Document:

exv10w1

Exhibit 10.1

RIGHTNOW TECHNOLOGIES, INC.

2004 EMPLOYEE STOCK PURCHASE PLAN

AMENDED AND RESTATED DECEMBER 3, 2010

ARTICLE I

INTRODUCTION

     Section 1.01 Purpose. The purpose of the Plan is to provide employees of the Company
and certain related corporations with an opportunity to share in the ownership of the Company by
providing them with a convenient means for regular and systematic purchases of Common Stock and,
thus, to develop a stronger incentive to work for the continued success of the Company.

     Section 1.02 Rules of Interpretation. It is intended that the Plan be an “employee
stock purchase plan” as defined in Section 423(b) of the Code and Treasury Regulations promulgated
thereunder. Accordingly, the Plan shall be interpreted and administered in a manner consistent
therewith if so approved. Subject to Article XIII, all Participants in the Plan will have the same
rights and privileges consistent with the provisions of the Plan.

     Section 1.03 Definitions. For purposes of the Plan, the following terms will have the
meanings set forth below:

     “Acceleration Date” means the later of the date of stockholder approval or approval by
the Company’s Board of Directors of (i) any consolidation or merger of the Company in which
the Company is not the continuing or surviving corporation or pursuant to which shares of
Common Stock would be converted into cash, securities or other property, other than a
merger of the Company in which stockholders of the Company immediately prior to the merger
have substantially the same proportionate ownership of stock in the surviving corporation
immediately after the merger; (ii) any sale, exchange or other transfer (in one transaction
or a series of related transactions) of all or substantially all of the assets of the
Company; or (iii) any plan of liquidation or dissolution of the Company.

     “Affiliate” means any subsidiary corporation of the Company, as defined in Section
424(f) of the Code, whether now or hereafter acquired or established.

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

     “Committee” means the committee described in Section 10.01 of the Plan.

     “Common Stock” means the Company’s Common Stock, $.001 par value per share, as such
stock may be adjusted for changes in the stock or the Company as contemplated by Article XI
of the Plan.

     “Company” means RightNow Technologies, Inc. and its successors by merger or
consolidation as contemplated by Section 11.02 of the Plan.

 

 

     “Current Compensation” means all regular wage, salary and commission payments paid by
the Company to a Participant in accordance with the terms of his or her employment, but
excluding annual bonus payments and all other forms of special compensation.

     “Effective Date” means the date on which the Company’s registration statement relating
to its initial public offering of Common Stock is declared effective by the Securities and
Exchange Commission.

     “Fair Market Value” as of a given date means the fair market value of the Common Stock
determined by such methods or procedures as shall be established from time to time by the
Committee, but shall not be less than (i) the closing price of the Common Stock as reported
for composite transactions if the Common Stock is then traded on a national securities
exchange or (ii) the last sale price if the Common Stock is then quoted on the NASDAQ
National Market System; provided, however, that the Fair Market Value on
the Effective Date shall be the initial public offering price set forth on the cover of the
final prospectus used in connection with the Company’s initial public offering of Common
Stock. If on a given date the Common Stock is not traded on an established securities
market, the Committee shall make a good faith attempt to satisfy the requirements of this
Section 1.03 and in connection therewith shall take such action as it deems necessary or
advisable.

     “Participant” means a Regular Employee who is eligible to participate in the Plan
under Section 2.01 or any other eligible employee designated by the Committee pursuant to
Section 2.01 and who has elected to participate in the Plan or who has been automatically
enrolled in the Plan pursuant to Section 2.02.

     “Participating Affiliate” means an Affiliate that has been designated by the Committee
in advance of the Purchase Period in question as a corporation whose eligible Regular
Employees may participate in the Plan.

     “Plan” means the RightNow Technologies, Inc. 2004 Employee Stock Purchase Plan, as it
may be amended, the provisions of which are set forth herein.

     “Purchase Period” means any of the approximate six-month periods beginning on the
sixteenth day in February and ending on the fifteenth day in August, and beginning on the
sixteenth day in August and ending on the fifteenth day in February, respectively;
provided, however, that the then current Purchase Period will end upon the
occurrence of an Acceleration Date.

     “Regular Employee” means an employee of the Company or a Participating Affiliate as of
the first day of a Purchase Period, including an officer or director who is also an
employee, but excluding an employee whose customary employment is less than 20 hours per
week or less than five months per calendar year.

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     “Stock Purchase Account” means the account maintained on the books and records of the
Company recording the amount received from each Participant through payroll deductions made
under the Plan.

ARTICLE II

ELIGIBILITY AND PARTICIPATION

     Section 2.01 Eligible Employees. All Regular Employees shall be eligible to
participate in the Plan beginning on the first day of the first Purchase Period to commence after
such person becomes a Regular Employee. Subject to the provisions of Article VI of the Plan, each
such employee will continue to be eligible to participate in the Plan so long as he or she remains
a Regular Employee.

     Section 2.02 Election to Participate. All eligible Regular Employees as of the first
business day of the initial Purchase Period shall be automatically enrolled as Participants in the
Plan for the initial Purchase Period. Thereafter, an eligible Regular Employee may elect to
participate in the Plan for a given Purchase Period by filing with the Company, in advance of that
Purchase Period and in accordance with such terms and conditions as the Committee in its sole
discretion may impose, a form provided by the Company for such purpose (which authorizes regular
payroll deductions from Current Compensation beginning with the first payday in that Purchase
Period and continuing until the employee withdraws from the Plan or ceases to be eligible to
participate in the Plan).

     Section 2.03 Limits on Stock Purchase. No employee shall be granted any right to
purchase Common Stock hereunder if such employee, immediately after such a right to purchase is
granted, would own, directly or indirectly, within the meaning of Section 423(b)(3) and Section
424(d) of the Code, Common Stock possessing 5% or more of the total combined voting power or value
of all the classes of the capital stock of the Company or of all Affiliates.

     Section 2.04 Voluntary Participation. Participation in the Plan on the part of a
Participant is voluntary and such participation is not a condition of employment nor does
participation in the Plan entitle a Participant to be retained as an employee.

ARTICLE III

PAYROLL DEDUCTIONS AND STOCK PURCHASE ACCOUNT

     Section 3.01 Deduction from Pay. Except for the initial Purchase Period, the form
described in Section 2.02 of the Plan will permit a Participant to elect payroll deductions of any
multiple of 1% established by the Committee for a particular Purchase Period, but not less than 1%
or more than 15% of such Participant’s Current Compensation for each pay period during such
Purchase Period, subject to such other limitations as the Committee in its sole discretion may
impose. A Participant may cease making payroll deductions at any time, subject to such limitations
as the Committee in its sole discretion may impose. In the event that during a Purchase Period the
entire credit balance in a Participant’s Stock Purchase Account exceeds the product of (a) 85% (or

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such other percentage above 85% established by the Committee prior to the first business day
of that Purchase Period) of the Fair Market Value of the Common Stock on the first business day of
that Purchase Period and (b) 5,000, then payroll deductions for such Participant automatically
shall cease, and payroll deductions shall resume on the first pay period of the next Purchase
Period.

