Document:

Exhibit 4.3

 

INDEMNITY AGREEMENT

 

This Indemnity Agreement is
given on and as of the date last shown below by the undersigned, Gary B. Sabin
(“GBS”), in favor of Excel Interfinancial Corporation, a California corporation
(“EIC”).

 

Recitals

 

1.                                       GBS in general partner of Excel Properties, Ltd.,
a California Limited Partnership (“Partnership”).

 

2.                                       The Partnership has dissolved, has wound up
its affairs and must, in accordance with the California Revised Limited
Partnership Act, file a Certificate of Cancellation of its Certificate of
Limited Partnership in order to complete its dissolution.

 

3.                                       In order to obtain such Certificate,
registrant must request and receive a Tax Clearance Certificate from the
California Franchise Tax Board.  As a
Condition to receiving a Certificate of Tax Clearance, another person must assume
the Partnership’s tax liability to the State of California, if any, as of the
date of the cancellation of the Partnership’s Certificate of Limited
Partnership.

 

4.                                       As an accommodation to the Partnership, EIC
has agreed to assume the Partnership’s tax liability as of the date its
Certificate of Limited Partnership is cancelled, provided, that GBS agrees to
indemnify and hold EIC harmless against any costs or loss incurred by reason of
the assumption.

 

NOW, THEREFORE, GBS agree as
follows:

 

1.                                       Indemnification.  GBS
hereby agrees to indemnify and hold EIC harmless against any loss, cost of
expense based on or arising from EIC’s assumption of the Partnership’s tax
liability by reason of its execution of that certain Request for Tax Clearance
Certificate (Form

 

 

3555L), dated on even date herewith,
submitted by the partnership to the California Franchise Tax Board.  Such loss or expense shall include, but not
be limited to, any costs or expenses incurred by EIC in connection with such
assumption, including attorneys’ fees.

 

2.                                       Obligation to Give Notice.  EIC
agrees to promptly give written notice to GBS of any demand, claim or request
for payment it receives in connection with its assumption of tax liability.

 

3.                                       Further Assurances.  The
parties agree to execute such additional documents or instruments as the other
may reasonably request to assure enforcement of this Agreement.

 

IN WITNESS WHEREOF, this
Agreement is executed on this 10 day of February, 2005, at San Diego,
California.

 

 

	
   

  	
  /s/ Gary B.
  Sabin

  	
   

  
	
   

  	
  Gary B. Sabin

  

 

2Exhibit 4.1

 

SECOND AMENDMENT TO

CREDIT AGREEMENT

 

This Second Amendment to Credit Agreement (“Amendment”)
dated as of February 7, 2005, is made with reference to the Credit
Agreement dated as of February 27, 2003, by and among NEW HORIZONS WORLDWIDE,
INC., a Delaware corporation (“Borrower”), the lenders that are party thereto
(the “Lenders”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Administrative
Agent”), as administrative agent for the Lenders (as amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”). Capitalized
terms used herein and not otherwise defined shall have the meanings set forth
for such terms in the Credit Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the
mutual covenants and benefits contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are acknowledged, Borrower,
the Lenders and the Administrative Agent agree as follows:

 

1.             Section 1.1 –
Defined Terms (New).  The following
defined terms are hereby added to Section 1.1 of the Credit Agreement as
follows:

 

“Acknowledgement
of Default and Waiver Agreement” means the Acknowledgement of Default and
Waiver Letter Agreement dated November 12, 2004, executed by Borrower and the
Administrative Agent.

 

“Amendment No. 2” means the Second
Amendment to Credit Agreement, dated as of February 7, 2005, by and among
Borrower and Wells Fargo, as Administrative Agent and sole Lender.

 

“Amendment No. 2 Effective Date” means
the “Effective Date” as defined in Amendment No. 2.

 

“Preferred Stock Issuance” has the
meaning set forth in Amendment No. 2.

 

“Requested Acquisition” has the
meaning set forth in Amendment No. 2.

 

“Requested Acquisition Documents” has
the meaning set forth in Amendment No. 2.

 

“Requested Acquisition Subordinated
Obligations “ means Subordinated Obligations in favor of the shareholders
of the target incurred in connection with the Requested Acquisition, which
Subordinated Obligations shall not exceed, in the aggregate, $500,000.

