Document:

Exhibit 10.1
    

    
      

      

      

      

      

      

      

      

      

      

    

    

    

    

    
      STRAYER EDUCATION, INC.
    

    
      2015 EQUITY COMPENSATION PLAN
    

    

    

    

    

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
      TABLE OF CONTENTS
    

    

    

    	

        	

        	
          Page
        
	
          1.
        	
          PURPOSE
        	
          A-1
        
	
          2.
        	
          DEFINITIONS
        	
          A-1
        
	
          3.
        	
          ADMINISTRATION OF THE PLAN
        	
          A-5
        
	

        	
          3.1.
        	
          Committee.
        	
          A-5
        
	

        	

        	
          3.1.1.
        	
          Powers and Authorities.
        	
          
            A-5
          

        
	

        	

        	
          3.1.2.
        	
          Composition of the Committee.
        	
          
            A-6
          

        
	

        	

        	
          3.1.3.
        	
          Other Committees.
        	
          
            A-6
          

        
	

        	

        	
          3.1.4.
        	
          Delegation by Committee.
        	
          
            A-6
          

        
	

        	
          3.2.
        	
          Board.
        	
          A-6
        
	

        	
          3.3.
        	
          Terms of Awards.
        	
          A-6
        
	

        	
          3.4.
        	
          Forfeiture; Recoupment.
        	
          A-7
        
	

        	
          3.5.
        	
          No Repricing.
        	
          A-7
        
	

        	
          3.6.
        	
          Deferral Arrangement.
        	
          A-8
        
	

        	
          3.7.
        	
          No Liability.
        	
          A-8
        
	

        	
          3.8.
        	
          Stock Issuance/Book-Entry.
        	
          A-8
        
	
          4.
        	
          STOCK SUBJECT TO THE PLAN
        	
          A-8
        
	

        	
          4.1.
        	
          Number of Shares of Stock Reserved for Awards.
        	
          A-8
        
	

        	
          4.2.
        	
          Adjustments in Authorized Shares of Stock.
        	
          A-8
        
	

        	
          4.3.
        	
          Share Usage.
        	
          A-9
        
	
          5.
        	
          TERM; AMENDMENT, SUSPENSION, AND TERMINATION
        	
          A-9
        
	

        	
          5.1.
        	
          Term.
        	
          A-9
        
	

        	
          5.2.
        	
          Amendment, Suspension, and Termination of the Plan.
        	
          A-9
        
	
          6.
        	
          AWARD ELIGIBILITY AND LIMITATIONS
        	
          A-9
        
	

        	
          6.1.
        	
          Service Providers and Other Persons.
        	
          A-9
        
	

        	
          6.2.
        	
          Limitation on Shares of Stock Subject to Awards and Cash Awards.
        	
          A-10
        
	

        	
          6.3.
        	
          Stand-Alone, Additional, Tandem and Substitute Awards.
        	
          A-10
        
	
          7.
        	
          AWARD AGREEMENT
        	
          A-10
        
	
          8.
        	
          TERMS AND CONDITIONS OF OPTIONS
        	
          A-10
        
	

        	
          8.1.
        	
          Option Price.
        	
          A-10
        
	

        	
          8.2.
        	
          Vesting and Exercisability.
        	
          A-11
        
	

        	
          8.3.
        	
          Term.
        	
          A-11
        
	

        	
          8.4.
        	
          Termination of Service.
        	
          A-11
        
	

        	
          8.5.
        	
          Limitations on Exercise of Option.
        	
          A-11
        
	

        	
          8.6.
        	
          Method of Exercise.
        	
          A-11
        
	

        	
          8.7.
        	
          Rights of Holders of Options.
        	
          A-12
        
	

        	
          8.8.
        	
          Delivery of Stock.
        	
          A-12
        
	

        	
          8.9.
        	
          Transferability of Options.
        	
          A-12
        
	

        	
          8.10.
        	
          Family Transfers.
        	
          A-12
        
	

        	
          8.11.
        	
          Limitations on Incentive Stock Options.
        	
          A-12
        
	

        	
          8.12.
        	
          Notice of Disqualifying Disposition.
        	
          A-12
        
	
          9.
        	
          TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS
        	
          A-13
        
	

        	
          9.1.
        	
          Right to Payment and Grant Price.
        	
          A-13
        
	

        	
          9.2.
        	
          Other Terms.
        	
          A-13
        

    

    
      
        

        

      

      
        
          A-i
        

        
          

        

      

      
        

        

      

    

    

    

    	

        	
          9.3.
        	
          Term.
        	
          A-13
        
	

        	
          9.4.
        	
          Rights of Holders of SARs.
        	
          A-13
        
	

        	
          9.5.
        	
          Transferability of SARs.
        	
          A-13
        
	

        	
          9.6.
        	
          Family Transfers.
        	
          A-13
        
	
          10.
        	
          TERMS AND CONDITIONS OF RESTRICTED STOCK, STOCK UNITS, AND DEFERRED
          STOCK UNITS
        	
          A-14
        
	

        	
          10.1.
        	
          Grant of Restricted Stock, Stock Units, or Deferred Stock Units.
        	
          A-14
        
	

        	
          10.2.
        	
          Restrictions.
        	
          A-14
        
	

        	
          10.3.
        	
          Registration; Restricted Stock Certificates.
        	
          A-14
        
	

        	
          10.4.
        	
          Rights of Holders of Restricted Stock.
        	
          A-14
        
	

        	
          10.5.
        	
          Rights of Holders of Stock Units and Deferred Stock Units.
        	
          A-15
        
	

        	

        	
          10.5.1.
        	
          Voting and Dividend Rights.
        	
          A-15
        
	

        	

        	
          10.5.2.
        	
          Creditor’s Rights.
        	
          A-15
        
	

        	
          10.6.
        	
          Termination of Service.
        	
          A-15
        
	

        	
          10.7.
        	
          Purchase of Restricted Stock and Shares of Stock Subject to Stock
          Units and Deferred Stock Units.
        	
          A-15
        
	

        	
          10.8.
        	
          Delivery of Shares of Stock.
        	
          A-16
        
	
          11.
        	
          TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS AND OTHER
          EQUITY-BASED AWARDS
        	
          A-16
        
	

        	
          11.1.
        	
          Unrestricted Stock.
        	
          A-16
        
	

        	
          11.2.
        	
          Other Equity-Based Awards.
        	
          A-16
        
	
          12.
        	
          FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK
        	
          A-16
        
	

        	
          12.1.
        	
          General Rule.
        	
          A-16
        
	

        	
          12.2.
        	
          Surrender of Shares of Stock.
        	
          A-16
        
	

        	
          12.3.
        	
          Cashless Exercise.
        	
          A-16
        
	

        	
          12.4.
        	
          Other Forms of Payment.
        	
          A-17
        
	
          13.
        	
          TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS
        	
          A-17
        
	

        	
          13.1.
        	
          Dividend Equivalent Rights.
        	
          A-17
        
	

        	
          13.2.
        	
          Termination of Service.
        	
          A-17
        
	
          14.
        	
          TERMS AND CONDITIONS OF PERFORMANCE AWARDS AND ANNUAL CASH PROFIT
          SHARES
        	
          A-17
        
	

        	
          14.1.
        	
          Grant of Performance Awards and Annual Cash Profit Shares.
        	
          A-17
        
	

        	
          14.2.
        	
          Value of Performance Awards and Annual Cash Profit Shares.
        	
          A-17
        
	

        	
          14.3.
        	
          Earning of Performance Awards and Annual Cash Profit Shares.
        	
          A-17
        
	

        	
          14.4.
        	
          Form and Timing of Payment of Performance Awards and Annual Cash
          Profit Shares.
        	
          A-18
        
	

        	
          14.5.
        	
          Performance Conditions.
        	
          A-18
        
	

        	
          14.6.
        	
          Performance Awards or Annual Cash Profit Shares Granted to Designated
Covered
          Employees.
        	
          A-18
        
	

        	

        	
          14.6.1.
        	
          Performance Goals Generally.
        	
          A-18
        
	

        	

        	
          14.6.2.
        	
          Timing For Establishing Performance Goals.
        	
          A-18
        
	

        	

        	
          14.6.3.
        	
          Settlement of Awards; Other Terms.
        	
          A-18
        
	

        	

        	
          14.6.4.
        	
          Performance Measures.
        	
          A-19
        
	

        	

        	
          14.6.5.
        	
          Evaluation of Performance.
        	
          A-21
        
	

        	

        	
          14.6.6.
        	
          Adjustment of Performance-Based Compensation.
        	
          A-21
        
	

        	

        	
          14.6.7.
        	
          Committee Discretion.
        	
          A-21
        
	

        	
          14.7.
        	
          Status of Awards Under Code Section 162(m).
        	
          A-21
        

    

    
      
        

        

      

      
        
          A-ii
        

        
          

        

      

      
        

        

      

    

    

    

    	
          15.
        	
          PARACHUTE LIMITATIONS
        	
          A-21
        
	
          16.
        	
          REQUIREMENTS OF LAW
        	
          A-22
        
	

        	
          16.1.
        	
          General.
        	
          A-22
        
	

        	
          16.2.
        	
          Rule 16b-3.
        	
          A-22
        
	
          17.
        	
          EFFECT OF CHANGES IN CAPITALIZATION
        	
          A-23
        
	

        	
          17.1.
        	
          Changes in Stock.
        	
          A-23
        
	

        	
          17.2.
        	
          Reorganization in Which the Company Is the Surviving Entity Which
          Does not Constitute a Change in Control.
        	
          A-23
        
	

        	
          17.3.
        	
          Change in Control in which Awards are not Assumed.
        	
          A-23
        
	

        	
          17.4.
        	
          Change in Control in which Awards are Assumed.
        	
          A-24
        
	

        	
          17.5.
        	
          Adjustments
        	
          A-25
        
	

        	
          17.6.
        	
          No Limitations on Company.
        	
          A-25
        
	
          18.
        	
          GENERAL PROVISIONS
        	
          A-25
        
	

        	
          18.1.
        	
          Disclaimer of Rights.
        	
          A-25
        
	

        	
          18.2.
        	
          Nonexclusivity of the Plan.
        	
          A-25
        
	

        	
          18.3.
        	
          Withholding Taxes.
        	
          A-25
        
	

        	
          18.4.
        	
          Captions.
        	
          A-26
        
	

        	
          18.5.
        	
          Other Provisions.
        	
          A-26
        
	

        	
          18.6.
        	
          Number and Gender.
        	
          A-26
        
	

        	
          18.7.
        	
          Severability.
        	
          A-26
        
	

        	
          18.8.
        	
          Governing Law
        	
          A-26
        
	

        	
          18.9.
        	
          Section 409A of the Code.
        	
          A-26
        

    

    
      
        

        

      

      
        
          A-iii
        

        
          

        

      

      
        

        

      

    

    

    

    
      STRAYER EDUCATION, INC.
    

    
      2015 EQUITY COMPENSATION PLAN
    

    
      Strayer Education, Inc., a Maryland corporation (the “ Company
      ”), sets forth herein the terms of its 2015 Equity Compensation Plan
      (the “Plan”), as follows:
    

    
      1.        PURPOSE
    

    
      This Plan is intended to (i) provide incentive to eligible persons to
      stimulate their efforts toward the success of the Company and to operate
      and manage its business in a manner that will provide for the long-term
      growth and profitability of the Company and that will benefit the
      shareholders and other important stakeholders of the Company, including
      its employees and customers; and (ii) provide a means of recruiting,
      rewarding and retaining key personnel. To this end, the Plan provides
      for the grant of Options, Stock Appreciation Rights, Restricted Stock,
      Unrestricted Stock, Stock Units (including Deferred Stock Units),
      Dividend Equivalent Rights, Other Equity-based Awards, and cash bonus
      awards. Any of these Awards may, but need not, be made as performance
      incentives to reward attainment of annual or long-term performance goals
      in accordance with the terms of the Plan. Options granted under the Plan
      may be Non-qualified Stock Options or Incentive Stock Options, as
      provided herein.
    

    
      The Plan is an amendment and restatement of the Prior Plan. Awards
      granted under the Prior Plan prior to the Amendment Date will be subject
      to the terms of the Plan, except to the extent that the terms of the
      Plan are inconsistent with the terms of such awards.
    

    
      2.        DEFINITIONS
    

    
      For purposes of interpreting the Plan and related documents (including
      Award Agreements), the following capitalized terms shall have the
      meanings specified below, unless the context clearly indicates otherwise:
    

    
      2.1       “Affiliate” means,
      with respect to the Company, or other entity, that controls, is
      controlled by, or is under common control with the Company within the
      meaning of Rule 405 of Regulation C under the Securities Act, including,
      without limitation, any Subsidiary. For purposes of granting Options or
      Stock Appreciation Rights, an entity may not be considered an Affiliate
      of the Company unless the Company holds a Controlling Interest in such
      entity.
    

    
      2.2       “Amendment Date”
      means May 5, 2015, subject to approval of the Plan by the Company’s
      shareholders on such date, the Plan having been approved by the Board on
      February 4, 2015.
    

    
      2.3       “Annual Cash Profit Share”
      means an Award, denominated in cash, made subject to attainment of
      performance goals (as described in Section 14 ) over a
      Performance Period of up to one (1) year (the Company’s fiscal year,
      unless otherwise specified by the Board or the Committee).
    

    
      2.4       “Applicable Laws”
      means the legal requirements relating to the Plan and the Awards under
      (i) applicable provisions of the Code, the Securities Act, the Exchange
      Act, any rules or regulations thereunder, and any other laws, rules,
      regulations, and government orders of any jurisdiction applicable to the
      Company or its Affiliates, (ii) applicable provisions of the corporate,
      securities, tax and other laws, rules, regulations and government
      orders, and the rules of any applicable stock exchange or national
      market system, of any jurisdiction applicable to Awards granted to
      residents therein, and (iii) the rules of any Stock Exchange or
      Securities Market on which the Stock is listed or publicly traded.
    

    
      2.5       “Award” means a
      grant under the Plan of an Option, Stock Appreciation Right, Restricted
      Stock, Deferred Stock Unit, Unrestricted Stock, Stock Unit, Dividend
      Equivalent Right, Performance Award, Annual Cash Profit Share, Other
      Equity-Based Award, or cash.
    

    
      2.6       “Award Agreement”
      means the written agreement, in such written, electronic, or other form
      as determined by the Committee, between the Company and a Grantee that
      evidences and sets forth the terms and conditions of an Award.
    

    
      2.7       “Board” means the
      Board of Directors of the Company.
    

    
      A-1
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
      2.8       “Cause” means,
      with respect to any Grantee, as determined by the Committee and unless
      otherwise provided in an applicable agreement between such Grantee and
      the Company or an Affiliate, (i) gross negligence or willful misconduct
      in connection with the performance of duties; (ii) conviction of, or
      pleading guilty or nolo contendere to, a criminal offense (other
      than minor traffic offenses); or (iii) material breach of any term of
      any employment, consulting or other services, confidentiality,
      intellectual property or non-competition agreements, if any, between the
      Service Provider and the Company or an Affiliate.
    

    
      2.9       “ Change in Control
      ” means (i) the dissolution or liquidation of the Company or a merger,
      consolidation, or reorganization of the Company with one or more other
      entities in which the Company is not the surviving entity, (ii) a sale
      of substantially all of the assets of the Company to another person or
      entity, or (iii) any transaction (including without limitation a merger
      or reorganization in which the Company is the surviving entity) which
      results in any person or entity owning 50% or more of the combined
      voting power of all classes of stock of the Company.
    

    
      2.10     “Code” means the Internal
      Revenue Code of 1986, as amended, as now in effect or as hereafter
      amended, and any successor thereto. References in the Plan to any Code
      Sections shall be deemed to include, as applicable, regulations and
      guidance promulgated under such Code Section.
    

    
      2.11     “Committee” means a committee
      of, and designated from time to time by resolution of, the Board, which
      shall be constituted as provided in Section 3.1 (or, if no
      Committee has been so designated, the Board itself).
    

    
      2.12     “Company” means Strayer
      Education, Inc., a Maryland corporation, and any successor thereto.
    

    
      2.13     “Controlling Interest” shall
      have the meaning set forth in Treasury Regulation Section
      1.414(c)-2(b)(2)(i); provided that (i) except as specified in clause
      (ii) below, an interest of “at least 50 percent” shall be used instead
      of an interest of “at least 80 percent” in each case where “at least 80
      percent” appears in Treasury Regulation Section 1.414(c)-2(b)(2)(i) and
      (ii) where a grant of Options or Stock Appreciation Rights is based upon
      a legitimate business criterion, an interest of “at least 20 percent”
      shall be used instead of an interest of “at least 80 percent” in each
      case where “at least 80 percent” appears in Treasury Regulation Section
      1.414(c)-2(b)(2)(i).
    

    
      2.14     “Covered Employee” means a
      Grantee who is, or could become, a “covered employee” within the meaning
      of Code Section 162(m)(3).
    

    
      2.15     “Deferred Stock Unit” means a
      Stock Unit, the terms of which provide for delivery of the underlying
      shares of Stock, cash, or a combination thereof subsequent to the date
      of vesting, at a time or times consistent with the requirements of Code
      Section 409A.
    

    
      2.16     “Determination Date” means
      the Grant Date or such other date as of which the Fair Market Value of a
      share of Stock is required to be established for purposes of the Plan.
    

    
      2.17     “Disability” means, with
      respect to rules regarding expiration of an Incentive Stock Option
      following termination of the Grantee’s Service, the Grantee is unable to
      engage in any substantial gainful activity by reason of a medically
      determinable physical or mental impairment which can be expected to
      result in death or which has lasted or can be expected to last for a
      continuous period of not less than twelve (12) months.
    

    
      2.18     “Dividend Equivalent Right”
      means a right, granted to a Grantee pursuant to Section 13 ,
      entitling the Grantee thereof to receive, or to receive credits for the
      future payments of, cash, Stock, other Awards, or other property equal
      in value to dividend payments or distributions, or other periodic
      payments, declared or paid with respect to a number of shares of Stock
      specified in such Dividend Equivalent Right (or other Award to which
      such Dividend Equivalent Right relates) as if such shares of Stock had
      been issued to and held by the Grantee as of the record date.
    

    
      2.19     “Employee” means, as of any
      date of determination, an employee (including an officer) of the Company
      or an Affiliate.
    

    
      2.20     “Exchange Act” means the
      Securities Exchange Act of 1934, as amended, as now in effect or as
      hereafter amended, and any successor thereto.
    

    
      2.21     “Fair Market Value” means the
      fair market value of a share of Stock for purposes of the Plan, which
      shall be, as of any Determination Date:
    

    
      A-2
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
      (i)      If on such Determination Date the shares of Stock are listed on
      a Stock Exchange or are publicly traded on another Securities Market,
      the Fair Market Value of a share of Stock shall be the closing price of
      a share of Stock as reported on such Stock Exchange or such Securities
      Market ( provided that, if there is more than one such Stock
      Exchange or Securities Market, the Committee shall designate the
      appropriate Stock Exchange or Securities Market for purposes of the Fair
      Market Value determination). If there is no such reported closing price
      on such Determination Date, the Fair Market Value of a share of Stock
      shall be the closing price of a share of Stock on the last preceding day
      on which any sale of Stock shall have been reported on such Stock
      Exchange or such Securities Market.
    

    
      (ii)     If on such Determination Date the shares of Stock are not
      listed on a Stock Exchange or publicly traded on a Securities Market,
      the Fair Market Value of a share of Stock shall be the value of a share
      of Stock as determined by the Committee by the reasonable application of
      a reasonable valuation method, in a manner consistent with Code
      Section 409A.
    

    
      Notwithstanding this Section 2.21 or Section 18.3 , for
      purposes of determining taxable income and the amount of the related tax
      withholding obligation pursuant to Section 18.3 , the Fair
      Market Value will be determined by the Committee in good faith using any
      reasonable method as it deems appropriate, to be applied consistently
      with respect to Grantees; provided , further , that the
      Committee shall determine the Fair Market Value of shares of Stock for
      tax withholding obligations due in connection with sales, by or on
      behalf of a Grantee, of such shares of Stock subject to an Award to pay
      the Option Price, SAR Price, and/or any tax withholding obligation on
      the same date on which such shares may first be sold pursuant to the
      terms of the applicable Award Agreement (including broker-assisted
      cashless exercises of Options and Stock Appreciation Rights and
      sell-to-cover transactions) in any manner consistent with applicable
      provisions of the Code, including, without limitation, using the sale
      price of such shares on such date (or if sales of such shares are
      effectuated at more than one sale price, the weighted average sale price
      of such shares on such date) as the Fair Market Value of such shares, so
      long as such Grantee has provided the Company, or its designee or agent,
      with advance written notice of such sale.
    

    
      2.22     “Family Member” means, with
      respect to a Grantee as of any date of determination, (i) a person who
      is a spouse, former spouse, child, stepchild, grandchild, parent,
      stepparent, grandparent, niece, nephew, mother-in-law, father-in-law,
      son-in-law, daughter-in-law, brother, sister, brother-in-law, or
      sister-in-law, including adoptive relationships, of such Grantee; (ii)
      any person sharing such Grantee’s household (other than a tenant or
      employee); (iii) a trust in which any one or more of the persons
      specified in clauses (i) and (ii) of this Section 2.22 (and such
      Grantee) own more than fifty percent (50%) of the beneficial interest;
      (iv) a foundation in which any one or more of the persons specified in
      clauses (i) and (ii) of this Section 2.22 (and such Grantee)
      control the management of assets; and (v) any other entity in which one
      or more of these persons (or the Grantee) own more than fifty percent
      (50%) of the voting interests.
    

    
      2.23     “Grant Date” means, as
      determined by the Committee, the latest to occur of (i) the date as of
      which the Committee approves the Award, (ii) the date on which the
      recipient of an Award first becomes eligible to receive an Award under Section 6
      , or (iii) such other subsequent date specified by the Committee in the
      corporate action approving the Award.
    

    
      2.24     “Grantee” means a person who
      receives or holds an Award under the Plan.
    

    
      2.25     “Incentive Stock Option”
      means an “incentive stock option” within the meaning of Code Section
      422, or the corresponding provision of any subsequently enacted tax
      statute, as amended from time to time.
    

    
      2.26     “Non-Employee Director” shall
      have the meaning set forth in Rule 16b-3 under the Exchange Act.
    

    
      2.27     “Non-qualified Stock Option”
      means an Option that is not an Incentive Stock Option.
    

    
      2.28     “Officer” shall have the
      meaning set forth in Rule 16a-1(f) under the Exchange Act.
    

    
      2.29     “Option” means an option to
      purchase one or more shares of Stock at a specified Option Price awarded
      to a Grantee pursuant to Section 8 .
    

    
      2.30     “Option Price” means the per
      share exercise price for shares of Stock subject to an Option.
    

    
      2.31     “Other Equity-Based Award”
      means an Award representing a right or other interest that may be
      denominated or payable in, valued in whole or in part by reference to,
      or otherwise based on, or related to, Stock, other than an Option, Stock
      Appreciation Right, Restricted Stock, Deferred Stock Unit, Unrestricted
      Stock, Stock Unit, Dividend Equivalent Right, Performance Award, or
      Annual Cash Profit Share.
    