     Section 3.02 Credit to Account. Payroll deductions will be credited to the
Participant’s Stock Purchase Account on each payday.

     Section 3.03 Interest. No interest will be paid on payroll deductions or on any other
amount credited to, or on deposit in, a Participant’s Stock Purchase Account.

     Section 3.04 Nature of Account. The Stock Purchase Account is established solely for
accounting purposes, and all amounts credited to the Stock Purchase Account will remain part of the
general assets of the Company or the Participating Affiliate (as the case may be).

     Section 3.05 No Additional Contributions. Except during the initial Purchase Period,
a Participant may not make any payment into the Stock Purchase Account other than the payroll
deductions made pursuant to the Plan. During the initial Purchase Period, a Participant may
contribute up to ten percent (10%) of the Participant’s Current Compensation during the initial
Purchase Period to the Participant’s Stock Purchase Account by delivery of a personal check or
money order to the Company. Contributions to a Participant’s Stock Purchase Account during the
initial Purchase Period must be made on or prior to December 1, 2004. Any Participant’s
contribution shall be credited to the Participant’s Stock Purchase Account and such funds shall be
held by the Company on the terms and conditions of this Article III.

ARTICLE IV

RIGHT TO PURCHASE SHARES

     Section 4.01 Number of Shares. Each Participant will have the right to purchase on
the last business day of the Purchase Period all, but not less than all, of the number of whole
shares of Common Stock that can be purchased at the price specified in Section 4.02 of the Plan
with the entire credit balance in the Participant’s Stock Purchase Account, subject to the
limitations that (a) no more than 5,000 shares of Common Stock may be purchased under the Plan by
any one Participant for a given Purchase Period, and (b) in accordance with Section 423(b)(8) of
the Code, no more than $25,000 in Fair Market Value (determined at the beginning of each Purchase
Period) of Common Stock and other stock may be purchased under the Plan and all other employee
stock purchase plans (if any) of the Company and the Affiliates by any one Participant for any
calendar year. If the purchases for all Participants for any Purchase Period would otherwise cause
the aggregate number of shares of Common Stock to be sold under the Plan to exceed the number
specified in Section 10.04 of the Plan, each Participant shall be allocated a pro rata portion of
the Common Stock to be sold for such Purchase Period.

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     Section 4.02 Purchase Price. The purchase price (“Purchase Price”) for the initial
Purchase Period shall be the lesser of (a) the Fair Market Value of the Common Stock on the
Effective Date or (b) 85% of the Fair Market Value of the Common Stock on the last business day of
the initial Purchase Period, rounded up to the next higher full cent. The Purchase Price for any
subsequent Purchase Period shall be that price as established by the Committee prior to the first
business day of that Purchase Period, which price may, in the discretion of the Committee, be a
price which is not fixed or determinable as of the first business day of that Purchase Period;
provided, however, that in no event shall the purchase price for any Purchase
Period after the initial Purchase Period be less than the lesser of (x) 85% of the Fair Market
Value of the Common Stock on the first business day of that Purchase Period or (y) 85% of the Fair
Market Value of the Common Stock on the last business day of that Purchase Period, in each case
rounded up to the next higher full cent.

ARTICLE V

EXERCISE OF RIGHT

     Section 5.01 Purchase of Stock. On the last business day of a Purchase Period, the
entire credit balance in each Participant’s Stock Purchase Account will be used to purchase the
number of whole shares (for this purpose any fractional share as calculated under this Section 5.01
will be rounded down to the next lower whole share) of Common Stock purchasable with such amount
(subject to the limitations of Section 4.01 of the Plan), unless the Participant has filed with the
Company, in advance of that date and subject to such terms and conditions as the Committee in its
sole discretion may impose, a form provided by the Company which requests the distribution of the
entire credit balance in cash.

     Section 5.02 Cash Distributions. Any amount remaining in a Participant’s Stock
Purchase Account after the last business day of a Purchase Period will be paid to the Participant
in cash within thirty (30) days after the end of that Purchase Period; provided,
however, that if the amount remaining in the Participant’s Stock Purchase Account at the
end of a Purchase Period results from the fact that such amount was not sufficient to purchase a
whole share of Common Stock, such amount will be transferred to the Participant’s Stock Purchase
Account for the immediately succeeding Purchase Period.

     Section 5.03 Notice of Acceleration Date. The Company shall use its best efforts to
notify each Participant in writing at least 10 days prior to any Acceleration Date that the then
current Purchase Period will end on such Acceleration Date.

     Section 5.04 Taxes. Participants are responsible for the payment of all income
taxes, employment, social insurance, welfare and other taxes under applicable law relating to any
amounts deemed under the laws of the country of their residency or of the organization of the
Participating Affiliate which employs them to constitute income arising out of the Plan, the
purchase and sale of shares of Common Stock pursuant to this Plan and the distribution of Common
Stock or cash to the Participant in accordance with this Plan. Each Participant hereby authorizes
the relevant Participating Affiliate to make

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appropriate withholding deductions from each Participant’s compensation, which shall be in
addition to any payroll deductions made pursuant to Section 3.01 above, and to pay such amounts to
the appropriate tax authorities in the relevant country or countries in order to satisfy any of the
above tax liabilities of the Participant under applicable law.

ARTICLE VI

WITHDRAWAL FROM PLAN; SALE OF STOCK

     Section 6.01 Voluntary Withdrawal. A Participant may, in accordance with such terms
and conditions as the Committee in its sole discretion may impose, withdraw from the Plan and cease
making payroll deductions by filing with the Company a form provided for this purpose. In such
event, the entire credit balance in the Participant’s Stock Purchase Account will be paid to the
Participant in cash within 30 days. A Participant who withdraws from the Plan will not be eligible
to reenter the Plan until the beginning of the next Purchase Period following the date of such
withdrawal.

     Section 6.02 Death. Subject to such terms and conditions as the Committee in its sole
discretion may impose, upon the death of a Participant, no further amounts shall be credited to the
Participant’s Stock Purchase Account. Thereafter, on the last business day of the Purchase Period
during which such Participant’s death occurred and in accordance with Section 5.01 of the Plan, the
entire credit balance in such Participant’s Stock Purchase Account will be used to purchase Common
Stock, unless such Participant’s estate has filed with the Company, in advance of that day and
subject to such terms and conditions as the Committee in its sole discretion may impose, a form
provided by the Company which elects to have the entire credit balance in such Participant’s Stock
Account distributed in cash within 30 days after the end of that Purchase Period or at such earlier
time as the Committee in its sole discretion may decide. Each Participant, however, may designate
one or more beneficiaries who, upon the Participant’s death, are to receive the Common Stock or the
amount that otherwise would have been distributed or paid to the Participant’s estate and may
change or revoke any such designation from time to time. No such designation, change or revocation
will be effective unless made by the Participant in writing and filed with the Company during the
Participant’s lifetime. Unless the Participant has otherwise specified the beneficiary
designation, the beneficiary or beneficiaries so designated will become fixed as of the date of the
death of the Participant so that, if a beneficiary survives the Participant but dies before the
receipt of the payment due such beneficiary, the payment will be made to such beneficiary’s estate.

