Guarantor herein. The execution and delivery of any instrument adding an additional Guarantor as a
party to this Agreement shall not require the consent of any other Guarantor hereunder. The rights
and obligations of each Guarantor hereunder shall remain in full force and effect notwithstanding
the addition of any new Guarantor as a party to this Agreement.

     Section 24. Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Guaranteed Party and the Issuing Bank are hereby authorized at any time and from
time to time, to the fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and other Indebtedness
at any time owing by such Guaranteed Party or the Issuing Bank to or for the credit or the account
of any Guarantor against any or all of the obligations of such Guarantor now or hereafter

8

 

existing under this Agreement, the other Loan Documents, the Hedging Documents or the Treasury
Documents held by such Guaranteed Party or the Issuing Bank, irrespective of whether or not such
Person shall have made any demand under this Agreement or any other Loan Document, Hedging Document
or Treasury Document, and although such obligations may be unmatured. The setoff rights provided in
this Section 24 shall not apply to funds held by or on behalf of any Guarantor in trust for
other persons, including, without limitation, funds received under the Title IV, HEA Programs that
are held in trust for the beneficiaries provided under 34 C.F.R. 668.161(b). The rights of each
Guaranteed Party and the Issuing Bank under this Section 24 are in addition to other rights
and remedies (including other rights of setoff) which such Guaranteed Party or the Issuing Bank, as
the case may be, may have.

     Section 25. Savings Clause.

     (a) It is the intent of each Guarantor and the Administrative Agent that each Guarantor’s
maximum obligations hereunder shall be, but not in excess of:

     (i) in a case or proceeding commenced by or against any Guarantor under the provisions
of Title 11 of the United States Code, 11 U.S.C. §§101 et seq. (the
“Bankruptcy Code”) on or within one year from the date on which any of the
Guaranteed Obligations are incurred, the maximum amount which would not otherwise cause the
Guaranteed Obligations (or any other obligations of such Guarantor owed to the
Administrative Agent or the Guaranteed Parties) to be avoidable or unenforceable against
such Guarantor under (i) Section 548 of the Bankruptcy Code or (ii) any state fraudulent
transfer or fraudulent conveyance act or statute applied in such case or proceeding by
virtue of Section 544 of the Bankruptcy Code; or

     (ii) in a case or proceeding commenced by or against any Guarantor under the Bankruptcy
Code subsequent to one year from the date on which any of the Guaranteed Obligations are
incurred, the maximum amount which would not otherwise cause the Guaranteed Obligations (or
any other obligations of such Guarantor to the Administrative Agent or the Guaranteed
Parties) to be avoidable or unenforceable against such Guarantor under any state fraudulent
transfer or fraudulent conveyance act or statute applied in any such case or proceeding by
virtue of Section 544 of the Bankruptcy Code; or

     (iii) in a case or proceeding commenced by or against any Guarantor under any law,
statute or regulation other than the Bankruptcy Code (including, without limitation, any
other bankruptcy, reorganization, arrangement, moratorium, readjustment of debt,
dissolution, liquidation or similar debtor relief laws), the maximum amount which would not
otherwise cause the Guaranteed Obligations (or any other obligations of such Guarantor to
the Administrative Agent or the Guaranteed Parties) to be avoidable or unenforceable against
such Guarantor under such law, statute or regulation including, without limitation, any
state fraudulent transfer or fraudulent conveyance act or statute applied in any such case
or proceeding.

     (b) The substantive laws under which the possible avoidance or unenforceability of the
Guaranteed Obligations (or any other obligations of such Guarantor to the Administrative Agent or
the Guaranteed Parties) as may be determined in any case or proceeding shall

9

 

hereinafter be referred to as the “Avoidance Provisions”. To the extent set forth in
Section 25(a) (i), (ii), and (iii), but only to the extent that the Guaranteed Obligations
would otherwise be subject to avoidance or found unenforceable under the Avoidance Provisions, if
any Guarantor is not deemed to have received valuable consideration, fair value or reasonably
equivalent value for the Guaranteed Obligations, or if the Guaranteed Obligations would render such
Guarantor insolvent, or leave such Guarantor with an unreasonably small capital to conduct its
business, or cause such Guarantor to have incurred debts (or to have intended to have incurred
debts) beyond its ability to pay such debts as they mature, in each case as of the time any of the
Guaranteed Obligations are deemed to have been incurred under the Avoidance Provisions and after
giving effect to the contribution by such Guarantor, the maximum Guaranteed Obligations for which
such Guarantor shall be liable hereunder shall be reduced to that amount which, after giving effect
thereto, would not cause the Guaranteed Obligations (or any other obligations of such Guarantor to
the Administrative Agent or the Guaranteed Parties), as so reduced, to be subject to avoidance or
unenforceability under the Avoidance Provisions.

     (c) This Section 25 is intended solely to preserve the rights of the Administrative
Agent and the Guaranteed Parties hereunder to the maximum extent that would not cause the
Guaranteed Obligations of such Guarantor to be subject to avoidance or unenforceability under the
Avoidance Provisions, and neither the Guarantors nor any other Person shall have any right or claim
under this Section 25 as against the Administrative Agent or Guaranteed Parties that would
not otherwise be available to such Person under the Avoidance Provisions.

     Section 26. Amendment and Restatement. This Agreement amends and restates in its
entirety the Subsidiary Guaranty Agreement, dated as of January 3, 2011, made by the Guarantors in
favor of the Administrative Agent.

(Signatures on following page)

10

 

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and
year first above written.

	 	 	 	 	 	 	 

	 	 	STRAYER UNIVERSITY, INC.,	 	 
	 	 	a Maryland corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	EDUCATION LOAN PROCESSING, INC.,	 	 
	 	 	a Virginia corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	SUNTRUST BANK, as	 	 
	 	 	Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

	 	 	 	 	 

	Acknowledged and agreed to:	 	 
	 
	STRAYER EDUCATION, INC., a Maryland corporation	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

Subsidiary Guaranty Signature Page

 

 

SCHEDULE I TO THE

SUBSIDIARY GUARANTY AGREEMENT

Guarantor(s)

	 	 	 
	Guarantors	 	Address
	STRAYER UNIVERSITY, INC., a
Maryland corporation

	 	Strayer University, Inc.

2303 Dulles Station Boulevard 

Herndon, Virginia 20171

Attention: Mark Brown, Executive 

Vice President and Chief Financial Officer

Telecopy Number: (703) 527-0112
	 
	 	 
	EDUCATION LOAN PROCESSING,
INC., a Virginia corporation

	 	Education Loan Processing, Inc.

2303 Dulles Station Boulevard 

Herndon, Virginia 20171

Attention: Mark Brown, Executive 

Vice
President and Chief Financial Officer 

Telecopy Number: (703) 527-0112

Schedule I

 

 

ANNEX 1 TO THE

AMENDED AND RESTATED SUBSIDIARY GUARANTY AGREEMENT

     SUPPLEMENT NO. [   ] dated as of [               ], to the Amended and Restated Subsidiary
Guaranty Agreement (the “Guaranty Agreement”) dated as of April 4, 2011, among each of the
Subsidiaries listed on Schedule I thereto (each such Subsidiary individually, a “Guarantor”
and collectively, the “Guarantors”) of STRAYER EDUCATION, INC., a Maryland corporation (the
“Borrower”) and SUNTRUST BANK, a Georgia banking corporation, as Administrative Agent (the
“Administrative Agent”) for the Lenders (as defined in the Credit Agreement referred to
below).

     A. Reference is made to the Amended and Restated Revolving Credit and Term Loan Agreement
dated as of April 4, 2011 (as amended, supplemented or otherwise modified from time to time, the
“Credit Agreement”), among the Borrower, the lenders from time to time party thereto (the
“Lenders”) and SunTrust Bank, as Administrative Agent, as Issuing Bank and as Swingline
Lender.

     B. Capitalized terms used herein and not otherwise defined herein shall have the meanings
assigned to such terms in the Guaranty Agreement and the Credit Agreement.

     C. The Guarantors have entered into the Guaranty Agreement in order to induce the Lenders to
make Loans and the Issuing Bank to issue Letters of Credit. Pursuant to Section 5.11 of the Credit
Agreement, certain Domestic Subsidiaries of the Borrower required to enter into the Guaranty
Agreement as a Guarantor after the Closing Date. Section 23 of the Guaranty Agreement provides
that such Domestic Subsidiaries of the Borrower may become Guarantors under the Guaranty Agreement
by execution and delivery of an instrument in the form of this Supplement. The undersigned
Domestic Subsidiary of the Borrower (the “New Guarantor”), is executing this Supplement in
accordance with the requirements of the Credit Agreement to become a Guarantor under the Guaranty
Agreement in order to induce the Lenders to make additional Loans and the Issuing Bank to issue
additional Letters of Credit and as consideration for Loans previously made and Letters of Credit
previously issued.

     Accordingly, the Administrative Agent and the New Guarantor agree as follows:

     Section 1. In accordance with Section 23 of the Guaranty Agreement, the New Guarantor by its
signature below becomes a Guarantor under the Guaranty Agreement with the same force and effect as
if originally named therein as a Guarantor and the New Guarantor hereby (a) agrees to all the terms
and provisions of the Guaranty Agreement applicable to it as Guarantor thereunder and (b)
represents and warrants that the representations and warranties made by it (but not the other
Guarantors) as a Guarantor thereunder are true and correct in all material respects (or, if
qualified by materiality, in all respects) on and as of the date hereof. Each reference to a
Guarantor in the Guaranty Agreement shall be deemed to include the New Guarantor. The Guaranty
Agreement is hereby incorporated herein by reference.

 

 

     Section 2. The New Guarantor represents and warrants to the Administrative Agent and the
Guaranteed Parties that this Supplement has been duly authorized, executed and delivered by it and
constitutes its legal, valid and binding obligation, enforceable against it in accordance with its
terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
or similar laws affecting the enforcement of creditors’ rights generally and by general principles
of equity.

     Section 3. This Supplement may be executed in counterparts each of which shall constitute an
original, but all of which when taken together shall constitute a single contract. This Supplement
shall become effective when the Administrative Agent shall have received counterparts of this
Supplement that, when taken together, bear the signatures of the New Guarantor and the
Administrative Agent. Delivery of an executed signature page to this Supplement by facsimile
transmission or by email as a pdf shall be as effective as delivery of a manually signed
counterpart of this Supplement.

     Section 4. Except as expressly supplemented hereby, the Guaranty Agreement shall remain in
full force and effect.

     Section 5. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE COMMONWEALTH OF VIRGINIA.

     Section 6. In case any one or more of the provisions contained in this Supplement should be
held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of
the remaining provisions contained herein and in the Guaranty Agreement shall not in any way be
affected or impaired thereby (it being understood that the invalidity of a particular provision
hereof in a particular jurisdiction shall not in and of itself affect the validity of such
provision in any other jurisdiction). The parties hereto shall endeavor in good-faith negotiations
to replace the invalid, illegal or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

     Section 7. All communications and notices hereunder shall be in writing and given as provided
in Section 17 of the Guaranty Agreement. All communications and notices hereunder to the New
Guarantor shall be given to it at the address set forth under its signature below, with a copy to
the Borrower.

     Section 8. The New Guarantor agrees to reimburse the Administrative Agent for its reasonable
and documented out-of-pocket expenses in connection with this Supplement, including the reasonable,
documented, disbursements and other charges of outside counsel for the Administrative Agent, in
accordance with Section 10.3(a) of the Credit Agreement as if the New Guarantor was the Borrower.

(Signatures on following page)

 

 

     IN WITNESS WHEREOF, the New Guarantor and the Administrative Agent have duly executed this
Supplement to the Guaranty Agreement as of the day and year first above written.

	 	 	 	 	 
	 	[NAME OF NEW GUARANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:
Address:	

 	 
	 
	 	SUNTRUST BANK, as

Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

SECURITY AGREEMENT

     THIS SECURITY AGREEMENT (this “Agreement”), dated as of April 4, 2011, is made by
STRAYER EDUCATION, INC., a Maryland corporation (the “Borrower”), STRAYER UNIVERSITY, INC.,
a Maryland corporation (“SUI”), EDUCATION LOAN PROCESSING, INC., a Virginia corporation
(“ELP”), and each other Subsidiary of the Borrower hereafter becoming a party hereto (the
Borrower, SUI, ELP and each other Subsidiary of the Borrower hereafter becoming a party hereto
shall be collectively known as the “Grantors,” and individually as a “Grantor”), in
favor of SUNTRUST BANK, a Georgia banking corporation, as the Administrative Agent (the
“Administrative Agent”), on its behalf and on behalf of the other banks and lending
institutions (the “Lenders”) from time to time party to the Amended and Restated Revolving
Credit and Term Loan Agreement, dated as of the date hereof, by and among the Borrower, the
Lenders, the Administrative Agent, and SunTrust Bank, as Issuing Bank and as Swingline Lender (as
amended, restated, supplemented, or otherwise modified from time to time, the “Credit
Agreement”).

W I T N E S S E T H:

     WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to establish a revolving
credit facility on behalf of, and to make term loans to, the Borrower; and

     WHEREAS, it is a condition precedent to the obligations of the Administrative Agent, the
Issuing Bank, the Swingline Lender and the Lenders under the Credit Agreement that the Grantors
enter into this Agreement to secure all obligations of the Borrower under the Credit Agreement,
secure the obligations of each Subsidiary of the Borrower under the Subsidiary Guaranty Agreement
and all other Loan Documents to which each Grantor is a party, to secure all Hedging Obligations
owed by any Loan Party to any Lender or Affiliate of any Lender or to any Person that was a Lender
or an Affiliate of a Lender at the time the applicable Hedging Transaction was entered into, and to
secure all Treasury Management Obligations owed by any Loan Party to any Lender or Affiliate of any
Lender or to any Person that was a Lender or an Affiliate of a Lender at the time the applicable
agreement giving rise to such Treasury Management Obligations was entered into, and the Grantors
desire to satisfy such condition precedent.

     NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     Section 1.01 Definitions. Capitalized terms defined in the Credit Agreement and not
otherwise defined herein, when used in this Agreement shall have the respective meanings provided
for in the Credit Agreement. The following additional terms, when used in this Agreement, shall
have the following meanings:

     “Account Debtor” shall mean any person or entity that is obligated under an Account.

     “Accounts” shall mean all “accounts” (as defined in the UCC) now owned or hereafter
acquired by any Grantor or in which any Grantor has or acquires any rights, and, in any event,

 

 

shall mean and include, without limitation, (a) all accounts receivable, contract rights, book
debts, notes, drafts and other obligations or indebtedness owing to any Grantor arising from the
sale or lease of goods or other property by any Grantor or the performance of services by any
Grantor (including, without limitation, any such obligation which might be characterized as an
account, contract right or general intangible under the UCC in effect in any jurisdiction), (b) all
of each Grantor’s rights in, to and under all purchase and sales orders for goods, services or
other property, and all of each Grantor’s rights to any goods, services or other property
represented by any of the foregoing (including returned or repossessed goods and unpaid sellers’
rights of rescission, replevin, reclamation and rights to stoppage in transit), (c) all monies due
to or to become due to any Grantor under all contracts for the sale, lease or exchange of goods or
other property or the performance of services by any Grantor (whether or not yet earned by
performance on the part of such Grantor), and (d) all collateral security and guarantees of any
kind given to any Grantor with respect to any of the foregoing.

     “Accreditor” shall mean any entity or organization, whether governmental or
government-chartered, private or quasi-private, which engages in the granting or withholding of
accreditation of post-secondary education institutions or of educational programs provided by such
institutions in accordance with prescribed standards and procedures.

     “Chattel Paper” shall mean all “chattel paper” (as defined in the UCC) owned or
acquired by any Grantor or in which any Grantor has or acquires any rights.

     “Collateral” shall mean, collectively, all of the following:

	 	(i)	 	all Accounts;
	 
	 	(ii)	 	all Chattel Paper;
	 
	 	(iii)	 	all Deposit Accounts;
	 
	 	(iv)	 	all Documents;
	 
	 	(v)	 	all Equipment;
	 
	 	(vi)	 	all Fixtures;
	 
	 	(vii)	 	all General Intangibles;
	 
	 	(viii)	 	all Instruments;
	 
	 	(ix)	 	all Inventory;
	 
	 	(x)	 	all Investment Property;
	 
	 	(xi)	 	all Software;
	 
	 	(xii)	 	all money, cash or cash equivalents;

2

 

	 	(xiii)	 	all other goods and personal property, whether tangible or
intangible;
	 
	 	(xiv)	 	all Supporting Obligations and
Letter-of-Credit Rights of any Grantor;
	 
	 	(xv)	 	all books and records pertaining to any of the
Collateral (including, without limitation, credit files, Software,
computer programs, printouts and other computer materials and records
but excluding customer lists); and
	 
	 	(xvi)	 	All products and Proceeds of all or any of the
Collateral described in clauses (i) through (xv) hereof.

“Collateral” shall not include Excluded Collateral.

     “Copyright License” shall mean any and all rights of any Grantor under any written
agreement granting any right to use any Copyright or Copyright registration.

     “Copyrights” shall mean all of the following now owned or hereafter acquired by any
Grantor or in which any Grantor now has or hereafter acquires any rights: (a) all copyrights and
general intangibles of like nature (whether registered or unregistered), all registrations and
recordings thereof, and all applications in connection therewith, including all registrations,
recordings and applications in the United States Copyright Office or in any similar office or
agency of the United States, any state or territory thereof, or any other country or any political
subdivision thereof, and (b) all reissues, extensions or renewals thereof.

     “Deposit Accounts” shall mean all “deposit accounts” (as defined in the UCC) now owned
or hereafter acquired by any Grantor or in which any Grantor has or acquires any rights, or other
receipts, of any Grantor covering, evidencing or representing rights or interest in such deposit
accounts.

     “Documents” shall mean all “documents” (as defined in the UCC) now owned or hereafter
acquired by any Grantor or in which any Grantor has or acquires any rights, or other receipts, of
any Grantor covering, evidencing or representing goods.

     “Educational Licenses” shall mean all federal, state, and Accreditor licenses,
permits, authorizations, certifications, agreements, or similar approvals necessary under
applicable law and accreditation standards and procedures for SUI to operate as a post-secondary
educational institution as it currently operates or may operate from time to time during the term
of this Agreement.

     “Equipment” shall mean all “equipment” (as defined in the UCC) now owned or hereafter
acquired by any Grantor and wherever located, and, in any event, shall include without limitation
all machinery, furniture, furnishings, processing equipment, conveyors, machine tools, engineering
processing equipment, manufacturing equipment, materials handling equipment, trade fixtures,
trucks, trailers, forklifts, vehicles, computers and other electronic data processing and other
office equipment of any Grantor, and any and all additions, substitutions and

3

 

replacements of any of the foregoing, together with all attachments, components, parts,
equipment and accessories installed thereon or affixed thereto, all fuel therefore and all manuals,
drawings, instructions, warranties and rights with respect thereto.

     “Event of Default” shall have the meaning set forth for such term in Section 7 hereof.

     “Excluded Accounts” means (i) any disbursement deposit accounts the funds in which are
used solely for the payment of salaries and wages, employee benefits or workers’ compensation, (ii)
all accounts maintained by the Grantors for which the aggregate balance of all such accounts, as of
the end of any Business Day, does not exceed $5,000,000 and (iii) any Fiduciary Accounts.

     “Excluded Collateral” shall mean:

     (a) any lease, license, contract, property rights or agreement to which any Grantor is a party
(including any Educational Licenses) or any of its respective rights or interests therein if and
for so long as the grant of a security interest therein shall constitute or result in (i) the
abandonment, invalidation or unenforceability of any right, right, title or interest of any Grantor
therein or (ii) a breach or termination pursuant to the terms of, or a default under, any such
lease, license, contract, property rights or agreement or under applicable law (other than to the
extent that any such term would be rendered ineffective pursuant to Section 9-406, 9-407, 9-408 or
9-409 of the UCC (or any successor provision or provisions) of any relevant jurisdiction or any
other applicable law); provided, however, that a security interest shall attach immediately (and
such lease, license, contract, property rights or agreement shall immediately cease to be Excluded
Collateral) at such time as the condition causing such abandonment, invalidation or
unenforceability shall be remedied, and, to the extent severable, shall attach immediately to any
portion of such lease, license, contract, property rights or agreement (and such portion of such
lease, license, contract, property rights or agreement shall immediately cease to be Excluded
Collateral) that does not result in any of the consequences specified in the foregoing clauses (i)
or (ii);

     (b) (i) funds that SUI receives from federal student financial aid programs under Title IV of
the Higher Education Act of 1965, as amended, and holds in a bank or investment account for federal
funds pursuant to 34 C.F.R. 668.163 (or any successor regulation) or otherwise in trust pursuant to
34 C.F.R. 668.161(b) and (ii) any similar federal or state student financial aid funds; and

     (c) any treasury stock of the Borrower that has not yet been retired.

     “Exempt Student Financial Aid Funds” shall mean (i) funds that (A) SUI receives from
federal student financial aid programs under Title IV of the Higher Education Act of 1965, as
amended, and (B) students do not earn pursuant to 34 C.F.R. 668.22(e) (or any successor regulation)
and (ii) any similar federal or state student financial aid funds.

     “Fiduciary Accounts” means any deposit or trust account into which only governmental
funds are deposited or credited and held by an institution as fiduciary for the benefit of
students, including Title IV Trust Accounts (including Direct Loan accounts) and PHEAA accounts or
other similar State grant accounts.

4

 

     “Fixtures” shall mean all “fixtures” (as defined in the UCC) owned or acquired by any
Grantor.

     “General Intangibles” shall mean all “general intangibles” (as defined in the UCC) now
owned or hereafter acquired by any Grantor or in which any Grantor has or acquires any rights and,
in any event, shall include all right, title and interest in or under all contracts, all customer
lists, Licenses, Copyrights, Trademarks, Patents, and all applications therefor and reissues,
extensions or renewals thereof, rights in Intellectual Property, interests in partnerships, joint
ventures and other business associations, licenses, permits, copyrights, trade secrets, proprietary
or confidential information, inventions (whether or not patented or patentable), technical
information, procedures, designs, knowledge, know-how, software, data bases, data, skill,
expertise, experience, processes, models, drawings, materials and records, goodwill (including the
goodwill associated with any Trademark or Trademark License), all rights and claims in or under
insurance policies (including insurance for fire, damage, loss and casualty, whether covering
personal property, real property, tangible rights or intangible rights, all liability, life, key
man and business interruption insurance, and all unearned premiums), uncertificated securities,
choses in action, deposit, checking and other bank accounts, rights to receive tax refunds and
other payments, rights of indemnification, all books and records, correspondence, credit files,
invoices, tapes, cards, computer runs, domain names, prospect lists, customer lists and other
papers and documents.