 

“Series A Stock” has the meaning set
forth in Amendment No. 2.

 

2.             Section 1.1 –
Defined Terms (Revised).  The
following defined terms contained in Section 1.1 of the Credit Agreement
are hereby amended in full as follows:

 

 

“Applicable Base Rate Margin” means,
with respect to any Base Rate Advance, 2.00%.

 

Distribution” means,
with respect to any equity interest or Security issued by a Person, or any
warrant or right to acquire any equity interest or Security of a Person, (a)
the retirement, redemption, purchase, or other acquisition for value by such
Person of any such equity interest or Security, (b) the declaration or (without
duplication) payment by such person of any dividend in Cash or in Property (other
than in Series A Stock, common stock or common member interest, as the
case may be, of such Person) on or with respect to any such equity interest or
Security, (c) any Investment by such Person in the holder of any such equity
interest or Security, and (d) any other payment by such Person constituting a
distribution under applicable Laws with respect to such equity interest or
Security.

 

“Term Maturity Date” means August 15,
2005.

 

3.             Section 3.1 (b) –
Interest Payments.  Section 3.1(b)
of the Credit Agreement is hereby amended in full to read as follows:

 

“(b)         Interest
accrued on each Base Rate Advance shall be due and payable monthly in arrears
on the first day of each calendar month. 
Except as otherwise provided in Section 3.7, the unpaid principal
amount of any Base Rate Advance shall bear interest at a fluctuating rate per
annum equal to the Base Rate plus the Applicable Base Rate Margin.  Each change in the interest rate under this Section
3.1(b) due to a change in the Base Rate shall take effect simultaneously
with the corresponding change in the Base Rate.”

 

4.             Section 3.1(d) and
(e) – Principal Payments.  Sections
3.1(d) and (e) of the Credit Agreement are hereby amended in full to
read as follows:

 

“(d)         If
not sooner paid, the principal Indebtedness evidenced by the Notes shall be
payable as follows:

 

(i)            [Reserved];

 

(ii)           [Reserved]; and

 

(iii)          the principal
Indebtedness evidenced by any series of Notes shall in any event be payable on
the applicable Maturity Date for such series of Notes.

 

(e)           The
principal Indebtedness evidenced by the Term Notes shall be prepaid on or
before the third Banking Day following the receipt by Borrower or any
Subsidiary of:  (i) Net Cash Sales
Proceeds from Dispositions by an amount equal to 100% of such Net Cash Sales
Proceeds in excess of $150,000; and (ii) Net Cash Issuance Proceeds from the
issuance of equity Securities of Borrower or any Subsidiary by an amount equal
to 50% of the amount by which such Net Cash Issuance Proceeds exceed $2,000,000
per annum; provided, however, that this

 

2

 

Section 3.1(e)(ii)
shall not apply to the Net Issuance Proceeds from the Preferred Stock Issuance
so long as such Net Issuance Proceeds are used in the manner set forth in Section
15 of Amendment No. 2.  In addition
to the foregoing, the principal Indebtedness evidenced by the Term Notes shall
be prepaid on or before the date which is fifty-five (55) days after the end of
each Fiscal Quarter of Borrower and its Subsidiaries (or, in the case of each
Fiscal Quarter of Borrower and its Subsidiaries ending on December 31, on or
before the date which is one hundred (100) days after the end of such Fiscal
Quarter) in an amount equal to 50% of Borrower’s Excess Cash Flow for such
Fiscal Quarter.  Any prepayment of the
Term Notes under this subsection shall be applied to principal coming due on
the Term Notes in inverse order of maturity.”

 

5.             New Sections 5.13.  Sections 5.13 is hereby added to the
Credit Agreement to read as follows:

 

“5.13       Cash
Balance Account.  Maintain, at all
times, a cash balance of not less than fifty percent (50%) of the outstanding
principal amount of all Advances in an account (the “Cash Balance Account”)
maintained by Borrower at Wells Fargo. 
This Section 5.13 shall fully amend and restate the provisions of
Section 3(c) of the Acknowledgement of Default and Waiver Agreement.”