     Section 6.03 Termination of Employment. Subject to such terms and conditions as the
Committee in its sole discretion may impose, upon the termination of a Participant’s employment
with the Company or a Participating Affiliate for any reason other than death, no further amounts
shall be credited to the Participant’s Stock Purchase Account. Thereafter, on the last business day
of the Purchase Period during which such Participant’s termination occurred and in accordance with
Section 5.01 of the Plan, the entire credit balance in such Participant’s Stock Purchase Account
will be used to purchase Common Stock, unless such Participant has filed with the Company, in
advance of that day and subject to such terms and conditions as the Committee in its sole

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discretion may impose, a form provided by the Company which elects to receive the entire
credit balance in such Participant’s Stock Purchase Account in cash within 30 days after the end of
that Purchase Period, provided that such Participant shall have no right to purchase Common
Stock in the event that the last day of such a Purchase Period occurs more than three months
following the termination of such Participant’s employment with the Company. For purposes of this
Section 6.03, a transfer of employment to any Affiliate, or a leave of absence that has been
approved by the Committee, will not be deemed a termination of employment as a Regular Employee.

     Section 6.04 No Employment Rights. Nothing in this Plan shall confer on any
Participant any express or implied right to continued employment by the Company or any of its
Affiliates, whether for the duration of the Plan or otherwise. Nothing in this Plan shall confer
on any person any legal or equitable right against the Company or any of its Affiliates, directly
or indirectly, or give rise to any cause of action at law or in equity against the Company or any
of its Affiliates. Neither the Common Stock purchased hereunder nor any other benefits conferred
hereby, including the right to purchase Common Stock at a discount, shall form any part of the
wages or salary of any eligible employees or Participants for purposes of severance pay or
termination indemnities, irrespective of the reason for termination of employment. Under no
circumstances shall any person ceasing to be an employee of the Company or any of its Affiliates be
entitled to any compensation for any loss of any right or benefit under this Plan which such
employee might otherwise have enjoyed but for termination of employment, whether such compensation
is claimed by way of damages for wrongful or unfair dismissal, breach of contract or otherwise.

ARTICLE VII

NONTRANSFERABILITY

     Section 7.01 Nontransferable Right to Purchase. The right to purchase Common Stock
hereunder may not be assigned, transferred, pledged or hypothecated (whether by operation of law or
otherwise), except as provided in Section 6.02 of the Plan, and will not be subject to execution,
attachment or similar process. Any attempted assignment, transfer, pledge, hypothecation or other
disposition or levy of attachment or similar process upon the right to purchase will be null and
void and without effect.

     Section 7.02 Nontransferable Account. Except as provided in Section 6.02 of the Plan,
the amounts credited to a Stock Purchase Account may not be assigned, transferred, pledged or
hypothecated in any way, and any attempted assignment, transfer, pledge, hypothecation or other
disposition of such amounts will be null and void and without effect.

ARTICLE VIII

STOCK CERTIFICATES

     Section 8.01 Issuance of Purchased Shares. Promptly after the last day of each
Purchase Period and subject to such terms and conditions as the Committee in its sole discretion
may impose, the Company will cause the Common Stock then purchased

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pursuant to Section 5.01 of the Plan to be issued for the benefit of the Participant and held
in the Plan pursuant to Section 8.03 of the Plan.

     Section 8.02 Completion of Issuance. A Participant shall have no interest in the
Common Stock purchased pursuant to Section 5.01 of the Plan until such Common Stock is issued for
the benefit of the Participant pursuant to Section 8.03 of the Plan.

     Section 8.03 Form of Ownership. The Common Stock issued under Section 8.01 of the
Plan will be held in the Plan (including being held for each Participant’s benefit by a broker
designated by the Company) in the name of the Participant or jointly in the name of the Participant
and another person, as the Participant may direct on a form provided by the Company, until such
time as certificates for such shares of Common Stock are delivered to or for the benefit of the
Participant pursuant to Section 8.04 of the Plan.

     Section 8.04 Delivery. Subject to such terms and conditions as the Committee in its
sole discretion may impose, by filing with the Company a form provided by the Company for such
purpose, the Participant may elect to have the Company cause to be delivered to or for the benefit
of the Participant a certificate for the number of whole shares representing the Common Stock
purchased pursuant to Section 5.01 of the Plan. The election notice will be processed as soon as
practicable after receipt. A certificate for whole shares normally will be mailed to the
Participant within five business days after receipt of the election notice.

     Section 8.05 Securities Laws. The Company shall not be required to issue or deliver
any shares representing Common Stock prior to registration under the Securities Act of 1933, as
amended, or registration or qualification under any state or foreign law if such registration is
required. The Company will use its best efforts to accomplish such registration (if and to the
extent required) not later than a reasonable time following the beginning of the initial Purchase
Period, and delivery of shares may be deferred until such registration is accomplished.

ARTICLE IX

APPROVAL DATE, AMENDMENT AND TERMINATION OF PLAN

     Section 9.01 Approval Date. The Plan was approved by the Board of Directors on July
15, 2004, and shall be approved by the stockholders of the Company prior to the Effective Date.

     Section 9.02 Plan Commencement. The initial Purchase Period under the Plan will
commence on the Effective Date. Thereafter, each succeeding Purchase Period will commence and
terminate as described under “Purchase Period” in Section 1.03 of the Plan.

     Section 9.03 Powers of Board. The Board of Directors may amend or discontinue the
Plan at any time. No amendment or discontinuation of the Plan, however, shall be made without
stockholder approval that (i) absent such stockholder approval would cause Rule 16b-3 under the
Securities Exchange Act of 1934, as amended (the

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“Act”), to become unavailable with respect to the Plan, (ii) requires stockholder approval
under any rules or regulations of the NASDAQ National Market System or any securities exchange that
are applicable to the Company, or (iii) permit the issuance of the Common Stock before payment
therefor in full.

     Section 9.04 Automatic Termination. The Plan shall terminate automatically when all
of the shares of Common Stock provided for in Section 10.04 of the Plan have been sold,
provided that such termination shall in no way affect the terms of the Plan pertaining to
any Common Stock then held under the Plan.

ARTICLE X

ADMINISTRATION

     Section 10.01 The Committee. The Plan shall be administered either by the Board of
Directors of the Company (the “Board”), by the Compensation Committee or by any other committee of
the Board established by the Board to administer the Plan (the Board or such committee is referred
to herein as the “Committee”).