     “Instruments” shall mean all “instruments” (as defined in the UCC) now owned or
hereafter acquired by any Grantor or in which any Grantor has or acquires any rights and, in any
event, shall include all promissory notes, all certificates of deposit and all letters of credit
evidencing, representing, arising from or existing in respect of, relating to, securing or
otherwise supporting the payment of, any of the Accounts or other obligations owed to any Grantor.

     “Intellectual Property” shall mean all of the following now owned or hereafter
acquired by any Grantor or in which any Grantor has or acquires any rights: (a) all Patents, patent
rights and patent applications, Copyrights and copyright applications, Trademarks, trademark
rights, trade names, trade name rights, service marks, service mark rights, applications for
registration of trademarks, trade names and service marks, fictitious names registrations and
trademark, trade name and service mark registrations, and all derivations thereof; and (b) Patent
Licenses, Trademark Licenses, Copyright Licenses and other licenses to use any of the items
described in the preceding clause (a), and any other similar items necessary to conduct or operate
the business of each Grantor.

     “Inventory” shall mean all “inventory” (as defined in the UCC) now owned or hereafter
acquired by any Grantor or in which any Grantor has or acquires any rights and, in any event, shall
include all goods owned or held for sale or lease to any other Persons.

     “Investment Property” shall mean all “investment property” (as defined in the UCC) now
owned or hereafter acquired by any Grantor or in which any Grantor has or acquires any rights and,
in any event, shall include all “certificated securities”, “uncertificated securities”, “security
entitlements”, “securities accounts”, “commodity contracts” and “commodity accounts” (as all such
terms are defined in the UCC) of each Grantor.

5

 

     “Letter-of-Credit Rights” shall mean “letter-of-credit rights” (as defined in the
UCC), now owned or hereafter acquired by any Grantor, including rights to payment or performance
under a letter of credit, whether or not any Grantor, as beneficiary, has demanded or is entitled
to demand payment or performance.

     “License” shall mean any Copyright License, Patent License, Trademark License or other
license of rights or interests of each Grantor in Intellectual Property.

     “Material Intellectual Property” means any registered Intellectual Property owned or
licensed by a Grantor, which is material to the conduct of the business of the Borrower and its
Subsidiaries, taken as a whole.

     “Patent License” shall mean any written agreement now owned or hereafter acquired by
any Grantor or in which any Grantor has or acquires any rights granting any right with respect to
any property, process or other invention on which a Patent is in existence.

     “Patents” shall mean all of the following now owned or hereafter acquired by any
Grantor or in which any Grantor has or acquires any rights: (a) all letters patent of the United
States or any other country, all registrations and recordings thereof, and all applications for
letters patent of the United States or any other country, including registrations, recordings and
applications in the United States Patent and Trademark Office or in any similar office or agency of
the United States, any State or Territory thereof, or any other country; and (b) all reissues,
continuations, continuations-in-part and extensions thereof.

     “Proceeds” shall mean all “proceeds” (as defined in the UCC) of, and all other
profits, rentals or receipts, in whatever form, arising from the collection, sale, lease, exchange,
assignment, licensing or other disposition of, or realization upon, the Collateral, and, in any
event, shall mean and include all claims against third parties for loss of, damage to or
destruction of, or for proceeds payable under, or unearned premiums with respect to, policies of
insurance in respect of any Collateral, and any condemnation or requisition payments with respect
to any Collateral and the following types of property acquired with cash proceeds: Accounts,
Inventory, General Intangibles, Documents, Instruments and Equipment.

     “Secured Obligations” shall mean (i) all Obligations of the Borrower, (ii) all
obligations of each other Grantor under the Subsidiary Guaranty Agreement and all other Loan
Documents to which such other Grantor is a party to (whether for principal, interest, fees,
expenses, indemnity or reimbursement payments, or otherwise), (iii) all renewals, extensions,
refinancings and modifications thereof, and (iv) all documented out-of-pocket costs and expenses
incurred by the Administrative Agent in connection with the exercise of its rights and remedies
hereunder (including reasonable and documented attorneys’ fees, charges and disbursements).

     “Secured Parties” shall mean the Administrative Agent, the Lenders, the Specified
Hedge Providers and the Specified Treasury Management Providers.

     “Security Interests” shall mean the security interests granted to the Administrative
Agent on its behalf and on behalf of the Secured Parties pursuant to Section 3(a), as well as all
other security interests created or assigned as additional security for the Secured Obligations
pursuant to the provisions of this Agreement.

6

 

     “Software” shall mean all “software” (as defined in the UCC), now owned or hereafter
acquired by any Grantor, including all computer programs and all supporting information provided in
connection with a transaction related to any program.

     “Specified Hedge Provider” means a Person that was a Lender or an Affiliate of a
Lender at the date of entering into a Hedging Transaction, and, in the case of an Affiliate, such
Affiliate Person executes and delivers to the Administrative Agent a letter agreement in form and
substance reasonably acceptable to the Administrative Agent pursuant to which such Affiliate (i)
appoints the Administrative Agent as its agent under the applicable Loan Documents and (ii) agrees
to be bound by the provisions of Articles 9 and 10 of the Credit Agreement.

     “Specified Treasury Management Provider” means each Person that provides products of
the type described in the definition of “Treasury Management Obligations” contained in the Credit
Agreement to any of the Loan Parties and such Person either (A) is a Lender or (B) is an Affiliate
of a Lender that executes and delivers to the Administrative Agent a letter agreement in form and
substance reasonably acceptable to the Administrative Agent pursuant to which such Affiliate (i)
appoints the Administrative Agent as its agent under the applicable Loan Documents and (ii) agrees
to be bound by the provisions of Articles 9 and 10 of the Credit Agreement.

     “Supporting Obligations” means all “supporting obligations” (as defined in the UCC),
including letters of credit and guaranties issued in support of Accounts, Chattel Paper, Documents,
General Intangibles, Instruments, or Investment Property.

     “Title IV Trust Account” shall mean any trust account holding “Title IV HEA Program
Funds” under the terms of 34 C.F.R. §668.161(b) and 34 C.F.R. §668.163.

     “Trademark License” shall mean any written agreement now owned or hereafter acquired
by any Grantor or in which any Grantor has or acquires any such rights granting to any Grantor any
right to use any Trademark.

     “Trademarks” shall mean all of the following now owned or hereafter acquired by any
Grantor or in which any Grantor has or acquires any such rights: (i) all trademarks, trade names,
corporate names, company names, business names, fictitious business names, trade styles, service
marks, logos, other source or business identifiers, prints and labels on which any of the foregoing
have appeared or appear, designs and general intangibles of like nature (whether registered or
unregistered), now owned or existing or hereafter adopted or acquired, all registrations and
recordings thereof, and all applications in connection therewith, including, without limitation,
registrations, recordings and applications in the United States Patent and Trademark Office or in
any similar office or agency of the United States, any State thereof or any other country or any
political subdivision thereof, (ii) all reissues, extensions or renewals thereof and (iii) all
goodwill associated with or symbolized by any of the foregoing.

     “UCC” shall mean the Uniform Commercial Code as in effect, from time to time, in the
Commonwealth of Virginia; provided that if by reason of mandatory provisions of law, the
perfection or the effect of perfection or non-perfection of the Security Interests in any
Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than
Virginia, “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for

7

 

purposes of the provisions hereof relating to such perfection or effect of perfection or
non-perfection.

     “United States” or “U.S.” shall mean the United States of America, any of the
fifty states thereof, and the District of Columbia.

     SECTION 2. Representations and Warranties. Each Grantor represents and warrants to
the Administrative Agent, for the benefit of the Secured Parties, as follows:

          (a) Subject to the restrictions in respect of Educational Licenses described in Section 25,
such Grantor (i) has rights in, and except as otherwise permitted by Section 7.8 of the Credit
Agreement, the power to transfer, each item of the Collateral upon which it purports to grant a
Security Interest hereunder free and clear of any Liens other than Liens permitted under
Section 7.2 of the Credit Agreement and (ii) has good and marketable title to the
Collateral owned by such Grantor.

          (b) Other than financing statements, security agreements, or other similar or equivalent
documents or instruments (i) with respect to Liens permitted under Section 7.2 of the
Credit Agreement, (ii) as have been filed in favor of the Administrative Agent, for the benefit of
the Secured Parties, pursuant to the Loan Documents, (iii) for which termination statements have
been delivered to the Administrative Agent or (iv) that are ineffective under applicable law, no
financing statement, mortgage, security agreement or similar or equivalent document or instrument
evidencing a Lien on all or any part of the Collateral is on file or of record in any jurisdiction.
None of the Collateral is in the possession of a Person (other than any Grantor) asserting any
claim thereto or security interest therein (other than Liens permitted under Section 7.2 of the
Credit Agreement), except that the Administrative Agent or its designee may have possession of
Collateral as contemplated hereby.

          (c) When UCC financing statements in appropriate form are filed in the offices specified on
Schedule I attached hereto, the Security Interests shall constitute valid and perfected
security interests in the Collateral, prior to all other Liens and rights of others therein except
for the Liens permitted under Section 7.2 of the Credit Agreement, to the extent that a
security interest therein may be perfected by filing pursuant to the UCC, assuming the proper
filing and indexing thereof.

          (d) All Inventory and Equipment is insured in accordance with the requirements of this
Agreement and the Credit Agreement.

          (e) None of the Collateral constitutes, or is the Proceeds of, “farm products” (as defined in
the UCC).

          (f) Schedule II correctly sets forth as of the date hereof each Grantor’s state of
organization, taxpayer identification number, organizational identification number and correct
legal name indicated on the public record of such Grantor’s jurisdiction of organization which
shows such Grantor to be organized.

          (g) The Perfection Certificates, which are attached hereto as Schedule III, correctly
sets forth as of the date hereof (i) all names and tradenames that each Grantor has used

8

 

within the last five (5) years and the names of all Persons that have merged into or been
acquired by each Grantor, (ii) the chief executive offices of each Grantor over the last five (5)
years, (iii) all owned and leased locations of each Grantor, (iv) the name of each bank at which
each Grantor maintains Deposit Accounts, the state or other jurisdiction of location of each such
bank, and the account numbers for each Deposit Account, (v) all letters of credit under which each
Grantor is a beneficiary, (vi) all third parties with possession of any Inventory or Equipment of
each Grantor and (vii) each Grantor’s mailing address.

          (h) With respect to the Accounts of the Grantors: (i) to the extent an Account arises out of
goods sold and/or services furnished, (A) the goods sold and/or services furnished giving rise to
each Account, to the extent applicable, are not subject to any security interest or Lien except the
security interest granted to the Administrative Agent herein and Liens permitted by Section
7.2 of the Credit Agreement, (B) such Account arises out of a bona fide transaction for goods
sold and delivered (or in the process of being delivered) by a Grantor or for services actually
rendered or to be rendered by a Grantor, except as, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect; (ii) each Account and the papers and
documents of the applicable Grantor relating thereto, if any, are genuine and in all material
respects what they purport to be, except as, individually or in the aggregate, could not reasonably
be expected to have a Material Adverse Effect; (iii) the amount of each Account as shown on the
applicable Grantor’s books and records, and on all invoices and statements which may be delivered
to the Administrative Agent with respect thereto, is due and payable to the applicable Grantor and
is not in any way contingent (except for contingent Accounts relating to the sale, lease or other
disposition of all or substantially all of the assets of a line of business or division of a
Grantor and for tuition and fee payments that may be refundable upon withdrawal of a student in the
ordinary course of business), except as, individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect; (iv) no Account is subject to set-offs, counterclaims
or disputes existing or asserted with respect to any Account that in the aggregate could reasonably
be expected to have a Material Adverse Effect, and no Grantor has made any agreement with any
Account Debtor for any deduction from any Account except for deductions made in the ordinary course
of its business or as determined by such Grantor in the exercise of its reasonable business
judgment; (v) there has been no development or event in respect of the validity or enforcement of
any Account or Accounts or the amount payable thereunder as shown on the applicable Grantor’s books
and records and all invoices and statements delivered to the Administrative Agent with respect
thereto, which individually or in the aggregate has had or could be reasonably expected to have a
Material Adverse Effect; and (vi) the right to receive payment under each Account is assignable
except where the assignment of any such right to payment is prohibited or limited by applicable
law, regulations, administrative guidelines or contract.

          (i) Intentionally Deleted.

          (j) Such Grantor does not have as of the date hereof any interest in, or title to, any
registered Patent, Trademark or Copyright constituting Material Intellectual Property except as set
forth in the Perfection Certificates. This Agreement is effective to create a valid and continuing
Lien on and, upon filing of (i) the Copyright Security Agreements (as hereinafter defined) with the
United States Copyright Office and filing of the Patent Security Agreements (as hereinafter
defined) and the Trademark Security Agreements (as hereinafter defined) with the

9

 

United States Patent and Trademark Office and (ii) the appropriate financing statements in the
requisite offices as required by the UCC, perfected security interests in favor of the
Administrative Agent in such Grantor’s Patents, Trademarks and Copyrights. Upon filing of the
Copyright Security Agreements with the United States Copyright Office and filing of the Patent
Security Agreements and the Trademark Security Agreements with the United States Patent and
Trademark Office and the filing of appropriate financing statements listed on Schedule I hereto,
all action necessary to protect and perfect the Administrative Agent’s Lien on such Grantor’s
registered Patents, Trademarks or Copyrights constituting Material Intellectual Property shall have
been duly taken. Notwithstanding anything to the contrary contained in this Agreement, the
Administrative Agent shall only require perfection of its security interests in, or other
registration with respect to, any Patent, Trademark or Copyright registered with a country other
than the United States or any political subdivision thereof, to the extent reasonably requested by
the Administrative Agent and such Patent, Trademark or Copyright constitutes Material Intellectual
Property.

     SECTION 3. The Security Interests; Excluded Collateral.

          (a) In order to secure the full and punctual payment and performance of the Secured
Obligations in accordance with the terms of the Credit Agreement, each Grantor hereby pledges,
assigns, hypothecates, sets over and conveys to the Administrative Agent on its behalf and on
behalf of the Secured Parties and grants to the Administrative Agent on its behalf and on behalf of
the Secured Parties a continuing security interest in and to, all of its rights in and to all
Collateral now or hereafter owned or acquired by such Grantor or in which such Grantor now has or
hereafter has or acquires any rights, and wherever located. The Security Interests are granted as
security only and shall not subject the Administrative Agent or any Secured Party to, or transfer
to the Administrative Agent or any Secured Party, or in any way affect or modify, any obligation or
liability of the Grantor with respect to any Collateral or any transaction in connection therewith.

          (b) Notwithstanding anything to the contrary herein, the Grantors make no representations or
warranties hereunder, and the covenants hereunder shall not apply, in respect of the Excluded
Collateral.

     SECTION 4. Further Assurances; Covenants.

          (a) General.

     (i) No Grantor shall change the location of its chief executive office or
principal place of business unless it shall have given the Administrative Agent
prompt written notice thereof, and delivered to the Administrative Agent all
financing statements and financing statement amendments necessary to maintain a
perfected security interest in any of the Collateral.

     (ii) No Grantor shall change its name, organizational identification number,
identity or jurisdiction or form of organization in any manner unless it shall have
given the Administrative Agent prompt written notice thereof, and delivered to the
Administrative Agent all financing statements and financing

10

 

statement amendments necessary to maintain a perfected security interest in any
of the Collateral. No Grantor shall merge or consolidate into, or transfer any of
the Collateral to, any other Person other than another Grantor, other than as
permitted by this Agreement and the Credit Agreement.

     (iii) Each Grantor hereby authorizes the Administrative Agent, its counsel or
its representative, at any time and from time to time, to file financing statements
and amendments that describe the collateral covered by such financing statements as
“all assets of the Grantor”, “all personal property of the Grantor” or words of
similar effect, in such jurisdictions as are necessary or desirable in order to
perfect the security interests granted by such Grantor under this Agreement. Each
Grantor will, from time to time, at its expense, execute, deliver, file and record
any statement, assignment, instrument, document, agreement or other paper and take
any other action (including, without limitation, any filings with the United States
Patent and Trademark Office, Copyright or Patent filings and any filings of
financing or continuation statements under the UCC) that from time to time may be
necessary, or that the Administrative Agent may reasonably request, in order to
create, preserve, upgrade in rank, perfect, confirm or validate the Security
Interests, in each case, to the extent required hereby, or to enable the
Administrative Agent to obtain the full benefits of this Agreement, or to enable the
Administrative Agent to exercise and enforce any of its rights, powers and remedies
hereunder with respect to any of its Collateral (it being understood that no Grantor
shall be required to obtain the consent of any third party pursuant to this
paragraph unless such action is otherwise required hereby). Each Grantor hereby
authorizes the Administrative Agent to execute and file financing statements,
financing statement amendments or continuation statements on behalf of such Grantor
from time to time as are necessary or desirable to maintain a perfected security
interest in the Collateral. Each Grantor agrees that a carbon, photographic,
photostatic or other reproduction of this Agreement or of a financing statement is
sufficient as a financing statement. In accordance with Section 13, the Grantors
shall pay the costs of, or incidental to, any recording or filing of any financing
statements, financing statement amendments or continuation statements filed pursuant
to the terms of this Agreement.

     (iv) Intentionally Deleted.

     (v) No Grantor shall (A) sell, transfer, lease, exchange, assign or otherwise
dispose of, or grant any option, warrant or other right with respect to, any of its
Collateral other than as permitted under Section 7.6 of the Credit
Agreement; or (B) create, incur or suffer to exist any Lien with respect to any
Collateral, except for the Liens permitted under Section 7.2 of the Credit
Agreement.

     (vi) Each Grantor will, promptly upon request, provide to the Administrative
Agent all information and evidence it may reasonably request concerning the
Collateral, to enable the Administrative Agent to enforce the provisions of this
Agreement.

11

 

     (vii) Each Grantor shall take all actions necessary or reasonably requested by
the Administrative Agent in order to maintain the perfected status of the Security
Interests, in each case, to the extent required hereby.

     (viii) Except as permitted by Section 8.9A-509(d)(2) of the UCC, no Grantor
shall file any amendment to or termination of a financing statement naming any
Grantor as debtor and the Administrative Agent as secured party, or any correction
statement with respect thereto, in any jurisdiction until such time as the Secured
Obligations (other than contingent indemnification obligations that have not yet
been asserted) have been satisfied and the Administrative Agent has authorized such
filing.

     (ix) Intentionally Deleted.

          (b) Accounts, Etc.

     (i) Each Grantor shall use all commercially reasonable efforts consistent with
prudent business practice as determined by such Grantor in the exercise of its
reasonable business judgment to cause to be collected from its Account Debtors, as
and when due, any and all amounts owing under or on account of each Account
(including, without limitation, Accounts which are delinquent, such Accounts to be
collected in accordance with lawful collection procedures) and apply forthwith upon
receipt thereof all such amounts as are so collected to the outstanding balance of
such Account. The costs and expenses (including, without limitation, reasonable
attorneys’ fees actually incurred) of collection of Accounts incurred by such
Grantor or, subject to Section 13, the Administrative Agent shall be borne by the
Grantors.

     (ii) Upon the occurrence and during the continuation of any Event of Default,
each Grantor shall, at the request and option of the Administrative Agent, notify
Account Debtors and other Persons obligated on the Accounts or any of the Collateral
of the security interest of Administrative Agent in any Account or other Collateral
and that payment thereof is to be made directly to the Administrative Agent, and
may itself, if an Event of Default shall have occurred and be continuing, without
notice to or demand upon any Grantor, so notify Account Debtors and other Persons
obligated on Collateral. After the making of such a request or the giving of any
such notification, each Grantor shall, subject to any applicable obligations under
applicable law, hold any proceeds of collection of the Accounts and such other
Collateral received by such Grantor as trustee for the Administrative Agent without
commingling the same with other funds of such Debtor and shall turn the same over to
the Administrative Agent in the identical form received, together with any
necessary endorsements or assignments. The Administrative Agent shall apply the
proceeds of collection of the Accounts and other Collateral received by the
Administrative Agent to the Obligations in accordance with the provisions of the
Credit Agreement, such proceeds to be immediately credited after final payment in
cash or other immediately available funds of the items giving rise to them..

12

 

     (iii) Each Grantor will perform and comply with all of its obligations in
respect of Accounts, Instruments and General Intangibles, except where the failure
to do so could not reasonably be expected to have a Material Adverse Effect.

     (iv) Anything herein to the contrary notwithstanding, each of the Grantors
shall remain liable under each of its Accounts, contracts and agreements to observe
and perform all the conditions and obligations to be observed and performed by it
thereunder, all in accordance with the terms of any agreement giving rise to each
such Account or the terms of such contract or agreement. Neither the Administrative
Agent nor any Secured Party shall have any obligation or liability under any Account
(or any agreement giving rise thereto), contract or agreement by reason of or
arising out of this Agreement or the receipt by the Administrative Agent or any
Secured Party of any payment relating to such Account, contract or agreement
pursuant hereto, nor shall the Administrative Agent or any Secured Party be
obligated in any manner to perform any of the obligations of any Grantor under or
pursuant to any Account (or any agreement giving rise thereto), contract or
agreement, to make any payment, to make any inquiry as to the nature or the
sufficiency of any payment received by it or as to the sufficiency of any
performance by any party under any Account (or any agreement giving rise thereto),
contract or agreement, to present or file any claim, to take any action to enforce
any performance or to collect the payment of any amounts which may have been
assigned to it or to which it may be entitled at any time or times.

     (v) Upon the occurrence and during the continuation of an Event of Default, the
Administrative Agent shall have the right, but not the obligation, to make test
verifications of the Accounts in any manner and through any medium that it
reasonably considers advisable, and the Grantors shall furnish all such assistance
and information as the Administrative Agent may reasonably require in connection
with such test verifications. Upon the Administrative Agent’s written request and
at the expense of the Grantors, the Grantors shall cause their independent public
accountants or others reasonably satisfactory to the Administrative Agent to furnish
to the Administrative Agent reports showing reconciliations, aging and test
verifications of, and trial balances for, the Accounts. Upon the occurrence and
during the continuation of an Event of Default, the Administrative Agent in its own
name or in the name of others may communicate with Account Debtors on the Accounts
to verify with them to the Administrative Agent’s reasonable satisfaction the
existence, amount and terms of any Accounts.

          (c) Intentionally Deleted.