    
      A-3
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
      2.32     “Outside Director” shall have
      the meaning set forth in Code Section 162(m).
    

    
      2.33     “Performance Award” means an
      Award made subject to the attainment of performance goals (as described
      in Section 14 ) over a Performance Period specified by the
      Committee.
    

    
      2.34     “Performance-Based Compensation”
      means compensation under an Award that is intended to satisfy the
      requirements of Code Section 162(m) for Qualified Performance-Based
      Compensation paid to Covered Employees. Notwithstanding the foregoing,
      nothing in this Plan shall be construed to mean that an Award which does
      not satisfy the requirements for Qualified Performance-Based
      Compensation does not constitute performance-based compensation for
      other purposes, including the purposes of Code Section 409A.
    

    
      2.35     “Performance Measures” means
      measures as described in Section 14 on which the performance
      goal or goals under Performance Awards are based and which are approved
      by the Company’s shareholders pursuant to, and to the extent required
      by, the Plan in order to qualify such Performance Awards as
      Performance-Based Compensation.
    

    
      2.36     “Performance Period” means
      the period of time, of up to ten (10) years, during or over which the
      performance goals under Performance Awards must be met in order to
      determine the degree of payout and/or vesting with respect to any such
      Performance Award.
    

    
      2.37     “Plan” means this Strayer
      Education, Inc. 2015 Equity Compensation Plan, as amended from time to
      time.
    

    
      2.38     “Prior Plan” means the
      Strayer Education, Inc. 2011 Equity Compensation Plan, as amended.
    

    
      2.39     “Purchase Price” means the
      purchase price for each share of Stock pursuant to a grant of Restricted
      Stock, Stock Units, or Unrestricted Stock.
    

    
      2.40     “Qualified Performance-Based Compensation”
      shall have the meaning set forth in Code Section 162(m).
    

    
      2.41     “Reporting Person” means a
      person who is required to file reports under Section 16(a) of the
      Exchange Act, or any successor provision.
    

    
      2.42     “Restricted Period” shall
      have the meaning set forth in Section 10.2 .
    

    
      2.43     “Restricted Stock” means
      shares of Stock awarded to a Grantee pursuant to Section 10 .
    

    
      2.44     “SAR Price” means the per
      share exercise price of a SAR.
    

    
      2.45     “Securities Act” means the
      Securities Act of 1933, as amended, as now in effect or as hereafter
      amended, and any successor thereto.
    

    
      2.46     “Securities Market” means an
      established national or regional securities market.
    

    
      2.47     “Separation from Service”
      shall have the meaning set forth in Code Section 409A.
    

    
      2.48     “Service” means service of a
      Grantee as a Service Provider to the Company or any Affiliate. Unless
      otherwise provided in the applicable Award Agreement, a Grantee’s change
      in position or duties with the Company or any Affiliate shall not result
      in interrupted or terminated Service, so long as the Grantee continues
      to be a Service Provider to the Company or any Affiliate. If the Service
      Provider’s employment or other service relationship is with an Affiliate
      and that entity ceases to be an Affiliate, a termination of Service
      shall be deemed to have occurred when the entity ceases to be an
      Affiliate unless the Service Provider transfers his or her employment or
      other service relationship to the Company or its remaining Affiliates.
      Any determination by the Committee whether a termination of Service
      shall have occurred for purposes of the Plan shall be final, binding and
      conclusive.
    

    
      2.49     “Service Provider” means (i)
      an employee, officer, or director of the Company or an Affiliate, or
      (ii) a consultant or adviser to the Company or an Affiliate (1) who is a
      natural person, (ii) who is currently providing bona fide services to
      the Company or an Affiliate, and (iii) whose services are not in
      connection with the Company’s sale of securities in a capital-raising
      transaction and do not directly or indirectly promote or maintain a
      market for the Company’s Stock.
    

    
      2.50     “Service Recipient Stock”
      shall have the meaning set forth in Code Section 409A.
    

    
      2.51     “Share Limit” shall have the
      meaning set forth in Section 4.1 .
    

    
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      2.52     “Short-Term Deferral Period”
      shall have the meaning set forth in Code Section 409A.
    

    
      2.53     “Stock” means the common
      stock, par value $0.01 per share, of the Company, or any security into
      which shares of Stock may be changed or for which shares of Stock may be
      exchanged as provided in Section 17.1 .
    

    
      2.54     “Stock Appreciation Right” or “SAR”
      means a right granted to a Grantee pursuant to Section 9 .
    

    
      2.55     “Stock Exchange” means the
      New York Stock Exchange, the NASDAQ Stock Market, or another established
      national or regional stock exchange.
    

    
      2.56     “Stock Unit” means a
      bookkeeping entry representing the equivalent of one share of Stock
      awarded to a Grantee pursuant to Section 10 that may be
      settled, subject to the terms and conditions of the applicable Award
      Agreement, in shares of Stock, cash, or a combination thereof.
    

    
      2.57     “Subsidiary” means any
      corporation (other than the Company) or non-corporate entity with
      respect to which the Company owns, directly or indirectly, fifty percent
      (50%)   or more of the total combined voting power of all classes of
      stock. In addition, any other entity may be designated by the Committee
      as a Subsidiary, provided that (i) such entity could be considered as a
      subsidiary according to generally accepted accounting principles in the
      United States of America and (ii) in the case of an Award of Options or
      Stock Appreciation Rights, such Award would be considered to be granted
      in respect of Service Recipient Stock under Code Section 409A.
    

    
      2.58     “Substitute Award” means an
      Award granted upon assumption of, or in substitution for, outstanding
      awards previously granted under a compensatory plan of the Company, an
      Affiliate, or other business entity acquired or to be acquired by the
      Company or an Affiliate or with which the Company or an Affiliate has
      combined or will combine.
    

    
      2.59     “Ten Percent Shareholder”
      means a natural person who owns more than ten percent (10%) of the total
      combined voting power of all classes of outstanding voting securities of
      the Company, the Company’s parent (if any), or any of the Company’s
      Subsidiaries. In determining stock ownership, the attribution rules of
      Code Section 424(d) shall be applied.
    

    
      2.60     “Unrestricted Stock” means
      Stock that is free of any restrictions granted pursuant to Section 11
      .
    

    
      3.        ADMINISTRATION OF THE PLAN
    

    
      3.1.      Committee.
    

    
      3.1.1.      Powers and Authorities.
    

    
      The Committee shall administer the Plan and shall have such powers and
      authorities related to the administration of the Plan as are consistent
      with the Company’s certificate of incorporation and bylaws and
      Applicable Laws. Without limiting the generality of the foregoing, the
      Committee shall have full power and authority to take all actions and to
      make all determinations required or provided for under the Plan, any
      Award, or any Award Agreement and shall have full power and authority to
      take all such other actions and to make all such other determinations
      not inconsistent with the specific terms and provisions of the Plan
      which the Committee deems to be necessary or appropriate to the
      administration of the Plan, any Award, or any Award Agreement. All such
      actions and determinations shall be made by (i) the affirmative vote of
      a majority of the members of the Committee present at a meeting at which
      a quorum is present, or (ii) the unanimous consent of the members of the
      Committee executed in writing or evidenced by electronic transmission in
      accordance with the Company’s certificate of incorporation and bylaws
      and Applicable Laws. Unless otherwise expressly determined by the Board,
      the Committee shall have the authority to interpret and construe all
      provisions of the Plan, any Award, and any Award Agreement, and any such
      interpretation or construction, and any other determination contemplated
      to be made under the Plan or any Award Agreement, by the Committee shall
      be final, binding, and conclusive on all persons, whether or not
      expressly provided for in any provision of the Plan, such Award, or such
      Award Agreement.
    

    
      In the event that the Plan, any Award, or any Award Agreement provides
      for any action to be taken by the Board or any determination to be made
      by the Board, such action may be taken or such determination may be made
      by the Committee constituted in accordance with this Section 3.1.1
      if the Board has delegated the power and authority to do so to such
      Committee.
    

    
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      3.1.2.      Composition of the Committee.
    

    
      The Committee shall be a committee composed of not fewer than two (2)
      directors of the Company designated by the Board to administer the Plan.
      Each member of the Committee shall be (i) a Non-Employee Director, (ii)
      an Outside Director, and (iii) an independent director in accordance
      with the rules of any Stock Exchange on which the Stock is listed; provided
      that any action taken by the Committee shall be valid and effective
      whether or not members of the Committee at the time of such action are
      later determined not to have satisfied the requirements for membership
      set forth in this Section 3.1.2 or otherwise provided in any
      charter of the Committee. Without limiting the generality of the
      foregoing, the Committee may be the Compensation Committee of the Board
      or a subcommittee thereof if the Compensation Committee of the Board or
      such subcommittee satisfies the foregoing requirements.
    

    
      3.1.3.      Other Committees.
    

    
      The Board also may appoint one or more committees of the Board, each
      composed of one or more directors of the Company who need not be Outside
      Directors, which (i) may administer the Plan with respect to Grantees
      who are not Officers or directors of the Company, (ii) may grant Awards
      under the Plan to such Grantees, and (iii) may determine all terms of
      such Awards, in each case, excluding (for the avoidance of doubt)
      Performance Awards intending to constitute Qualified Performance-Based
      Compensation and subject, if applicable, to the requirements of Rule
      16b-3 under the Exchange Act and the rules of any Stock Exchange or
      Securities Market on which the Stock is listed or publicly traded.
    

    
      3.1.4.      Delegation by Committee.
    

    
      To the extent permitted by Applicable Laws, the Committee may, by
      resolution, delegate some or all of its authority with respect to the
      Plan and Awards to the Chief Executive Officer of the Company and/or any
      other officer of the Company designated by the Committee; provided
      that the Committee may not delegate its authority hereunder (i) to make
      Awards to directors of the Company, (ii) to make Awards to employees who
      are (1) Officers, (2) Covered Employees, or (3) officers of the Company
      who are delegated authority by the Committee pursuant to this Section 3.1.4
      , or (iii) to interpret the Plan, any Award, or any Award Agreement. Any
      delegation hereunder will be subject to the restrictions and limits that
      the Committee specifies at the time of such delegation or thereafter.
      Nothing in the Plan will be construed as obligating the Committee to
      delegate authority to any officer of the Company, and the Committee may
      at any time rescind the authority delegated to an officer of the Company
      appointed hereunder and delegate authority to one or more other officers
      of the Company. At all times, an officer of the Company delegated
      authority pursuant to this Section 3.1.4 will serve in such
      capacity at the pleasure of the Committee. Any action undertaken by any
      such officer of the Company in accordance with the Committee’s
      delegation of authority will have the same force and effect as if
      undertaken directly by the Committee, and any reference in the Plan to
      the “Committee” will, to the extent consistent with the terms and
      limitations of such delegation, be deemed to include a reference to each
      such officer .
    

    
      3.2.      Board.
    

    
      The Board, from time to time, may exercise any or all of the powers and
      authorities related to the administration and implementation of the
      Plan, as set forth in Section 3.1 and other applicable
      provisions of the Plan, as the Board shall determine, consistent with
      the Company’s certificate of incorporation and bylaws and Applicable
      Laws.
    

    
      3.3.      Terms of Awards.
    

    
      Subject to the other terms and conditions of the Plan, the Committee
      shall have full and final authority to:
    

    
      (i)        designate Grantees;
    

    
      (ii)       determine the type or types of Awards to be made to a Grantee;
    

    
      (iii)      determine the number of shares of Stock to be subject to an
      Award or to which an Award relates;
    

    
      (iv)      establish the terms and conditions of each Award (including
      the Option Price, SAR Price, and Purchase Price; the nature and duration
      of any restriction or condition (or provision for lapse thereof)
      relating to the vesting, exercise, transfer, or forfeiture of an Award
      or the shares of Stock subject thereto; the treatment of an Award in the
      event of a Change in Control (subject to applicable agreements); and any
      terms or conditions that may be necessary to qualify Options as
      Incentive Stock Options);
    

    
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      (v)       prescribe the form of each Award Agreement evidencing an Award;
    

    
      (vi)      subject to the limitation on repricing in Section
      3.5 , amend, modify, or supplement the terms of any outstanding
      Award, which authority specifically includes the authority, in order to
      effectuate the purposes of the Plan but without amending the Plan, to
      make Awards or to modify outstanding Awards made to eligible natural
      persons who are foreign nationals or are natural persons who are
      employed outside the United   States to reflect differences in local
      law, tax policy, or custom; provided that, notwithstanding the
      foregoing, no amendment, modification, or supplement of the terms of any
      outstanding Award shall, without the consent of the Grantee, impair the
      Grantee’s rights under such Award; and
    

    
      (vii)     make Substitute Awards.
    

    
      3.4.      Forfeiture; Recoupment.
    

    
      The Committee may reserve the right in an Award Agreement to cause a
      forfeiture of the gain realized by a Grantee with respect to an Award
      thereunder on account of actions taken by, or failed to be taken by,
      such Grantee in violation or breach of or in conflict with any (i)
      employment agreement, (ii) non-competition agreement, (iii) agreement
      prohibiting solicitation of employees or clients of the Company or an
      Affiliate, (iv) confidentiality obligation with respect to the Company
      or an Affiliate, (v) Company or Affiliate policy or procedure, (vi)
      other agreement, or (vii) other obligation of such Grantee to the
      Company or an Affiliate, as and to the extent specified in such Award
      Agreement. Furthermore, if the Grantee of an outstanding Award is an
      employee of the Company or an Affiliate thereof and such Grantee’s
      Service is terminated for Cause, the Committee may annul such Grantee’s
      outstanding Award as of the date of the Grantee’s termination of Service
      for Cause.
    

    
      Any Award granted pursuant to the Plan is subject to mandatory repayment
      by the Grantee to the Company (x) to the extent set forth in the Plan or
      an Award Agreement or (y) to the extent the Grantee is, or in the future
      becomes, subject to (1) any Company or Affiliate “clawback” or
      recoupment policy that is adopted to comply with the requirements of any
      Applicable Laws or (2) any Applicable Laws which impose mandatory
      recoupment, under circumstances set forth in such Applicable Laws.
    

    
      Furthermore, if the Company is required to prepare an accounting
      restatement due to the material noncompliance of the Company, as a
      result of misconduct, with any financial reporting requirement under
      Applicable Laws, the natural persons subject to automatic forfeiture
      under Section 304 of the Sarbanes-Oxley Act of 2002 and any Grantee who
      knowingly engaged in the misconduct, was grossly negligent in engaging
      in the misconduct, knowingly failed to prevent the misconduct, or was
      grossly negligent in failing to prevent the misconduct, shall reimburse
      the Company the amount of any payment in settlement of an Award earned
      or accrued during the twelve (12)-month period following the first
      public issuance or filing (whichever first occurred) with the United
      States Securities and Exchange Commission of the financial document that
      contained such material noncompliance.
    

    
      Notwithstanding any other provision of this Plan or any provision of any
      Award Agreement, if the Company is required to prepare an accounting
      restatement, then a Grantee shall forfeit any cash or Stock received in
      connection with an Award (or an amount equal to the Fair Market Value of
      such Stock on the date of delivery if the Grantee no longer holds the
      shares of Stock) if, pursuant to the terms of the Award Agreement for
      such Award, the amount of the Award earned or the vesting in the Award
      was explicitly based on the achievement of pre-established performance
      goals set forth in the Award Agreement (including earnings, gains, or
      other criteria) that are later determined, as a result of the accounting
      restatement, not to have been achieved.
    

    
      3.5.      No Repricing.
    

    
      Except in connection with a corporate transaction involving the Company
      (including, without limitation, any stock dividend, distribution
      (whether in the form of cash, shares of Stock, other securities, or
      other property), stock split, extraordinary dividend, recapitalization,
      Change in Control, reorganization, merger, consolidation, split-up,
      spin-off, combination, repurchase or exchange of shares of Stock, or
      other securities or similar transaction), the Company may not, without
      obtaining shareholder approval: (i) amend the terms of outstanding
      Options or SARs to reduce the Option Price or SAR Price, as applicable,
      of such outstanding Options or SARs; (ii) cancel outstanding Options or
      SARs in exchange for or substitution of Options or SARs with an Option
      Price or SAR Price, as applicable, that is less than the Option Price or
      SAR Price, as applicable, of the original Options or SARs; or
      (iii) cancel outstanding Options or SARs with an Option Price or SAR
      Price, as applicable, above the current Fair Market Value in exchange
      for cash or other securities, in each case, unless such action would not
      be deemed to be a repricing under the rules of any Stock Exchange or
      Securities Market on which the Stock is listed or publicly traded.
    

    
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      3.6.      Deferral Arrangement.
    

    
      The Committee may permit or require the deferral of any payment pursuant
      to an Award into a deferred compensation arrangement, subject to such
      rules and procedures as it may establish, which may include provisions
      for the payment or crediting of interest or Dividend Equivalent Rights
      and, in connection therewith, provisions for converting such credits
      into Deferred Stock Units and for restricting deferrals to comply with
      hardship distribution rules affecting tax-qualified retirement plans
      subject to Code Section 401(k)(2)(B)(IV); provided that no Dividend
      Equivalent Rights may be granted in connection with, or related to, an
      Award of Options or SARs. Any such deferrals shall be made in a manner
      that complies with Code Section 409A, including, if applicable, with
      respect to when a Separation from Service occurs.
    

    
      3.7.      No Liability.
    

    
      No member of the Board or the Committee shall be liable for any action
      or determination made in good faith with respect to the Plan, any Award,
      or any Award Agreement. Notwithstanding any provision of the Plan to the
      contrary, neither the Company, an Affiliate, the Board, the Committee,
      nor any person acting on behalf of the Company, an Affiliate, the Board,
      or the Committee will be liable to any Grantee or to the estate or
      beneficiary of any Grantee or to any other holder of an Award under the
      Plan by reason of any acceleration of income, or any additional tax
      (including any interest and penalties), asserted by reason of the
      failure of an Award to satisfy the requirements of Code Section 422 or
      Code Section 409A or by reason of Code Section 4999, or otherwise
      asserted with respect to the Award; provided that this Section
      3.7 shall not affect any of the rights or obligations set forth in
      an applicable agreement between the Grantee and the Company or an
      Affiliate.
    

    
      3.8.      Stock Issuance/Book-Entry.
    

    
      Notwithstanding any provision of the Plan to the contrary, the ownership
      of the shares of Stock issued under the Plan may be evidenced in such a
      manner as the Committee, in its sole discretion, deems appropriate,
      including, without limitation , book-entry or direct registration or the
      issuance of one or more share certificates.
    

    
      4.        STOCK SUBJECT TO THE PLAN
    

    
      4.1.      Number of Shares of Stock Reserved for Awards.
    

    
      Subject to adjustment as provided in Section 4.2 and Section 17
      , the number of shares of Stock reserved for issuance under the Plan
      will be equal to the sum of (i) five hundred thousand (500,000) shares
      of Stock, plus (ii) the number of shares of Stock available for future
      awards under the Prior Plan as of the Amendment Date, plus (iii) the
      number of shares of Stock related to awards outstanding under the Prior
      Plan as of the Amendment Date that thereafter terminate by expiration or
      forfeiture, cancellation, or otherwise without the issuance of such
      shares of Stock (the “ Share Limit ”). Any of the shares of
      Stock reserved and available for issuance under the Plan may be used for
      any type of Award under the Plan, and any or all of the shares of Stock
      reserved for issuance under the Plan shall be available for issuance
      pursuant to Incentive Stock Options. Shares of Stock to be issued under
      the Plan shall be authorized but unissued shares or, to the extent
      permitted by Applicable Laws, issued shares that have been reacquired by
      the Company .
    

    
      4.2.      Adjustments in Authorized Shares of Stock.
    

    
      In connection with mergers, reorganizations, separations, or other
      transactions to which Code Section 424(a) applies, the Committee shall
      have the right to cause the Company to assume awards previously granted
      under a compensatory plan of another business entity that is a party to
      such transaction and/or to grant Substitute Awards under the Plan for
      such awards. The Share Limit pursuant to Section 4.1 shall
      be increased by the number of shares of Stock subject to any such
      assumed awards and Substitute Awards. Shares available for issuance
      under a shareholder-approved plan of a business entity that is a party
      to such transaction (as appropriately adjusted, if necessary, to reflect
      the transaction) may be used for Awards under the Plan and shall not
      reduce the number of shares of Stock available for issuance under the
      Plan, subject to applicable requirements of any Stock Exchange or
      Securities Market on which the Stock is listed or publicly traded.
    

    
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      4.3.      Share Usage.
    

    
      Shares of Stock covered by an Award shall be counted as used as of the
      Grant Date for purposes of calculating the number of shares of Stock
      available for issuance under Section 4.1 . Any shares of Stock
      that are subject to Awards shall be counted against the Share Limit set
      forth in Section 4.1 as one (1) share of Stock for every one
      (1) share of Stock subject to an Award. With respect to SARs, the number
      of shares of Stock subject to an award of SARs will be counted against
      the Share Limit set forth in Section 4.1 as one (1) share of
      Stock for every one (1) share of Stock subject to such Award regardless
      of the number of shares of Stock actually issued to settle the SAR upon
      exercise. The target number of shares issuable under a Performance Award
      shall be counted against the Share Limit set forth in Section 4.1
      as of the Grant Date, but such number shall be adjusted to equal the
      actual number of shares issued upon settlement of the Performance Award
      to the extent different from such target number of shares.
    

    
      If any shares of Stock covered by an Award granted under the Plan are
      not purchased or are forfeited or expire, or if an Award otherwise
      terminates without delivery of any shares of Stock subject thereto or is
      settled in cash in lieu of shares of Stock, then the number of shares of
      Stock counted against the Share Limit with respect to such Award shall,
      to the extent of any such forfeiture, termination, expiration, or
      settlement, again be available for making Awards under the Plan in the
      same amount as such shares of Stock were counted against the Share Limit
      set forth in Section 4.1 . The number of shares of Stock
      available for issuance under the Plan shall not be increased by the
      number of shares of Stock (i) tendered, withheld, or subject to an Award
      surrendered in connection with the purchase of shares of Stock upon
      exercise of an Option, (ii) deducted or delivered from payment of an
      Award payment in connection with the Company’s tax withholding
      obligations as described in Section 18.3 , (iii) purchased
      by the Company with proceeds from Option exercises, or (iv) not issued
      upon the net settlement or net exercise of a Stock-settled SAR.
    

    
      5.        TERM; AMENDMENT, SUSPENSION, AND TERMINATION
    

    
      5.1.      Term.
    

    
      The Plan, as amended and restated, shall become effective as of the
      Amendment Date. Following the Amendment Date, no awards shall be made
      under the Prior Plan. Notwithstanding the foregoing, shares of Stock
      reserved under the Prior Plan to settle awards, including
      performance-based awards, which are made under the Prior Plan prior to
      the Amendment Date may be issued and delivered following the Amendment
      Date to settle such awards. The Plan shall terminate on the first to
      occur of (i) the tenth (10th) anniversary of the Amendment Date, (ii)
      the date determined in accordance with Section 5.2 , and
      (iii) the date determined in accordance with Section 17.3 ; provided
      , however , that Incentive Stock Options may not be granted under
      the Plan after the tenth (10th) anniversary of the date of the Board’s
      adoption of the Plan. Upon such termination of the Plan, all outstanding
      Awards shall continue to have full force and effect in accordance with
      the provisions of the terminated Plan and the applicable Award Agreement
      (or other documents evidencing such Awards).
    