     Section 10.02 Powers of Committee. Subject to the provisions of the Plan, the
Committee shall have full authority to administer the Plan, including authority to interpret and
construe any provision of the Plan, to establish deadlines by which the various administrative
forms must be received in order to be effective, and to adopt such other rules and regulations for
administering the Plan as it may deem appropriate. The Committee shall have full and complete
authority to determine whether all or any part of the Common Stock acquired pursuant to the Plan
shall be subject to restrictions on the transferability thereof or any other restrictions affecting
in any manner a Participant’s rights with respect thereto but any such restrictions shall be
contained in the form by which a Participant elects to participate in the Plan pursuant to Section
2.02 of the Plan. The Committee also shall have full and complete authority to set the Purchase
Price within the range set forth in this Plan and to set the commencement of the Purchase Periods
after the initial Purchase Period. Decisions of the Committee will be final and binding on all
parties who have an interest in the Plan.

     Section 10.03 Power and Authority of the Board of Directors. Notwithstanding anything
to the contrary contained herein, the Board of Directors may, at any time and from time to time,
without any further action of the Committee, exercise the powers and duties of the Committee under
the Plan.

     Section 10.04 Stock to be Sold. The Common Stock to be issued and sold under the Plan
may be authorized but unissued shares or shares acquired in the open market or otherwise. Except
as provided in Section 11.01 of the Plan, the aggregate number of shares of Common Stock to be sold
under the Plan will not exceed 750,000 shares, plus an automatic annual increase on the first day
of each year beginning in 2005 and ending in 2014 equal to the lesser of (i) 500,000 shares of
Common Stock or (ii) two percent of the number of shares of Common Stock outstanding on the last
day of the immediately preceding year or (iii) such lesser number as determined by the Board.

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     Section 10.05 Data Privacy. Participation in the Plan shall be subject to the
effective consent of the Participant under applicable law to the collection, use, compilation and
disclosure by the Company and/or its Affiliates of personal data and/or sensitive personal data
about the Participant as the Company and/or its Affiliates may require to implement, administer and
manage the Plan.

     Section 10.06 Notices. Notices to the Committee should be addressed as follows:

RightNow Technologies, Inc.

136 Enterprise Boulevard

Bozeman, MT 59718

Attention: Secretary

ARTICLE XI

ADJUSTMENT FOR CHANGES IN STOCK OR COMPANY

     Section 11.01 Stock Dividend or Reclassification. If the outstanding shares of Common
Stock are increased, decreased, changed into or exchanged for a different number or kind of
securities of the Company, or shares of a different par value or without par value, through
reorganization, recapitalization, reclassification, stock dividend, stock split, amendment to the
Company’s certificate of incorporation, reverse stock split or otherwise, an appropriate adjustment
shall be made in the maximum numbers and kind of securities to be purchased under the Plan with a
corresponding adjustment in the purchase price to be paid therefor.

     Section 11.02 Merger or Consolidation. If the Company is merged into or consolidated
with one or more corporations during the term of the Plan, appropriate adjustments will be made to
give effect thereto on an equitable basis in terms of issuance of shares of the corporation
surviving the merger or of the consolidated corporation, as the case may be.

ARTICLE XII

APPLICABLE LAW

     Rights to purchase Common Stock granted under the Plan shall be construed and shall take
effect in accordance with the laws of the State of Delaware.

ARTICLE XIII

INTERNATIONAL PARTICIPANTS

     The Committee shall have the power and authority to allow Participants of those Participating
Affiliates, so designated by the Committee, who work or reside outside of the United States on
behalf of the Company an opportunity to acquire Common Stock pursuant to the Plan in accordance
with such special terms and conditions as the Committee may designate with respect to each such
Participating Affiliate. Without limiting the authority of the Committee, the special terms and
conditions which may be established with respect to each such Participating Affiliate, and which
need not be the same for all Participating Affiliates, include but are not limited to the right to
participate,

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procedures for elections to participate, the payment of any interest with respect to amounts
received from or credited to accounts held for the benefit of Participants, the purchase price of
any shares to be acquired, the length of any purchase period, the maximum amount of contributions,
credits or Common Stock which may be acquired by any Participant, and a Participant’s rights in the
event of his or her death, disability, withdrawal from the Plan, termination of employment on
behalf of the Company and all matters related thereto. Any such special terms and conditions shall
be set forth in one or more Appendices to the Plan, which shall be deemed incorporated into and
form part of the Plan. Notwithstanding the foregoing, this Article XIII is not subject to Section
423 of the Code or any other provision of the Plan that refers to or is based upon such Section,
and for tax purposes, this Article XIII shall be treated as separate and apart from the balance of
the Plan.

Page 11exv10w1

EXHIBIT 10.1

AMENDMENT NO. 6 TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

AMENDMENT NO. 6 dated as of October 29, 2010 (“Amendment”) between VIRCO MFG. CORPORATION,
a Delaware corporation (the “Borrower”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (the
“Bank”), amending the Second Amended and Restated Credit Agreement dated as of March 12,
2008 (as amended, restated, supplemented or otherwise modified, the “Credit Agreement”)
between the Borrower and the Bank. Terms defined in the Credit Agreement and not otherwise defined
herein are used herein as therein defined.

WHEREAS, subject to the satisfaction of the conditions set forth herein, the Borrower and the Bank
have agreed to certain amendments to the Credit Agreement.

NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and
valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties
hereto agree as follows:

Section 1. Amendment to Section 1.1(b) of the Credit Agreement. Section 1.1(b) of the Credit
Agreement hereby is amended by deleting the number “$10,000,000” appearing in the first sentence
thereof and replacing it with “$2,500,000.”

Section 2. Amendment to Section 5.8 of the Credit Agreement. Section 5.8 of the Credit Agreement
hereby is amended and restated in its entirety as follows:

Section 5.8 Dividends, Distributions.

Make any distribution or declare or pay any dividends (in cash or other property, including stock
of Borrower) on, or purchase, acquire, redeem, or retire any of Borrower’s stock, of any class,
whether now or hereafter outstanding (each, a “Restricted Payment”); provided, however,
that the Borrower may make Restricted Payments in an aggregate amount in any fiscal year not to
exceed $1,750,000 so long as (a) no Default or Event of Default has occurred and is continuing or
would result therefrom, (b) Borrower shall have delivered to Bank a Compliance Certificate, duly
executed by the chief financial officer of Borrower, demonstrating that Borrower shall be in pro
forma compliance with Sections 5.11 and 5.13 after giving effect to the subject Restricted Payment
and (c) immediately after giving effect to any such Restricted Payment, Availability is not less
than $5,000,000.

Section 3. Amendment to Section 5.10 of the Credit Agreement. Section 5.10 of the Credit Agreement
hereby is amended by deleting the number “$10,000,000” appearing therein and replacing it with
“$2,500,000.”

Section 4. Amendment to Section 5.11 of the Credit Agreement. Section 5.11 of the Credit Agreement
hereby is amended and restated in its entirety as follows:

Section 5.11 Minimum Net Income.