 

6.             Section 6.5 –
Other Indebtedness.  Section 6.5
of the Credit Agreement is hereby amended in full to read as follows:

 

“6.5         Other
Indebtedness.  Create, incur, assume
or permit to exist any Indebtedness resulting from borrowings, loans or
advances, whether secured or unsecured, matured or unmatured, liquidated or
unliquidated, joint or several, except (a) the Obligations, (b) Indebtedness
owed to Borrower or any of its Subsidiaries, subject to the limitations on such
Indebtedness set forth in Section 6.7(b), (c) Indebtedness existing on
the Amendment No. 2 Effective Date and disclosed in Schedule 6.5, and
refinancings, renewals, extensions or amendments that do not increase the
amount thereof, (d) Indebtedness which arises from Earnout Payments provided
that such Earnout Payments are treated as Subordinated Obligations and (e)
Requested Acquisition Subordinated Obligations.”

 

7.             Section 6.8 –
Distributions.  Section 6.8 of
the Credit Agreement is hereby amended in full to read as follows:

 

“6.8         Distributions.  Declare or pay or make any Distribution,
whether from capital, income or otherwise, and whether in Cash or other
Property; provided, however, that so long as no Default or Event of Default
shall have occurred and be continuing, Borrower shall be permitted to make
Distributions payable pursuant to Section 3 of the Certificate of
Designation, Preferences and Rights of Series A Convertible Preferred Stock of
New Horizons Worldwide, Inc., dated February 7, 2005, (A) for the period ending
March 31, 2005 in an amount not to exceed $60,000, and (B) for the period
ending June 30, 2005 in an amount not to exceed $91,000.”

 

3

 

8.             Section 6.14 –
Funded Debt Ratio.  Section 6.14
of the Credit Agreement is hereby amended in full to read “[Reserved]” and
compliance with the Funded Debt Ratio shall no longer be required.

 

9.             Section 6.15 –
Debt Service Coverage Ratio.  Section
6.15 of the Credit Agreement is hereby amended in full to read “[Reserved]”
and compliance with the Debt Service Coverage Ratio shall no longer be
required.

 

10.           Section 6.16 –
Minimum Quarterly Adjusted EBITDA.  Section
6.16 of the Credit Agreement is hereby amended in full to read as follows:

 

“6.16       Minimum
Adjusted EBITDA.  Permit Adjusted
EBITDA, as of the last day of the fiscal periods set forth below, to be less
than the amount set forth opposite such fiscal period:

 

	
  Fiscal
  Period

  	
   

  	
  Minimum Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Commencing January 1, 2005 and ending March
  31, 2005

  	
   

  	
  $

  	
  400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Commencing January 1, 2005 and ending June
  30, 2005

  	
   

  	
  $

  	
  900,000

  	
  ”.

  

 

11.           Section 6.17 –
Minimum Cash.  Section 6.17 is
hereby amended in full to read “[Reserved]”. 
The requirements of Section 6.17 shall be replaced by the
requirements of the new Section 5.13.

 

12.           Exhibit B –
Compliance Certificate.  The
Compliance Certificate attached to the Credit Agreement as Exhibit B is
hereby amended in full in the form attached to the Amendment as Annex II.

 

13.           Schedule 6.5 – Existing
Indebtedness.  Schedule 6.5 to
the Credit Agreement is hereby amended in full to read as set forth on Annex
IV to this Amendment.

 

14.           Revolving Facility.  The Revolving Facility is hereby terminated,
the Revolving Commitments are hereby permanently reduced to zero and no
additional Letters of Credit shall be issued. 
Each of the parties hereto hereby agrees and acknowledges that, as of
the Effective Date, (a) the outstanding principal balance of all Revolving
Advances is zero and (b) the Aggregate Effective Amount of all issued and
outstanding Letters of Credit is $650,000. 
In the event that any drawing is made on any currently issued Letter of
Credit, Borrower hereby agrees and acknowledges that it shall comply with the
provisions of Section 2.5(d) of the Credit Agreement without giving
effect to Sections 2.5(e) and (f) of the Credit Agreement.