    
      5.2.      Amendment, Suspension, and Termination of the Plan.
    

    
      The Board may, at any time and from time to time, amend, suspend, or
      terminate the Plan; provided that, with respect to Awards theretofore
      granted under the Plan, no amendment, suspension, or termination of the
      Plan shall, without the consent of the Grantee, impair the rights or
      obligations under any such Award. An amendment shall be contingent on
      approval of the Company’s shareholders to the extent stated by the Board
      or required by Applicable Laws (including applicable Stock Exchange
      listing requirements); provided that no amendment will be made to
      the no-repricing provisions of Section 3.5   or the option
      pricing provisions of Section 8.1 without the approval of
      the Company’s shareholders.
    

    
      6.        AWARD ELIGIBILITY AND LIMITATIONS
    

    
      6.1.      Service Providers and Other Persons.
    

    
      Subject to this Section 6 , Awards may be made under the
      Plan to: (i) any Service Provider, as the Committee shall determine and
      designate from time to time, and (ii) any other individual whose
      participation in the Plan is determined to be in the best interests of
      the Company by the Committee.
    

    
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      6.2.      Limitation on Shares of Stock Subject to Awards and Cash
      Awards.
    

    
      During any time when the Company has a class of equity securities
      registered under Section 12 of the Exchange Act:
    

    
      (i)      the maximum number of shares of Stock subject to Options or
      SARs that may be granted under the Plan in a calendar year to any person
      eligible for an Award under Section 6 is one hundred thousand
      (100,000); provided, however, that the maximum number of shares of Stock
      subject to Options or SARs that can be granted under the Plan to any
      person eligible for an Award under Section 6 in the year the person is
      first employed by the Company is two hundred thousand (200,000); and
    

    
      (ii)     the maximum number of shares of Stock that may be granted under
      the Plan, other than pursuant to Options or SARs, in a calendar year to
      any person eligible for an Award under Section 6 is one hundred
      thousand (100,000) shares; provided, however, that the maximum number of
      shares of Stock subject to Awards other than Options or SARs that can be
      granted under the Plan to any person eligible for an Award under
      Section 6 in the year that the person is first employed by the Company
      is two hundred thousand (200,000).
    

    
      (iii)    t he maximum amount that may be paid as an Annual Cash Profit
      Share (whether or not cash-settled) in a calendar year to any person
      eligible for an Award under Section 6 shall be five million
      dollars ($5,000,000), and the maximum amount that may be paid as a
      cash-denominated Performance Award (whether or not cash-settled) in
      respect of a Performance Period greater than one year by any person
      eligible for an Award under Section 6 shall be twenty
      million dollars ($20,000,000) .
    

    
      6.3.      Stand-Alone, Additional, Tandem and Substitute Awards.
    

    
      Subject to Section 3.4 , Awards granted under the Plan may, in
      the sole discretion of the Committee, be granted either alone or in
      addition to, in tandem with, or in substitution or exchange for, (i) any
      other Award, (ii) any award granted under another plan of the Company,
      any Affiliate, or any business entity that has been a party to a
      transaction with the Company or an Affiliate, or (iii) any other right
      of a Grantee to receive payment from the Company or any Affiliate. Such
      additional, tandem, exchange, or Substitute Awards may be granted at any
      time. If an Award is granted in substitution or exchange for another
      Award or for an award granted under another plan of the Company, an
      Affiliate, or any business entity that has been a party to a transaction
      with the Company or an Affiliate, the Committee shall require the
      surrender of such other Award or award under such other plan in
      consideration for the grant of such exchange or Substitute Award. In
      addition, Awards may be granted in lieu of cash compensation, including
      in lieu of cash amounts payable under other plans of the Company or any
      Affiliate. Notwithstanding Section 8.1 and Section 9.1 but
      subject to Section 3.5 , the Option Price of an Option or the SAR
      Price of an SAR that is a Substitute Award may be less than one hundred
      percent (100%) of the Fair Market Value of a share of Stock on the
      original Grant Date; provided , that the Option Price or SAR
      Price is determined in accordance with the principles of Code Section
      424 and the regulations thereunder for any Incentive Stock Option and
      consistent with Code Section 409A for any other Option or SAR.
    

    
      7.        AWARD AGREEMENT
    

    
      Each Award granted pursuant to the Plan shall be evidenced by an Award
      Agreement, in such form or forms as the Committee shall from time to
      time determine. Award Agreements utilized from time to time or at the
      same time need not contain similar provisions but shall be consistent
      with the terms of the Plan. Each Award Agreement evidencing an Award of
      Options shall specify whether such Options are intended to be
      Non-qualified Stock Options or Incentive Stock Options, and in the
      absence of such specification such options shall be deemed Non-qualified
      Stock Options. In the event of any inconsistency between the Plan and an
      Award Agreement, the provisions of the Plan shall control.
    

    
      8.        TERMS AND CONDITIONS OF OPTIONS
    

    
      8.1.      Option Price.
    

    
      The Option Price of each Option shall be fixed by the Committee and
      stated in the Award Agreement evidencing such Option. Except in the case
      of Substitute Awards, the Option Price of each Option shall be at least
      the Fair Market Value of one (1) share of Stock on the Grant Date; provided
      , however , that in the event that a Grantee is a Ten Percent
      Shareholder, the Option Price of an Option granted to such Grantee that
      is intended to be an Incentive Stock Option shall be not less than one
      hundred ten percent (110%) of the Fair Market Value of one (1) share of
      Stock on the Grant Date. In no case shall the Option Price of any Option
      be less than the par value of a share of Stock.
    

    
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      8.2.      Vesting and Exercisability.
    

    
      Subject to Sections 8.3 and 17.3 , each Option
      granted under the Plan shall become vested and/or exercisable at such
      times and under such conditions as shall be determined by the Committee
      and stated in the Award Agreement, in another agreement with the
      Grantee, or otherwise in writing; provided that no Option shall be
      granted to Grantees who are entitled to overtime under Applicable Laws
      that will vest or be exercisable within a six (6)-month period starting
      on the Grant Date. For purposes of this Section 8.2 ,
      fractional numbers of shares of Stock subject to an Option shall be
      rounded down to the next nearest whole number.
    

    
      8.3.      Term.
    

    
      Each Option granted under the Plan shall terminate, and all rights to
      purchase shares of Stock thereunder shall cease, on the tenth (10th)
      anniversary of the Grant Date, or under such circumstances and on such
      date prior thereto as is set forth in the Plan or as may be fixed by the
      Committee and stated in the Award Agreement relating to such Option; provided
      , however , that in the event that the Grantee is a Ten Percent
      Shareholder, an Option granted to such Grantee that is intended to be an
      Incentive Stock Option shall not be exercisable after the fifth (5th)
      anniversary of the Grant Date of such Option, and provided , further
      , that, to the extent deemed necessary or appropriate by the Committee
      to reflect differences in local law, tax policy, or custom with respect
      to any Option granted to a Grantee who is a foreign national or is a
      natural person who is employed outside the United States, such Option
      may terminate, and all rights to purchase shares of Stock thereunder may
      cease, upon the expiration of a period longer than ten (10) years from
      the Grant Date of such Option as the Committee shall determine. If on
      the day preceding the date on which a Grantee’s Options would otherwise
      terminate, the Fair Market Value of shares of stock underlying a
      Grantee’s Options is greater than the Option Price of such Options, the
      Company shall, prior to the termination of such Options and without any
      action being taken on the part of the Grantee, consider such Options to
      have been exercised by the Grantee. The Company shall deduct from the
      shares of Stock deliverable to the Grantee upon such exercise the number
      of shares of Stock necessary to satisfy payment of the Option Price and
      all withholding obligations.
    

    
      8.4.      Termination of Service.
    

    
      Each Award Agreement with respect to the grant of an Option shall set
      forth the extent to which the Grantee thereof, if at all, shall have the
      right to exercise the Option following termination of the Grantee’s
      Service. Such provisions shall be determined in the sole discretion of
      the Committee, need not be uniform among all Options issued pursuant to
      the Plan, and may reflect distinctions based on the reasons for
      termination of Service.
    

    
      8.5.      Limitations on Exercise of Option.
    

    
      Notwithstanding any provision of the Plan to the contrary, in no event
      may any Option be exercised, in whole or in part, after the occurrence
      of an event referred to in Section 17 which results in
      termination of the Option.
    

    
      8.6.      Method of Exercise.
    

    
      Subject to the terms of Section 12 and Section 18.3
      , an Option that is exercisable may be exercised by the Grantee’s
      delivery to the Company or its designee or agent of notice of exercise
      on any business day, at the Company’s principal office or the office of
      such designee or agent, on the form specified by the Company and in
      accordance with any additional procedures specified by the Committee.
      Such notice shall specify the number of shares of Stock with respect to
      which the Option is being exercised and shall be accompanied by payment
      in full of the Option Price of the shares of Stock for which the Option
      is being exercised, plus the amount (if any) of federal and/or other
      taxes which the Company may, in its judgment, be required to withhold
      with respect to the exercise of such Option.
    

    
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      8.7.      Rights of Holders of Options.
    

    
      Unless otherwise stated in the applicable Award Agreement, a Grantee or
      other person holding or exercising an Option shall have none of the
      rights of a shareholder (for example, the right to receive cash or
      dividend payments or distributions attributable to the shares of Stock
      subject to such Option or to direct the voting of the shares of Stock
      subject to such Option) until the shares of Stock subject thereby are
      fully paid and issued to such Grantee or other person. Except as
      provided in Section 17 , no adjustment shall be made for
      dividends, distributions, or other rights for which the record date is
      prior to the date of issuance of such shares of Stock.
    

    
      8.8.      Delivery of Stock.
    

    
      Promptly after the exercise of an Option by a Grantee and the payment in
      full of the Option Price with respect thereto, such Grantee shall be
      entitled to receive evidence of such Grantee’s ownership of the shares
      of Stock subject to the Option as shall be consistent with Section 3.8
      .
    

    
      8.9.      Transferability of Options.
    

    
      Except as provided in Section 8.10 , during the lifetime of
      a Grantee of an Option, only the Grantee (or, in the event of such
      Grantee’s legal incapacity or incompetency, the Grantee’s guardian or
      legal representative) may exercise such Option. Except as provided in Section 8.10
      , no Option shall be assignable or transferable by the Grantee to whom
      it is granted, other than by will or the laws of descent and
      distribution.
    

    
      8.10.   Family Transfers.
    

    
      If authorized in the applicable Award Agreement and by the Committee, in
      its sole discretion, a Grantee may transfer, not for value, all or part
      of an Option which is not an Incentive Stock Option to any Family
      Member. For the purpose of this Section 8.10 , a “not for
      value” transfer is a transfer which is (i) a gift, (ii) a transfer under
      a domestic relations order in settlement of marital property rights; or
      (iii) unless Applicable Law does not permit such transfers, a transfer
      to an entity in which more than fifty percent (50%) of the voting
      interests are owned by Family Members (and/or the Grantee) in exchange
      for an interest in that entity. Following a transfer under this Section 8.10
      , any such Option shall continue to be subject to the same terms and
      conditions as were applicable immediately prior to transfer, and shares
      of Stock acquired pursuant to the Option shall be subject to the same
      restrictions on transfer of shares as would have applied to the Grantee.
      Subsequent transfers of transferred Options shall be prohibited except
      to Family Members of the original Grantee in accordance with this Section
      8.10 or by will or the laws of descent and distribution. The
      provisions of Section 8.4 relating to termination of Service
      shall continue to be applied with respect to the original Grantee,
      following which the Option shall be exercisable by the transferee only
      to the extent, and for the periods specified, in Section 8.4
      .
    

    
      8.11.   Limitations on Incentive Stock Options.
    

    
      An Option shall constitute an Incentive Stock Option only (i) if the
      Grantee of such Option is an employ ee of the Company or any corporate
      Subsidiary; (ii) to the extent specifically provided in the related
      Award Agreement; and (iii) to the extent that the aggregate Fair Market
      Value (determined at the time the Option is granted) of the shares of
      Stock with respect to which all Incentive Stock Options held by such
      Grantee become exercisable for the first time during any calendar year
      (under the Plan and all other plans of the Company and its Affiliates)
      does not exceed one hundred thousand dollars ($100,000). Except to the
      extent provided in the regulations under Code Section 422, this
      limitation shall be applied by taking Options into account in the order
      in which they were granted.
    

    
      8.12.   Notice of Disqualifying Disposition.
    

    
      If any Grantee shall make any disposition of shares of Stock issued
      pursuant to the exercise of an Incentive Stock Option under the
      circumstances described in Code Section 421(b) (relating to certain
      disqualifying dispositions), such Grantee shall notify the Company of
      such disposition immediately but in no event later than ten (10) days
      thereafter.
    

    
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      9.        TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS
    

    
      9.1.      Right to Payment and Grant Price.
    

    
      A SAR shall confer on the Grantee to whom it is granted a right to
      receive, upon exercise thereof, the excess of (i) the Fair Market Value
      of one (1) share of Stock on the date of exercise over (ii) the SAR
      Price as determined by the Committee. The Award Agreement for a SAR
      shall specify the SAR Price, which shall be no less than the Fair Market
      Value of one (1) share of Stock on the Grant Date of such SAR. SARs may
      be granted in tandem with all or part of an Option granted under the
      Plan or at any subsequent time during the term of such Option, in
      combination with all or part of any other Award, or without regard to
      any Option or other Award; provided , that a SAR that is granted
      in tandem with all or part of an Option will have the same term, and
      expire at the same time, as the related Option; provided , further
      , that a SAR that is granted subsequent to the Grant Date of a related
      Option must have a SAR Price that is no less than the Fair Market Value
      of one (1) share of Stock on the Grant Date of such SAR.
    

    
      9.2.      Other Terms.
    

    
      The Committee shall determine, on the Grant Date or thereafter, the time
      or times at which and the circumstances under which a SAR may be
      exercised in whole or in part (including based on achievement of
      performance goals and/or future Service requirements); the time or times
      at which SARs shall cease to be or become exercisable following
      termination of Service or upon other conditions; the method of exercise,
      method of settlement, form of consideration payable in settlement,
      method by or forms in which shares of Stock shall be delivered or deemed
      to be delivered to Grantees, whether or not a SAR shall be in tandem or
      in combination with any other Award; and any other terms and conditions
      of any SAR; provided , that no SARs shall be granted to Grantees
      who are entitled to overtime under Applicable Laws that will vest or be
      exercisable within a six (6)-month period starting on the Grant Date.
    

    
      9.3.      Term.
    

    
      Each SAR granted under the Plan shall terminate, and all rights
      thereunder shall cease, on the tenth (10 th ) anniversary of
      the Grant Date of such SAR, or under such circumstances and on such date
      prior thereto as is set forth in the Plan or as may be fixed by the
      Committee and stated in the Award Agreement relating to such SAR. If on
      the day preceding the date on which a Grantee’s SAR would otherwise
      terminate, the Fair Market Value of shares of stock underlying a
      Grantee’s SAR is greater than the SAR Price, the Company shall, prior to
      the termination of such SAR and without any action being taken on the
      part of the Grantee, consider such SAR to have been exercised by the
      Grantee.
    

    
      9.4.      Rights of Holders of SARs.
    

    
      Unless otherwise stated in the applicable Award Agreement, a Grantee or
      other person holding or exercising a SAR shall have none of the rights
      of a shareholder of the Company (for example, the right to receive cash
      or dividend payments or distributions attributable to the shares of
      Stock subject to such SAR or to direct the voting of the shares of Stock
      subject to such SAR) until, if applicable, the shares of Stock subject
      thereby are fully paid and issued to such Grantee or other person.
      Except as provided in Section 17 , no adjustment shall be
      made for dividends, distributions, or other rights for which the record
      date is prior to the date of issuance of such shares of Stock, if
      applicable.
    

    
      9.5.      Transferability of SARs.
    

    
      Except as provided in Section 9.6 , during the lifetime of a
      Grantee of a SAR, only the Grantee (or, in the event of such Grantee’s
      legal incapacity or incompetency, the Grantee’s guardian or legal
      representative) may exercise such SAR. Except as provided in Section 9.6
      , no SAR shall be assignable or transferable by the Grantee to whom it
      is granted, other than by will or the laws of descent and distribution.
    

    
      9.6.      Family Transfers.
    

    
      If authorized in the applicable Award Agreement and by the Committee, in
      its sole discretion, a Grantee may transfer, not for value, all or part
      of a SAR to any Family Member. For the purpose of this Section 9.6
      , a “not for value” transfer is a transfer which is (i) a gift, (ii) a
      transfer under a domestic relations order in settlement of marital
      property rights; or (iii) unless Applicable Law does not permit such
      transfers, a transfer to an entity in which more than fifty percent
      (50%) of the voting interests are owned by Family Members (and/or the
      Grantee) in exchange for an interest in that entity. Following a
      transfer under this Section 9.6 , any such SAR shall
      continue to be subject to the same terms and conditions as were
      applicable immediately prior to transfer, and shares of Stock acquired
      pursuant to a SAR, if any, shall be subject to the same restrictions on
      transfer of shares as would have applied to the Grantee. Subsequent
      transfers of transferred SARs are prohibited except to Family Members of
      the original Grantee in accordance with this Section 9.6
      or by will or the laws of descent and distribution.
    

    
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      10.      TERMS AND CONDITIONS OF
      RESTRICTED STOCK, STOCK UNITS, AND DEFERRED STOCK UNITS
    

    
      10.1.   Grant of Restricted Stock, Stock Units, or Deferred Stock
      Units.
    

    
      Awards of Restricted Stock, Stock Units, and Deferred Stock Units may be
      made for consideration, such as a Purchase Price, or no consideration,
      other than par value of the shares of Stock, which may be deemed paid by
      past or future Services to the Company or an Affiliate.
    

    
      10.2.   Restrictions.
    

    
      At the time a grant of Restricted Stock, Stock Units, or Deferred Stock
      Units is made, the Committee may, in its sole discretion, (a) establish
      a Restricted Period applicable to such Restricted Stock, Stock Units, or
      Deferred Stock Units and (b) prescribe restrictions in addition to or
      other than the expiration of the Restricted Period, including the
      achievement of corporate or individual performance goals, which may be
      applicable to all or any portion of such Restricted Stock, Stock Units,
      or Deferred Stock Units as provided in Section 14 .
      Notwithstanding the foregoing, Awards of Restricted Stock, Stock Units,
      or Deferred Stock Units that vest solely by the passage of time shall
      not vest in full in less than three (3) years from the Grant Date and
      shall not vest pro-rata in less than one (1) year from the grant date,
      and Restricted Stock, Stock Units, and Deferred Stock Units that vest
      upon achievement of performance goals shall not vest in less than one
      (1) year from the Grant Date; provided, that (i) up to five
      percent (5%) of the maximum number of shares of Stock available for
      issuance under the Plan may be granted pursuant to the Plan without
      being subject to the foregoing restrictions, and (ii) any dividends or
      Dividend Equivalent Rights issued in connection with any Award granted
      at any time under the Plan shall not be subject to or counted for either
      such restrictions or such five percent (5%) share issuance limit. The
      foregoing five percent (5%) share issuance limit shall be subject to
      adjustment consistent with the adjustment provisions of Section 17.2
      and the share usage rules of Section 4.3 . Awards of Restricted
      Stock, Stock Units, and Deferred Stock Units may not be sold,
      transferred, assigned, pledged, or otherwise encumbered or disposed of
      during the Restricted Period or prior to the satisfaction of any other
      restrictions prescribed by the Committee with respect to such Awards.
    

    
      10.3.   Registration; Restricted Stock Certificates.
    

    
      Subject to Section 3.8 and the immediately following
      sentence, the Company may issue, in the name of each Grantee to whom
      Restricted Stock has been granted, certificates representing the total
      number of shares of Restricted Stock granted to the Grantee, as soon as
      reasonably practicable after the Grant Date of such Restricted Stock.
      The Committee may provide in an Award Agreement with respect to an Award
      of Restricted Stock that either (i) the Secretary of the Company shall
      hold such certificates for such Grantee’s benefit until such time as
      such shares of Restricted Stock are forfeited to the Company or the
      restrictions applicable thereto lapse and such Grantee shall deliver a
      stock power to the Company with respect to each certificate, or
      (ii) such certificates shall be delivered to such Grantee, provided that
      such certificates shall bear legends that comply with Applicable Laws
      and make appropriate reference to the restrictions imposed on such Award
      of Restricted Stock under the Plan and such Award Agreement. Pursuant to Section
      3.8 , to the extent that ownership of Restricted Stock is evidenced
      by a book-entry registration or direct registration (including
      transaction advices), such registration will contain an appropriate
      legend or restriction similar to the foregoing to evidence the
      restrictions imposed on such Award of Restricted Stock under the Plan
      and the applicable Award Agreement.
    

    
      10.4.   Rights of Holders of Restricted Stock.
    

    
      Unless the Committee provides otherwise in an Award Agreement and
      subject to the restrictions set forth in the Plan, any applicable
      Company program, and the applicable Award Agreement, holders of
      Restricted Stock shall have the right to vote such shares of Restricted
      Stock and the right to receive any dividend payments or distributions
      declared or paid with respect to such shares of Restricted Stock. The
      Committee may provide in an Award Agreement evidencing a grant of
      Restricted Stock that (i) any cash dividend payments or distributions
      paid on Restricted Stock shall be reinvested in shares of Stock, which
      may or may not be subject to the same vesting conditions and
      restrictions as applicable to such underlying shares of Restricted Stock
      or (ii) any dividend payments or distributions declared or paid on
      shares of Restricted Stock shall only be made or paid upon satisfaction
      of the vesting conditions and restrictions applicable to such shares of
      Restricted Stock. Dividend payments or distributions declared or paid on
      shares of Restricted Stock which vest or are earned based upon the
      achievement of performance goals shall not vest or be paid unless such
      performance goals for such shares of Restricted Stock are achieved.
      Alternatively, dividends may be paid on Restricted Stock which vests
      based on achievement of performance goals, provided that such
      dividends shall be subject to repayment in the event the performance
      goals for the underlying shares of Restricted Stock are not achieved.
      All stock dividend payments or distributions, if any, received by a
      Grantee with respect to shares of Restricted Stock as a result of any
      stock split, stock dividend, combination of stock, or other similar
      transaction shall be subject to the same vesting conditions and
      restrictions as applicable to such underlying shares of Restricted Stock.
    

    
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      10.5.   Rights of Holders of Stock Units and Deferred Stock Units.
    

