Document:

Second Amended and Restated Loan Agreement

 Exhibit 10.1 
 Second Amended and Restated Loan Agreement 
 between 
 WACHOVIA CAPITAL FINANCE CORPORATION (CENTRAL) 
 as Lender and US Collateral Agent 
 and 
 MAD CATZ, INC. 
 as Borrower 
 October 30, 2006 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 SECTION 1
	  	DEFINITIONS	  	2
	 1.1
	  	“Acceptable Liquidation Agreement”	  	2
	 1.2
	  	“Accounts”	  	3
	 1.3
	  	“Acquisition”	  	3
	 1.4
	  	“Approved In-Transit Inventory”	  	3
	 1.5
	  	“Availability Reserves”	  	3
	 1.6
	  	“Blocked Accounts”	  	3
	 1.7
	  	“Borrower”	  	4
	 1.8
	  	“Borrower General Security Agreement”	  	4
	 1.9
	  	“Business Day”	  	4
	 1.10
	  	“Canadian Collateral Agent”	  	4
	 1.11
	  	“Code”	  	4
	 1.12
	  	“Collateral”	  	4
	 1.13
	  	“EBITDA”	  	4
	 1.14
	  	“Eligible Accounts”	  	5
	 1.15
	  	“Eligible Inventory”	  	7
	 1.16
	  	“EMU Legislation”	  	7
	 1.17
	  	“Environmental Laws”	  	7
	 1.18
	  	“Equipment”	  	8
	 1.19
	  	“ERISA”	  	8
	 1.20
	  	“ERISA Affiliate”	  	8
	 1.21
	  	“Euro”	  	8
	 1.22
	  	“Event of Default”	  	8
	 1.23
	  	“Excess Availability”	  	8
	 1.24
	  	“Exchange Equivalent”	  	9
	 1.25
	  	“Financing Agreements”	  	9
	 1.26
	  	“Fiscal Quarter”	  	9
	 1.27
	  	“GAAP”	  	9
	 1.28
	  	“Gameshark Software”	  	9
	 1.29
	  	“Hazardous Materials”	  	9
	 1.30
	  	“Information Certificates”	  	10
	 1.31
	  	“Intellectual Property Security Agreements”	  	10
	 1.32
	  	“Interest Rate”	  	10
	 1.33
	  	“Inventory”	  	10
	 1.34
	  	“Lender”	  	10
	 1.35
	  	“Letter of Credit Accommodations”	  	11
	 1.36
	  	“Lien”	  	11
	 1.37
	  	“Material Adverse Change”	  	11
	 1.38
	  	“Material Adverse Effect”	  	11
	 1.39
	  	“Maximum Credit”	  	11
	 1.40
	  	“Maximum Letter of Credit Facility”	  	11

					
	 	  	 	  	Page
	 1.41
	  	“MCC”	  	12
	 1.42
	  	“MCE”	  	12
	 1.43
	  	“MCII”	  	12
	 1.44
	  	“MCIA”	  	12
	 1.45
	  	“Net Amount of Eligible Accounts”	  	12
	 1.46
	  	“Net Orderly Liquidation Value”	  	12
	 1.47
	  	“Obligations”	  	12
	 1.48
	  	“Obligor”	  	13
	 1.49
	  	“Participating Member State”	  	13
	 1.50
	  	“Payment Account”	  	13
	 1.51
	  	“Permitted Inter-Company Debt”	  	13
	 1.52
	  	“Person”	  	13
	 1.53
	  	“Pounds Sterling”	  	14
	 1.54
	  	“PPSA”	  	14
	 1.55
	  	“Prime Rate”	  	14
	 1.56
	  	“Records”	  	14
	 1.57
	  	“Renewal Date”	  	14
	 1.58
	  	“Revolving Loans”	  	14
	 1.59
	  	“Royalty Reserve”	  	14
	 1.60
	  	“Royalty Reserve Report”	  	14
	 1.61
	  	“Software”	  	15
	 1.62
	  	“Software Inventory”	  	15
	 1.63
	  	“Solvent”	  	15
	 1.64
	  	“Spot Rate”	  	15
	 1.65
	  	“UCC”	  	15
	 1.66
	  	“United Kingdom”	  	15
	 1.67
	  	“US Collateral Agent”	  	16
	 1.68
	  	“US Reference Bank”	  	16
	 1.69
	  	“Value”	  	16
			
	 SECTION 2
	  	CREDIT FACILITIES	  	16
	 2.1
	  	Revolving Loans	  	16
	 2.2
	  	Letter of Credit Accommodations	  	18
	 2.3
	  	Availability Reserves	  	20
			
	 SECTION 3
	  	INTEREST AND FEES	  	20
	 3.1
	  	Interest	  	20
	 3.2
	  	Commitment Fee	  	20
	 3.3
	  	Closing Fee	  	20
	 3.4
	  	Servicing Fee	  	21
	 3.5
	  	Unused Line Fee	  	21
	 3.6
	  	Currency of Payments	  	21
			
	 SECTION 4
	  	CONDITIONS PRECEDENT	  	21
	 4.1
	  	Conditions Precedent to Revolving Loans and Letter of Credit Accommodations	  	21

  

 - ii - 

					
	 	  	 	  	Page
	 SECTION 5
	  	COLLECTION AND ADMINISTRATION	  	22
	 5.1
	  	Borrower’s Loan Account	  	22
	 5.2
	  	Statements	  	22
	 5.3
	  	Collection of Accounts	  	22
	 5.4
	  	Payments	  	23
	 5.5
	  	Authorization to Make Revolving Loans	  	24
	 5.6
	  	Use of Proceeds	  	24
			
	 SECTION 6
	  	COLLATERAL REPORTING AND COVENANTS	  	24
	 6.1
	  	Collateral Reporting	  	24
	 6.2
	  	Accounts Covenants	  	25
	 6.3
	  	Inventory Covenants	  	26
	 6.4
	  	Equipment Covenants	  	27
	 6.5
	  	Power of Attorney	  	27
	 6.6
	  	Right to Cure	  	28
	 6.7
	  	Access to Premises	  	28
			
	 SECTION 7
	  	REPRESENTATIONS AND WARRANTIES	  	29
	 7.1
	  	Corporate Existence, Power and Authority; Subsidiaries	  	29
	 7.2
	  	Financial Statements; No Material Adverse Change	  	29
	 7.3
	  	Chief Executive Office; Collateral Locations and License Agreements	  	30
	 7.4
	  	Priority of Liens; Title to Properties	  	30
	 7.5
	  	Tax Returns	  	30
	 7.6
	  	Litigation	  	30
	 7.7
	  	Compliance with Other Agreements and Applicable Laws	  	31
	 7.8
	  	Bank Accounts	  	31
	 7.9
	  	Accuracy and Completeness of Information	  	31
	 7.10
	  	Employee Benefits	  	31
	 7.11
	  	Environmental Compliance	  	32
	 7.12
	  	Survival of Warranties; Cumulative	  	33
			
	 SECTION 8
	  	AFFIRMATIVE AND NEGATIVE COVENANTS	  	33
	 8.1
	  	Maintenance of Existence	  	33
	 8.2
	  	New Collateral Locations	  	33
	 8.3
	  	Compliance with Laws, Regulations, Etc.	  	34
	 8.4
	  	Payment of Taxes and Claims	  	35
	 8.5
	  	Insurance	  	35
	 8.6
	  	Financial Statements and Other Information	  	36
	 8.7
	  	Sale of Assets, Consolidation, Merger, Amalgamation, Dissolution, Etc.	  	37
	 8.8
	  	Encumbrances	  	38
	 8.9
	  	Indebtedness	  	38
	 8.10
	  	Loans, Investments, Guarantees, Etc.	  	39
	 8.11
	  	Dividends and Redemptions	  	40
	 8.12
	  	Transactions with Affiliates	  	40
	 8.13
	  	EBITDA	  	40
	 8.14
	  	Intellectual Property	  	41
	 8.15
	  	Additional Bank Accounts	  	41

  

 - iii - 

					
	 	  	 	  	Page
	 8.16
	  	Compliance with ERISA	  	41
	 8.17
	  	Costs and Expenses	  	42
	 8.18
	  	Further Assurances	  	42
	 8.19
	  	Change of Control	  	43
	 8.20
	  	Software Expenditures	  	43
			
	 SECTION 9
	  	EVENTS OF DEFAULTS AND REMEDIES	  	43
	 9.1
	  	Events of Default	  	43
	 9.2
	  	Remedies	  	45
			
	 SECTION 10
	  	JURY TRIAL WAIVER; OTHER WAIVERS AND CONSENTS; GOVERNING LAW	  	47
	 10.1
	  	Governing Law; Choice of Forum; Service of Process; Jury Trial Waiver	  	47
	 10.2
	  	Waiver of Notices	  	48
	 10.3
	  	Amendments and Waivers	  	49
	 10.4
	  	Waiver of Counterclaims	  	49
	 10.5
	  	Indemnification	  	49
			
	 SECTION 11
	  	TERM OF AGREEMENT; MISCELLANEOUS	  	50
	 11.1
	  	Term	  	50
	 11.2
	  	Notices	  	51
	 11.3
	  	Partial Invalidity	  	51
	 11.4
	  	Successors	  	51
	 11.5
	  	Entire Agreement	  	51
	 11.6
	  	Headings	  	52
	 11.7
	  	Judgment Currency	  	52
	 11.8
	  	Amended and Restatement; No Novation	  	52
	 11.9
	  	Confirmation of Existing Security	  	52

  

 - iv - 

 INDEX TO EXHIBITS AND SCHEDULES 
  

			
	 Exhibit A
	  	Information Certificates of Borrower and Obligors
		
	 Exhibit B
	  	 Closing Checklist

		
	 Schedule 7.3
	  	 License Agreements

		
	 Schedule 7.4
	  	 Existing Liens

		
	 Schedule 7.7
	  	 Non-Compliance

		
	 Schedule 7.8
	  	 Bank Accounts

		
	 Schedule 8.6(g)        
	  	 Form of Compliance Certificate

		
	 Schedule 8.9
	  	 Existing Indebtedness

		
	 Schedule 8.10
	  	 Existing Loans, Advances and Guarantees

		
	 Schedule 8.13
	  	 EBITDA

 [The exhibits and schedules listed above have been omitted. A copy of the omitted exhibits and schedules will
be furnished to the Securities and Exchange Commission upon its request.] 

 SECOND AMENDED AND RESTATED LOAN AGREEMENT 
 This Second Amended and Restated Loan Agreement dated as of October 30, 2006 (this “Agreement”) is entered into by and between
Wachovia Capital Finance Corporation (Central), formerly known as Congress Financial Corporation (Central), an Illinois corporation (as lender, “Lender”; and as US collateral agent, “US Collateral Agent”), and Mad
Catz, Inc., a Delaware corporation (“Borrower”). 
 W I T N E S S E T H: 
 WHEREAS Lender entered into certain financing arrangements with Borrower pursuant to which Lender made loans and provided other financial accommodations
to Borrower on the terms and conditions set forth in a loan agreement dated September 25, 2000 (the “Original Loan Agreement”) made between Lender, US Collateral Agent and Borrower; 
 AND WHEREAS Lender, US Collateral Agent and Borrower amended the Original Loan Agreement and, for ease of reference, restated such amended Original Loan
Agreement in a first amended and restated loan agreement dated September 5, 2001 (the “First Amended and Restated Loan Agreement”) between Lender, US Collateral Agent and Borrower; 
 AND WHEREAS Lender, US Collateral Agent and Borrower amended or extended, as the case may be, the First Amended and Restated Loan Agreement pursuant to:

 (a) an amending agreement dated June 18, 2002; 
 (b) a second amending agreement dated January 22, 2003; 
 (c) a renewal/extension letter dated
July 23, 2003; 
 (d) an acknowledgment letter dated September 22, 2003; 
 (e) a renewal/extension letter dated July 27, 2004; 
 (f) an amending and extension letter dated August 31, 2005; 
 (g) a third amending agreement dated
August 9, 2006; 
 (h) an extension letter dated September 20, 2006; 
 (i) an extension letter dated September 28, 2006; and 
 (j) an extension letter dated October 16, 2006, 
 (the foregoing amendments and extensions together with the First
Amended and Restated Loan Agreement, the “Loan Agreement”); 

 AND WHEREAS Lender, US Collateral Agent and Borrower have, without novation, agreed to amend and restate
the Loan Agreement as hereinafter provided; 
 AND WHEREAS Borrower, each Obligor, Lender and US Collateral Agent have confirmed to each
other that the security, guarantees and other agreements provided by Borrower and each Obligor in connection with the Loan Agreement remain in full force and effect, and continue as security for the indebtedness and the obligations of Borrower and
each Obligor to Lender under this Agreement and the other Financing Agreements; 
 NOW, THEREFORE, in consideration of the mutual conditions
and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
 SECTION 1 DEFINITIONS 
 All terms used herein which are defined in Article 1 or Article 9
of the UCC shall have the meanings given therein unless otherwise defined in this Agreement. All references to the plural herein shall also mean the singular and to the singular shall also mean the plural unless the context otherwise requires. All
references to Borrower, Lender and US Collateral Agent pursuant to the definitions set forth in the recitals hereto, or to any other person herein, shall include their respective successors and assigns. The words “hereof”,
“herein”, “hereunder”, “this Agreement” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not any particular provision of this Agreement and as
this Agreement now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced. The word “including” when used in this Agreement shall mean “including, without limitation”.
References herein to any statute or any provision thereof include such statute or provision as amended, revised, re-enacted, and/or consolidated from time to time and any successor statute thereto. An Event of Default shall exist or continue or be
continuing until such Event of Default is waived in accordance with Section 10.3 hereof or is cured in a manner satisfactory to Lender, if such Event of Default is capable of being cured as determined by Lender. Any accounting term used herein
unless otherwise defined in this Agreement shall have the meanings customarily given to such term in accordance with GAAP. The term “US Dollars” and the sign “$” mean lawful money of the United States of America.
The term “Canadian Dollars” and the sign “CDN$” mean lawful money of Canada. For purposes of this Agreement, the following terms shall have the respective meanings given to them below: 
  

	1.1	“Acceptable Liquidation Agreement” 

 “Acceptable
Liquidation Agreement” shall mean, with respect to any license of intellectual property between Borrower, as licensee, and the licensor of such intellectual property which pertains to any Collateral, (i) an agreement in form and substance
satisfactory to Lender or (ii) an amendment to such license agreement in form and substance satisfactory to Lender, in each case permitting Lender to exercise its rights under this Agreement with respect to such Collateral. 
  

 - 2 - 

	1.2	“Accounts” 

 “Accounts” shall mean all present
and future rights of Borrower, MCE and MCC to payment for goods sold or leased or for services rendered, which are not evidenced by instruments or chattel paper, and whether or not earned by performance. 
  

	1.3	“Acquisition” 

 “Acquisition” shall mean any
transaction whereby Borrower will acquire assets, shares or other equity interest, or a combination thereof, of a business identified by Borrower as a strategic acquisition target pursuant to terms and conditions acceptable to Lender and in respect
of which Borrower has received the prior written consent of Lender. 
  

	1.4	“Approved In-Transit Inventory” 

 “Approved
In-Transit Inventory” shall mean Inventory that is owned and insured by Borrower and is in transit from and is under the control of MCIA to premises located in North America or Europe that are owned or controlled by Borrower and in respect of
which Lender has received sufficient documentation, including bills of lading and shipping contracts, in each case assigned to Lender, to confirm the foregoing; provided that the maximum value of such Inventory does not exceed $6,000,000 at
any time during the month of November and does not exceed $4,000,000 at any time other than during the month of November. 
  

	1.5	“Availability Reserves” 

 “Availability
Reserves” shall mean, as of any date of determination, the Royalty Reserve and such amounts as Lender may from time to time establish and revise reducing the amount of Revolving Loans and Letter of Credit Accommodations which would otherwise be
available to Borrower under the lending formula(s) provided for herein: (a) to reflect events, conditions, contingencies or risks (including anticipated seasonal variations in dilution of Accounts) which, as determined by Lender, do or may
affect either (i) the Collateral or any other property which is security for the Obligations or its value, (ii) the assets, business or prospects of Borrower or any Obligor or (iii) the Liens and other rights of Lender and/or US
Collateral Agent in the Collateral (including the enforceability, perfection and priority thereof) or (b) to reflect Lender’s belief that any collateral report or financial information furnished by or on behalf of Borrower or any Obligor
to Lender is or may have been incomplete, inaccurate or misleading in any material respect or (c) to reflect outstanding Letter of Credit Accommodations as provided in Section 2.2 hereof or (d) in respect of any state of facts which
Lender determines constitutes an Event of Default or may, with notice or passage of time or both, constitute an Event of Default (including rents or other payments due and unpaid or which Lender reasonably expects will not be paid when due).

  

	1.6	“Blocked Accounts” 

 “Blocked Accounts” shall have the meaning set forth in Section 5.3 hereof. 
  

 - 3 - 

	1.7	“Borrower” 

 “Borrower” shall have the meaning set forth in the preamble hereof. 
 1.8 “Borrower General Security Agreement”

 “Borrower General Security Agreement” shall mean the amended and restated general security agreement dated November 30, 2001 given by
Borrower (and certain U.S. affiliates of Borrower named therein) in favor of US Collateral Agent in respect of the Obligations, as it now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced.

  

	1.9	“Business Day” 

 “Business Day” shall mean a day
(other than a Saturday, Sunday or statutory holiday in Ontario, Illinois or New York) on which Lender’s Chicago and Toronto office, the U.S. Reference Bank’s main office and banks in New York City and Toronto are open for business in the
normal course. 
  

	1.10	“Canadian Collateral Agent” 

 “Canadian Collateral
Agent” shall mean Wachovia Capital Finance Corporation (Canada), formerly known as Congress Financial Corporation (Canada), in its capacity as collateral agent for Lender, and its successors and assigns. 
  

	1.11	“Code” 

 “Code” shall mean the Internal Revenue
Code of 1986, as the same now exists or may from time to time hereafter be amended, modified, recodified or supplemented, together with all rules, regulations and interpretations thereunder or related thereto. 
  

	1.12	“Collateral” 

 “Collateral” shall mean,
collectively, “Collateral” as such term is defined in the Borrower General Security Agreement and in the Intellectual Property Security Agreements and all assets and undertakings of each Obligor in respect of which Lender and/or US
Collateral Agent and/or Canadian Collateral Agent is or has been granted a Lien pursuant to any Financing Agreement. 
  

	1.13	“EBITDA” 

 “EBITDA” shall mean, as to any
Person, with respect to any period, an amount equal to the net income of such Person for such period determined in accordance with GAAP, plus or minus, to the extent deducted or added in determining such net income for such period, and without
duplication: 
 (a) interest paid or payable or received or receivable; 
 (b) income taxes paid or payable or refunds received or receivable in respect of income taxes; and 
  

 - 4 - 

 (c) depreciation and amortization expenses. 
  

	1.14	“Eligible Accounts” 

 “Eligible Accounts” shall
mean Accounts created by Borrower, MCE or MCC which are and continue to be acceptable to Lender based on the criteria set forth below. In general, Accounts shall be Eligible Accounts if: 
 (a) such Accounts arise from the actual and bona fide sale and delivery of goods by Borrower, MCE or MCC or rendition of services by Borrower, MCE
or MCC in the ordinary course of their respective businesses which transactions are completed in accordance with the terms and provisions contained in any documents related thereto; 
 (b) such Accounts are not unpaid more than ninety (90) days after the date of the original invoice for them and are not unpaid more than sixty
(60) days past the due date thereof; 
 (c) such Accounts comply with the terms and conditions contained in Section 6.2(c) of this
Agreement; 
 (d) such Accounts do not arise from sales on consignment, guaranteed sale, sale and return, sale on approval, or other terms
under which payment by the account debtor may be conditional or contingent; 
 (e) the chief executive office of the account debtor with
respect to such Accounts is located in Canada, the United States of America or the United Kingdom or, if the chief executive office of the account debtor is not located in Canada, the United States of America or the United Kingdom, the Account is
payable in Canadian Dollars, US Dollars, Pounds Sterling or Euro, and, at Lender’s option, if: (i) the account debtor has delivered to Borrower, MCE or MCC, as applicable, an irrevocable letter of credit issued or confirmed by a bank
satisfactory to Lender and payable only in the United States of America in the currency in which the Account is denominated, sufficient to cover such Account, in form and substance satisfactory to Lender and, if required by Lender, the original of
such letter of credit has been delivered to Lender or Lender’s agent and the issuer thereof notified of the assignment of the proceeds of such letter of credit to Lender, or (ii) such Account is subject to credit insurance payable to
Lender issued by an insurer and on terms and in an amount acceptable to Lender, or (iii) such Account is otherwise acceptable in all respects to Lender (subject to such lending formula with respect thereto as Lender may determine); 

(f) such Accounts do not consist of progress billings, bill and hold invoices or retainage invoices, except as to bill and hold invoices, unless
Lender shall have received an agreement in writing from the account debtor, in form and substance satisfactory to Lender, confirming the unconditional obligation of the account debtor to take the goods related thereto and pay such invoice;

 (g) the account debtor with respect to such Accounts has not asserted a counterclaim, defense or dispute and does not have, and does not
engage in transactions which may give rise to, any right of setoff against such Accounts (but the portion of the Accounts of such account debtor in excess of the amount at any time and from time to time owed by Borrower, MCE or 

  

 - 5 - 

 
MCC, as applicable, to such account debtor or claimed owed by such account debtor may be deemed Eligible Accounts); 
 (h) there are no facts, events or occurrences which would impair the validity, enforceability or collectability of such Accounts or reduce the amount
payable or delay payment thereunder; 
 (i) such Accounts are subject to the first priority, valid and perfected Lien of Lender and/or US
Collateral Agent and any goods giving rise thereto are not, and were not at the time of the sale thereof, subject to any Liens except those permitted in this Agreement; 
 (j) neither the account debtor nor any officer or employee of the account debtor with respect to such Accounts is an officer, employee or agent of or affiliated with Borrower, MCE or MCC directly or indirectly by
virtue of family membership, ownership, control, management or otherwise; 
 (k) the account debtors with respect to such Accounts are not
any foreign government, the United States of America, any State, political subdivision, department, agency or instrumentality thereof, unless, if the account debtor is the United States of America, any State, political subdivision, department,
agency or instrumentality thereof, upon Lender’s request, the Federal Assignment of Claims Act of 1940, as amended or any similar State or local law, if applicable, has been complied with in a manner satisfactory to Lender or a letter of credit
has been provided with respect thereto on terms and conditions satisfactory to Lender; 
 (l) there are no proceedings or actions which are
threatened or pending against the account debtors with respect to such Accounts which might result in any material adverse change in any such account debtor’s financial condition; 
 (m) such Accounts of a single account debtor or its affiliates do not constitute more than twenty-five percent (25%) of all otherwise Eligible
Accounts or, with respect to each of Electronics Boutique/Gamestop and Walmart, such Accounts do not constitute more than forty percent (40%) or such higher percentage as may be agreed by Lender of all otherwise Eligible Accounts or, with
respect to such other account debtors as may from time to time be approved in writing by Lender on a case by case basis, such Accounts do not constitute more than such percentage in excess of twenty-five percent (25%) as may be agreed by Lender
of all otherwise Eligible Accounts of such account debtor (but in each case the portion of the Accounts not in excess of such percentage may be deemed Eligible Accounts); 
 (n) such Accounts are not owed by an account debtor who has Accounts unpaid more than ninety (90) days after the date of the original invoice for them which constitute more than fifty percent (50%) of the
total Accounts of such account debtor; 
 (o) such Accounts are owed by account debtors whose total indebtedness to Borrower, MCE or MCC does
not exceed the credit limit with respect to such account debtors as determined by Lender from time to time (but the portion of the Accounts not in excess of such credit limit may still be deemed Eligible Accounts); and 
  

 - 6 - 

 (p) such Accounts are owed by account debtors deemed creditworthy at all times by Lender, as determined
by Lender. 
 General criteria for Eligible Accounts may be established and revised from time to time by Lender. Any Accounts which are not Eligible Accounts
shall nevertheless be part of the Collateral and subject to the Lien of Lender and/or US Collateral Agent. 
  