 

15.           Approval of
Acquisition and Preferred Stock Issuance.  
The Administrative Agent has been informed that, pursuant to the terms
of that certain Series A Stock Purchase Agreement (the “Stock Purchase
Agreement”), dated as of February 7, 2005, by and among Borrower and each of
the Investors referred to therein (the “Series A Shareholders”), Borrower
intends to issue 1,600,000 shares of its Series A Convertible Preferred Stock
(the “Series A

 

4

 

Stock”) for an
aggregate purchase price of $6,000,000 (the “Preferred Stock Issuance”), the
proceeds of which (the “Series A Proceeds”) will be used for (a) the
acquisition of an accredited post-secondary institution reasonably satisfactory
to the Lenders (the “Requested Acquisition”), which acquisition shall be
pursuant to the terms of an acquisition agreement (the “Acquisition Agreement”)
or similar documentation in form and substance reasonably satisfactory to the
Lenders and (b) general corporate purposes associated with development of the
business associated with the Requested Acquisition.  Notwithstanding any provisions contained in
the Loan Agreement to the contrary, subject to the terms and conditions set
forth in this Amendment, the Lenders hereby consent to the Preferred Stock
Issuance and the Requested Acquisition.

 

16.           Conditions to
Consent of Preferred Stock Issuance. 
The Lender’s consent to the Preferred Stock Issuance is subject to the
following conditions, each of which shall be satisfied in form and substance
reasonably satisfactory to the Lenders:

 

(a)           the
Preferred Stock Issuance shall have been completed in accordance with the terms
of the Stock Purchase Agreement, each of the other documents executed and
delivered in connection therewith (the “Stock Purchase Documents”) and all
applicable Laws, in each case in all material respects on or prior to February
10, 2005 and each of the Stock Purchase Documents shall be in form and
substance reasonably satisfactory to the Lenders;

 

(b)           the
Preferred Stock Issuance shall not create or result in the imposition of any
additional Indebtedness on behalf of the Borrower or its Subsidiaries or
create, establish or suffer to exist any Liens on the assets of the Borrower or
its Subsidiaries (i.e.: all obligations of Borrower with respect to the
Preferred Stock shall be unsecured);

 

(c)           the
Series A Proceeds shall be deposited into a deposit account in accordance with
the terms of the Security Agreement; and

 

(d)           satisfaction
of each conditions set forth in Section 22 hereof.

 

17.           Conditions to
Consent Requested Acquisition.  The
Lender’s consent to the Requested Acquisition is subject to the following
conditions, each of which shall be satisfied in form and substance reasonably
satisfactory to the Lenders

 

(a)           the
Requested Acquisition shall have been completed in accordance with the terms of
the Acquisition Agreement, each of the other documents executed and delivered
in connection therewith (the “Acquisition Documents”) and all applicable Laws,
in each case in all material respects, and each of the Acquisition Documents
shall be in form and substance reasonably satisfactory to the Lenders;

 

(b)           the
Requested Acquisition shall not create or result in the imposition of any
additional Indebtedness on behalf of the Borrower or its Subsidiaries (other
than Requested Acquisition Subordinated Obligations)  or create, establish or suffer to exist any
Liens on the assets of the Borrower or its Subsidiaries (i.e.: all obligations
of Borrower with respect to the Requested Acquisition, including, without
limitation, any Requested Acquisition Subordinated Obligations, shall be
unsecured);

 

5

 

(c)           the
purchase price of the Requested Acquisition, inclusive of any Requested
Acquisition Subordinated Obligations, shall not exceed $2,000,000;

 

(d)           Borrower
shall have delivered to the Administrative Agent, an Opinion of Counsel or
reliance thereon, with respect to the completion of the Requested Acquisition;

 

(e)           no
Default or Event of Default shall have occurred and be continuing; and

 

(f)            satisfaction
of each of the other terms and conditions set forth in this Amendment,
including, without limitation, the conditions set forth in Sections 16
and 22 hereof.

