Document:

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                                                                    EXHIBIT 4.08

            WAIVER AND THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT
                                    AGREEMENT

          This Waiver and Third Amendment to the Amended and Restated Credit
Agreement (the "Third Amendment") is dated as of April 30, 2003, and is made by
and among EDUCATION MANAGEMENT CORPORATION, (the "Borrower"), the BANKS under
the Credit Agreement (as hereafter defined), NATIONAL CITY BANK OF PENNSYLVANIA
(the "Agent"), as the Agent for the Banks and Issuing Bank, WACHOVIA BANK, as
Syndication Agent, SUNTRUST BANK, as Syndication Agent, FLEET NATIONAL BANK, as
Documentation Agent, and J.P. MORGAN CHASE BANK, as Documentation Agent.

                                    RECITALS:

          WHEREAS, the Borrower, the Banks and the Agent entered into that
certain Amended and Restated Credit Agreement dated as of September 20, 2001, as
amended by a First Amendment thereto dated as of February 15, 2002 and a Second
Amendment thereto dated as of August 19, 2002 (as amended, modified, extended or
restated from time to time, the "Credit Agreement");

          WHEREAS, Section 6.6(ix) of the Credit Agreement permits indebtedness
for Borrowed Money in connection with real estate financings provided that
neither the Borrower nor any Subsidiary of Borrower shall Guarantee any such
Indebtedness for Borrowed Money. In connection with Borrower's acquisition of
Argosy, Borrower has acquired a Subsidiary, Argosy, who has guarantied
Indebtedness for Borrowed Money of its Subsidiary, Western State University
College of Law ("WSU"), in connection with real estate financings, as more fully
described in that certain memorandum delivered by Borrower to Agent and the
Banks on April     , 2003 (collectively, the "Guarantee Memo") and the Borrower
               ----
has requested that the Banks waive the requirement that Borrower comply with the
covenant set forth in Section 6.6(ix) for the period beginning on the effective
date of the Borrower's acquisition of Argosy to date hereof and amend such
covenant to permit such Guarantee for periods after the date hereof, subject to
the terms and conditions hereof;

          NOW, THEREFORE, in consideration of the foregoing and intending to be
legally bound, the parties hereto agree as follows:

                                   AGREEMENT:

          1. Capitalized terms used herein and not otherwise defined shall have
the meanings given to them under the Credit Agreement.

<PAGE>

          2. The Banks and the Loan Parties hereby amend and restate subsection
(ix) of Section 6.6 in its entirety to read as follows:

               "(ix) Indebtedness for Borrowed Money in a principal amount of up
to $25,000,000 in the aggregate outstanding in connection with real estate
financings and sale and lease-back real estate transactions (other than sale and
lease-back transactions prohibited by Section 6.5 above), including, without
limitation, any reimbursement obligations incurred with respect to a bond
financing that is secured by real estate, provided that, neither the Borrower
nor any Subsidiary of the Borrower shall Guarantee any Indebtedness for Borrowed
Money permitted under this Subsection (other than the Guarantee by Argosy of the
Indebtedness for Borrowed Money of WSU in favor of Union Bank of California in
connection with a real estate financing of real property owned by WSU, solely to
the extent that the aggregate principal amount of such Indebtedness subject to
such Guarantee does not exceed $3,450,000) and, further provided that, if such
Indebtedness for Borrowed Money is incurred by a Subsidiary, the Subsidiary
shall execute a Subsidiary Guarantee."

The remainder of Section 6.6 is unchanged hereby.

          3. The Banks hereby waive non-compliance with Section 6.6(ix) of the
Credit Agreement from the date of the Borrower's acquisition of Argosy to the
date hereof, to the extent that such non-compliance was created solely by (a)
the Guarantee by Argosy of the Indebtedness for Borrowed Money in favor of WSU
as more fully described in the Guarantee Memo and (b) the failure of WSU to
execute and deliver to the Agent for the benefit of the Banks a Subsidiary
Guaranty as required by Section 6.6(ix) of the Credit Agreement, provided that
the Borrower hereby represents, warrants and covenants that: (i) Borrower's
non-compliance with Section 6.6(ix) was created solely by the Guarantee
described in clause (a) above (the circumstances giving rise to such Guarantee
are as described in the Guarantee Memo), and the failure to provide a Subsidiary
Guaranty described in clause (b) above, and (ii) the aggregate principal amount
of Indebtedness for Borrowed Money Guaranteed thereunder does not and will not
exceed $3,450,000. Any breach of the warranties and covenants contained in
clauses (i) or (ii) of the preceding sentence shall constitute an Event of
Default under the Credit Agreement. The Banks do not amend, modify or waive the
covenant contained in Section 6.6(ix) for periods prior to the date of the
Borrower's acquisition of Argosy or after the date hereof except as expressly
set forth herein.