	1.15	“Eligible Inventory” 

 “Eligible Inventory”
shall mean Inventory consisting of finished goods held for resale in the ordinary course of the business of Borrower or MCE and raw materials (including electronic chips) for such finished goods, in each case which are acceptable to Lender in its
absolute discretion based on the criteria set forth below. In general, Eligible Inventory shall not include (a) work-in-process; (b) components which are not part of finished goods; (c) spare parts for equipment; (d) packaging
and shipping materials; (e) supplies used or consumed in Borrower’s or MCE’s business; (f) Inventory at premises which are not owned and controlled by Borrower or MCE, unless US Collateral Agent has received an agreement in
writing from the person in possession of such Inventory and/or the owner or operator of such premises in form and substance satisfactory to US Collateral Agent acknowledging US Collateral Agent’s first priority Lien in the Inventory, waiving or
subordinating Liens by such person against the Inventory and permitting US Collateral Agent access to, and the right to remain on, the premises so as to exercise US Collateral Agent’s rights and remedies and otherwise deal with the Collateral,
or unless such Inventory is Approved In-Transit Inventory; (g) Inventory subject to a Lien in favor of any person other than US Collateral Agent and/or Lender except those permitted in this Agreement; (h) bill and hold goods;
(i) unserviceable, obsolete or slow moving Inventory; (j) Inventory which is not subject to the first priority, valid and perfected Lien of US Collateral Agent and/or Lender; (k) damaged and/or obsolete and/or defective Inventory;
(1) Inventory purchased or sold on consignment and (m) Inventory subject to a license agreement or other arrangement with a third party which, in Lender’s determination, restricts the ability of Lender to exercise its rights under
this Agreement with respect to such Inventory unless such third party has entered into an Acceptable Liquidation Agreement or Lender has otherwise agreed to allow such Inventory to be eligible in Lender’s sole discretion. General criteria for
Eligible Inventory may be established and revised from time to time by Lender. Any Inventory which is not Eligible Inventory shall nevertheless be part of the Collateral and subject to the Lien of Lender and/or US Collateral Agent. 
 1.16 “EMU Legislation” 
 “EMU Legislation” shall
mean legislative measures of the Council of European Union for the introduction of, change over to or operation of the Euro. 
 1.17 “Environmental
Laws” 
 “Environmental Laws” shall mean with respect to any Person all federal (United States of America and Canada), state, provincial,
district, local, municipal and foreign laws, statutes, rules, regulations, ordinances, orders, directives, permits, licenses and consent decrees relating to health, safety, hazardous, dangerous or toxic substances, waste or material, pollution and

  

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environmental matters, as now or at any time hereafter in effect, applicable to such Person and/or its business and facilities (whether or not owned by it),
including laws relating to emissions, discharges, releases or threatened releases of pollutants, contamination, chemicals, or hazardous, toxic or dangerous substances, materials or wastes into the environment (including ambient air, surface water,
ground water, land surface or subsurface strata) or otherwise relating to the generation, manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of pollutants, contaminants, chemicals, or hazardous, toxic or
dangerous substances, materials or wastes. 
  

	1.18	“Equipment” 

 “Equipment” shall mean all of
Borrower’s now owned and hereafter acquired equipment, machinery, computers and computer hardware and software (whether owned or licensed), vehicles, tools, furniture, fixtures, all attachments, accessions and property now or hereafter affixed
thereto or used in connection therewith, and substitutions and replacements thereof, wherever located. 
  

	1.19	“ERISA” 

 “ERISA” shall mean the United States
Employee Retirement Income Security Act of 1974, as the same now exists or may hereafter from time to time be amended, modified, recodified or supplemented, together with all rules, regulations and interpretations thereunder or related thereto.

  

	1.20	“ERISA Affiliate” 

 “ERISA Affiliate” shall mean
any person required to be aggregated with Borrower or any of its subsidiaries under Sections 414(b), 414(c), 414(m) or 414(o) of the Code. 
  

	1.21	“Euro” 

 “Euro”
means the single currency to which the Participating Member States of the European Union have converted. 
  

	1.22	“Event of Default” 

 “Event of Default” shall mean the occurrence or existence of any event or condition described in Section 9.1 hereof. 
  

	1.23	“Excess Availability” 

 “Excess Availability”
shall mean the amount in US Dollars, as determined by Lender, calculated at any time, equal to: (a) the lesser of: (i) the amount of the Revolving Loans available to Borrower as of such time (based on the applicable lending formulas
multiplied by the Net Amount of Eligible Accounts, the Value of Eligible Inventory and Net Orderly Liquidation Value, as determined by Lender) and subject to the sublimits and Availability Reserves from time to time established by Lender hereunder
and (ii) the Maximum Credit, minus (b) the sum of: (i) the amount of all then outstanding and unpaid Obligations with respect to Revolving 

  

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Loans, plus (ii) the aggregate amount of all due but unpaid tax obligations, and trade payables of Borrower, MCE, MCC and MCII that are past due
more than sixty (60) days. 
  

	1.24	“Exchange Equivalent” 

 “Exchange Equivalent”
shall mean in respect of any amount (the “original amount”) expressed in Canadian Dollars (the “original currency”), the amount expressed in US Dollars (the “new currency”) which the Lender would be required to pay in
Toronto on the date specified using the Bank of Canada noon rate on such date (or, if no date is specified, on the date on which such amount is being determined), in order to purchase the original amount of the original currency in the new currency,
in accordance with the Lender’s usual foreign exchange practice. 
  

	1.25	“Financing Agreements” 

 “Financing Agreements”
shall mean, collectively, this Agreement, the Borrower General Security Agreement, the Intellectual Property Security Agreements and all notes, guarantees, security agreements and other agreements, documents and instruments now or at any time
hereafter executed and/or delivered by Borrower or any Obligor in connection with this Agreement, as the same now exist or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced. 
  

	1.26	“Fiscal Quarter” 

 “Fiscal Quarter” shall mean
any of the following three (3) month periods in any fiscal year of Borrower: April 1 to June 30, July 1 to September 30, October 1 to December 31 and January 1 to March 31. 
  

	1.27	“GAAP” 

 “GAAP” shall mean generally accepted
accounting principles in Canada or the United States of America, as applicable, as in effect from time to time as set forth in the opinions and pronouncements of the relevant Canadian or American public and private accounting boards and institutes
which are applicable to the circumstances as of the date of determination consistently applied. 
  

	1.28	“Gameshark Software” 

 “Gameshark Software”
shall mean the video game enhancement software sold by Borrower and certain Obligors that enables video game players to access and take full advantage of the secret codes, short cuts, hints and cheats incorporated by video game publishers into their
video game offerings. 
  

	1.29	“Hazardous Materials” 

 “Hazardous Materials”
shall mean any hazardous, toxic or dangerous substances, materials and wastes, including hydrocarbons (including naturally occurring or man-made petroleum and hydrocarbons), flammable explosives, asbestos, urea formaldehyde insulation, radioactive
materials, biological substances, polychlorinated biphenyls, pesticides, herbicides and any other 

  

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kind and/or type of pollutants or contaminants (including materials which include hazardous constituents), sewage, sludge, industrial slag, solvents and/or
any other similar substances, materials, or wastes and including any other substances, materials or wastes that are or become regulated under any Environmental Law (including any that are or become classified as hazardous or toxic under any
Environmental Law). 
  

	1.30	“Information Certificates” 

 “Information
Certificates” shall mean, collectively, the Information Certificates of Borrower and each Obligor constituting Exhibit A hereto, each containing material information with respect to such Person, its business and assets provided by or on behalf
of such Persons to Lender in connection with the preparation of this Agreement and the other Financing Agreements and the financing arrangements provided for herein. 
  

	1.31	“Intellectual Property Security Agreements” 

 “Intellectual Property Security Agreements” shall mean, collectively, (i) the Trademark Security Agreement dated as of September 25, 2000 and executed by Borrower in favor of US Collateral Agent, (ii) the Patent
Security Agreement dated as of September 25, 2000 and executed by Borrower in favor of US Collateral Agent, and (iii) the Copyright Security Agreement dated as of September 25, 2000 and executed by Borrower in favor of US Collateral
Agent, as each now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced. 
  

	1.32	“Interest Rate” 

 “Interest Rate” shall mean, as
to the non-contingent Obligations, a rate of one quarter of one percent (0.25%) per annum in excess of the Prime Rate; provided that the Interest Rate shall mean, at Lender’s option, without notice, the rate of three and one-quarter
percent (3.25%) per annum in excess of the Prime Rate: (i) on the non-contingent Obligations for (A) the period from and after the date of termination hereof until such time as Lender has received full and final payment of all such
Obligations, and (B) the period from and after the date of the occurrence of an Event of Default for so long as such Event of Default is continuing as determined by Lender (notwithstanding entry of any judgment against Borrower) and
(ii) on the Revolving Loans at any time outstanding in excess of the amounts available to Borrower under Section 2 hereof (whether or not such excess(es), arise or are made with or without Lender’s knowledge or consent and whether
made before or after an Event of Default). 
  

	1.33	“Inventory” 

 “Inventory” shall mean all of
Borrower’s and MCE’s now owned and hereafter existing or acquired raw materials, work in process, finished goods and all other inventory of whatsoever kind or nature, wherever located. 
  

	1.34	“Lender” 

 “Lender” shall have the meaning set forth in the preamble hereof. 
  

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	1.35	“Letter of Credit Accommodations” 

 “Letter of Credit
Accommodations” shall mean the letters of credit, merchandise purchase or other guarantees denominated in Canadian Dollars or US Dollars which are from time to time either (a) issued or opened by Lender for the account of Borrower or any
Obligor or (b) with respect to which Lender has agreed to indemnify the issuer or guaranteed to the issuer the performance by Borrower or any Obligor of its obligations to such issuer. 
  

	1.36	“Lien” 

 “Lien” shall mean any mortgage, deed of
trust, pledge, fixed or floating charge, lien, security interest, hypothec or encumbrance or security arrangement of any nature whatsoever, whether arising by written or oral agreement or by operation of law, including but not limited to any
conditional sale or title retention arrangement, and any assignment, deposit arrangement or lease intended as, or having the effect of, security. 
  

	1.37	“Material Adverse Change” 

 “Material Adverse
Change” shall mean, where used in relation to the affairs of Borrower or any Obligor, a change in the business, operations or capital of Borrower or such Obligor, as applicable, that, in the opinion of Lender, has or could be expected to have a
Material Adverse Effect. 
  

	1.38	“Material Adverse Effect” 

 “Material Adverse
Effect” shall mean (i) a material adverse effect on the property or assets of Borrower, any Obligor, their respective subsidiaries or the business or operations of any of them or all of them, taken as a whole, (ii) a material adverse
effect on the condition or prospects, financial or otherwise, of Borrower, any Obligor and their respective subsidiaries or any of them or all of them, taken as a whole, (iii) a material adverse effect on the ability of Borrower or any Obligor
to perform and discharge any of its obligations under the Financing Agreements, or (iv) a material adverse effect on the priority, effectiveness or enforceability of any Lien granted by Borrower or any Obligor in favor of Canadian Collateral
Agent, Lender and/or US Collateral Agent or the ability of Lender, Canadian Collateral Lender and/or US Collateral Agent to enforce any Obligation or realize upon any Collateral or any other property securing the Obligations. 
  

	1.39	“Maximum Credit” 

 “Maximum Credit” shall mean the amount of $35,000,000. 
  

	1.40	“Maximum Letter of Credit Facility” 

 “Maximum Letter of Credit Facility” shall mean the amount of $1,000,000. 
  

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	1.41	“MCC” 

 “MCC”
shall mean 1328158 Ontario Inc., a corporation incorporated under the laws of the Province of Ontario. 
  

	1.42	“MCE” 

 “MCE”
shall mean Mad Catz Europe Limited, a company incorporated and existing under the laws of England and Wales. 
  

	1.43	“MCII” 

 “MCII”
means Mad Catz Interactive, Inc., a corporation existing under the federal laws of Canada. 
  

	1.44	“MCIA” 

 “MCIA”
shall mean Mad Catz Interactive Asia Limited, a company incorporated under the laws of Hong Kong. 
  

	1.45	“Net Amount of Eligible Accounts” 

 “Net Amount of
Eligible Accounts” shall mean the gross amount in US Dollars of Eligible Accounts less (a) sales, excise or similar taxes included in the amount thereof and (b) returns, discounts, claims, credits and allowances of any nature at any
time issued, owing, granted, outstanding, available or claimed with respect to such Eligible Accounts; provided that the amounts deducted under clause (a) shall not duplicate items for which Availability Reserves have been
established by Lender. 
  

	1.46	“Net Orderly Liquidation Value” 

 “Net Orderly
Liquidation Value” shall mean the amount in US Dollars to be realized from any orderly liquidation of Inventory, net of all liquidation costs, including deductions for all commissions and taxes, as evidenced by an appraisal of such Inventory
conducted, at the cost of Borrower by Hilco Appraisal Services, LLC or such other appraiser as is acceptable to Lender, such appraisal to be in form, scope and methodology acceptable to Lender and addressed to Lender or upon which Lender is
permitted to rely. 
  

	1.47	“Obligations” 

 “Obligations” shall mean any and
all Revolving Loans, Letter of Credit Accommodations and all other obligations, liabilities and indebtedness of every kind, nature and description owing by Borrower to Lender, US Collateral Agent, Canadian Collateral Agent and/or their respective
affiliates, including principal, interest, charges, fees, costs and expenses, however evidenced, whether as principal, surety, endorser, guarantor or otherwise, arising under this Agreement and the other Financing Agreements, whether now existing or
hereafter arising, whether arising before, during or after the initial or any renewal term of this Agreement or after the commencement of any proceeding with respect to Borrower under the United States Bankruptcy 

  

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Code or any similar statute in any jurisdiction (including the payment of interest and other amounts which would accrue and become due but for the
commencement of such proceeding, whether or not such amounts are allowed or allowable in whole or in part in such proceeding), whether direct or indirect, absolute or contingent, joint or several, due or not due, primary or secondary, liquidated or
unliquidated, secured or unsecured, and however acquired by Lender, US Collateral Agent and/or their respective affiliates. 
  

	1.48	“Obligor” 

 “Obligor” shall mean any guarantor,
endorser, acceptor, surety or other person liable on or with respect to the Obligations or who is the owner of any property which is security for the Obligations, other than Borrower. 
  

	1.49	“Participating Member State” 

 “Participating Member State” shall mean each state so described in any EMU Legislation. 
  

	1.50	“Payment Account” 

 “Payment Account” shall have the meaning set forth in Section 5.3 hereof. 
  

	1.51	“Permitted Inter-Company Debt” 

 “Permitted
Inter-Company Debt” shall mean indebtedness owing by Borrower to any Obligor, by any Obligor to Borrower and/or by any Obligor to another Obligor provided that: 
 (a) such indebtedness is incurred in the ordinary course of business of Borrower and/or such Obligor, as applicable, consistent with past practice; 
 (b) all promissory notes and security agreements (if any) executed by Borrower or any Obligor in respect of such indebtedness shall be assigned to US
Collateral Agent in form and content satisfactory to US Collateral Agent; and 
 (c) if requested by Lender, such indebtedness is
subordinated and postponed pursuant to subordination agreements in form and content satisfactory to Lender. 
  

	1.52	“Person” 

 “Person” or “person” shall
mean any individual, sole proprietorship, partnership, limited partnership, corporation (including any corporation which elects subchapter S status under the Internal Revenue Code of 1986, as amended), limited liability company, limited liability
partnership, business trust, unincorporated association, joint stock corporation, trust, joint venture or other entity or any government or any agency or instrumentality or political subdivision thereof. 
  

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	1.53	“Pounds Sterling” 

 “Pounds Sterling” shall mean, at any time of determination, the then official currency of the United Kingdom. 
  

	1.54	“PPSA” 

 “PPSA”
shall mean the Personal Property Security Act (Ontario). 
  

	1.55	“Prime Rate” 

 “Prime Rate” shall mean the rate
from time to time publicly announced by the U.S. Reference Bank, or its successors, as its prime rate, whether or not such announced rate is the best rate available at such bank. 
  

	1.56	“Records” 

 “Records” shall mean all of
Borrower’s and each Obligor’s present and future books of account of every kind or nature, purchase and sale agreements, invoices, ledger cards, bills of lading and other shipping evidence, statements, correspondence, memoranda, credit
files and other data relating to the Collateral or any account debtor, together with the tapes, disks, diskettes and other data and software storage media and devices, file cabinets or containers in or on which the foregoing are stored (including
any rights of Borrower or any Obligor with respect to the foregoing maintained with or by any other person). 
  

	1.57	“Renewal Date” 

 “Renewal Date” shall have the meaning given to such term in Section 11.1(a). 
  

	1.58	“Revolving Loans” 

 “Revolving Loans” shall mean
the loans now or hereafter made by Lender to or for the benefit of Borrower on a revolving basis (involving advances, repayments and readvances) as set forth in Section 2.1 hereof. 
  

	1.59	“Royalty Reserve” 

 “Royalty Reserve” shall mean
an amount equal to all accrued and unpaid royalty obligations owing by Borrower and MCE as set forth on the most recent Royalty Reserve Report, adjusted up or down as of any date of determination by Lender in its sole discretion based on
Lender’s findings that such royalty obligations owing by Borrower and/or MCE have increased or decreased since the date of such Royalty Reserve Report. 
  

	1.60	“Royalty Reserve Report” 

 “Royalty Reserve
Report” shall mean a report for the period since the date hereof (for the initial report) or the date of the last such report (for subsequent reports) delivered in accordance with Section 6.1 hereof which shall set forth (i) each
license of intellectual property for which 

  

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Borrower and/or MCE is licensee and for which it pays royalties, (ii) the licensor of each such license, (iii) the aggregate accrued and unpaid
royalty obligations owing under each such license and (iv) the date such accrued and unpaid royalty obligations are due under each such license. Each Royalty Reserve Report shall be certified by the chief financial officer of the Borrower as
being complete and accurate. 
  

	1.61	“Software” 

 “Software” shall mean all software
and computer programs (regardless of form or format, DVD, disc or otherwise) and all packaging, containers, artwork, end-user guides or instructions, user manuals and related materials concerning the use and operation of such software and computer
programs other than Gameshark Software. 
  

	1.62	“Software Inventory” 

 “Software Inventory” shall mean all Eligible Inventory consisting of Software. 
  

	1.63	“Solvent” 

 “Solvent” shall mean, with respect
to any Person on a particular date, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person; (b) the present fair salable value
of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured; (c) such Person does not intend to, and does not believe that it will,
incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature; and (d) such Person is not engaged in a business or transaction, and is not about to engage in a business or transaction, for which such
Person’s property would constitute an unreasonably small capital. The amount of contingent liabilities (such as litigation, guarantees and pension plan liabilities) at any time shall be computed as the amount which, in light of all the facts
and circumstances existing at the time, represents the amount which can be reasonably be expected to become an actual or matured liability. 
  

	1.64	“Spot Rate” 

 “Spot Rate” shall mean, with
respect to a currency, the rate quoted by the US Reference Bank as the spot rate for the purchase by the US Reference Bank of such currency with another currency at approximately 10:00 a.m. (Charlotte, North Carolina time) on the date two
(2) Business Days prior to the date as of which the foreign exchange computation is made. 
  

	1.65	“UCC” 

 “UCC”
shall mean the Uniform Commercial Code. 
  

	1.66	“United Kingdom” 

 “United Kingdom” shall mean the United Kingdom of Great Britain and Northern Ireland. 
  

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	1.67	“US Collateral Agent” 

 “US Collateral Agent”
shall mean Wachovia Capital Finance Corporation (Central), formerly known as Congress Financial Corporation (Central), in its capacity as collateral agent for itself, as Lender, and its successors and assigns. 
  

	1.68	“US Reference Bank” 

 “US Reference Bank” shall
mean Wachovia Bank, National Association or its successors, or such other major bank in the United States as Lender may from time to time designate in its discretion. 
  

