Document:

exv10w1

Exhibit 10.1

AMENDMENT NO. 8 TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

     AMENDMENT NO. 8 dated as of May 31, 2011 (“Amendment”) among VIRCO MFG. CORPORATION, a
Delaware corporation (the “Borrower”), VIRCO INC., a Delaware corporation (the “Guarantor”), 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:

     Amendment to Section 4.10 of the Credit Agreement. Section 4.10 of the Credit Agreement is
hereby amended and restated in its entirety as follows:

     “Section 4.10 Right to Inspect; Collateral Monitoring.

          Bank (through any of its officers, employees, or agents) shall have the right, from
time to time hereafter during regular business hours, to: (i) inspect, audit and examine
Borrower’s books and records and business locations, and (ii) check, test and appraise the
Collateral in order to verify Borrower’s financial condition and/or the amount, quality,
value, condition of, or any other matter relating to the Collateral. In addition to all
rights granted to Bank hereunder and in the other Loan Documents, Borrower shall fully
cooperate with all reasonable requests for information from Bank’s employees, agents,
representatives, consultants and auditors at all times. Borrower shall reimburse Bank (and
hereby authorizes Bank to add the following costs and fees to Borrower’s obligations
hereunder and under the Loan Documents) all collateral monitoring fees, audit fees,
consulting fees, appraisal fees and attorneys’ fees incurred by Bank.”

     Amendment to Article IV the Credit Agreement. Article IV of the Credit Agreement is hereby
amended by adding the following new Section 4.11:

     “Section 4.11. Bank’s Consultant.

          Bank shall select and engage, in its reasonable discretion, a financial advisor and/or
consultant (the “Consultant”) to advise Bank in connection with Borrower’s
compliance with the Loan Documents and repayment of the Obligations. The scope of the
Consultant’s duties shall be in the sole and absolute discretion of Bank but shall include,
without limitation, a focus on the outlook for Borrower’s industry over the foreseeable
future and the strength and rationale of Borrower’s business plan, products, manufacturing
processes and cost structure in connection with Borrower’s potential future performance
within a changing market. Borrower agrees to fully cooperate with the Consultant, and to
provide the Consultant with full access to Borrower’s books and records, facilities,
officers, employees, accountants and advisors. Borrower consents to Bank’s selection and
engagement of the Consultant, and Borrower shall reimburse Bank on demand for all fees and
expenses of the Consultant. To the extent not previously paid, Borrower agrees that Bank
may debit any operating account of Borrower for any and all fees, costs and expenses of the
Consultant with same day’s notice to Borrower.”

     Amendments to Annex A to the Credit Agreement.

     The following definitions hereby are inserted in Annex A to the Credit Agreement in the proper
alphanumerical order:

1

 

          “Amendment No. 8” means Amendment No. 8 to Second Amended and Restated Credit
Agreement dated as of May 31, 2011 among the Borrower, the Guarantor and the Bank.

          “Consultant” has the meaning set forth in Section 4.11.

          “Eighth Amendment Effective Date” means the first date on which all conditions
set forth in Section 5 of Amendment No. 8 have been satisfied.

     The following definitions appearing in Annex A to the Credit Agreement hereby are amended and
restated as follows:

          “Line of Credit Termination Date” means June 30, 2012.

          “Loan Documents” means this Agreement, the Bank Product Agreements, the
Guaranties, the Security Agreements, the Reaffirmation Agreement, the Mortgages, any note or
notes executed by Borrower in connection with this Agreement and payable to Bank, and any
other agreement entered into, now or in the future, by Borrower, any Guarantor or any of
their respective Affiliates and Bank in connection with this Agreement or any of the
foregoing agreements.

     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 Guarantor 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.

     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, and (v) do not and will not require any waivers, consents or approvals by any of its
creditors which have not been obtained, or 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 maybe brought.

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

     Conditions to Effectiveness. This Amendment shall become effective on the date when the following
conditions precedent have been satisfied:

2

 

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

     The Bank shall have received each of the following documents, each duly executed by the
parties thereto (as applicable) and in full force and effect:

          (1) a duly executed amendment to the Mortgage signed by the record owner of the Real
Property Collateral, together with customary Mortgage Related Documents relating thereto,
substantially in the form of Exhibit A attached hereto and otherwise acceptable to
the Bank in its reasonable discretion, (2) an appraisal of all Real Property Collateral
required hereby, and all improvements thereon, issued by an appraiser acceptable to the Bank
and in form, substance and reflecting values satisfactory to the Bank, in its reasonable
discretion, and (3) either mortgage modification endorsements to, or date down endorsements
to (or re-dated title insurance policies which replace), the existing title insurance policy
issued on the Closing Date, in any case issued by a nationally recognized title insurance
company reasonably acceptable to the Bank, insuring the Lien of the Mortgage, as amended by
such amendment, as a valid first priority Lien on the Real Property Collateral described
therein, free of any other Liens except as permitted by the Loan Documents; and

          An Intellectual Property Security Agreement, substantially in the form of Exhibit
B attached hereto and otherwise acceptable to the Bank in its reasonable discretion,
which shall be recorded in the appropriate federal offices having jurisdiction over
trademarks and patents.