 

18.           Additional Covenants.  Borrower hereby covenants and agrees that:

 

(a)           Borrower
will not use the proceeds of the Preferred Stock Issuance for any purpose other
than as set forth in Section 15 of this Amendment;

 

(b)           not
later than the 20th of each calendar month, Borrower shall deliver
to the Administrative Agent consolidated income statements for Borrower and its
Subsidiaries with respect to the most recently completed calendar month, each
of which shall be in form and substance reasonably satisfactory to the
Administrative Agent; and

 

(c)           the
breach by Borrower of any provision of this Section 18 shall constitute
an immediate Event of Default under the Credit Agreement

 

19.           Waiver of Certain
Events of Default.  Pursuant to a
letter dated January 24, 2005, Borrower has informed the Administrative Agent
that it expects to be in violation of Section 6.14 (Funded Debt Ratio),
6.15 (Debt Service Coverage Ratio) and 6.16 (Minimum Adjusted EBITDA) of the
Credit Agreement, each for the Fiscal Quarter ended December 31, 2004 (the “Test
Date”), each of which will constitute an Event of Default under Section
9.1(c) of the Credit Agreement (the “Potential Defaults”).  Subject to the terms and conditions set forth
in this Amendment, the Lenders hereby unconditionally and irrevocably waive the
Potential Defaults.

 

20.           Reservation of
Rights.  The Potential Defaults are
not intended to be an exhaustive list of all Events of Default which have
occurred and remain continuing or which may occur in the future. The
Administrative Agent and the Lenders expressly reserve the right to declare additional
Events of Default, at their own discretion but subject to the terms of the
Credit Agreement, at such time as such additional Events of Default shall occur
and be continuing.  Each of the waivers
set forth in this Amendment are one-time waivers only and shall relate solely
to the specific provisions of the Credit Agreement and fiscal periods described
with respect thereto.

 

21.           Representations and
Warranties.  Borrower makes the
following representations and warranties to the Lenders as of the date hereof,
which representations and warranties shall survive the execution, termination
or expiration of this Amendment and shall continue in full force and effect
until the full and final satisfaction and discharge of all Obligations:

 

6

 

21.1         Reaffirmation of Prior
Representations and Warranties. 
Borrower hereby reaffirms and restates as of the date hereof, all of the
representations and warranties made by Borrower in the Credit Agreement and the
other Loan Documents, except to the extent such representations and
warranties specifically relate to an earlier date.

 

21.2         No Default.  After giving effect to this Amendment and the
waivers set forth herein, no Event of Default has occurred and remains
continuing under any of the Loan Documents.

 

21.3         Due Execution.  The execution, delivery and performance of
this Amendment and any instruments, documents or agreements executed in
connection herewith are within the powers of Borrower, have been duly
authorized by all necessary action, and do not contravene any law (except where
such contravention would not reasonably be expected to have a Material Adverse
Effect), the organizational documents of Borrower, or result in a breach of, or
constitute a default under, any material contractual restriction, indenture,
trust agreement or other instrument or agreement binding upon Borrower.

 

21.4         No Further Consent.  The execution, delivery and performance of
this Amendment and any documents or agreements executed in connection herewith
do not require any consent or approval not previously obtained of any member,
stockholder, beneficiary or creditor of Borrower.

 

21.5         Binding Agreement.  This Amendment, and each of the other
instruments, documents and agreements executed in connection herewith
constitute the legal, valid and binding obligation of Borrower or any of its
Subsidiaries and are enforceable against Borrower and such Subsidiaries in
accordance with their terms, except as such enforceability may be
limited by bankruptcy, insolvency, moratorium, reorganization or similar laws
or equitable principles relating to or limiting creditors’ rights generally.

 

22.           Conditions Precedent

 

This Amendment and Lender’s agreements set
forth herein shall become effective on such date as each of the following
conditions precedent shall have been satisfied in form and substance
satisfactory to the Lenders (the “Effective Date”):

 

22.1         Documentation.  Borrower shall have delivered or caused to be
delivered to the Administrative Agent, at Borrower’s sole cost and expense, the
following, each of which shall be originals and each in form and substance
satisfactory to the Administrative Agent:

 

(a)           this
Amendment executed by Borrower;

 

(b)           at
least one fully-executed original Consent of Guarantors/Security Parties in the
form of Annex I attached hereto;

 

(c)           with
respect to Borrower, such documentation as the Administrative Agent may
reasonably require to establish the due organization, valid existence and good
standing of each such Borrower, its qualification to engage in business in its
jurisdiction of organization, its authority to execute, deliver and perform

 

7

 

this Amendment, the identity, authority and
capacity of each Responsible Official thereof authorized to act on its behalf, including
certified copies of articles of incorporation and amendments thereto, articles
of organization and amendments thereto, operating agreements and amendments
thereto, bylaws and amendments thereto (or updates to such organizational
documents or representations that no amendments to such documents have been
made, as agreed to by the Administrative Agent), certificates of good standing,
certificates of corporate resolutions or limited liability company resolutions
or other applicable authorization documents, incumbency certificates,
Certificates of Responsible Officials, and the like;.