    
      10.5.1.   Voting and Dividend Rights.
    

    
      Unless otherwise stated in the applicable Award Agreement, a Grantee or
      other person holding Stock Units or Deferred Stock Units shall have none
      of the rights of a shareholder of the Company (for example, the right to
      receive cash or dividend payments or distributions attributable to the
      shares of Stock subject to such Award or to direct the voting of the
      shares of Stock subject to such Award) until, if applicable, the shares
      of Stock subject thereby are fully paid and issued to such Grantee or
      other person. The Committee may provide in an Award Agreement evidencing
      a grant of Stock Units or Deferred Stock Units that the holder of such
      Stock Units or Deferred Stock Units, as applicable, shall be entitled to
      receive Dividend Equivalent Rights, in accordance with Section 13
      .
    

    
      10.5.2.   Creditor’s Rights.
    

    
      A holder of Stock Units or Deferred Stock Units shall have no rights
      other than those of a general, unsecured creditor of the Company. Stock
      Units and Deferred Stock Units represent unfunded and unsecured
      obligations of the Company, subject to the terms and conditions of the
      applicable Award Agreement.
    

    
      10.6.   Termination of Service.
    

    
      Unless the Committee provides otherwise in an Award Agreement, in
      another agreement with the Grantee, or otherwise in writing after the
      Award Agreement is issued , but prior to termination of the Grantee’s
      Service, upon the termination of a Grantee’s Service, any Restricted
      Stock, Stock Units, or Deferred Stock Units held by such Grantee that
      have not vested, or with respect to which all applicable restrictions
      and conditions have not lapsed, shall immediately be deemed forfeited.
      Upon forfeiture of such Restricted Stock, Stock Units, or Deferred Stock
      Units, the Grantee shall have no further rights with respect to such
      Award, including, without limitation, any right to vote such Restricted
      Stock or any right to receive dividends or Dividend Equivalent Rights,
      as applicable, with respect to such Restricted Stock, Stock Units, or
      Deferred Stock Units.
    

    
      10.7.   Purchase of Restricted Stock and Shares of Stock Subject to
      Stock Units and Deferred Stock Units.
    

    
      The Grantee of an Award of Restricted Stock, vested Stock Units, or
      vested Deferred Stock Units shall be required , to the extent required
      by Applicable Laws, to purchase such Restricted Stock or the shares of
      Stock subject to such vested Stock Units or Deferred Stock Units from
      the Company at a Purchase Price equal to the greater of (i) the
      aggregate par value of the shares of Stock represented by such
      Restricted Stock, vested Stock Units, or vested Deferred Stock Units, or
      (ii) the Purchase Price, if any, specified in the Award Agreement
      relating to such Restricted Stock, Stock Units, or Deferred Stock Units.
      The Purchase Price shall be payable in a form described in Section 12
      or, in the discretion of the Committee, in consideration for past or
      future Services rendered or to be rendered to the Company or an
      Affiliate.
    

    
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      10.8.   Delivery of Shares of Stock.
    

    
      Upon the expiration or termination of any Restricted Period and the
      satisfaction of any other conditions prescribed by the Committee,
      including, without limitation, any performance goals or delayed delivery
      period, the restrictions applicable to Restricted Stock and to Stock
      Units or Deferred Stock Units settled in shares of Stock shall lapse,
      and, unless otherwise provided in the applicable Award Agreement, a
      book-entry or direct registration (including transaction advices) or a
      certificate evidencing ownership of such shares of Stock shall,
      consistent with Section 3.8 , be issued, free of all such
      restrictions, to the Grantee thereof or such Grantee’s beneficiary or
      estate, as the case may be. Neither the Grantee, nor the Grantee’s
      beneficiary or estate, shall have any further rights with regard to a
      Stock Unit or Deferred Stock Unit once the shares of Stock represented
      by such Stock Unit or Deferred Stock Unit have been delivered in
      accordance with this Section 10.8 .
    

    
      11.     TERMS AND CONDITIONS OF
      UNRESTRICTED STOCK AWARDS AND OTHER EQUITY-BASED AWARDS
    

    
      11.1.   Unrestricted Stock.
    

    
      The Committee may, in its sole discretion, grant (or sell at the par
      value of a share of Stock or such other higher Purchase Price determined
      by the Committee) an Award to any Grantee pursuant to which such Grantee
      may receive shares of Unrestricted Stock under the Plan, subject to the
      five percent (5%) share issuance limit set forth in Section 10.2
      . Awards of Unrestricted Stock may be granted or sold as described in
      the preceding sentence in respect of past or future Services or other
      valid consideration, in lieu of or in addition to any cash compensation
      due to such Grantee.
    

    
      11.2.   Other Equity-Based Awards.
    

    
      The Committee may, in its sole discretion, grant Awards in the form of
      Other Equity-Based Awards, as deemed by the Committee to be consistent
      with the purposes of the Plan. Awards granted pursuant to this Section
      11.2 may be granted with vesting, value, and/or payment contingent
      upon the achievement of one or more performance goals. The Committee
      shall determine the terms and conditions of Other Equity-Based Awards on
      the Grant Date or thereafter. Unless the Committee provides otherwise in
      an Award Agreement, in another agreement with the Grantee, or otherwise
      in writing after the Award Agreement is issued , but prior to
      termination of Grantee’s Service, upon the termination of a Grantee’s
      Service, any Other Equity-Based Awards held by such Grantee that have
      not vested, or with respect to which all applicable restrictions and
      conditions have not lapsed, shall immediately be deemed forfeited. Upon
      forfeiture of any Other Equity-Based Award, the Grantee shall have no
      further rights with respect to such Other Equity-Based Award .
    

    
      12.      FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK
    

    
      12.1.   General Rule.
    

    
      Payment of the Option Price for the shares of Stock purchased pursuant
      to the exercise of an Option or the Purchase Price, if any, for
      Restricted Stock, vested Stock Units, or vested Deferred Stock Units
      shall be made in cash or in cash equivalents acceptable to the Company.
    

    
      12.2.   Surrender of Shares of Stock.
    

    
      To the extent the applicable Award Agreement so provides, payment of the
      Option Price for shares of Stock purchased pursuant to the exercise of
      an Option or the Purchase Price, if any, for Restricted Stock, vested
      Stock Units, or vested Deferred Stock Units may be made all or in part
      through the tender or attestation to the Company of shares of Stock,
      which shall be valued, for purposes of determining the extent to which
      the Option Price or Purchase Price has been paid thereby, at their Fair
      Market Value on the date of such tender or attestation.
    

    
      12.3.   Cashless Exercise.
    

    
      To the extent permitted by Applicable Laws and to the extent the Award
      Agreement so provides, payment of the Option Price for shares of Stock
      purchased pursuant to the exercise of an Option may be made all or in
      part by delivery (on a form acceptable to the Committee) of an
      irrevocable direction to a licensed securities broker acceptable to the
      Company to sell shares of Stock and to deliver all or part of the sales
      proceeds to the Company in payment of the Option Price and/or any
      withholding taxes described in Section 18.3 .
    

    
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      12.4.   Other Forms of Payment.
    

    
      To the extent the Award Agreement so provides and/or unless otherwise
      specified in an Award Agreement, payment of the Option Price for shares
      of Stock purchased pursuant to exercise of an Option or the Purchase
      Price, if any, for Restricted Stock, vested Stock Units, or vested
      Deferred Stock Units may be made in any other form that is consistent
      with Applicable Laws, including, without limitation, (i) with respect to
      Restricted Stock and/or vested Deferred Stock Units only, Service
      rendered or to be rendered by the Grantee thereof to the Company or an
      Affiliate and (ii) with the consent of the Company, by withholding the
      number of shares of Stock that would otherwise vest or be issuable in an
      amount equal in value to the Option Price or Purchase Price, if any,
      and/or any withholding taxes described in Section 18.3 .
    

    
      13.      TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS
    

    
      13.1.   Dividend Equivalent Rights.
    

    
      A Dividend Equivalent Right may be granted hereunder; provided
      that no Dividend Equivalent Right may be granted in connection with, or
      related to, an Award of Options or SARs. The terms and conditions of
      Dividend Equivalent Rights shall be specified in the Award Agreement
      therefor. Dividend equivalents credited to the holder of a Dividend
      Equivalent Right may be paid currently (with or without being subject to
      forfeiture or a repayment obligation) or may be deemed to be reinvested
      in additional shares of Stock or Awards, which may thereafter accrue
      additional Dividend Equivalent Rights (with or without being subject to
      forfeiture or a repayment obligation). Any such reinvestment shall be at
      the Fair Market Value on the date of such reinvestment. Dividend
      Equivalent Rights may be settled in cash, shares of Stock, or a
      combination thereof, in a single installment or in multiple
      installments, all as determined in the sole discretion of the Committee.
      A Dividend Equivalent Right granted as a component of another Award may
      (i) provide that such Dividend Equivalent Right shall be settled upon
      exercise, settlement, or payment of, or lapse of restrictions on, such
      other Award and that such Dividend Equivalent Right shall expire or be
      forfeited or annulled under the same conditions as such other Award or
      (ii) contain terms and conditions which are different from the terms and
      conditions of such other Award; provided , however , that
      Dividend Equivalent rights credited pursuant to a Dividend Equivalent
      Right granted as a component of another Award which vests or is earned
      based upon the achievement of performance goals shall not vest or be
      paid unless the performance goals for such underlying Award are achieved.
    

    
      13.2.   Termination of Service.
    

    
      Unless the Committee provides otherwise in an Award Agreement, in
      another agreement with the Grantee, or otherwise in writing after the
      Award Agreement is issued , a Grantee’s rights in all Dividend
      Equivalent Rights shall automatically terminate upon the Grantee’s
      termination of Service for any reason.
    

    
      14.      TERMS AND CONDITIONS OF PERFORMANCE AWARDS AND ANNUAL CASH
      PROFIT SHARES
    

    
      14.1.   Grant of Performance Awards and Annual Cash Profit Shares.
    

    
      Subject to the terms and provisions of this Plan, the Committee, at any
      time and from time to time, may grant Performance Awards and/or Annual
      Cash Profit Shares in such amounts and upon such terms as the Committee
      shall determine.
    

    
      14.2.   Value of Performance Awards and Annual Cash Profit Shares.
    

    
      Each Performance Award and Annual Cash Profit Share shall have an
      initial cash value or an actual or target number of shares of Stock that
      is established by the Committee as of the Grant Date. The Committee
      shall set performance goals in its discretion which, depending on the
      extent to which they are achieved, shall determine the value and/or
      number of shares of Stock that will be paid out to the Grantee thereof.
    

    
      14.3.   Earning of Performance Awards and Annual Cash Profit Shares.
    

    
      Subject to the terms of this Plan, after the applicable Performance
      Period has ended, the Grantee of Performance Awards or Annual Cash
      Profit Shares shall be entitled to receive a payout of the value earned
      under such Performance Awards or Annual Cash Profit Shares by such
      Grantee over the Performance Period, to be determined as a function of
      the extent to which the corresponding performance goals have been
      achieved.
    

    
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      14.4.   Form and Timing of Payment of Performance Awards and Annual
      Cash Profit Shares.
    

    
      Payment of the value earned under Performance Awards and Annual Cash
      Profit Shares shall be made, as determined by the Committee, in the
      form, at the time, and in the manner described in the applicable Award
      Agreement. Subject to the terms of this Plan, the Committee, in its sole
      discretion, (i) may pay the value earned under Performance Awards in the
      form of cash, shares of Stock, other Awards, or in a combination
      thereof, including shares of Stock and/or other Awards that are subject
      to any restrictions deemed appropriate by the Committee, and (ii) shall
      pay the value earned under Performance Awards and Annual Cash Profit
      Shares at the close of the applicable Performance Period, or as soon as
      reasonably practicable after the Committee has determined that the
      performance goal or goals relating thereto have been achieved; provided
      that, unless specifically provided in the Award Agreement, such payment
      shall occur no later than the fifteenth (15 th ) day of the
      third (3 rd ) month following the end of the calendar year in
      which the Performance Period ends.
    

    
      14.5.   Performance Conditions.
    

    
      The right of a Grantee to exercise or receive a grant or settlement of
      any Award, and the timing thereof, may be subject to such performance
      conditions as may be specified by the Committee. The Committee may use
      such business criteria and other measures of performance as it may deem
      appropriate in establishing any performance conditions. If and to the
      extent required under Code Section 162(m), any power or authority
      relating to an Award intended to qualify under Code Section 162(m) shall
      be exercised by the Committee and not the Board.
    

    
      14.6.   Performance Awards or Annual Cash Profit Shares Granted to
      Designated Covered Employees.
    

    
      If and to the extent that the Committee determines that a Performance
      Award or Annual Cash Profit Share to be granted to a Grantee who is
      designated by the Committee as likely to be a Covered Employee should
      constitute Qualified Performance-Based Compensation for purposes of Code
      Section 162(m), the grant, exercise, and/or settlement of such Award
      shall be contingent upon achievement of pre-established performance
      goals and other terms set forth in this Section 14.6 .
    

    
      14.6.1.    Performance Goals Generally.
    

    
      The performance goals for Performance Awards or Annual Cash Profit
      Shares shall consist of one or more business criteria and a targeted
      level or levels of performance with respect to each of such criteria, as
      specified by the Committee consistent with this Section 14.6
      . Performance goals shall be objective and shall otherwise meet the
      requirements of Code Section 162(m) including the requirement that the
      level or levels of performance targeted by the Committee result in the
      achievement of performance goals being “substantially uncertain.” The
      Committee may determine that such Awards shall be granted, exercised,
      and/or settled upon achievement of any single performance goal or of two
      (2) or more performance goals. Performance goals may differ for Awards
      granted to any one Grantee or to different Grantees.
    

    
      14.6.2.    Timing For Establishing Performance Goals.
    

    
      Performance goals shall be established not later than the earlier of (i)
      ninety (90) days after the beginning of any Performance Period
      applicable to such Awards and (ii) the date on which twenty-five percent
      (25%) of any Performance Period applicable to such Awards has expired,
      or at such other date as may be required or permitted for compensation
      paid to a Covered Employee to constitute Performance-Based Compensation.
    

    
      14.6.3.    Settlement of Awards; Other Terms.
    

    
      Settlement of such Awards shall be in cash, shares of Stock, other
      Awards, or a combination thereof, including shares of Stock and/or
      Awards that are subject to any restrictions deemed appropriate by the
      Committee, in each case as determined in the sole discretion of the
      Committee. The Committee may, in its sole discretion, reduce the amount
      of a settlement otherwise to be made in connection with such Awards. The
      Committee shall specify the circumstances in which such Performance
      Awards or Annual Cash Profit Shares shall be paid or forfeited in the
      event of termination of Service by the Grantee prior to the end of a
      Performance Period or settlement of such Awards. In the event payment of
      a Performance Award is made in the form of another Award subject to
      Service-based vesting, the Committee shall specify the circumstances in
      which the payment Award will be paid or forfeited in the event of a
      termination of Service.
    

    
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      14.6.4.    Performance Measures.
    

    
      The performance goals upon which the payment or vesting of a Performance
      Award or Annual Cash Profit Share to a Covered Employee that is intended
      to constitute Qualified Performance-Based Compensation may be
      conditioned shall be limited to the following Performance Measures, with
      or without adjustment (including pro forma adjustments):
    

    
      (a)       net earnings or net income;
    

    
      (b)      operating earnings;
    

    
      (c)       pretax earnings;
    

    
      (d)      earnings per share of Stock;
    

    
      (e)       total shareholder return;
    

    
      (f)       earnings before interest and taxes;
    

    
      (g)      earnings before interest, taxes, depreciation and/or
      amortization;
    

    
      (h)       earnings before interest, taxes, depreciation, and/or
      amortization as adjusted to exclude any one or more of the following:
    

    
      •          stock-based compensation expense;
    

    
      •          income from discontinued operations;
    

    
      •          gain on cancellation of debt;
    

    
      •          debt extinguishment and related costs;
    

    
      •          restructuring, separation, and/or integration charges and
      costs;
    

    
      •          reorganization and/or recapitalization charges and costs;
    

    
      •          impairment charges;
    

    
      •          merger-related events;
    

    
      •          gain or loss related to investments;
    

    
      •          sales and use tax settlements; and
    

    
      •          gain on non-monetary transactions;
    

    
      (i)        revenue growth or targets;
    

    
      (j)        gross or operating margins;
    

    
      (k)       return measures, including return on assets, capital or
      investment;
    

    
      (l)        cash flow, including:
    

    
      •          operating cash flow;
    

    
      •          free cash flow;
    

    
      •          levered free cash flow;
    

    
      •          cash flow return on equity; and
    

    
      •          cash flow return on investment;
    

    
      (m)     productivity ratios;
    

    
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      (n)       costs, reductions in costs, and cost control measures;
    

    
      (o)      expense targets;
    

    
      (p)      working capital targets;
    

    
      (q)      completion of acquisitions of businesses or companies;
    

    
      (r)        development of new lines of business or substantially
      expanding existing lines of business;
    

    
      (s)       completion of divestitures and asset sales;
    

    
      (t)        employee hiring, retention, and diversity;
    

    
      (u)       employee or customer satisfaction measurements;
    

    
      (v)       execution of contractual arrangements or satisfaction of
      contractual requirements or milestones;
    

    
      (w)      ratio of debt to stockholders’ equity;
    

    
      (x)       new campuses opened;
    

    
      (y)       regulatory approvals to operate in new states;
    

    
      (z)       maintenance of regional accreditation;
    

    
      (aa)    compliance with Title IV regulations;
    

    
      (bb)    sound financial, budgeting and operational practices;
    

    
      (cc)    faculty hiring and development;
    

    
      (dd)    curriculum and degree program development;
    

    
      (ee)    student academic performance;
    

    
      (ff)      information systems and technology;
    

    
      (gg)    recruitment of foreign students;
    

    
      (hh)    corporate partnerships and community college relations;
    

    
      (ii)       any combination of any of the foregoing business criteria.
    

    
      None of the foregoing, either at all or for particular periods, will be
      applied or interpreted to provide any commission, bonus, or other
      incentive payment based directly or indirectly upon success in securing
      enrollments or financial aid to any person or entity engaged in any
      student recruiting or admission activities or in making decisions
      regarding the awarding of funds under Title IV of the Higher Education
      Act, except as permitted by Applicable Law.
    

    
      Performance under any of the foregoing Performance Measures (i) may be
      used to measure the performance of (x) the Company, its Subsidiaries,
      and other Affiliates as a whole, (y) the Company, any Subsidiary, any
      other Affiliate, or any combination thereof, or (z) any one or more
      business units or operating segments of the Company, any Subsidiary,
      and/or any other Affiliate, in each case as the Committee, in its sole
      discretion, deems appropriate and (ii) may be compared to the
      performance of one or more other companies or one or more published or
      special indices designated or approved by the Committee for such
      comparison, as the Committee, in its sole discretion, deems appropriate.
      In addition, the Committee, in its sole discretion, may select
      performance under the Performance Measure specified in clause (e) above
      for comparison to performance under one or more stock market indices
      designated or approved by the Committee. The Committee shall also have
      the authority to provide for accelerated vesting of any Performance
      Award or Annual Cash Profit Share based on the achievement of
      performance goals pursuant to the Performance Measures specified in this Section 14
      .
    

    
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      14.6.5.    Evaluation of Performance.
    

    
      The Committee may provide in any Performance Award or Annual Cash Profit
      Share that any evaluation of performance may include or exclude any of
      the following events that occur during a Performance Period: (i) asset
      write-downs; (ii) litigation or claims, judgments, or settlements;
      (iii) the effect of changes in tax laws, accounting principles, or other
      laws or provisions affecting reported results; (iv) any reorganization
      or restructuring events or programs; (v) extraordinary, non-core,
      non-operating, or non-recurring items; (vi) acquisitions or
      divestitures; (vii) foreign exchange gains and losses; (viii) impact of
      shares of Stock purchased through share repurchase programs; (ix) tax
      valuation allowance reversals; (x) impairment expense; and (xi)
      environmental expense. To the extent such inclusions or exclusions
      affect Awards to Covered Employees that are intended to qualify as
      Performance-Based Compensation, such inclusions or exclusions shall be
      prescribed in a form that meets the requirements of Code Section 162(m)
      for deductibility.
    

    
      14.6.6.    Adjustment of Performance-Based Compensation.
    

    
      The Committee shall have the sole discretion to adjust Awards that are
      intended to qualify as Performance-Based Compensation, either on a
      formula or discretionary basis, or on any combination thereof, as the
      Committee determines consistent with the requirements of Code
      Section 162(m) for deductibility.
    

    
      14.6.7.    Committee Discretion.
    

    
      In the event that Applicable Laws change to permit Committee discretion
      to alter the governing Performance Measures without obtaining
      shareholder approval of such changes, the Committee shall have sole
      discretion to make such changes without obtaining shareholder approval,
      provided that the exercise of such discretion shall not be inconsistent
      with the requirements of Code Section 162(m). In addition, in the event
      that the Committee determines that it is advisable to grant Awards that
      shall not qualify as Performance-Based Compensation, the Committee may
      make such grants without satisfying the requirements of Code
      Section 162(m) and base vesting on Performance Measures other than those
      set forth in Section 14.6.4 .
    

    
      14.7.   Status of Awards Under Code Section 162(m).
    

    
      It is the intent of the Company that Awards under Section 14.6
      granted to Grantees who are designated by the Committee as likely to be
      Covered Employees shall, if so designated by the Committee, constitute
      Qualified Performance-Based Compensation within the meaning of Code
      Section 162(m). Accordingly, the terms of Section 14.6 ,
      including the definitions of Covered Employee and other terms used
      therein, shall be interpreted in a manner consistent with Code Section
      162(m). The foregoing notwithstanding, because the Committee cannot
      determine with certainty whether a given Grantee will be a Covered
      Employee with respect to a fiscal year that has not yet been completed,
      the term Covered Employee as used herein shall mean only a Grantee
      designated by the Committee, as of the Grant Date of an Award, as likely
      to be a Covered Employee with respect to that fiscal year. If any
      provision of the Plan, the applicable Award Agreement, or any other
      agreement relating to such Awards does not comply or is inconsistent
      with the requirements of Code Section 162(m), such provision shall be
      construed or deemed amended to the extent necessary to conform to such
      requirements.
    

    
      15.      PARACHUTE LIMITATIONS
    

    
      If any Grantee is a “disqualified individual,” as defined in Code
      Section 280G(c), then, notwithstanding any other provision of the Plan
      or of any other agreement, contract, or understanding heretofore or
      hereafter entered into by such Grantee with the Company or an Affiliate,
      except an agreement, contract, or understanding that expressly addresses
      Code Section 280G or Code Section 4999 (an “ Other Agreement
      ”), and notwithstanding any formal or informal plan or other arrangement
      for the direct or indirect provision of compensation to the Grantee
      (including groups or classes of Grantees or beneficiaries of which the
      Grantee is a member), whether or not such compensation is deferred, is
      in cash, or is in the form of a benefit to or for the Grantee (a “ Benefit
      Arrangement ”), any right of the Grantee to any exercise, vesting,
      payment or benefit under the Plan shall be reduced or eliminated:
    

    
      (a)        to the extent that such right to exercise, vesting, payment,
      or benefit, taking into account all other rights, payments, or benefits
      to or for the Grantee under the Plan, all Other Agreements, and all
      Benefit Arrangements, would cause any exercise, vesting, payment, or
      benefit to the Grantee under the Plan to be considered a “parachute
      payment” within the meaning of Code Section 280G(b)(2) as then in effect
      (a “ Parachute Payment ”); and
    

    
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      (b)        if, as a result of receiving such Parachute Payment, the
      aggregate after-tax amounts received by the Grantee from the Company
      under the Plan, all Other Agreements, and all Benefit Arrangements would
      be less than the maximum after-tax amount that could be received by the
      Grantee without causing any such payment or benefit to be considered a
      Parachute Payment.
    