     The Borrower and the Guarantor shall have delivered to the Bank a certificate, signed by the
Secretary or Assistant Secretary of such Person, dated as of the Eighth Amendment Effective Date
certifying as to the incumbency, and containing the specimen signature or signatures, of the Person
or Persons authorized to execute this Amendment and each other Loan Document contemplated hereby,
together with evidence of the incumbency of such Secretary or Assistant Secretary.

     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 5 hereof shall be true and correct on
the effective date of this Amendment.

     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.

     Admissions and Acknowledgments. Both 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;

3

 

     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.

     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 the 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.

     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.

     General Release. In consideration of the benefits provided to the Borrower under the terms
and provisions hereof, the Borrower and the Guarantor each hereby agree as follows (“General
Release”):

     The Borrower and the Guarantor hereunder, for themselves and on behalf of their respective
successors and assigns, each hereby release, acquit and forever discharge the Bank, all of the
Bank’s predecessors in interest, and all of the Bank’s past and present officers, directors,
attorneys, affiliates, employees and agents, of and from any and all claims, demands, obligations,
liabilities, indebtedness, breaches of contract, breaches of duty or of any relationship, acts,
omissions, misfeasance, malfeasance, causes of action, defenses, offsets, debts, sums of money,
accounts, compensation, contracts, controversies, promises, damages, costs, losses and expenses, of
every type, kind, nature, description or character, whether known or unknown, suspected or
unsuspected, liquidated or unliquidated, each as though fully set forth herein at length (each, a
“Released Claim” and collectively, the “Released Claims”), that the Borrower or the Guarantor
hereunder now has or may acquire as of the later of: (i) the date this letter becomes effective
through the satisfaction (or waiver by the Bank) of all conditions hereto; or (ii) the date that
the Borrower and the Guarantor hereunder have executed and delivered this letter to the Bank
(hereafter, the “Release Date”), including without limitation, those Released Claims in any way
arising out of, connected with or related to any and all-prior credit accommodations, if any,
provided by the Bank, or any of the Bank’s predecessors in interest, to the Borrower or the
Guarantor hereunder, and any agreements, notes or
documents of any kind related thereto or the transactions contemplated thereby or hereby, or
any other agreement or document referred to herein or therein.

     The Borrower and the Guarantor each hereby acknowledge, represent and warrant to the Bank as
follows:

4

 

          The Borrower and the Guarantor each understand the meaning and effect of Section 1542
of the California Civil Code which provides:

“Section 1542. GENERAL RELEASE; EXTENT. A GENERAL RELEASE
DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE
RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED
HIS OR HER SETTLEMENT WITH THE DEBTOR.”

          With regard to Section 1542 of the California Civil Code, the Borrower and the
Guarantor each agree to assume the risk of any and all unknown, unanticipated or
misunderstood defenses and Released Claims which are released by the provisions of this
General Release in favor of the Bank, and both the Borrower and the Guarantor each hereby
waive and release all rights and benefits which they might otherwise have under Section 1542
of the California Civil Code with regard to the release of such unknown, unanticipated or
misunderstood defenses and Released Claims.

     Each person signing below on behalf of the Borrower or the Guarantor hereunder acknowledges
that he or she has read each of the provisions of this General Release. Each such person fully
understands that this General Release has important legal consequences, and each ‘such realizes
that they are releasing any and all Released Claims that the Borrower or the Guarantor may have as
of the Release Date. The Borrower and the Guarantor hereunder hereby acknowledge that each of them
has had an opportunity to obtain a lawyer’s advice concerning the legal consequences of each of the
provisions of this General Release.

     The Borrower and the Guarantor hereunder hereby specifically acknowledge and agree that: (i)
none of the provisions of this General Release shall be construed as or constitute an admission of
any liability on the part of the Bank; (ii) the provisions of this General Release shall constitute
an absolute bar to any Released Claim of any kind, whether any such Released Claim is based on
contract, tort, warranty, mistake or any other theory, whether legal, statutory or equitable; and
(iii) any attempt to assert a Released Claim barred by the provisions of this General Release shall
subject the Borrower and the Guarantor hereunder to the provisions of applicable law setting forth
the remedies for the bringing of groundless, frivolous or baseless claims or causes of action.

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

     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.

     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 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.

     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 this reference.

     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 Pillsbury Winthrop Shaw Pittman 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

5

 

modification of the Credit
Agreement or any other Loan Document and the security arrangements in connection herewith or
therewith.

     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 Guarantor 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 Guarantor.

     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.

     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]

6

 

     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:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	VIRCO INC.,

as the Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as the Bank

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

7

 

EXHIBIT A

THIS INSTRUMENT PREPARED BY:

Pillsbury Winthrop Shaw Pittman LLP

725 South Figueroa Street, 28th Floor

Los Angeles, CA 90017

Attn: Bradley E. Wolf

AND WHEN RECORDED MAIL TO:

Wells Fargo Bank, National Association

333 S. Grand Avenue, Suite 940

Los Angeles, CA 90071

Attn: Razia Damji

Loan No. 8079119402

 

MEMORANDUM OF MODIFICATION AGREEMENT

(SHORT FORM)

THIS MEMORANDUM OF MODIFICATION AGREEMENT (SHORT FORM) (“Agreement”) is made and entered into as of
May 31, 2011, by and between Wells Fargo Bank, National Association (“Lender”), and VlRCO MFG.
CORPORATION, a Delaware corporation (“Borrower”).