          (d) Patents, Trademarks, Etc. Each Grantor shall notify the Administrative Agent no
later than the date required for delivery of the quarterly Compliance Certificate pursuant to
Section 5.1(d) of the Credit Agreement of the occurrence of each of the following (i) such
Grantor’s acquisition after the date of this Agreement of any Material Intellectual

13

 

Property and (ii) a Responsible Officer of such Grantor obtaining knowledge, or reason to know, that
any application or registration relating to any Material Intellectual Property owned by or licensed
to such Grantor is reasonably likely to become abandoned or dedicated, or of any material adverse
determination or development (including, without limitation, the institution of, or any such
determination or development in, any proceeding in the United States Copyright Office, the United
States Patent and Trademark Office or any court) regarding such Grantor’s ownership of any Material
Intellectual Property, its right to register the same, or to keep and maintain the same, in each
case, except as could not reasonably be expected to have a Material Adverse Effect. Each Grantor
will, contemporaneously herewith, execute and deliver to the Administrative Agent the Patent
Security Agreement, Trademark Security Agreement and Copyright Security Agreement in the forms of
Exhibit A, Exhibit B and Exhibit C hereto, as necessary, and, upon the
Administrative Agent’s written request, shall execute and deliver to the Administrative Agent any
other document required to register or perfect the Administrative Agent’s Security Interest in any
part of the Material Intellectual Property. Notwithstanding anything to the contrary contained in
this Agreement, the Administrative Agent shall only require perfection of its security interests
in, or other registration with respect to, any Patent, Trademark or Copyright registered with a
country other than the United States or any political subdivision thereof, to the extent reasonably
requested by the Administrative Agent and such Patent, Trademark or Copyright constitutes Material
Intellectual Property.

          (e) Deposit Accounts, Chattel Paper, Investment Property and Letters of Credit.

     (i) No Grantor shall open or maintain any Deposit Accounts other than (A) those
listed on the Perfection Certificates attached hereto as Schedule III and
other Deposit Accounts maintained at institutions who are Lenders or Affiliates
thereof, which shall not be required to be subject to control agreements unless
requested by the Administrative Agent while an Event of Default has occurred and is
continuing, (B) Excluded Accounts and (C) such other Deposit Accounts as such
Grantor shall open and maintain that are subject to control agreements, in form and
substance reasonably satisfactory to the Administrative Agent, executed by such
Grantor, the bank at which the Deposit Account is located and the Administrative
Agent.

     (ii) Upon the written request of the Administrative Agent, each Grantor that is
the beneficiary of any Letters of Credit having a value in excess of $5,000,000,
shall use commercially reasonable efforts to arrange for the issuer of such Letter
of Credit to consent to the assignment of the proceeds of such Letter of Credit to
the Administrative Agent, such assignment to be in form and substance reasonably
acceptable to the Administrative Agent.

     (iii) Each Grantor, at any time and from time to time, will use commercially
reasonable efforts to take such steps as the Administrative Agent may reasonably
request from time to time for the Administrative Agent to obtain “control” of any
Investment Property or electronic Chattel Paper, in each case, having a value in
excess of $5,000,000, with any agreements establishing control to be in form and
substance reasonably satisfactory to the Administrative Agent;

14

 

provided, however, so long as no Event of Default shall have occurred and be
continuing, such control agreements shall not be required so long as the security
interest therein created herein shall otherwise be perfected by virtue of the filing
of a financing statement.

          (f) Commercial Tort Claims. If any Grantor shall at any time acquire a “commercial
tort claim” (as such term is defined in the UCC) with a claim for damages that could reasonably be
expected to be in excess of $5,000,000, such Grantor shall, no later than the date required for
delivery of the quarterly Compliance Certificate pursuant to Section 5.1(d) of the Credit
Agreement, notify the Administrative Agent thereof in a writing, providing a reasonable description
and summary thereof, and shall execute a supplement to this Agreement granting a security interest
in such commercial tort claim to the Administrative Agent.

          (g) Insurance. Each Grantor shall have its Equipment and Inventory insured against
loss or damage as required pursuant to Section 5.8 of the Credit Agreement. Each Grantor agrees
that the Administrative Agent, for the ratable benefit of the Secured Parties, shall have a
security interest in the insurance policies maintained by the Grantors pursuant to Section 5.8 of
the Credit Agreement (but Grantors shall have no obligation to take actions to perfect such
security interest, and no representations are made by the Grantors with respect to the
effectiveness of such security interest) and the proceeds of such policies thereof, and if any loss
shall occur during the continuation of an Event of Default, the proceeds relating to the loss or
damage of the Equipment or Inventory shall be applied in accordance with Section 2.13 of the Credit
Agreement. After the occurrence and during the continuation of an Event of Default, the
Administrative Agent shall have the right to file claims under any insurance policies, to receive
receipt and give acquittance for any payments that may be made thereunder, and to execute any and
all endorsements, receipts, releases, assignments, reassignments or other documents that may be
necessary to effect to the collection, compromise, or settlement of any claims under any of the
insurance policies.

     SECTION 5. Reporting and Recordkeeping. Each Grantor covenants and agrees with the
Administrative Agent that from and after the date of this Agreement and until the Secured
Obligations (other than contingent indemnification obligations that have not yet been asserted)
have been indefeasibly paid in full in cash:

          (a) Maintenance of Records Generally. Each Grantor will keep and maintain at its own
cost and expense records of its Collateral as required pursuant to Section 5.6 of the Credit
Agreement. Upon the occurrence and during the continuation of an Event of Default, at the request
of the Administrative Agent, each Grantor will mark its books and records pertaining to its
Collateral to evidence this Agreement and the Security Interests. Upon the written request of the
Administrative Agent, all Chattel Paper having a value in excess of $5,000,000 will be marked with
the following legend: “This writing and the obligations evidenced or secured hereby are subject to
the security interest of SunTrust Bank, as Administrative Agent.” For the Administrative Agent’s
further security, each Grantor agrees that the Administrative Agent shall have a security interest
in all of such Grantor’s books and records pertaining to its Collateral and, upon the occurrence
and during the continuation of any Event of Default, such Grantor shall deliver and turn over full
and complete copies of any such books and records to the Administrative Agent or to its
representatives at any time on demand of the Administrative

15

 

Agent. Each Grantor shall permit any representative of the Administrative Agent to inspect
such books and records as required pursuant to Section 5.7 of the Credit Agreement.

          (b) Special Provision Regarding Maintenance of Records and Reporting Re: Accounts. To
the extent any Account, arises out of a contract with the United States of America, or any
department, agency, subdivision or instrumentality thereof, or of any state (or department, agency,
subdivision or instrumentality thereof) where such state has a state assignment of claims act or
other law comparable to the Federal Assignment of Claims Act, each Grantor will take any action
reasonably requested by the Administrative Agent to give notice of the Administrative Agent’s
security interest in such Accounts under the provisions of the Federal Assignment of Claims Act or
any comparable law or act enacted by any state or local governmental authority.

          (c) Further Identification of Collateral. Each Grantor will if so requested by the
Administrative Agent furnish to the Administrative Agent, as often as the Administrative Agent
reasonably requests but in no event more frequently than once per calendar quarter and without
limit after the occurrence and during the continuation of an Event of Default, statements and
schedules further identifying and describing the Collateral and such other reports in connection
with the Collateral as the Administrative Agent may reasonably request, all in reasonable detail.

     SECTION 6. General Authority. Each Grantor hereby irrevocably appoints, so long as
any Obligations (other than contingent indemnification obligations that have not yet been asserted)
remain outstanding, the Administrative Agent its true and lawful attorney, with full power of
substitution, in the name of such Grantor, the Administrative Agent or otherwise, for the sole use
and benefit of the Administrative Agent on its behalf and on behalf of the Secured Parties, but at
such Grantor’s expense, to exercise, at any time (subject to the proviso below) all or any of the
following powers:

     (i) to file the financing statements, financing statement amendments and
continuation statements referred to in Section 4(a)(iii),

     (ii) to demand, sue for, collect, receive and give acquittance for any and all
monies due or to become due with respect to any Collateral or by virtue thereof,

     (iii) to settle, compromise, compound, prosecute or defend any action or
proceeding with respect to any Collateral,

     (iv) to sell, transfer, assign or otherwise deal in or with the Collateral or
the proceeds or avails thereof, as fully and effectually as if the Administrative
Agent were the absolute owner thereof, and

     (v) to extend the time of payment of any or all thereof and to make any
allowance and other adjustments with reference to the Collateral;

provided, however, that the powers described in clauses (ii), (iii), (iv) and (v)
above may be exercised by the Administrative Agent only if an Event of Default then exists.

16

 

     SECTION 7. Events of Default. Each of the following specified events shall
constitute an Event of Default under this Agreement:

          (a) The existence or occurrence of any “Event of Default” as provided under the terms of the
Credit Agreement;

          (b) Any representation or warranty made by or on behalf of any Grantor under or pursuant to
this Agreement shall have been false or misleading in any material respect when made; or

          (c) Any Grantor shall fail to observe or perform any covenant or agreement set forth in this
Agreement other than those referenced in paragraphs (a) and (b) above, and such failure shall
remain unremedied for thirty (30) days after the earlier of (i) any Responsible Officer of any
Grantor becomes aware of such failure, or (ii) notice thereof shall have been given to any Grantor
by the Administrative Agent or any Secured Party.

     SECTION 8. Remedies upon Event of Default.

          (a) If any Event of Default has occurred and is continuing, the Administrative Agent may,
without further notice, exercise all rights and remedies under this Agreement or any other Loan
Document or that are available to a secured creditor under the UCC or that are otherwise available
at law or in equity, at any time, in any order and in any combination, including to collect any and
all Secured Obligations from the Grantors, and, in addition, the Administrative Agent may sell the
Collateral or any part thereof at public or private sale, for cash, upon credit or for future
delivery, and at such price or prices as the Administrative Agent may deem satisfactory. The
Administrative Agent shall give the Borrower not less than ten (10) days’ prior written notice of
the time and place of any sale or other intended disposition of Collateral, except any Collateral
which is perishable or threatens to decline speedily in value or is of a type customarily sold on a
recognized market. Each Grantor agrees that any such notice constitutes “reasonable notification”
within the meaning of Section 8.9A-611 of the UCC (to the extent such Section or any successor
provision under the UCC is applicable).

          (b) The Administrative Agent may be the purchaser of any or all of the Collateral so sold at
any public sale (or, if such Collateral is of a type customarily sold in a recognized market or is
of a type which is the subject of widely distributed standard price quotations or if otherwise
permitted under applicable law, at any private sale) and thereafter hold the same, absolutely, free
from any right or claim of whatsoever kind. Each Grantor agrees during the existence of an Event
of Default to execute and deliver such documents and take such other action as the Administrative
Agent deems necessary or advisable in order that any such sale may be made in compliance with law.
Upon any such sale the Administrative Agent shall have the right to deliver, assign and transfer to
the purchaser thereof the Collateral so sold. Each purchaser at any such sale shall hold the
Collateral so sold to it absolutely, free from any claim or right of any kind, including any equity
or right of redemption of the Grantors. To the extent permitted by law, each Grantor hereby
specifically waives all rights of redemption, stay or appraisal which it has or may have under any
law now existing or hereafter adopted. The notice (if any) of such sale shall (1) in case of a
public sale, state the time and place fixed for such sale, and (2) in the case of a private sale,
state the day after which such sale may be consummated.

17

 

Any such public sale shall be held at such time or times within ordinary business hours and at
such place or places as the Administrative Agent may fix in the notice of such sale. At any such
sale Collateral may be sold in one (1) lot as an entirety or in separate parcels, as the
Administrative Agent may determine. The Administrative Agent shall not be obligated to make any
such sale pursuant to any such notice. The Administrative Agent may, without notice or publication
(other than any notices required by this Section 8 or by applicable law), adjourn any public or
private sale or cause the same to be adjourned from time to time by announcement at the time and
place fixed for the sale, and such sale may be made at any time or place to which the same may be
so adjourned. In case of any sale of all or any part of the Collateral on credit or for future
delivery, such Collateral so sold may be retained by the Administrative Agent until the selling
price is paid by the purchaser thereof, but the Administrative Agent shall not incur any liability
in case of the failure of such purchaser to take up and pay for such Collateral so sold and, in
case of any such failure, such Collateral may again be sold upon like notice. The Administrative
Agent, instead of exercising the power of sale herein conferred upon it, may proceed by a suit or
suits at law or in equity to foreclose the Security Interests and sell Collateral, or any portion
thereof, under a judgment or decree of a court or courts of competent jurisdiction. The Grantors
shall remain liable for any deficiency.

          (c) For the purpose of enforcing any and all rights and remedies under this Agreement, upon
the occurrence and during the continuation of an Event of Default, the Administrative Agent may (i)
require any Grantor to, and each Grantor agrees that it will, at the joint and several expense of
the Grantors, and upon the request of the Administrative Agent, forthwith assemble all or any part
of its Collateral as directed by the Administrative Agent and make it available at a place
designated by the Administrative Agent which is, in the Administrative Agent’s opinion, reasonably
convenient to the Administrative Agent and such Grantor, whether at the premises of such Grantor or
otherwise, (ii) to the extent permitted by applicable law, enter, with or without process of law
and without breach of the peace, any premise where any such Collateral is or may be located and,
without charge or liability to the Administrative Agent, seize and remove such Collateral from such
premises, (iii) have access to and use such Grantor’s books and records, computers and software
(subject to the terms of applicable licenses) relating to the Collateral, and (iv) prior to the
disposition of any of the Collateral, store or transfer such Collateral without charge in or by
means of any storage or transportation facility owned or leased by such Grantor, process, repair or
recondition such Collateral or otherwise prepare it for disposition in any manner and to the extent
the Administrative Agent deems appropriate and, in connection with such preparation and
disposition, use without charge any trademark, trade name, copyright, patent or technical process
used such Grantor.

          (d) Without limiting the generality of the foregoing, if any Event of Default has occurred and
is continuing:

     (i) the Administrative Agent may (without assuming any obligations or liability
thereunder), at any time and from time to time, enforce (and shall have the
exclusive right to enforce) against any licensee or sublicensee all rights and
remedies of any Grantor in, to and under any Licenses and take or refrain from
taking any action under any thereof, and each Grantor hereby releases the
Administrative Agent from, and agrees to hold the Administrative Agent free and

18

 

harmless from and against any claims arising out of, any lawful action so taken
or omitted to be taken with respect thereto except for the Administrative Agent’s
gross negligence or willful misconduct as determined by a final and nonappealable
decision of a court of competent jurisdiction; and

     (ii) upon request by the Administrative Agent, each Grantor agrees to execute
and deliver to the Administrative Agent powers of attorney, in form and substance
satisfactory to the Administrative Agent, for the implementation of any lease,
assignment, license, sublicense, grant of option, sale or other disposition of any
Intellectual Property, in each case subject to the terms of the applicable License.
In the event of any such disposition pursuant to this Section, each Grantor shall
supply its know-how and expertise relating to the manufacture and sale of the
products bearing Trademarks or the products or services made or rendered in
connection with Patents or Copyrights, and its customer lists and other records
relating to such Intellectual Property and to the distribution of said products, to
the Administrative Agent.

     SECTION 9. Limitation on Duty of Administrative Agent in Respect of Collateral.
Beyond the duties of a secured party set forth in Sections 8.9A-207 through 8.9A-209 of the UCC,
the Administrative Agent shall have no duty as to any Collateral of any Grantor in its possession
or control or in the possession or control of any agent or bailee or any income thereon or as to
the preservation of rights against prior parties or any other rights pertaining thereto. The
Administrative Agent shall be deemed to have exercised reasonable care in the custody of the
Collateral of the Grantors in its possession if such Collateral is accorded treatment substantially
equal to that which it accords its own property, and the Administrative Agent shall not be liable
or responsible for any loss or damage to any of the Grantors’ Collateral, or for any diminution in
the value thereof, by reason of the act or omission of any warehouseman, carrier, forwarding
agency, consignee or other agent or bailee selected by the Administrative Agent in good faith,
except to the extent resulting from the Administrative Agent’s gross negligence or willful
misconduct as determined by a final and nonappealable decision of a court of competent
jurisdiction.

     SECTION 10. Application of Proceeds. The proceeds of any sale of, or other
realization upon, all or any part of the Collateral of the Grantors by the Administrative Agent
following the occurrence and during the continuation of an Event of Default shall be applied by the
Administrative Agent in the manner set forth in Section 8.2 of the Credit Agreement.

     SECTION 11. Concerning the Administrative Agent. The provisions of Article 9 of the
Credit Agreement shall inure to the benefit of the Administrative Agent in respect of this
Agreement and shall be binding upon the parties to the Credit Agreement in such respect. In
furtherance and not in derogation of the rights, privileges and immunities of the Administrative
Agent therein set forth:

          (a) The Administrative Agent is authorized to take all such action as is provided to be taken
by it as the Administrative Agent hereunder or otherwise permitted under the Credit Agreement and
all other action reasonably incidental thereto. As to any matters not expressly provided for
herein or therein, the Administrative Agent may request instructions from

19

 

the Secured Parties and shall act or refrain from acting in accordance with written
instructions from the Required Lenders or, in the absence of such instructions, in accordance with
its discretion.

          (b) The Administrative Agent shall not be responsible for the existence, genuineness or value
of any of the Grantors’ Collateral or for the validity, perfection, priority or enforceability of
the Security Interests, whether impaired by operation of law or by reason of any action or omission
to act on its part. The Administrative Agent shall have no duty to ascertain or inquire as to the
performance or observance of any of the terms of this Agreement by the Grantors.

     SECTION 12. Appointment of Co-Administrative Agents. At any time or times, in order
to comply with any legal requirement in any jurisdiction, the Administrative Agent may appoint
another bank or trust company or one (1) or more other Persons reasonably acceptable to the
Required Lenders and, so long as no Event of Default has occurred or is continuing, the Borrower,
either to act as co-agent or co-agents, jointly with the Administrative Agent, or to act as
separate agent or agents on behalf of the Administrative Agent and the Secured Parties with such
power and authority as may be necessary for the effectual operation of the provisions hereof and
specified in the instrument of appointment (which may, in the discretion of the Administrative
Agent, include provisions for the protection of such co-agent or separate agent similar to the
provisions of Section 11 hereof). Any such Co-Administrative Agent shall have no greater rights
than the Administrative Agent under this Agreement.

     SECTION 13. Expenses. In the event that any Grantor fails to comply with the
provisions of the Credit Agreement, this Agreement or any other Loan Document, such that the value
of any of its Collateral or the validity, perfection, rank or value of the Security Interests are
thereby diminished or potentially diminished or put at risk, the Administrative Agent may, but
shall not be required to, effect such compliance on behalf of such Grantor, and the Grantors shall
jointly and severally reimburse the Administrative Agent for the reasonable and actual costs
thereof in accordance with Section 10.3 of the Credit Agreement. All insurance expenses and all
expenses of protecting, storing, warehousing, appraising, insuring, handling, maintaining and
shipping the Collateral, any and all excise, stamp, intangibles, transfer, property, sales, and use
taxes imposed by any state, federal, or local authority or any other governmental authority on any
of the Collateral, or in respect of periodic appraisals and inspections of the Collateral, or in
respect of the sale or other disposition thereof, shall be borne and paid by the Grantors jointly
and severally; and if the Grantors fail promptly to pay any portion thereof when due, the
Administrative Agent may, at its option, but shall not be required to, pay the same and charge the
Grantors’ accounts therefor, and the Grantors agree jointly and severally to reimburse the
Administrative Agent therefor in accordance with Section 10.3 of the Credit Agreement. All sums so
paid or incurred by the Administrative Agent for any of the foregoing and any and all other sums
for which the Grantors may become liable hereunder and all reasonable and documented out-of-pocket
costs and expenses (including reasonable attorneys’ fees, legal expenses and court costs) incurred
by the Administrative Agent in enforcing or protecting the Security Interests or any of its rights
or remedies thereon shall be payable by the Grantors in accordance with Section 10.3 of the Credit
Agreement and subject to Section 2.14(c) of the Credit Agreement, and shall bear interest (after as
well as before judgment) until paid at the

20

 

default rate of interest set forth in the Credit Agreement and shall be additional Secured
Obligations hereunder.

     SECTION 14. Termination of Security Interests; Release of Collateral. Upon the
Payment in Full in cash of all Secured Obligations, the Security Interests shall terminate and all
rights to the Collateral shall revert to the Grantors, all without delivery of any instrument or
performance of any act by any party. Upon any such termination of the Security Interests or
release of such Collateral, including any such release pursuant to Section 9.8(d) of the Credit
Agreement, the Administrative Agent will promptly upon the Grantor’s request and contemporaneously
with any refinancing of the Obligations or disposition of Collateral permitted pursuant to Section
7.6 of the Credit Agreement, at the expense of the Borrower, (x) execute and deliver to the
Borrower such documents as the Grantors shall reasonably request, but without recourse or warranty
to the Administrative Agent, including but not limited to written authorization to file termination
statements to evidence the termination of the Security Interests in such Collateral and (y) deliver
to the Borrower, at the Borrower’s expense, any portion of the Collateral so released in possession
of the Administrative Agent.

     SECTION 15. Notices. All notices, requests and other communications to the Grantors
or the Administrative Agent hereunder shall be delivered in the manner required by the Credit
Agreement and shall be sufficiently given to the Administrative Agent or any Grantor if addressed
or delivered to them at, in the case of the Administrative Agent and the Borrower, its addresses
and telecopier numbers specified in the Credit Agreement and in the case of any other Grantors, at
their respective addresses and telecopier numbers provided in the Subsidiary Guaranty Agreement.
All such notices and communications shall be deemed to have been duly given at the times set forth
in the Credit Agreement.

     SECTION 16. No Waiver; Remedies Cumulative. No failure or delay on the part of the
Administrative Agent in exercising any right or remedy hereunder, and no course of dealing between
any Grantor on the one hand and the Administrative Agent or any holder of any Note on the other
hand shall operate as a waiver thereof, nor shall any single or partial exercise of any right or
remedy hereunder or any other Loan Document preclude any other or further exercise thereof or the
exercise of any other right or remedy hereunder or thereunder. The rights and remedies herein and
in the other Loan Documents are cumulative and not exclusive of any rights or remedies which the
Administrative Agent would otherwise have. No notice to or demand on the Grantors not required
hereunder in any case shall entitle any Grantor to any other or further notice or demand in similar
or other circumstances or constitute a waiver of the rights of the Administrative Agent to any
other or further action in any circumstances without notice or demand.

     SECTION 17. Successors and Assigns. This Agreement is for the benefit of the
Administrative Agent and the Lenders and their permitted successors and assigns, and in the event
of an assignment of all or any of the Secured Obligations, the rights hereunder, to the extent
applicable to the indebtedness so assigned, may be transferred with such indebtedness. This
Agreement shall be binding on the Grantors and their successors and
assigns; provided, however,
that no Grantor may assign any of its rights or obligations hereunder without the prior written
consent of the Administrative Agent and the Lenders.

21

 

     SECTION 18. Amendments. No amendment or waiver of any provision of this Agreement,
nor consent to any departure by the Grantors herefrom, shall in any event be effective unless the
same shall be in writing and signed by the Administrative Agent, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose for which given.