    
      The Company shall accomplish such reduction by first reducing or
      eliminating any cash payments (with the payments to be made furthest in
      the future being reduced first), then by reducing or eliminating any
      accelerated vesting of Performance Awards, then by reducing or
      eliminating any accelerated vesting of Options or SARs, then by reducing
      or eliminating any accelerated vesting of Restricted Stock or Deferred
      Stock Units, then by reducing or eliminating any other remaining
      Parachute Payments.
    

    
      16.      REQUIREMENTS OF LAW
    

    
      16.1.   General.
    

    
      The Company shall not be required to offer, sell, or issue any shares of
      Stock under any Award, whether pursuant to the exercise of an Option, a
      SAR, or otherwise, if the offer, sale, or issuance of such shares of
      Stock would constitute a violation by the Grantee, the Company, an
      Affiliate, or any other person of any provision of the Company’s
      certificate of incorporation or bylaws or of Applicable Laws, including
      any federal or state securities laws or regulations. If at any time the
      Company shall determine, in its discretion, that the listing,
      registration, or qualification of any shares of Stock subject to an
      Award upon any Stock Exchange or Securities Market or under any
      governmental regulatory body is necessary or desirable as a condition
      of, or in connection with, the offering, sale, issuance, or purchase of
      shares of Stock in connection with any Award, no shares of Stock may be
      offered, sold, or issued to the Grantee or any other person under such
      Award, whether pursuant to the exercise of an Option, a SAR, or
      otherwise, unless such listing, registration, or qualification shall
      have been effected or obtained free of any conditions not acceptable to
      the Company, and any delay caused thereby shall in no way affect the
      date of termination of such Award. Without limiting the generality of
      the foregoing, upon the exercise of any Option or any SAR that may be
      settled in shares of Stock or the delivery of any shares of Stock
      underlying an Award, unless a registration statement under the
      Securities Act is in effect with respect to the shares of Stock subject
      to such Award, the Company shall not be required to offer, sell, or
      issue such shares of Stock unless the Committee shall have received
      evidence satisfactory to it that the Grantee or any other person
      exercising such Option or SAR or accepting delivery of such shares may
      acquire such shares of Stock pursuant to an exemption from registration
      under the Securities Act. Any determination by the Committee in
      connection with the foregoing shall be final, binding, and conclusive.
      The Company may register, but shall in no event be obligated to
      register, any shares of Stock or other securities issuable pursuant to
      the Plan pursuant to the Securities Act. The Company shall not be
      obligated to take any affirmative action in order to cause the exercise
      of an Option or a SAR or the issuance of shares of Stock or other
      securities issuable pursuant to the Plan or any Award to comply with any
      Applicable Laws. As to any jurisdiction that expressly imposes the
      requirement that an Option or SAR that may be settled in shares of Stock
      shall not be exercisable until the shares of Stock subject to such
      Option or SAR are registered under the securities laws thereof or are
      exempt from such registration, the exercise of such Option or SAR under
      circumstances in which the laws of such jurisdiction apply shall be
      deemed conditioned upon the effectiveness of such registration or the
      availability of such an exemption.
    

    
      16.2.   Rule 16b-3.
    

    
      During any time when the Company has any class of equity security
      registered under Section 12 of the Exchange Act, it is the intent of the
      Company that Awards pursuant to the Plan and the exercise of Options and
      SARs granted hereunder that would otherwise be subject to Section 16(b)
      of the Exchange Act shall qualify for the exemption provided by Rule
      16b-3 under the Exchange Act. To the extent that any provision of the
      Plan or action by the Board or the Committee does not comply with the
      requirements of Rule 16b-3, it shall be deemed inoperative with respect
      to such Awards to the extent permitted by law and deemed advisable by
      the Board or Committee, and shall not affect the validity of the Plan.
      In the event that Rule 16b-3 is revised or replaced, the Committee may
      exercise its discretion to modify this Plan in any respect necessary or
      advisable in its judgment to satisfy the requirements of, or to permit
      the Company to avail itself of the benefits of, the revised exemption or
      its replacement.
    

    
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      17.      EFFECT OF CHANGES IN CAPITALIZATION
    

    
      17.1.   Changes in Stock.
    

    
      If the number of outstanding shares of Stock is increased or decreased
      or the shares of Stock are changed into or exchanged for a different
      number of share or kind of capital stock or other securities of the
      Company on account of any recapitalization, reclassification, stock
      split, reverse stock split, spin-off, combination of stock, exchange of
      stock, stock dividend or other distribution payable in capital stock, or
      other increase or decrease in such Stock effected without receipt of
      consideration by the Company occurring after the Amendment Date, the
      number and kinds of shares of capital stock for which grants of Options
      and other Awards may be made under the Plan, including, without
      limitation, the Share Limit set forth in Section 4.1 and the
      individual limits set forth in Section 6.2 , shall be
      adjusted proportionately and accordingly by the Committee. In addition,
      the number and kind of shares of capital stock for which Awards are
      outstanding shall be adjusted proportionately and accordingly by the
      Committee so that the proportionate interest of the Grantee immediately
      following such event shall, to the extent practicable, be the same as
      immediately before such event. Any such adjustment in outstanding
      Options or SARs shall not change the aggregate Option Price or SAR Price
      payable with respect to shares that are subject to the unexercised
      portion of an outstanding Option or SAR, as applicable, but shall
      include a corresponding proportionate adjustment in the per share Option
      Price or SAR Price, as applicable. The conversion of any convertible
      securities of the Company shall not be treated as an increase in shares
      effected without receipt of consideration. Notwithstanding the
      foregoing, in the event of any distribution to the Company’s
      shareholders of securities of any other entity or other assets
      (including an extraordinary dividend, but excluding a non-extraordinary
      dividend, declared and paid by the Company) without receipt of
      consideration by the Company, the Board or the Committee shall, in such
      manner as the Board or the Committee deems appropriate, adjust (i) the
      number and kind of shares of capital stock subject to outstanding Awards
      and/or (ii) the aggregate and per share Option Price of outstanding
      Options and the aggregate and per share SAR Price of outstanding Stock
      Appreciation Rights, as applicable, to reflect such distribution.
    

    
      17.2.   Reorganization in Which the Company Is the Surviving Entity
      Which Does not Constitute a Change in Control.
    

    
      Subject to Section 17.3 , if the Company shall be the
      surviving entity in any reorganization, merger, or consolidation of the
      Company with one or more other entities which does not constitute a
      Change in Control, any Award theretofore granted pursuant to the Plan
      shall pertain to and apply to the securities to which a holder of the
      number of shares of Stock subject to such Award would have been entitled
      immediately following such reorganization, merger, or consolidation,
      with a corresponding proportionate adjustment of the per share Option
      Price and SAR Price so that the aggregate Option Price or SAR Price
      thereafter shall be the same as the aggregate Option Price or SAR Price
      of the shares of Stock remaining subject to the Option or SAR
      immediately prior to such reorganization, merger, or consolidation.
      Subject to any contrary language in an Award Agreement, in another
      agreement with the Grantee, or as otherwise set forth in writing, any
      restrictions applicable to such Award shall apply as well to any
      replacement shares subject to such Award or received by the Grantee as a
      result of the reorganization, merger, or consolidation. In the event of
      a transaction described in this Section 17.2 , Performance
      Awards shall be adjusted (including any adjustment to the Performance
      Measures applicable to such Awards deemed appropriate by the Committee)
      so as to apply to the securities that a holder of the number of shares
      of Stock subject to the Performance Awards would have been entitled to
      receive immediately following such reorganization, merger, or
      consolidation .
    

    
      17.3.   Change in Control in which Awards are not Assumed.
    

    
      Except as otherwise provided in the applicable Award Agreement, in
      another agreement with the Grantee, or as otherwise set forth in
      writing, upon the occurrence of a Change in Control in which outstanding
      Awards are not being assumed or continued, the following provisions
      shall apply to such Award, to the extent not assumed or continued:
    

    
      (i) Immediately prior to the occurrence of such Change in Control, in
      each case with the exception of any Performance Award, all outstanding
      shares of Restricted Stock and all Stock Units, Deferred Stock Units,
      and Dividend Equivalent Rights shall be deemed to have vested, and all
      shares of Stock and/or cash subject to such Awards shall be delivered;
      and
    

    
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      (ii) Either of the following two (2) actions shall be taken:
    

    
      (a) At least fifteen (15) days prior to the scheduled consummation of
      such Change in Control, all Options and SARs outstanding hereunder shall
      become immediately exercisable and shall remain exercisable for a period
      of fifteen (15) days. Any exercise of an Option or SAR during this
      fifteen (15)-day period shall be conditioned upon the consummation of
      the Change in Control and shall be effective only immediately before the
      consummation thereof, and upon consummation of such Change in Control,
      the Plan and all outstanding but unexercised Options and SARs shall
      terminate, with or without consideration (including, without limitation,
      consideration in accordance with clause (b) below) as determined by the
      Committee in its sole discretion. The Committee shall send notice of an
      event that shall result in such a termination to all persons who hold
      Options and SARs not later than the time at which the Company gives
      notice thereof to its shareholders.
    

    
      or
    

    
      (b) The Committee may elect, in its sole discretion, to cancel any
      outstanding Awards of Options, SARs, Restricted Stock, Stock Units,
      Deferred Stock Units, and/or Dividend Equivalent Rights and pay or
      deliver, or cause to be paid or delivered, to the holder thereof an
      amount in cash or securities having a value (as determined by the
      Committee acting in good faith), in the case of Restricted Stock, Stock
      Units, Deferred Stock Units, and Dividend Equivalent Rights (for shares
      of Stock subject thereto), equal to the formula or fixed price per share
      paid to holders of shares of Stock pursuant to such Change in Control
      and, in the case of Options or SARs, equal to the product of the number
      of shares of Stock subject to the Option or SAR, multiplied by the
      amount, if any, by which (I) the formula or fixed price per share paid
      to holders of shares of Stock pursuant to such transaction exceeds (II)
      the Option Price or SAR Price applicable to such Options or SARs.
    

    
      (iii) For Performance Awards, i f less than half of the Performance
      Period has lapsed, such Award s shall be treated as though target
      performance has been achieved. If at least half of the Performance
      Period has lapsed, actual performance to date shall be determined as of
      a date reasonably proximal to the date of consummation of the Change in
      Control as determined by the Committee in its sole discretion, and that
      level of performance thus determined shall be treated as achieved
      immediately prior to occurrence of the Change in Control. For purposes
      of the preceding sentence, if, based on the discretion of the Committee,
      actual performance is not determinable, the Performance Awards shall be
      treated as though target performance has been achieved. After
      application of this Section 17.3(iii) , if any Awards arise from
      application of this Section 17 , such Awards shall be settled
      under the applicable provision of Section 17.3(i) and (ii)
      .
    

    
      (iv) Other-Equity Based Awards shall be governed by the terms of the
      applicable Award Agreement.
    

    
      With respect to the Company’s establishment of an exercise window, (i)
      any exercise of an Option or SAR during such fifteen (15)-day period
      shall be conditioned upon the consummation of the event and shall be
      effective only immediately before the consummation of the event, and
      (ii) upon consummation of any Change in Control, the Plan and all
      outstanding but unexercised Options and SARs shall terminate. The Board
      shall send notice of an event that will result in such a termination to
      all individuals and entities who hold Options and SARs not later than
      the time at which the Company gives notice thereof to its shareholders.
    

    
      17.4.   Change in Control in which Awards are Assumed.
    

    
      Except as otherwise provided in the applicable Award Agreement, in
      another agreement with the Grantee, or as otherwise set forth in
      writing, upon the occurrence of a Change in Control in which outstanding
      Awards are being assumed or continued, the following provisions shall
      apply to such Award, to the extent assumed or continued:
    

    
      The Plan, Options, SARs, Restricted Stock, Stock Units, Deferred Stock
      Units, Dividend Equivalent Rights, and Other Equity-Based Awards
      theretofore granted under the Plan shall continue in the manner and
      under the terms so provided in the event of any Change in Control to the
      extent that provision is made in writing in connection with such Change
      in Control for the assumption or continuation of such Awards theretofore
      granted, or for the substitution for such Awards for new stock options,
      stock appreciation rights, restricted stock, deferred stock units,
      unrestricted stock, dividend equivalent rights, and other equity-based
      awards relating to the capital stock of a successor entity, or a parent
      or subsidiary thereof, with appropriate adjustments as to the number of
      shares (disregarding any consideration that is not common stock) and
      exercise prices of options and stock appreciation rights. In the event a
      Grantee’s Award is assumed, continued or substituted upon the
      consummation of any Change in Control and his employment is terminated
      without Cause within six (6) months following the consummation of such
      Change in Control, the Grantee’s Award will be fully vested and may be
      exercised in full, to the extent applicable, beginning on the date of
      such termination and for the one (1)-year period immediately following
      such termination or for such longer period as the Committee shall
      determine.
    

    
      A-24
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
      17.5.   Adjustments
    

    
      Adjustments under this Section 17 related to shares of Stock
      or other securities of the Company shall be made by the Committee, whose
      determination in that respect shall be final, binding and conclusive. No
      fractional shares or other securities shall be issued pursuant to any
      such adjustment, and any fractions resulting from any such adjustment
      shall be eliminated in each case by rounding downward to the nearest
      whole share. The Committee may provide in the Award Agreement as of the
      Grant Date, in another agreement with the Grantee, or otherwise in
      writing at any time thereafter with the consent of the Grantee, for
      different provisions to apply to an Award in place of those described in Sections 17.1,
      17.2, 17.3 and 17.4 . This Section 17
      shall not limit the Committee’s ability to provide for alternative
      treatment of Awards outstanding under the Plan in the event of change in
      control events involving the Company that are not a Change in Control
      hereunder.
    

    
      17.6.   No Limitations on Company.
    

    
      The making of Awards pursuant to the Plan shall not affect or limit in
      any way the right or power of the Company to make adjustments,
      reclassifications, reorganizations, or changes of its capital or
      business structure or to merge, consolidate, dissolve, or liquidate, or
      to sell or transfer all or any part of its business or assets (including
      all or any part of the business or assets of any Subsidiary or other
      Affiliate) or to engage in any other transaction or activity .
    

    
      18.      GENERAL PROVISIONS
    

    
      18.1.   Disclaimer of Rights.
    

    
      No provision in the Plan, any Award, or any Award Agreement shall be
      construed (i) to confer upon any person the right to remain in the
      Service of the Company or an Affiliate, (ii) to interfere in any way
      with any contractual or other right or authority of the Company or an
      Affiliate either to increase or decrease the compensation or other
      payments to any person at any time, or (iii) to terminate any Service or
      other relationship between any Person and the Company or an Affiliate.
      In addition, notwithstanding any provision of the plan to the contrary,
      unless otherwise stated in the applicable Award Agreement, in another
      agreement with the Grantee, or otherwise in writing, no Award granted
      under the Plan shall be affected by any change of duties or position of
      the Grantee, so long as such Grantee continues to provide Service. The
      obligation of the Company to pay any benefits pursuant to this Plan
      shall be interpreted as a contractual obligation to pay only those
      amounts described herein, in the manner and under the conditions
      prescribed herein. The Plan and Awards shall in no way be interpreted to
      require the Company to transfer any amounts to a third party trustee or
      otherwise hold any amounts in trust or escrow for payment to any Grantee
      or beneficiary under the terms of the Plan.
    

    
      18.2.   Nonexclusivity of the Plan.
    

    
      Neither the adoption of the Plan nor the submission of the Plan to the
      shareholders of the Company for approval shall be construed as creating
      any limitations upon the right and authority of the Board or the
      Committee to adopt such other incentive compensation arrangements (which
      arrangements may be applicable either generally to a class or classes of
      individuals or specifically to a particular individual or particular
      individuals) as the Board or the Committee in their discretion
      determines desirable.
    

    
      18.3.   Withholding Taxes.
    

    
      The Company or an Affiliate, as the case may be, shall have the right to
      deduct from payments of any kind otherwise due to a Grantee any federal,
      state, or local taxes of any kind required by Applicable Law to be
      withheld with respect to the vesting of or other lapse of restrictions
      applicable to an Award or the issuance of any shares of Stock or cash
      upon the exercise of, settlement of, or otherwise with respect to, an
      Award. At the time of such vesting, lapse, exercise, settlement, or
      other payment, the Grantee shall pay in cash to the Company or such
      Affiliate, as the case may be, any amount that the Company or such
      Affiliate may reasonably determine to be necessary to satisfy such
      withholding obligation; provided , however , that if there
      is a same day sale of shares of Stock subject to an Award, the Grantee
      shall pay such withholding obligation on the day that the same day sale
      is completed. Subject to the prior approval of the Company or an
      Affiliate, which may be withheld by the Company or such Affiliate, as
      the case may be, in its sole discretion, the Grantee may elect to
      satisfy such withholding obligations, in whole or in part, (i) by
      causing the Company or an Affiliate to withhold shares of Stock
      otherwise issuable to the Grantee or (ii) by delivering to the Company
      or an Affiliate shares of Stock already owned by the Grantee. The shares
      of Stock so delivered or withheld shall have an aggregate Fair Market
      Value equal to such withholding obligations. The Fair Market Value of
      the shares of Stock used to satisfy such withholding obligations shall
      be determined by the Company or an Affiliate as of the date on which the
      amount of tax to be withheld is to be determined. A Grantee who has made
      an election pursuant to this Section 18.3 may satisfy his or
      her withholding obligations only with shares of Stock that are not
      subject to any repurchase, forfeiture, unfulfilled vesting, or other
      similar requirements. The maximum number of shares of Stock that may be
      withheld from any Award to satisfy any federal, state, or local tax
      withholding requirements upon the exercise, vesting, lapse of
      restrictions applicable to such Award, or payment of shares of Stock
      pursuant to such Award, as applicable, cannot exceed such number of
      shares of Stock having a Fair Market Value equal to the minimum
      statutory amount required by the Company or an Affiliate to be withheld
      and paid to any such federal, state, or local taxing authority with
      respect to such vesting, lapse, exercise, settlement, or other payment.
    

    
      A-25
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
      18.4.   Captions.
    

    
      The use of captions in this Plan or any Award Agreement is for
      convenience of reference only and shall not affect the meaning of any
      provision of the Plan or such Award Agreement.
    

    
      18.5.   Other Provisions.
    

    
      Each Award granted under the Plan may contain such other terms and
      conditions not inconsistent with the Plan as may be determined by the
      Committee, in its sole discretion.
    

    
      18.6.   Number and Gender.
    

    
      With respect to words used in this Plan, the singular form shall include
      the plural form, the masculine gender shall include the feminine gender,
      etc., as the context requires.
    

    
      18.7.   Severability.
    

    
      If any provision of the Plan or any Award Agreement shall be determined
      to be illegal or unenforceable by any court of law in any jurisdiction,
      the remaining provisions hereof and thereof shall be severable and
      enforceable in accordance with their terms, and all provisions shall
      remain enforceable in any other jurisdiction.
    

    
      18.8.   Governing Law
    

    
      The validity and construction of this Plan and the instruments
      evidencing the Awards hereunder shall be governed by, and construed and
      interpreted in accordance with, the laws of the State of Maryland, other
      than any conflicts or choice of law rule or principle that might
      otherwise refer construction or interpretation of this Plan and the
      instruments evidencing the Awards granted hereunder to the substantive
      laws of any other jurisdiction.
    

    
      18.9.   Section 409A of the Code.
    

    
      The Plan is intended to comply with Code Section 409A to the extent
      subject thereto, and, accordingly, to the maximum extent permitted, the
      Plan will be interpreted and administered to be in compliance with Code
      Section 409A. Any payments described in the Plan that are due within the
      Short-Term Deferral Period will not be treated as deferred compensation
      unless Applicable Laws require otherwise. Notwithstanding any provision
      of the Plan to the contrary, to the extent required to avoid accelerated
      taxation and tax penalties under Code Section 409A, amounts that would
      otherwise be payable and benefits that would otherwise be provided
      pursuant to the Plan during the six (6)-month period immediately
      following the Grantee’s Separation from Service will instead be paid on
      the first payroll date after the six (6)-month anniversary of the
      Grantee’s Separation from Service (or the Grantee’s death, if earlier).
    

    
      A-26
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
      Furthermore, notwithstanding anything in the Plan to the contrary, in
      the case of an Award that is characterized as deferred compensation
      under Code Section 409A, and pursuant to which settlement and delivery
      of the cash or shares of Stock subject to the Award is triggered based
      on a Change in Control, in no event will a Change in Control be deemed
      to have occurred for purposes of such settlement and delivery of cash or
      shares of Stock if the transaction is not also a “change in the
      ownership or effective control of” the Company or “a change in the
      ownership of a substantial portion of the assets of” the Company as
      determined under Treasury Regulation Section 1.409A-3(i)(5) (without
      regard to any alternative definition thereunder). If an Award
      characterized as deferred compensation under Code Section 409A is not
      settled and delivered on account of the provision of the preceding
      sentence, the settlement and delivery shall occur on the next succeeding
      settlement and delivery triggering event that is a permissible
      triggering event under Code Section 409A. No provision of this paragraph
      shall in any way affect the determination of a Change in Control for
      purposes of vesting in an Award that is characterized as deferred
      compensation under Code Section 409A.
    

    
      Notwithstanding the foregoing, neither the Company nor the Committee
      will have any obligation to take any action to prevent the assessment of
      any excise tax or penalty on any Grantee under Code Section 409A, and
      neither the Company or an Affiliate nor the Board or the Committee will
      have any liability to any Grantee for such tax or penalty.
    

    
      *    *    *
    

    
      A-27
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
      To record adoption of this amended and restated Plan by the Board as of
      February 4, 2015, and approval of this amended and restated Plan by the
      shareholders on May 5, 2015, the Company has caused its authorized
      officer to execute the Plan.
    

    

    

    	
           
        	
          STRAYER EDUCATION, INC.
        
	

        	
          By:
        	
          /s/ Viet D. Dinh
        
	

        	
          Title:
        	
          General Counsel and Secretary
        

    

    
      Signature Page to the Strayer Education, Inc. 2015 Equity
      Compensation PlanExhibit 10.1 Amendment to the Loan Agreement with Bank of America

Exhibit 10.1

AMENDED AND RESTATED LOAN AGREEMENT

THIS AMENDED AND RESTATED LOAN AGREEMENT dated as of April 30, 2015,
is by and between IPG PHOTONICS CORPORATION, a Delaware corporation with a principal place of business at 50 Old Webster Road, Oxford, Massachusetts 01540 (the "Borrower") and BANK OF AMERICA, N.A., a national banking association with an office at 100 Federal Street, Boston, Massachusetts  02110 (the "Bank").