R E C I T A L S :

	A.	 	Pursuant to the terms of that certain Second Amended and Restated Credit Agreement dated as
of March 12, 2008 (as amended, restated, supplemented or otherwise modified, the “Credit
Agreement”), Lender made a loan to Borrower in the principal amount of up to Forty-Five
Million and No/100 Dollars ($45,000,000) (the “Loan”). The Loan is evidenced by that certain
Amended and Restated Revolving Line of Credit Note dated as of October 29, 2010, executed by
Borrower in favor of Lender, in the principal amount of the Loan (as amended, restated,
supplemented or otherwise modified, the “Note”), which Note amends and restates in its
entirety the Revolving Line of Credit Notes dated as July 30, 2010, January 29, 2010, March
27, 2009 and July 31, 2008 executed by Borrower in favor of Lender, and is further evidenced
by the documents described in the Credit Agreement as “Loan Documents”. The Note is secured
by, among other things, that certain Mortgage with Absolute Assignment of Leases and Rents,
Security Agreement and Fixture Filing dated January 26, 2004 (as amended, restated,
supplemented or otherwise modified, the “Original Mortgage”) to and for the benefit of Lender,
which was recorded and filed in the Official Records of the County of Faulkner, Arkansas (the
“Official Records”) on January 28, 2004, as Document No 2004-1700 and re-recorded and filed
February 27, 2004. as Document No. 2004-3958, and modified by that certain Modification
Agreement (Secured Loan) executed by Borrower on January 27, 2005, which was recorded and
filed in the Official Records on February 3, 2005, as Document No. 2005-2338, and by that
certain Modification Agreement (Secured Loan) executed by Borrower on December 8, 2005, which
was recorded and filed in the Official Records on December 15, 2005, as Document No.
2005-27794, and by that certain Modification Agreement (Secured Loan) executed by Borrower on
March 26, 2007, which was recorded and filed in the Official Records on April 10, 2007, as
Document No. 2007-7273.
	 
	B.	 	The Original Mortgage was amended and restated by that certain Amended and Restated Mortgage
with Absolute Assignment of Leases and Rents, Security Agreement and Fixture Filing dated
March 12, 2008 (as amended, restated, supplemented or otherwise modified, the “Amended and
Restated Mortgage”), and recorded and filed in the Official Records on March 18, 2008 as
Document No. 2008-4858, and re-recorded and filed October 16, 2008, as Document No.
2008-20134; as modified by that certain Partial Release Deed
dated September 29, 2008 and recorded and filed in the Official Records on October 6,2008 as
Document No. 2008-19527.

 

 

	C.	 	The Amended and Restated Mortgage was amended and restated by that certain Second Amended and
Restated Mortgage with Absolute Assignment of Leases and Rents, Security Agreement and Fixture
Filing dated as of March 26, 2009 (as amended, restated, supplemented or otherwise modified,
the “Second Amended and Restated Mortgage”), and recorded and filed in the Official Records on
April 9, 2009 as Document No. 2009-6306.
	 
	D.	 	On July 31,2008, Borrower and Lender entered into that certain Amendment No. 1 to Second
Amended and Restated Credit Agreement (the “First Modification Agreement”), which modified and
amended certain provisions of the Loan Documents.
	 
	E.	 	On March 27, 2009, Borrower and Lender entered into that certain Amendment No. 2 to Second
Amended and Restated Credit Agreement (the “Second Modification Agreement”), which modified
and amended certain provisions of the Loan Documents.
	 
	F.	 	On January 29, 2010, Borrower and Lender have entered into that certain Amendment No. 3 to
Second Amended and Restated Credit Agreement of even date herewith (the “Third Modification
Agreement”), pursuant to which Borrower and Lender agreed to modify certain terms and
provisions of the Loan Documents.
	 
	G.	 	On April 28, 2010, Borrower and Lender have entered into that certain Amendment No. 4 to
Second Amended and Restated Credit Agreement of even date herewith (the “Fourth Modification
Agreement”), pursuant to which Borrower and Lender agreed to modify certain terms and
provisions of the Loan Documents.
	 
	H.	 	On July 30, 2010, Borrower and Lender have entered into that certain Amendment No. 5 to
Second Amended and Restated Credit Agreement of even date herewith (the “Fifth Modification
Agreement”), pursuant to which Borrower and Lender agreed to modify certain terms and
provisions of the Loan Documents.
	 
	I.	 	October 29, 2010, Borrower and Lender have entered into that certain Amendment No. 6 to
Second Amended and Restated Credit Agreement of even date herewith (the “Sixth Modification
Agreement”), pursuant to which Borrower and Lender agreed to modify certain terms and
provisions of the Loan Documents.
	 
	J.	 	On January 31, 2011, Borrower and Lender have entered into that certain Amendment No. 7 to
Second Amended and Restated Credit Agreement of even date herewith (the “Seventh Modification
Agreement”), pursuant to which Borrower and Lender agreed to modify certain terms and
provisions of the Loan Documents.
	 
	K.	 	On May 31, 2011, Borrower and Lender have entered into that certain Amendment No. 8 to Second
Amended and Restated Credit Agreement of even date herewith (the “Eighth Modification
Agreement”), pursuant to which Borrower and Lender agreed to modify certain terms and
provisions of the Loan Documents.
	 