     SECTION 19. Governing Law; Waiver of Jury Trial.

          (a) THIS AGREEMENT AND THE RIGHTS AND SECURED OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW
PRINCIPLES THEREOF) OF THE COMMONWEALTH OF VIRGINIA, EXCEPT TO THE EXTENT THAT PERFECTION (AND THE
EFFECT OF PERFECTION AND NONPERFECTION) AND CERTAIN REMEDIES MAY BE GOVERNED BY THE LAWS OF ANY
JURISDICTION OTHER THAN VIRGINIA.

          (b) EACH GRANTOR IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE
NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF
VIRGINIA, ALEXANDRIA DIVISION, AND ANY STATE COURT OF THE COMMONWEALTH OF VIRGINIA SITTING IN
FAIRFAX COUNTY, VIRGINIA, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, OR FOR RECOGNITION
OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH VIRGINIA STATE COURT OR, TO THE EXTENT PERMITTED BY APPLICABLE LAW, SUCH FEDERAL
COURT. EACH GRANTOR AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER
MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT
THAT THE ADMINISTRATIVE AGENT, THE ISSUING BANK OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST SUCH GRANTOR OR
ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

          (c) EACH GRANTOR IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING DESCRIBED IN PARAGRAPH
(B) OF THIS SECTION AND BROUGHT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION. EACH
GRANTOR IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

22

 

          (d) EACH GRANTOR IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS IN THE MANNER PROVIDED FOR
NOTICES IN THE CREDIT AGREEMENT. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT WILL
AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

          (e) EACH GRANTOR HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING AMONG THE PARTIES HERETO DIRECTLY
OR INDIRECTLY ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH GRANTOR
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT HAS NOT BEEN INDUCED TO ENTER INTO THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS IN
THIS SECTION.

     SECTION 20. Severability. In case any provision in or obligation under this
Agreement shall be invalid, illegal or unenforceable, in whole or in part, in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or obligations, or of such
provision or obligation in any other jurisdiction, shall not in any way be affected or impaired
thereby.

     SECTION 21. Counterparts. This Agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts (including by telecopy or
by email, in pdf format), each of which when so executed and delivered shall be an original, but
all of which shall together constitute one (1) and the same instruments.

     SECTION 22. Headings Descriptive. The headings of the several sections and
subsections of this Agreement are inserted for convenience only and shall not in any way affect the
meaning or construction of any provision of this Agreement.

     SECTION 23. Additional Grantors. Each Domestic Subsidiary of Borrower that is
required to become a party to this Agreement pursuant to Section 5.11 of the Credit Agreement shall
become a Grantor for all purposes of this Agreement upon execution and delivery by such Domestic
Subsidiary of a joinder agreement in the form of Exhibit D attached hereto.

     SECTION 24. Exempt Student Financial Aid Funds. Notwithstanding anything herein to
the contrary, the Secured Parties and the Administrative Agent acknowledge and agree that any
Exempt Student Financial Aid Funds that come under the control or possession of the Administrative
Agent or any Secured Party in connection with their exercise of remedies and other rights under
this Agreement and the other Loan Documents upon the occurrence and during the continuation of an
Event of Default, are to be held in trust for any applicable Governmental Authority and promptly
remitted to such Governmental Authority as and to the extent required by applicable law.

23

 

     SECTION 25. Educational Licenses.

          (a) Notwithstanding anything to the contrary set forth herein, the Administrative Agent, for
itself and the benefit of Secured Parties, agrees that to the extent prior Governmental Authority
or Accreditor approval is required pursuant to applicable law or accreditation standards and
procedures for (a) the operation and effectiveness of any grant, right or remedy hereunder or under
any Loan Document, or (b) taking any action that may be taken by the Administrative Agent or
Grantors hereunder or under any Loan Document, such grant, right, remedy or actions will be subject
to obtaining in a timely manner such Governmental Authority or Accreditor approval by or in favor
of the Administrative Agent, for itself and the benefit of Secured Parties.

          (b) If an Event of Default shall have occurred and be continuing, the Grantors shall, and, if
applicable, shall cause each of their Subsidiaries to, take any action which the Administrative
Agent may request in the exercise of its rights and remedies under this Agreement and any other
Loan Document in order to transfer or assign any Collateral to the Administrative Agent, for itself
and the benefit of Secured Parties or to such one or more third parties as the Administrative Agent
may designate, or to a combination of the foregoing.

          (c) Upon the occurrence and during the continuation of an Event of Default, the Administrative
Agent is empowered to seek from any Governmental Authority or Accreditor, to the extent required,
consent to or approval of any involuntary transfer of control of any Collateral for the purpose of
seeking a bona fide purchaser to whom control ultimately will be transferred. The Grantors agree
to (i) cooperate with any such purchaser and with the Administrative Agent in the preparation,
execution and filing of any forms and providing any information that may be necessary or helpful in
obtaining the consent of any Governmental Authority or Accreditor to the assignment to such
purchaser of the Collateral or to a change in ownership or control of SUI and (ii) consent to any
such voluntary or involuntary transfer after and during the continuation of an Event of Default
and, without limiting any rights of the Administrative Agent under this Agreement or any Loan
Document, to authorize the Administrative Agent to nominate a trustee or receiver to assume control
of the Collateral, subject only to required judicial or other consents required by any Governmental
Authority or Accreditor, in order to effectuate the transactions contemplated by this Section 25.
Such trustee or receiver shall have all the rights and powers as provided to it by law or court
order, or to the Administrative Agent under this Agreement or any other Loan Document.

[Signature Page Follows]

24

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by its respective duly authorized officers as of the day and year first above written.

	 	 	 	 	 	 	 

	 	 	STRAYER EDUCATION, INC.,	 	 
	 	 	a Maryland corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	STRAYER UNIVERSITY, INC.,	 	 
	 	 	a Maryland corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	EDUCATION LOAN PROCESSING, INC.,	 	 
	 	 	a Virginia corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

	 	 	 	 	 

	ACKNOWLEDGED AND AGREED:	 	 
	 
	SUNTRUST BANK, as Administrative Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

[SIGNATURE PAGE TO SECURITY AGREEMENT]

 

 

SCHEDULE I

LIST OF UCC FILING OFFICES

	 	 	 	 	 
	Name of Grantor	 	State	 	Office(s)
	Strayer Education, Inc.

	 	Maryland
	 	Maryland State Department of Assessments and Taxation
	Strayer University, Inc.

	 	Maryland
	 	Maryland State Department of Assessments and Taxation
	Education Loan Processing, Inc.

	 	Virginia
	 	Virginia State Corporation Commission

 

 

SCHEDULE II

	 	 	 	 	 	 	 
	Grantor’s Exact	 	State of	 	Taxpayer	 	Organizational
	Legal Name	 	Incorporation	 	ID Number	 	ID Number
	Strayer Education, Inc.

	 	Maryland
	 	52-1975978
	 	D04404174
	Strayer University, Inc.

	 	Maryland
	 	52-0500740
	 	D00204388
	Education Loan
Processing, Inc.

	 	Virginia
	 	54-1740372
	 	0437541-6

 

 

SCHEDULE III

PERFECTION CERTIFICATES

[SEE ATTACHED]

 

 

EXHIBIT A

to Security Agreement

PATENT SECURITY AGREEMENT

     This PATENT SECURITY AGREEMENT (this “Agreement”), dated as of ___________, is made
between ___________________, a ____________________ (the “Grantor”), and SUNTRUST BANK, a
Georgia banking corporation, as the Administrative Agent (the “Administrative Agent”), on
its behalf and on behalf of the other banks and lending institutions (the “Lenders”) from
time to time party to the Amended and Restated Revolving Credit and Term Loan Agreement, dated as
of April 4, 2011, by and among Strayer Education, Inc., a Maryland corporation, the Lenders, the
Administrative Agent, and SunTrust Bank, as Issuing Bank and as Swingline Lender (as amended,
restated, supplemented, or otherwise modified from time to time, the “Credit Agreement”).

W I T N E S S E T H:

     WHEREAS, in connection with the Credit Agreement, the Grantor and certain of its affiliates
have executed and delivered a Security Agreement, dated as of April 4, 2011 (as amended,
supplemented, amended and restated or otherwise modified from time to time, the “Security
Agreement”);

     WHEREAS, pursuant to Section 4(d) of the Security Agreement, the Grantor is required
to execute and deliver this Agreement and to grant to the Administrative Agent a continuing
security interest in all of the Patent Collateral (as defined below) to secure all Secured
Obligations; and

     WHEREAS, the Grantor has duly authorized the execution, delivery and performance of this
Agreement;

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Grantor agrees, for the benefit of the Administrative Agent and each
Secured Party, as follows:

     SECTION 1. Definitions. Unless otherwise defined herein or the context otherwise
requires, terms used in this Agreement, including its preamble and recitals, have the meanings
provided (or incorporated by reference) in the Security Agreement.

     SECTION 2. Grant of Security Interest. For good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, to secure all of the Secured Obligations,
the Grantor does hereby mortgage, pledge and hypothecate to the Administrative Agent, and grant to
the Administrative Agent a security interest in, for its benefit and the benefit of each Secured
Party, all of the following property (the “Patent Collateral”), whether now owned or
hereafter acquired or existing by it:

     (a) all letters patent and applications for letters patent throughout the world,
including all patent applications in preparation for filing anywhere in the world and

1

 

including each patent and patent application referred to in Item A of
Schedule I attached hereto;

     (b) all reissues, divisions, continuations, continuations-in-part, extensions, renewals
and reexaminations of any of the items described in clause (a);

     (c) all patent licenses, including each patent license referred to in Item B of
Schedule I attached hereto; and

     (d) all proceeds of, and rights associated with, the foregoing (including license
royalties and proceeds of infringement suits), the right to sue third parties for past,
present or future infringements of any patent or patent application, including any patent or
patent application referred to in Item A of
Schedule I attached hereto, and
for breach or enforcement of any patent license, including any patent license referred to in
Item B of Schedule I attached hereto, and all rights corresponding thereto
throughout the world.

provided that “Patent Collateral” shall not include Excluded Collateral.

     SECTION 3. Security Agreement. This Agreement has been executed and delivered by the
Grantor for the purpose of registering the security interest of the Administrative Agent in the
Patent Collateral with the United States Patent and Trademark Office and corresponding offices in
other countries of the world (subject to Sections 2(j) and 4(d) of the Security
Agreement). The security interest granted hereby has been granted as a supplement to, and not in
limitation of, the security interest granted to the Administrative Agent for its benefit and the
benefit of each Secured Party under the Security Agreement. The Security Agreement (and all rights
and remedies of the Administrative Agent and each Secured Party thereunder) shall remain in full
force and effect in accordance with its terms subject to Section 4 hereof.

     SECTION 4. Release of Security Interest. Upon (i) the sale, transfer or other
disposition of any Patent Collateral in accordance with the Credit Agreement or (ii) Payment in
Full of the Secured Obligations, the Administrative Agent shall promptly upon the Grantor’s request
and contemporaneously with any refinancing of the Obligations, at the Grantor’s expense, execute
and deliver to the Grantor all instruments and other documents as may be necessary or proper to
release the lien on and security interest in such Patent Collateral which has been granted
hereunder.

     SECTION 5. Acknowledgment. The Grantor does hereby further acknowledge and affirm
that the rights and remedies of the Administrative Agent with respect to the security interest in
the Patent Collateral granted hereby are more fully set forth in the Security Agreement, the terms
and provisions of which (including the remedies provided for therein) are incorporated by reference
herein as if fully set forth herein.

     SECTION 6. Loan Document, etc. This Agreement is a Loan Document executed pursuant
to the Credit Agreement and shall (unless otherwise expressly indicated herein) be construed,
administered and applied in accordance with the terms and provisions of the Credit Agreement.

2

 

     SECTION 7. Counterparts. This Agreement may be executed by the parties hereto in
several counterparts, each of which shall be deemed to be an original (whether such counterpart is
originally executed or an electronic copy of an original) and all of which shall constitute
together but one and the same agreement.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their respective officers thereunto duly authorized as of the day and year first above
written.

	 	 	 	 	 	 	 

	 	 	[NAME OF GRANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	SUNTRUST BANK,

     as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 

3

 

SCHEDULE I

to Patent Security Agreement

          Item A. Patents

Issued Patents

	 	 	 	 	 	 	 	 	 
	*Country	 	Patent No.	 	Issue Date	 	Inventor(s)	 	Title
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

Pending Patent Applications

	 	 	 	 	 	 	 	 	 
	*Country	 	Serial No.	 	Filing Date	 	Inventor(s)	 	Title
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

Patent Applications in Preparation

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Expected	 	 	 	 
	*Country	 	Docket No.	 	Filing Date	 	Inventor(s)	 	Title
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

          Item B. Patent Licenses

	 	 	 	 	 	 	 	 	 	 	 
	*Country or	 	 	 	 	 	Effective	 	Expiration	 	Subject
	Territory	 	Licensor	 	Licensee	 	Date	 	Date	 	Matter
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

 

			
	*	 	List items related to the United States first for
ease of recordation. List items related to other countries next, grouped by
country and in alphabetical order by country name.

4

 

EXHIBIT B

to Security Agreement

TRADEMARK SECURITY AGREEMENT

     This TRADEMARK SECURITY AGREEMENT (this “Agreement”), dated as of ___________, is made
between ___________________, a ____________________ (the “Grantor”), and SUNTRUST BANK, a
Georgia banking corporation, as the Administrative Agent (the “Administrative Agent”), on
its behalf and on behalf of the other banks and lending institutions (the “Lenders”) from
time to time party to the Amended and Restated Revolving Credit and Term Loan Agreement, dated as
of April 4, 2011, by and among Strayer Education, Inc., a Maryland corporation, the Lenders, the
Administrative Agent, and SunTrust Bank, as Issuing Bank and as Swingline Lender (as amended,
restated, supplemented, or otherwise modified from time to time, the “Credit Agreement”).

W I T N E S S E T H:

     WHEREAS, in connection with the Credit Agreement, the Grantor and certain of its affiliates
have executed and delivered a Security Agreement, dated as of April 4, 2011 (as amended,
supplemented, amended and restated or otherwise modified from time to time, the “Security
Agreement”);

     WHEREAS, pursuant to Section 4(d) of the Security Agreement, the Grantor is required
to execute and deliver this Agreement and to grant to the Administrative Agent a continuing
security interest in all of the Trademark Collateral (as defined below) to secure all Secured
Obligations; and

     WHEREAS, the Grantor has duly authorized the execution, delivery and performance of this
Agreement;

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Grantor agrees, for the benefit of the Administrative Agent each Secured
Party, as follows:

     SECTION 1. Definitions. Unless otherwise defined herein or the context otherwise
requires, terms used in this Agreement, including its preamble and recitals, have the meanings
provided (or incorporated by reference) in the Security Agreement.

     SECTION 2. Grant of Security Interest. For good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, to secure all of the Secured Obligations,
the Grantor does hereby mortgage, pledge and hypothecate to the Administrative Agent, and grant to
the Administrative Agent a security interest in, for its benefit and the benefit of each Secured
Party, all of the following property (the “Trademark Collateral”), whether now owned or
hereafter acquired or existing by it:

     (a) all trademarks, trade names, corporate names, company names, business names,
fictitious business names, trade styles, service marks, certification marks, collective
marks, logos, other source of business identifiers, prints and labels on which any of the
foregoing have appeared or appear, designs and general intangibles of a like

1

 

nature (all of the foregoing items in this clause (a) being collectively called
a “Trademark”), now existing anywhere in the world or hereafter adopted or acquired,
whether currently in use or not, all registrations and recordings thereof and all
applications in connection therewith, whether pending or in preparation for filing,
including registrations, recordings and applications in the United States Patent and
Trademark Office or in any office or agency of the United States of America or any State
thereof or any foreign country, including those referred to in Item A of
Schedule I attached hereto;

     (b) all Trademark licenses, including each Trademark license referred to in Item
B of Schedule I attached hereto;

     (c) all reissues, extensions or renewals of any of the items described in clause
(a) and (b);

     (d) all of the goodwill of the business connected with the use of, and symbolized by
the items described in, clauses (a) and (b); and

     (e) all proceeds of, and rights associated with, the foregoing, including any claim by
the Grantor against third parties for past, present or future infringement or dilution of
any Trademark, Trademark registration or Trademark license, including any Trademark,
Trademark registration or Trademark license referred to in Item A and Item B
of Schedule I attached hereto, or for any injury to the goodwill associated with the
use of any such Trademark or for breach or enforcement of any Trademark license;

provided that “Trademark Collateral” shall not include Excluded Collateral.

     SECTION 3. Security Agreement. This Agreement has been executed and delivered by the
Grantor for the purpose of registering the security interest of the Administrative Agent in the
Trademark Collateral with the United States Patent and Trademark Office and corresponding offices
in other countries of the world (subject to Sections 2(j) and 4(d) of the Security
Agreement). The security interest granted hereby has been granted as a supplement to, and not in
limitation of, the security interest granted to the Administrative Agent for its benefit and the
benefit of each Secured Party under the Security Agreement. The Security Agreement (and all rights
and remedies of the Administrative Agent and each Secured Party thereunder) shall remain in full
force and effect in accordance with its terms subject to Section 4 hereof.

     SECTION 4. Release of Security Interest. Upon (i) the sale, transfer or other
disposition of any Trademark Collateral in accordance with the Credit Agreement or (ii) the Payment
in Full of the Secured Obligations, the Administrative Agent shall promptly upon the Grantor’s
request and contemporaneously with any refinancing of the Obligations, at the Grantor’s expense,
execute and deliver to the Grantor all instruments and other documents as may be necessary or
proper to release the lien on and security interest in such Trademark Collateral which has been
granted hereunder.

     SECTION 5. Acknowledgment. The Grantor does hereby further acknowledge and affirm
that the rights and remedies of the Administrative Agent with respect to the security

2

 

interest in the Trademark Collateral granted hereby are more fully set forth in the Security
Agreement, the terms and provisions of which (including the remedies provided for therein) are
incorporated by reference herein as if fully set forth herein.

     SECTION 6. Loan Document, etc. This Agreement is a Loan Document executed pursuant
to the Credit Agreement and shall (unless otherwise expressly indicated herein) be construed,
administered and applied in accordance with the terms and provisions of the Credit Agreement.

     SECTION 7. Counterparts. This Agreement may be executed by the parties hereto in
several counterparts, each of which shall be deemed to be an original (whether such counterpart is
originally executed or an electronic copy of an original) and all of which shall constitute
together but one and the same agreement.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their respective officers thereunto duly authorized as of the day and year first
above written.

	 	 	 	 	 	 	 

	 	 	[NAME OF GRANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	SUNTRUST BANK

     as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 

3

 

SCHEDULE I

to Trademark Security Agreement

          Item A. Trademarks

Registered Trademarks

	 	 	 	 	 	 	 
	*Country	 	Trademark	 	Registration No.	 	Registration Date
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

Pending Trademark Applications

	 	 	 	 	 	 	 
	*Country	 	Trademark	 	Serial No.	 	Filing Date
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

Trademark Applications in Preparation

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Expected	 	Products/
	*Country	 	Trademark	 	Docket No.	 	Filing Date	 	Services
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

          Item B. Trademark Licenses

	 	 	 	 	 	 	 	 	 	 	 
	*Country or	 	 	 	 	 	 	 	Effective	 	Expiration
	Territory	 	Trademark	 	Licensor	 	Licensee	 	Date	 	Date
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

 

			
	*	 	List items related to the United States first for
ease of recordation. List items related to other countries next, grouped by
country and in alphabetical order by country name.

 

 

EXHIBIT C

to Security Agreement

COPYRIGHT SECURITY AGREEMENT

     This COPYRIGHT SECURITY AGREEMENT (this “Agreement”), dated as of ___________, is made
between ___________________, a ____________________ (the “Grantor”), and SUNTRUST BANK, a
Georgia banking corporation, as the Administrative Agent (the “Administrative Agent”), on
its behalf and on behalf of the other banks and lending institutions (the “Lenders”) from
time to time party to the Amended and Restated Revolving Credit and Term Loan Agreement, dated as
of April 4, 2011, by and among Strayer Education, Inc., a Maryland corporation the Lenders, the
Administrative Agent, and SunTrust Bank, as Issuing Bank and as Swingline Lender (as amended,
restated, supplemented, or otherwise modified from time to time, the “Credit Agreement”).

W I T N E S S E T H:

     WHEREAS, in connection with the Credit Agreement, the Grantor and certain of its affiliates
have executed and delivered a Security Agreement, dated as of April 4, 2011 (as amended,
supplemented, amended and restated or otherwise modified from time to time, the “Security
Agreement”);

     WHEREAS, pursuant to Section 4(d) of the Security Agreement, the Grantor is required
to execute and deliver this Agreement and to grant to the Administrative Agent a continuing
security interest in all of the Copyright Collateral (as defined below) to secure all Secured
Obligations; and

     WHEREAS, the Grantor has duly authorized the execution, delivery and performance of this
Agreement;

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Grantor agrees, for the benefit of the Administrative Agent and each
Secured Party, as follows:

     SECTION 1. Definitions. Unless otherwise defined herein or the context otherwise
requires, terms used in this Agreement, including its preamble and recitals, have the meanings
provided (or incorporated by reference) in the Security Agreement.

     SECTION 2. Grant of Security Interest. For good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, to secure all of the Secured Obligations,
the Grantor does hereby mortgage, pledge and hypothecate to the Administrative Agent, and grant to
the Administrative Agent a security interest in, for its benefit and the benefit of each Secured
Party, all of the following property (the “Copyright Collateral”), whether now owned or
hereafter acquired or existing by it, being all copyrights (including all copyrights for
semi-conductor chip product mask works) of the Grantor, whether statutory or common law, registered
or unregistered, now or hereafter in force throughout the world including all of the Grantor’s
right, title and interest in and to all copyrights registered in the United States Copyright Office
or anywhere else in the world and also including the copyrights referred to in Item A of
Schedule I attached hereto, and all applications for registration thereof, whether pending
or in preparation,

 

 

all copyright licenses, including each copyright license referred to in Item B of
Schedule I attached hereto, the right to sue for past, present and future infringements of
any thereof, all rights corresponding thereto throughout the world, all extensions and renewals of
any thereof and all proceeds of the foregoing, including licenses, royalties, income, payments,
claims, damages and proceeds of suit; provided that “Copyright Collateral” shall not
include Excluded Collateral.