For each fiscal quarter of the Borrower permit Net Income plus federal, local and state income
taxes as of the end of such fiscal quarter to be less than the amount set forth opposite such
fiscal quarter below:

	 	 	 
	Fiscal Quarter Ending	 	Minimum Net Income
	October 31, 2010

	 	$(700,000)
	January 31, 2011
	 	$(6,100,000)
	April 30, 2011
	 	$(5,600,000)
	July 31, 2011
	 	$6,200,000
	October 31, 2011
	 	$2,900,000
	January 31, 2012
	 	$(4,800,000)

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For the fiscal year of the Borrower ended January 31, 2011, permit Net Income plus federal, local
and state income taxes as of the end of such fiscal year to be less than $(8,200,000), and for any
fiscal year of the Borrower thereafter, permit Net Income plus federal, local and state income
taxes as of the end of such fiscal year to be less than $1.00.

Section 5. Amendment to Section 5.12 of the Credit Agreement. Section 5.12 of the Credit Agreement
is hereby amended and restated in its entirety as follows:

Section 5.12. [Reserved].

Section 6. Amendment to Section 5.13 of the Credit Agreement. Section 5.13 of the Credit Agreement
is hereby amended and restated in its entirety as follows:

Section 5.13. Maximum Leverage Ratio.

Permit the Consolidated Leverage Ratio, measured as of the end of each fiscal quarter of each
fiscal year, to be less than the required ratio set forth in the following table for the applicable
fiscal quarter:

	 	 	 
	Applicable Fiscal Quarter	 	Maximum Leverage Ratio
	Fiscal quarter ended 

January 31st of each fiscal year
	 	1.25 to 1.00
	Fiscal quarter ended 

April 30th of each fiscal year
	 	1.75 to 1.00
	Fiscal quarter ended 

July 31st of each fiscal year
	 	1.75 to 1.00
	Fiscal quarter ended 

October 31st of each fiscal year
	 	1.25 to 1.00

Section 7. Amendment to Annex A to the Credit Agreement. (a) The following definitions appearing
in Annex A to the Credit Agreement hereby are amended and restated as follows:

“Consolidated Leverage Ratio” means, as of any date of determination, the ratio of (a) (i)
the total liabilities of Borrower and its Subsidiaries on a consolidated basis, determined in
accordance with GAAP minus (ii) the aggregate outstanding Indebtedness of the Borrower and its
subsidiaries that is subordinated to the Obligations hereunder plus (iii) the aggregate amount of
reimbursement or other obligations of Borrower and its Subsidiaries in respect of letters of credit
plus (iv) the aggregate amount of contingent obligations of the Borrower and its Subsidiaries, in
each case outstanding as of such date to (b) Tangible Net Worth.

“Maximum Line of Credit Amount” means, as of any date of determination, an amount equal
to:

for the period commencing on February 1st of each fiscal year through and including
March 31st of such fiscal year, $35,000,000,

for the period commencing on April 1st of each fiscal year through and including
September 30th of such fiscal year, $45,000,000,

for the period commencing on October 1st of each fiscal year through and including
October 31st of such fiscal year, $35,000,000, and

for the period commencing on November 1st of each fiscal year through and including
January 31st of the subsequent fiscal year, $20,000,000.

2

 

(b) Annex A to the Credit Agreement hereby is hereby amended by adding the following definitions in
appropriate alphabetical order:

“Tangible Net Worth” means, at any date, the consolidated stockholders’ equity of the
Borrower and its Subsidiaries determined in accordance with GAAP, plus the aggregate outstanding
Indebtedness of the Borrower and its subsidiaries that is subordinated to the Obligations
hereunder, minus the aggregate amount of intangible assets of the Borrower and its Subsidiaries,
determined in accordance with GAAP, minus the aggregate amount of receivables and Indebtedness owed
to the Borrower or any Subsidiary thereof from an Affiliate of the Borrower or its Subsidiaries
(other than the Borrower or any Subsidiary thereof).

Section 8. Amendment to Amended and Restated Line of Credit Note. Exhibit A (Form of Revolving
Line of Credit Note) to the Credit Agreement is hereby deleted and replaced in its entirety with
Exhibit A attached hereto.

Section 9. Amendment to Compliance Certificate. Exhibit B (Form of Compliance Certificate) to the
Credit Agreement is hereby deleted and replaced in its entirety with Exhibit B attached hereto.

Section 10. Consent to Amendments. The Guarantor hereby acknowledges and consents to this
Amendment, and affirms and acknowledges that the Guaranty and each other Loan Document to which it
is a party remains in full force and effect and that such Person remains obligated thereunder
without defense, offset or counterclaim of any kind whatsoever, as if such Guaranty or other Loan
Document were executed and delivered to the Bank on the date hereof.

Section 11. Representations and Warranties. To induce the Bank to enter into this Amendment, the
Borrower represents and warrants to the Bank that:

Representations and Warranties in Credit Agreement. Each of the representations and
warranties of the Borrower and its Subsidiaries contained in the Credit Agreement, the other Loan
Documents or in any document or instrument delivered pursuant to or in connection with the Credit
Agreement (i) were true and correct when made and (ii) after giving effect to this Amendment,
continue to be true and correct on the date hereof (except to the extent that such representations
and warranties relate expressly to an earlier date).

Authority. The execution and delivery by the Borrower of this Amendment and the performance by the
Borrower of its obligations under this Amendment (i) are within its power and authority, (ii) have
been duly authorized by all necessary proceedings, (iii) do not and will not conflict with or
result in any breach or contravention or any provision of law, statute, rule or regulation to which
the Borrower is subject or any judgment, order, writ, injunction, license or permit applicable to
the Borrower so as to materially adversely affect the assets, business or any activity of the
Borrower, (iv) do not conflict with any provision of the certificate of incorporation or bylaws of
the Borrower or any agreement or other instrument binding upon the Borrower, (v) do not and will
not require any waivers, consents or approvals by any of its creditors which have not been
obtained, or (vi) do not and will not require any approval which has not been obtained.

Enforceability of Obligations. This Amendment and the Credit Agreement, as amended hereby,
constitute the legal, valid and binding obligations of the Borrower enforceable against the
Borrower in accordance with its terms, except as enforceability is limited by bankruptcy,
insolvency, reorganization, moratorium or other laws relating to or affecting generally the
enforcement of creditors’ rights and except to the extent that availability of the remedy of
specific performance or injunctive relief is subject to the discretion of the court before which
any proceeding therefor may be brought.

No Event of Default. No Event of Default or Default has occurred and is continuing.

Section 12. Conditions to Effectiveness. This Amendment shall become effective on the date when
the following conditions precedent have been satisfied (the “Sixth Amendment Effective
Date”):

The Borrower, the Guarantor and the Bank shall have delivered an executed counterpart of this
Amendment.

The Borrower and the Guarantor shall have delivered to the Bank a certificate, signed by a duly
appointed officer of such Person, dated as of the Sixth Amendment Effective Date, certifying as to
the incumbency of such officer, and attaching or making certifications that no changes have been
made to the copies last delivered to the Bank of, the Governing Documents of such Person and any
resolutions of such Person approving the execution of this Amendment.

3

 

No Event of Default or Default shall have occurred and be continuing or would result after giving
effect to the transactions contemplated hereby.