	1.69	“Value” 

 “Value” shall mean, as determined by
Lender, with respect to Inventory, the lower of (a) cost computed on a first-in-first-out basis in accordance with GAAP and (b) net realizable value. 
 SECTION 2 CREDIT FACILITIES 
 2.1 Revolving Loans 
 (a) Subject to and upon the terms and conditions contained herein, Lender agrees to make Revolving Loans to Borrower from time to time in amounts
requested by Borrower up to the amount equal to the lesser of: 
  

	 	(i)	the Maximum Credit; and 

  

	 	(ii)	the sum of: 

  

	 	(A)	seventy-five percent (75%) of the Net Amount of Eligible Accounts; 

 plus 
  

	 	(B)	the lesser of : 

  

	 	(1)	(X) for any date of determination during the period from and including January 1 of any year to and including July 31 of such year, the lesser of (i) eighty-five
percent (85%) of Net Orderly Liquidation Value of Eligible Inventory (excluding Software Inventory) and (ii) fifty-five percent (55%) of the Value of Eligible Inventory (excluding Software Inventory); or (Y) for any date of
determination during the period from and including August 1 of any year to and including December 31 of such year, sixty percent (60%) of the Value of Eligible Inventory (excluding Software Inventory); and 

  

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	 	(2)	$15,000,000 (less the amount, if any, determined in accordance with Section 2.1(a)(ii)(C) below), 

 plus 
  

	 	(C)	the lesser of (i) twenty-five percent (25%) of the Value of Software Inventory, (ii) eighty-five percent (85%) of Net Orderly Liquidation Value of Software
Inventory and (iii) $1,000,000, 

 minus 
  

	 	(D)	any Availability Reserves. 

 (b) Lender may, in its
discretion, from time to time, upon not less than five (5) days prior written notice to Borrower, (i) reduce the lending formula with respect to Eligible Accounts to the extent that Lender determines that: (A) the dilution with
respect to the Accounts for any period (based on the ratio of (1) the aggregate amount of reductions in Accounts other than as a result of payments in cash to (2) the aggregate amount of total sales) has increased in any material respect
or may be reasonably anticipated to increase in any material respect above historical levels or as a result of seasonal variations, or (B) the general creditworthiness of account debtors has declined or (ii) reduce the lending formula(s)
with respect to Eligible Inventory to the extent that Lender determines that: (A) the number of days of the turnover of the Inventory for any period has changed in any material respect or (B) the Net Orderly Liquidation Value of the
Eligible Inventory, or any category thereof, has decreased, or (C) the nature and quality of the Inventory has deteriorated. In determining whether to reduce the lending formula(s), Lender may consider events, conditions, contingencies or risks
which are also considered in determining Eligible Accounts, Eligible Inventory or in establishing Availability Reserves. 
 (c) Except in
Lender’s discretion, the aggregate amount of the Revolving Loans and the Letter of Credit Accommodations outstanding at any time shall not exceed the Maximum Credit. In the event that the outstanding amount of any component of the Revolving
Loans, or the aggregate amount of the outstanding Revolving Loans and Letter of Credit Accommodations, exceeds the amounts available under the lending formulas, the sublimits for Letter of Credit Accommodations set forth in Section 2.2(d)
hereof or the Maximum Credit, as applicable, such event shall not limit, waive or otherwise affect any rights of Lender in that circumstance or on any future occasions and Borrower shall, upon demand by Lender, which may be made at any time or from
time to time, immediately repay to Lender the entire amount of any such excess(es) for which payment is demanded. 
 (d) For purposes only of
applying the sublimit on Revolving Loans based on Eligible Inventory pursuant to Section 2.1(a)(ii)(B)(2) hereof, Lender may treat the then undrawn amounts of outstanding Letter of Credit Accommodations for the purpose of purchasing Eligible
Inventory as Revolving Loans to the extent Lender is in effect basing the issuance of the Letter of Credit Accommodations on the Value of the Eligible Inventory being purchased with such Letter of Credit Accommodations. In determining the actual
amounts of such Letter of Credit Accommodations to be so treated for purposes of the sublimit, the outstanding Revolving Loans 

  

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and Availability Reserves shall be attributed first to any components of the lending formulas in Section 2.1(a) hereof that are not subject to such
sublimit, before being attributed to the components of the lending formulas subject to such sublimit. 
  

	2.2	Letter of Credit Accommodations 

 (a) Subject to and
upon the terms and conditions contained herein, at the request of Borrower, Lender agrees to provide or arrange for Letter of Credit Accommodations for the account of Borrower containing terms and conditions acceptable to Lender and the issuer
thereof. Any payments made by Lender to any issuer thereof and/or related parties in connection with the Letter of Credit Accommodations shall constitute additional Revolving Loans to Borrower pursuant to this Section 2. 
 (b) In addition to any charges, fees or expenses charged by any bank or issuer in connection with the Letter of Credit Accommodations, Borrower shall pay
to Lender a letter of credit fee at a rate equal to one and one-quarter percent (1.25%) per annum on the daily outstanding balance of the Letter of Credit Accommodations for the immediately preceding month (or part thereof), payable in arrears
as of the first day of each succeeding month, except that Borrower shall pay to Lender such letter of credit fee, at Lender’s option, without notice, at a rate equal to three and three-quarters percent (3.75%) per annum on such daily
outstanding balance for: (i) the period from and after the date of termination hereof until Lender has received full and final payment of all Obligations (notwithstanding entry of a judgment against Borrower) and (ii) the period from and
after the date of the occurrence of an Event of Default for so long as such Event of Default is continuing as determined by Lender. Such letter of credit fee shall be calculated on the basis of a three hundred sixty (360) day year and actual
days elapsed and the obligation of Borrower to pay such fee shall survive the termination of this Agreement. 
 (c) No Letter of Credit
Accommodations shall be available unless on the date of the proposed issuance of any Letter of Credit Accommodations, the Revolving Loans available to Borrower (subject to the Maximum Credit, the Maximum Letter of Credit Facility and any
Availability Reserves) are equal to or greater than: (i) if the proposed Letter of Credit Accommodation is for the purpose of purchasing Eligible Inventory and all negotiable documents of title with respect to such Eligible Inventory have been
consigned to the issuer of the Letter of Credit Accommodation, the sum of (A) the percentage equal to one hundred (100%) percent minus the then applicable percentage set forth in Section 2.1(a)(ii)(B) above of the Value of such
Eligible Inventory, plus (B) freight, taxes, duty and other amounts which Lender estimates must be paid in connection with such Inventory upon arrival and for delivery to one of Borrower’s locations for Eligible Inventory within the United
States of America and (ii) if the proposed Letter of Credit Accommodation is for any other purpose, an amount equal to one hundred (100%) percent of the face amount thereof and all other commitments and obligations made or incurred by
Lender with respect thereto. Effective on the issuance of each Letter of Credit Accommodation, an Availability Reserve shall be established in the applicable amount set forth in Section 2.2(c)(i) or Section 2.2(c)(ii) hereof. 

(d) Except in Lender’s discretion, the amount of all outstanding Letter of Credit Accommodations and all other commitments and obligations made
or incurred by Lender in connection therewith shall not at any time exceed the Maximum Letter of Credit Facility. At any 

  

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time an Event of Default exists or has occurred and is continuing, upon Lender’s request, Borrower will either furnish cash collateral to secure the
reimbursement obligations to the issuer in connection with any Letter of Credit Accommodations or furnish cash collateral to US Collateral Agent for the Letter of Credit Accommodations, and in either case, the Revolving Loans otherwise available to
Borrower shall not be reduced as provided in Section 2.2(c) hereof to the extent of such cash collateral. 
 (e) Borrower shall
indemnify and hold Lender harmless from and against any and all losses, claims, damages, liabilities, costs and expenses which Lender may suffer or incur in connection with any Letter of Credit Accommodations and any documents, drafts or acceptances
relating thereto, including, but not limited to, any losses, claims, damages, liabilities, costs and expenses due to any action taken by any issuer or correspondent with respect to any Letter of Credit Accommodation. Borrower assumes all risks with
respect to the acts or omissions of the drawer under or beneficiary of any Letter of Credit Accommodation and for such purposes the drawer or beneficiary shall be deemed Borrower’s agent. Borrower assumes all risks for, and agrees to pay, all
foreign, Federal, State and local taxes, duties and levies relating to any goods subject to any Letter of Credit Accommodations or any documents, drafts or acceptances thereunder. Borrower hereby releases and holds Lender harmless from and against
any acts, waivers, errors, delays or omissions, whether caused by Borrower, by any issuer or correspondent or otherwise with respect to or relating to any Letter of Credit Accommodation. The provisions of this Section 2.2(e) shall survive the
payment of Obligations and the termination of this Agreement. 
 (f) Nothing contained herein shall be deemed or construed to grant Borrower
any right or authority to pledge the credit of Lender in any manner. Lender shall have no liability of any kind with respect to any Letter of Credit Accommodation provided by an issuer other than Lender unless Lender has duly executed and delivered
to such issuer the application or a guarantee or indemnification in writing with respect to such Letter of Credit Accommodation. Borrower shall be bound by any interpretation made by Lender, or any other issuer or correspondent under or in
connection with any Letter of Credit Accommodation or any documents, drafts or acceptances thereunder, notwithstanding that such interpretation may be inconsistent with any instructions of Borrower. Lender shall have the sole and exclusive right and
authority to, and Borrower shall not at any time while an Event of Default exists, (A) approve or resolve any questions of non-compliance of documents, (B) give any instructions as to acceptance or rejection of any documents or goods,
(C) execute any and all applications for steamship or airway guarantees, indemnities or delivery orders, (D) grant any extensions of the maturity of, time of payment for, or time of presentation of, any drafts, acceptances, or documents,
or (E) agree to any amendments, renewals, extensions, modifications, changes or cancellations of any of the terms or conditions of any of the applications, Letter of Credit Accommodations, or documents, drafts or acceptances thereunder or any
letters of credit included in the Collateral. Lender may take such actions either in its own name or in Borrower’s name. 
 (g) Any
rights, remedies, duties or obligations granted or undertaken by Borrower to any issuer or correspondent in any application for any Letter of Credit Accommodation, or any other agreement in favor of any issuer or correspondent relating to any Letter
of Credit Accommodation, shall be deemed to have been granted or undertaken by Borrower to Lender. 

  

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Any duties or obligations undertaken by Lender to any issuer or correspondent in any application for any Letter of Credit Accommodation, or any other
agreement by Lender in favor of any issuer or correspondent relating to any Letter of Credit Accommodation, shall be deemed to have been undertaken by Borrower to Lender and to apply in all respects to Borrower. 
  

	2.3	Availability Reserves 

 All Revolving Loans
otherwise available to Borrower pursuant to the lending formulas and subject to the Maximum Credit, the Maximum Letter of Credit Facility and other applicable limits hereunder shall be subject to Lender’s continuing right to establish and
revise Availability Reserves, upon not less than five (5) days’ prior written notice to Borrower. 
 SECTION 3 INTEREST AND FEES

  

	3.1	Interest 

 (a) Borrower shall pay to Lender interest
on the outstanding principal amount of the non-contingent Obligations at the applicable Interest Rate. 
 (b) Interest shall be payable by
Borrower to Lender monthly in arrears not later than the first day of each calendar month and shall be calculated on the basis of a three hundred sixty (360) day year and actual days elapsed. The interest rate shall increase or decrease by an
amount equal to each increase or decrease in the Prime Rate effective on the first day of the month after any change in such Prime Rate is announced. The increase or decrease shall be based on the Prime Rate in effect on the last day of the month in
which any such change occurs. All interest accruing hereunder on and after an Event of Default or termination hereof shall be payable on demand. In no event shall charges constituting interest payable by Borrower to Lender exceed the maximum amount
or the rate permitted under any applicable law or regulation, and if any part or provision of this Agreement is in contravention of any such law or regulation, such part or provision shall be deemed amended to conform thereto. 
  

	3.2	Commitment Fee 

 Borrower shall pay to Lender
annually a commitment fee in an amount equal to $10,000 per annum while this Agreement is in effect and for so long thereafter as any of the Obligations are outstanding, which fee shall be fully earned as of and payable in advance on the first day
of the thirteenth month following the date of closing under the Original Loan Agreement and on each anniversary of such date thereafter. 
  

	3.3	Closing Fee 

 Borrower shall pay to Lender as a
closing fee the amount of $35,000, which shall be fully earned as of and payable on the date hereof. 
  

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	3.4	Servicing Fee 

 Borrower shall pay to Lender a
monthly servicing fee in an amount equal to $1,000 per month in respect of Lender’s services for each month (or part thereof) while this Agreement remains in effect and for so long thereafter as any of the Obligations are outstanding, which
monthly fee shall be fully earned as of and payable in advance on the date of closing hereof and on the first day of each month thereafter. 
  

	3.5	Unused Line Fee 

 Borrower shall pay to Lender a
monthly unused line fee at a rate equal to one-quarter of one percent (0.25%) per annum calculated on the amount by which the Maximum Credit exceeds the average daily principal balance of the outstanding Revolving Loans and Letter of Credit
Accommodations during the immediately preceding month (or part thereof) during which this Agreement is in effect and for so long thereafter as any of the Obligations are outstanding, which fee shall be payable on the first day of each month.

  

	3.6	Currency of Payments 

 Unless otherwise specified by
Lender, all interest, fees and other payments by Borrower hereunder shall be in the currency in which such Obligations are denominated. 
 SECTION 4
CONDITIONS PRECEDENT 
  

	4.1	Conditions Precedent to Revolving Loans and Letter of Credit Accommodations 

 This Agreement shall not be effective until each of the agreements or actions set out in the Closing Checklist attached hereto as Exhibit B have been executed, delivered or completed, as the case may be, to the
satisfaction of Lender or waived in writing (in whole or in part) by Lender in its sole discretion and each of the following is a condition precedent to Lender continuing to make Revolving Loans and/or provide Letter of Credit Accommodations to
Borrower hereunder: 
 (a) all representations and warranties contained in this Agreement and in the other Financing Agreements shall be true
and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the date of the making of each such Revolving Loan or providing each such Letter of Credit Accommodation and after
giving effect thereto, except with respect to those representations and warranties that were or are expressly made as of a particular date and except to the extent that there are changes with respect to matters referenced in such representations and
warranties after the date thereof that do not and will not otherwise cause a Default or Event of Default hereunder, and 
 (b) no Event of
Default and no event or condition which, with notice or passage of time or both, would constitute an Event of Default, shall exist or have occurred and be continuing on and as of the date of the making of such Revolving Loan or providing each such
Letter of Credit Accommodation or after giving effect thereto. 
  

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 SECTION 5 COLLECTION AND ADMINISTRATION 
  

	5.1	Borrower’s Loan Account 

 Lender shall maintain
one or more loan account(s) on its books in which shall be recorded (a) all Revolving Loans, Letter of Credit Accommodations and other Obligations and the Collateral, (b) all payments made by or on behalf of Borrower and (c) all other
appropriate debits and credits as provided in this Agreement, including fees, charges, costs, expenses and interest. All entries in the loan account(s) shall be made in accordance with Lender’s customary practices as in effect from time to
time. 
  

	5.2	Statements 

 Lender shall render to Borrower each
month a statement setting forth the balance in Borrower’s loan account(s) maintained by Lender for Borrower pursuant to the provisions of this Agreement, including principal, interest, fees, costs and expenses. Each such statement shall be
subject to subsequent adjustment by Lender but shall, absent manifest errors or omissions, be considered correct and deemed accepted by Borrower and conclusively binding upon Borrower as an account stated except to the extent that Lender receives a
written notice from Borrower of any specific exceptions of Borrower thereto within thirty (30) days after the date such statement has been mailed by Lender. Until such time as Lender shall have rendered to Borrower a written statement as
provided above, the balance in Borrower’s loan account(s) shall be presumptive evidence of the amounts due and owing to Lender by Borrower. 
  

	5.3	Collection of Accounts 

 (a) Borrower shall
establish and maintain, at its expense, blocked accounts (“Blocked Accounts”), with such banks as are acceptable to Lender into which Borrower shall, in accordance with Lender’s instructions, promptly deposit all payments on
Accounts and all payments constituting proceeds of Inventory or other Collateral in the identical form in which such payments are made, whether by cash, check or other manner. Upon the occurrence and during the continuation of an Event of Default,
Lender may, and Borrower shall upon Lender’s request, direct Borrower’s, MCE’s and MCC’s account debtors to directly remit all payment on Accounts to the Blocked Accounts. The banks at which the Blocked Accounts are established
shall enter into an agreement, in form and substance satisfactory to Lender, providing that all items received or deposited in the Blocked Accounts are the property of Lender, that the depository bank has no lien upon, or right to setoff against,
the Blocked Accounts, the items received for deposit therein, or the funds from time to time on deposit therein and that the depository bank will wire, or otherwise transfer, in immediately available funds, on a daily basis, all funds received or
deposited into the Blocked Accounts to such bank account of Lender as Lender may from time to time designate for such purpose (“Payment Account”). Borrower agrees that all payments made to such Blocked Accounts or other funds
received and collected by Lender, whether on the Accounts or as proceeds of Inventory or other Collateral or otherwise shall be the security of Lender and/or US Collateral Agent. 
 (b) For purposes of calculating the amount of the Revolving Loans available to Borrower, such payments will be applied (conditional upon final
collection) to the Obligations 

  

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on the Business Day of receipt by Lender of immediately available funds in a Payment Account provided such payments and notice thereof are received in
accordance with Lender’s usual and customary practices as in effect from time to time and within sufficient time to credit Borrower’s loan account on such day, and if not, then on the next Business Day. For the purposes of calculating
interest on the Obligations, such payments or other funds received will be applied (conditional upon final collection) to the Obligations on the date of receipt of immediately available funds by Lender in the applicable Payment Account provided such
payments or other funds and notice thereof are received in accordance with Lender’s usual and customary practices as in effect from time to time and within sufficient time to credit Borrower’s loan account on such day, and if not, then on
the next Business Day. If Lender receives funds in a Payment Account at any time at which no Obligations are outstanding or in excess of such outstanding Obligations, Lender shall transfer such funds to Borrower at such account as Borrower may
direct; provided that Borrower shall, at Lender’s request, deposit such funds to an account maintained at the bank at which the Payment Accounts are maintained and, prior to such transfer, shall execute and deliver to Lender a
cash collateral agreement in form and substance satisfactory to Lender providing to Lender and/or US Collateral Agent a first priority Lien over such account. 
 (c) Borrower and all of its U.S., U.K. and Canadian affiliates and subsidiaries, and the shareholders, directors, employees and/or agents of Borrower and each such affiliate and subsidiary shall, acting as trustee for
Lender, receive, as the security of Lender and/or US Collateral Agent, any monies, checks, notes, drafts or any other payment relating to and/or proceeds of Accounts or other Collateral which come into their possession or under their control and
immediately upon receipt thereof, shall deposit or cause the same to be deposited in the Blocked Accounts, or remit the same or cause the same to be remitted, in kind, to Lender, but in no event shall any of the foregoing monies, checks, notes,
drafts or any other such payment be commingled with Borrower’s other funds. Borrower agrees to reimburse Lender on demand for any amounts owed or paid to any bank at which a Blocked Account is established or any other bank or person involved in
the transfer of funds to or from the Blocked Accounts arising out of Lender’s payments to, or indemnification of, such bank or person (other than to the extent that such amount arises directly from Lender’s or such other party’s
negligence or willful misconduct). The obligation of Borrower to reimburse Lender for such amounts pursuant to this Section 5.3 shall survive the termination of this Agreement. 
  

	5.4	Payments 

 All Obligations shall be payable to the
Payment Accounts as provided in Section 5.3 or such other place as Lender may designate from time to time. Lender may apply payments received or collected from Borrower or for the account of Borrower (including the monetary proceeds of
collections or of realization upon any Collateral) to such of the Obligations, whether or not then due, in such order and manner as Lender determines. Payments and collections received in any currency other than US Dollars or Canadian Dollars will
be accepted and/or applied at the sole discretion of Lender. At Lender’s option, all principal, interest, fees, costs, expenses and other charges provided for in this Agreement or the other Financing Agreements may be charged directly to the
loan account(s) of Borrower. Borrower shall make all payments to Lender on the Obligations free and clear of, and without deduction or withholding for or on account of, any setoff, counterclaim, defense, duties, taxes, levies, imposts, fees,
deductions, 

  

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withholding, restrictions or conditions of any kind. If after receipt of any payment of, or proceeds of Collateral applied to the payment of, any of the
Obligations, Lender is required to surrender or return such payment or proceeds to any Person for any reason, then the Obligations intended to be satisfied by such payment or proceeds shall be reinstated and continue and this Agreement shall
continue in full force and effect as if such payment or proceeds had not been received by Lender. Borrower shall be liable to pay to Lender, and does hereby indemnify and hold Lender harmless for the amount of any payments or proceeds surrendered or
returned. This Section 5.4 shall remain effective notwithstanding any contrary action which may be taken by Lender in reliance upon such payment or proceeds. This Section 5.4 shall survive the payment of the Obligations and the termination
of this Agreement. 
  

	5.5	Authorization to Make Revolving Loans 

 Lender is
authorized to make the Revolving Loans and provide the Letter of Credit Accommodations based upon telephonic instructions or instructions sent by courier, telecopier or by e-mail received from anyone purporting to be an officer of Borrower or other
authorized person or, at the discretion of Lender, if such Revolving Loans are necessary to satisfy any Obligations. All requests for Revolving Loans or Letter of Credit Accommodations hereunder shall specify the date on which the requested advance
is to be made or Letter of Credit Accommodations established (which day shall be a Business Day) and the amount of the requested Revolving Loan. Requests received after 11:00 a.m. Chicago time on any day shall be deemed to have been made as of
the opening of business on the immediately following Business Day. All Revolving Loans and Letter of Credit Accommodations under this Agreement shall be conclusively presumed to have been made to, and at the request of and for the benefit of,
Borrower when deposited to the credit of Borrower or otherwise disbursed or established in accordance with the instructions of Borrower or in accordance with the terms and conditions of this Agreement. 
  

	5.6	Use of Proceeds 

 All Revolving Loans made or Letter
of Credit Accommodations provided by Lender to Borrower pursuant to the provisions hereof shall be used by Borrower only for general operating, working capital and other proper corporate purposes of Borrower not otherwise prohibited by the terms
hereof. 
 SECTION 6 COLLATERAL REPORTING AND COVENANTS 
  

	6.1	Collateral Reporting 

 Borrower shall provide Lender
with the following documents in a form satisfactory to Lender: (a) on a regular basis as required by Lender, a schedule of Accounts, sales made, credits issued and cash received; (b) on a monthly basis within twenty (20) days after
each month end or more frequently as Lender may request, (i) perpetual inventory reports, (ii) inventory reports by category, including a separate itemized detailed breakdown of all Inventory that is in transit, (iii) agings of
accounts payable and (iv) a Royalty Reserve Report, (c) upon Lender’s request, (i) copies of customer statements and credit memos, remittance advices and reports, and copies of deposit slips and bank statements, (ii) copies
of shipping and 

  

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delivery documents, and (iii) copies of purchase orders, invoices and delivery documents for Inventory and Equipment acquired by Borrower and MCE;
(d) agings of accounts receivable on a monthly basis within twenty (20) days after each month end or more frequently as Lender may request; (e) no later than thirty (30) days after the end of each fiscal year of Borrower,
financial projections for the next fiscal year, prepared on a monthly basis; and (f) such other reports as to the Collateral as Lender or US Collateral Agent shall reasonably request from time to time. If any of Borrower’s records or
reports of the Collateral are prepared or maintained by an accounting service, contractor, shipper or other agent, Borrower hereby irrevocably authorizes such service, contractor, shipper or agent to deliver such records, reports, and related
documents to Lender and to follow Lender’s instructions with respect to further services at any time that an Event of Default exists. 
  