     SECTION 3. Security Agreement. This Agreement has been executed and delivered by the
Grantor for the purpose of registering the security interest of the Administrative Agent in the
Copyright Collateral with the United States Copyright Office and corresponding offices in other
countries of the world (subject to Sections 2(j) and 4(d) of the Security
Agreement). The security interest granted hereby has been granted as a supplement to, and not in
limitation of, the security interest granted to the Administrative Agent for its benefit and the
benefit of each Secured Party under the Security Agreement. The Security Agreement (and all rights
and remedies of the Administrative Agent and each Secured Party thereunder) shall remain in full
force and effect in accordance with its terms subject to Section 4.

     SECTION 4. Release of Security Interest. Upon (i) the sale, transfer or other
disposition of any Copyright Collateral in accordance with the Credit Agreement or (ii) the Payment
in Full of the Secured Obligations, the Administrative Agent shall promptly upon the Grantor’s
request and contemporaneously with any refinancing of the Obligations, at the Grantor’s expense,
execute and deliver to the Grantor all instruments and other documents as may be necessary or
proper to release the lien on and security interest in such Copyright Collateral which has been
granted hereunder.

     SECTION 5. Acknowledgment. The Grantor does hereby further acknowledge and affirm
that the rights and remedies of the Administrative Agent with respect to the security interest in
the Copyright Collateral granted hereby are more fully set forth in the Security Agreement, the
terms and provisions of which (including the remedies provided for therein) are incorporated by
reference herein as if fully set forth herein.

     SECTION 6. Loan Document, etc. This Agreement is a Loan Document executed pursuant
to the Credit Agreement and shall (unless otherwise expressly indicated herein) be construed,
administered and applied in accordance with the terms and provisions of the Credit Agreement.

     SECTION 7. Counterparts. This Agreement may be executed by the parties hereto in
several counterparts, each of which shall be deemed to be an original (whether such counterpart is
originally executed or an electronic copy of an original) and all of which shall constitute
together but one and the same agreement.

6

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their respective officers thereunto duly authorized as of the day and year first above
written.

	 	 	 	 	 	 	 

	 	 	[NAME OF GRANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	SUNTRUST BANK

     as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 

7

 

EXHIBIT D

to Security Agreement

SUPPLEMENT TO SECURITY AGREEMENT — ADDITIONAL GRANTOR

          THIS SUPPLEMENT TO SECURITY AGREEMENT — ADDITIONAL GRANTOR (this “Supplement”), dated
as of _____________ __, 201_, is executed
by [NAME — IN ALL CAPS], a [State] [Entity] (the “New
Grantor”), in favor of SUNTRUST BANK, a Georgia banking corporation, as Administrative Agent
(the “Administrative Agent”), on its behalf and on behalf of the other banks and lending
institutions (the “Lenders”) from time to time party to the Amended and Restated Revolving
Credit and Term Loan Agreement, dated as of April 4, 2011, by and among Borrower, the Lenders, the
Administrative Agent, and SunTrust Bank, as Issuing Bank and as Swingline Lender (as amended,
restated, supplemented, or otherwise modified from time to time, the “Credit Agreement”).
Terms used herein but not defined herein shall have the meaning defined for those terms in the
Security Agreement (as defined below).

W I T N E S S E T H:

          WHEREAS, Borrower and certain Domestic Subsidiaries of Borrower (the “Grantors”) are
parties to that certain Security Agreement, dated as of April 4, 2011, by and among the Grantors in
favor the Administrative Agent (as amended, restated, supplemented or otherwise modified from time
to time, the “Security Agreement”), pursuant to which the Grantors have granted a security
interest in and to the Collateral to the Administrative Agent, for itself and the benefit of the
Secured Parties;

          WHEREAS, the Lenders have agreed to make Loans and the Issuing Bank has agreed to issue
Letters of Credit to the Borrower on the terms and conditions contained therein;

          WHEREAS, it is a condition precedent to the continued extension of the Loans and the continued
issuance of Letters of Credit under the Credit Agreement that the New Grantor grant to
Administrative Agent a security interest in all of its Collateral, and the New Grantor wishes to
fulfill said condition precedent;

          NOW, THEREFORE, in consideration of the premises and in order to ensure the compliance with
the Credit Agreement, the New Grantor hereby agrees as follows:

          SECTION 1. Security Interest. As security for the payment and performance of the
Secured Obligations, the New Grantor hereby pledges, assigns, hypothecates, sets over and conveys
to the Administrative Agent on its behalf and on behalf of the Secured Parties and grants to the
Administrative Agent on its behalf and on behalf of the Secured Parties a continuing security
interest in and to, all of its rights in and to all Collateral now or hereafter owned or acquired
by such Grantor or in which such Grantor now has or hereafter has or acquires any rights, and
wherever located. The Security Interests are granted as security only and shall not subject the
Administrative Agent or any Secured Party to, or transfer to the Administrative Agent

 

 

or any Secured Party, or in any way affect or modify, any obligation or liability of the
Grantor with respect to any Collateral or any transaction in connection therewith.

          SECTION 2. Joinder. In accordance with Section 23 of the Security Agreement,
the New Grantor by its signature below becomes a Grantor under the Security Agreement with the same
force and effect as if originally named therein as a Grantor and the New Grantor hereby (i) agrees
to all the terms and provisions of the Security Agreement applicable to it as Grantor thereunder
and (ii) represents and warrants that the representations and warranties made by it as a Grantor
thereunder are true and correct on and as of the date hereof. After giving effect to Section
8 of this Supplement, each reference to a Grantor in the Security Agreement shall be deemed to
include the New Grantor. The Security Agreement is hereby incorporated herein by reference.

          SECTION 3. Representations and Warranties. The New Grantor represents and warrants
to the Administrative Agent and the Secured Parties that this Supplement has been duly authorized,
executed and delivered by it and that each of this Supplement and the Security Agreement
constitutes its legal, valid and binding obligation, enforceable against it in accordance with its
terms.

          SECTION 4. Binding Effect. This Supplement shall become effective when it shall have
been executed by the New Grantor and acknowledged and agreed to by the Administrative Agent and
thereafter shall be binding upon the New Grantor and shall inure to the benefit of the
Administrative Agent and the Secured Parties. Upon the effectiveness of this Supplement, this
Supplement shall be deemed to be a part of and shall be subject to all the terms and conditions of
the Security Agreement. The New Grantor shall not have the right to assign its rights hereunder or
any interest herein without the prior written consent of the Lenders.

          SECTION 5. Governing Law. THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE COMMONWEALTH
OF VIRGINIA.

          SECTION 6. Execution in Counterparts. This Supplement may be executed in any number
of counterparts, each of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement.

          SECTION 7. Notices to New Grantor. All communications and notices hereunder shall be
in writing and given as provided in Section 15 of the Security Agreement. All
communications and notices hereunder to the New Grantor shall be given to it at the address set
forth under its signature below, with a copy to the Borrower.

          SECTION 8. Schedules. For the purposes of Section 2(c) of the Security
Agreement, Schedule I, attached hereto and incorporated herein by reference, lists the UCC
filing office for each New Grantor; for the purposes of Section 2(f) of the Security
Agreement, Schedule II, attached hereto and incorporated herein by reference, correctly
sets forth the information required to be listed pursuant to such section for each New Grantor; and
for the purposes of Section 2(tg) of the Security Agreement, the Perfection Certificate
attached hereto as

 

 

Schedule III correctly sets forth the information required to be identified thereon for
each New Grantor.

[SIGNATURES TO FOLLOW NEXT PAGE]

 

 

          IN WITNESS WHEREOF, the New Grantor has duly executed this Supplement to the Security
Agreement as of the day and year first above written.

	 	 	 	 	 	 	 

	 	 	[NAME OF NEW GRANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	Address:	 	 

Acknowledged and Agreed to:

	 	 	 	 	 

	SUNTRUST BANK	 	 
	as Administrative Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

 

 

Schedule I

List of UCC Filing Offices

	 	 	 	 	 
	Name of Grantor	 	State	 	Office(s)
	 
	 	 	 	 
	 
	 	 	 	 

 

 

Schedule II

Organizational Information

	 	 	 	 	 	 	 
	Grantor’s Exact	 	State of	 	Taxpayer	 	Organizational
	Legal Name	 	Incorporation	 	ID Number	 	ID Number
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 

 

 

Schedule III

Form of Perfection Certificate

PERFECTION CERTIFICATE

     ____________, a ________________ (the “Grantor”), hereby certifies, with reference to a
certain Security Agreement, dated as of April [__], 2011 (terms defined in such Security Agreement
having the same meanings herein as specified therein), from the Grantor in favor of SunTrust Bank,
as Administrative Agent, as follows:

     1. Other Names, Etc. The following is a list of all other names (including trade
names or similar appellations) used by the Grantor, or any other business or organization to which
the Grantor became the successor by merger, consolidation, acquisition, change in form, nature or
jurisdiction of organization or otherwise, now or at any time during the past five years.

     2. Chief Executive Offices.

	 	(a)	 	The following is the mailing address of the Grantor:
	 
	 	(b)	 	If different from its mailing address, the Grantor’s place of
business or, if more than one (1), its chief executive office is located at the
following address:

	 	 	 	 	 

	Address
	 	County
	 	State
	 
	 	 
	 	 
	 	 	 	 	 

	 	(c)	 	The following are the other chief executive offices of the
Grantor over the last five years:

	 	 	 	 	 

	Address
	 	County
	 	State
	 
	 	 
	 	 
	 	 	 	 	 

     3. Other Current Locations.

	 	(a)	 	The following are all other locations in the United States of
America in which the Grantor maintains any books or records relating to any of
the Collateral consisting of accounts, instruments, chattel paper, general
intangibles or mobile goods;

	 	 	 	 	 

	Address
	 	County
	 	State
	 
	 	 
	 	 
	 	 	 	 	 

 

 

	 	(b)	 	The following are all other places of business of the Grantor
in the United States of America:

	 	 	 	 	 

	Address
	 	County
	 	State
	 
	 	 
	 	 
	 	 	 	 	 

	 	(c)	 	The following are all other locations in the United States of
America where any of the Collateral consisting of inventory or equipment is
located:

	 	 	 	 	 

	Address
	 	County
	 	State
	 
	 	 
	 	 
	 	 	 	 	 

	 	(d)	 	The following are the names and addresses of all persons or
entities other than the Grantor, such as lessees, consignees, warehousemen or
purchasers of chattel paper, which have possession or are intended to have
possession of any of the Collateral consisting of instruments, chattel paper,
inventory or equipment:

	 	 	 	 	 

	Address
	 	County
	 	State
	 
	 	 
	 	 
	 	 	 	 	 

     4. Letters of Credit. Set forth below are all letters of credit under which the
Grantor is a beneficiary.

	 	 	 	 	 

	Issuer
	 	Amount
	 	Expiry
	 
	 	 
	 	 
	 	 	 	 	 

     5. Intellectual Property. Attached hereto as Schedule 7 is a complete list of
all United States and foreign patents, copyrights, trademarks, trade names and service marks
registered or for which applications are pending in the name of the Grantor.

     6. Securities; Instruments. Attached hereto as Schedule 8 is a complete list
of all stocks, bonds, debentures, notes and other securities and investment property owned by the
Grantor.

     7. Bank Accounts. The following is a complete list of all bank accounts (including
securities and commodities accounts) maintained by the Grantor other than bank accounts maintained
with the Administrative Agent:

 

 

	 	 	 	 	 	 	 
	Depository Bank	 	Bank Address	 	Type of Account	 	Acct. No.
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

 

     IN WITNESS WHEREOF, the Grantor certifies that the foregoing is true and correct in all
material respects as of
___________, 201___.

	 	 	 	 	 	 	 

	 	 	[_______________________________________________]
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

PLEDGE AGREEMENT

     THIS PLEDGE AGREEMENT (this “Pledge Agreement”), dated as of April 4, 2011, among
STRAYER EDUCATION, INC., a Maryland corporation (the “Borrower”), the Domestic Subsidiaries
of the Borrower signatory hereto and each other Domestic Subsidiary of a Borrower hereafter a party
hereto (each, a “Subsidiary Pledgor,” and collectively the “Subsidiaries Pledgors;”
Borrower, each Subsidiary Pledgor and each other Subsidiary hereafter becoming a party hereto shall
be collectively known as the “Pledgors,” and individually, as “Pledgor”), in favor
of SUNTRUST BANK, a Georgia banking corporation, as Administrative Agent (the “Administrative
Agent”), on its behalf and on behalf of the other banks and lending institutions (the
“Lenders”) from time to time party to the Amended and Restated Revolving Credit and Term
Loan Agreement, dated as of the date hereof, by and among the Borrower, the Administrative Agent,
the Lenders, and SunTrust Bank, as Issuing Bank and Swingline Lender (as amended, restated,
supplemented, or otherwise modified from time to time, the “Credit Agreement”).

W I T N E S S E T H:

     WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to establish a revolving
credit facility for, and make term loans to, the Borrower;

     WHEREAS, it is a condition precedent to the obligations of the Administrative Agent, the
Issuing Bank, the Swingline Lender and the Lenders under the Credit Agreement that each Pledgor
grant to Administrative Agent a security interest in all of its Pledged Collateral (as defined
below), to secure all obligations of the Borrower under the Credit Agreement, secure the
obligations of each Subsidiary of the Borrower under the Subsidiary Guaranty Agreement and all
other Loan Documents to which each Pledgor is a party, to secure all Hedging Obligations owed by
any Loan Party to any Lender or Affiliate of any Lender or to any Person that was a Lender or an
Affiliate of a Lender at the time the applicable Hedging Transaction was entered into, and to
secure all Treasury Management Obligations owed by any Loan Party to any Lender or Affiliate of any
Lender or to any Person that was a Lender or an Affiliate of a Lender at the time the applicable
agreement giving rise to such Treasury Management Obligations was entered into, and each Pledgor
wishes to fulfill said condition precedent;

     WHEREAS, the Pledgors are the record and beneficial owners of all of the issued and
outstanding shares of common stock listed on Part A of Schedule I attached hereto (the
“Pledged Shares”) and are the record and beneficial owners of all membership interests
listed on Part B of Schedule I attached hereto (the “Pledged Membership
Interests”), such Pledged Shares and Pledged Membership Interests being all of the Capital
Stock of the Pledgors’ Domestic Subsidiaries and 65% of the voting Capital Stock and 100% of the
non-voting Capital Stock of the Pledgors’ Foreign Subsidiaries; and

     WHEREAS, the Pledgors are the record and beneficial owners of the promissory notes and
instruments described on Schedule II attached hereto (the “Pledged Notes”).

 

 

     NOW, THEREFORE, in order to induce Lenders to extend the Loans and the Issuing Bank to issue
Letters of Credit and to make the financial accommodations as provided for in the Credit Agreement
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     1. Defined Terms. All capitalized terms used but not otherwise defined herein have the
meanings given to them in the Credit Agreement. The following additional terms, when used in this
Agreement, shall have the following meanings:

     “Secured Parties” shall mean the Administrative Agent, the Lenders, the Specified
Hedge Providers and the Specified Treasury Management Providers.

     2. Pledge. Each Pledgor hereby pledges to the Administrative Agent, for its benefit
and the benefit of the Secured Parties and grants to the Administrative Agent, for its benefit and
the benefit of the Secured Parties, a first priority security interest in all of such Pledgor’s
right, title and interest in, to and under the following property, whether now owned by or owing
to, or hereafter acquired by or arising in favor of such Pledgor (collectively, the “Pledged
Collateral”):

          (a) The Pledged Shares and the certificates representing the Pledged Shares, and, except as
provided for in Section 8 hereof, all dividends, cash, instruments and other property or
proceeds from time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of the Pledged Shares;

          (b) Any stock or other securities acquired by any Pledgor or such Pledgor’s designees with
respect to, incident to or in lieu of the Pledged Shares or with respect to, incident to or in lieu
of the Pledged Collateral (x) due to any dividend, stock-split, stock dividend or distribution on
dissolution, or partial or total liquidation, or for any other reason, (y) in connection with a
reduction of capital, capital surplus or paid-in-surplus or (z) in connection with any spin-off,
split-off, reclassification, readjustment, merger, consolidation, sale of assets, combination of
shares or any other plan of distribution affecting of the those companies listed on Schedule I;

          (c) Any subscription or other rights or options issued in connection with the Pledged Shares,
and, if exercised by any Pledgor, all new shares or other securities so acquired by such Pledgor,
which shall promptly be assigned and delivered to the Administrative Agent and held under the terms
of this Pledge Agreement in the same manner as the Pledged Shares originally pledged hereunder;

          (d) Any and all proceeds, monies, income and benefits arising from or by virtue of, and all
dividends and distributions (cash or otherwise) payable or distributable with respect to, all or
any of the Pledged Shares or other securities and rights and interests described in this
Section 2, except as provided for in Section 8 hereof;

          (e) The Pledged Membership Interests, if any, and any certificates at any time representing
the Pledged Membership Interests, it being understood that the Pledged Membership Interests are, as
of the date hereof, uncertificated, and all cash, securities, dividends,

2

 

rights, and other property at any time and from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of the Pledged Membership Interests;

          (f) All of such Pledgor’s right, title and interest as a member in each limited liability
company listed on Part B of Schedule I (the “LLCs”), whether now owned or hereafter
acquired, including all of such Pledgor’s right, title and interest in, to and under the limited
liability company agreements described on Part B of Schedule I (as such agreements have heretofore
been and may hereafter be amended, restated, supplemented or otherwise modified from time to time,
collectively, the “LLC Agreements”) to which it is a party (including the right to vote
with respect to and to manage and administer the business of such LLCs), together with all other
rights, interests, claims and other property of such Pledgor in any manner arising out of or
relating to its membership interest in the LLCs, whatever their respective kind or character,
whether they are tangible or intangible property, and wheresoever they may exist or be located, and
further including, without limitation, (1) all rights of such Pledgor to receive distributions of
any kind, in cash or otherwise, due or to become due under or pursuant to each such LLC Agreement
or otherwise in respect of such LLCs, (2) all rights of such Pledgor to receive proceeds of any
insurance, indemnity, warranty or guaranty with respect to each such LLCs, (3) all claims of such
Pledgor for damages arising out of, or for the breach of, or for a default under, each such LLC
Agreement, (4) any certificated security or uncertificated security evidencing any of the
foregoing issued by such LLCs to such Pledgor, (5) any interest of such Pledgor in the entries on
the books of any financial intermediary pertaining to such Pledgor’s interest as a member in the
LLCs and (6) to the extent not included in the foregoing, all proceeds of any and all of the
foregoing; provided, however, that notwithstanding anything herein to the contrary;

          (i) Each Pledgor shall remain liable under the LLC Agreements to the extent set forth
therein to perform all of its duties and obligations thereunder to the same extent as if
this Pledge Agreement had not been executed;

          (ii) The exercise by the Administrative Agent of any of its rights hereunder shall not
release any Pledgor from any of its duties or obligations under the LLC Agreements (other
than to the extent a Pledgor is precluded from performing such duties solely as a result of
the Administrative Agent’s having exercised such rights or remedies);

          (iii) Administrative Agent shall not have any obligation or liability under the LLC
Agreements by reason of this Pledge Agreement, nor shall the Administrative Agent be
obligated to perform any of the obligations or duties of the Pledgors thereunder, to make
any payment, to make any inquiry as to the nature or sufficiency of any payment received by
the Pledgors or the sufficiency of any performance by any party under any such LLC
Agreement, or to take any action to collect or enforce any claim for payment assigned
hereunder; and

          (iv) Without limiting the generality of the foregoing, neither the grant of the
security interest in the Pledged Collateral in favor of the Administrative Agent as provided
herein nor the exercise by the Administrative Agent of any of its rights

3

 

hereunder nor any action by the Administrative Agent in connection with a foreclosure on the Pledged Collateral shall be deemed to constitute the Administrative Agent or any
other Secured Party a member of any limited liability company;

          (g) The Pledged Notes and the instruments and other documents representing the Pledged Notes,
and all interest, cash, instruments and other property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for the Pledged Notes; and

          (h) All additional promissory notes from time to time acquired by such Pledgor in any manner
and the instruments and other documents representing such promissory notes and all interest, cash,
instruments and other property, or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such promissory notes;

provided, that “Pledged Collateral” shall not include Excluded Collateral.

     3. Security For Secured Obligations. This Pledge Agreement and the Pledged Collateral
secure the prompt payment, in full when due, whether at stated maturity, by acceleration or
otherwise, and performance of (i) with respect to the Borrower, all Obligations of Borrower under
the Credit Agreement and the other Loan Documents (whether for principal, interest, fees, expenses,
indemnity or reimbursement payments, or otherwise, as provided in the Credit Agreement or such
other Loan Documents) and all other Obligations of the Borrower, (ii) with respect to the
Subsidiary Pledgors, all obligations of each such Subsidiary Pledgor under the Subsidiary Guaranty
Agreement and all other Loan Documents to which such Pledgor is a party (whether for principal,
interest, fees, expenses, indemnity or reimbursement payments, or otherwise, as provided in the
Credit Agreement or such other Loan Documents) and all other Obligations of the Subsidiary
Pledgors, (iii) all renewals, extensions, refinancings and modifications thereof and (iv) all
interest, charges, expenses, fees, attorneys’ fees and other sums required to be paid by any
Pledgor under the Credit Agreement, under this Pledge Agreement or under any of the other Loan
Documents (collectively, the “Secured Obligations”).

     4. Delivery Of Pledged Collateral. All certificates, promissory notes and instruments
representing or evidencing the Pledged Collateral (other than the Capital Stock of PEI) shall be
delivered to and held by or on behalf of the Administrative Agent pursuant hereto. All such
certificated Pledged Shares and certificated Pledged Membership Interests shall be accompanied by
duly executed, undated instruments of transfer or assignment endorsed in blank, all in form and
substance satisfactory to the Administrative Agent. All Pledged Notes shall be endorsed by the
applicable Pledgor. Upon the occurrence and during the continuation of an Event of Default, the
Administrative Agent shall have the right, at any time in its discretion and without notice to any
Pledgor, to transfer to or to register in the name of the Administrative Agent or any of its
nominees any or all of the Pledged Shares or Pledged Membership Interests. In addition, the
Administrative Agent shall have the right, upon the occurrence and during the continuation of an
Event of Default, to exchange certificates or instruments representing or evidencing Pledged Shares
or Pledged Membership Interests for certificates or instruments of smaller or larger denominations.

4

 

     5. Representations and Warranties. Each Pledgor represents and warrants to the Secured
Parties as follows:

          (a) Each Pledgor is, and at the time of delivery of the Pledged Shares and Pledged Membership
Interests to the Administrative Agent pursuant to Section 4 hereof will be, the sole holder
of record and the sole beneficial owner of the Pledged Collateral pledged by such Pledgor, free and
clear of any Lien thereon or affecting the title thereto except for Permitted Encumbrances.