          4. The Borrower represents and warrants that (after giving effect to
the waiver set forth in paragraph 3 above and the delivery by WSU to the Agent
of a Subsidiary Guaranty as required by paragraph 12 below) the Loan Parties are
in full compliance with each of the provisions of the Credit Agreement and that
no Default or Event of Default exists (after giving effect to the waiver set
forth in Paragraphs 3 above and the delivery by WSU to the Agent of a Subsidiary
Guaranty as required by paragraph 12 below). The Banks do not waive any
provisions of the Credit Agreement, except as expressly set forth herein. All
terms of the Credit Agreement and each of the other Loan Documents remain in
full force and effect on and after the date hereof except as provided herein.

                                        2

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          5. The Borrower warrants that the Guarantee Memo is true and correct
in all material respects.

          6. By its execution below, the Borrower acknowledges and agrees that
except as set forth in this Third Amendment and the documents executed and
delivered in connection herewith or in connection with the Credit Agreement, the
Credit Agreement and the other Loan Documents and all obligations thereunder
remain in full force and effect with respect to the Bank Indebtedness.

          7. The Credit Agreement, the Loan Documents and all prior amendments
and modifications thereto are hereby modified solely to the extent that any of
the terms or provisions thereof are irreconcilably inconsistent with the terms
and provisions of this Third Amendment.

          8. The Recitals set forth above are incorporated herein by reference
and made a part hereof, and the Borrower represents, warrants and attests to the
veracity thereof as well as to the veracity of the representations set forth in
the Credit Agreement as of the date hereof (except representations which
expressly relate solely to an earlier date or time, which representations shall
be true as of the specific dates or times referred to therein).

          9. The Borrower represents that this Third Amendment has been duly
executed and delivered by the Borrower and constitutes the legal, valid and
binding obligations of the Borrower, enforceable against the Borrower in
accordance with its terms, except to the extent that the enforceability thereof
may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance or other similar laws affecting the enforceability of creditors
rights generally or by general equitable principles.

          10. Neither this Third Amendment nor the consummation of the
transactions contemplated herein nor the performance by the Borrower of its
obligations hereunder will (i) violate any law, rule or regulation or court
order to which the Borrower is subject; (ii) conflict with or result in a breach
of the Borrower's articles of incorporation or bylaws or any material agreement
or instrument to which any Borrower is subject or by which its properties are
bound or (iii) result in the creation or imposition of any lien, security
interest or encumbrance on the property of any Borrower, whether now owned or
hereafter acquired, other than liens in favor of Agent for the benefit of the
Lenders.

          11. This Third Amendment may be executed by different parties hereto
on any number of separate counterparts, each of which, when so executed and
delivered, shall be an original, and all such counterparts shall together
constitute one and the same instrument.

          12. This Third Amendment shall become effective when (i) it has been
executed and delivered by the Borrower, the Required Banks and the Agent and
(ii) a Subsidiary Guaranty in form and substance acceptable to the Agent has
been executed and delivered by WSU to the Agent.

                                        3

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                         [SIGNATURES BEGIN ON NEXT PAGE]

                                        4

<PAGE>

                   [SIGNATURE PAGE 1 OF 9 TO THIRD AMENDMENT]

     Executed as of the day and year first above written.