	6.2	Accounts Covenants 

 (a) Borrower shall notify
Lender promptly of: (i) any material delay in any of Borrower’s, MCE’s or MCC’s performance of any of its obligations to any account debtor or the assertion of any claims, offsets, defenses or counterclaims by any account debtor,
or any disputes with account debtors, or any settlement, adjustment or compromise thereof, (ii) all material adverse information in Borrower’s knowledge relating to the financial condition of any account debtor and (iii) any event or
circumstance which, to Borrower’s knowledge, would cause Lender to consider any then existing Accounts as no longer constituting Eligible Accounts. No credit, discount, allowance or extension or agreement for any of the foregoing shall be
granted to any account debtor without Lender’s consent, except in the ordinary course of Borrower’s, MCE’s or MCC’s business in accordance with practices and policies previously disclosed in writing to Lender. So long as no Event
of Default exists, Borrower, MCE or MCC shall settle, adjust or compromise any claim, offset, counterclaim or dispute with any account debtor. At any time that an Event of Default exists, Lender shall, at its option, have the exclusive right to
settle, adjust or compromise any claim, offset, counterclaim or dispute with account debtors or grant any credits, discounts or allowances. 
 (b) Without limiting the obligation of Borrower to deliver any other information to Lender, Borrower shall promptly report to Lender any return of Inventory by any one account debtor if the Inventory so returned in such case has a value in
excess of $250,000. At any time that Inventory is returned, reclaimed or repossessed, the Account (or portion thereof) which arose from the sale of such returned, reclaimed or repossessed Inventory shall not be deemed an Eligible Account. In the
event any account debtor returns Inventory when an Event of Default exists, Borrower shall, upon Lender’s request, (i) hold the returned Inventory in trust for Lender, (ii) segregate all returned Inventory from all of its other
property, (iii) dispose of the returned Inventory solely according to Lender’s instructions, and (iv) not issue any credits, discounts or allowances with respect thereto without Lender’s prior written consent. 
 (c) With respect to each Account: (i) the amounts shown on any invoice delivered to Lender or schedule thereof delivered to Lender shall be true and
complete in all material respects, (ii) no payments shall be made thereon except payments immediately delivered to Lender pursuant to the terms of this Agreement, (iii) no credit, discount, allowance or extension or agreement for any of
the foregoing shall be granted to any account debtor except as reported to Lender in accordance with this Agreement and except for credits, rebates, price protection 

  

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programs, early payment incentives, discounts, allowances or extensions made or given in the ordinary course of Borrower’s, MCE’s or MCC’s
business in accordance with practices and policies previously disclosed to Lender, (iv) there shall be no setoffs, deductions, contras, defenses, counterclaims or disputes existing or asserted with respect thereto except as reported to Lender
in accordance with the terms of this Agreement, (v) none of the transactions giving rise thereto will violate any applicable federal, state or provincial laws or regulations applicable to Borrower or any Obligor, all documentation relating
thereto will be legally sufficient under such laws and regulations and all such documentation will be legally enforceable in accordance with its terms, except as the same may be limited by bankruptcy, insolvency or similar laws affecting
creditors’ rights and the discretion of the court as to the granting of equitable remedies. 
 (d) Lender shall have the right at any
time or times, in Lender’s name or in the name of a nominee of Lender, to verify the validity, amount or any other matter relating to any Account or other Collateral, by mail, telephone, facsimile transmission or otherwise. 
 (e) Borrower shall deliver or cause to be delivered to US Collateral Agent, with appropriate endorsement and assignment, with full recourse to Borrower,
all chattel paper and instruments which Borrower now owns or may at any time acquire immediately upon Borrower’s receipt thereof, except as US Collateral Agent may otherwise agree. 
 (f) US Collateral Agent may, at any time or times that an Event of Default exists, (i) notify any or all account debtors that the Accounts have been
assigned to US Collateral Agent and that US Collateral Agent has a Lien therein and Lender may direct any or all accounts debtors to make payment of Accounts directly to US Collateral Agent, (ii) extend the time of payment of, compromise,
settle or adjust for cash, credit, return of merchandise or otherwise, and upon any terms or conditions, any and all Accounts or other obligations included in the Collateral and thereby discharge or release the account debtor or any other party or
parties in any way liable for payment thereof without affecting any of the Obligations, (iii) demand, collect or enforce payment of any Accounts or such other obligations, but without any duty to do so, and US Collateral Agent shall not be
liable for its failure to collect or enforce the payment thereof nor for the negligence of its agents or attorneys with respect thereto and (iv) take whatever other action US Collateral Agent may deem necessary or desirable for the protection
of its interests. At any time that an Event of Default exists, at US Collateral Agent’s request, all invoices and statements sent to any account debtor shall state that the Accounts and such other obligations have been assigned to US Collateral
Agent and are payable directly and only to US Collateral Agent and Borrower shall deliver to Lender such originals of documents evidencing the sale and delivery of goods or the performance of services giving rise to any Accounts as US Collateral
Agent may require. 
  

	6.3	Inventory Covenants 

 With respect to the Inventory:
(a) Borrower shall at all times maintain inventory records satisfactory to Lender, keeping correct and accurate records itemizing and describing the kind, type, quality and quantity of Inventory, Borrower’s cost therefor and daily
withdrawals therefrom and additions thereto; (b) Borrower shall conduct a physical count of the Inventory at least once each year, but at any time or times as Lender may request while an Event of Default exists, and promptly following such
physical inventory shall supply Lender with a report in the 

  

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form and with such specificity as may be satisfactory to Lender concerning such physical count; (c) Borrower shall not, and shall cause MCE not to,
remove any Inventory from the locations set forth or permitted herein, without the prior written consent of Lender, except for sales of Inventory in the ordinary course of Borrower’s or MCE’s business and except to move Inventory directly
from one location set forth or permitted herein to another such location; (d) Borrower shall, at its expense, at Lender’s request but, no more than once in any three (3) month period if an Event of Default does not exist, and at any
time or times as Lender may request after and while Event of Default exists, deliver or cause to be delivered to Lender written reports or appraisals as to the Inventory in form, scope and methodology acceptable to Lender and by an appraiser
acceptable to Lender, addressed to Lender or upon which Lender is expressly permitted to rely; (e) Borrower shall, and shall cause MCE to, produce, use, store and maintain the Inventory, with all reasonable care and caution and in accordance
with applicable standards of any insurance and in conformity with applicable laws (including the requirements of the Federal Fair Labor Standards Act of 1938, as amended and all rules, regulations and orders related thereto); (f) Borrower
assumes all responsibility and liability arising from or relating to the production, use, sale or other disposition of the Inventory; (g) Borrower shall not, and shall cause MCE not to, sell Inventory to any customer on approval, or any other
basis which entitles the customer to return or may obligate Borrower or MCE to repurchase such Inventory, except in the ordinary course of business or unless such Inventory is not Eligible Inventory; (h) Borrower shall, and shall cause MCE to,
keep the Inventory in good and marketable condition; and (i) Borrower shall not, and shall cause MCE not to, without prior written notice to Lender, acquire or accept any Inventory on consignment or approval. 
  

	6.4	Equipment Covenants 

 With respect to the Equipment:
(a) upon US Collateral Agent’s request, Borrower shall, at its expense, at any time or times as US Collateral Agent may request while an Event of Default exists, deliver or cause to be delivered to US Collateral Agent written reports or
appraisals as to the Equipment in form, scope and methodology reasonably acceptable to Lender and by an appraiser acceptable to US Collateral Agent; (b) Borrower shall keep the Equipment in good order, repair, running and marketable condition
(ordinary wear and tear excepted); (c) Borrower shall use the Equipment with all reasonable care and caution and in accordance with applicable standards of any insurance and in conformity with all applicable laws; (d) the Equipment is and
shall be used in Borrower’s business and not for personal, family, household or farming use; (e) Borrower shall not remove any Equipment from the locations set forth or permitted herein, except to the extent necessary to have any Equipment
repaired or maintained in the ordinary course of the business of Borrower or to move Equipment directly from one location set forth or permitted herein to another such location and except for the movement of motor vehicles used by or for the benefit
of Borrower in the ordinary course of business; (f) the Equipment is now and shall remain personal property and Borrower shall not permit any of the Equipment to be or become a part of or affixed to real property; and (g) Borrower assumes
all responsibility and liability arising from the use of the Equipment. 
  

	6.5	Power of Attorney 

 Borrower hereby irrevocably
designates and appoints US Collateral Agent (and all persons designated by Lender) as Borrower’s true and lawful attorney-in-fact, and authorizes 

  

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US Collateral Agent, in Borrower’s or US Collateral Agent’s name, to: (a) at any time while an Event of Default exits (i) demand payment
on Accounts or other proceeds of Inventory or other Collateral, (ii) enforce payment of Accounts by legal proceedings or otherwise, (iii) exercise all of Borrower’s rights and remedies to collect any Account or other Collateral,
(iv) sell or assign any Account upon such terms, for such amount and at such time or times as Lender deems advisable, (v) settle, adjust, compromise, extend or renew an Account, (vi) discharge and release any Account,
(vii) prepare, file and sign Borrower’s name on any proof of claim in bankruptcy or other similar document against an account debtor, (viii) notify the post office authorities to change the address for delivery of Borrower’s mail
to an address designated by US Collateral Agent, and open and dispose of all mail addressed to Borrower, and (ix) do all acts and things which are necessary, in US Collateral Agent’s determination, to fulfill Borrower’s obligations
under this Agreement and the other Financing Agreements and (b) at any time to (i) take control in any manner of any item of payment or proceeds thereof, (ii) have access to any lockbox or postal box into which Borrower’s mail is
deposited, (iii) endorse Borrower’s name upon any items of payment or proceeds thereof and deposit the same in US Collateral Agent’s account for application to the Obligations, (iv) endorse Borrower’s name upon any chattel
paper, document, instrument, invoice, or similar document or agreement relating to any Account or any goods pertaining thereto or any other Collateral, (v) sign Borrower’s name on any verification of Accounts and notices thereof to account
debtors and (vi) execute in Borrower’s name and file any UCC, PPSA or other financing statements or amendments thereto. Borrower hereby releases US Collateral Agent and its officers, employees and designees from any liabilities arising
from any act or acts under this power of attorney and in furtherance thereof, whether of omission or commission, except as a result of US Collateral Agent’s own gross negligence or willful misconduct as determined pursuant to a final
non-appealable order of a court of competent jurisdiction. 
  

	6.6	Right to Cure 

 US Collateral Agent may, at its
option, (a) cure any default by Borrower under any agreement with a third party or pay or bond on appeal any judgment entered against Borrower, (b) discharge taxes or Liens at any time levied on or existing with respect to the Collateral
and (c) pay any amount, incur any expense or perform any act which, in US Collateral Agent’s judgment, is necessary or appropriate to preserve, protect, insure or maintain the Collateral and the rights of US Collateral Agent and/or Lender
with respect thereto. US Collateral Agent may add any amounts so expended to the Obligations and charge Borrower’s account therefor, such amounts to be repayable by Borrower on demand. US Collateral Agent shall be under no obligation to effect
such cure, payment or bonding and shall not, by doing so, be deemed to have assumed any obligation or liability of Borrower. Any payment made or other action taken by US Collateral Agent under this Section 6.6 shall be without prejudice to any
right to assert an Event of Default hereunder and to proceed accordingly. 
  

	6.7	Access to Premises 

 From time to time as requested
by US Collateral Agent, at the cost and expense of Borrower, (a) US Collateral Agent or its designee shall have complete access to all of Borrower’s premises during normal business hours and after reasonable notice to Borrower, or at any
time and without notice to Borrower if an Event of Default exists, for the purposes of inspecting, 

  

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verifying and auditing the Collateral and all of Borrower’s books and records, including the Records, and (b) Borrower shall promptly furnish to US
Collateral Agent such copies of such books and records or extracts therefrom as US Collateral Agent may request, and (c) US Collateral Agent or its designee may use during normal business hours such of Borrower’s personnel, equipment,
supplies and premises as may be necessary for the foregoing and if an Event of Default exists for the collection of Accounts and realization of other Collateral. 
 SECTION 7 REPRESENTATIONS AND WARRANTIES 
 Borrower hereby represents and warrants to Lender the following (which
shall survive the execution and delivery of this Agreement), the truth and accuracy of which are a continuing condition of the making of Revolving Loans and providing Letter of Credit Accommodations by Lender to Borrower: 
  

	7.1	Corporate Existence, Power and Authority; Subsidiaries 

 Borrower and each Obligor has been duly incorporated or organized and is validly existing under the laws of its jurisdiction of incorporation or organization, as the case may be, and is duly qualified or registered as a foreign or
extra-provincial corporation in all provinces, states or other jurisdictions where the nature and extent of the business transacted by it or the ownership of assets makes such qualification necessary, except for those jurisdictions in which the
failure to so qualify or register would not have a Material Adverse Effect. The execution, delivery and performance of this Agreement, the other Financing Agreements and the transactions contemplated hereunder and thereunder are all within
Borrower’s and each Obligor’s corporate powers, have been duly authorized and are not in contravention of law or the terms of Borrower’s or any Obligor’s certificate of incorporation, by-laws, or other organizational
documentation, or any indenture, agreement or undertaking to which Borrower or any Obligor is a party or by which Borrower or any Obligor or their respective property are bound except to the extent that certain Collateral may not be assignable by
law. This Agreement and the other Financing Agreements constitute legal, valid and binding obligations of Borrower enforceable in accordance with their respective terms, except as the same is limited by bankruptcy, insolvency or similar laws
affecting creditors’ rights generally, and the discretion of the court as to the granting of equitable remedies. Borrower does not have any subsidiaries except as set forth on the Information Certificates. 
  

	7.2	Financial Statements; No Material Adverse Change 

 All financial statements relating to Borrower or any Obligor which have been or may hereafter be delivered by or on behalf of Borrower or any Obligor to Lender have been or will be prepared in accordance with GAAP and fairly present in all
material respects the financial condition and the results of operations of Borrower or such Obligor as at the dates and for the periods set forth therein. Except as disclosed in any interim financial statements furnished by or on behalf of Borrower
or any Obligor to Lender prior to the date of this Agreement, there has been no Material Adverse Change of Borrower or any Obligor, since the date of the most recent audited financial statements furnished by or on behalf of Borrower or any Obligor
to Lender prior to the date of this Agreement. 
  

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	7.3	Chief Executive Office; Collateral Locations and License Agreements 

 The chief executive office of Borrower and Borrower’s Records concerning Accounts are located only at the address set forth below and its only other places of business and the only other locations of Collateral,
if any, are the addresses set forth in the Information Certificates, subject to the right of Borrower to establish new locations in accordance with Section 8.2 below. The Information Certificates correctly identify the chief executive office of
each Obligor and all other places of business and other locations, if any, at which any Obligor maintains any Collateral. The Information Certificates also correctly identify any of such locations which are not owned by Borrower or any Obligor and
sets forth the owners and/or operators thereof and to the best of Borrower’s knowledge, the holders of any mortgages on such locations. Schedule 7.3 hereof lists each license agreement to which Borrower and/or MCE is a party. 
  

	7.4	Priority of Liens; Title to Properties 

 The Liens
granted to US Collateral Agent, Lender and/or Canadian Collateral Agent under this Agreement and the other Financing Agreements constitute valid and perfected first priority Liens in and upon the Collateral subject only to the Liens indicated on
Schedule 7.4 hereto (except to the extent that Lender requires the discharge thereof prior to the advance of the initial Revolving Loans hereunder) and the other Liens permitted under Section 8.8 hereof. Borrower and each Obligor has good and
marketable title to all of its properties and assets subject to no Liens of any kind, except those granted to US Collateral Agent, Lender and/or Canadian Collateral Agent and such others as are specifically listed on Schedule 7.4 hereof (except to
the extent that Lender requires the discharge thereof prior to the advance of the initial Revolving Loans hereunder) or permitted under Section 8.8 hereto. 
  

	7.5	Tax Returns 

 Borrower and each Obligor has filed,
or caused to be filed, in a timely manner all tax returns, reports and declarations which are required to be filed by it (without requests for extension except as previously disclosed in writing to Lender). All information in such tax returns,
reports and declarations is complete and accurate in all material respects. Borrower and each Obligor has paid or caused to be paid all taxes due and payable or claimed due and payable in any assessment received by it, except taxes the validity of
which are being contested in good faith by appropriate proceedings diligently pursued and available to Borrower and each Obligor and with respect to which adequate reserves have been set aside on its books. Adequate provision has been made for the
payment of all accrued and unpaid federal, state, county, local, foreign and other taxes whether or not yet due and payable and whether or not disputed. 
  

	7.6	Litigation 

 Except as set forth on the Information
Certificates, there is no present investigation by any governmental agency pending, or to the best of Borrower’s knowledge threatened, against or affecting Borrower or any Obligor, their assets or business and there is no action, suit,
proceeding or claim by any Person pending, or to the best of Borrower’s knowledge threatened, against Borrower or any Obligor or their assets or goodwill, or against or affecting 

  

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any transactions contemplated by this Agreement, which if adversely determined against Borrower or any such Obligor would result in any Material Adverse
Change in, or would have a Material Adverse Effect on, Borrower or any Obligor. 
  

	7.7	Compliance with Other Agreements and Applicable Laws 

 Except as disclosed in Schedule 7.7 hereto, neither Borrower nor any Obligor is in default in any material respect under, or in violation in any material respect of any of the terms of, any agreement, contract, instrument, lease or other
commitment to which it is a party or by which it or any of its assets are bound and Borrower and each Obligor is in compliance in all material respects with all applicable provisions of laws, rules, regulations, licenses, permits, approvals and
orders of any foreign, federal, state, provincial or local governmental authority. 
  

	7.8	Bank Accounts 

 All of the deposit accounts,
investment accounts or other accounts in the name of or used by Borrower or any Obligor maintained at any bank or other financial institution are set forth on Schedule 7.8 hereto, subject to the right of Borrower or any Obligor to establish new
accounts in accordance with Section 8.15 hereof. 
  

	7.9	Accuracy and Completeness of Information 

 All
information furnished in writing by or on behalf of Borrower or any Obligor to Lender or US Collateral Agent in connection with this Agreement or any of the other Financing Agreements or any transaction contemplated hereby or thereby, including all
information on the Information Certificates is true and correct in all material respects on the date as of which such information is dated or certified and does not omit any material fact necessary in order to make such information not misleading.
Since March 31, 2006, no event or circumstance has occurred which has had or could reasonably be expected to have a Material Adverse Effect on Borrower or any Obligor which has not been fully and accurately disclosed to Lender in writing.

  

	7.10	Employee Benefits 

 (a) Borrower has not engaged in
any transaction in connection with which Borrower or any of its ERISA Affiliates could be subject to either a civil penalty assessed pursuant to Section 502(i) of ERISA or a tax imposed by Section 4975 of the Code, including any
accumulated funding deficiency described in Section 7.10(c) hereof and any deficiency with respect to vested accrued benefits described in Section 7.10(d) hereof. 
 (b) No liability to the Pension Benefit Guaranty Corporation has been or is expected by Borrower to be incurred with respect to any employee benefit plan
of Borrower or any of its ERISA Affiliates. There has been no reportable event (within the meaning of Section 4043(b) of ERISA) or any other event or condition with respect to any employee pension benefit plan of Borrower or any of its ERISA
Affiliates which presents a risk of termination of any such plan by the Pension Benefit Guaranty Corporation. 
  

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 (c) Full payment has been made of all amounts which Borrower or any of its ERISA Affiliates is required
under Section 302 of ERISA and Section 412 of the Code to have paid under the terms of each employee benefit plan as contributions to such plan as of the last day of the most recent fiscal year of such plan ended prior to the date hereof,
and no accumulated funding deficiency (as defined in Section 302 of ERISA and Section 412 of the Code), whether or not waived, exists with respect to any employee benefit plan, including any penalty or tax described in Section 7.10(a)
hereof and any deficiency with respect to vested accrued benefits described in Section 7.10(d) hereof. 
 (d) The current value of all
vested accrued benefits under all employee benefit plans maintained by Borrower that are subject to Title IV of ERISA does not exceed the current value of the assets of such plans allocable to such vested accrued benefits, including any penalty or
tax described in Section 7.10(a) hereof and any accumulated funding deficiency described in Section 7.10(c) hereof. The terms “current value” and “accrued benefit” have the meanings specified in ERISA. 
 (e) Neither Borrower nor any of its ERISA Affiliates is or has ever been obligated to contribute to any “multiemployer plan” (as such term is
defined in Section 4001(a)(3) of ERISA) that is subject to Title IV of ERISA. 
  

	7.11	Environmental Compliance 

 (a) Neither Borrower nor
any Obligor has generated, used, stored, treated, transported, manufactured, handled, produced or disposed of any Hazardous Materials, on or off its premises (whether or not owned by it) in any manner which at any time violates in any material
respect any applicable Environmental Law or any license, permit, certificate, approval or similar authorization thereunder and the operations of Borrower and each Obligor comply in all material respects with all Environmental Laws and all licenses,
permits, certificates, approvals and similar authorizations thereunder. 
 (b) There has been no investigation, proceeding, complaint, order,
directive, claim, citation or notice by any governmental authority or any other person nor is any pending, or to the best of Borrower’s knowledge threatened, with respect to any non-compliance with or violation of the requirements of any
Environmental Law by Borrower or any Obligor or the release, spill or discharge, threatened or actual, of any Hazardous Material or the generation, use, storage, treatment, transportation, manufacture, handling, production or disposal of any
Hazardous Materials or any other environmental, health or safety matter, which affects Borrower or any Obligor or their business, operations or assets or any properties at which Borrower or any Obligor has transported, stored or disposed of any
Hazardous Materials. 
 (c) Neither Borrower nor any Obligor has any material liability (contingent or otherwise) in connection with a
release, spill or discharge, threatened or actual, of any Hazardous Materials or the generation, use, storage, treatment, transportation, manufacture, handling, production or disposal of any Hazardous Materials. 
 (d) Borrower and each Obligor has all licenses, permits, certificates, approvals or similar authorizations required to be obtained or filed in connection
with the operations of 

  

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Borrower and each Obligor under any Environmental Law and all of such licenses, permits, certificates, approvals or similar authorizations are valid and in
full force and effect. 
  