          (b) All of the Pledged Shares and Pledged Membership Interests have been duly authorized,
validly issued and, with respect to any issuer that is a corporation, are fully paid and
non-assessable and all documentary, stamp, or other taxes or fees owing in connection with the
issuance, transfer and/or pledge thereof hereunder have been paid and will be hereafter paid by
each Pledgor as same becomes due and payable, except where the same are currently being contested
in good faith by appropriate proceedings and for which such Pledgor has set aside on its books
adequate reserves in accordance with GAAP.

          (c) No dispute, counterclaim or defense exists with respect to all or any part of the Pledged
Collateral.

          (d) Each Pledgor has the requisite corporate authority to pledge, assign, transfer, deliver,
deposit and set over its Pledged Collateral to the Administrative Agent as provided herein.

          (e) There are no restrictions, other than applicable laws and regulations affecting the
offering and/or transfer of the Pledged Collateral, upon the transfer, hypothecation or pledge of
any of the Pledged Collateral.

          (f) None of the Pledged Shares or Pledged Membership Interests have been issued or transferred
in violation of the securities registration, securities disclosure or similar laws of any
jurisdiction to which such issuance or transfer may be subject.

          (g) Part A of Schedule I hereto lists the authorized shares of common stock, the par
value thereof and the number of issued and outstanding shares of common stock of each issuer of
Pledged Shares. As of the date hereof, (i) no subscription, warrant, option or other rights to
purchase or acquire any shares of any class of capital stock of any issuer of Pledged Shares is
authorized and outstanding, and (ii) there is no commitment by any issuer of Pledged Shares to
issue any such shares, warrants, options or other such rights or securities.

          (h) Part B of Schedule I hereto lists all of the issued and outstanding membership
interests of each issuer of Pledged Membership Interests. As of the date hereof, (i) no
subscription, warrant, option or other rights to purchase or acquire any membership interests of
any issuer of Pledged Membership Interests is authorized and outstanding, and (ii) there is no
commitment by any issuer of Pledged Membership Interests to issue any such warrants, options or
other such rights or securities.

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          (i) The pledge by each Pledgor of its Pledged Collateral is not in contravention of any
applicable law or of any agreement to which such Pledgor is party or by which such Pledgor is
otherwise bound, and no consent, approval, authorization or other order of, or other action by, any
Person or notice to or filing with, any Person is required (x) for the pledge by such Pledgor of
the Pledged Collateral pursuant to this Pledge Agreement or for the execution, delivery or
performance of this Pledge Agreement by such Pledgor or (y) for the exercise by the Administrative
Agent of the voting or other rights provided for in this Pledge Agreement, or the remedies in
respect of the Pledged Collateral pursuant to this Pledge Agreement (except as may (A) have already
been obtained or made or (B) be required by applicable laws or regulations in connection with any
disposition of any portion of the Pledged Collateral).

          (j) The pledge, assignment and delivery of the Pledged Collateral constituing certificated
securities together with duly executed, undated instruments of transfer or assignment endorsed in
blank pursuant to this Pledge Agreement will create a valid first priority Lien on and a first
priority perfected security interest in the Pledged Collateral and the proceeds thereof, securing
the payment of the Secured Obligations and no filing or other action is necessary to perfect or
protect such security interest, except that (i) the filing of a financing statement, the taking of
possession or some other action may be required under Section 8.9A-315 of the Uniform Commercial
Code as in effect in the Commonwealth of Virginia (the “UCC”) to perfect a security
interest in certain proceeds of the Pledged Collateral that do not constitute Pledged Shares or
other securities or instruments and (ii) the filing of a financing statement under Sections
8.9A-312 and 8.9A-314 of the UCC may be required to perfect a security interest in any Pledged
Collateral that constitutes “investment property” (other than the Pledged Shares) with respect to
which the Administrative Agent does not have “control” (as such terms are defined in the UCC).

          (k) All of the representations and warranties made by or on behalf of a Pledgor in the Credit
Agreement and the other Loan Documents are true and correct in all material respects, are
incorporated herein by this reference and deemed to be made herein by such Pledgor for purposes of
this Pledge Agreement, in each case, on and as of the date hereof and the date of any Borrowing or
the date of issuance, amendment, extension or renewal of any Letter of Credit (except to the extent
stated to relate to a specific earlier date, in which case such representations and warranties
shall be true and correct in all material respects as of such earlier date).

          (l) Each of the Pledged Notes issued by a Pledgor or a Subsidiary thereof is the legal, valid
and binding obligation of the obligor thereof, enforceable in accordance with its terms, and has
been duly authorized, authenticated or issued and delivered by the issuer thereof, and no such
issuer is in default thereunder. Except as disclosed on Schedule II hereto, none of the
Pledged Notes are subordinated in right of payment to other indebtedness (except for the Secured
Obligations) or subject to the terms of an indenture.

          (m) This Pledge Agreement has been duly authorized, executed and delivered by each Pledgor and
constitutes a legal, valid and binding obligation of such Pledgor enforceable against such Pledgor
in accordance with its terms, except as enforceability may be limited by

6

 

applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

     The representations and warranties set forth in this Section 5 shall survive the
execution and delivery of this Pledge Agreement. The representations and warranties set forth in
Sections 5(b) and (f) shall not apply to any Pledgor with respect to the Pledged Shares of PEI.

     6. Covenants. Each Pledgor covenants and agrees that from and after the date of this
Pledge Agreement and until the payment and performance in full of all of the Secured Obligations
(other than contingent indemnification obligations that have not yet been asserted) of such
Pledgor:

          (a) Except as permitted by the Credit Agreement, such Pledgor shall not sell, assign,
transfer, pledge or otherwise encumber any of its rights in or to its Pledged Collateral or any
unpaid dividends or other distributions or payments with respect thereto except pursuant to this
Pledge Agreement.

          (b) Except as permitted by the Credit Agreement, such Pledgor will not cause or permit any
issuer of Pledged Shares or Pledged Membership Interests to issue or grant any warrants, stock
options of any nature or other instruments convertible into membership interests or shares of any
class of capital stock or additional membership interests or shares of capital stock or sell or
transfer any membership interests or treasury stock.

          (c) Such Pledgor will, at its own cost and expense, promptly execute, acknowledge and deliver
all such instruments and take all such action as the Administrative Agent from time to time may
reasonably request in order to perfect and protect the Lien granted or purported to be granted
hereby, in each case, to the extent required hereby, or to enable the Administrative Agent to
exercise and enforce its rights and remedies hereunder with respect to the Pledged Collateral.

          (d) Such Pledgor has and will, at its own cost and expense, defend the title to its Pledged
Collateral and the Liens of the Administrative Agent thereon against the claim of any Person,
except Liens permitted by Section 7.2 of the Credit Agreement, and will maintain and preserve such
Liens.

          (e) Such Pledgor will pay all taxes, assessments and charges levied, assessed or imposed upon
its Pledged Collateral in accordance with the provisions of Section 5.5 of the Credit Agreement.

     7. Adjustments and Distributions Concerning Pledged Collateral. Should the Pledged
Collateral, or any part thereof, ever be converted in any manner by any Pledgor into another type
of property or any money or other proceeds ever be paid or delivered to any Pledgor as a result of
such Pledgor’s rights in the Pledged Collateral, then in any such event (except as provided in
Section 8 hereof), all such property, money and other proceeds shall promptly be and become
part of the Pledged Collateral, for the benefit of the Secured Parties, as Pledged

7

 

Collateral hereunder in accordance with the provisions of the Credit Agreement; and, if the
Administrative Agent deems it necessary and so reasonably requests, to properly endorse,
assign or transfer any and all such other proceeds to the Administrative Agent and to deliver to
the Administrative Agent any and all such other proceeds which require perfection by possession
under the UCC. With respect to any of such property of a kind requiring an additional security
agreement, financing statement or other writing to perfect a security interest therein in favor of
the Administrative Agent, each Pledgor will, promptly upon the Administrative Agent’s request,
execute and deliver to the Administrative Agent, or cause to be executed and delivered to the
Administrative Agent, such agreements, financing statements or other writings.

     8. Pledgors’ Rights; Termination Of Rights.

          (a) As long as no Event of Default shall have occurred and be continuing:

          (i) Each Pledgor shall have the right, from time to time, to vote and give consents
with respect to its Pledged Collateral or any part thereof for all purposes permitted by
the Credit Agreement or any other Loan Documents; provided, that, without limitation
of the foregoing, no vote shall be cast, and no consent shall be given or action taken by
any Pledgor without the prior written consent of the Administrative Agent that would
authorize or effect (except if and to the extent permitted by the Credit Agreement): (A) the
dissolution or liquidation, in whole or in part, of any issuer of the Pledged Collateral,
(B) the consolidation or merger of any issuer of the Pledged Collateral with any other
Person (other than any Pledgor), (C) the sale, disposition or encumbrance of any portion of
the assets of any issuer of the Pledged Collateral or any business or division thereof,
except as permitted by the Credit Agreement, (D) any change in the authorized number of
shares or membership interests, the stated capital or the authorized shares or member
interest capital of any issuer of the Pledged Collateral or the issuance of any additional
shares of capital stock or membership interests thereof, except as permitted by the Credit
Agreement or (E) the alteration of the voting rights with respect to the capital stock or
membership interests of any issuer of the Pledged Collateral, except as permitted by the
Credit Agreement;

          (ii) Each Pledgor shall be entitled, from time to time, to collect and receive for its
own use all dividends, distributions and other amounts paid in respect of its Pledged
Collateral to the extent not in violation of the Credit Agreement.

          (b) Intentionally Deleted.

          (c) Upon the occurrence of an Event of Default and during the continuation thereof, all of
Pledgors’ rights to exercise voting and other consensual rights pursuant to Section 8(a)(i)
hereof and all of Pledgors’ rights to receive any cash dividends and distributions pursuant to
Section 8(a)(ii) hereof shall cease and all such rights shall thereupon become vested in
the Administrative Agent, for the benefit of the Secured Parties, who shall have the sole and
exclusive right to exercise the voting and other consensual rights which the Pledgors would
otherwise be authorized to exercise pursuant to Section 8(a)(i) hereof, and to receive and
retain the dividends and distributions which the Pledgors would otherwise be authorized to receive
and

8

 

retain pursuant to Section 8(a)(ii) hereof. Upon the occurrence of an Event of Default
and during the continuation thereof, each Pledgor shall, at the Administrative Agent’s request, pay over
to the Administrative Agent, for the benefit of the Secured Parties, any dividends received by such
Pledgor with respect to its Pledged Collateral and any and all money and other property paid over
to or received by the Administrative Agent shall be retained by the Administrative Agent, for the
benefit of the Secured Parties, as Pledged Collateral hereunder and shall be applied in accordance
with the terms of the Credit Agreement.

     9. Default. The Pledgors shall be in default under this Pledge Agreement upon the
happening of any of the following events or conditions (hereinafter referred to as an “Event of
Default”):

          (i) The occurrence of an Event of Default as defined in the Credit Agreement;

          (ii) The filing of any financing statement that is authorized by the Pledgor or under
applicable law with regard to the Pledged Collateral, other than relating to or permitted by this
Pledge Agreement or the Credit Agreement, or the attachment of any additional Lien or security
interest to any portion of the Pledged Collateral, for the benefit of any Person other than the
Administrative Agent, other than relating to or permitted by this Pledge Agreement or the Credit
Agreement; and

          (iii) Failure of any Pledgor to observe any of its respective covenants set forth in this
Pledge Agreement, and such failure shall remain unremedied for thirty (30) days after the earlier
of (i) any Responsible Officer of any Pledgor becomes aware of such failure, or (ii) notice thereof
shall have been given to any Pledgor by the Administrative Agent or any Secured Party.

     10. Remedies Upon An Event Of Default.

          (a) Upon the occurrence of an Event of Default and during the continuation thereof, the
Administrative Agent may exercise all rights of a secured party under the UCC (whether or not the
UCC applies to the affected collateral). In addition, upon the occurrence of an Event of Default
and during the continuation thereof, the Administrative Agent is hereby authorized and empowered to
transfer and register in its name or in the name of its nominee the whole or any part of the
Pledged Collateral, exercise the voting rights with respect thereto, collect and receive all cash
dividends and other distributions made thereon, sell in one or more sales after five (5) days’
notice of the time and place of any public sale or of the time after which a private sale is to
take place (which notice each Pledgor agrees is commercially reasonable), but without any previous
notice or advertisement, the whole or any part of the Pledged Collateral and otherwise act with
respect to the Pledged Collateral as though the Administrative Agent was the legal and record owner
thereof. Each Pledgor hereby irrevocably constitutes and appoints the Administrative Agent, for
the benefit of the Secured Parties, as the proxy and attorney-in-fact of such Pledgor with respect
to the Pledged Collateral, with full power of substitution to exercise any of the rights provided
in the preceding sentence; provided, that the Administrative Agent shall not have any duty
to exercise any such right or to preserve the same and shall not be liable for any failure to do so
or for any delay in doing so. Any sale shall be made at a public or private sale at the
Administrative Agent’s offices or elsewhere to be named in the notice of sale, either

9

 

for cash or
upon credit or for future delivery at such price as the Administrative Agent may deem
fair, and any Secured Party may be the purchaser of the whole or any part of the Pledged
Collateral so sold and hold the same thereafter in its own right free from any claim of any Pledgor
or any right of redemption, which each Pledgor hereby waives to the extent permitted by applicable
law. Each sale shall be made to the highest bidder, but the Administrative Agent reserves the
right to reject any and all bids at such sale which, in its discretion, it shall deem inadequate.
Demands of performance, except as otherwise herein specifically provided for, notices of sale,
advertisements and the presence of property at sale are hereby waived and any sale hereunder may be
conducted by an auctioneer or any officer or agent of the Administrative Agent.

          (b) If, at the original time or times appointed for the sale of the whole or any part of the
Pledged Collateral, the highest bid, if there be but one sale, shall be inadequate to discharge in
full all the Secured Obligations, or if the Pledged Collateral be offered for sale in lots, if at
any of such sales, the highest bid for the lot offered for sale would indicate to the
Administrative Agent, in its discretion, the unlikelihood of the proceeds of the sales of the whole
of the Pledged Collateral being sufficient to discharge all the Secured Obligations, the
Administrative Agent may, on one or more occasions and in its discretion, postpone any of said
sales by public announcement at the time of sale or the time of previous postponement of sale, and
no other notice of such postponement or postponements of sale need be given, any other notice being
hereby waived; provided, that any sale or sales made after such postponement shall be after
five (5) days’ notice from the Administrative Agent to any such Pledgor.

          (c) If, at any time that the Administrative Agent shall determine, upon the occurrence of an
Event of Default and during the continuation thereof, to exercise its rights to sell the whole or
any part of the Pledged Collateral hereunder, such Pledged Collateral or the part thereof to be
sold shall not, for any reason whatsoever, be effectively registered under the Securities Act of
1933, as amended (the “Act”), the Administrative Agent may, in its discretion (subject only
to applicable requirements of law), sell such Pledged Collateral or part thereof by private sale in
such manner and under such circumstances as the Administrative Agent may deem necessary or
advisable, but subject to the other requirements of this Section 9, and shall not be
required to effect such registration or to cause the same to be effected. Without limiting the
generality of the foregoing, in any such event the Administrative Agent in its discretion (i) may,
in accordance with applicable securities laws, proceed to make such private sale notwithstanding
that a registration statement for the purpose of registering such Pledged Collateral or part
thereof could be or shall have been filed under said Act (or similar statute), (ii) may approach
and negotiate with a single possible purchaser to effect such sale, (iii) may restrict such sale to
a purchaser who will represent and agree that such purchaser is purchasing for its own account, for
investment and not with a view to the distribution or sale of such Pledged Collateral or part
thereof, and (iv) may place all or any part of the Pledged Collateral with an investment banking
firm for private placement, which firm shall be entitled to purchase all or any part of the Pledged
Collateral for its own account. If any of the Pledged Collateral shall not be freely distributable
to the public without registration under the Act (or similar statute), then the Administrative
Agent shall not be required to effect such registration or cause the same to be effected but, in
its discretion (subject to applicable requirements of law), may require that any sale hereunder
(including a sale at auction) be conducted subject to restrictions (i) as to the financial

10

 

sophistication and ability of any Person permitted to bid or purchase at any such sale, (ii) as to
the content of legends to be placed upon any certificates representing the Pledged Collateral
sold in such sale, including restrictions on future transfer thereof, (iii) as to the
representations required to be made by each Person bidding or purchasing at such sale relating to
that Person’s access to financial information about any Pledgor or any of its subsidiaries so sold
and such Person’s intentions as to the holding of the Pledged Collateral so sold for investment,
for its own account, and not with a view to the distribution thereof, and (iv) as to such other
matters as the Administrative Agent may, in its discretion, deem necessary or appropriate in order
that such sale (notwithstanding any failure so to register) may be effected in compliance with the
UCC and other laws affecting the enforcement of creditors’ rights and the Act and all applicable
state securities laws.

          (d) Each Pledgor acknowledges that, notwithstanding the legal availability of a private sale
or a sale subject to the restrictions described above in paragraph (c), the Administrative Agent
may, in its discretion, elect, upon the occurrence of an Event of Default and during the
continuation thereof, to register any or all the Pledged Collateral under the Act (or any
applicable state securities law). Each Pledgor, however, recognizes that the Administrative Agent
may be unable to effect a public sale of any or all the Pledged Collateral and may be compelled to
resort to one or more private sales thereof. Each Pledgor also acknowledges that any such private
sale may result in prices and other terms less favorable to the seller than if such sale were a
public sale and, notwithstanding such circumstances, agrees that any such private sale shall be
deemed to have been made in a commercially reasonable manner. The Administrative Agent shall be
under no obligation to delay a sale of any of the Pledged Collateral for the period of time
necessary to permit the registrant to register such securities for public sale under the Act, or
under applicable state securities laws, even if each Pledgor would agree to do so.

          (e) Any cash held by the Administrative Agent as Pledged Collateral and all cash proceeds
received by the Administrative Agent in respect of any sale of, collection from, or other
realization upon all or any part of the Pledged Collateral, upon the occurrence of an Event of
Default and during the continuation thereof, may, in the discretion of the Administrative Agent, be
held by the Administrative Agent as collateral for, and/or then or at any time thereafter be
applied (after payment of any amounts payable to the Administrative Agent pursuant to Section
12 hereof) in whole or in part by the Administrative Agent for the benefit of the Secured
Parties in their individual and various agency capacities and any other holder of any Secured
Obligations against, all or any part of the Secured Obligations in accordance with the terms
hereof. Any surplus of such cash or cash proceeds held by the Administrative Agent and remaining
after payment in full of all the Secured Obligations shall be paid over to the Pledgors or to
whomsoever may be lawfully entitled to receive such surplus.

          (f) Each Pledgor agrees that following the occurrence and during the continuation of an Event
of Default it will not at any time plead, claim or take the benefit of any appraisal, valuation,
stay, extension, moratorium or redemption law now or hereafter in force in order to prevent or
delay the enforcement of this Pledge Agreement, or the absolute sale of the whole or any part of
the Pledged Collateral or the possession thereof by any purchaser at any sale hereunder, and each
Pledgor waives the benefit of all such laws to the extent it lawfully may do

11

 

so. Each Pledgor
agrees that it will not interfere with any right, power and remedy of the
Administrative Agent provided for in this Pledge Agreement or now or hereafter existing at law
or in equity or by statute or otherwise, or the exercise or beginning of the exercise by the
Administrative Agent of any one or more of such rights, powers, or remedies. No failure or delay
on the part of the Administrative Agent to exercise any such right, power or remedy and no notice
or demand which may be given to or made upon any Pledgor by the Administrative Agent with respect
to any such remedies shall operate as a waiver thereof, or limit or impair the Administrative
Agent’s right to take any action or to exercise any power or remedy hereunder, without notice or
demand, or prejudice its rights as against any Pledgor in any respect. Except for gross negligence
or willful misconduct, each Pledgor waives all claims, damages and demands against the
Administrative Agent arising out of the repossession, retention or sale of the Pledged Collateral.

     11. Power Of Attorney. Each Pledgor appoints the Administrative Agent, or any other
Person whom the Administrative Agent may designate, as each Pledgor’s true and lawful
attorney-in-fact, with, upon the occurrence of an Event of Default and during the continuation
thereof, power to endorse each Pledgor’s name on any checks, notes, acceptances, money orders,
drafts or other form of payment or security representing a portion of the Pledged Collateral that
may come into the Administrative Agent’s possession and to do all things necessary to carry out
the terms of this Pledge Agreement. Each Pledgor ratifies and approves all such acts of such
attorney-in-fact. Except for gross negligence or willful misconduct, neither the Administrative
Agent nor any other Person designated by the Administrative Agent as attorney-in-fact hereunder
will be liable for any acts or omissions, nor for any errors of judgment or mistakes of fact or
law. This power, coupled with an interest, is irrevocable until the payment in full of all Secured
Obligations of each Pledgor.

     12. Administrative Agent’s Right To Take Action. In the event that any Pledgor fails
or refuses to perform any of its obligations set forth herein by the dates or within the periods
provided for herein (subject to any grace or notice periods), or otherwise fails or refuses to pay
any amount necessary for the preservation and protection of the Pledged Collateral, the
Administrative Agent shall have the right, without obligation, by notice to the Pledgors, to do all
things it deems necessary or advisable to discharge the same (including, without limitation, to pay
any such taxes, assessments, charges or other sums, together with interest and penalties thereon)
and any sums paid by the Administrative Agent, or the cost thereof, including, without limitation,
reasonable attorneys’ fees, shall be reimbursed by the Pledgors, to the Administrative Agent in
accordance with Section 10.3 of the Credit Agreement as if each Pledgor was the Borrower and, until
so reimbursed, shall bear interest at the highest rate chargeable under, and subject to, Section
2.14(c) of the Credit Agreement.

     13. Expenses. The Pledgors shall, jointly and severally as if each Pledgor was the
Borrower, pay all reasonable costs, expenses, taxes and fees incurred by the Administrative Agent
in connection with this Pledge Agreement in accordance with Section 10.3 of the Credit Agreement.

     14. Indemnity. The Pledgors, jointly and severally, will indemnify and hold harmless
each of the Secured Parties and each of their respective employees, representatives,

12

 

officers and
directors from and against any and all claims, liabilities, investigations, losses,
damages, actions, and demands by any party against the Secured Parties or any of them
resulting from any breach or alleged breach by any Pledgor of any representation or warranty made
hereunder, or otherwise arising out of this Pledge Agreement, unless, with respect to any of the
above, any of the Secured Parties are finally judicially determined to have acted with gross
negligence or willful misconduct. This Section 14 shall survive termination of this Pledge
Agreement.