	L.	 	Unless otherwise defined, capitalized terms used herein shall have the meanings attributed to
such terms in the Loan Documents.

NOW, THEREFORE, the parties hereto agree as follows:

     Memorandum of Eighth Modification Agreement. This instrument is a memorandum of the Eighth
Modification Agreement, and the same is by this reference incorporated herein and made a part
hereof as if set forth herein in its entirety.

 

 

     Eighth Modification Agreement. Borrower and Lender entered into the Eighth Modification
Agreement pursuant to which, among other things, the Line of Credit Termination Date was extended
to June 30, 2012.

     Counterparts. This Agreement may be executed in two or more counterparts, each of which shall
be deemed to be an original, but all of which, taken together, shall constitute one and the same
instrument.

[Signatures follow on next page]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
above written.

	 	 	 	 	 
	 	“LENDER”

WELLS FARGO BANK,

NATIONAL ASSOCIATION

 	 
	 	By:  	 	 
	 	 	Razia Damji 	 
	 	 	Its:      Vice President 	 
	 
	 	“BORROWER”

VIRCO MFG. CORPORATION,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Robert E. Dose 	 
	 	 	Its: Vice President — Finance, Secretary and
Treasurer 	 
	 

(ALL SIGNATURES MUST BE ACKNOWLEDGED)

SIGNATURE PAGE TO MEMORANDUM OF MODIFICATION

 

 

STATE OF
CALIFORNIA                             )

COUNTY OF   _______________________ )

On ____________________ before me, ____________________, a Notary Public, personally appeared
____________________, who proved to me on the basis of satisfactory evidence to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s)
on the instrument the person(s), or the entity upon behalf of which the acted, executed the
instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

	 	 	 	 	 

	 	WITNESS my hand and official seal.
 	 
	 
	 	Signature 	 	 
	 
	 	(Seal) 	 	 
	 

STATE OF
CALIFORNIA                             )

COUNTY OF   _______________________ )

On ____________________ before me, ____________________, a Notary Public, personally appeared
____________________, who proved to me on the basis of satisfactory evidence to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s)
on the instrument the person(s), or the entity upon behalf of which the acted, executed the
instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

Signature______________________________________

(Seal)

NOTARY PAGE TO MEMORANDUM OF MODIFICATION

 

 

EXHIBIT B 

INTELLECTUAL PROPERTY SECURITY AGREEMENT

     This INTELLECTUAL PROPERTY SECURITY AGREEMENT, dated as of May 31, 2011 (as amended, restated,
supplemented, replaced or otherwise modified from time to time, the “Intellectual Property Security
Agreement”), is made by VIRCO MFG. CORPORATION, a Delaware corporation (the “Grantor”) in favor of
WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Bank”).

WITNESSETH:

     WHEREAS, the Grantor is or will be a party to that certain Amendment No. 8 to Second Amended
and Restated Credit Agreement dated as of May 31, 2011 (as it may be amended, restated,
supplemented or otherwise modified from time to time, the “Amendment”), by and among Bank, the
Grantor and Virco Inc., a Delaware corporation, as Guarantor, amending the Second Amended and
Restated Credit Agreement dated as of March 12, 2008, which has subsequently been amended pursuant
to various amendments (as it may be further amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”) between the Grantor and the Bank (capitalized terms used
and not defined herein have the meanings given such terms in the Credit Agreement, as amended by
the Amendment).

     WHEREAS, the Grantor is party to that certain Amended and Restated Security Agreement dated as
of January 27, 2004 (as it may be amended, restated, supplemented or otherwise modified from time
to time, the “Security Agreement”), by and among Bank, the Grantor and each of the Grantor’s
Subsidiaries signatory thereto, as Subsidiary Guarantors (as such term is defined in the Security
Agreement).

     WHEREAS, under the terms of the Security Agreement, the Grantor and its Subsidiary Guarantors
have previously granted a security interest in certain personal property, including, without
limitation, certain intellectual property of the Grantors and the Subsidiary Guarantors to the Bank
pursuant to an Intellectual Property Security Agreement dated as of January 27, 2004 (the “Existing
IP Security Agreement”).

     WHEREAS, under the terms of the Master Reaffirmation Agreement dated as of March 12, 2008 (as
it may be amended, restated, supplemented or otherwise modified from time to time, the
“Reaffirmation Agreement”) by and among the Grantor, the Guarantors in effect at such time and the
Bank, the Grantor ratified and reaffirmed it obligations and pledge of collateral under the
Security Agreement, including, without limitation, the Existing IP Security Agreement.

     WHEREAS, the Grantor has filed new patent and trademark applications and/or has been granted
new patents and trademark registrations since executing the Security Agreement and the Existing IP
Security Agreement.