	7.12	Survival of Warranties; Cumulative 

 All
representations and warranties contained in this Agreement or any of the other Financing Agreements shall survive the execution and delivery of this Agreement and shall be deemed to have been made again to Lender on the date of each additional
borrowing or other credit accommodation hereunder, except with respect to, and to the extent that, such representations and warranties are expressly made as of a particular date or there are changes with respect to the matters referenced in such
representations and warranties after the date made that do not and will not otherwise cause a Default or Event of Default hereunder and such representations and warranties shall be conclusively presumed to have been relied on by Lender regardless of
any investigation made or information possessed by Lender. The representations and warranties set forth herein shall be cumulative and in addition to any other representations or warranties which Borrower or any Obligor shall now or hereafter give,
or cause to be given, to Lender. 
 SECTION 8 AFFIRMATIVE AND NEGATIVE COVENANTS 
  

	8.1	Maintenance of Existence 

 Borrower shall, and shall
cause each Obligor to, at all times preserve, renew and keep in full, force and effect its corporate existence and rights and franchises with respect thereto and maintain in full force and effect all permits, licenses, trademarks, tradenames,
approvals, authorizations, leases and contracts necessary to carry on the business as presently or proposed to be conducted. Borrower shall give Lender thirty (30) days prior written notice of any proposed change in its or any Obligor’s
corporate name, which notice shall set forth the new name and Borrower shall deliver to Lender a certified copy of the Articles of Amendment (or other similar document appropriate for the particular jurisdiction) of Borrower or such Obligor
providing for the name change immediately following its filing. 
  

	8.2	New Collateral Locations 

 Borrower or any Obligor
may open any new location within Canada and continental United States of America provided Borrower (a) gives US Collateral Agent thirty (30) days prior written notice of the intended opening of any such new location and (b) Borrower
or such Obligor, as applicable, executes and delivers, or causes to be executed and delivered, to US Collateral Agent such agreements, documents, and instruments as US Collateral Agent may deem necessary or desirable to protect its or Lender’s
interests in the Collateral at such location, including UCC, PPSA and other financing statements and such other evidence as US Collateral Agent may require for the perfection of US Collateral Agent’s or Lender’s first priority Liens where
required by US Collateral Agent. 
  

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	8.3	Compliance with Laws, Regulations, Etc. 

 (a)
Borrower shall, and shall cause each Obligor to, at all times, comply in all material respects with all laws, rules, regulations, licenses, permits, approvals and orders applicable to it and duly observe all requirements of any federal, state,
provincial or local governmental authority, including all statutes, rules, regulations, orders, permits and stipulations relating to environmental pollution and employee health and safety, including all of the Environmental Laws except for any
matter that Borrower or an Obligor is contesting in good faith by appropriate proceedings diligently pursued and which is not reasonably expected to have a Material Adverse Effect on Borrower or any Obligor. 
 (b) Borrower shall, and shall cause each Obligor to, establish and maintain, at its expense, a system to assure and monitor its continued compliance with
all Environmental Laws in all of its operations, which system shall include annual reviews of such compliance by employees or agents of Borrower or such Obligor, as applicable, who are familiar with the requirements of the Environmental Laws. Copies
of all environmental surveys, audits, assessments, feasibility studies and results of remedial investigations shall be promptly furnished, or caused to be furnished, by Borrower to Lender. Borrower shall, and shall cause each Obligor to, take prompt
and appropriate action to respond to any non-compliance with any of the Environmental Laws and shall regularly report to Lender on such response. 
 (c) Borrower shall give both oral and written notice to Lender immediately upon Borrower’s receipt of any notice of, or Borrower’s otherwise obtaining knowledge of, (i) the occurrence of any event involving the release, spill
or discharge, threatened or actual, of any Hazardous Material or (ii) any investigation, proceeding, complaint order, directive, claims, citation or notice with respect to: (A) any non-compliance with or violation of any Environmental Law
by Borrower or any Obligor or (B) the release, spill or discharge, threatened or actual, of any Hazardous Material or (C) the generation, use, storage, treatment, transportation, manufacture, handling, production or disposal of any
Hazardous Materials that does not comply with Environmental Laws, or (D) the violation of any other environmental, health or safety matter, which may have a Material Adverse Effect on Borrower or any Obligor or their business, operations or
assets or any properties at which Borrower or any Obligor transported, stored or disposed of any Hazardous Materials. 
 (d) Without limiting
the generality of the foregoing, whenever Lender determines that there is non-compliance, or any condition which requires any action by or on behalf of Borrower or any Obligor in order to avoid any material non-compliance, with any Environmental
Law, Borrower shall, at Lender’s request and Borrower’s expense: (i) cause an independent environmental engineer acceptable to Lender to conduct such tests of the site where Borrower’s or Obligor’s non-compliance or alleged
non-compliance with such Environmental Laws has occurred and prepare and deliver to Lender a report as to such non-compliance setting forth the results of such tests, a proposed plan for responding to any environmental problems described therein,
and an estimate of the costs thereof and (ii) provide to Lender a supplemental report of such engineer whenever the scope of such non-compliance, or Borrower’s or Obligor’s response thereto or the estimated costs thereof, shall change
in any material respect. 
  

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 (e) Borrower shall indemnify and hold harmless Lender, US Collateral Agent and their respective
directors, officers, employees, agents, invitees, representatives, successors and assigns (collectively, “Indemnified Persons”), from and against any and all losses, claims, damages, liabilities, costs, and expenses (including legal
fees and expenses) incurred by any Indemnified Person, directly or indirectly arising out of or attributable to the use, generation, manufacture, reproduction, storage, release, threatened release, spill, discharge, disposal or presence of a
Hazardous Material, including the costs of any required or necessary repair, cleanup or other remedial work with respect to any property of Borrower or any Obligor and the preparation and implementation of any closure, remedial or other required
plans; provided that such indemnity shall not apply to the extent that any such cost incurred by an Indemnified Person arises from the willful misconduct or gross negligence of any Indemnified Person. 
 (f) All covenants and indemnifications in this Section 8.3 shall survive the payment of the Obligations and the termination of this Agreement.

  

	8.4	Payment of Taxes and Claims 

 Borrower shall, and
shall cause each Obligor to, duly pay and discharge all taxes, assessments, contributions and governmental charges upon or against it or its properties or assets, except for taxes, assessments, contributions or governmental charges the validity of
which are being contested in good faith by appropriate proceedings diligently pursued and available to Borrower or such Obligor and with respect to which adequate reserves have been set aside on its books. Borrower shall be liable for any tax or
penalties imposed on Lender as a result of the financing arrangements provided for herein and Borrower agrees to indemnify and hold Lender harmless with respect to the foregoing, and to repay to Lender on demand the amount thereof, and until paid by
Borrower such amount shall be added and deemed part of the Revolving Loans; provided, that, nothing contained herein shall be construed to require Borrower to pay any income or franchise taxes attributable to the income of Lender from
any amounts charged or paid hereunder to Lender. The foregoing indemnity shall survive the payment of the Obligations and the termination of this Agreement. 
  

	8.5	Insurance 

 Borrower shall, at all times, and shall
cause each Obligor to, maintain with financially sound and reputable insurers insurance with respect to the Collateral against loss or damage and all other insurance of the kinds and in the amounts customarily insured against or carried by
corporations of established reputation engaged in the same or similar businesses and similarly situated. Said policies of insurance shall be satisfactory to Lender as to form, amount and insurer. Borrower shall furnish certificates, policies or
endorsements to Lender as Lender shall require as proof of such insurance, and, if Borrower fails to do so, Lender is authorized, but not required, to obtain such insurance at the expense of Borrower. All policies shall provide for at least thirty
(30) days prior written notice to Lender of any cancellation or reduction of coverage and that Lender may act as attorney for Borrower in obtaining, and at any time an Event of Default exists or has occurred and is continuing, adjusting,
settling, amending and canceling such insurance. Borrower shall cause Lender to be named as a loss payee and an additional insured (but without any liability for any premiums) under such insurance policies and Borrower shall obtain non-contributory
lender’s loss payable endorsements to all insurance 

  

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policies in form and substance satisfactory to Lender. Such lender’s loss payable endorsements shall specify that the proceeds of such insurance shall
be payable to Lender as its interests may appear and further specify that Lender shall be paid regardless of any act or omission by Borrower or any of its affiliates. At its option, Lender may apply any insurance proceeds received by Lender at any
time to the cost of repairs or replacement of Collateral and/or to payment of the Obligations, whether or not then due, in any order and in such manner as Lender may determine or hold such proceeds as cash collateral for the Obligations. 

 

	8.6	Financial Statements and Other Information 

 (a)
Borrower shall keep proper books and records in which true and complete entries shall be made of all dealings or transactions of or in relation to the Collateral and the business of Borrower and its subsidiaries (if any) in accordance with GAAP and
Borrower shall furnish or cause to be furnished to Lender: (i) within forty-five (45) days after the end of each fiscal month, monthly unaudited financial statements of Borrower, and unaudited consolidating financial statements of MCII
(including in each case balance sheets, statements of income and loss, statements of cash flow and statements of shareholders’ equity), all in reasonable detail, fairly presenting in all material respects the financial position and the results
of the operations of MCII, Borrower and their respective subsidiaries, if any, as of the end of and through such fiscal month and (ii) within one hundred and forty (140) days after the end of each fiscal year of MCII, audited consolidated
financial statements of MCII, Borrower and their respective subsidiaries, if any (including in each case balance sheets, statements of income and loss, statements of changes in financial position and statements of shareholders’ equity), and the
accompanying notes thereto, all in reasonable detail, fairly presenting in all material respects the financial position and the results of the operations of the applicable Person and its subsidiaries as of the end of and for such fiscal year,
together with the unqualified opinion of independent chartered accountants, which accountants shall be an independent accounting firm selected by MCII and reasonably acceptable to Lender, that such financial statements have been prepared in
accordance with GAAP, and present fairly in all material respects the results of operations and financial condition of the applicable Person and its subsidiaries as of the end of and for the fiscal year of MCII then ended; and (iii) no later
than thirty (30) days after the end of each fiscal year of Borrower, annual financial projections for the next fiscal year of Borrower, which shall be approved by Lender (which approval shall not be unreasonably withheld or delayed) and shall
include a projected balance sheet, income statement and statement of cash flow, prepared on a monthly basis for such fiscal year, proposed budgets for operating and capital expenditures, acquisitions and related financing costs for Borrower, details
of all management salaries and bonuses, projections with respect to projected total consolidated EBITDA of MCII for such fiscal year (and, if so approved by Lender, such projections shall form the basis of a new Schedule 8.13 for purposes of the
EBITDA covenant in Section 8.13) and such other information as may be requested by Lender. 
 (b) Borrower shall promptly notify Lender
in writing of the details of (i) any material loss, damage, investigation, action, suit, proceeding or claim relating to the Collateral or any other property which is security for the Obligations or any loss, damage, investigation, action,
suit, proceeding or claim which would result in any Material Adverse Change in Borrower or any Obligor and (ii) the occurrence of any Event of Default or event which, with the passage of time or giving of notice or both, would constitute an
Event of Default. 
  

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 (c) Borrower shall promptly after the sending or filing thereof furnish or cause to be furnished to
Lender copies of all reports which Borrower or any Obligor sends to its shareholders generally and copies of all reports and registration statements which Borrower or any Obligor files with any securities commission or securities exchange.

 (d) Borrower shall furnish or cause to be furnished to Lender such budgets, forecasts, projections and other information respecting the
Collateral and the business of Borrower, as Lender may, from time to time, reasonably request and Lender is hereby authorized to deliver a copy of any financial statement or any other information relating to the business of Borrower to any court or
other government agency as required by law or to any participant or assignee or prospective participant or assignee, provided that each such participant or assignee executes a confidentiality agreement acceptable to Lender which confidentiality
agreement shall in any event provide that such participant or assignee shall maintain the confidential nature of such information in the same manner as such information is required to be maintained by Lender. Borrower hereby irrevocably authorizes
and directs all accountants or auditors to deliver to Lender, at Borrower’s expense, copies of the financial statements of Borrower and any reports or management letters prepared by such accountants or auditors on behalf of Borrower and to
disclose to Lender such information as they may have regarding the business of Borrower, subject to any applicable confidentiality restrictions in favor of third parties or any legal privileges that have not been waived and which are not within the
control of Borrower to waive. Any documents, schedules, invoices or other papers delivered to Lender may be destroyed or otherwise disposed of by Lender one (1) year after the same are delivered to Lender, except as otherwise designated by
Borrower to Lender in writing. 
 (e) Borrower shall within five (5) days after the end of each month provide a certificate of the chief
financial officer of Borrower, in form and content satisfactory to Lender, certifying that Borrower has paid in full (i) all rent and other amounts due and payable with respect to any premises leased or occupied by Borrower or any Obligor
during such month; and (ii) all payments and other amounts due and payable with respect to any employee benefit plan or pursuant to any material contract during such month. 
 (f) Notwithstanding the foregoing, or any other provision in any Financing Agreement, Borrower and Obligors shall not be required to disclose any
information reports or other documents or material to the extent that such disclosure would breach any applicable laws and the ability to avoid such breach is not within the control of Borrower or any Obligor. 
 (g) Borrower shall, within thirty (30) days after the end of each month, provide a compliance certificate, in substantially the form attached hereto
as Schedule 8.6(g), to Lender with respect to compliance by Borrower with the financial covenants set forth in Section 8.13 and 8.20 and such other matters relating to Borrower as Lender may from time to time request. 
  

	8.7	Sale of Assets, Consolidation, Merger, Amalgamation, Dissolution, Etc. 

 Borrower shall not and shall ensure that each Obligor does not, directly or indirectly, without the prior written consent of Lender, (a) merge or amalgamate with any other Person or permit any other Person to
merge or amalgamate with it, or (b) sell, assign, lease, transfer, abandon or otherwise dispose of any shares or indebtedness to any other Person or any 

  

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of its assets to any other Person (except for (i) sales of Inventory in the ordinary course of business and (ii) the disposition of worn-out or
obsolete Equipment or Equipment no longer used in the business of Borrower so long as (A) if an Event of Default exists, any proceeds are paid to Lender and (B) such sales do not involve Equipment having an aggregate fair market value in
excess of $250,000 for all such Equipment disposed of in any fiscal year of Borrower), or (c) form or acquire any subsidiaries, or (d) wind up, liquidate or dissolve or (e) agree to do any of the foregoing. Notwithstanding the
foregoing, nothing in this Agreement or in any of the Financing Agreements shall prohibit MCII from selling or issuing its securities, and unless an Event of Default has occurred and is continuing, none of the proceeds resulting from any such sale
or issuance of securities, whether in the form of cash or otherwise, shall constitute security for any of the Obligations or any obligation of any Obligor under any Financing Agreement. 
  

	8.8	Encumbrances 

 Borrower shall not, and shall ensure
that each Obligor does not, create, incur, assume or suffer to exist any Lien of any nature whatsoever on any of its assets or properties, including the Collateral, except (a) Liens of Canadian Collateral Agent, Lender and/or US
Collateral Agent; (b) Liens securing the payment of taxes, either not yet overdue or the validity of which are being contested in good faith by appropriate proceedings diligently pursued and available to Borrower or any Obligor, as applicable,
and with respect to which adequate reserves have been set aside on its books; (c) non-consensual statutory Liens (other than Liens securing the payment of taxes) arising in the ordinary course of Borrower’s or any Obligor’s business,
as applicable, to the extent: (i) such Liens secure indebtedness which is not overdue or (ii) such Liens secure indebtedness relating to claims or liabilities which are fully insured and being defended at the sole cost and expense and at
the sole risk of the insurer or being contested in good faith by appropriate proceedings diligently pursued and available to Borrower or such Obligor, as applicable, in each case prior to the commencement of foreclosure or other similar proceedings
and with respect to which adequate reserves have been set aside on its books; (d) zoning restrictions, easements, licenses, covenants and other restrictions affecting the use of real property which do not interfere in any material respect with
the use of such real property or ordinary conduct of the business of Borrower or such Obligor, as applicable, as presently conducted thereon or materially impair the value of the real property which may be subject thereto; (e) purchase money
security interests in Equipment (including capital leases) and purchase money mortgages on real estate not to exceed, individually, $250,000 and, in the aggregate, $1,000,000 at anytime outstanding for Borrower and Obligors so long as such security
interests and mortgages do not apply to any property of Borrower or any Obligor other than the Equipment or real estate so acquired, and the indebtedness secured thereby does not exceed the cost of the Equipment or real estate so acquired, as the
case may be; (f) the Liens set forth on Schedule 7.4 hereto (except to the extent that Lender requires the discharge thereof prior to the advance of the initial Revolving Loans pursuant to this Agreement); and (g) Liens to secure Permitted
Inter-Company Debt. 
  

	8.9	Indebtedness 

 Borrower shall not, and shall ensure
that each Obligor does not, incur, create, assume, become or be liable in any manner with respect to, or permit to exist, any obligations or indebtedness, except (a) the Obligations; (b) trade obligations and normal accruals in the

  

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ordinary course of business not past due more than sixty (60) days, or with respect to which Borrower or an Obligor, as applicable, is contesting in
good faith the amount or validity thereof by appropriate proceedings diligently pursued and available to Borrower or such Obligor, as applicable, and with respect to which adequate reserves have been set aside on its books; (c) purchase money
indebtedness (including capital leases) to the extent not incurred or secured by Liens (including capital leases) in violation of any other provision of this Agreement; (d) the indebtedness set forth on Schedule 8.9 hereto; and
(e) Permitted Inter-Company Debt; provided that, (i) Borrower or Obligor, as applicable, may only make regularly scheduled payments of principal and interest in respect of such indebtedness in accordance with the terms of the
agreement or instrument evidencing or giving rise to such indebtedness as in effect on the date of this Agreement, subject to any subordination agreement among Lender, Borrower and the holder of any such indebtedness; (ii) Borrower or Obligor,
as applicable, shall not directly or indirectly, (A) amend, modify, alter or change the terms of such indebtedness or any agreement, document or instrument related thereto as in effect on the date hereof, or (B) redeem, retire, defease,
purchase or otherwise acquire such indebtedness, or set aside or otherwise deposit or invest any sums for such purpose, and (iii) Borrower shall furnish to Lender all notices or demands in connection with such indebtedness received by or on
behalf of Borrower or any Obligor, as applicable, promptly after the receipt thereof, or sent by or on behalf of Borrower or any Obligor, as applicable, concurrently with the sending thereof, as the case may be. 
  

	8.10	Loans, Investments, Guarantees, Etc. 

 Borrower
shall not, and shall ensure that each Obligor does not, directly or indirectly, make any loans or advance money or property to any person, or invest in (by capital contribution, dividend or otherwise) or purchase or repurchase the shares or
indebtedness or all or a substantial part of the assets or property of any person, or guarantee, assume, endorse, or otherwise become responsible for (directly or indirectly) the indebtedness, performance, obligations or dividends of any Person or
agree to do any of the foregoing, except (a) endorsement of instruments for collection or deposit in the ordinary course of business; and (b) investments in: (i) short-term direct obligations of the Canadian Government or the
United States Government, (ii) negotiable certificates of deposit issued by any bank satisfactory to Lender, payable to the order of Borrower or to bearer and delivered to Lender, and (iii) commercial paper rated Al or P1; provided,
that, as to any of the foregoing, unless waived in writing by Lender, Borrower shall take such actions as are deemed necessary by US Collateral Agent to perfect the Lien of US Collateral Agent and/or Lender in such investments; and
(c) Acquisitions; and (d) travel advances, employee relocation loans and other employee loans and advances in the ordinary course of business of Borrower; and (e) the loans, advances and other guarantees set forth on Schedule 8.10
hereto; and (f) loans that constitute Permitted Inter-Company Debt; provided, that, as to such loans, advances and guarantees, (i) Borrower shall not, and shall ensure that each Obligor does not, directly or indirectly,
(A) amend, modify, alter or change the terms of such loans, advances or guarantees or any agreement, document or instrument related thereto, or (B) as to such guarantees, redeem, retire, defease, purchase or otherwise acquire the
obligations arising pursuant to such guarantees, or set aside or otherwise deposit or invest any sums for such purpose, and (ii) Borrower shall furnish to Lender all notices or demands in connection with such loans, advances or guarantees or
other indebtedness subject to such guarantees either received by Borrower or on its behalf, promptly after the receipt 

  

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thereof, or sent by Borrower or on its behalf, concurrently with the sending thereof, as the case may be. 
  

	8.11	Dividends and Redemptions 

 Borrower shall be
entitled from time to time to pay such dividends or redeem or repurchase shares if Borrower has Excess Availability of not less than $500,000 after giving effect to each such payment of dividends, redemption amount or repurchase amount and if no
Event of Default exists at the time of, or will occur as a result of, any such payment of dividends, redemption amount or repurchase amount. Except as expressly permitted pursuant to the preceding sentence, Borrower shall not, directly or
indirectly, declare or pay any dividends on account of any shares of Borrower now or hereafter outstanding, or set aside or otherwise deposit or invest any sums for such purpose, or redeem, retire, defease, purchase or otherwise acquire any shares
of any class (or set aside or otherwise deposit or invest any sums for such purpose) for any consideration other than common shares or apply or set apart any sum, or make any other distribution (by reduction of capital or otherwise) in respect of
any such shares or agree to do any of the foregoing. 
  

	8.12	Transactions with Affiliates 

 Borrower shall not,
and shall not permit any Obligor to, directly or indirectly, (a) purchase, acquire or lease any property from, or sell, transfer or lease any property to, any officer, director, agent or other person affiliated with Borrower or such Obligor,
except in the ordinary course of and pursuant to the reasonable requirements of Borrower’s or such Obligor’s business and upon fair and reasonable terms no less favorable to Borrower or such Obligor than Borrower or such Obligor would
obtain in a comparable arm’s length transaction with an unaffiliated person or (b) make any payments of management, consulting or other fees for management or similar services, or of any indebtedness owing to any officer, employee,
shareholder, director or other person affiliated with Borrower or such Obligor except (i) payments in respect of Permitted Inter-Company Debt provided that such payments are permitted pursuant to, and made in accordance with, the terms
of the applicable subordination agreement executed by Borrower and/or such Obligor, as applicable, in favor of Lender in respect thereof and (ii) reasonable compensation to officers, employees and directors for services rendered to Borrower or
such Obligor in the ordinary course of business. 
  