     15. Limitation On the Administrative Agent’s Duty In Respect Of Pledged Collateral.
The Administrative Agent shall comply with Sections 8.9A-207 through 8.9A-209 of the UCC with
respect to the Pledged Collateral in its possession or under its control, but shall have no other
duties with respect thereto. The powers conferred on the Administrative Agent hereunder are solely
to protect its interest in the Pledged Collateral and shall not impose any duty upon it to exercise
any such powers. Except for the safe custody of any Pledged Collateral in its possession and the
accounting for moneys actually received by it hereunder, the Administrative Agent shall have no
duty as to any Pledged Collateral or any income thereon, as to ascertaining or taking action with
respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any
Pledged Collateral, whether or not the Administrative Agent, or any other Secured Party has or is
deemed to have knowledge of such matters, or as to the taking of any necessary steps to preserve
rights against any parties or any other rights pertaining to any Pledged Collateral. The
Administrative Agent shall be deemed to have exercised reasonable care in the custody and
preservation of any Pledged Collateral in its possession if such Pledged Collateral is accorded
treatment substantially equal to that which the Administrative Agent accords its own property.

     16. Security Interest Absolute. All rights of the Administrative Agent and security
interests hereunder, and all obligations of each Pledgor hereunder, shall be absolute and
unconditional irrespective of:

          (a) any lack of validity or enforceability of the Loan Documents;

          (b) any change in the time, manner or place of payment of, or in any other term of, all or any
of the Secured Obligations, or any other amendment or waiver of or any consent to any departure
from the Loan Documents including, without limitation, any increase in the Secured Obligations
resulting from the extension of additional credit to any Pledgor or any of its Subsidiaries or
otherwise;

          (c) any taking, exchange, release or non-perfection of any other collateral, or any taking,
release or amendment or waiver of or consent to departure from any guaranty, for all or any of the
Secured Obligations;

          (d) any manner of application of collateral, or proceeds thereof, to all or any of the Secured
Obligations, or any manner of sale or other disposition of any collateral for all or any part of
the Secured Obligations or any other assets of any Pledgor or any of its Subsidiaries;

13

 

          (e) any change, restructuring or termination of the corporate structure or existence of any
Pledgor or any of its Subsidiaries; or

          (f) any other circumstance which might otherwise constitute a defense available to, or a
discharge of, any Pledgor or a third party pledgor.

     17. Reinstatement. This Pledge Agreement shall remain in full force and effect and
continue to be effective should any petition be filed by or against any Pledgor for liquidation or
reorganization, should any Pledgor become insolvent or make an assignment for the benefit of any
creditor or creditors or should a receiver or trustee be appointed for all or any significant part
of any Pledgor’s assets, and shall continue to be effective or be reinstated, as the case may be,
if at any time payment and performance of the Secured Obligations, or any part thereof, is,
pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or
returned by any obligee of the Secured Obligations, whether as a “voidable preference,” “fraudulent
conveyance,” “fraudulent transfer” or otherwise, all as though such payment or performance had not
been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored or
returned, the Secured Obligations shall be reinstated and deemed reduced only by such amount paid
and not so rescinded, reduced, restored or returned.

     18. Successors And Assigns. This Pledge Agreement and all obligations of each Pledgor
hereunder shall be binding upon the successors and assigns of such Pledgor (including any
debtor-in-possession on behalf of such Pledgor) and shall, together with the rights and remedies of
the Administrative Agent, for the benefit of the Secured Parties, hereunder, inure to the benefit
of the Administrative Agent, the other Secured Parties, all future holders of any instrument
evidencing any of the Secured Obligations and their respective permitted successors and assigns.
No sales of participations, other sales, assignments, transfers or other dispositions of any
agreement governing or instrument evidencing the Secured Obligations or any portion thereof or
interest therein shall in any manner affect the Lien granted to the Administrative Agent, for the
benefit of the Secured Parties, hereunder. No Pledgor may assign, sell, hypothecate or otherwise
transfer any interest in or obligation under this Pledge Agreement.

     19. Waivers; Amendment.

          (a) No failure or delay by any Secured Party of any kind in exercising any power, right or
remedy hereunder and no course of dealing between any Pledgor on the one hand and the
Administrative Agent or the holder of any Note on the other hand shall operate as a waiver thereof,
nor shall any single or partial exercise of any such power, right or remedy hereunder or under any
other Loan Document, or any abandonment or discontinuance of steps to enforce such a power, right
or remedy, preclude any other or further exercise thereof or the exercise of any other power, right
or remedy. The rights of the Secured Parties hereunder and of the Lenders under the other Loan
Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise
have. No waiver of any provision of this Pledge Agreement or consent to any departure by any
Pledgor therefrom shall in any event be effective unless the same shall be permitted by subsection
(b) below, and then such waiver and consent shall be effective only in the specific instance and
for the purpose for which given. No notice or demand on any Pledgor in any case shall entitle such
Pledgor to any other or further notice in

14

 

similar or other circumstances.

          (b) Neither this Pledge Agreement nor any provision hereof may be waived, amended or modified
except pursuant to a written agreement entered into between the Pledgors with respect to which such
waiver, amendment or modification relates and the Administrative Agent, with the prior written
consent of the Required Lenders (except as otherwise permitted in the Credit Agreement).

     20. Severability. Any provision of this Pledge Agreement held to be illegal, invalid
or unenforceable in any jurisdiction, shall, as to such jurisdiction, be ineffective to the extent
of such illegality, invalidity or unenforceability without affecting the legality, validity or
enforceability of the remaining provisions hereof or thereof; and the illegality, invalidity or
unenforceability of a particular provision in a particular jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

     21. Notices. All notices, requests and other communications to the Pledgors or
Administrative Agent hereunder shall be delivered in the manner required by the Credit Agreement
and shall be sufficiently given to Administrative Agent or any Pledgor if addressed or delivered to
them at, in the case of the Administrative Agent and Borrower, its addresses and telecopier numbers
specified in the Credit Agreement and in the case of any other Pledgor, at their respective
addresses and telecopier numbers provided in the Subsidiary Guaranty Agreement. All such notices
and communications shall be deemed to have been duly given at the times set forth in the Credit
Agreement.

     22. Counterparts; Integration. This Pledge Agreement may be executed by one or more
of the parties to this Pledge Agreement on any number of separate counterparts (including by
telecopy or by email, in pdf format), and all of said counterparts taken together shall be deemed
to constitute one and the same instrument. This Pledge Agreement constitutes the entire agreement
among the parties hereto regarding the subject matters hereof and supersedes all prior agreements
and understandings, oral or written, regarding such subject matter.

     23. Governing Law; Jurisdiction; Consent to Service of Process.

          (a) This Pledge Agreement shall be construed in accordance with and be governed by the law of
the Commonwealth of Virginia.

          (b) Each party to this Pledge Agreement hereby irrevocably and unconditionally submits, for
itself and its property, to the non-exclusive jurisdiction of the United States courts located
within the Eastern District of Virginia, and of any state court of the Commonwealth of Virginia
located in Fairfax County, Virginia, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Pledge Agreement or any other Loan Document or the
transactions contemplated hereby or thereby, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect
of any such action or proceeding may be heard and determined in such Virginia state court or, to
the extent permitted by applicable law, such Federal court. Each of the parties hereto agrees that
a final judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the

15

 

judgment or in any other manner provided by law. Nothing in this
Pledge Agreement shall affect any right that the Administrative Agent, the Issuing Bank, the Swingline Lender or any Lender
may otherwise have to bring any action or proceeding relating to this Pledge Agreement against any
Pledgor or its properties in the courts of any jurisdiction.

          (c) Each party to this Pledge Agreement irrevocably and unconditionally waives any objection
which it may now or hereafter have to the laying of venue of any such suit, action or proceeding
described in paragraph (b) of this Section and brought in any court referred to in paragraph (b) of
this Section. Each party hereto irrevocably waives, to the fullest extent permitted by applicable
law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any
such court.

          (d) Each party to this Pledge Agreement irrevocably consents to the service of process in the
manner provided for notices in Section 10.1 of the Credit Agreement. Nothing in this Pledge
Agreement will affect the right of the Administrative Agent or any Lender to serve process in any
other manner permitted by law.

     24. WAIVER OF JURY TRIAL. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF THIS PLEDGE AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH PARTY HERETO (i) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER, AND (ii) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS PLEDGE AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     25. Benefit of Secured Parties. All Liens granted or contemplated hereby shall be for
the benefit of the Secured Parties, and all proceeds or payments realized from Pledged Collateral
in accordance herewith shall be applied to the Secured Obligations in accordance with Section 8.2
of the Credit Agreement.

     26. Termination of this Pledge Agreement. Subject to Section 17 hereof, this
Pledge Agreement and the security interests granted hereunder shall terminate, without delivery of
any instrument or performance of any act by any person, upon the Payment in Full of all of the
Secured Obligations. Upon such termination or any release pursuant to Section 9.8(d) of the Credit
Agreement, Administrative Agent shall, promptly upon Pledgor’s request and contemporaneously with
any refinancing of the Secured Obligations or disposition of Collateral pursuant to Section 7.6 of
the Credit Agreement, at the expense of the Borrower, return all (or the released portion, as
applicable) of the Pledged Collateral in its possession to the respective Pledgors and will, at the
sole cost and expense of the Pledgors, execute such documents, without recourse or warranty, as
Pledgors deem reasonably necessary to release any interests held by Administrative Agent or the
Secured Parties in the released Pledged Collateral.

16

 

     27. Additional Pledged Collateral. In the event that the any Pledgor is required,
under the terms of any Loan Document, to pledge and hypothecate any Collateral that is required to
be Pledged Collateral under this Agreement after the Closing Date, such Pledgor shall pledge and
hypothecate such Collateral, and be bound with respect to such Collateral by all of the terms and
conditions hereof, by delivery to the Administrative Agent of an executed counterpart of a
Supplement to Subsidiary Pledge Agreement in the form of Exhibit A attached hereto.

     28. Additional Pledgors. Pursuant to Section 5.11 of the Credit Agreement, each
Domestic Subsidiary that is required to become a Subsidiary Loan Party after the date of the Credit
Agreement is required to enter into this Agreement as a Pledgor upon becoming such a Subsidiary
Loan Party. Upon execution and delivery after the date hereof by the Administrative Agent and such
Domestic Subsidiary of an instrument in the form of Exhibit B, such Domestic Subsidiary
shall become a Pledgor hereunder with the same force and effect as if originally named as a Pledgor
herein. The execution and delivery of any instrument adding an additional Pledgor as a party to
this Pledge Agreement shall not require the consent of any other Pledgor hereunder. The rights and
obligations of each Pledgor hereunder shall remain in full force and effect notwithstanding the
addition of any new Pledgor as a party to this Pledge Agreement.

     29. Exercise of Remedies.

          (a) Notwithstanding anything to the contrary set forth herein, the Administrative Agent, for
itself and the benefit of Secured Parties, agrees that to the extent prior Governmental Authority
or Accreditor approval is required pursuant to applicable law or accreditation standards and
procedures for (a) the operation and effectiveness of any grant, right or remedy hereunder or under
any Loan Document, or (b) taking any action that may be taken by the Administrative Agent or
Pledgors hereunder or under any Loan Document, such grant, right, remedy or actions will be subject
to obtaining in a timely manner such Governmental Authority or Accreditor approval by or in favor
of the Administrative Agent, for itself and the benefit of Secured Parties.

          (b) If an Event of Default shall have occurred and be continuing, the Pledgors shall, and, if
applicable, shall cause each of their Subsidiaries to, take any action which the Administrative
Agent may request in the exercise of its rights and remedies under this Agreement and any other
Loan Document in order to transfer or assign any Pledged Collateral to the Administrative Agent,
for itself and the benefit of Secured Parties or to such one or more third parties as the
Administrative Agent may designate, or to a combination of the foregoing.

          (c) Upon the occurrence and during the continuation of an Event of Default, the Administrative
Agent is empowered to seek from any Governmental Authority or Accreditor, to the extent required,
consent to or approval of any involuntary transfer of control of any Pledged Collateral for the
purpose of seeking a bona fide purchaser to whom control ultimately will be transferred. The
Pledgors agree to (i) cooperate with any such purchaser and with the Administrative Agent in the
preparation, execution and filing of any forms and providing any information that may be necessary
or helpful in obtaining the consent of any Governmental Authority or Accreditor to the assignment
to such purchaser of the Pledged Collateral or to a

17

 

change in ownership or control of SUI and (ii)
consent to any such voluntary or involuntary transfer after and during the continuation of an Event of Default and, without limiting any
rights of the Administrative Agent under this Agreement or any Loan Document, to authorize the
Administrative Agent to nominate a trustee or receiver to assume control of the Pledged Collateral,
subject only to required judicial or other consents required by any Governmental Authority or
Accreditor, in order to effectuate the transactions contemplated by this Section 29. Such trustee
or receiver shall have all the rights and powers as provided to it by law or court order, or to the
Administrative Agent under this Agreement or any other Loan Document.

[Signature Pages Follow]

18

 

     IN WITNESS WHEREOF, each Pledgor has caused this Pledge Agreement to be executed and delivered
by its duly authorized officer as of the date first set forth above.

	 	 	 	 	 	 	 

	 	 	STRAYER EDUCATION, INC.,	 	 
	 	 	a Maryland corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	STRAYER UNIVERSITY, INC.,	 	 
	 	 	a Maryland corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	EDUCATION LOAN PROCESSING, INC.,	 	 
	 	 	a Virginia corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Acknowledged and Agreed:

	 	 	 	 	 	 	 

	 	 	SUNTRUST BANK,	 	 
	 	 	as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

[SIGNATURE PAGE TO PLEDGE AGREEMENT]

 

 

Schedule I to

Pledge Agreement

Part A

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Percentage	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Held of	 	 	 	 	 	 	 
	 	 	Name of	 	 	 	 	 	 	 	Shares	 	 	 	 	 	 	 
	Name of	 	Issuer	 	Place of	 	Authorized	 	 	Issued and	 	 	Par/No	 	 	Shares Issued	 
	Pledgor	 	Corporation	 	Incorporation	 	Shares	 	 	Outstanding	 	 	Par	 	 	and Outstanding	 
	Strayer Education, Inc.
	 	Strayer University, Inc.	 	Maryland	 	 	500	 	 	 	100	%	 	$	10.00	 	 	 	375.5	 
	Strayer Education, Inc.
	 	Education Loan Processing, Inc.	 	Virginia	 	 	5,000	 	 	 	100	%	 	$	0	 	 	 	1,000	 
	Strayer Education, Inc.
	 	Professional Education, Inc.	 	Maryland	 	 	5,000	 	 	 	100	%	 	$	1.00	 	 	 	N/A	 

Part B

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Percentage Held of	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Membership	 	 	 	 	 	 		 
	 	 	 	 	 	 	 	 	 	 	Interests	 	 	 	 	 	 	Membership and	 
	Name of	 	Name of	 	 	Place of	 	 	Issued and	 	 	Par/No	 	 	Interests Issued	 
	Pledgor	 	Issuer LLC	 	 	Organization	 	 	Outstanding	 	 	Par	 	 	Outstanding	 
	None
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

Schedule II to

Pledge Agreement

Pledged Notes

None.

 

 

EXHIBIT A

to

Pledge Agreement

SUPPLEMENT TO PLEDGE AGREEMENT — ADDITIONAL COLLATERAL

          THIS SUPPLEMENT TO PLEDGE AGREEMENT — ADDITIONAL COLLATERAL (this “Supplement”), dated
as of _____________ __, 201_, is executed by [NAME — IN ALL CAPS], a [State] [Entity] (the
“Supplement Pledgor”), in favor of SUNTRUST BANK, a Georgia banking corporation, as
Administrative Agent (the “Administrative Agent”), on its behalf and on behalf of the other
banks and lending institutions (the “Lenders”) from time to time party to the Amended and
Restated Revolving Credit and Term Loan Agreement, dated as April 4, 2011, by and among the
Borrower, the Lenders, the Administrative Agent, and SunTrust Bank, as Issuing Bank and Swingline
Lender (as amended, restated, supplemented, or otherwise modified from time to time, the
“Credit Agreement”). Terms used herein but not defined herein shall have the meaning
defined for those terms in the Pledge Agreement (as defined below).

W I T N E S S E T H:

          WHEREAS, Strayer Education Inc., a Maryland corporation (the “Borrower”) and certain
Domestic Subsidiaries of the Borrower (the “Pledgors”) are parties to that certain Pledge
Agreement, executed by the Pledgors in favor the Administrative Agent, dated as of April 4, 2011
(as amended, restated, supplemented or otherwise modified from time to time, the “Pledge
Agreement”), pursuant to which the Pledgors pledged stock, notes and membership interests to
the Administrative Agent, for itself and the benefit of the Secured Parties;

          WHEREAS, the Lenders have agreed to make Loans and the Issuing Bank has agreed to issue
Letters of Credit to the Borrower on the terms and conditions contained in the Credit Agreement;

          WHEREAS, it is a condition precedent to the continued extension of the Loans and the continued
issuance of Letters of Credit under the Credit Agreement that the Supplement Pledgor grant to
Administrative Agent a security interest in all of its Additional Pledged Collateral (as defined
below), and the Supplement Pledgor wishes to fulfill said condition precedent;

          NOW, THEREFORE, in consideration of the premises and in order to ensure the compliance with
the Credit Agreement, the Supplement Pledgor hereby agrees as follows:

          SECTION 1. Additional Pledge. As security for the payment and performance of the
Secured Obligations, the Supplement Pledgor hereby:

          (a) pledges, hypothecates, assigns, charges, mortgages, delivers, sets over,

 

 

conveys and transfers to the Administrative Agent, for the benefit of the Secured Parties, and
grants to the Administrative Agent, for the benefit of the Secured Parties, a security interest in
all of the Supplemental Pledgor’s right, title and interest in and to:

     (i) the shares of capital stock more particularly described in Schedule I
hereto and the certificates, if any, evidencing such shares (the “Additional Pledged
Shares”) and all cash, instruments and other property from time to time received,
receivable or otherwise distributed in exchange for any and all of such Additional Pledged
Shares;

     (ii) the membership interests more particularly described in Schedule II hereto
and the certificates, if any, evidencing such membership interests (the “Additional
Pledged Membership Interests”) and all cash, instruments and other property from time to
time received, receivable or otherwise distributed in exchange for any and all of such
Additional Pledged Membership Interests;

     (iii) the promissory notes and instruments more particularly described on Schedule
III hereto (the “Additional Pledged Notes”) and all interest, cash, instruments
and other property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for the Additional Pledged Notes; and

     (iv) all other Pledged Collateral (as defined in the Pledge Agreement) relating to the
Additional Pledged Shares, the Additional Pledged Membership Interests and the Additional
Pledged Notes (the items described in subsections (i), (ii), (iii) and (iv) above,
collectively, the “Additional Pledged Collateral”); and

               (b) delivers to the Administrative Agent, for the benefit of the Secured Parties, all of the
Supplement Pledgor’s right, title and interest in and to the certificates and instruments, if any,
evidencing the Additional Pledged Collateral, accompanied by instruments of transfer or assignment,
duly executed in blank.

               SECTION 2. Representations and Warranties. The Supplement Pledgor hereby (a)
represents and warrants that it is the legal and beneficial owner of the Additional Pledged
Collateral, free and clear of any lien, security interest, option or other charge or encumbrance,
except for Permitted Encumbrances and the security interest created by the Pledge Agreement as
supplemented by this Supplement; and (b) restates each representation and warranty set forth in
Section 5 of the Pledge Agreement, as supplemented by this Supplement, as of the date
hereof with respect to the Additional Pledged Collateral.

               SECTION 3. Additional Pledged Collateral. By execution and delivery of this
Supplement, the Additional Pledged Collateral shall become a part of the Pledged Collateral
referred to in the Pledge Agreement and shall secure the Secured Obligations as if such Additional
Pledged Collateral were Pledged Collateral on the Closing Date, and shall be subject to all of the
terms and conditions governing Pledged Collateral under the Pledge Agreement. From and after the
date hereof, Schedule I and Schedule II to the Pledge Agreement are hereby amended
to add the Additional Pledged Collateral.

 

 

               SECTION 4. Binding Effect. This Supplement shall become effective when it shall have
been executed by the Supplement Pledgor and acknowledged and agreed to by the Administrative Agent
and thereafter shall be binding upon the Supplement Pledgor and shall inure to the benefit of the
Administrative Agent and the Secured Parties. Upon the effectiveness of this Supplement, this
Supplement shall be deemed to be a part of and shall be subject to all the terms and conditions of
the Pledge Agreement. The Supplement Pledgor shall not have the right to assign its rights
hereunder or any interest herein without the prior written consent of the Lenders.

               SECTION 5. Governing Law; Terms. THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE
COMMONWEALTH OF VIRGINIA.

               SECTION 6. Execution in Counterparts. This Supplement may be executed in any number
of counterparts (including by telecopy or by email, in pdf format), each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and the same
agreement.

               IN WITNESS WHEREOF, the Supplement Pledgor has caused this Supplement to be duly executed and
delivered by its duly authorized officer as of the date first above written.

	 	 	 	 	 	 	 

	 	 	[NAME OF SUPPLEMENT PLEDGOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

	 	 	 	 	 

	Acknowledged and Agreed to:	 	 
	 
	 	 	 	 
	SUNTRUST BANK	 	 
	as Administrative Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	Name: 
	 	 
	 	 	Title:
	 	 

 

 

Schedule I

to

SUPPLEMENT TO PLEDGE AGREEMENT — ADDITIONAL COLLATERAL

 

 

Schedule II

to

SUPPLEMENT TO PLEDGE AGREEMENT — ADDITIONAL COLLATERAL

 

 

Schedule III

to

SUPPLEMENT TO PLEDGE AGREEMENT- ADDITIONAL COLLATERAL

 

 

EXHIBIT B

to

Pledge Agreement

SUPPLEMENT TO PLEDGE AGREEMENT — ADDITIONAL PLEDGOR

          THIS SUPPLEMENT TO PLEDGE AGREEMENT — ADDITIONAL PLEDGOR (this “Supplement”), dated as
of _____________ __, 201_, is executed by [NAME — IN ALL CAPS], a [State] [Entity] (the “New
Pledgor”), in favor of SUNTRUST BANK, a Georgia banking corporation, as Administrative Agent
(the “Administrative Agent”), on its behalf and on behalf of the other banks and lending
institutions (the “Lenders”) from time to time party to the Amended and Restated Revolving
Credit and Term Loan Agreement, dated as of April 4, 2011, by and among Borrower, the Lenders, the
Administrative Agent, and SunTrust Bank, as Issuing Bank and Swingline Lender (as amended,
restated, supplemented, or otherwise modified from time to time, the “Credit Agreement”).
Terms used herein but not defined herein shall have the meaning defined for those terms in the
Pledge Agreement (as defined below).