 

(d)           a
Certificate of Responsible Official of Borrower certifying that (i) attached
thereto are true, correct, complete and fully executed copies of the Stock
Purchase Documents and (ii) the Preferred Stock Issuance has been completed in
accordance with such documents and all applicable Laws;

 

(e)           an
Opinion of Counsel or reliance thereon, with respect to the completion of the
Preferred Stock Issuance; and

 

(f)            the
Acknowledgement of Series A Shareholders in the form of Annex III
attached hereto.

 

22.2         Representations and
Warranties.  All of Borrower’s
representations and warranties contained herein shall be true and correct on
and as of the date of execution hereof and no Event of Default shall have
occurred and be continuing under the Credit Agreement or any of the other Loan
Documents, as modified hereby.

 

22.3         Preferred Stock
Issuance.  The Preferred Stock
Issuance shall have been completed in accordance with the Stock Purchase
Documents and all applicable Laws and Borrower shall have received proceeds
thereof in any amount not less than $5,500,000 inclusive of all professional
expenses.

 

22.4         Cash Balance Account.  Borrower shall be in compliance with Section
5.13 of the Credit Agreement.

 

23.           Miscellaneous

 

23.1         No Third Parties.  Except as specifically provided herein,
no third party shall be benefited by any of the provisions of this Amendment;
nor shall any such third party have the right to rely in any manner upon any of
the terms hereof, and none of the covenants, representations, warranties or
agreements herein contained shall run in favor of any third party.

 

23.2         Costs and Expenses.  In addition to the obligations of Borrower
under the Loan Documents, Borrower agrees to pay all costs and expenses
(including without limitation reasonable attorneys’ fees) expended or incurred
by the Lenders and the Administrative Agent in connection with the negotiation,
documentation and preparation of this Amendment and any other documents
executed in connection herewith, and in carrying out the terms of this
Amendment, whether incurred before or after the effective date hereof.

 

8

 

23.3         Integration;
Interpretation.  The Loan Documents,
including this Amendment and the documents, instruments and agreements executed
in connection herewith, contain or expressly incorporate by reference the
entire agreement of the parties with respect to the matters contemplated herein
and supersede all prior negotiations, discussions and correspondence.

 

23.4         Counterparts and
Execution.  This Amendment may be
executed in counterparts, each of which shall be deemed an original, and all of
which together shall constitute one and the same instrument.

 

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

 

23.6         Non-Impairment of Loan
Documents.  On the date all
conditions precedent set forth herein are satisfied in full, this Amendment
shall be a part of the Credit Agreement to the extent of the amendments to the
Credit Agreement effected hereby.  Except
as expressly provided in this Amendment or in any other document, instrument or
agreement executed by any Lender or the Administrative Agent, all provisions of
the Loan Documents (including, without limitation, the Acknowledgement of Default
and Waiver Agreement) shall remain in full force and effect, and the Lenders
and the Administrative Agent shall continue to have all its rights and remedies
under each such Loan Document.

 

[ THIS SPACE INTENTIONALLY LEFT BLANK –

 

SIGNATURE PAGE TO FOLLOW]

 

9

 

IN WITNESS WHEREOF, this Amendment has been duly
executed as of the date first set forth above.