	8.13	EBITDA 

 Borrower shall cause MCII to maintain
consolidated EBITDA as follows: 
 (a) for the Fiscal Quarter ending September 30, 2006, consolidated EBITDA for such Fiscal Quarter
shall not be less than negative (-) $406,000; 
 (b) for the Fiscal Quarter ending December 31, 2006, consolidated EBITDA for such
Fiscal Quarter and the Fiscal Quarter ending September 30, 2006 shall not be less than $5,547,000 in the aggregate; 
 (c) for the
Fiscal Quarter ending March 31, 2007, consolidated EBITDA on a trailing four (4) Fiscal Quarter basis shall not be less than $3,496,000; and 
  

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 (d) at the end of each subsequent Fiscal Quarter thereafter, consolidated EBITDA on a trailing four
(4) Fiscal Quarter basis shall not be less than the amount of seventy-five percent (75%) of the projected total consolidated EBITDA as set out on Schedule 8.13 delivered to and approved by Lender pursuant to Section 8.6(a) and, if
Borrower and Lender cannot agree on such Schedule 8.13, in amounts and for periods as determined by Lender in its sole discretion. 
  

	8.14	Intellectual Property 

 In the event Borrower or any
Obligor obtains or applies for any material intellectual property rights or obtains any material licenses with respect thereto, Borrower shall immediately notify Lender thereof and shall provide to Lender copies of all written materials including,
but not limited to, applications and licenses with respect to such intellectual property rights. At US Collateral Agent’s request, Borrower shall promptly execute and deliver to US Collateral Agent an intellectual property security agreement
granting to US Collateral Agent a perfected Lien in such intellectual property rights in form and substance satisfactory to US Collateral Agent. 
  

	8.15	Additional Bank Accounts 

 Borrower shall not, and
shall ensure that each Obligor does not, directly or indirectly, open, establish or maintain any deposit account, investment account or any other account with any bank or other financial institution, other than the Blocked Accounts and the accounts
set forth in Schedule 7.8 hereto, except: (a) as to any new or additional Blocked Accounts and other such new or additional accounts which contain any Collateral or proceeds thereof, with the prior written consent of Lender and subject to such
conditions thereto as Lender may establish, and (b) as to any accounts used by Borrower or any Obligor to make payments of payroll, taxes or other obligations to third parties, after prior written notice to Lender. 
  

	8.16	Compliance with ERISA 

 (a) Borrower shall not with
respect to any “employee benefit plans” maintained by Borrower or any of its ERISA Affiliates: (i) terminate any of such employee benefit plans so as to incur any liability to the Pension Benefit Guaranty Corporation established
pursuant to ERISA, (ii) allow or suffer to exist any prohibited transaction involving any of such employee benefit plans or any trust created thereunder which would subject Borrower or such ERISA Affiliate to a tax or penalty or other liability
on prohibited transactions imposed under Section 4975 of the Code or ERISA, (iii) fail to pay to any such employee benefit plan any contribution which it is obligated to pay under Section 302 of ERISA, Section 412 of the Code or
the terms of such plan, (iv) allow or suffer to exist any accumulated funding deficiency, whether or not waived, with respect to any such employee benefit plan, (v) allow or suffer to exist any occurrence of a reportable event or any other
event or condition which presents a material risk of termination by the Pension Benefit Guaranty Corporation of any such employee benefit plan that is a single employer plan, which termination could result in any liability to the Pension Benefit
Guaranty Corporation or (vi) incur any withdrawal liability with respect to any multiemployer pension plan. 
  

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 (b) As used in this Section 8.16, the terms “employee benefit plans”, “accumulated
funding deficiency” and “reportable event” shall have the respective meanings assigned to them in ERISA, and the term “prohibited transaction” shall have the meaning assigned to it in Section 4975 of the Code and ERISA.

  

	8.17	Costs and Expenses 

 Borrower shall pay to Lender on
demand all costs, expenses, filing fees and taxes paid or payable in connection with the preparation, negotiation, execution, delivery, recording, administration, collection, liquidation, enforcement and defense of the Obligations, Lender’s and
US Collateral Agent’s rights in the Collateral, this Agreement, the other Financing Agreements and all other documents related hereto or thereto, including any amendments, supplements or consents which may hereafter be contemplated (whether or
not executed) or entered into in respect hereof and thereof, including: (a) all costs and expenses of filing or recording (including UCC and PPSA financing statement and other similar filing and recording fees and taxes, documentary taxes,
intangibles taxes and mortgage recording taxes and fees, if applicable); (b) all insurance premiums, appraisal fees and search fees; (c) costs and expenses of remitting loan proceeds, collecting checks and other items of payment, and
establishing and maintaining the Blocked Accounts and Payment Accounts, together with Lender’s customary charges and fees with respect thereto; (d) charges, fees or expenses charged by any bank or issuer in connection with the Letter of
Credit Accommodations; (e) costs and expenses of preserving and protecting the Collateral; (f) costs and expenses paid or incurred in connection with obtaining payment of the Obligations, enforcing the Liens of US Collateral Agent and/or
Lender, selling or otherwise realizing upon the Collateral, and otherwise enforcing the provisions of this Agreement and the other Financing Agreements or defending any claims made or threatened against US Collateral Agent and/or Lender arising out
of the transactions contemplated hereby and thereby (including preparations for and consultations concerning any such matters); (g) all out-of-pocket expenses and costs heretofore and from time to time hereafter incurred by Lender during the
course of periodic field examinations of the Collateral and Borrower’s operations, plus a per diem charge at the rate of $750 per person per day for Lender’s examiners in the field and office; and (h) the fees and disbursements of
counsel (including legal assistants) to Lender and/or US Collateral Agent in connection with any of the foregoing. 
  

	8.18	Further Assurances 

 At the request of Lender at any
time and from time to time, Borrower shall, at its expense, duly execute and deliver, or cause to be duly executed and delivered, such further agreements, documents and instruments, and do or cause to be done such further acts as may be necessary or
proper to evidence, perfect, maintain and enforce the Liens of US Collateral Agent, Lender and/or Canadian Collateral Agent and the priority thereof in the Collateral and to otherwise effectuate the provisions or purposes of this Agreement or any of
the other Financing Agreements. Lender may at any time and from time to time request a certificate from an officer of Borrower representing that all conditions precedent to the making of Revolving Loans and providing Letter of Credit Accommodations
contained herein are satisfied. In the event of such request by Lender, Lender may, at its option, cease to make any further Revolving Loans or provide any further Letter of Credit Accommodations until Lender has received such certificate and, in
addition, Lender has determined that such conditions are satisfied. Where permitted by 

  

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law, Borrower hereby authorizes Lender to execute and file one or more UCC, PPSA or other financing statements or notices signed only by Lender or US
Collateral Agent’s representative. 
  

	8.19	Change of Control 

 Borrower shall promptly provide
Lender with written notice if, at any time, any person shall own more than twenty percent (20%) of the outstanding voting securities of MCII. 
  

	8.20	Software Expenditures 

 Borrower shall not, and
shall ensure that each Obligor does not, make or incur any expenditures with respect to the development of Software during any fiscal year of Borrower in the aggregate in respect of Borrower and each Obligor in excess of $1,000,000 without the prior
written consent of Lender. 
 SECTION 9 EVENTS OF DEFAULTS AND REMEDIES 
  

	9.1	Events of Default 

 The occurrence or existence of
any one or more of the following events are referred to herein individually as an “Event of Default”, and collectively as “Events of Default”: 
 (a) (i) Borrower fails to pay when due any of the Obligations or the Borrower or any Obligor fails to pay when due any amount owing under any
Financing Agreement, or (ii) Borrower or any Obligor fails to perform any of the material terms, covenants, conditions or provisions contained in this Agreement or any of the other Financing Agreements (other than as described in
Section 9.1(a)(i)), or (iii) Borrower or any Obligor fails to perform any of the terms, covenants, conditions or provisions contained in this Agreement or any other Financing Agreement (other than as described in Section 9.1(a)(i) or
Section 9.1(a)(ii)) and such failure continues for more than ten (10) days after the Borrower receives written notice thereof from Lender; 
 (b) any representation, warranty or statement of fact made by Borrower or Obligor to Lender in this Agreement, the other Financing Agreements or any other agreement, schedule, confirmatory assignment or otherwise
shall when made or deemed made be false or misleading in any material respect; 
 (c) any Obligor (i) revokes, terminates or fails to
perform any of the material terms, covenants, conditions or provisions of any guarantee, endorsement or other agreement of such party in favor of Lender, Canadian Collateral Agent or US Collateral Agent; or (ii) revokes, terminates or fails to
perform any of the terms, covenants, conditions or provisions of any guarantee, endorsement or other agreement of such party in favor of Lender, Canadian Collateral Agent or US Collateral Agent (other than as described in Section 9.1(c)(i)) and
such default continues for more than ten (10) days after Borrower receives written notice thereof from Lender; 
  

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 (d) any judgment for the payment of money is rendered against Borrower or any Obligor in excess of
$2,000,000 in the aggregate and shall remain undischarged or unvacated for a period in excess of thirty (30) days or execution shall at any time not be effectively stayed, or any judgment other than for the payment of money, or injunction,
attachment, garnishment or execution is rendered against Borrower or any Obligor or any of their assets; 
 (e) any Obligor (being a natural
person or a general partner of an Obligor which is a partnership) dies or Borrower or any Obligor, which is a partnership, limited liability company, limited partnership, limited liability partnership or a corporation, dissolves or suspends or
discontinues doing business; 
 (f) Borrower or any Obligor becomes insolvent, makes an assignment for the benefit of creditors proposes to
make, makes or sends notice of a bulk sale (as defined by applicable laws of the United States of America or Canada) or calls a meeting of its creditors or principal creditors; 
 (g) a petition, case or proceeding under the bankruptcy laws of the United States, Canada or similar laws of any foreign jurisdiction now or hereafter in
effect or under any insolvency, arrangement, reorganization, moratorium, receivership, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction now or hereafter in effect (whether at law or in equity) is filed or commenced
against Borrower or any Obligor or all or any part of its properties and such petition or application is not dismissed within sixty (60) days after the date of its filing or Borrower or any Obligor shall file any answer admitting or not
contesting such petition or application or indicates its consent to, acquiescence in or approval of, any such action or proceeding or the relief requested is granted sooner; 
 (h) a petition, case or proceeding under the bankruptcy laws of the United States, Canada or similar laws of any foreign jurisdiction now or hereafter in
effect or under any insolvency, arrangement, reorganization, moratorium, receivership, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction now or hereafter in effect (whether at a law or equity) is filed or commenced
by Borrower or any Obligor for all or any part of its property including if Borrower or any Obligor shall: 
  

	 	(i)	apply for or consent to the appointment of a receiver, trustee or liquidator of it or of all or a substantial part of its property and assets; or 

  

	 	(ii)	be unable, or admit in writing its inability, to pay its debts as they mature, or commit any other act of bankruptcy; or 

  

	 	(iii)	make a general assignment for the benefit of creditors; or 

  

	 	(iv)	file a voluntary petition or assignment in bankruptcy or a proposal seeking a reorganization, compromise, moratorium or arrangement with its creditors; or 

 

	 	(v)	 take advantage of any insolvency or other similar law pertaining to arrangements, moratoriums, compromises or reorganizations, or admit the 

  

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material allegations of a petition or application filed in respect of it in any bankruptcy, reorganization or insolvency proceeding; or

  

	 	(vi)	take any corporate action for the purpose of effecting any of the foregoing; 

 (i) any default by Borrower or any Obligor under any agreement, document or instrument relating to any indebtedness for borrowed money owing to any person other than Lender, or any capitalized lease obligations,
contingent indebtedness in connection with any guarantee, letter of credit, indemnity or similar type of instrument in favor of any person other than Lender, in any case in an amount in excess of $1,000,000, which is not remedied within ten
(10) days after Borrower receives written notice thereof from Lender; 
 (j) any material default by Borrower or any Obligor under any
material contract, lease, license or other obligation to any person other than Lender, any other default by Borrower or any Obligor under any material contract, lease, license or other obligation to any person other than Lender if such default
continues for more than ten (10) days after Borrower receives written notice thereof from Lender, or any termination of, or failure to renew or extend, any material lease for real property occupied by Borrower; 
 (k) any change in the ownership of Borrower or any Obligor (other than MCII) unless previously approved in writing by Lender; 
 (l) charging of Borrower or any Obligor under any criminal statute, or commencement or threatened commencement of criminal or civil proceedings against
Borrower or any Obligor, pursuant to which statute or proceedings the penalties or remedies sought or available include forfeiture of any of the property of Borrower or such Obligor; 
 (m) a Material Adverse Change in Borrower or any Obligor after the date hereof; 
 (n) an event of default under any of the other Financing Agreements; or 
 (o) a breach of, or failure to comply with, any material term of any intercreditor agreement or subordination agreement with respect to Borrower or any Obligor by any party thereto other than Lender, or any breach of,
or failure to comply with, any other term of any inter-creditor agreement or subordination agreement with respect to Borrower or any Obligor by any party thereto other than Lender if such default continues for more than ten (10) days after
Borrower receives notice thereof from Lender. 
  

	9.2	Remedies 

 (a) At any time while an Event of Default
exists Lender and US Collateral Agent shall have all rights and remedies provided in this Agreement, the other Financing Agreements, the UCC, PPSA and other applicable law, all of which rights and remedies may be exercised without notice to or
consent by Borrower or any Obligor, except as such notice or consent is expressly provided for hereunder or required by applicable law. All rights, remedies and powers granted to Lender hereunder, under any of the other Financing Agreements, the
UCC, PPSA or either applicable law, are cumulative, not exclusive and enforceable, in Lender’s and US Collateral Agent’s discretion, alternatively, successively, or concurrently on any one or more 

  

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occasion, and shall include the right to apply to a court of equity for an injunction to restrain a breach or threatened by Borrower of this Agreement or any
of the other Financing Agreements. Lender and/or US Collateral Agent may, at any time or times, proceed directly against Borrower or any Obligor to collect the Obligations without prior recourse to the Collateral. 
 (b) Without limiting the foregoing, at any time an Event of Default exists, Lender may, in its discretion and without limitation, (i) accelerate the
payment of all Obligations and demand immediate payment thereof to Lender (provided, that, upon the occurrence of any Event of Default described in Sections 9.1(g) and 9.1(h), all Obligations shall automatically become immediately due
and payable), (ii) with or without judicial process or the aid or assistance of others, enter upon any premises on or in which any of the Collateral may be located and take possession of the Collateral or complete processing, manufacturing and
repair of all or any portion of the Collateral and carry on the business of Borrower, (iii) require Borrower, at Borrower’s expense, to assemble and make available to US Collateral Agent any part or all of the Collateral at any place and
time designated by US Collateral Agent, (iv) collect, foreclose, receive, appropriate, setoff and realize upon any and all Collateral, (v) remove any or all of the Collateral from any premises on or in which the same may be located for the
purpose of effecting the sale, foreclosure or other disposition thereof or for any other purpose, (vi) sell, lease, transfer, assign, deliver or otherwise dispose of any and all Collateral (including entering into contracts with respect
thereto, public or private sales at any exchange, broker’s board, at any office of US Collateral Agent or elsewhere) at such prices or terms as US Collateral Agent may deem reasonable, for cash, upon credit or for future delivery, with US
Collateral Agent having the right to purchase the whole or any part of the Collateral at any such public sale, all of the foregoing being free from any right or equity of redemption of Borrower, which right or equity of redemption is hereby
expressly waived and released by Borrower, (vii) borrow money and use the Collateral directly or indirectly in carrying on Borrower’s business or as security for loans or advances for any such purposes, (viii) grant extensions of time
and other indulgences, take and give up security, accept compositions, grant releases and discharges, and otherwise deal with Borrower, debtors of Borrower, sureties and others as US Collateral Agent may see fit without prejudice to the liability of
Borrower or US Collateral Agent’s right to hold and realize the Lien created under any Financing Agreement, and/or (ix) terminate this Agreement. If any of the Collateral is sold or leased by US Collateral Agent upon credit terms or for
future delivery, the Obligations shall not be reduced as a result thereof until payment therefor is finally collected by US Collateral Agent. If notice of disposition of Collateral is required by law, five (5) days prior notice by US Collateral
Agent to Borrower designating the time and place of any public sale or the time after which any private sale or other intended disposition of Collateral is to be made, shall be deemed to be reasonable notice thereof and Borrower waives any other
notice. In the event US Collateral Agent institutes an action to recover any Collateral or seeks recovery of any Collateral by way of pre-judgment remedy, Borrower waives the posting of any bond which might otherwise be required. 
 (c) Lender may apply the cash proceeds of Collateral actually received by US Collateral Agent from any sale, lease, foreclosure or other disposition of
the Collateral to payment of the Obligations, in whole or in part and in such order as Lender may elect, whether or not then due. Borrower shall remain liable to Lender for the payment of any deficiency with interest at the highest rate provided for
herein and all costs and expenses of collection or enforcement, including legal costs and expenses. 
  

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 (d) Without limiting the foregoing, upon the occurrence of an Event of Default or an event which with
notice or passage of time or both would constitute an Event of Default, and while such Event of Default or event is continuing, Lender may, at its option, without notice, (i) cease making Revolving Loans or arranging Letter of Credit
Accommodations or reduce the lending formulas or amounts of Revolving Loans and Letter of Credit Accommodations available to Borrower and/or (ii) terminate any provision of this Agreement providing for any future Revolving Loans or Letter of
Credit Accommodations to be made by Lender to Borrower. 
 (e) Borrower shall pay all costs, charges and expenses incurred by Lender, US
Collateral Agent or any nominee or agent of Lender or US Collateral Agent, whether directly or for services rendered (including reasonable auditor’s costs and legal expenses) in enforcing this Agreement or any other Financing Agreement and in
enforcing or collecting Obligations and all such expenses together with any money owing as a result of any borrowing permitted hereby shall be a charge on the proceeds of realization and shall be secured hereby. 
 SECTION 10 JURY TRIAL WAIVER; OTHER WAIVERS AND CONSENTS; GOVERNING LAW 
  

	10.1	Governing Law; Choice of Forum; Service of Process; Jury Trial Waiver 

 (a) The validity, interpretation and enforcement of this Agreement and the other Financing Agreements and any dispute arising out of the relationship between the parties hereto, whether in contract, tort, equity or
otherwise, shall be governed by the internal laws of the State of California (without giving effect to principles of conflicts of law) except to the extent that the law of another jurisdiction is specified in a Financing Agreement to be the
governing law for that Financing Agreement. 
 (b) Borrower, Lender and US Collateral Agent irrevocably consent and submit to the
non-exclusive jurisdiction of the courts of California and waive any objection based on venue or forum non conveniens with respect to any action instituted therein arising under this Agreement or any of the other Financing Agreements or in
any way connected with or related or incidental to the dealings of the parties hereto in respect of this Agreement or any of the other Financing Agreements or the transactions related hereto or thereto, in each case whether now existing or hereafter
arising, and whether in contract, tort, equity or otherwise, and agree that any dispute with respect to any such matters shall be heard only in the courts described above (except that Lender and/or US Collateral Agent shall have the right to bring
any action or proceeding against Borrower or its property in the courts of any other jurisdiction which Lender and/or US Collateral Agent deems necessary or appropriate in order to realize on the Collateral or to otherwise enforce its rights against
Borrower or its property). 
 (c) To the extent permitted by law, Borrower hereby waives personal service of any and all process upon it and
consents that all such service of process may be made by certified mail (return receipt requested) directed to its address set forth on the signature pages hereof and service so made shall be deemed to be completed five (5) days after the same
shall have been so deposited in the US mails, or, at Lender’s or US Collateral Agent’s option, by service upon Borrower in any other manner provided under the rules of any such courts. Within thirty (30)

  

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days after such service, Borrower shall appear in answer to such process, failing which Borrower shall be deemed in default and judgment may be entered by
Lender or US Collateral Agent against Borrower for the amount of the claim and other relief requested. 
 (d) BORROWER AND LENDER AND US
COLLATERAL AGENT EACH HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (i) ARISING UNDER THIS AGREEMENT OR ANY OF THE OTHER FINANCING AGREEMENTS OR (ii) IN ANY WAY CONNECTED WITH OR RELATED OR
INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE OTHER FINANCING AGREEMENTS OR THE TRANSACTIONS RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT,
TORT, EQUITY OR OTHERWISE. BORROWER AND LENDER AND US COLLATERAL AGENT EACH HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT BORROWER, LENDER AND/OR US
COLLATERAL AGENT MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 
 (e) Neither Lender nor US Collateral Agent shall have any liability to Borrower (whether in tort, contract, equity or otherwise) for losses suffered by
Borrower or any Obligor in connection with, arising out of, or in any way related to the transactions or relationships contemplated by this Agreement or any other Financing Agreement, or any act, omission or event occurring in connection herewith,
unless it is determined by a final and non-appealable judgment or court order binding on Lender and US Collateral Agent, that the losses were the result of acts or omissions constituting gross negligence or willful misconduct. In any such
litigation, each of Lender and US Collateral Agent shall be entitled to the benefit of the rebuttable presumption that it acted in good faith and with the exercise of ordinary care in the performance by it of the terms of this Agreement or any other
Financing Agreement. 
 (f) Borrower hereby expressly waives all rights and notice and hearing of any kind prior to the exercise of rights by
Lender or US Collateral Agent while an Event of Default exists, to repossess the Collateral with judicial process or to replevy, attach or levy upon the Collateral or other security for the Obligations. Borrower waives the posting of any bond
otherwise required of Lender or US Collateral Agent in connection with any judicial process or proceeding to obtain possession of, replevy, attach or levy upon the Collateral or other security for the Obligations, to enforce any judgment or other
court order entered in favor of Lender or US Collateral Agent, or to enforce by specific performance, temporary restraining order, preliminary or permanent injunction, this Agreement or any other Financing Agreement. 
  

	10.2	Waiver of Notices 

 Borrower hereby expressly waives
demand, presentment, protest and notice of protest and notice of dishonor with respect to any and all instruments and commercial paper, included in or evidencing any of the Obligations or the Collateral, and any and all other demands and notices of
any kind or nature whatsoever with respect to the Obligations, the Collateral and 

  

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this Agreement, except such as are expressly provided for herein. No notice to or demand on Borrower or any Obligor which Lender or US Collateral Agent may
elect to give shall entitle Borrower or any Obligor to any other or further notice or demand in the same, similar or other circumstances. 
  