W I T N E S S E T H:

BACKGROUND. The Borrower has requested the Bank to amend and  restate  its existing Loan Agreement dated as of June 4, 2008 (as amended by First Amendment to Loan and Security Agreement dated as of February 25, 2010, Second Amendment to Loan and Security Agreement dated as of September 30, 2010, Agreement dated as of February 6, 2013 and the Letter Agreement dated as of October 10, 2014) with the Bank by increasing the amount of Revolving Credit available thereunder and modifying certain terms applicable thereto and the Bank is willing to do so upon the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the premises herein contained, and each intending to be legally bound hereby, the parties agree as follows:

ARTICLE 1.0 DEFINITIONS

As used herein:

"Affiliate" means, as to any Person, each other Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or under common control with, such Person.

"Agreement" means this Amended and Restated Loan Agreement (together with any and all schedules and exhibits attached from time to time hereto), as the same may from time to time be amended or supplemented in a writing signed by the parties hereto.

"Aircraft Loan" means the secured aircraft loan of up to $22,000,000.00 furnished by Banc of America Leasing & Capital, LLC for the purchase by an Affiliate  of the Borrower of a 2010 Dassault Falcon 2000LX.

"Automatic   Payments   Deposit   Account"  means  the  Borrower's   operating  account   number 004605294929 established with the Bank, from which Automatic Payments may be deducted by the Bank.

"Automatic Payments" means any and all interest or principal and interest installment payments due under the Notes.

"Bank" has the meaning ascribed to such term in the preamble of this Agreement.

Exhibit 10.1

"Base Rate Loan" shall have the meaning ascribed to such term in the Revolving Credit Note.

"Beneficiary" means a beneficiary of a Commercial Letter of Credit issued pursuant to Section
2.04 hereof.

"Borrower" has the meaning ascribed to such term in the preamble of this Agreement.

"Business Day" means any day other than a Saturday, Sunday or day which shall be in The Commonwealth of Massachusetts a legal holiday or day on which banking institutions are required or authorized to close. If either of the Notes or any payment thereunder or under this Agreement becomes due on a day which is not a Business Day, the due date of such Note or payment shall be extended to the next succeeding Business Day, and such extension of time shall be included in computing interest and fees in connection with such payment.

"Cash Flow" means, for any applicable fiscal period, net income after income taxes, less income or plus loss from discontinued operations and extraordinary items, plus depreciation, depletion, amortization and other non-cash charges, plus Interest on all Obligations, less share repurchases, dividends, withdrawals and other distributions, less unfinanced capital expenditures, provided that if the Borrower shall raise additional equity from capital markets after the date of this Agreement, an amount equal to the quotient of 60% of the net proceeds of the primary shares offered by the Borrower divided by the remaining fiscal periods shall be excluded from the total of unfinanced capital expenditures. For the purposes of this definition, the terms "depreciation" and "amortization" shall have the meanings ascribed to them in accordance with GAAP.

"Closing" has the meaning ascribed such term in Section 3.01.

"Closing Fee" means a fee with respect to the Revolving Credit to be paid to the Bank by the Borrower at Closing pursuant to a letter agreement by and between the Borrower and the Bank.

"Commercial Letter of Credit Fee" has the meaning ascribed to such term in Section 2.04(A)(3).

"Commercial  Letters  of  Credit" means any and all commercial  or standby letters of credit  or bank guarantees that may be issued by the Bank from time to time to third parties for the benefit of the Borrower pursuant to Section 2.04 of this Agreement.

"Debt Service Coverage Ratio" means, for any applicable fiscal period, the ratio, calculated on a consolidated basis, of (A) Cash Flow divided by (B) required principal payments on long term debt, plus partial payments of Subordinated Indebtedness that are not required or scheduled to be made, plus Interest paid or to be paid for such period less payments made to fully retire Subordinated Indebtedness if paid in cash on the Borrower's balance sheet at such time or raised through capital market transactions or financing furnished by the Bank. Whenever Net Leverage, as calculated pursuant to Section 5.0l (F)(2) hereof, is less than 1.50:1.0, then any and all payments, distributions, loans, or advances permitted under Section 5.02(F) and Section 5.02(G) of this Agreement shall not be included in the foregoing calculation of the Debt Service Coverage Ratio.

2

Exhibit 10.1

"EBITDA" means, for any applicable fiscal period, calculated on a consolidated basis, net income less income or plus loss from discontinued operations and extraordinary items, plus income taxes, plus interest, plus depreciation, depletion, amortization and other non-cash charges, all as determined in accordance with GAAP.

"Event of Default" has the meaning provided in Section 6.01.

"Financial Statements" means the financial statements described on Exhibit l.0(A) attached  to this Agreement.

"Foreign Commitments" shall have the meaning assigned thereto in the definition of Permitted International Borrowings.

"Funded Debt" means the sum of all Indebtedness for borrowed money of the Borrower (including, without limitation, all Obligations), net of the Borrower's cash in the United States of America in excess of $50,000,000.00, up to a maximum of $250,000,000.00.

"GAAP" means, generally accepted accounting principles applied consistently, with such changes or modifications thereto as may be approved in writing by the Bank.

"Guaranty" means a Continuing Guaranty in the form of Exhibit 1.0(B) attached hereto with respect to each Subsidiary to which the Bank or its Affiliates extends credit (including Foreign Commitments), such Continuing Guaranty to be executed by the Borrower and delivered to the Bank in connection with each extension of any such credit.

"Indebtedness" means, as to the Borrower or any Subsidiary, all items of indebtedness, obligation or liability whether joint or several, matured or unmatured, liquidated or unliquidated, direct or contingent, including without limitation:

(A)    All indebtedness guarantied, directly or indirectly, in any manner, or endorsed (other than for collection or deposit in the ordinary course of business) or discounted with recourse;

(B)    All indebtedness in effect guarantied, directly or indirectly, through agreements, contingent or otherwise: (1) To purchase such indebtedness; or (2) to purchase, sell or lease (as lessee or lessor) property, products, materials, or supplies or to purchase or sell services, primarily for the purpose of enabling the debtor to make payment of such indebtedness or to insure the owner of the indebtedness against loss; or (3) to supply funds to, or in any other manner invest in, the debtor;

(C)    All indebtedness secured by (or for which the holder of such indebtedness has a right, contingent or otherwise, to be secured by) any mortgage, deed of trust, pledge, lien, security interest or other charge or encumbrance upon property owned or acquired subject thereto, whether or not the liabilities secured thereby have been assumed; and

3

Exhibit 10.1

(D)     All indebtedness incurred as the lessee of goods or services under leases that, in accordance with GAAP, should not be reflected on the lessee's balance sheet.

"Intellectual Property" means trademarks, service marks, trade names, trade styles, logos, goodwill, trade secrets, patents, and licenses acquired under any statutory, common law or registration process in any state or nation at any time, or under any agreement executed with any person or entity at any time. The term "license" refers not only to rights granted by agreement from the owner of patents, trademarks, service marks and the like, but also to rights granted by a franchiser under a franchise or similar agreement.  The foregoing enumeration is not intended as a limitation of the meaning of the word "license."

"Interest" means all interest expense and letter of credit fees due during any fiscal period of the Borrower, calculated in accordance with GAAP.

"Laws" means all ordinances, statutes, rules, regulations, orders, injunctions, writs or decrees of any government or political subdivision or agency thereof, or of any court or similar entity established by any thereof.

"LIBOR Rate Loan" shall have the meaning ascribed to such term in the Revolving Credit Note. "Loan(s)" means individually and collectively the Revolving Credit and the Term Loan.
"Loan Documents" means each and every of this Agreement, the Notes and each other document executed or delivered to the Bank in connection with the Loans.

"Maturity Date" means, with respect to the Term Note, June 30, 2015 or such later date as is agreed to by the Bank in a written instrument executed by a duly authorized officer of the Bank.

"Net Leverage" means, at any applicable date, the ratio of Funded Debt to EBITDA.

"Notes" means each and both of the Revolving Credit Note and the Term Note.

"Obligations" is intended to be used in its most comprehensive sense and means each and every obligation of the Borrower to the Bank of every kind and description, whether direct or indirect, absolute or contingent, primary or secondary, joint or several, due or to be come  due, now existing or hereafter arising or acquired and whether by way of loan, guaranty, discount, letter of credit, lease or otherwise, including without limitation, the following obligations:

(A)    To pay the principal of, and interest on, the Notes in accordance with the terms thereof and to satisfy all other liabilities to the Bank, whether hereunder or otherwise, whether now existing or hereafter incurred, matured or unmatured, direct or contingent, joint or several, including any extensions, modifications, renewals thereof and substitutions therefor.

(B)    To repay to the Bank all amounts advanced by the Bank hereunder or otherwise on behalf of the Borrower, including, but without limitation, advances for principal  or interest

4

Exhibit 10.1

payments to prior secured parties, mortgagees, or lienors, or for taxes, levies, insurance, rent, or repairs to, or maintenance or storage of, any collateral;

(C)    To perform and observe all covenants, agreements and undertakings of the Borrower pursuant to the terms and conditions of this Agreement and the Notes or any other agreement or instrument now or hereafter delivered to the Bank by the Borrower;

(D)    All obligations under any interest rate swap agreement, foreign exchange contract, any cap, floor or hedging agreement or other similar agreement, or other financial agreement or arrangement designed to protect the Borrower against fluctuations in any interest rate charged by the Bank under the Notes or otherwise, including any obligations of the Borrower arising out of or in connection with any Automated Clearing House ("ACH") Agreement relating to the processing of ACH transactions, together with all fees, expenses, charges and other amounts owing by or chargeable to the Borrower under any ACH Agreement;

(E)    All obligations to reimburse the Bank, on demand, in connection with overdrafts and other amounts due to the Bank under any existing or future agreements relating to cash management services; and

(F)    All obligations to reimburse the Bank, on demand, for all of the Bank's expenses and costs, including without limitation the reasonable fees and expenses of its counsel, in connection with the preparation, administration, amendment, modification,  or enforcement  of this Agreement and the documents required hereunder or related hereto, including, without limitation, any proceeding brought, or threatened, to enforce payment of any of the obligations referred to in the foregoing Paragraphs (A) through (E).

"Permitted  International  Borrowings" means  (A) up to $50,000,000.00  of credit outstanding  at any time now or hereafter extended to the Borrower or its Subsidiaries pursuant to loans made outside   the   United   States   of  America   by   foreign  banking   institutions   plus   (B)   up   to $50,000,000.00 of credit extended to the Borrower or its Subsidiaries outside the United States of America by the Bank or its Affiliates (any such credit extended by the Bank or its Affiliates, "Foreign Commitments"). For the avoidance of doubt, Permitted International Borrowings may be denominated in any currency acceptable to the Borrower (or its applicable Subsidiary) and the lender or lenders party thereto and which, with respect to any credit outstanding denominated in a currency other than dollars, the amount thereof shall be determined on a dollar equivalent basis at the time of incurrence.

"Permitted  Liens" means:

(A)    Liens for taxes, assessments or similar charges, incurred in the ordinary course of business, that are not yet due and payable;

(B)    Pledges or deposits made in the ordinary course of business to secure payment of worker's compensation, or to participate in any fund in connection with worker's compensation, unemployment insurance, old-age pensions or other social security programs;

5

Exhibit 10.1

(C)    Liens of mechanics, materialmen, repairmen, warehousemen, carriers or other like liens, securing obligations incurred in the ordinary course of business that are not yet due and payable;

(D)    Good  faith  pledges  or  deposits  not  exceeding  an  aggregate  amount   of
$1,000,000.00 made in the ordinary course of business to secure performance of bids, tenders, contracts (other than for the repayment of borrowed money) or leases, not in excess of thirty percent (30%) of the aggregate amount due thereunder, or to secure statutory obligations, or surety, appeal, indemnity, performance or other similar bonds required in the ordinary course of business;

(E)    Encumbrances consisting of zoning restrictions, easements or other restrictions on the use of real property, none of which materially impairs the use of such property by the Borrower in the operation of its business, and none of which is violated in any material respect by existing or proposed structures or land use;

(F)    Liens in favor of the Bank;

(G)    Existing liens set forth or described on Exhibit 4.01(1), attached hereto and made a part hereof;

(H)    Purchase money security interests granted to secure the purchase price of assets, the purchase of which does not violate this Agreement or any instrument required hereunder; and

(I)         Liens securing Indebtedness permitted by this Agreement; and

(J)    The following, if the validity or amount thereof is being contested in good faith by appropriate and lawful proceedings, so long as levy and execution thereon have been stayed and continue to be stayed and they do not, in the aggregate, materially detract from the value of the property of the Borrower or any Subsidiary, or materially  impair the use thereof in the operation of its business:

(1)    Claims or liens for faxes, assessments or charges due and payable and subject to interest or penalty;

(2)    Claims, liens and encumbrances upon, and defects of title to, real or personal property, including any attachment of personal or real property or other legal process prior to adjudication of a dispute on the merits;

(3)    Claims or liens of mechanics, materialmen, warehousemen, carriers or other like liens; and

(4)    Adverse judgments on appeal.

6

Exhibit 10.1

"Person" means any individual, corporation, partnership, association, joint-stock company, trust, unincorporated organization, joint venture, court or government, or political subdivision or agency·thereof.

"Records" means correspondence, memoranda, tapes, discs, papers, books and other documents, or transcribed information of any type, whether expressed in ordinary or machine readable language.

"Revolving Credit" means the revolving credit facility furnished to the Borrower by the Bank pursuant to this Agreement, as evidenced by the Revolving Credit Note.

"Revolving Credit Facility Fee" has the meaning ascribed to such term in Section 2.07.

"Revolving  Credit Loan  Commitment" means, as of any date of determination, a revolving  line of credit facility up to $50,000,000.00, less the outstanding amount of any Foreign Commitments (whether or not funded) as of such date of determination.

"Revolving Credit Note" means the Revolving Credit Note referred to in Section 2.03, as may be supplemented, amended or replaced.

"Revolving Credit Outstandings" means, at any time, the sum of (i) the aggregate outstanding principal balance of the Loan at such time plus (ii) the aggregate maximum amount that Beneficiaries may draw on Commercial Letters of Credit at such time.

"Revolving  Credit  Termination  Date" means, with respect to the Revolving Credit Note,  April 30, 2020 or such other date as is agreed to by the Bank in a written instrument executed  by a duly authorized officer of the Bank, provided that the Borrower  may  elect to terminate  this Agreement upon at least fifteen (15) days prior written notice to the Bank and full, final  and indefeasible payment of all the then outstanding Obligations."

"Revolving  Increase  Effective  Date" shall have the meaning  ascribed to such term in Section
2.08 of this Agreement.

"Subordinated Indebtedness" means all Indebtedness incurred at any time by the Borrower or any Subsidiary, the repayment of which is subordinated to the Loans in form and manner satisfactory to the Bank.

"Subsidiary" means any Affiliate that is directly, or indirectly through one  or  more intermediaries, controlled by the Borrower or not less than 50% of the voting capital stock of which is owned, directly or through one or more intermediaries, by the Borrower.

"Swap Contract" means the interest rate swap transaction between the Borrower and the Bank dated as of October 4, 2010 with respect to the Term Note.

"Term Loan" means the $20,000,000.00 term loan facility furnished to the Borrower by the Bank, as evidenced by the Term Note.

7

Exhibit 10.1

"Term Note" means the Term Note referred to m Section 2.03, as may be supplemented, amended or replaced.

"$" or "dollars" denotes lawful currency of the United States of America.

Accounting. Accounting terms used and not otherwise defined in this Agreement have the meanings determined by, and all calculations with respect to accounting or financial matters unless otherwise provided herein shall be computed in accordance with, GAAP.

ARTICLE 2.0  THE CREDIT FACILITIES

2.01    Advances on the Loans.

(A)    All advances to or for the benefit of the Borrower with respect to the Revolving Credit Note will be charged to loan accounts established in the name of the Borrower on the Bank's books.

(B)    The Bank disbursed the proceeds of the Term Note in accordance with a disbursement authorization letter executed on or about the same date as the Term Note. The outstanding principal balance as of the date of this Agreement is $10,888,888.98.

2.02    General Terms of the Revolving Credit.

Subject to the terms hereof, the Bank will lend the Borrower, from time to time until the Revolving Credit Termination Date, such sums as the Borrower may request (but in the case of LIBOR Rate Loans, at least $100,000.00) by reasonable same day notice to the Bank, received by the Bank not later than 11:00 A.M. of such day. The Borrower may borrow, repay Base Rate Loans without penalty or premium and reborrow, from the date of this Agreement until the Revolving Credit Termination Date, either the full amount of the Revolving Credit Loan Commitment or any lesser sum which is at least $100,000.00. The Revolving Credit Outstandings shall at no time exceed the Revolving Credit Loan Commitment, and if, at any time, an excess shall for any reason exist, the full amount of such excess, together with accrued and unpaid interest thereon as herein provided, shall be immediately due and payable in full.

2.03    The Notes.

(A)    The Revolving Credit Loan Commitment shall be evidenced by a Revolving Credit Note due and payable on the Revolving Credit Termination Date, in the form attached hereto as Exhibit 2.03(A). Upon execution and delivery to the Bank, the Revolving Credit Note shall replace and supersede the prior Revolving Credit Note issued by the Borrower dated June 14, 2008.

(B)    The Term Loan is evidenced by a Term Note dated June 4, 2008, due and payable on the Maturity Date, a copy of which is attached hereto as Exhibit 2.03B. The Borrower entered into the Swap Contract in connection with the Term Note.

8

Exhibit 10.1

2.04    Commercial Letters of Credit

(A)    From time to time prior to the Revolving Credit Termination Date, the Bank shall issue Commercial Letters of Credit on account of the Borrower or a Subsidiary subject to the following conditions:

(1)    Any such Commercial Letters of Credit shall be issued as a trade letter of credit, standby letter of credit or bank guarantee only to (i) a supplier or to a seller of goods which purchased goods will become a part of the Inventory or other assets of the Borrower, (ii) governmental authorities or bonding companies to secure statutory obligations of the  Borrower, including, without limitation, worker's compensation, disability, unemployment compensation or environmental Laws, or (iii) a customer who is purchasing goods or services from the Borrower or a Subsidiary;

(2)    No Beneficiary shall be an Affiliate (excluding a Subsidiary);

(3)    The Borrower agrees to pay to the Bank a quarterly fee with respect to each Commercial Letter of Credit payable at the end of each calendar quarter (in each case, a "Commercial Letter of Credit Fee") in accordance with Exhibit 2.04(A)(3) attached hereto. Whenever an Event of Default exists and is outstanding, the Commercial Letter of Credit Fee hereunder shall, at the option of the Bank, be increased to a per annum fee which is two percent (2%) per annum greater that that fee which would otherwise be applicable hereunder;

(4)    No such Commercial Letter of Credit shall have an expiration date that is later than the Revolving Credit Termination Date unless otherwise agreed to by the Bank, excepting only (a) Commercial Letters of Credit in amounts aggregating no more than $250000.00 which may have expiration date(s) no later than one (1) year beyond the Revolving Credit Termination Date, and (b) such other Commercial Letters of Credit in amounts acceptable to the Bank, which may have expiration date(s) no later than one (1) year beyond the Revolving Credit Termination Date;

(5)    Each such Commercial Letter of Credit shall be issued pursuant to such agreements and upon such terms and conditions as shall be required by the Bank;

(6)    No Event of Default shall have occurred hereunder at the time of issuance of such Commercial Letter of Credit;

(7)    The aggregate face amount of all Commercial Letters of Credit at any time outstanding shall not exceed the amount available under the Revolving Credit Loan Commitment at such time; and

(8)    In the case of a Commercial Letter of Credit  issued on behalf of a Subsidiary, the Borrower has first executed and delivered to the Bank a Guaranty with respect to such Subsidiary.

9

Exhibit 10.1

(B)     The aggregate face amount of all Commercial Letters of Credit at any time outstanding shall be included in the amount of the Revolving Credit Outstandings.

2.05    Interest.

(A)    Indebtedness due under the Notes shall bear interest at the rates and calculated in the manner set forth in the Notes.

(B)    All agreements between Borrower and the Bank are hereby. expressly limited so that in no contingency or evenf whatsoever, whether by reason of acceleration of maturity of the indebtedness evidenced hereby or otherwise, shall the. amount paid or agreed to be paid to the Bank for the use or the forbearance of the indebtedness evidenced hereby exceed the maximum permissible under applicable law. As used herein, the term "applicable law" means the law in effect as of the date hereof provided, however that in the event there is a change in the law which results in a higher permissible rate of interest, then the Notes shall be governed by such new law as of its effective date. In this regard, it is expressly agreed that it is the intent of Borrower and Bank in the execution, delivery and acceptance of the Notes to contract in strict compliance with the laws of The Commonwealth of Massachusetts from time to time in effect. If,under or from any circumstances whatsoever, fulfillment of any provision hereof, of the Notes or of any of the other Loan Documents at the time of performance of such provision shall be due, shall involve transcending the limit of suGh validity prescribed by applicable law, then the obligation to be fulfilled shall automatically be reduced to the limits of such validity, and if under or from any circumstances whatsoever the Bank should ever receive as interest an amount which would exceed the highest lawful rate, such amount which would be excessive interest shall be applied to the reduction of the principal balance evidenced hereby and not to the payment of interest. This provision shall control every other provision of all agreements between the Borrower and the Bank.

2.06    Payment to the Bank.

The Bank shall periodically send the Borrower statements of all amounts due on the Loans, which statements shall be considered correct and conclusively binding on the Borrower unless the Borrower notifies the Bank to the contrary within thirty (30) days of its receipt of any statement that it deems to be incorrect. Notwithstanding the foregoing, any errors made by the Bank shall be corrected if brought to the attention of the Bank no later than ninety (90) days after termination of the Loans. At its sole discretion, the Bank may charge against any deposit or other account of the Borrower all or any part of any amount due with respect to the Obligations.

2.07    Revolving Credit Facility Fee.

The Borrower shall pay to the Bank, quarterly in arrears, as of the last day of each and every calendar quarter, a fee calculated at an annual rate based upon a 365/366-day year for the actual number of days outstanding, for each quarter, based on a percentage of the average unused portion  of  the  Revolving  Credit  Loan  Commitment  (the  "Revolving   Credit   Facility   Fee").

10

Exhibit 10.1

Notwithstanding the foregoing, the percentage to be used in calculation of the Facility Fee shall increase or decrease based upon Net Leverage, as follows:

	
		
	Net Leverage
	Unused Facility Fee

	less than 1.0 to 1.0
	0.175%

	equal to or greater than 1.0 to 1.0, but less than 2.0 to 1.0
	0.225%

	equal to or greater than 2.0 to 1.0
	0.275%

2.08    Increase in Revolving Credit Loan Commitment.

(A)    Request for  Increase. Provided there exists no Event of Default, upon  prior written notice to the Bank, the Borrower may, from time to time, request an increase in the Revolving Credit Loan Commitment by an amount (for all such requests) not exceeding Twenty­ Five Million Dollars ($25,000,000.00) in the aggregate; provided that (i) any such request for an increase shall be in a minimum  amount of Five Million Dollars ($5,000,000.00), and (ii) the Borrower may make a maximum of three (3) such requests. At the time of sending such notice, .the Borrower (in consultation with the Bank) shall specify the time period within which the Bank is requested to respond (which shall in no event be less than ten (10) Business Days from the date of delivery of such notice to the Bank).