W I T N E S S E T H:

          WHEREAS, Strayer Education, Inc. (the “Borrower”) and certain Domestic Subsidiaries of
Borrower (the “Pledgors”) are parties to that certain Pledge Agreement, dated as of April
4, 2011, by and among the Pledgors in favor the Administrative Agent (as amended, restated,
supplemented or otherwise modified from time to time, the “Pledge Agreement”), pursuant to
which the Pledgors have pledged stock, notes and membership interests to the Administrative Agent,
for itself and the benefit of the Secured Parties;

          WHEREAS, the Lenders have agreed to make Loans and the Issuing Bank has agreed to issue
Letters of Credit to the Borrower on the terms and conditions contained in the Credit Agreement;

          WHEREAS, it is a condition precedent to the continued extension of the Loans and the continued
issuance of Letters of Credit under the Credit Agreement that the New Pledgor grant to
Administrative Agent a security interest in all of its Pledged Collateral (as defined below), and
the New Pledgor wishes to fulfill said condition precedent;

          NOW, THEREFORE, in consideration of the premises and in order to ensure the compliance with
the Credit Agreement, the New Pledgor hereby agrees as follows:

          SECTION 1. Pledge. As security for the payment and performance of the Secured
Obligations, the New Pledgor hereby:

          (a) pledges, hypothecates, assigns, charges, mortgages, delivers, sets over, conveys and
transfers to the Administrative Agent, for the benefit of the Secured Parties, and grants to the
Administrative Agent, for the benefit of the Secured Parties, a security interest in all of New
Pledgor’s right, title and interest in and to:

 

 

     (i) the shares of capital stock more particularly described in Schedule I
hereto and the certificates, if any, evidencing such shares (the “Pledged Shares”)
and all cash, instruments and other property from time to time received, receivable or
otherwise distributed in exchange for any and all of such Pledged Shares;

     (ii) the membership interests more particularly described in Schedule II hereto
and the certificates, if any, evidencing such membership interests (the “Pledged
Membership Interests”) and all cash, instruments and other property from time to time
received, receivable or otherwise distributed in exchange for any and all of such Pledged
Membership Interests;

     (iii) the promissory notes and instruments more particularly described on Schedule
III hereto (the “Pledged Notes”) and all interest, cash, instruments and other
property or proceeds from time to time received, receivable or otherwise distributed in
respect of or in exchange for the Pledged Notes; and

     (iv) all other collateral relating to the Pledged Shares, the Pledged Membership
Interests and the Pledged Notes (the items described in subsections (i), (ii), (iii) and
(iv) above, collectively, the “Pledged Collateral”); and

     (b) delivers to the Administrative Agent, for the benefit of the Secured Parties, all of New
Pledgor’s right, title and interest in and to the certificates and instruments, if any, evidencing
the Pledged Collateral, accompanied by instruments of transfer or assignment, duly executed in
blank.

          SECTION 2. Joinder. In accordance with Section 28 of the Pledge Agreement,
the New Pledgor by its signature below becomes a Pledgor under the Pledge Agreement with the same
force and effect as if originally named therein as a Pledgor and the New Pledgor hereby (i) agrees
to all the terms and provisions of the Pledge Agreement applicable to it as Pledgor thereunder and
(ii) represents and warrants that the representations and warranties made by it as a Pledgor
thereunder are true and correct on and as of the date hereof. Each reference to a Pledgor in the
Pledge Agreement shall be deemed to include the New Pledgor. The Pledge Agreement is hereby
incorporated herein by reference.

          SECTION 3. Representations and Warranties. The New Pledgor represents and warrants
to the Administrative Agent and the Secured Parties that this Supplement has been duly authorized,
executed and delivered by it and that each of this Supplement and the Pledge Agreement constitutes
its legal, valid and binding obligation, enforceable against it in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general
equitable principles (whether enforcement is sought by proceedings in equity or at law).

          SECTION 4. Binding Effect. This Supplement shall become effective when it shall have
been executed by the New Pledgor and acknowledged and agreed to by the Administrative Agent and
thereafter shall be binding upon the New Pledgor and shall inure to the

 

 

benefit of the Administrative Agent and the Secured Parties. Upon the effectiveness of this
Supplement, this Supplement shall be deemed to be a part of and shall be subject to all the terms
and conditions of the Pledge Agreement. The New Pledgor shall not have the right to assign its
rights hereunder or any interest herein without the prior written consent of the Lenders.

          SECTION 5. Governing Law. THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE COMMONWEALTH
OF VIRGINIA.

          SECTION 6. Execution in Counterparts. This Supplement may be executed in any number
of counterparts (including by telecopy or by email, in pdf format), each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and the same
agreement.

          SECTION 7. Notices to New Pledgor. All communications and notices hereunder shall be
in writing and given as provided in Section 21 of the Pledge Agreement. All communications
and notices hereunder to the New Pledgor shall be given to it at the address set forth under its
signature below, with a copy to the Borrower.

          IN WITNESS WHEREOF, the New Pledgor has duly executed this Supplement to the Pledge Agreement
as of the day and year first above written.

	 	 	 	 	 	 	 

	 	 	[NAME OF NEW PLEDGOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	Address:	 	 

Acknowledged and Agreed to:

SUNTRUST BANK

as Administrative Agent

	 	 	 	 	 

	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

 

Schedule I

to

SUPPLEMENT TO PLEDGE AGREEMENT — ADDITIONAL PLEDGOR

 

 

Schedule II

to

SUPPLEMENT TO PLEDGE AGREEMENT — ADDITIONAL PLEDGOR

 

 

Schedule III

to

SUPPLEMENT TO PLEDGE AGREEMENT — ADDITIONAL PLEDGOR

 

 

FORM OF NOTICE OF REVOLVING BORROWING

[Date]

SunTrust Bank,

as Administrative Agent

for the Lenders referred to below

303 Peachtree Street, N. E./ 25th Floor

Atlanta, GA 30308

Attention: Ms. Doris Folsom

Telecopy Number: (404) 658-4906

To Whom It May Concern:

     Reference is made to the Amended and Restated Revolving Credit and Term Loan Agreement dated
as of April 4, 2011 (as amended, modified or supplemented and in effect on the date hereof, the
“Credit Agreement”), among the undersigned, as Borrower, the Lenders named therein, and SunTrust
Bank, as Administrative Agent, Issuing Bank and Swingline Lender. Terms defined in the Credit
Agreement are used herein with the same meanings. This notice constitutes a Notice of Revolving
Borrowing, and the Borrower hereby requests a Revolving Borrowing under the Credit Agreement, and
in connection therewith the Borrower specifies the following information with respect to the
Revolving Borrowing requested hereby:

     (A) Aggregate principal amount of Revolving Borrowing1:

     (B) Date of Revolving Borrowing (which is a Business Day):

     (C) Type of Revolving Loan comprising such Borrowing2:

     (D) Interest Period3:

     (E) Location and number of Borrower’s account to which proceeds of Revolving Borrowing are to
be disbursed:

 

			
	1	 	In the case of a Eurodollar Revolving Borrowing,
not less than $1,000,000 or a larger multiple of $1,000,000; in the case of a
Base Rate Revolving Borrowing or an Index Rate Revolving Borrowing, not less
than $1,000,000 or a larger multiple of $500,000.
	 
	2	 	Eurodollar Borrowing, Index Rate Borrowing or Base
Rate Borrowing.
	 
	3	 	To be specified if such Borrowing is a Eurodollar
Borrowing, subject to the definition of “Interest Period,” and ending not later
than the Revolving Commitment Termination Date or the Maturity Date.

 

 

     The Borrower hereby represents and warrants that the conditions specified in Section 3.2 of
the Credit Agreement are satisfied.

	 	 	 	 	 	 	 

	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	STRAYER EDUCATION, INC., a
 Maryland
corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Signature Page to Notice of Revolving Borrowing

 

 

FORM OF NOTICE OF SWINGLINE BORROWING

[Date]

SunTrust Bank,

as Administrative Agent

for the Lenders referred to below

303 Peachtree Street, N. E./ 25th Floor

Atlanta, GA 30308

Attention: Ms. Doris Folsom

Telecopy Number: (404) 658-4906

To Whom It May Concern:

     Reference is made to the Amended and Restated Revolving Credit and Term Loan Agreement dated
as of April 4, 2011 (as amended, modified or supplemented and in effect on the date hereof, the
“Credit Agreement”), among the undersigned, as Borrower, the Lenders named therein, and SunTrust
Bank, as Administrative Agent, Issuing Bank and Swingline Lender. Terms defined in the Credit
Agreement are used herein with the same meanings. This notice constitutes a Notice of Swingline
Borrowing, and the Borrower hereby requests a Swingline Borrowing under the Credit Agreement, and
in connection therewith the Borrower specifies the following information with respect to the
Swingline Borrowing requested hereby:

(A) Aggregate principal amount of Swingline Loan1:

(B) Date of Swingline Loan (which is a Business Day):

(C) Account of the Borrower to which the proceeds of such Swingline Loan should be
credited:

 

			
	1	 	Not less than $100,000 or a larger multiple of
$50,000.

 

 

     The Borrower hereby represents and warrants that the conditions specified in Section 3.2 of
the Credit Agreement are satisfied.

	 	 	 	 	 	 	 

	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	STRAYER EDUCATION, INC., a
 Maryland
corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Signature Page to Notice of Swingline Borrowing

 

 

FORM OF NOTICE OF CONVERSION/CONTINUATION

[Date]

SunTrust Bank,

as Administrative Agent

for the Lenders referred to below

Agency Services

303 Peachtree Street, N. E./ 25th Floor

Atlanta, Georgia 30308

Attention: Mr. Doug Weltz

Telecopy Number: (404) 221-2001

To Whom It May Concern:

     Reference is made to the Amended and Restated Revolving Credit and Term Loan Agreement dated
as of April 4, 2011 (as amended, modified or supplemented and in effect on the date hereof, the
“Credit Agreement”), among the undersigned, as Borrower, the Lenders named therein, and SunTrust
Bank, as Administrative Agent, Issuing Bank and Swingline Lender. Terms defined in the Credit
Agreement are used herein with the same meanings. This notice constitutes a Notice of
Conversion/Continuation, and the Borrower hereby requests the [conversion/continuation] of a
Borrowing under the Credit Agreement, and in connection therewith the undersigned specifies the
following information with respect to the Borrowing to be converted or continued as requested
hereby:

          (A) Borrowing to which this request applies1:

          (B) Effective date of election (which is a Business Day):

          (C) Whether the resulting Borrowing is to be a Base Rate Borrowing, an Index Rate Borrowing or
a Eurodollar Borrowing:

          (D) Interest Period2:

 

			
	1	 	If different options are being elected with
respect to different portions thereof, indicate the portions thereof that are
to be allocated to each resulting Borrowing (in which case the information to
be specified pursuant to clauses (C) and (D) hereof also shall be specified for
each resulting Borrowing).
	 
	2	 	To be completed by the undersigned if resulting
Borrowing is a Eurodollar Borrowing. Such period shall be a period
contemplated by the definition of “Interest Period” in the Credit Agreement.

 

 

	 	 	 	 	 	 	 

	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	STRAYER EDUCATION, INC.,

a Maryland corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Signature Page to Notice of Conversion/Continuation

 

 

Covenant Compliance Certificate

     In connection with the terms of the Amended and Restated Revolving Credit and Term Loan
Agreement, dated as of April [__], 2011 (as amended, modified or supplemented from time to time,
the “Credit Agreement”), among Strayer Education, Inc., a Maryland corporation (the
“Borrower”), SunTrust Bank, a Georgia banking corporation (the “Administrative
Agent”), and each Lender that is, or may become, a party thereto, the undersigned certifies
that the following information is true and correct, in all material respects, as of the date of
this Covenant Compliance Certificate:

1. No Default or Event of Default has occurred and is continuing.

2. For purposes of calculating the Applicable Margin and the Applicable Percentage, the Leverage
Ratio for the period of four consecutive Fiscal Quarters ended on _________ was ___ to 1,
calculated as set forth on Schedule 1.

3. Consolidated EBITDA for the period of two consecutive Fiscal Quarters ended on _________ was
$__________, calculated as set forth on Schedule 2, and exceeds the level required by
Section 6.1 of the Credit Agreement.

4. The Interest Coverage Ratio for the period of four consecutive Fiscal Quarters ended on
_________ was ____ to 1, calculated as set forth on Schedule 3, and exceeds the level
required by Section 6.2 of the Credit Agreement.

5. Unrestricted Liquidity as of ____________ was $________, calculated as set forth on Schedule
4, and exceeds the level required by Section 6.3 of the Credit Agreement.

6. Consolidated Tangible Net Worth as of the end of the Fiscal Quarter ended on ____________ was
$_____________, calculated as set forth on Schedule 5, and exceeds the level required by
Section 6.4 of the Credit Agreement.1

[SIGNATURE ON FOLLOWING PAGE]

 

			
	1	 	Certification commences with the Fiscal
Quarter ending December 31, 2011.

 

 

     Capitalized terms used in this Covenant Compliance Certificate shall have the same meanings as
those assigned to them in the Credit Agreement. The foregoing is true and correct, in all material
respects, as of ______, 201_.

     Dated as of _______ ___, 201_.

	 	 	 	 	 	 	 

	 	 	STRAYER EDUCATION, INC.,

a Maryland corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Covenant Compliance Certificate Signature Page

2

 

Schedule 1

Leverage Ratio

	 	 	 	 	 
	1. Consolidated Total Debt as of                     
	 	 	 	 
	 
	 	 	 	 
	(a) Borrowed money
	 	$	                    	 
	 
	 	 	 	 
	(b) Obligations evidenced by bonds, debentures,
notes or other similar instruments
	 	$	                    	 
	 
	 	 	 	 
	(c) Deferred purchase price obligations (other than
trade payables incurred in the ordinary course of
business, provided that such trade payables which
are overdue by 120 days shall be included except to
the extent that such trade payables are being
disputed in good faith and by appropriate measures)
	 	$	                    	 
	 
	 	 	 	 
	(d) Obligations under any conditional sale or other
title retention agreement
	 	$	                    	 
	 
	 	 	 	 
	(e) Capital Lease Obligations
	 	$	                    	 
	 
	 	 	 	 
	(f) Obligations for letters of credit, acceptances
or similar extensions of credit
	 	$	                    	 
	 
	 	 	 	 
	(g) Guaranties of Indebtedness of the types in the
foregoing (a) through (f)
	 	$	                    	 
	 
	 	 	 	 
	(h) Indebtedness of a third party secured by any
Lien
	 	$	                    	 
	 
	 	 	 	 
	(i) Preferred or common stock or similar equity
interests subject to mandatory sinking fund
payments, redemption or acceleration on equity
(other than voluntary repurchases of shares and the
exercise of options permitted by Sections 7.4(f)
and 7.5(iii) of the Credit Agreement)
	 	$	                    	 
	 
	 	 	 	 
	(j) Off-Balance Sheet Liabilities
	 	$	                    	 
	 
	 	 	 	 
	(k) Partnership or joint venture debt
	 	$	                    	 
	 
	 	 	 	 
	TOTAL (a+b+c+d+e+f+g+h+i+j)2
	 	$	                    	 
	 
	 	 	 	 
	2. Consolidated EBITDA for the period of four consecutive
Fiscal Quarters ended on                     3
	 	 	 	 

 

			
	2	 	Such amount shall be the sum of clauses (a)
through (j) without duplication. The calculation shall include the
Indebtedness of any partnership or joint venture in which such the Borrower or
any of its Subsidiaries is a general partner or a joint venturer, except to the
extent that the terms of such Indebtedness provide that such Borrower or
Subsidiary is not liable therefor.

 

	 	 	 	 	 

	(a) Consolidated Net Income
	 	$	                    	 
	 
	 	 	 	 
	(b) Consolidated Interest Expense
	 	$	                    	 
	 
	 	 	 	 
	(c) Income tax expense
	 	$	                    	 
	 
	 	 	 	 
	(d) Depreciation
	 	$	                    	 
	 
	 	 	 	 
	(e) Amortization
	 	$	                    	 
	 
	 	 	 	 
	(f) charges associated with the grant of any share
based payment awards to employees, officers,
directors or consultants
	 	$	                    	 
	 
	 	 	 	 
	(g) all other non-cash charges acceptable to the
Required Lenders
	 	$	                    	 
	 
	 	 	 	 
	TOTAL (a+b+c+d+e+f+g)
	 	$	                    	 
	 
	 	 	 	 
	3. Total Leverage Ratio
	 	 	 	 
	 
	 	 	 	 
	Consolidated Total Debt ($                    )
	 	=                      to 1
	Consolidated EBITDA (                    )
	 	 	 	 

 

			
	3	 	All determined on a consolidated basis in
accordance with GAAP for such period.

4

 

Schedule 2

Consolidated EBITDA

	 	 	 	 	 
	Consolidated EBITDA for the period of two consecutive Fiscal Quarters
ended on __________4
	 	 	 	 
	 
	 	 	 	 
	(a) Consolidated Net Income
	 	$	                    	 
	 
	 	 	 	 
	(b) Consolidated Interest Expense
	 	$	                    	 
	 
	 	 	 	 
	(c) Income tax expense
	 	$	                    	 
	 
	 	 	 	 
	(d) Depreciation
	 	$	                    	 
	 
	 	 	 	 
	(e) Amortization
	 	$	                    	 
	 
	 	 	 	 
	(f) charges associated with the grant of any share based
payment awards to employees, officers, directors or
consultants
	 	$	                    	 
	 
	 	 	 	 
	(g) all other non-cash charges acceptable to the Required
Lenders
	 	$	                    	 
	 
	 	 	 	 
	TOTAL (a+b+c+d+e+f+g)
	 	$	                    	 

 

			
	4	 	All determined on a consolidated basis in
accordance with GAAP for such period.

 

Schedule 3

Interest Coverage Ratio

	 	 	 	 	 

	1. Consolidated EBIT for the period of four consecutive
Fiscal Quarters ended on __________5
	 	 	 	 
	 
	 	 	 	 
	(a) Consolidated Net Income
	 	$	                    	 
	 
	 	 	 	 
	(b) Consolidated Interest
Expense6
	 	$	                    	 
	 
	 	 	 	 
	(c) Income tax expense
	 	$	                    	 
	 
	 	 	 	 
	(d) charges associated with the grant of
any share based payment awards to
employees, officers, directors or
consultants
	 	$	                    	 
	 
	 	 	 	 
	(e) all other non-cash charges acceptable
to the Required Lenders
	 	$	                    	 
	 
	 	 	 	 
	TOTAL (a+b+c+d+e)
	 	$	                    	 
	 
	 	 	 	 
	2. Capital Expenditures made during the four
consecutive Fiscal Quarters ending on or immediately
prior to __________
	 	$	                    	 
	 
	 	 	 	 
	3. Restricted Payments made by the Borrower in cash
during the four consecutive Fiscal Quarters ending on
or immediately prior to __________ (other than
repurchases of shares of Capital Stock)
	 	$	                    	 
	 
	 	 	 	 
	4. Consolidated Interest Expense for such period
	 	$	                    	 
	 
	 	 	 	 
	(a) total interest expense, including
without limitation the interest component
of any payments in respect of Capital Lease
Obligations capitalized or expensed during
such period (whether or not actually paid
during such period)
	 	$	                    	 
	 
	 	 	 	 
	(b) the net amount payable (or minus the
net amount receivable) under Hedging
Transactions during such period (whether or
not actually paid or received during such
period)
	 	$	                    	 

 

			
	5	 	All determined on a consolidated basis in
accordance with GAAP for such period.
	 
	6	 	For purposes of determining the Interest
Coverage Ratio for the respective periods of four consecutive Fiscal Quarters
ending on June 30, 2011, September 30, 2011, and December 31, 2011,
Consolidated Interest Expense shall be deemed to be equal to (a) for the Fiscal
Quarter ending on June 30, 2011, Consolidated Interest Expense for the Fiscal
Quarter then ended multiplied by 4, (b) for the Fiscal Quarter ending on
September 30, 2011, Consolidated Interest Expense for the period of two
consecutive Fiscal Quarters then ended multiplied by 2 and (c) for the Fiscal
Quarter ending on December 31, 2011, Consolidated Interest Expense for the
period of three consecutive Fiscal Quarters then ended multiplied by 1.33.

 

	 	 	 	 	 

	TOTAL (a+b)
	 	$	                    	 
	4. Interest Coverage Ratio
	 	=                      to 1
	 
	 	 	 	 
	Coverage (1-2-3)
	 	 	 	 
	Consolidated Interest Expense (4)
	 	 	 	 

7

 

Schedule 4

Unrestricted Liquidity

	 	 	 	 	 
	Unrestricted Liquidity as of __________
	 	 	 	 
	 
	 	 	 	 
	(a) Cash7
	 	$	                    	 
	 
	 	 	 	 
	(b) Permitted Investments8
	 	$	                    	 
	 
	 	 	 	 
	(c) aggregate unused Revolving Commitments of all
Lenders9
	 	$	                    	 
	 
	 	 	 	 
	TOTAL (a+b+c)
	 	$	                    	 

 

			
	7	 	Not subject to any Lien, other than Liens in
favor of the Administrative Agent, or any restriction on use.
	 
	8	 	Not subject to any Lien, other than Liens in
favor of the Administrative Agent, or any restriction on use.
	 
	9	 	The component of Unrestricted Liquidity
attributable to this clause (c) shall not exceed $25,000,000.

 

Schedule 5

Consolidated Tangible Net Worth

	 	 	 	 	 
	Consolidated Tangible Net Worth for the Fiscal Quarter ended on
__________
	 	 	 	 
	 
	 	 	 	 
	(a) the total assets of the Borrower and its Subsidiaries that would be reflected on the Borrower’s consolidated
balance sheet as of such date prepared in accordance with
GAAP, after eliminating all amounts properly attributable
to minority interests, if any, in the stock and surplus of
Subsidiaries
	 	$	                    	 
	 
	 	 	 	 
	(b)
	 	$	                    	 
	 
	 	 	 	 
	1. the total liabilities of the Borrower and its Subsidiaries that would be reflected on
the Borrower’s consolidated balance sheet as
of such date prepared in accordance with GAAP
	 	$	                    	 
	 
	 	 	 	 
	2. the amount of any write-up in the book value of any assets resulting from a
revaluation thereof or any write-up in excess
of the cost of such assets acquired reflected
on the consolidated balance sheet of the
Borrower as of such date prepared in
accordance with GAAP
	 	$	                    	 
	 
	 	 	 	 
	3. the net book amount of all assets of the Borrower and its Subsidiaries that would be
classified as intangible assets on a
consolidated balance sheet of the Borrower as
of such date prepared in accordance with GAAP
	 	$	                    	 
	 
	 	 	 	 
	TOTAL FOR (b) (1+2+3)
	 	$	                    	 
	 
	 	 	 	 
	TOTAL (a-b)
	 	$

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