	10.3	Amendments and Waivers 

 Neither this Agreement nor
any provision hereof shall be amended, modified, waived or discharged orally or by course of conduct, but only by a written agreement signed by an authorized officer of Lender and US Collateral Agent, and as to amendments, as also signed by an
authorized officer of Borrower. Neither Lender nor US Collateral Agent shall, by any act, delay, omission or otherwise be deemed to have expressly or impliedly waived any of its rights, powers and/or remedies unless such waiver shall be in writing
and signed by an authorized officer of Lender or US Collateral Agent, as applicable. Any such waiver shall be enforceable only to the extent specifically set forth therein. A waiver by Lender or US Collateral. Agent of any right, power and/or remedy
on any one occasion shall not be construed as a bar to or waiver of any such right, power and/or remedy which Lender or US Collateral Agent would otherwise have on any future occasion, whether similar in kind or otherwise. 
  

	10.4	Waiver of Counterclaims 

 Borrower waives all rights
to interpose any claims, deductions, setoffs or counterclaims of any nature (other than compulsory counterclaims) in any action or proceeding with respect to this Agreement, the Obligations, the Collateral or any matter arising therefrom or relating
hereto or thereto. 
  

	10.5	Indemnification 

 Borrower shall indemnify and hold
Lender, US Collateral Agent and their respective directors, agents, employees and counsel, harmless from and against any and all losses, claims, damages, liabilities, costs or expenses imposed on, incurred by or asserted against any of them in
connection with any litigation, investigation, claim or proceeding commenced or threatened related to the negotiation, preparation, execution, delivery, enforcement, performance or administration of this Agreement, any other Financing Agreements, or
any undertaking or proceeding related to any of the transactions contemplated hereby or any act, omission, event or transaction related or attendant thereto, including amounts paid in settlement, court costs, and the fees and expenses of counsel. To
the extent that the undertaking to indemnify, pay and hold harmless set forth in this Section may be unenforceable because it violates any law or public policy, Borrower shall pay the maximum portion which it is permitted to pay under applicable law
to Lender and US Collateral Agent in satisfaction of indemnified matters under this Section. The foregoing indemnity shall survive the payment of the Obligations and the termination of this Agreement. To the extent that any person that is entitled
to the benefit of the indemnity set forth in this Section is not a party hereto, Lender shall hold the benefit to which such person is entitled hereunder in trust for and on behalf of such person. Notwithstanding the foregoing, Borrower shall have
no obligation hereunder to the extent of any liability resulting from the negligence or willful misconduct of Lender or other Person referred to herein or with respect to Hazardous 

  

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Materials deposited on any property after it is no longer owned, possessed or controlled by Borrower or any Obligor. 
 SECTION 11 TERM OF AGREEMENT; MISCELLANEOUS 
  

	11.1	Term 

 (a) This Agreement and the other Financing
Agreements are effective as of the respective dates thereof set forth on the respective first pages thereof and shall continue in full force and effect for a term ending on October 30, 2009 (the “Termination Date”), unless
sooner terminated pursuant to the terms hereof. Lender or Borrower may terminate this Agreement and the other Financing Agreements effective on the Termination Date by giving to the other party prior written notice; provided, that,
this Agreement and all other Financing Agreements must be terminated simultaneously. Upon the effective date of termination of the Financing Agreements, Borrower shall pay to Lender, in full, all outstanding and unpaid Obligations and shall furnish
cash collateral to Lender in such amounts as Lender determines are necessary to secure Lender from loss, cost, damage or expense, including legal fees and expenses, in connection with any contingent Obligations, including issued and outstanding
Letter of Credit Accommodations and checks or other payments provisionally credited to the Obligations and/or as to which Lender has not yet received final and indefeasible payment. Such payments in respect of the Obligations and cash collateral
shall be remitted by wire transfer in US Dollars to such bank account of Lender, as Lender may, in its discretion, designate in writing to Borrower for such purpose. Interest shall be due until and including the next Business Day, if the amounts so
paid by Borrower to the bank account designated by Lender are received in such bank account later than 12:00 noon, Chicago time. 
 (b) No
termination of this Agreement or the other Financing Agreements shall relieve or discharge Borrower of its respective duties, obligations and covenants under this Agreement or the other Financing Agreements until all Obligations have been fully and
finally discharged and paid, and US Collateral Agent’s and/or Lender’s continuing Lien in the Collateral and the rights and remedies of Lender hereunder, under the other Financing Agreements and applicable law, shall remain in effect until
all such Obligations have been fully and finally discharged and paid. 
 (c) If for any reason this Agreement is terminated prior to the end
of the then current term of this Agreement, in view of the impracticality and extreme difficulty of ascertaining actual damages and by mutual agreement of the parties as to a reasonable calculation of Lender’s lost profits as a result thereof,
Borrower agrees to pay to Lender, upon the effective date of such termination, an early termination fee in the amount of 0.25% of the Maximum Credit. 
 Such early termination fee shall be presumed to be the amount of damages sustained by Lender as a result of such early termination and Borrower agrees that it is reasonable under the circumstances currently existing.
In addition, Lender shall be entitled to such early termination fee upon the occurrence of any Event of Default described in Section 9.1(g) and Section 9.1(h) hereof, even if Lender does not exercise its right to terminate this Agreement,
but elects, at its option, to provide financing to Borrower or permit the use of cash 

  

 - 50 - 

 
collateral under any applicable reorganization or insolvency legislation. The early termination fee provided for in this Section 11.1 shall be deemed
included in the Obligations. 
  

	11.2	Notices 

 All notices, requests and demands
hereunder shall be in writing and (a) made to US Collateral Agent and/or Lender at its address set forth below and to Borrower at its chief executive office set forth below, or to such other address as either party may designate by written
notice to the other in accordance with this provision, and (b) deemed to have been given or made: if delivered in person, immediately upon delivery; if by facsimile transmission, immediately upon sending and upon confirmation of receipt; if by
nationally recognized overnight courier service with instructions to deliver the next business day, one (1) Business Day after sending; and if by certified mail, return receipt requested, five (5) days after mailing. 
  

	11.3	Partial Invalidity 

 If any provision of this
Agreement is held to be invalid or unenforceable, such invalidity or unenforceability shall not invalidate this Agreement as a whole, but this Agreement shall be construed as though it did not contain the particular provision held to be invalid or
unenforceable and the rights and obligations of the parties shall be construed and enforced only to such extent as shall be permitted by applicable law. 
  

	11.4	Successors 

 This Agreement, the other Financing
Agreements and any other document referred to herein or therein shall be binding upon and inure to the benefit of and be enforceable by US Collateral Agent, Lender, Borrower and their respective successors and assigns, except that Borrower may not
assign its rights under this Agreement, the other Financing Agreements and any other document referred to herein or therein without the prior written consent of Lender and US Collateral Agent. US Collateral Agent and/or Lender may, after written
notice to Borrower, assign its rights and delegate its obligations under this Agreement and the other Financing Agreements and further may assign, or sell participations in, all or any part of the Revolving Loans, the Letter of Credit Accommodations
or any other interest herein to another financial institution or other person, provided that such assignment or participation, as applicable, does not create any withholding tax obligations of Borrower; and upon the completion of any such assignment
or participation, as applicable, such assignee or participant shall have, to the extent of such assignment or participation, the same rights and benefits as it would have if it were Lender and/or US Collateral Agent, as applicable, hereunder,
subject to the terms of such assignment or participation. 
  

	11.5	Entire Agreement 

 This Agreement, the other
Financing Agreements, any supplements hereto or thereto, and any instruments or documents delivered or to be delivered in connection herewith or therewith represents the entire agreement and understanding concerning the subject matter hereof and
thereof between the parties hereto, and supersede all other prior agreements, understandings, negotiations and discussions, representations, warranties, commitments, proposals, offers and contracts concerning the subject matter hereof, whether oral
or written. In the event of any 

  

 - 51 - 

 
inconsistency between the terms of this Agreement and any schedule or exhibit hereto, the terms of this Agreement shall govern. 
  

	11.6	Headings 

 The division of this Agreement into
Sections and the insertion of headings and a table of contents are for convenience of reference only and shall not affect the construction or interpretation of this Agreement. 
  

	11.7	Judgment Currency 

 To the extent permitted by
applicable law, the obligations of Borrower in respect of any amount due under this Agreement shall, notwithstanding any payment in any other currency (the “Other Currency”) (whether pursuant to a judgment or otherwise), be
discharged only to the extent of the amount in the currency in which it is due (the “Agreed Currency”) that Lender may, in accordance with normal banking procedures, purchase with the sum paid in the Other Currency (after any
premium and costs of exchange) on the Business Day immediately after the day on which Lender receives the payment. If the amount in the Agreed Currency that may be so purchased for any reason falls short of the amount originally due, Borrower shall
pay all additional amounts, in the Agreed Currency, as may be necessary to compensate for the shortfall. Any obligation of Borrower not discharged by that payment shall, to the extent permitted by applicable law, be due as a separate and independent
obligation and, until discharged as provided in this Section, continue in full force and effect. 
  

	11.8	Amended and Restatement; No Novation 

 This
Agreement amends, restates, consolidates and supplements certain provisions of the Loan Agreement. Any provision hereof which differs from or is inconsistent with a provision of the Loan Agreement constitutes an amendment to the Loan Agreement with
each such amendment being effective as and from the date hereof. The provisions of the Loan Agreement as amended hereby have been consolidated and restated in this Agreement. This Agreement will not discharge or constitute a novation of any debt,
obligation, covenant or agreement contained in the Loan Agreement or any of the other Financing Agreements but same shall remain in full force and effect save to the extent same are amended by the provisions in this Agreement. 
  

	11.9	Confirmation of Existing Security 

 Borrower
acknowledges and confirms that, notwithstanding the execution of this Agreement, each of the existing security documents that Borrower has executed in favor of Lender and/or US Collateral Agent including the General Security Agreement and the
Intellectual Property Security Agreements, (i) remains in full force and effect and has not been terminated, discharged or released, and (ii) constitutes a legal, valid and binding obligation of Borrower enforceable against Borrower in
accordance with its terms except as the same is limited by bankruptcy, insolvency or similar laws affecting creditors’ rights generally and the discretion of the court as to the granting of equitable remedies. 
  

 - 52 - 

 IN WITNESS WHEREOF, US Collateral Agent, Lender and Borrower have caused these presents to be duly
executed as of the day and year first above written. 
  

									
	 US COLLATERAL AGENT and LENDER
	 		 	 BORROWER

			
	WACHOVIA CAPITAL FINANCE CORPORATION (CENTRAL)	 		 	MAD CATZ, INC.
					
	By:	 	/s/ NIALL HAMILTON	 		 	By:	 	/s/ WHITNEY E. PETERSON
	Title:	 	Senior Vice President	 		 	Title:	 	Vice President and General Counsel
			
	 Address:
  
 150 South Wacker Drive
 Chicago, Illinois 60606
 Fax: (312) 332-0424
	 		 	 Chief Executive Office:
  
 7480 Mission Valley Road
 Suite 101
 San Diego, California
 92108

  

 - 53 -Amended and Restated Credit Agreement - dated as of October 30, 2006

 Exhibit 10.1 
  

 AMENDED AND RESTATED CREDIT
AGREEMENT 
 DATED AS OF OCTOBER 30, 2006, 
 AMONG 
 NOBEL
LEARNING COMMUNITIES, INC., 
 THE GUARANTORS FROM
TIME TO TIME PARTIES HERETO, 
 THE
LENDERS FROM TIME TO TIME PARTIES HERETO, 
 AND 
 HARRIS N.A., 
 as Administrative Agent 
  

 BMO CAPITAL MARKETS, AS SOLE LEAD ARRANGER AND SOLE BOOK
RUNNER 
 CITIZENS BANK OF PENNSYLVANIA, AS
SYNDICATION AGENT 
 MANUFACTURERS AND TRADERS TRUST
COMPANY, AS DOCUMENTATION AGENT 
  

 TABLE OF CONTENTS 
  

					
	 SECTION
	    	 HEADING
	  	PAGE
			
	 SECTION 1.
	    	 THE CREDIT FACILITIES
	  	1
			
	 Section 1.1.
	    	Revolving Credit Commitments	  	1
	 Section 1.2.
	    	Letters of Credit	  	1
	 Section 1.3.
	    	Applicable Interest Rates	  	4
	 Section 1.4.
	    	Minimum Borrowing Amounts; Maximum Eurodollar Loans	  	6
	 Section 1.5.
	    	Manner of Borrowing Loans and Designating Applicable Interest Rates	  	6
	 Section 1.6.
	    	Interest Periods	  	8
	 Section 1.7.
	    	Maturity of Revolving Loans and Swing Loans	  	9
	 Section 1.8.
	    	Prepayments	  	9
	 Section 1.9.
	    	Default Rate	  	11
	 Section 1.10.
	    	Evidence of Indebtedness	  	11
	 Section 1.11.
	    	Funding Indemnity	  	12
	 Section 1.12.
	    	Commitment Terminations	  	13
	 Section 1.13.
	    	Substitution of Lenders	  	13
	 Section 1.14.
	    	Swing Loans	  	14
			
	 SECTION 2.
	    	FEES	  	15
			
	 Section 2.1.
	    	Fees	  	15
			
	 SECTION 3.
	    	 PLACE AND APPLICATION OF PAYMENTS
	  	16
			
	 Section 3.1.
	    	Place and Application of Payments	  	16
	 Section 3.2.
	    	Account Debit	  	18
			
	 SECTION 4.
	    	 GUARANTIES AND COLLATERAL
	  	18
			
	 Section 4.1.
	    	Guaranties	  	18
	 Section 4.2.
	    	Collateral	  	18
	 Section 4.3.
	    	Liens on Real Property	  	19
	 Section 4.4.
	    	Further Assurances	  	19
	 Section 4.5.
	    	Collections	  	19
			
	 SECTION 5.
	    	 DEFINITIONS; INTERPRETATION
	  	20
			
	 Section 5.1.
	    	Definitions	  	20
	 Section 5.2.
	    	Interpretation	  	36
	 Section 5.3.
	    	Change in Accounting Principles	  	36
			
	 SECTION 6.
	    	 REPRESENTATIONS AND WARRANTIES
	  	36
			
	 Section 6.1.
	    	Organization and Qualification	  	36
	 Section 6.2.
	    	Subsidiaries	  	37

					
	 Section 6.3.
	    	Authority and Validity of Obligations	  	37
	 Section 6.4.
	    	Use of Proceeds; Margin Stock	  	38
	 Section 6.5.
	    	Financial Reports	  	38
	 Section 6.6.
	    	No Material Adverse Change	  	38
	 Section 6.7.
	    	Full Disclosure	  	38
	 Section 6.8.
	    	Trademarks, Franchises, and Licenses	  	39
	 Section 6.9.
	    	Governmental Authority and Licensing	  	39
	 Section 6.10.
	    	Good Title	  	39
	 Section 6.11.
	    	Litigation and Other Controversies	  	39
	 Section 6.12.
	    	Taxes	  	39
	 Section 6.13.
	    	Approvals	  	40
	 Section 6.14.
	    	Affiliate Transactions	  	40
	 Section 6.15.
	    	Investment Company	  	40
	 Section 6.16.
	    	ERISA	  	40
	 Section 6.17.
	    	Compliance with Laws	  	40
	 Section 6.18.
	    	Other Agreements	  	41
	 Section 6.19.
	    	Solvency	  	41
	 Section 6.20.
	    	No Broker Fees.	  	41
	 Section 6.21.
	    	No Default	  	41
			
	 SECTION 7.
	    	 CONDITIONS PRECEDENT
	  	42
			
	 Section 7.1.
	    	All Credit Events	  	42
	 Section 7.2.
	    	Initial Credit Event	  	42
	 Section 7.3.
	    	Real Property Matters	  	44
			
	 SECTION 8.
	    	 COVENANTS
	  	44
			
	 Section 8.1.
	    	Maintenance of Business	  	45
	 Section 8.2.
	    	Maintenance of Properties	  	45
	 Section 8.3.
	    	Taxes and Assessments	  	45
	 Section 8.4.
	    	Insurance	  	45
	 Section 8.5.
	    	Financial Reports	  	45
	 Section 8.6.
	    	Inspection	  	47
	 Section 8.7.
	    	Borrowings and Guaranties	  	48
	 Section 8.8.
	    	Liens	  	49
	 Section 8.9.
	    	Investments, Acquisitions, Loans and Advances	  	50
	 Section 8.10.
	    	Mergers, Consolidations and Sales	  	51
	 Section 8.11.
	    	Maintenance of Subsidiaries	  	52
	 Section 8.12.
	    	Dividends and Certain Other Restricted Payments	  	52
	 Section 8.13.
	    	ERISA	  	53
	 Section 8.14.
	    	Compliance with Laws	  	53
	 Section 8.15.
	    	Burdensome Contracts With Affiliates	  	54
	 Section 8.16.
	    	No Changes in Fiscal Year	  	54
	 Section 8.17.
	    	Formation of Subsidiaries	  	54
	 Section 8.18.
	    	Change in the Nature of Business	  	55
	 Section 8.19.
	    	Use of Proceeds	  	55

  

 -ii- 

					
	 Section 8.20.
	    	No Restrictions	  	55
	 Section 8.21.
	    	Financial Covenants	  	56
			
	 SECTION 9.
	    	 EVENTS OF DEFAULT AND REMEDIES
	  	57
			
	 Section 9.1.
	    	Events of Default	  	57
	 Section 9.2.
	    	Non-Bankruptcy Defaults	  	59
	 Section 9.3.
	    	Bankruptcy Defaults	  	59
	 Section 9.4.
	    	Collateral for Undrawn Letters of Credit	  	59
	 Section 9.5.
	    	Notice of Default	  	60
	 Section 9.6.
	    	Expenses	  	60
			
	 SECTION 10.
	    	 CHANGE IN CIRCUMSTANCES
	  	60
			
	 Section 10.1.
	    	Change of Law	  	60
	 Section 10.2.
	    	Unavailability of Deposits or Inability to Ascertain, or Inadequacy of, LIBOR	  	61
	 Section 10.3.
	    	Increased Cost and Reduced Return	  	61
	 Section 10.4.
	    	Lending Offices	  	63
	 Section 10.5.
	    	Discretion of Lender as to Manner of Funding	  	63
			
	 SECTION 11.
	    	 THE ADMINISTRATIVE AGENT
	  	63
			
	 Section 11.1.
	    	Appointment and Authorization of Administrative Agent	  	63
	 Section 11.2.
	    	Administrative Agent and its Affiliates	  	63
	 Section 11.3.
	    	Action by Administrative Agent	  	64
	 Section 11.4.
	    	Consultation with Experts	  	64
	 Section 11.5.
	    	Liability of Administrative Agent; Credit Decision	  	64
	 Section 11.6.
	    	Indemnity	  	65
	 Section 11.7.
	    	Resignation of Administrative Agent and Successor Administrative Agent	  	65
	 Section 11.8.
	    	L/C Issuer.	  	66
	 Section 11.9.
	    	Hedging Liability and Funds Transfer and Deposit Account Liability Arrangements	  	66
	 Section 11.10.
	    	 Designation of Additional Agents
	  	66
	 Section 11.11.
	    	 Authorization to Release or Subordinate or Limit Liens
	  	67
	 Section 11.12.
	    	 Authorization to Enter into, and Enforcement of, the Collateral Documents
	  	67
			
	 SECTION 12.
	    	 THE GUARANTEES
	  	67
			
	 Section 12.1.
	    	The Guarantees	  	67
	 Section 12.2.
	    	Guarantee Unconditional	  	68
	 Section 12.3.
	    	Discharge Only upon Payment in Full; Reinstatement in Certain Circumstances	  	69
	 Section 12.4.
	    	Subrogation	  	69
	 Section 12.5.
	    	Waivers	  	70
	 Section 12.6.
	    	Limit on Recovery	  	70

  

 -iii- 

					
	 Section 12.7.
	    	Stay of Acceleration	  	70
	 Section 12.8.
	    	Benefit to Guarantors	  	70
	 Section 12.9.
	    	Guarantor Covenants	  	70
			
	 SECTION 13.
	    	 MISCELLANEOUS
	  	70
			
	 Section 13.1.
	    	Withholding Taxes	  	70
	 Section 13.2.
	    	No Waiver, Cumulative Remedies	  	72
	 Section 13.3.
	    	Non-Business Days	  	72
	 Section 13.4.
	    	Documentary Taxes	  	72
	 Section 13.5.
	    	Survival of Representations	  	72
	 Section 13.6.
	    	Survival of Indemnities	  	72
	 Section 13.7.
	    	Sharing of Set-Off	  	72
	 Section 13.8.
	    	Notices	  	73
	 Section 13.9.
	    	Counterparts	  	73
	 Section 13.10.
	    	 Successors and Assigns
	  	74
	 Section 13.11.
	    	 Participants
	  	74
	 Section 13.12.
	    	 Assignments
	  	74
	 Section 13.13.
	    	 Amendments
	  	76
	 Section 13.14.
	    	 Headings
	  	77
	 Section 13.15.
	    	 Costs and Expenses; Indemnification
	  	77
	 Section 13.16.
	    	 Set-off
	  	78
	 Section 13.17.
	    	 Entire Agreement
	  	79
	 Section 13.18.
	    	 Governing Law
	  	79
	 Section 13.19.
	    	 Severability of Provisions
	  	79
	 Section 13.20.
	    	 Excess Interest
	  	79
	 Section 13.21.
	    	 Construction
	  	80
	 Section 13.22.
	    	 Lender’s Obligations Several
	  	80
	 Section 13.23.
	    	 Submission to Jurisdiction; Waiver of Jury Trial
	  	80
	 Section 13.24.
	    	 USA Patriot Act
	  	81
	 Section 13.25.
	    	 Confidentiality
	  	81
		
	Signature Page	  	S-1

  

 -iv- 

					
	 EXHIBIT A
	  	—  	    	Notice of Payment Request
	 EXHIBIT B
	  	—  	    	Notice of Borrowing
	 EXHIBIT C
	  	—  	    	Notice of Continuation/Conversion
	 EXHIBIT D-1
	  	—  	    	Revolving Note
	 EXHIBIT D-2
	  	—  	    	Swing Note
	 EXHIBIT E
	  	—  	    	Compliance Certificate
	 EXHIBIT F
	  	—  	    	Additional Guarantor Supplement
	 EXHIBIT G
	  	—  	    	Assignment and Acceptance
	 SCHEDULE 1
	  	—  	    	Commitments
	 SCHEDULE 1.3
	  	—  	    	Existing Letters of Credit
	 SCHEDULE 5.1
	  	—  	    	Scheduled EBITDA Adjustments
	 SCHEDULE 6.2
	  	—  	    	Subsidiaries
	 SCHEDULE 6.5
	  	—  	    	Financial Reports
	 SCHEDULE 6.6
	  	—  	    	No Material Adverse Change
	 SCHEDULE 6.8
	  	—  	    	Trademarks, Franchises and Licenses
	 SCHEDULE 6.12
	  	—  	    	Taxes
	 SCHEDULE 6.16
	  	—  	    	ERISA
	 SCHEDULE 6.20
	  	—  	    	No Broker Fees
	 SCHEDULE 8.7
	  	—  	    	Borrowings and Guaranties
	 SCHEDULE 8.10
	  	—  	    	Mergers, Consolidations and Sales

  

 -v- 

 CREDIT AGREEMENT 
 This Amended and Restated Credit Agreement is entered into as of October 30, 2006, by and among NOBEL LEARNING
COMMUNITIES, INC., a Delaware corporation (the “Borrower”), the direct and indirect Subsidiaries of the Borrower from time to time party to this Agreement, as Guarantors, the several financial
institutions from time to time party to this Agreement, as Lenders, and HARRIS N.A., as Administrative Agent as provided herein. All capitalized terms used herein without definition shall have the same meanings herein as such terms
are defined in Section 5.1 hereof. 
 PRELIMINARY STATEMENT 
 The parties hereto have previously entered into that certain Credit Agreement dated as of February 20, 2004 (as amended, modified or supplemented
prior to the date hereof, the “Original Agreement”). 
 The Borrower has requested, and the Lenders have agreed to amend and
restate the Original Agreement in its entirety, and to extend certain credit facilities on the terms and conditions of this Agreement. 
 NOW, THEREFORE, in consideration of the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby
agree as follows: 
 SECTION 1. THE CREDIT FACILITIES.