(B)    Effective Date and Allocations. If the Revolving Credit Loan Commitment is increased in accordance with this Section 2.08, the Bank and the Borrower shall determine the effective date (the "Revolving Increase Effective Date") and the final allocation of such increase among any financial institutions holding a participating interest. The Bank shall promptly notify the Borrower of the final allocation of such increase and the Revolving Increase Effective Date.

(C)    Conditions to Effectiveness of Increase. As a condition precedent to any increase of the Revolving Credit Loan Commitment under this Section 2.08, the Borrower shall deliver to the Bank a certificate of the Borrower dated as of the Revolving Increase Effective Date signed by the president or chief financial officer of the Borrower (1) certifying and attaching the resolutions adopted by the Borrower approving or consenting to such increase, and (2) certifying that, before and after giving effect to such increase, (a) the representations and warranties contained in this Agreement and the other Loan Documents are, (i) with respect to representations and warranties that contain a materiality qualification, true and correct on and as of the Revolving Increase Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case, they shall be true and correct in all material respects as of such earlier date, and (ii) with respect to representations and warranties that do not contain a materiality qualification, true and correct in all material respects on and as of the Revolving Increase  Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case, they shall be true and correct in all material respects as of such earlier date and, in each case, except that for purposes of this Section

11

Exhibit 10.1

2.08, the representations and warranties contained in Section 4.0l (H) shall be deemed to refer to the most recent financial statements furnished pursuant thereto and (b) no Event of Defaults exists.

ARTICLE 3.0  CONDITIONS PRECEDENT

The obligation of the Bank to make the Loans is subject to the following conditions precedent:

3.01    Documents Required for the Closing.

The Borrower shall have delivered to the Bank, prior to the initial disbursement of the Revolving Credit (the "Closing"), the following:

(A)    The Revolving Credit Note duly executed by the Borrower in the form attached hereto as Exhibit 2.03A;

(B)    A certificate (dated the date of the Closing) of the corporate secretary or assistant secretary, as the case may be, of the Borrower, certifying as to:

(1)    the incumbency and signatures of the officer(s) signing this Agreement, the Notes, the other Loan Documents and each other document to be delivered pursuant hereto,

(2)    the resolutions of the board of directors authorizing the execution, delivery and performance of this Agreement, the Notes, the other Loan Documents, and each other document to be delivered pursuant hereto,

(3)    the By-Laws;

(C)    With respect to the Borrower, certificates of tax good standing and corporate good standing and legal existence, dated as of the most recent date practicable, issued by the Delaware Department of Revenue and Secretary of State of Delaware as to the tax good standing and the legal existence and corporate good standing of the Borrower and a certificate of registration as a foreign corporation with The Commonwealth of Massachusetts;

(D)    A copy, certified as of the most recent date practicable by the Secretary of the applicable state or nation of incorporation, of the charter documents of the Borrower and all amendments thereto, together with a certificate (dated the date of the Closing) of the corporate secretary or assistant secretary, as the case may be, of the Borrower to the effect that such charter documents have not been further amended since the date of the aforesaid certification of the Secretary of the State of Delaware;

(E)    A written opinion or opinions of legal counsel for the Borrower, dated the date of the Closing and addressed to the Bank, in form satisfactory to the Bank and its counsel;

12

Exhibit 10.1

(F)    A certificate, dated the date of the Closing, signed by the president, a vice president, the treasurer or an assistant treasurer, the chief executive officer or the chief financial officer, of the Borrower and to the effect that:

(1)    The representations and warranties set forth in Section 4.01 are true as of the date of the Closing; and

(2)    No Event of Default hereunder,  and no event which, with the giving of notice or passage of time or both, would become such an Event of Default, has occurred as of such date; and

(G)    Payment of the Closing Fee, which may be netted against the initial disbursement of the Revolving Credit.

3.02    Documents Required for Subsequent Disbursements.

At the time of, and as a condition to, any disbursement of any part of the Loans to be made by the Bank subsequent to the Closing, the Bank may require the Borrower to deliver to the Bank a certificate, dated the date on which any such disbursement is to be made, signed by the president, a vice president, treasurer, chief executive officer, chief financial officer, or other duly authorized officer of the Borrower, or by a vice president, treasurer or other duly authorized officer of the Borrower, and to the effect that:

(A)    As of the date thereof, no Event of Default has occurred and is continuing, and no event has occurred and is continuing that, but for the giving of notice or passage of time or both, would be an Event of Default; and

(B)    Each of the representations and warranties contained in Section 4.01 is true and correct in all material respects as if made on and as of the date of such disbursement (except for such representations and warranties made as of a particular date).

3.03    Certain Events.

At the time of, and as a condition to, the Closing and each disbursement of any part of the Loans to be made by the Bank at or subsequent to the Closing:

(A)    No Event of Default shall have occurred and be continuing, and no event shall have occurred and be continuing that, with the giving of notice or passage of time or both, would be an Event of Default; and

(B)    All of the Loan Documents shall have remained in full force and effect.

3.04    Legal Matters.

At the time of the Closing, all legal matters incidental thereto shall be satisfactory to Bowditch & Dewey, LLP, legal counsel to the Bank.

13

Exhibit 10.1

ARTICLE 4.0  REPRESENTATIONS AND WARRANTIES

4.01    Original.

To induce the Bank to enter into this Agreement, the Borrower represents and warrants to the Bank as follows:

(A)    The Borrower is a corporation duly organized, validly existing, and in good standing under the laws of the State of Delaware; as of the Closing, the Borrower has no Subsidiaries other than the Subsidiaries named in Exhibit 4.0l(A); as of the Closing, each Subsidiary is duly organized, validly existing and in good standing under the laws of its state or nation of formation, all as set forth in Exhibit 4.0l(A); the Borrower and the Subsidiaries have the lawful power to own their properties and to engage in the businesses they conduct, and each is duly qualified and in good standing as a foreign corporation in the jurisdictions wherein the nature of the business transacted by it or property owned by it makes such qualification necessary (except where failure to so qualify would not have a material adverse effect on the business, assets or financial condition of the Borrower and its Subsidiaries taken as a whole);

(B)    Neither the Borrower nor any Subsidiary is directly or indirectly controlled by, or acting on behalf of, any Person which is an "Investment Company," within the meaning of the Investment Company Act of 1940, as amended;

(C)    Except as disclosed in Exhibit 4.0l(C) attached hereto, neither the Borrower nor any Subsidiary is in default with respect to any of its existing Indebtedness in any material respect, and which such default would constitute an Event of Default under Section 6.0l(C), and the making and performance of this Agreement, the Notes and the other Loan Documents will not (immediately or with the passage of time, the giving of notice, or both):
    
(1)    Violate (a) charter documents or the By-Laws of the Borrower or any Subsidiary, or (b) any Laws or result in a default, in any material respect, under any contract, agreement or instrument to which the Borrower or any Subsidiary is a party or by which the Borrower or any Subsidiary or its property is bound (except where such violation or default would not have a material adverse effect on the business, assets or financial condition of the Borrower and its Subsidiaries taken as a whole); or

(2)    Result in the creation or imposition of any security interest in, or lien or encumbrance upon, any of the assets of the Borrower or any Subsidiary except in favor of the Bank (except where such occurrence would not have a material adverse effect on the business assets or financial condition of the Borrower and its Subsidiaries taken as a whole);

(D)    The Borrower has the power and authority to enter into and perform this Agreement, the Notes and the other Loan Documents, and to incur the obligations herein and

14

Exhibit 10.1

therein provided for, and has taken all actions necessary to authorize the execution, delivery and performance of this Agreement, the Notes and the other Loan Documents;

(E)    This Agreement, the Notes and the other Loan Documents are, or when delivered will be, valid, binding and enforceable under applicable law in accordance with their respective terms, except as may be limited by applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors' rights generally and by general equitable principles (regardless of whether considered in a proceeding at law or in equity);

(F)    Except as disclosed in Exhibit 4.0l(F) hereto, there is no pending order, notice, claim, litigation, proceeding or investigation known to the Borrower against or affecting the Borrower or any Subsidiary, whether or not covered by insurance, that would in the aggregate involve the payment of $1,000,000.00 or more or would otherwise materially or adversely affect the financial condition or business prospects of the Borrower or any Subsidiary, considered as a whole, if adversely determined;

(G)    The Borrower and each Subsidiary has good and marketable title to all of its material assets, none of which is subject to any security interest, encumbrance or lien, or claim of any third Person except for Permitted Liens;

(H)    The Financial Statements, including any schedules and notes pertaining thereto, and the management prepared financial statements for the fiscal period ending December 31, 2014 have been prepared in accordance with GAAP, and fairly present the financial condition of the Borrower and the Subsidiaries at the dates thereof and the results of operations for the periods covered thereby, and there have been ·no material adverse changes in the financial condition or business of the Borrower and the Subsidiaries, considered as a whole, from December 31, 2014 to the date hereof;

(I)     As of the date hereof, neither the Borrower nor any of the Subsidiaries has any material Indebtedness of any nature, including, but without limitation, liabilities for taxes and any interest or penalties relating thereto except to the extent reflected (in a footnote or otherwise) and reserved against in the consolidated balance sheet dated December 31, 2014, included in the Financial Statements o:r as disclosed in, or permitted by, this Agreement, including as set forth on Exhibit  4.0l(I);

(J)     Except as otherwise permitted herein or as would not materially interfere with the conduGt of the business of  the Borrower and its Subsidiaries, considered as a whole, the Borrower has filed all tax returns or extensions to file tax returns in applicable jurisdictions, and other reports required by any applicable Laws to have been filed prior to the date hereof, have paid or caused to be paid all taxes, assessments and other governmental charges that are due and payable prior to the date hereof, and have made adequate provision for the payment of such taxes, assessments or other charges accruing but not yet payable; the Borrower has no knowledge of any deficiency or additional assessment in a materially important amount in connection with any taxes, assessments or charges not provided for on its books;

15

Exhibit 10.1

(K)    Except to the extent that the failure to comply would not materially interfere with the conduct of the business of the Borrower and its Subsidiaries, considered as a whole, each of the Borrower and the Subsidiaries have complied with all applicable Laws with respect to (1) any restrictions, specifications or other requirements pertaining to products that it manufactures or sells or to the services it performs; (2) the conduct of its business; and (3) the use, maintenance and operation of the real and personal properties owned or leased by it in the conduct of its business; .

(L)    No representation or warranty by or with respect to the Borrower or any Subsidiary contained herein or in any certificate or other document furnished by the Borrower or any Subsidiary pursuant hereto contains any untrue statement of a material fact or omits to state a material fact necessary to make such representation  or warranty not misleading in light of the circumstances under which it was made;

(M)    Each consent, approval or authorization of, or filing, registration or qualification with, any Person required to be  obtained or effected by the Borrower or any Subsidiary in connection with the execution and delivery of this Agreement, the Notes and the other Loan Documents or the undertaking or performance of any obligation hereunder or thereunder,  has been duly obtained or effected;
(N)    Except as set forth in Exhibit  4.0l (N) and except to the extent that the failure to comply would not materially interfere with the conduct of the business of the Borrower or any Subsidiary, considered as a whole, to the best knowledge of the Borrower, neither the Borrower, nor any Person for whose conduct the Borrower is responsible, owns, occupies or operates, ·or has, within the fifteen (15) year period immediately preceding the  date of this  Agreement, owned, occupied or operated a site or vessel on which has been stored any hazardous material or oil, without compliance with all statues, regulations, ordinances, directives, and orders of every federal, state, municipal and other governmental authority which has or  claims jurisdiction relative thereto (the terms "site," "vessel" and "hazardous material," respectively, as used .herein include the  definitions of those terms  in Massachusetts General Laws, Ch. 21E); neither the Borrower, nor any Person for whose conduct the Borrower is responsible, has ever disposed of, transported or arranged for the transport of any hazardous material or oil without compliance with all such statutes, regulations, ordinances, directives and orders in all material respects; and neither the Borrower, nor any Person for whose conduct the Borrower is responsible, has ever been legally responsible for any releases or threat of release of any hazardous material or oil; received notification of any potential or known release or threat of release of any hazardous material or oil from any site or vessel owned, occupied or operated by the Borrower, or any Person for whose conduct the Borrower is responsible, or of the incurrence of any expense or loss in connection with the assessment, containment or removal of any release or threat of release of any hazardous material or oil from any such site or vessel;

(O)    The Borrower has not made any agreement or taken any action which may cause anyone to become entitled to a commission or finder's fee as a result 9f or in connection with the making of the Loans;

16

Exhibit 10.1

(P)    The federal tax returns of the Borrower and all Subsidiaries for all years of operation, including the tax years of the Borrower and all Subsidiaries most recently ended prior to the date of this Agreement, have been filed with the Internal Revenue Service and have not been challenged or an extension for filing has been obtained; and

(Q)    Any Employee Pension Benefit Plans, as defined in the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), of the Borrower and each Subsidiary meet, as of the date hereof, the minimum funding standards of 29 U.S.C.A. 1082 (Section 302 of ERISA), and no Reportable Event or Prohibited Transaction, as defined in ERISA, has occurred with respect to any Employee Benefit Plans, as defined in ERISA, of the Borrower or any Subsidiary.

4.02     Survival.

All  of  the  representations  and  warranties  set  forth  in  Section  4.01  shall  survive  until  all Obligations are satisfied in full and there remain no outstanding commitments hereunder.

ARTICLE 5.0  COVENANTS OF THE BORROWER

5.01    Affirmative Covenants.

The Borrower does hereby covenant and agree with the Bank that, so long as any of the Obligations remain unsatisfied or any commitments hereunder remain outstanding, it will comply, or if appropriate cause the Subsidiaries to comply, at all times with the following affirmative covenants:

(A)    The Borrower will use the proceeds of the Loans only for the purposes set forth in Exhibit 5.0l(A), and will furnish the Bank such evidence as it may reasonably require with respect to such use;

(B)    The Borrower will furnish or otherwise make available to the Bank:

(1)    As soon as available, but in any event within forty-five (45) days after the close of the first three quarterly accounting periods in each fiscal year: (a) a consolidated statement of cash flows of the  Borrower and the Subsidiaries for such quarter; (b) a consolidated income statement of the Borrower and the Subsidiaries for such quarters; (c) a consolidated balance sheet of the borrower and the Subsidiaries as of the end of such quarter-all in reasonable detail, subject to normal year-end audit adjustments and certified by the president or principal financial officer of the Borrower to have been prepared in accordance with GAAP;

(2)    As soon as available, but in any event within one hundred twenty (120) days after the close of each fiscal year: (a) a consolidated statement of stockholders' equity; (b) a consolidated statement of changes of cash flows of the Borrower and the Subsidiaries for such fiscal year; (c) a consolidated income statement of the Borrower and the  Subsidiaries for such fiscal year; and (d) a consolidated  balance  sheet of the

17

Exhibit 10.1

Borrower and the Subsidiaries as of the end of such fiscal year-all such statements to be in reasonable detail, including all supporting schedules and comments; the consolidated statements  and  balance   sheets  to  be  audited  by  an  independent  registered  public accountant  selected  by  Borrower  and  acceptable  to  the  Bank,  and  certified  by  such accountants to have been prepared  in accordance with GAAP and to present fairly the financial position  and results of operations  of the Borrower  and the Subsidiaries;  the Bank  shall have the  right,  from time to time, to  discuss the  affairs of the  Borrower directly with such independent registered public accountants after notice to the Borrower and opportunity of the Borrower to be represented at any such discussions;

(3)    Contemporaneously with each quarterly and year-end financial report required by the foregoing paragraphs (1) and (2), a compliance certificate of the president or principal financial officer of the Borrower in a form satisfactory to the Bank providing calculations with respect to compliance with the financial covenants contained herein and stating that he has individually reviewed the provisions of this Agreement and that a review of the activities of the Borrower during such year or quarterly period, as the case may be, has been made by him or under his supervision, with a view to determining whether the Borrower has fulfilled all obligations under this Agreement, and that, to the best of his knowledge, the Borrower has observed and performed each undertaking contained in this Agreement and is not in default in the observance or performance of any of the provisions hereof or, if the Borrower shall be in default, specifying all  such defaults and events of which he may have knowledge;

(4)    Promptly after the sending or making available or filing of the same, copies of all reports, proxy statements, and financial statements that the Borrower sends or make available to its stockholders and all registration statements and reports that the Borrower files with the Securities and Exchange Commission or any successor Person;

(5)    Upon the Bank's reasonable request, copies of any and all material documents relating to the business of the Borrower;

(C)    The Borrower will maintain its material operating physical assets m good condition and repair (normal wear and tear excepted);

(D)    The Borrower and the Subsidiaries will maintain, or cause to be maintained, public liability, fire and casualty insurance that are of a character usually insured by corporations engaged in the same or similar businesses;

(E)    The Borrower and the Subsidiaries will pay or cause to be paid when  due, all taxes, assessments, charges or levies imposed  upon them or on any of their property or with respect to which any of them is required to withhold and pay except where contested in good faith by appropriate proceedings with adequate reserves therefor having been set aside on its books; provided, however, that the Borrower and each Subsidiary shall pay or cause to be paid all such taxes, assessments, charges or levies forthwith whenever foreclosure on any lien that may have attached (or security therefor) appears imminent;

18

Exhibit 10.1

(F)    The Borrower will maintain:.

(1)    A Debt  Service Coverage Ratio of at least  1.50:1.00, to be tested  on a rolling four fiscal quarters basis at the end of each fiscal quarter; and

(2)    Net Leverage not exceeding 3.00:1.00, to be tested on a rolling four fiscal quarters basis at the end of each fiscal quarter;

(G)    The Borrower and the Subsidiaries will each, when reasonably requested to do so, make available for inspection during normal business hours by duly authorized representatives of the Bank any of its bookS and records and will furnish the Bank any information regarding its business affairs and financial condition within a reasonable time after written request thereof;

(H)    The Borrower and the Subsidiaries will each take all necessary steps to preserve its corporate existence and comply in all material respects with all present and future Laws applicable to it in the operation of its business, and all material agreements to which it is subject;

(I)    The Borrower and the Subsidiaries will each take all necessary steps to preserve Intellectual Property, and will keep accurate and complete Records of royalties, patents and trademarks in connection therewith, consistent with sound business practices;

(J)    The Borrower and the Subsidiaries will keep accurate and complete business Records consistent with sound business practices;

(K)    The Borrower and the Subsidiaries will give immediate notice to the Bank of (1) any litigation or proceeding in which any of them is a party if an adverse decision therein would require any of them to pay more than $1,000,000.00 or deliver assets the value of which exceeds such sum (except where the claim is covered by insurance and the insurer has acknowledged coverage); and (2) the institution of any other suit or proceeding involving any of them that could be reasonably likely to materially and adversely affect the operations, financial condition, property or business of the Borrower or any Subsidiary, considered as a whole;

(L)    Upon written request by the Bank, the Borrower will furnish the Bank with true, correct and complete copies of federal income tax returns filed by the Borrower, together with all schedules thereto;

(M)    The Borrower and the Subsidiaries will pay when due (or within applicable grace periods (or in the case of trade indebtedness, no later than ninety (90) days from the date incurred)) all of their other Indebtedness exceeding $5,000,000.00 due third Persons except when the amount thereof is being contested in good faith by appropriate proceedings and with adequate reserves therefor being set aside on their books;

(N)    The Borrower and the Subsidiaries will each notify the Bank promptly if any of them becomes aware of the occurrence of any Event of Default or of any fact, condition or event that only with the giving of notice or passage of time or both, could become an Event of Default, or  if  any  of  them  becomes  aware  of  any  material  adverse  change  in  financial  condition

19

Exhibit 10.1

(including, without limitation, proceedings in bankruptcy, insolvency, reorganization or  the appointment of a receiver or trustee), or results of operations of the Borrower or a Subsidiary, or of the failure of the Borrower or any Subsidiary to observe any of their respective undertakings hereunder or under the other Loan Documents;

(O)    The Borrower and the Subsidiaries will notify the  Bank  thirty  (30)  days  in advance of any change in the location of the Borrower's headquarters currently located in Oxford, Massachusetts;

(P)    The Borrower and the Subsidiaries will (1) fund any Employee Pension Benefit Plans in accordance with no less than the minimum funding  standards of 29 U.S.C.A. 1082 (Section 302 of  ERISA); (2) furnish the Bank, upon the Bank's written request, with copies of any reports or other statements filed with the United States Department of Labor or the Internal Revenue Service with respect to any such Plan; and (3) promptly advise the Bank of the occurrence of any Reportable Event or Prohibited Transaction with respect to any Employee Benefit Plan; and

(Q)    The Borrower will maintain its primary depository and operating accounts with the Bank at all times while any Obligations to the Bank under the Revolving Credit Note are outstanding, it being understood that this provision shall not require the Borrower to maintain its investment account with the Bank.