The representations and warranties set forth in Section 11 hereof shall be true and correct on the
Sixth Amendment Effective Date.

No injunction, writ, restraining order, or other order of any nature prohibiting, directly or
indirectly, the consummation of the transactions contemplated herein shall have been issued and
remain in force by any Governmental Authority against the Borrower, the Guarantor or the Bank.

The Borrower shall have paid all reasonable out-of-pocket costs and expenses of the Bank, to the
extent invoices therefor have been presented.

All other documents and legal matters in connection with the transactions contemplated by this
Amendment shall have been delivered or executed or recorded and shall be in form and substance
satisfactory to the Bank.

Section 13. Admissions and Acknowledgments. The Borrower and the Guarantor expressly acknowledges
and agrees with each of the following:

That such Person does not dispute the validity or enforceability of any of the Loan Documents or
any of their respective obligations under any of the foregoing, or the validity, priority,
enforceability, scope or extent of any charge, Lien, security interest or any other encumbrance of
the Bank in, on or against any of the Collateral in any judicial, administrative or other
proceeding;

That such Person shall not challenge or dispute the validity of any of its obligations under the
Loan Documents to which it is party or any other obligations incurred by such Person pursuant to
the Loan Documents; and

That the Indebtedness evidenced by the Loan Documents is secured by first priority, non-avoidable,
perfected, valid and enforceable liens on and security interests in the Collateral, subject only to
Permitted Liens.

Section 14. Reference to and Effect on Loan Documents.

Upon the effectiveness of this Amendment, on and after the date hereof, each reference in the
Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import, and each
reference in the other Loan Documents to the Credit Agreement, shall mean and be a reference to the
Credit Agreement as amended hereby.

Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit,
impair, constitute a waiver of, or otherwise affect the rights and remedies of the Bank under the
Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way
affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit
Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and
shall continue in full force and effect.

Nothing herein shall be deemed to entitle the Borrower or any Guarantor to a waiver, amendment,
modification or other change of any of the terms, conditions, obligations, covenants or agreements
contained in the Credit Agreement or any other Loan Document in similar or difference
circumstances.

This Amendment shall be a Loan Document for all purposes.

Section 15. Benefits of Amendment. The terms and provisions of this Amendment shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and assigns to
the extent contemplated by the Credit Agreement.

Section 16. Interpretation. The Article and Section headings used in this Amendment are for
convenience of reference only and shall not affect the construction hereof.

Section 17. Execution in Counterparts. This Amendment may be executed in any number of
counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an
original and all of which counterparts, taken together, shall constitute but one and the same
Amendment. Faxed signatures of this Amendment shall be binding for all purposes.

Section 18. Severability. If any provision of this Amendment shall be held to be invalid, illegal
or unenforceable under applicable law in any jurisdiction, such provision shall be ineffective only
to the extent of such

4

 

invalidity, illegality or unenforceability, which shall not affect any other provisions hereof or
the validity, legality and enforceability of such provision in any other jurisdiction.

Section 19. Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of California. The arbitration provisions of Section 7.11 of the Credit
Agreement are incorporated herein by reference.

Section 20. Expenses. The Borrower agrees to pay the reasonable out-of-pocket expenses of the
Bank, including but not limited to the reasonable fees, charges and disbursements, including but
not limited to the fees, charges and disbursements of Gibson, Dunn & Crutcher LLP, special counsel
for the Bank, incurred in connection with the preparation, negotiation, execution and delivery of
this Amendment and any subsequent waiver, amendment or modification of the Credit Agreement or any
other Loan Document and the security arrangements in connection herewith or therewith.

Section 21. No Course of Dealing. The execution and delivery of this Amendment shall not establish
a course of dealing among the Bank, the Borrower and the Guarantors or in any other way obligate
the Bank to hereafter provide any further amendments, waivers, or consents of any kind to the
Borrower and the Guarantors.

Section 22. Arm’s Length Agreement. Each of the parties to this Amendment agrees and acknowledges
that this Amendment has been negotiated in good faith, at arm’s length, and not by any means
forbidden by law.

Section 23. Entire Agreement. This Amendment together with all other instruments, agreements, and
certificates executed by the parties in connection herewith or with reference thereto, embody the
entire understanding and agreement between the parties hereto and thereto with respect to the
subject matter hereof and thereof and supercede all prior agreements, understandings, and
inducements, whether express or implied, oral or written.

[Signature Pages Follow]

5

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered as
of the date first set forth above.

	 	 	 	 	 
	VIRCO MFG. CORPORATION,

as the Borrower

 	 	 
	By:  	/s/ Robert E. Dose
 	 	 
	Name:  	Robert E. Dose 	 	 
	Title:  	Vice President — Finance, Secretary and Treasurer 	 	 
	 
 
	VIRCO, INC.,

as the Guarantor

 	 	 
	By:  	/s/ Robert E. Dose
 	 	 
	Name:  	Robert E. Dose 	 	 
	Title:  	Vice President — Finance, Secretary and Treasurer 	 	 
	 

 

 

	 	 	 	 	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION

	 	 
	By:  	/s/ Mehdi Emrani
 	 	 
	Name:  	Mehdi Emrani 	 	 
	Title:  	Vice President 	 	 
	 

 

 

EXHIBIT A

FORM OF

AMENDED AND RESTATED REVOLVING LINE OF CREDIT NOTE

			
	 	 	 
	$45,000,000
	 	West Covina, California

Original date: July 31, 2008, as

Amended and Restated on March 27, 2009

Amended and Restated as of: January 29, 2010

Amended as of July 30, 2010

Amended and Restated as of October 29, 2010

FOR VALUE RECEIVED, the undersigned VIRCO MFG. CORPORATION (“Borrower”) promises to pay to
the order of WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”) at its office at San Gabriel
Valley Regional Commercial Banking Office, 1000 Lakes Drive, Suite 250, West Covina, California, or
at such other place as the holder hereof may designate, in lawful money of the United States of
America and in immediately available funds, the principal sum of Forty-Five Million Dollars
($45,000,000), or so much thereof as may be advanced and be outstanding, with interest thereon, to
be computed on each advance from the date of its disbursement as set forth herein.

This Revolving Line of Credit Note (this “Note”) is the Line of Credit Note issued pursuant
to the Second Amended and Restated Credit Agreement dated as of March 12, 2008 (as amended,
restated, supplemented or otherwise modified, the “Credit Agreement”) between Borrower and
Bank. Terms defined in the Credit Agreement and not otherwise defined herein are used herein as
therein defined. Reference hereby is made to the Loan Documents for a description of the assets in
which a Lien has been granted, the nature and extent of the security and the guaranties, the terms
and conditions upon which the Liens and each guaranty were granted and the rights of the holder of
this Note in respect thereof. This Note amends and restates in its entirety the Revolving Line of
Credit Note issued by Borrower to the order of Bank on January 29, 2010 (as amended on July 30,
2010) pursuant to the Credit Agreement, which amended and restated in its entirety that certain
Revolving Line of Credit Note issued by Borrower to the order of Bank on March 27, 2009 pursuant to
the Credit Agreement, which amended and restated in its entirety that certain Revolving Line of
Credit Note issued by Borrower to the order of Bank on July 31, 2008, and shall not constitute a
novation, extinguishment or refinancing of the amounts outstanding on this date.