     WHEREAS, pursuant to Section 6(b)(ii) of the Amendment, the Grantor has agreed as a condition
thereof to execute this Intellectual Property Security Agreement for filing with the United States
Patent and Trademark Office in order to properly record the Bank’s security interest in the new
patents, trademark registrations and/or applications therefor referenced above and attached hereto
as Schedule 1 and Schedule 2.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Grantor agrees as follows:

     Section 1. Grant of Security. The Grantor hereby grants to the Bank a security interest in
and to all of the Grantor’s right, title, and interest in and to the following as collateral
security for the prompt and complete payment and performance when due (whether at the stated
maturity, by acceleration or otherwise) of the Grantor’s Obligations (as such term “Obligations” is
defined in the Credit Agreement) now or hereafter existing under or in respect of the Loan
Documents, whether direct or indirect, absolute or contingent, and whether for principal,
reimbursement obligations, interest, premiums, penalties, fees, indemnifications, contract causes
of action, costs, expenses or otherwise:

 

 

          1.1. Trademarks

               1.1.1 The Grantor’s United States and foreign trademarks, trade names, trade styles, trade
dress, corporate names, company names, business names, fictitious business names, Internet domain
names, service marks, certification marks, collective marks, logos, and other source or business
identifiers, all registrations and applications to register any of the foregoing including, but not
limited to: (i) the U.S. trademark registrations and applications referred to in Schedule 1
hereto (as such schedule may be amended or supplemented from time to time), (ii) all rights to, and
to obtain, any extensions or renewals of any of the foregoing, (iii) all of the goodwill of the
business connected with the use of and symbolized by any of the foregoing, (iv) the right to sue or
otherwise recover for any and all past, present and future infringements, dilutions, and other
violations of any of the foregoing or for any injury to goodwill, (v) all proceeds of the
foregoing, including, without limitation, licenses, royalties, income, payments, claims, damages,
and proceeds of suit, and (vi) all other rights of any kind whatsoever corresponding thereto
throughout the world (collectively, the “Trademarks”); and

               1.1.2 All licenses or agreements, whether written or oral, providing for the grant by or to
the Grantor of (i) any right to use any Trademark, (ii) the right to sue or otherwise recover for
any and all past, present and future infringements and misappropriations of any of the foregoing,
(iii) all income, royalties, damages and other payments now and hereafter due and/or payable with
respect thereto (including, without limitation, payments under all licenses entered into in
connection therewith, and damages and payments for past, present or future infringements thereof),
(iv) all other rights of any kind whatsoever of the Grantor accruing thereunder or pertaining
thereto, and (v) any and all proceeds of the foregoing.

          1.2. Patents

               1.2.1 The Grantor’s United States, foreign, and multinational patents, certificates of
invention, and patentable inventions (regardless of whether reduced to practice) or similar
industrial property rights, and applications for any of the foregoing, including, but not limited
to: (i) each patent and patent application referred to in Schedule 2 hereto (as such
schedule may be amended or supplemented from time to time), (ii) all reissues, divisions,
continuations, continuations-in-part, extensions, renewals, and reexaminations thereof, (iii) all
inventions and improvements described therein, (iv) all rights to sue or otherwise recover for any
past, present, and future infringements or other violations thereof, (v) all proceeds of the
foregoing, including, without limitation, licenses, royalties, income, payments, claims, damages,
and proceeds of suit, and (vi) all other rights of any kind whatsoever corresponding thereto
throughout the world (collectively, the “Patents”); and

               1.2.2 All licenses or agreements, whether written or oral, providing for the grant by or to
the Grantor of (i) any right to use any Patent, (ii) the right to sue or otherwise recover for any
and all past, present and future infringements and misappropriations of any of the foregoing, (iii)
all income, royalties, damages and other payments now and hereafter due and/or payable with respect
thereto (including, without limitation, payments under all licenses entered into in connection
therewith, and damages and payments for past, present or future infringements thereof), (iv) all
other rights of any kind whatsoever of the Grantor accruing thereunder or pertaining thereto, and
(v) any and all proceeds of the foregoing.

     Section 2. Recordation. The Grantor authorizes and requests that the Commissioner of Patents
and Trademarks and any other applicable government officer record this Intellectual Property
Security Agreement.

     Section 3. Execution in Counterparts. This Intellectual Property Security Agreement may be
executed in any number of counterparts (including by telecopy), each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and the same
agreement.

     Section 4. Governing Law. This Intellectual Property Security Agreement and the rights and
obligations of the parties hereunder shall be governed by, and shall be construed and enforced in
accordance with, the laws of the State of California without regard to conflict of laws principles
thereof.

 

 

     Section 5. Conflict Provision. This Intellectual Property Security Agreement has been entered
into in conjunction with the provisions of the Security Agreement, the Credit Agreement and the
Amendment referenced herein. The rights and remedies of each party hereto with respect to the
security interest granted herein are without prejudice to, and are in addition to those set forth
in, the Security Agreement, the Credit Agreement and the Amendment, all terms and provisions of
which are incorporated herein by reference. In the event that any provisions of this Intellectual
Property Security Agreement are in conflict with the Security Agreement, the Credit Agreement or
the Amendment, the provisions of the Security Agreement, the Credit Agreement or the Amendment
shall govern.

[remainder of page intentionally left blank]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Intellectual Property Security
Agreement to be executed as of the date first above written by their respective officers thereunto
duly authorized.