 

	
   

  	
  NEW HORIZONS WORLDWIDE, INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/Thomas J. Bresnan

  	
   

  
	
   

  	
   

  	
  Name: Thomas
  J. Bresnan

  
	
   

  	
   

  	
  Title:
  President/Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK, NATIONAL ASSOCIATION, as

  Administrative Agent and as the sole Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/Terri Le

  	
   

  
	
   

  	
   

  	
  Name: Terri
  Le

  
	
   

  	
   

  	
  Title:
  Relationship Manager

  

 

S-1

 

Annex I

 

Consent of
Guarantors/Security Parties

 

Reference is made to that certain Credit Agreement
dated as of February 27, 2003 by and among New Horizons Worldwide, Inc., a
Delaware corporation (“Borrower”), the lenders that are party thereto (the “Lenders”),
and Wells Fargo Bank, National Association (the “Administrative Agent”), as
administrative agent for the Lenders (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”). Capitalized terms used
herein and not otherwise defined shall have the meanings set forth for such
terms in the Credit Agreement.

 

Each of the undersigned hereby consents to the
execution, delivery and performance of the foregoing Second Amendment to Credit
Agreement.

 

Each of the undersigned represents and warrants to the
Lenders that the Loan Documents entered into by such party remain in full force
and effect in accordance with their terms.

 

This Consent may be executed in counterparts, each of
which shall be deemed an original, and all of which together shall constitute
one and the same instrument.  The failure
of one of the parties listed below to sign this Consent shall not affect the
validity of the execution of this Consent by any other of the parties listed
below.

 

IN WITNESS WHEREOF, each of the undersigned has
executed this Consent of Guarantors/Security Parties by its duly authorized
officer as of this 7th day of February 2005.

 

“Guarantors/Security Parties”

 

NEW HORIZONS EDUCATION CORPORATION,

a Delaware corporation

 

NEW HORIZONS COMPUTER LEARNING CENTER OF ALBUQUERQUE, INC., a Delaware
corporation

 

NEW HORIZONS COMPUTER LEARNING CENTER OF MEMPHIS, INC., a Delaware
corporation

 

NEW HORIZONS COMPUTER LEARNING CENTER OF CHARLOTTE, INC., a Delaware
corporation

 

NEW HORIZONS COMPUTER LEARNING CENTER OF SANTA ANA, INC., a Delaware
corporation

 

NHCLC OF SAN ANTONIO, INC., a Delaware corporation

 

I-1

 

NOVA VISTA, L.L.C., a Delaware limited liability company

 

NEW HORIZONS COMPUTER LEARNING CENTER OF HARTFORD, INC., a Delaware
corporation

 

NEW HORIZONS COMPUTER LEARNING CENTER OF CHICAGO, INC., a Delaware
corporation

 

NEW HORIZONS COMPUTER LEARNING CENTER OF DENVER, INC., a Delaware
corporation

 

NEW HORIZONS COMPUTER LEARNING CENTER OF NASHVILLE, INC., a Delaware
corporation

 

NEW HORIZONS COMPUTER LEARNING CENTER OF SACRAMENTO, INC., a Delaware
corporation

 

NEW HORIZONS COMPUTER LEARNING CENTER OF METROPOLITAN NEW YORK, INC., a
Delaware corporation

 

NEW HORIZONS COMPUTER LEARNING CENTER OF CLEVELAND LTD., L.L.C., a
Delaware limited liability company

 

NEW HORIZONS COMPUTER LEARNING CENTERS, INC., a California corporation

 

NEW HORIZONS COMPUTER LEARNING CENTERS EMEA, L.L.C., a Delaware limited
liability company

 

NEW HORIZONS COMPUTER LEARNING CENTERS APAC, L.L.C., a Delaware limited
liability company

 

NEW HORIZONS COMPUTER LEARNING CENTER OF INDIANAPOLIS, LLC, an Indiana
limited liability company

 

NEW HORIZONS COMPUTER LEARNING CENTER OF INDIANAPOLIS, INC., a Delaware
corporation

 

I-2

 

NEW HORIZONS COMPUTER LEARNING CENTER OF ATLANTA, INC., a Delaware
corporation

 

 

	
   

  	
  By:

  	
    /s/Thomas J. Bresnan

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
    Thomas
  J. Bresnan, Chief Executive Officer

  
	
   

  	
   

  	
  [Printed Name and Title]

  

 

I-3

 

Annex II

 

Exhibit B – Compliance Certificate 

 

II-1

 

Annex III

 

Acknowledgement of Series A Shareholders

 

III-1

 

Annex IV

 

Schedule 6.5

 

IV-1

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