DEFINITIONS:

As used herein, the following terms shall have the meanings set forth after each, and any other
term defined in this Note shall have the meaning set forth at the place defined:

Reserved.

“Base Rate” means, for any day, a fluctuating rate equal to the highest of: (i) the Prime
Rate in effect on such day, (ii) a rate determined by Bank to be 1.50% above Daily One Month LIBOR,
and (iii) the Federal Funds Rate plus 1.50%.

“Daily One Month LIBOR” means, for any day, the rate of interest equal to LIBOR then in
effect for delivery for a one (1) month period.

“Federal Funds Rate” means, for any day, the rate per annum 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 for the immediately preceding day, as published by the Federal
Reserve Bank of New York; provided that if no such rate is so published on any day, then the
Federal Funds Rate for such day shall be the rate most recently published.

1

 

Reserved.

“LIBOR” means the rate per annum (rounded upward, if necessary, to the nearest whole 1/8 of
1%) and determined pursuant to the following formula:

				
	LIBOR =     	 	Base LIBOR 

100% – LIBOR Reserve Percentage	 

“Base LIBOR” means the rate per annum for United States dollar deposits quoted by Bank (A)
for the purpose of calculating effective rates of interest for loans making reference to LIBOR, as
the Inter-Bank Market Offered Rate, with the understanding that such rate is quoted by Bank for the
purpose of calculating effective rates of interest for loans making reference thereto, on the first
day of a Fixed Rate Term for delivery of funds on said date for a period of time approximately
equal to the number of days in such Fixed Rate Term and in an amount approximately equal to the
principal amount to which such Fixed Rate Term applies, or (B) for the purpose of calculating
effective rates of interest for loans making reference to Daily One Month LIBOR, as the Inter-Bank
Market Offered Rate in effect from time to time for delivery of funds for one (1) month in amounts
approximately equal to the principal amount of such loans. Borrower understands and agrees that
Bank may base its quotation of the Inter-Bank Market Offered Rate upon such offers or other market
indicators of the Inter-Bank Market as Bank in its discretion deems appropriate including, but not
limited to, the rate offered for U.S. dollar deposits on the London Inter-Bank Market.

“LIBOR Reserve Percentage” means the reserve percentage prescribed by the Board of
Governors of the Federal Reserve System (or any successor) for “Eurocurrency Liabilities” (as
defined in Regulation D of the Federal Reserve Board, as amended), adjusted by Bank for expected
changes in such reserve percentage during the term of this Note.

“Prime Rate” means at any time the rate of interest most recently announced within Bank at
its principal office as its Prime Rate, with the understanding that the Prime Rate is one of Bank’s
base rates and serves as the basis upon which effective rates of interest are calculated for those
loans making reference thereto, and is evidenced by the recording thereof after its announcement in
such internal publication or publications as Bank may designate.

INTEREST:

Interest. The outstanding principal balance of this Note shall bear interest (computed on
the basis of a 360-day year, actual days elapsed) at a fluctuating rate per annum equal to the Base
Rate in effect from time to time plus 1.25%. Each change in the rate of interest hereunder shall
become effective on the date each Base Rate change is announced within Bank.

Reserved.

Taxes and Regulatory Costs. Borrower shall pay to Bank immediately upon demand, in
addition to any other amounts due or to become due hereunder, any and all (i) withholdings,
interest equalization taxes, stamp taxes or other taxes (except income and franchise taxes) imposed
by any Governmental Authority and related in any manner to LIBOR, and (ii) future, supplemental,
emergency or other changes in the LIBOR Reserve Percentage, assessment rates imposed by the Federal
Deposit Insurance Corporation, or similar requirements or costs imposed by any Governmental
Authority or resulting from compliance by Bank with any request or directive (whether or not having
the force of law) from any central bank or other Governmental Authority and related in any manner
to LIBOR to the extent they are not included in the calculation of LIBOR. In determining which of
the foregoing are attributable to any LIBOR option available to Borrower hereunder, any reasonable
allocation made by Bank among its operations shall be conclusive and binding upon Borrower.

Payment of Interest. Interest accrued on this Note shall be payable on the first day of
each month, commencing November 1, 2010.

Default Interest. From and after the maturity date of this Note, or such earlier date as
all principal owing hereunder becomes due and payable by acceleration or otherwise, the outstanding
principal balance of this Note shall bear interest until paid in full at an increased rate per
annum (computed on the basis of a 360-day year, actual days elapsed) equal to four percent (4%)
above the rate of interest from time to time applicable to this Note.

2

 

BORROWING AND REPAYMENT:

Borrowing and Repayment. Borrower may from time to time during the term of this Note
borrow, partially or wholly repay its outstanding borrowings, and reborrow, subject to all of the
limitations, terms and conditions of this Note and of any document executed in connection with or
governing this Note; provided however, that the total outstanding borrowings under this Note shall
not at any time exceed the principal amount set forth above or such lesser amount as shall at any
time be available hereunder, as set forth in the Credit Agreement. The unpaid principal balance of
this obligation at any time shall be the total amounts advanced hereunder by the holder hereof less
the amount of principal payments made hereon by or for any Borrower, which balance may be endorsed
hereon from time to time by the holder. The outstanding principal balance of this Note shall be
due and payable in full on Line of Credit Termination Date.

Advances. Advances hereunder, to the total amount of the principal sum stated above, may
be made by the holder at the oral or written request of (i) Robert A. Virtue, Robert Dose, Doug
Virtue or Bassey Yau, any one of them acting alone, who are authorized to request Advances and
direct the disposition of any Advances until written notice of the revocation of such authority is
received by the holder at the office designated above, or (ii) any person, with respect to Advances
deposited to the credit of any deposit account of Borrower, which advances, when so deposited,
shall be conclusively presumed to have been made to or for the benefit of Borrower regardless of
the fact that persons other than those authorized to request Advances may have authority to draw
against such account. The holder shall have no obligation to determine whether any person
requesting an Advance is or has been authorized by Borrower.

Application of Payments. Each payment made on this Note shall be credited first, to any
interest then due and second, to the outstanding principal balance hereof.

PREPAYMENT:

Base Rate. Borrower may prepay principal on any portion of this Note which bears interest
determined in relation to the Base Rate at any time, in any amount and without penalty.

Reserved.

The principal Indebtedness evidenced hereby shall be payable as follows and without set off,
counterclaim or reduction of any kind:

the amount, if any, by which the LC Usage Amount at any time exceeds the lesser of the Maximum Line
of Credit Amount or the Borrowing Base, in either case, at such date shall be payable immediately;
and

the principal Indebtedness evidenced hereby shall be payable on the Line of Credit Termination Date

EVENTS OF DEFAULT:

Any default in the payment or performance of any obligation under this Note, or any defined event
of default under the Credit Agreement, shall constitute an “Event of Default” under this Note.