	 	 	 	 	 
	 	VIRCO MFG. CORPORATION,

as Grantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Bank

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

SCHEDULE 1

TO INTELLECTUAL PROPERTY SECURITY AGREEMENT

TRADEMARKS

	 	 	 	 	 	 	 
	 	 	Serial No.	 	Filing Date
	U.S. Trademark	 	Registration No.	 	Issue Date
	
PENDING TRADEMARKS
	 
	 	 	 	 	 	 
	ANALOGY

	 	 	77/265,430	 	 	08/27/2007
	GEM

	 	 	77/267,629	 	 	08/29/2007
	PLANSCAPE

	 	 	85/163,638	 	 	10/28/2010
	RECESS

	 	 	77/267,643	 	 	08/29/2007
	
REGISTERED TRADEMARKS
	 
	 	 	 	 	 	 
	DESIGN ONLY

	 	 	3,010,383	 	 	11/01/2005
	METAPHOR

	 	 	3,528,679	 	 	11/04/2008
	PARAMETER

	 	 	3,887,535	 	 	12/07/2010
	TELOS

	 	 	3,509,728	 	 	09/30/2008
	TEXT

	 	 	3,633,057	 	 	06/02/2009
	V VIRCO

	 	 	3,380,310	 	 	02/12/2008
	VIRCO

	 	 	3,380,311	 	 	02/12/2008
	ZUMA

	 	 	3,115,038	 	 	07/11/2006

 

 

SCHEDULE 2

TO INTELLECTUAL PROPERTY SECURITY AGREEMENT

PATENTS

	 	 	 	 	 	 	 
	Title	 	Application/Patent Number	 	Filing/Issue Date
	Heat-Transfer Mechanism Including a Liquid-Metal
Thermal Coupling

	 	 	20090316359	 	 	06/18/2008
	Self-Leveling Furniture Leg Foot

	 	 	7,380,879	 	 	06/03/2008
	Book Rack and Pencil Tray Combination

	 	 	7,281,476	 	 	10/16/2007
	Student Desk Chair with Rockers Rails

	 	 	7,147,284	 	 	12/12/2006
	Stackable Chair-Desk Frame

	 	 	7,059,670	 	 	06/13/2006
	Molded and Laminated Curved Surface Composites

	 	 	6,706,382	 	 	03/16/2004
	Office Furniture System

	 	 	6,592,194	 	 	07/15/2003
	Molded and Laminated Curved Surface Composites

	 	 	6,534,165	 	 	03/18/2003
	Enlarged Iron Cover with Rough Textured Inner Surface

	 	 	5,944,081	 	 	08/31/1999
	Two-Part Table Top

	 	 	5,845,587	 	 	12/08/1998
	Follower for File Drawer

	 	 	5,826,956	 	 	10/27/1998
	Lateral File Anti-Tilt Mechanism with Pivotal
Activator Rail

	 	 	5,411,327	 	 	05/02/1995
	Desk with Floating Top

	 	 	D621,176	 	 	08/10/2010
	Desk with Floating Top

	 	 	D621,175	 	 	08/10/2010
	Desk Top Spacer

	 	 	D617,123	 	 	06/08/2010
	Drawer Pull

	 	 	D616,721	 	 	06/01/2010
	Grommet

	 	 	D606,844	 	 	12/29/2009
	Task Chair

	 	 	D564,768	 	 	03/25/2008
	Desk

	 	 	D563,697	 	 	03/11/2008
	Table

	 	 	D560,085	 	 	01/22/2008
	Table

	 	 	D560,084	 	 	01/22/2008
	Desk

	 	 	D559,592	 	 	01/15/2008
	Chair Bucket

	 	 	D549,018	 	 	08/21/2007
	Chair Bucket

	 	 	D547,980	 	 	08/07/2007
	Chair Frame

	 	 	D547,979	 	 	08/07/2007
	Desk

	 	 	D546,097	 	 	07/10/2007
	Chair

	 	 	D544,230	 	 	06/12/2007
	Chair/Desk

	 	 	D542,039	 	 	05/08/2007
	Rocking Chair

	 	 	D526,134	 	 	08/08/2006
	Chair Desk Combination Frame

	 	 	D523,265	 	 	06/20/2006
	Chair Desk Combination Frame

	 	 	D522,777	 	 	06/13/2006
	Chair

	 	 	D522,265	 	 	06/06/2006

 

 

	 	 	 	 	 
	Title	 	Application/Patent Number	 	Filing/Issue Date
	Chair

	 	D521,757
	 	05/30/2006
	Chair Desk Combination

	 	D521,751
	 	05/30/2006
	Chair Desk Combination

	 	D521,750
	 	05/30/2006
	Chair Seat

	 	D521,283
	 	05/23/2006
	Chair Desk Combination Frame

	 	D521,282
	 	05/23/2006
	Chair Back

	 	D520,782
	 	05/16/2006
	Chair

	 	D520,768
	 	05/16/2006
	Hanger

	 	D518,706
	 	04/11/2006
	Chair/Desk

	 	D514,829
	 	02/14/2006
	Task Chair

	 	D514,339
	 	02/07/2006
	Chair Seating Assembly

	 	D513,911
	 	01/31/2006
	Chair/Desk

	 	D513,892
	 	01/31/2006
	Rocking Chair Carriage Assembly

	 	D512,252
	 	12/06/2005
	Desk

	 	D510,670
	 	10/18/2005
	Hanger

	 	D510,258
	 	10/04/2005
	Stool

	 	D507,893
	 	08/02/2005
	Chair and Desk Combination

	 	D507,890
	 	08/02/2005
	Desk

	 	D507,710
	 	07/26/2005
	Pencil Tray

	 	D506,225
	 	06/14/2005
	Book Tray

	 	D505,581
	 	05/31/2005
	Chair and Desk Combination

	 	D505,002
	 	05/17/2005
	Task Chair

	 	D504,026
	 	04/19/2005
	Chair

	 	D503,559
	 	04/05/2005
	Chair

	 	D499,260
	 	12/07/2004
	Stool

	 	D488,630
	 	04/20/2004
	Desk with Two-Part Table Top

	 	D408,651
	 	04/27/1999exv10w2

Exhibit 10.2

May 24, 2011

HAND DELIVERED

MR. LARRY O. WONDER

Re: SEPARATION AGREEMENT AND GENERAL RELEASE OF ALL CLAIMS

Dear Larry:

     This letter will serve as the Separation Agreement and General Release of all Claims (the
“Agreement”) between you and Virco. As used in this Agreement, the term “Virco” or “Company” shall
include Virco Mfg. Corporation, its divisions, subsidiaries, affiliates, and past, present or
future officers, directors, shareholders, employees, agents and representatives.

     You have been employed by Virco for over 30 years and presently serve as its Vice President of
Sales. We have agreed that it is in the mutual interest of you and the Company for Virco to accept
your voluntary resignation of employment. By signing this Agreement and in consideration of certain
compensation and benefits offered by Virco, you are agreeing to the commitments set forth below.
This Agreement will fully and finally conclude the employment relationship between you and Virco on
the terms and conditions that follow:

     1. Resignation. You have submitted and Virco has accepted your voluntary resignation
as both an employee and an officer of the Company, effective June 30, 2011. You understand and
agree that, in return for a portion of the consideration described below, you forever waive any
claim you may have for re-employment.

     2. Severance Payment. In consideration of your acceptance of this Agreement, you will
receive a lump sum severance payment of One Hundred Sixty-Six Thousand, Nine Hundred Thirty-Five
Dollars and 75 Cents ($166,935.75), less applicable payroll taxes and deductions, which is the
equivalent of twenty-five (25) months of monthly benefits from the Virco Important Performers
(“VIP”) Pension Plan, to bridge the gap between your resignation on June 30, 2011 and your full
retirement date of July 31, 2013.

     3. Health Care Coverage. As you are currently enrolled in Virco’s medical, dental and
vision insurance plans, you are eligible to continue such coverage in accordance with COBRA upon
your separation of employment. In consideration of your acceptance of this Agreement, you will
receive a lump sum payment in the amount of Two Thousand Dollars ($2000.00), net of
applicable payroll taxes and deductions, that you may use toward medical, dental and/or vision
insurance premiums through COBRA or another source, or for any other purpose of your choosing.
Virco represents that this amount is sufficient to cover the cost of medical, dental and vision
insurance premiums for an individual subscriber through COBRA for four (4) months at Virco’s
present rates. You understand and agree that, should COBRA insurance premiums increase at any time
after the Effective Date of this Agreement, you will not be entitled to additional funds or other
consideration from Virco as a result.

     4. Company Car. In consideration of your acceptance of this Agreement, you will
receive a lump sum payment, net of applicable payroll taxes and deductions, in an amount
sufficient to purchase your Company car for its fair market value as determined by Virco’s fleet
provider. Virco represents that such payment will be adequate to cover estimated sales taxes and
transfer fees in connection with the vehicle purchase.

     5. Executive Outplacement Services. In consideration of your acceptance of this
Agreement, Virco will pay you a lump sum of Five Thousand Dollars ($5,000.00), net of
applicable payroll taxes and deductions, in lieu of providing outplacement services. You understand
and agree that you will be solely responsible for the selection, acquisition and payment of any
such services.

     6. Vested Benefits. You will receive payment of any unused accrued vacation, less
applicable payroll taxes and deductions. Any vested benefits you may have under Virco’s 401(k)
plan, the Virco Important Performers (“VIP”) pension plan, the Virco Mfg. Corporation Employees
Retirement Plan, or other such Company benefit plans or agreements will be payable in accordance
with the applicable terms and conditions of such plans or agreements.

     7. Bonus. You understand and agree that you are not entitled to receive any bonus or
prorated bonus that may be distributed to Virco employees pursuant to any policy, practice or plan
of the Company on or after the separation of your employment.

     8. Release of all Claims. You represent that you do not currently have pending before
any Court or government agency any dispute of any kind against Virco. In consideration of the
various payments and benefits provided to you under the terms of this Agreement,
you hereby release and forever discharge Virco from any and all claims, causes of action, demands,
rights, damages, liability, costs or expenses, of every kind and description, whether known or
unknown, arising at any time prior to your signing of this Agreement, including but not limited to
those arising out of or in any way connected, directly or indirectly, with your employment and/or
separation from employment with Virco. This release is intended as a general release, including all
claims whatsoever, whether arising under local, state or federal laws of the United States of
America or any other country and whether founded upon contract, tort, statute or regulation,
wrongful discharge or discrimination, and specifically including, but not limited to, claims under
the federal Age Discrimination in Employment Act; Title VII of the Civil Rights Act of 1964; the
federal Americans With Disabilities Act; the federal Family and Medical Leave Act; and the Employee
Retirement Income Security Act of 1974. This waiver of rights and release of claims is knowing and
voluntary. The invalidity in whole or in part of any provision of this release shall not affect the
validity of any other provision.