                                          EDUCATION MANAGEMENT CORPORATION

                                          By /s/ Kristen Gribble
                                             -----------------------------------
                                          Kristen Gribble, Treasurer

<PAGE>

                   [SIGNATURE PAGE 2 OF 9 TO THIRD AMENDMENT]

                                          NATIONAL CITY BANK OF PENNSYLVANIA,
                                          individually and as Agent

                                          By /s/ John L. Hayes, IV
                                             -----------------------------------
                                          John L. Hayes, IV, Vice President

<PAGE>

                   [SIGNATURE PAGE 3 OF 9 TO THIRD AMENDMENT]

                                          WACHOVIA BANK, NATIONAL ASSOCIATION,
                                          individually and as Syndication Agent

                                          By /s/ Patrick J. Kaufmann
                                             -----------------------------------
                                          Patrick J. Kaufmann, Vice President

<PAGE>

                   [SIGNATURE PAGE 4 OF 9 TO THIRD AMENDMENT]

                                          SUNTRUST BANK, individually and as
                                          Syndication Agent

                                          By /s/ Stephen Derry
                                             -----------------------------------
                                          Stephen Derry, Director

<PAGE>

                   [SIGNATURE PAGE 5 OF 9 TO THIRD AMENDMENT]

                                          FLEET NATIONAL BANK, individually
                                          and as Documentation Agent

                                          By /s/ Edward McKenney
                                             -----------------------------------
                                          Edward McKenney, Senior Vice President

<PAGE>

                   [SIGNATURE PAGE 6 OF 9 TO THIRD AMENDMENT]

                                          JPMORGAN CHASE BANK, individually
                                          and as Documentation Agent

                                          By /s/ John Malone
                                             -----------------------------------
                                          John Malone, Vice President

<PAGE>

                   [SIGNATURE PAGE 7 OF 9 TO THIRD AMENDMENT]

                                          BANK ONE, MICHIGAN

                                          By /s/ Mahua Thakurta
                                             -----------------------------------
                                          Manhua Thakurta, Associate Director

<PAGE>

                   [SIGNATURE PAGE 8 OF 9 TO THIRD AMENDMENT]

                                          FIFTH THIRD BANK

                                          By /s/ Christopher S. Helmeci
                                             -----------------------------------
                                          Christopher S. Helmeci, Vice President

<PAGE>

                   [SIGNATURE PAGE 9 OF 9 TO THIRD AMENDMENT]

                                          AMERISERV FINANCIAL BANK

                                          By /s/ Mitchell D. Edwards
                                             -----------------------------------
                                          Mitchell D. Edwards, Vice President<PAGE>
                                                                    EXHIBIT 4.09

                           FOURTH AMENDMENT TO AMENDED
                          AND RESTATED CREDIT AGREEMENT

          This Fourth Amendment to Amended and Restated Credit Agreement (the
"Amendment") is dated as of June 27, 2003, and is made by and among EDUCATION
MANAGEMENT CORPORATION, (the "Borrower"), the BANKS under the Credit Agreement
(as hereafter defined), NATIONAL CITY BANK OF PENNSYLVANIA (the "Agent"), as the
Agent for the Banks and Issuing Bank, WACHOVIA BANK, NATIONAL ASSOCIATION, as
Syndication Agent, SUNTRUST BANK, as Syndication Agent, FLEET NATIONAL BANK, as
Documentation Agent, and JPMORGAN CHASE BANK, as Documentation Agent.

                                    RECITALS:

          WHEREAS, the Borrower, the Banks and the Agent entered into that
certain Amended and Restated Credit Agreement dated as of September 20, 2001, as
amended by that First Amendment dated as of February 15, 2002, as amended by
that Second Amendment dated as of August 19, 2002 and as amended by that Waiver
and Third Amendment dated as of April 30, 2003 (as it has been and may be
amended, modified, supplemented, extended or restated from time to time, the
"Credit Agreement");

          WHEREAS, pursuant to Section 6.13(a)(vi) of the Credit Agreement, the
Borrower is permitted to make Permitted Acquisitions in each Fiscal Year to the
extent that the aggregate Consideration for such acquisitions in such Fiscal
Year does not exceed the limitation set forth in such Section, and such
Permitted Acquisitions are subject to the other terms of Section 6.13 of the
Credit Agreement;

          WHEREAS, the Borrower has requested that the Banks permit the Borrower
to acquire South University, Inc. without the Consideration paid in connection
with the acquisition of South University, Inc. decreasing the annual aggregate
Consideration limitation provided for in Section 6.13(vi) of the Credit
Agreement; and

          WHEREAS, the Banks are willing to accommodate such request of the
Borrower, subject to the terms and conditions hereof.