MISCELLANEOUS:

Obligations Joint and Several. Should more than one person or entity sign this Note as a
Borrower, the obligations of each such Borrower shall be joint and several.

Governing Law. This Note shall be governed by and construed in accordance with the laws of
the State of California.

[Signature Page Follows]

3

 

IN WITNESS WHEREOF, the undersigned has executed this Note as of the date first written above.

	 	 	 	 	 
	
VIRCO MFG. CORPORATION

 	 	 
	By:  	
 	 	 
	 
	Title:  	
 	 	 
	 	 	 	 
	 

4

 

EXHIBIT B

FORM OF

COMPLIANCE CERTIFICATE

To: WELLS FARGO BANK, NATIONAL ASSOCIATION

This Compliance Certificate is delivered with reference to the Second Amended and Restated Credit
Agreement dated as of March 12, 2008 (as the same may be amended, supplemented, replaced, renewed
or otherwise modified from time to time, the “Credit Agreement”), between VIRCO MFG.
CORPORATION, a Delaware corporation (the “Borrower”), and WELLS FARGO BANK, NATIONAL
ASSOCIATION (“Bank”). Terms defined in the Credit Agreement and not otherwise defined in
this Compliance Certificate (this “Certificate”) shall have the meanings defined for them
in the Credit Agreement. Section references herein relate to the Credit Agreement unless stated
otherwise.

This Certificate is delivered in accordance with Section 4.3(f) of the Credit Agreement by the
Chief Financial Officer of the Borrower. This Certificate is delivered with respect to the fiscal
quarter ended _________________, _____ (the “Test Date”). Computations indicating
compliance with respect to certain covenants set forth in the Credit Agreement are set forth below:

Section 5.2 — Capital Expenditures. The maximum additional investment in fixed assets in
any fiscal year is $7,000,000. The additional investment in fixed assets of Borrower for the
fiscal year ended __________, 201_ is ____________. The additional consolidated investment in
fixed assets of the Borrower and its Subsidiaries for the fiscal year ended ___________, 201_
[is/is not] greater than or equal to $7,000,000, as set forth in Section 5.2 of the Credit
Agreement.

Section 5.11 — Minimum Net Income. (a) The Credit Agreement requires Minimum Net Income
for the fiscal quarter ended on the Test Date of at least $_________. As of the Test Date, the
Minimum Net Income for such fiscal quarter was $__________, calculated as follows:

	 	 	 	 	 	 	 	 	 

	A.     Net Income for the fiscal quarter:
	 	$	          	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	B.     federal, local and state income taxes for the fiscal quarter:
	 	$	          	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Minimum Net Income (Item A plus Item B):
	 	 	 	 	 	$	          	 
	 
	 	 	 	 	 	 	 

The Minimum Net Income set forth above [is/is not] more than or equal to the amount set forth in Section 5.11 of
the Credit Agreement for the contemplated Test Date.

[(b) The Credit Agreement requires Minimum Net Income for the fiscal year ended on the Test Date of
at least $_________. As of the Test Date, the Minimum Net Income for such fiscal year was
$__________, calculated as follows:

	 	 	 	 	 	 	 	 	 

	A.     Net Income for the fiscal year:
	 	$	          	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	B.     federal, local and state income taxes for the fiscal year:
	 	$	          	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Minimum Net Income (Item A plus Item B):
	 	 	 	 	 	$	          	 
	 
	 	 	 	 	 	 	 

The Minimum Net Income set forth above [is/is not] more than or equal to the amount set forth in Section 5.11
of the Credit Agreement for the contemplated Test Date.] [To be included to the extent the Test Date is
January 31st of a fiscal year]

Section 5.13 — Maximum Consolidated Leverage Ratio. The Consolidated Leverage Ratio
required by the Credit Agreement for the period ended on the Test Date is ___ to 1.00. For the
period contemplated for such Test Date, the Consolidated Leverage Ratio was ___ to 1.00, calculated
as follows:

	 	 	 	 	 	 	 	 	 

	A.     Total Liabilities as of the Test Date:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	(a)      total liabilities of Borrower
and its Subsidiaries on a
consolidated basis, determined in
accordance with GAAP as of such
date:
	 	$	          	 	 	 	 	 
	 
	 	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	(b)      aggregate outstanding
Indebtedness of the Borrower and
its subsidiaries that is
subordinated to the Obligations
under the Credit Agreement as of
such date:
	 	$	          	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	(c)      aggregate amount of
reimbursement or other obligations
of Borrower and its Subsidiaries in
respect of letters of credit
outstanding as of such date:
	 	$	          	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	(d)      aggregate amount of contingent
obligations of the Borrower and its
Subsidiaries as of such date:
	 	$	          	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Total Liabilities (Item (a) minus Item (b) plus
Item (c) plus Item (d)):
	 	 	 	 	 	$	          	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	B.     Tangible Net Worth as of the Test Date:
	 	 	 	 	 	$	          	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	(a)      consolidated stockholders’
equity of the Borrower and its
Subsidiaries determined in
accordance with GAAP as of such
date:
	 	$	          	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	(b)      aggregate outstanding
Indebtedness of the Borrower and
its subsidiaries that is
subordinated to the Obligations
under the Credit Agreement as of
such date:
	 	$	          	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	(c)      aggregate amount of intangible
assets of the Borrower and its
Subsidiaries, determined in
accordance with GAAP as of such
date:
	 	$	          	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	(d)      aggregate amount of receivables
and Indebtedness owed to the
Borrower or any Subsidiary thereof
from an Affiliate of the Borrower
or its Subsidiaries (other than the
Borrower or any Subsidiary thereof)
as of such date:
	 	$	          	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Tangible Net Worth (Item (a) plus Item (b) minus Item (c)
minus Item (d)):
	 	 	 	 	 	$	          	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Consolidated Leverage Ratio (Item A divided by Item B):
	 	 	 	 	 	____ to 1.00

The Consolidated Leverage Ratio set forth above [is/is not] less than or equal to the amount set forth in Section 5.13 of
the Credit Agreement for the contemplated period ended on the Test Date.

The undersigned Chief Financial Officer of the Borrower certifies that the calculations made and
the information contained herein are derived from the books and records of the Borrower and its
Subsidiaries, as applicable, and that each and every matter contained herein correctly reflects
those books and records in all material respects [if there has been a change in generally accepted
accounting principles: and attached hereto as Schedule 1 is a reconciliation of the financial
statements of the Borrower to GAAP].

To the best knowledge of the undersigned no Default or Event of Default has occurred, except for
such conditions or events set forth on Schedule 1 attached hereto, specifying the nature and period
of existence thereof and what action the Borrower has taken, is taking or proposes to take with
respect thereto.

Dated: _______________, _____

	 	 	 	 	 
	
VIRCO MFG. CORPORATION

 	 	 
	By:  	 	 	 
	Name:  	 	 	 
	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]