The remainder of this page has been left blank intentionally.

 

 

     9. Waiver of California Civil Code Section 1542. The disputes released by you herein
include any and all disputes, whether known or unknown, suspected or unsuspected, past or present,
and whether or not they are attributable to circumstances arising out of or related to your
employment with Virco or the separation of your employment. Specifically, you waive any and all
rights under California Civil Code Section 1542, which reads in full as follows:

Section 1542. General Release. A general release does not extend to claims which the
creditor does not know or suspect to exist in his favor at the time of executing the release,
which if known by him must have materially altered his settlement with the debtor.

     You acknowledge that you have separately bargained with Virco for the foregoing waiver of
Section 1542.

     10. No Admission of Liability. You and Virco acknowledge and agree that nothing
contained in this Agreement shall constitute or be construed as an admission of any alleged
liability or wrongdoing by the other.

     11. Non-Solicitation. You agree that, for a period of two (2) years after the date of
this Agreement, you will not induce or attempt to induce any employee of Virco to leave the employ
of Virco or in any way interfere with the relationship between Virco and its employees.

     12. References. If asked about your separation of employment, you and Virco will
state that you voluntarily resigned. Should a prospective employer wish to verify your employment
with Virco, you agree to direct such inquiries to Virco’s Corporate Director of Human Resources
(presently Ms. Margie McEntire) and to no other person. In response to such inquiries, Virco will
confirm your voluntary resignation, dates of employment, positions held, and your final salary. If
asked for further information, Virco will state that Company policy precludes the release of
additional data.

     13. Confidential Information. You acknowledge that in the course of your employment
with Virco you have had access to confidential or proprietary information related to Virco’s
business. You further acknowledge that you have been and will continue to be under an obligation
not to disclose such confidential or proprietary information to any third party unless (a)
disclosure is required by law; (b) such information shall have become generally known outside Virco
through no action of your own; or (c) you obtain written permission from Virco’s President or
Executive Vice President.

     “Confidential or proprietary information” includes, but is not limited to, financial
statements, marketing plans, product research and development, sales plans, ideas or other
information regarding Virco’s objectives and strategies and any information about the business and
practices of Virco that was obtained during your course of employment with the Company. You agree
that any documents in your possession including such information shall be expeditiously returned to
Virco. You agree that any breach or threatened breach of this provision would cause irreparable
harm to Virco, that no adequate remedy exists at law or in damages for such a breach or threatened
breach, and that Virco shall be entitled to an immediate injunction or restraining order in
addition to any other remedies that may be available by law or equity.

     14. Disposition of Company Property. Any Company-owned property in your possession,
including any office equipment or other items, shall be delivered promptly to a designated Company
representative. You agree to immediately discontinue the use of any credit cards issued to you by
or through Virco and to return any such credit cards to an authorized Virco representative. In
addition, you agree to promptly submit any expense reports required to account for outstanding
charges and to cooperate in the process of reconciling any such charges with your expense reports.

     15. Governing Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of California, without regard to its conflict
of laws provisions.

     16. Jurisdiction. You agree that any dispute arising under this Agreement shall be
filed, heard and decided in Los Angeles County. You also agree to subject yourself to the personal
jurisdiction and venue of the identified courts regardless of where you may be located at the time
of the proceeding.

     17. Review and Consultation. You are advised to consult an attorney before executing
this Agreement. Upon execution you acknowledge that you have had sufficient opportunity to review
the Agreement and to consult with advisors and attorneys of your choice concerning its terms and
conditions. Execution of this Agreement further acknowledges your full and complete understanding
of the terms and their significance, and that those terms have been accepted freely and
voluntarily, thereby binding you and your heirs, successors, personal representatives and assigns.

     18. Period for Consideration or Revocation. Virco will provide you with a period of
twenty-one (21) days from the date this Agreement is first presented to you in which to consider
it. In the event that you execute this Agreement prior to the expiration of the twenty-one (21)
day period, you agree that you have freely elected to waive any remaining part of the consideration
period. For a period of seven (7) days following the execution of this Agreement, you may revoke
it by notifying Virco’s President or Executive Vice President in writing.

     19. Effective Date. If not revoked in the manner described in Paragraph 18, above,
this Agreement will become effective on the eighth calendar day following its execution (the
“Effective Date” of this Agreement).

The remainder of this page has been left blank intentionally.

 

 

     20. Entire Agreement. This Agreement contains the entire understanding of the parties
and there are no additional promises, representations, assurances, terms or provisions between the
parties other than those specifically set forth herein. This Agreement may not be amended except in
writing signed by you and either Virco’s President or Executive Vice President.

     If you agree with the foregoing, please execute both of the enclosed original copies of this
letter and return one to Virco’s President or Executive Vice President.

	 	 	 	 	 
	 	Very truly yours,

VIRCO MFG. CORPORATION

 	 
	 	/s/ Douglas A. Virtue
 	 
	 	Douglas A. Virtue 	 
	 	Executive Vice President 	 
	 
	 	READ, UNDERSTOOD AND ACCEPTED

 	 
	 	/s/ Larry O. Wonder
 	 
	 	LARRY O. WONDER 	 
	 	 	 

Date: May 24, 2011

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