          NOW, THEREFORE, in consideration of the foregoing and intending to be
legally bound, the parties hereto agree as follows:

                                   AGREEMENT:

          1. Capitalized terms used herein and not otherwise defined shall have
the meanings given to them under the Credit Agreement.

<PAGE>

          2. Subsection 6.13(a)(vi) of the Credit Agreement is hereby amended
and restated as follows:

               "(vi) in connection with the closing of any single Permitted
Acquisition, the Consideration for such Permitted Acquisition other than capital
stock of the Borrower, when aggregated with the Permitted Acquisitions
(exclusive of the acquisition of Argosy and IFAC) previously consummated in such
Fiscal Year of the Borrower, shall not cause the aggregate Consideration (other
than capital stock of the Borrower) in such Fiscal Year to exceed the following
amounts for the following years:

Fiscal Year ended June 2002           $25,000,000;
Fiscal Year ended June 30, 2003       $32,500,000; and
Fiscal Year ended June 30, 2004
   and each Fiscal year thereafter    $40,000,000;

provided, however, the Consideration paid in connection with the acquisition of
South University, Inc., to the extent that such Consideration does not exceed
$55,000,000, shall be excluded from the aggregate annual Consideration
limitation for the Fiscal Year ended June 30, 2004, so long as each of the other
requirements of this Section 6.13 is met with respect to the acquisition of
South University, Inc.

          In connection with the closing of any Permitted Acquisition when the
Consideration given by the Borrower is the capital stock of the Borrower, the
Consideration, when aggregated with the Permitted Acquisitions previously
consummated in such Fiscal Year of the Borrower in which the Consideration was
capital stock of the Borrower, shall not cause the aggregate Consideration of
such Permitted Acquisitions to exceed $75,000,000.

          The Consideration in connection with the acquisition of Argosy shall
not exceed $100,000,000."

The remainder of Section 6.13 shall remain unchanged hereby.

          3. By its execution below, the Borrower and each other Loan Party
acknowledges and agrees that except as amended by this Amendment and the
documents executed and delivered in connection herewith or in connection with
the Credit Agreement, the Credit Agreement and the other Loan Documents and all
obligations thereunder remain in full force and effect with respect to the Bank
Indebtedness.

          4. The Credit Agreement, the Loan Documents and all prior amendments
and modifications thereto are hereby modified solely to the extent that any of
the terms or provisions thereof are irreconcilably inconsistent with the terms
and provisions of this Amendment.

          5. The Recitals set forth above are incorporated herein by reference
and made a part hereof, and the Borrower and each other Loan Party represents,
warrants and attests to the veracity thereof as well as to the veracity of the
representations set forth in the Credit Agreement

                                       2

<PAGE>

as of the date hereof (except representations which expressly relate solely to
an earlier date or time, which representations shall be true as of the specific
dates or times referred to therein).

          6. The Borrower and each other Loan Party represents that this
Amendment has been duly executed and delivered by the Borrower and such other
Loan Party, as applicable, and constitutes the legal, valid and binding
obligations of the Borrower, enforceable against the Borrower and such other
Loan Party in accordance with its terms, except to the extent that the
enforceability thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or other similar laws affecting the
enforceability of creditors rights generally or by general equitable principles.

          7. Neither this Amendment nor the consummation of the transactions
contemplated herein nor the performance by the Borrower or any Loan Party of its
obligations hereunder will (i) violate any law, rule or regulation or court
order to which the Borrower or such Loan Party is subject; (ii) conflict with or
result in a breach of the Borrower's or such Loan Party's articles of
incorporation or bylaws or any material agreement or instrument to which the
Borrower or other Loan Party is subject or by which its properties are bound or
(iii) result in the creation or imposition of any lien, security interest or
encumbrance on the property of the Borrower or any other Loan Party, whether now
owned or hereafter acquired, other than liens in favor of Agent for the benefit
of the Banks.