5.02    Negative Covenants.

The Borrower does hereby covenant and agree with the Bank that, so long as any of the Obligations remain unsatisfied or any commitments hereunder remain outstanding, it will comply, or if appropriate cause the Subsidiaries to comply, at all times with the  following negative covenants, unless the Bank shall otherwise have agreed in writing:

(A)    Neither the Borrower nor any Subsidiary will mortgage, assign as collateral security, pledge or encumber any of its assets now owned or hereafter acquired, or permit any of its assets to be encumbered in any way without the prior express written consent of the Bank, except for Permitted Liens (including refinancings thereof) and any lien in favor of the Bank or its affiliates;

(B)    Neither the Borrower nor any Subsidiary will change its name or enter into any merger or. consolidation (other than mergers or consolidations between wholly owned subsidiaries resulting in no change in the beneficial ownership of such subsidiaries, mergers of wholly owned subsidiaries into Borrower and mergers or consolidations in connection with transactions otherwise permitted hereby, including, Section 5.02(K));

(C)    Neither the Borrower nor any Subsidiary will sell or otherwise dispose of, or for any reason cease operating, any of its operating divisions, or lines of business which on a cumulative basis or in any one instance comprise more than twenty percent (20%) of the assets of the Borrower and its Subsidiaries, considered as a whole, without first providing the Bank for each such sale or disposition with thirty (30) days advance written notice of its intention to do so;

20

Exhibit 10.1

(D)     Neither the Borrower nor any Subsidiary will become liable, directly or indirectly, as guarantor or otherwise for any obligation of any other Person exceeding $50,000,000.00 in the aggregate at any time outstanding, without notifying the Bank in writing in advance, except for (i) the endorsement of commercial paper for deposit or collection in the ordinary course of business, (ii) unsecured guarantees of obligations of foreign Subsidiaries of the Borrower and (iii) with respect to the Aircraft Loan;

(E)    Neither the Borrower nor any Subsidiary will incur, create, assume, or permit to exist any Indebtedness except: (1) the Loans; (2) existing Indebtedness listed on Exhibit 4.0l(I) permitted to exist after the date of this Agreement (including refinancings thereof); (3) trade indebtedness incurred in the ordinary course of business, (4) contingent Indebtedness permitted by Section 5.02(D); (5) Indebtedness secured by Permitted Liens; (6) Subordinated Indebtedness; (7) Permitted International Borrowings; (8) capital leases or purchase money Indebtedness permitted by this Agreement; (9) the Aircraft Loan; and (10) other Indebtedness not exceeding $50,000,000.00 in the aggregate at any time outstanding;

(F)    Neither the Borrower nor any Subsidiary (other than a· wholly owned Subsidiary of the Borrower) will declare or pay any dividends, redeem or make any other payment or distribution on account of its capital stock (other than shares of stock of, or other instruments issued by, the Borrower convertible into stock of the Borrower) at any time when an Event of Default shall have occurred and be continuing or would result therefrom (including, without limitation, compliance by the Borrower of the financial covenants set forth in Section 5.0l (F) of this Agreement; provided, that this Section 5.02(F) shall not prohibit (1) the payment of any dividend within sixty (60) days after the date of declaration of such dividend if the payment of such dividend would have been permitted on the date of declaration and (2) the acquisition of any shares of capital stock of the Borrower or its Subsidiaries either (a) to the extent that such exchange shall be for shares of capital stock of the Borrower of (b) through the application of net proceeds of a substantially concurrent sale for cash (other than to a Subsidiary of the Borrower) of shares of capital stock of the Borrower;

(G)    Neither the Borrower nor any Subsidiary will declare or make, directly or indirectly, any payments or distributions to officers, directors or employees on account of its capital stock (other than as permitted under Section 5.02(F), or incur any obligation (contingent or otherwise) to do so, except that, so long as no Event of Default shall have occurred and be continuing at the time thereof or would result therefrom (including, without limitation, compliance by the Borrower of the financial covenants set forth in Section 5.0l(F) of this Agreement) the Borrower may (1) make payments of up to $1,000,000.00 per fiscal year and no more than $5,000,000.00 in the aggregate with respect to share repurchases from officers, directors or employees of the Borrower or any of its Subsidiaries, (2) make payments not exceeding $3,000,000.00 in the aggregate any fiscal year with respect to payment of employee income taxes in connection with the vesting of restricted shares or performance shares of the Borrower held by such employee; and (3) make payments of up to $1,000,000.00 per fiscal year and no more than $5,000,000.00 in the aggregate with respect to share repurchases from current or former officers, directors, employees and consultants of the Borrower or any of its Subsidiaries of the authorized representatives of such current or former officers, directors,

21

Exhibit 10.1

employees and consultants upon  the death, disability or termination of employment of such person or termination of their seat on the board of the Borrower, or pursuant to the terms of any agreement under which such capital stock was issued or any agreement with respect to such consulting agreement; provided that any such payments made at a time when Net Leverage, as calculated in accordance with Section 5.0l(F)(2) hereof, is less than 1:50:1:00 (both before and after giving pro forma effect to such payment) shall not count against any dollar limitations set forth in this Section 5.02(G);

(H)    Without first providing the Bank with fifteen (15) days advance written no.tice of its intention to do any of the following, neither the Borrower nor any Subsidiary will form any subsidiary, make any investment in (including any assignment of lnventory or other property), or make any loan in the nature of an investment to, any Person, other than (1) investments of the Borrower in the Subsidiaries listed on Exhibit 4.0l(A) or (2) any individual investment (including the formation of any subsidiary) or any loan in the nature of an investment, not exceeding $20,000,000.00;

(I)    Neither the Borrower nor any Subsidiary will make any loan or advance to any officer, shareholder, director, or employee of the Borrower or any Subsidiary, except for (1) business travel, educational or relocation and similar temporary advances in the ordinary course of business,  (2) loans not  exceeding  $250,000.00 to any one such individual  and up to
$3,000,000.00 in the aggregate at any one time outstanding;

(J)    The Borrower will not make any  payments  on  any  other  Subordinated Indebtedness, except as permitted by the subordination provisions applicable thereto;

(K)    Neither the Borrower  nor any Subsidiary will acquire  or agree to acquire  any stock in, or all or substantially all of the assets of, any Person for a purchase price exceeding $20,000,000.00 without first providing the Bank with fifteen (15) days advance written notice of its intention to do so;

(L)    Neither the Borrower nor any Subsidiary will furnish the Bank any certificate or other document that will contain any untrue statement of material fact or that will omit to state a material fact necessary to make it not misleading in light of the circumstances under which it was furnished; and

(M)    Neither the Borrower nor any Subsidiary will directly or indirectly apply any part of the proceeds of the Loans to the purchasing or carrying of any "margin stock" within the meaning of Regulation U of the Board of Governors of the Federal Reserve System, or any regulations, interpretations, or rulings thereunder.

ARTICLE 6.0  DEFAULT

6.01     Events of Default.

The occurrence of any one or more of the following events shall constitute an Event of Default hereunder:

22

Exhibit 10.1

(A)    The Borrower or the Subsidiaries shall fail to pay when due any Obligations to the Bank within ten (10) days of an applicable due date;

(B)    The Borrower or the Subsidiaries shall fail to observe or perform any other obligation to be observed or performed by it hereunder or under any  of the other Loan Documents, and such failure shall continue for thirty (30) days after (1) notice of such failure from the Bank; or (2) the Bank is notified of such failure or should have been so notified pursuant to the provisions of Section 5.01(0), whichever is earlier;

(C)    The Borrower or the Subsidiaries shall fail to pay any Indebtedness other than the Obligations exceeding $5,000,000.00, and such failure shall continue beyond any applicable grace period (or, with respect to trade Indebtedness which is not subject to a grace period, within ninety (90) days of the date such trade Indebtedness is incurred);

(D)    Any financial statement, representation, warranty or certificate made or furnished by or with respect to the Borrower or any of the Subsidiaries to the Bank in connection with this Agreement, or as an inducement to the Bank to enter into this Agreement, or in any separate statement or document to be delivered to the Bank hereunder, shall be materially false, incorrect or incomplete when made;

(E)    The Borrower shall admit its inability to pay its debts as they mature or shall make an assignment for the benefit of itself or any of its creditors;

(F)    Proceedings in bankruptcy, or for reorganization of the Borrower or any of the Subsidiaries, or for the readjustment of any of their respective debts under the United States Bankruptcy Code, as amended, or any part thereof, or under any other Laws, whether state or federal, for the relief of debtors, now or hereafter existing, shall be commenced against or by the Borrower or any of the Subsidiaries and, except with respect to any such proceedings instituted by the Borrower or any of the Subsidiaries, shall not be discharged within sixty (60) days of said commencement;

(G)    A receiver or trustee shall be appointed for the Borrower or any of the Subsidiaries or for any substantial part of their respective assets, or any proceedings shall be instituted for the dissolution or the full or partial liquidation of the Borrower or any of the Subsidiaries, and except with respect to any such appointments requested or instituted by the Borrower or any of the Subsidiaries, such receiver or trustee shall not be discharged within sixty (60) days of his appointment, and except with respect to any such proceedings instituted by the Borrower or any of the Subsidiaries, such proceedings shall not be discharged within sixty (60) days of commencement, or the Borrower shall discontinue business or materially change the nature of its business;

(H)     The Borrower or any of the Subsidiaries shall suffer final judgments (which are not covered by insurance where the insurer has acknowledged coverage) for payment of money aggregating in excess of $5,000,000.00 and shall not discharge the same within a period of forty-

23

Exhibit 10.1

five (45) days unless, pending further proceedings, execution has not been commenced or, if commenced, has been effectively stayed; or

(I)    Failure by the Borrower to pay any amount of money or to observe exceeding
$250,000.00 or perform any other material covenant, condition or agreement which is the obligation of the Borrower to the Bank under any other existing or future note, mortgage or other document or instrument.

6.02   Acceleration.

At its option, and at any time, whether immediately or otherwise, the Bank may, upon the occurrence of any Event of Default, declare all Obligations of the Borrower to the Bank immediately due and payable without further action of any kind including, without limitation, notice, demand or presentment.

ARTICLE 7.0  THE BANK'S RIGHTS AND REMEDIES

7.01    The Bank's Rights Upon Default

Upon the occurrence of an Event of Default and at any time thereafter, the Bank, without presentment, demand, notice, protest or advertisement of any kind, will have the rights set forth in this Agreement and under applicable law.

7.02    Right of Set-Off.

Upon and after the occurrence of  an Event of Default, (A) the Borrower hereby authorizes the Bank, at any time and from time to time, without notice, which is hereby expressly waived by the Borrower, and whether or not the Bank shall have declared any credit subject hereto to be due and payable in accordance with the terms hereof, to set off against, and to appropriate and apply to the payment of, the Borrower's Obligations (whether matured or unmatured, fixed or contingent, liquidated or unliquidated), any and all amounts owing by the Bank to the Borrower (whether payable in U.S. dollars or any other currency, whether matured or unmatured, and in the case of deposits, whether general or special (except trust and escrow accounts), time or demand and however evidenced), and (B) pending any such action, to the extent necessary, to hold such amounts as collateral to secure such Obligations and to return as unpaid for insufficient funds any and all checks and other items drawn against any deposits so held as the Bank, in its sole discretion, may elect. The Borrower hereby grants to the Bank a security interest in all deposits and accounts maintained with the Bank to secure the payment of all Obligations of the Borrower to the Bank under this Agreement and all agreements, instruments and documents related to this Agreement. TO THE EXTENT PERMITTED BY LAW, ANY AND ALL RIGHTS TO REQUIRE THE BANK TO EXERCISE ITS REMEDIES WITH RESPECT TO ANY OTHER  COLLATERAL  WHICH  SECURES THE OBLIGATIONS PRIOR TO EXERCISING ITS RIGHT OF SET OFF WITH RESPECT TO SUCH DEPOSITS ARE HEREBY VOLUNTARILY, INTENTIONALLY, AND IRREVOCABLY WAIVED.

24

Exhibit 10.1

7.03    Cumulative Rights and Remedies

All rights and remedies of the Bank, whether provided for herein or in other agreements, instruments or documents or conferred by law, are cumulative and may be exercised alone or simultaneously.

7.04    Additional Rights and Remedies

(A)    Upon the occurrence of an Event of Default, all obligations on the part of the Bank to make advances under the Revolving Credit Note, if the Bank so elects upon written notice to the Borrower, shall cease and terminate, and, at the option of the Bank, both of the Notes shall become immediately due and payable, but the Bank may make any advances or portions of advances under the Revolving Credit Note, after the occurrence of any such Event of Default, without thereby waiving its right to demand payment of the Obligations and without becoming liable to make any other or further advances as hereinabove contemplated by this Agreement.

(B)    Upon the occurrence of an Event of Default, the rights, powers and privileges provided in this Sction 7.04, and all other remedies available to the Bank under this Agreement or at law or in equity, may be exercised by the Bank at any time and from time to time, whether or not the Obligations shall be due and payable, and whether or not the Bank shall have instituted any foreclosure proceedings or other action for the enforcement of its rights hereunder or under the Notes or any of the other Loan Documents.

ARTICLE 8.0  MISCELLANEOUS

8.01    Construction.

The provisions of this Agreement shall be in addition to those of any pledge or security agreement, note or other evidence of liability now or hereafter held by the Bank, all of which shall be construed as complementary to each other. Nothing herein contained shall prevent the Bank from enforcing any or all other pledge or security agreements, notes or other evidences of liability in accordance with their respective terms.

8.02    Further Assurance.

From time to time, the Borrower will execute and deliver to the Bank such additional documents and will provide such additional information as the Bank may reasonably require to carry out the terms of this Agreement and be informed of the status and affairs of the Borrower.

8.03    Enforcement and Waiver by the Bank.

The Bank shall have the right at all times to enforce the provisions of this Agreement and the other Loan Documents in strict accordance with the terms hereof and thereof, notwithstanding any conduct or custom on the part of the Bank in refraining from so doing at any time or times.   The failure of the Bank at any time or times to enforce its rights under such

25

Exhibit 10.1

provisions, strictly in accordance with the same, shall not be construed as, having created a custom in any way or manner contrary to specific provisions of this Agreement or as having in any way  or manner modified or waived the same. All rights and remedies of the Bank are cumulative and concurrent and the exercise of one right or remedy shall not be deemed a waiver or release of any other right or remedy.

8.04    Expenses of the Bank.

The Borrower shall pay on demand all expenses of the Bank in connection with the preparation, administration, default, collection, waiver or amendment of loan terms, or in connection with the Bank's exercise, preservation or enforcement of any of its rights, remedies or options hereunder, including, without limitation, reasonable fees of outside legal counsel, accounting, consulting, brokerage or other similar professional fees or expenses, and any fees or expenses associated with travel or other costs relating to any appraisals or examinations conducted in connection with this Agreement, the Notes, the other Loan Documents or any other collateral therefor, and the amount of all such expenses shall, until paid, bear interest at the rate applicable to principal under the Notes (including any default rate) and be an Obligation.

8.05    Notices.

Any notices or consents required or permitted by this Agreement shall be in writing and shall be deemed delivered if delivered in person or if sent by certified mail, postage prepaid, return receipt requested, facsimile or telegraph, as follows, unless such address is changed by written notice hereunder:

(A)    If to the Borrower:      IPG Photonics Corporation
50 Old Webster Road 
Oxford, MA 01540
Attention:  Chief Financial Officer

With a copy to:    IPG Photonics Corporation
50 Old Webster Road 
Oxford, MA 01540
Attention:  General Counsel

(B)      If to the Bank:        Bank of America, N.A. 
100 Federal Street
Boston, MA  02110
Attention: Robert C. Megan, Senior Vice President

With a copy to:    George W. Tetler III, Esquire 
Bowditch & Dewey, LLP
P.O. Box 15156 311 Main Street
Worcester, MA  01615-0156

26

Exhibit 10.1

Any party may change the address to which notices are to be sent to it by giving written notice of such change of address to the other party in the manner herein provided for giving notice. Any such notice, demand, request or other communication shall be deemed given when mailed as aforesaid.

8.06    Waiver and Indemnification by the Borrower.

To the maximum extent permitted by applicable Laws, the Borrower:

(A)    Waives (1) protest of all commercial paper  at any time held by the Bank for which the Borrower is in any way liable; (2) except as the same may herein be specifically granted, notice of acceleration and of intention to accelerate; and (3) notice and opportunity to be heard, after acceleration in the manner provided in Section 6.02, before exercise by the Bank of the remedies of self-help, set-off or of other summary procedures permitted by any applicable Laws or by any agreement  with the Borrower, and, except where required hereby or by any applicable Laws, notice of any other action taken by the Bank; and

(B)    Indemnifies the Bank and its officers, attorneys, agents and employees from all claims for loss or damage caused by any act or omission on the part of any of them except willful misconduct or gross negligence.

8.07    Participation; Right to Sell and/or Assign.

The Bank shall have the unrestricted right at any time and from time to time, and without the consent of the Borrower, to grant to one or more banks or other financial institutions (each, a "Participant") participating interests in the Bank's obligation to lend hereunder and any or all of the loans held by the Bank hereunder in minimum amounts of $5,000,000.00 each. In the event of any such grant by the Bank of a participating interest to a Participant, whether or not upon notice to the Borrower, the Bank shall remain responsible for the performance of its obligations hereunder and the Borrower shall continue to deal solely and directly with the Bank in connection with the Bank's rights and obligations hereunder. The Bank may furnish any information concerning the Borrower in its possession from time to time to prospective Participants, provided that the Bank shall require any such prospective Participant to agree in writing to maintain the confidentiality of such information.

The Bank shall have the unrestricted right at any time or from time to time, upon Borrower's consent, which consent shall not be unreasonably withheld, (provided that no such consent shall be required whenever an Event of Default exists) to assign all or any portion of its rights and obligations hereunder to one or more banks or other financial institutions (each, an "Assignee") in minimum amounts of $5,000,000.00 each or in any amount whenever an Event of Default exists and the Borrower agrees that it shall execute, or cause to be executed, such documents, including without limitation amendments to this Agreement and to any other documents, instruments and agreements executed in connection herewith as the Bank shall deem reasonably necessary to effect the foregoing. In addition, at the request of the Bank and any such Assignee, the Borrower shall issue one or more new promissory note(s), as applicable, to any such Assignee and, if the Bank has retained any of its rights and obligations hereunder following

27

Exhibit 10.1

such assignment, to the Bank, which new promissory note(s) shall be issued in replacement of, but not in discharge of, the liability evidenced by the promissory note held by the Bank prior to such assignment and shall reflect the amount of the respective commitments and loans held by such Assignee  and the Bank after giving effect to such assignment.   Upon the execution and delivery of appropriate assignment  documentation,  amendments  and any other documentation required by the Bank in connection with such assignment, and the payment by Assignee of the purchase price agreed to by the Bank and such Assignee, such Assignee shall be a party to this . Agreement and shall have all of the rights and obligations of the Bank hereunder (and under any and all other documents, instruments  and agreements  executed in connection herewith) to the extent  that  such  rights  and  obligations  have  been  assigned  by  the  Bank  pursuant  to  the assignment documentation between the Bank and such Assignee, and the Bank shall be released from its obligations hereunder and thereunder to a corresponding extent.  The Bank may furnish any information  concerning  the Borrower  in its possession  from time to time to prospective Assignees,  provided  that the Bank  shall require  any  such prospective  Assignees  to agree in writing to maintain the confidentiality of such information.

8.08   WAIVER OF JURY TRIAL.

EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER DOCUMENTS CONTEMPLATED HEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION AND (C) CERTIFIES THAT THIS WAIVER IS  KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE.

8.09    Applicable Law.

Except to the extent that any law of the United States may apply, this Agreement shall be governed and interpreted according to the laws of The Commonwealth of Massachusetts, without regard to any choice of law, rules or principles to the contrary. Nothing in this paragraph shall be construed to limit or otherwise affect any rights or remedies of the Bank under federal law.

8.10    Binding Effect, Assignment, and Entire Agreement.

This Agreement shall inure to the benefit of, and shall be binding Upon, the respective successors and permitted assigns of the parties hereto.  The Borrower has no right to assign any

28

Exhibit 10.1

of its rights or obligations hereunder without the prior written consent of the Bank. This Agreement, including the Exhibits hereto, all of which are hereby incorporated herein by reference, and the documents executed and delivered pursuant hereto, are intended by the parties as the final, complete and exclusive statement of the transaction evidenced by this Agreement. All prior or contemporaneous promises, agreements and understandings, whether oral or written, are deemed to be superseded by this Agreement, and no party is relying on any promise, agreement or understanding not set forth in this Agreement. This Agreement may not be amended or modified except by a written instrument describing such amendment or modification executed by the Borrower and the Bank.

8.11    Severability.

If any provision of this Agreement shall be held invalid under any applicable Laws, such invalidity shall not affect any other provision of this Agreement that can be given effect without the invalid provision, and, to this end, the provisions hereof are severable.

8.12    Counterparts.

This Agreement may be executed in as many counterparts as necessary or convenient, and by the different parties on separate counterparts each of which, when so executed, shall be deemed an original but all such counterparts shall constitute but one and the same instrument. Delivery of an executed counterpart of this Agreement (or of any agreement or document required by this Agreement and any amendment to this Agreement) by telecopy  or other electronic imaging means shall be as effective as delivery of a manually executed counterpart of this Agreement; provided, however, that the telecopy or other electronic image shall be promptly followed by an original if required by the Bank.

8.13    Replacement Notes.

Upon receipt of (i) an affidavit of an officer of the Bank as to the loss, theft, destruction or mutilation of either of the Notes or any other Loan Document which is not of public record, and (ii) an indemnity by the Bank in favor of the Borrower with respect to losses, claims or damage resulting therefrom and, in the case of any such loss, theft, destruction or mutilation, upon cancellation of such Note or other Loan Document, the Borrower will issue, in lieu thereof, a replacement Note or other Loan Document in the same principal amount thereof and otherwise of like tenor.

8.14    Return of Prior Note.

The Bank shall return to the Borrower in due course after the Closing, the Revolving Credit Note dated June 14, 2008, issued by the Borrower to the Bank in the face amount of $35,000,000.00.

8.15    Use of Proceeds

29

Exhibit 10.1

No portion of the proceeds of the Loans shall be used, in whole or in part, for the purpose of purchasing or carrying any "margin stock" as such term is defined in Regulation U of the Board of Governors of the Federal Reserve System.

8.16    Integration

This Agreement is intended by the parties as the final, complete and exclusive statement of the transactions evidenced by this Agreement. All prior or contemporaneous promises, agreements and understandings, whether oral or written, are deemed to be superseded by this Agreement, and no party is relying on any promise, agreement or understanding not set forth in this Agreement. This Agreement may not  be amended or modified except by a written instrument describing such amendment or modification executed by the Borrower and the Bank.

8.17   Restatement of Prior Agreement.

This Agreement is a restatement, in its entirety, of the Loan Agreement dated as of June 4, 2008, as amended, by and between the Bank and the Borrower, and any indebtedness outstanding thereunder shall be deemed to be outstanding under this Agreement. Nothing in this Agreement shall be deemed to be a repayment or novation of the indebtedness, or to release or otherwise adversely affect any lien, mortgage or security interest securing such indebtedness or any rights of the Bank against any guarantor, surety or other party primarily or secondarily liable for such indebtedness.

8.18    Government Sanctions.

(A)    The Borrower represents that neither the Borrower nor any Subsidiary (for purposes of this Section 8.18, individually a "Company" and collectively, the "Companies") or, to the knowledge of any Company, any director, officer, employee, agent, affiliate or representative of any Company, is an individual or entity (for purposes of this Section 8.18, "Person") currently the subject of any sanctions administered or enforced by the United States Government, including, without limitation, the U.S. Department of Treasury's Office of Foreign Assets Control, the United Nations Security Council, the European Union, Her Majesty's Treasury, or other relevant sanctions authority (collectively, "Sanctions"), nor is any Company located, organized or resident in a country or territory that is the subject of Sanctions.

(B)    The Borrower represents and covenants that it will not, directly or to its knowledge, indirectly, use the proceeds of the credit provided under this Agreement, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person, to fund any activities of or business with any Person, or in any country or territory, that, at the time of such funding, is, to the knowledge of the Borrower, the subject of Sanctions, or in any other manner that will result in a violation by any Person (including any Person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions.

{Signatures Appear on Following Page}

30

Exhibit 10.1

IN WITNESS WHEREOF, each of the parties hereto have duly caused this Agreement to be executed by its duly authorized representative as an instrument under seal as of the day and year first above written.

	
					
	 
	 
	 
	IPG PHOTONICS CORPORATION

	 
	 
	 
	 
	 

	/s/ Angelo P. Lopresti
	 
	By: /s/ Timothy P.V. Mammen

	Witness
	 
	 
	Name: Timothy P.V. Mammen

	Name: Angelo P. Lopresti
	 
	Title: Chief Financial Officer and Senior

	Title: General Counsel, Secretary
	 
	Vice President

	and Senior Vice President
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	By:/s/ Robert C. Megan

	Witness
	 
	 
	Name: Robert C. Megan

	 
	 
	 
	Title: Senior Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00244-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00244-of-00352.parquet"}]]