          8. This Amendment may be executed by different parties hereto on any
number of separate counterparts, each of which, when so executed and delivered,
shall be an original, and all such counterparts shall together constitute one
and the same instrument.

          9. This Amendment shall become effective when (i) it has been executed
by the Borrower and the Required Banks and acknowledged by Western State
University College of Law and delivered to the Agent and (ii) the Borrower has
paid an amendment fee of .05% multiplied by the Revolving Credit Commitment of
each Bank that executes and delivers this Amendment to Agent prior to 5:00 p.m.
on June 26, 2003 (each an "Approving Bank") to the Agent for the ratable benefit
of the Approving Banks.

                         [SIGNATURES BEGIN ON NEXT PAGE]

                                       3

<PAGE>

                   [SIGNATURE PAGE 1 OF 9 TO FOURTH AMENDMENT
                    TO AMENDED AND RESTATED CREDIT AGREEMENT]

          Executed as of the day and year first above written.

                                          EDUCATION MANAGEMENT CORPORATION

                                          By /s/ Kristen Gribble
                                             -----------------------------------
                                          Kristen Gribble, Treasurer

<PAGE>

                   [SIGNATURE PAGE 2 OF 9 TO FOURTH AMENDMENT
                    TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                          NATIONAL CITY BANK OF PENNSYLVANIA,
                                          individually and as Agent

                                          By /s/ John L. Hayes, IV
                                             -----------------------------------
                                          John L. Hayes, IV, Vice President

<PAGE>

                   [SIGNATURE PAGE 3 OF 9 TO FOURTH AMENDMENT
                    TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                          WACHOVIA BANK, NATIONAL ASSOCIATION,
                                          individually and as Syndication Agent

                                          By /s/ Patrick J. Kaufmann
                                             -----------------------------------
                                          Patrick J. Kaufmann, Vice President

<PAGE>

                   [SIGNATURE PAGE 4 OF 9 TO FOURTH AMENDMENT
                    TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                          SUNTRUST BANK, individually and as
                                          Syndication Agent

                                          By /s/ Stephen Derry
                                             -----------------------------------
                                          Stephen Derry, Director

<PAGE>

                   [SIGNATURE PAGE 5 OF 9 TO FOURTH AMENDMENT
                    TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                          FLEET NATIONAL BANK, individually and
                                          as Documentation Agent

                                          By /s/ Edward McKenney
                                             -----------------------------------
                                          Edward McKenney, Senior Vice President

<PAGE>

                   [SIGNATURE PAGE 6 OF 9 TO FOURTH AMENDMENT
                    TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                          JPMORGAN CHASE BANK, individually and
                                          as Documentation Agent

                                          By /s/ John Malone
                                             -----------------------------------
                                          John Malone, Vice President

<PAGE>

                   [SIGNATURE PAGE 7 OF 9 TO FOURTH AMENDMENT
                    TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                          BANK ONE, MICHIGAN

                                          By /s/ Mahua Thakurta
                                             -----------------------------------
                                          Manhua Thakurta, Associate Director

<PAGE>

                   [SIGNATURE PAGE 8 OF 9 TO FOURTH AMENDMENT
                    TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                          FIFTH THIRD BANK

                                          By /s/ Christopher S. Helmeci
                                             -----------------------------------
                                          Christopher S. Helmeci, Vice President

<PAGE>

                   [SIGNATURE PAGE 9 OF 9 TO FOURTH AMENDMENT
                    TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                          AMERISERV FINANCIAL BANK

                                          By /s/ Mitchell D. Edwards
                                             -----------------------------------
                                          Mitchell D. Edwards, Vice President

<PAGE>

                                     JOINDER

The undersigned hereby joins in the foregoing Amendment for purposes of
acknowledging its continuing obligations under the Subsidiary Continuing
Agreement of Guaranty and Suretyship dated as of April 30, 2003, and the
undersigned hereby confirms that all the undersigned's obligations thereunder
remain in full force and effect with respect to obligations of the Borrower and
the undersigned to the Banks.

                                          WESTERN STATE UNIVERSITY COLLEGE
                                          OF LAW

                                          By /s/ Kristen Gribble
                                             -----------------------------------
                                          Kristen Gribble, Treasurer

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