 Section 1.1. Revolving Credit Commitments. Subject to the terms and conditions hereof, each Lender, by its acceptance hereof,
severally agrees to make a loan or loans (individually a “Revolving Loan” and collectively the “Revolving Loans”) in U.S. Dollars to the Borrower from time to time on a revolving basis up to the amount of such
Lender’s Revolving Credit Commitment, subject to any reductions thereof pursuant to the terms hereof, before the Revolving Credit Termination Date. The sum of the aggregate principal amount of Revolving Loans, Swing Loans and
L/C Obligations at any time outstanding shall not exceed the Revolving Credit Commitments in effect at such time. Each Borrowing of Revolving Loans shall be made ratably by the Lenders in proportion to their respective Revolver
Percentages. As provided in Section 1.5(a) hereof, the Borrower may elect that each Borrowing of Revolving Loans be either Base Rate Loans or Eurodollar Loans. Revolving Loans may be repaid and the principal amount thereof reborrowed before the
Revolving Credit Termination Date, subject to the terms and conditions hereof. 
 Section 1.2. Letters of Credit.
(a) General Terms. Subject to the terms and conditions hereof, as part of the Revolving Credit, the L/C Issuer shall issue standby letters of credit (each a “Letter of Credit”) for the account of Borrower or for the
account of the Borrower and one or more of the Guarantors in an aggregate undrawn face amount up to the L/C Sublimit. Each Letter of Credit shall be issued by the L/C Issuer, but each Lender shall be obligated to reimburse 

 
the L/C Issuer for such Lender’s Revolver Percentage of the amount of each drawing thereunder and, accordingly, each Letter of Credit shall constitute
usage of the Revolving Credit Commitment of each Lender pro rata in an amount equal to its Revolver Percentage of the L/C Obligations then outstanding. The parties hereto hereby acknowledge and agree that each of the letters of credit set forth
on Schedule 1.3 hereto shall constitute Letters of Credit for all purposes of this Agreement. 
 (b) Applications. At any time
before the Revolving Credit Termination Date, the L/C Issuer shall, at the request of the Borrower, issue one or more Letters of Credit in U.S. Dollars, in a form satisfactory to the L/C Issuer, with expiration dates no later than the earlier
of 12 months from the date of issuance (or which are cancelable not later than 12 months from the date of issuance and each renewal) or 10 days prior to the Revolving Credit Termination Date, in an aggregate face amount as set forth above, upon
the receipt of an application duly executed by the Borrower and, if such Letter of Credit is for the account of one of the Guarantors, such Guarantor for the relevant Letter of Credit in the form then customarily prescribed by the L/C Issuer for the
Letter of Credit requested (each an “Application”). Notwithstanding anything contained in any Application to the contrary: (i) the Borrower shall pay fees in connection with each Letter of Credit as set forth in
Section 2.1 hereof, (ii) except as otherwise provided in Section 1.8 hereof, unless an Event of Default exists, the L/C Issuer will not call for the funding by the Borrower of any amount under a Letter of Credit before being presented
with a drawing thereunder, and (iii) if the L/C Issuer is not timely reimbursed for the amount of any drawing under a Letter of Credit on the date such drawing is paid, the Borrower’s obligation to reimburse the L/C Issuer for the amount
of such drawing shall bear interest (which the Borrower hereby promises to pay) from and after the date such drawing is paid at a rate per annum equal to the sum of the Applicable Margin plus the Base Rate from time to time in effect (computed on
the basis of a year of 365 or 366 days, as the case may be, and the actual number of days elapsed). If the L/C Issuer issues any Evergreen Letter of Credit, unless the Required Lenders instruct the L/C Issuer otherwise, the L/C Issuer will give
notice of non-renewal before the time necessary to prevent an automatic extension of such Evergreen Letter of Credit if before such required notice date: (i) the expiration date of such Letter of Credit if so extended would be after the
Revolving Credit Termination Date, (ii) the Revolving Credit Commitments have been terminated, or (iii) a Default or an Event of Default exists and the Administrative Agent, at the request or with the consent of the Required Lenders, has
given the L/C Issuer instructions not to so permit the extension of the expiration date of such Letter of Credit. The L/C Issuer agrees to issue amendments to the Letter(s) of Credit increasing the amount, or extending the expiration date, thereof
at the request of the Borrower subject to the conditions of Section 7 hereof and the other terms of this Section 1.2. 
 (c) The
Reimbursement Obligations. Subject to Section 1.2(b) hereof, the obligation of the Borrower to reimburse the L/C Issuer for all drawings under a Letter of Credit (a “Reimbursement Obligation”) shall be governed by the
Application related to such Letter of Credit, except that reimbursement shall be made by no later than 12:00 Noon (Chicago time) on the date when each drawing is to be paid if the Borrower has been informed of such drawing by the L/C Issuer on or
before 11:30 a.m. (Chicago time) on the date when such drawing is to be paid or, if notice of such drawing is given to the Borrower after 11:30 a.m. (Chicago time) on the date when such drawing is to be paid, by the end of such day, in
immediately available funds at 

  

 -2- 

 
the Administrative Agent’s principal office in Chicago, Illinois or such other office as the Administrative Agent may designate in writing to the
Borrower (who shall thereafter cause to be distributed to the L/C Issuer such amount(s) in like funds). If the Borrower does not make any such reimbursement payment on the date due and the Participating Lenders fund their participations therein in
the manner set forth in Section 1.2(d) below, then all payments thereafter received by the Administrative Agent in discharge of any of the relevant Reimbursement Obligations shall be distributed in accordance with Section 1.2(d) below.

 (d) The Participating Interests. Each Lender (other than the Lender acting as L/C Issuer in issuing the relevant Letter of Credit),
by its acceptance hereof, severally agrees to purchase from the L/C Issuer, and the L/C Issuer hereby agrees to sell to each such Lender (a “Participating Lender”), an undivided percentage participating interest (a
“Participating Interest”), to the extent of its Revolver Percentage, in each Letter of Credit issued by, and each Reimbursement Obligation owed to, the L/C Issuer. Upon any failure by the Borrower to pay any Reimbursement Obligation
at the time required on the date the related drawing is to be paid, as set forth in Section 1.2(c) above, or if the L/C Issuer is required at any time to return to the Borrower or to a trustee, receiver, liquidator, custodian or other Person
any portion of any payment of any Reimbursement Obligation, each Participating Lender shall, not later than the Business Day it receives a certificate in the form of Exhibit A hereto from the L/C Issuer (with a copy to the Administrative Agent)
to such effect, if such certificate is received before 1:00 p.m. (Chicago time), or not later than 1:00 p.m. (Chicago time) the following Business Day, if such certificate is received after such time, pay to the Administrative Agent for
the account of the L/C Issuer an amount equal to such Participating Lender’s Revolver Percentage of such unpaid or recaptured Reimbursement Obligation together with interest on such amount accrued from the date the related payment was made by
the L/C Issuer to the date of such payment by such Participating Lender at a rate per annum equal to: (i) from the date the related payment was made by the L/C Issuer to the date 2 Business Days after payment by such Participating Lender
is due hereunder, the Federal Funds Rate for each such day and (ii) from the date 2 Business Days after the date such payment is due from such Participating Lender to the date such payment is made by such Participating Lender, the Base
Rate in effect for each such day. Each such Participating Lender shall thereafter be entitled to receive its Revolver Percentage of each payment received in respect of the relevant Reimbursement Obligation and of interest paid thereon, with the L/C
Issuer retaining its Revolver Percentage thereof as a Lender hereunder. The several obligations of the Participating Lenders to the L/C Issuer under this Section 1.2 shall be absolute, irrevocable, and unconditional under any and all
circumstances whatsoever and shall not be subject to any set-off, counterclaim or defense to payment which any Participating Lender may have or have had against the Borrower, the L/C Issuer, the Administrative Agent, any Lender or any other Person
whatsoever. Without limiting the generality of the foregoing, such obligations shall not be affected by any Default or Event of Default or by any reduction or termination of the Revolving Credit Commitment of any Lender, and each payment by a
Participating Lender under this Section 1.2 shall be made without any offset, abatement, withholding or reduction whatsoever. 
 (e)
Indemnification. The Participating Lenders shall, to the extent of their respective Revolver Percentages, indemnify the L/C Issuer (to the extent not reimbursed by the Borrower) against any cost, expense (including reasonable counsel fees and
disbursements), claim, demand, 

  

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action, loss or liability (except where arising from the L/C Issuer’s gross negligence or willful misconduct) that the L/C Issuer may suffer or incur in
connection with any Letter of Credit issued by it. The obligations of the Participating Lenders under this Section 1.2(e) and all other parts of this Section 1.2 shall survive termination of this Agreement and of all Applications, Letters
of Credit, and all drafts and other documents presented in connection with drawings thereunder. 
 (f) Manner of Requesting a Letter of
Credit. The Borrower shall provide at least five (5) Business Days’ (or such shorter period of time then agreed to in writing by the Administrative Agent) advance written notice to the Administrative Agent of each request for the
issuance of a Letter of Credit, such notice in each case to be accompanied by an Application for such Letter of Credit properly completed and executed by the Borrower and, in the case of an extension or an increase in the amount of a Letter of
Credit, a written request therefor, in a form acceptable to the Administrative Agent and the L/C Issuer, in each case, together with the fees called for by this Agreement. The Administrative Agent shall promptly notify the L/C Issuer of the
Administrative Agent’s receipt of each such notice and the L/C Issuer shall promptly notify the Administrative Agent and the Lenders of the issuance of the Letter of Credit so requested. 
 Section 1.3. Applicable Interest Rates. (a) Base Rate Loans. Each Base Rate Loan made or maintained by a Lender shall bear
interest during each Interest Period it is outstanding (computed on the basis of a year of 365 or 366 days, as the case may be, and the actual days elapsed) on the unpaid principal amount thereof from the date such Loan is advanced or
continued, or created by conversion from a Eurodollar Loan, until maturity (whether by acceleration or otherwise) at a rate per annum equal to the sum of the Applicable Margin plus the Base Rate from time to time in effect, payable on the last day
of its Interest Period and at maturity (whether by acceleration or otherwise). 
 “Base Rate” means for any day the greater
of: (i) the rate of interest announced or otherwise established by the Administrative Agent from time to time as its prime commercial rate as in effect on such day, with any change in the Base Rate resulting from a change in said prime
commercial rate to be effective as of the date of the relevant change in said prime commercial rate (it being acknowledged and agreed that such rate may not be the Administrative Agent’s best or lowest rate) and (ii) the sum of
(x) the rate determined by the Administrative Agent to be the average (rounded upward, if necessary, to the next higher 1/100 of 1%) of the rates per annum quoted to the Administrative Agent at approximately 10:00 a.m. (Chicago time) (or as
soon thereafter as is practicable) on such day (or, if such day is not a Business Day, on the immediately preceding Business Day) by two or more Federal funds brokers selected by the Administrative Agent for sale to the Administrative Agent at face
value of Federal funds in the secondary market in an amount equal or comparable to the principal amount owed to the Administrative Agent for which such rate is being determined, plus (y) 1/2 of 1%. 
 (b) Eurodollar Loans. Each Eurodollar Loan made or maintained by a Lender shall bear interest during each Interest Period it is outstanding
(computed on the basis of a year of 360 days and actual days elapsed) on the unpaid principal amount thereof from the date such Loan is advanced or continued, or created by conversion from a Base Rate Loan, until maturity (whether by
acceleration or otherwise) at a rate per annum equal to the sum of the Applicable 

  

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Margin plus the Adjusted LIBOR applicable for such Interest Period, payable on the last day of the Interest Period and at maturity (whether by acceleration
or otherwise), and, if the applicable Interest Period is longer than three months, on each day occurring every three months after the commencement of such Interest Period. 
 “Adjusted LIBOR” means, for any Borrowing of Eurodollar Loans, a rate per annum determined in accordance with the following formula:

  

							
	Adjusted LIBOR	  	=	  	 LIBOR
	  	
		  		  	1 - Eurodollar Reserve Percentage	  	

 “Eurodollar Reserve Percentage” means, for any Borrowing of Eurodollar Loans, the
daily average for the applicable Interest Period of the maximum rate, expressed as a decimal, at which reserves (including, without limitation, any supplemental, marginal, and emergency reserves) are imposed during such Interest Period by the Board
of Governors of the Federal Reserve System (or any successor) on “eurocurrency liabilities”, as defined in such Board’s Regulation D (or in respect of any other category of liabilities that includes deposits by reference
to which the interest rate on Eurodollar Loans is determined or any category of extensions of credit or other assets that include loans by non-United States offices of any Lender to United States residents), subject to any amendments of such reserve
requirement by such Board or its successor, taking into account any transitional adjustments thereto. For purposes of this definition, the Eurodollar Loans shall be deemed to be “eurocurrency liabilities” as defined in
Regulation D without benefit or credit for any prorations, exemptions or offsets under Regulation D. 
 “LIBOR”
means, for an Interest Period for a Borrowing of Eurodollar Loans, (a) the LIBOR Index Rate for such Interest Period, if such rate is available, and (b) if the LIBOR Index Rate cannot be determined, the arithmetic average of the rates of
interest per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) at which deposits in U.S. Dollars in immediately available funds are offered to the Administrative Agent at 11:00 a.m. (London, England time) 2 Business
Days before the beginning of such Interest Period by 3 or more major banks in the interbank eurodollar market selected by the Administrative Agent for delivery on the first day of and for a period equal to such Interest Period and in an amount equal
or comparable to the principal amount of the Eurodollar Loan scheduled to be made by the Administrative Agent as part of such Borrowing. 
 “LIBOR Index Rate” means, for any Interest Period, the rate per annum (rounded upwards, if necessary, to the next higher one hundred-thousandth of a percentage point) for deposits in U.S. Dollars for a period equal to
such Interest Period, which appears on the Telerate Page 3750 as of 11:00 a.m. (London, England time) on the day 2 Business Days before the commencement of such Interest Period. 
 “Telerate Page 3750” means the display designated as “Page 3750” on the Telerate Service (or such other page as may
replace Page 3750 on that service or such other service as may be nominated by the British Bankers’ Association as the information vendor for the purpose of displaying British Bankers’ Association Interest Settlement Rates for
U.S. Dollar deposits). 
  

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 (c) Rate Determinations. The Administrative Agent shall determine each interest rate applicable to
the Loans and the Reimbursement Obligations hereunder, and its determination thereof shall be conclusive and binding except in the case of manifest error. 
 Section 1.4. Minimum Borrowing Amounts; Maximum Eurodollar Loans. Each Borrowing of Base Rate Loans advanced under a Credit shall be in an amount not less than $100,000. Each Borrowing of Eurodollar Loans
advanced, continued or converted under a Credit shall be in an amount equal to $500,000 or such greater amount which is an integral multiple of $500,000. Without the Administrative Agent’s consent, there shall not be more than seven
(7) Borrowings of Eurodollar Loans outstanding hereunder at any one time. 
 Section 1.5. Manner of Borrowing Loans and
Designating Applicable Interest Rates. (a) Notice to the Administrative Agent. The Borrower shall give notice to the Administrative Agent by no later than 10:00 a.m. (Chicago time): (i) at least 3 Business Days (or
such shorter period of time then agreed to in writing by the Administrative Agent) before the date on which the Borrower requests the Lenders to advance a Borrowing of Eurodollar Loans and (ii) on the date the Borrower requests the Lenders to
advance a Borrowing of Base Rate Loans. The Loans included in each Borrowing shall bear interest initially at the type of rate specified in such notice of a new Borrowing. Thereafter, subject to the terms and conditions hereof, the Borrower may from
time to time elect to change or continue the type of interest rate borne by each Borrowing or, subject to the minimum amount requirement for each outstanding Borrowing set forth in Section 1.4 hereof, a portion thereof, as follows: (i) if
such Borrowing is of Eurodollar Loans, on the last day of the Interest Period applicable thereto, the Borrower may continue part or all of such Borrowing as Eurodollar Loans or convert part or all of such Borrowing into Base Rate Loans or
(ii) if such Borrowing is of Base Rate Loans, on any Business Day, the Borrower may convert all or part of such Borrowing into Eurodollar Loans for an Interest Period or Interest Periods specified by the Borrower. The Borrower shall give all
such notices requesting the advance, continuation or conversion of a Borrowing to the Administrative Agent by telephone or telecopy (which notice shall be irrevocable once given and, if by telephone, shall be promptly confirmed in writing),
substantially in the form attached hereto as Exhibit B (Notice of Borrowing) or Exhibit C (Notice of Continuation/Conversion), as applicable, or in such other form acceptable to the Administrative Agent. Notice of the continuation of a
Borrowing of Eurodollar Loans for an additional Interest Period or of the conversion of part or all of a Borrowing of Base Rate Loans into Eurodollar Loans must be given by no later than 10:00 a.m. (Chicago time) at least 3 Business Days
(or such shorter period of time then agreed to in writing by the Administrative Agent) before the date of the requested continuation or conversion. All such notices concerning the advance, continuation or conversion of a Borrowing shall specify the
date of the requested advance, continuation or conversion of a Borrowing (which shall be a Business Day), the amount of the requested Borrowing to be advanced, continued or converted, the type of Loans to comprise such new, continued or converted
Borrowing and, if such Borrowing is to be comprised of Eurodollar Loans, the Interest Period applicable thereto. The Borrower agrees that the Administrative Agent may rely on any such telephonic or telecopy notice given by any person the
Administrative Agent in good faith believes is an Authorized Representative without the necessity of independent investigation, and in the event any such notice by telephone conflicts with any written confirmation such telephonic notice shall govern
if the Administrative Agent has acted in reliance thereon. 
  

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 (b) Notice to the Lenders. The Administrative Agent shall give prompt telephonic or telecopy
notice to each Lender of any notice from the Borrower received pursuant to Section 1.5(a) above and, if such notice requests the Lenders to make Eurodollar Loans, the Administrative Agent shall give notice to the Borrower and each Lender by
like means of the interest rate applicable thereto promptly after the Administrative Agent has made such determination. 
 (c)
Borrower’s Failure to Notify; Automatic Continuations and Conversions. Any outstanding Borrowing of Base Rate Loans shall automatically be continued for an additional Interest Period on the last day of its then current Interest Period
unless the Borrower has notified the Administrative Agent within the period required by Section 1.5(a) that the Borrower intends to convert such Borrowing, subject to Section 7.1 hereof, into a Borrowing of Eurodollar Loans or such
Borrowing is prepaid in accordance with Section 1.8(a). If the Borrower fails to give notice pursuant to Section 1.5(a) above of the continuation or conversion of any outstanding principal amount of a Borrowing of Eurodollar Loans before
the last day of its then current Interest Period within the period required by Section 1.5(a) or, whether or not such notice has been given, one or more of the conditions set forth in Section 7.1 for the continuation or conversion of a
Borrowing of Eurodollar Loans would not be satisfied, and such Borrowing is not prepaid in accordance with Section 1.8(a), such Borrowing shall automatically be converted into a Borrowing of Base Rate Loans at the end of its then current
Interest Period. Notwithstanding anything to the contrary in Section 1.2(b) hereof, in the event the Borrower fails to give notice pursuant to Section 1.5(a) above of a Borrowing equal to the amount of a Reimbursement Obligation and has
not notified the Administrative Agent by 12:00 noon (Chicago time) on the day such Reimbursement Obligation becomes due that it intends to repay such Reimbursement Obligation through funds not borrowed under this Agreement, the Borrower shall
be deemed to have requested a Borrowing of Base Rate Loans under the Revolving Credit (or, at the option of the Administrative Agent, under the Swing Line) on such day in the amount of the Reimbursement Obligation then due, which Borrowing shall be
applied to pay the Reimbursement Obligation then due. 
 (d) Disbursement of Loans. Not later than 1:00 p.m. (Chicago time) on
the date of any requested advance of a new Borrowing, subject to Section 7 hereof, each Lender shall make available its Loan comprising part of such Borrowing in funds immediately available at the principal office of the Administrative Agent in
Chicago, Illinois. The Administrative Agent shall make the proceeds of each new Borrowing available to the Borrower at the Administrative Agent’s principal office in Chicago, Illinois, by depositing such proceeds to the credit of the
Borrower’s principal operating account maintained with the Administrative Agent or as the Borrower and the Administrative Agent may otherwise agree. 
 (e) Administrative Agent Reliance on Lender Funding. Unless the Administrative Agent shall have been notified by a Lender prior to (or, in the case of a Borrowing of Base Rate Loans, by 1:00 p.m. (Chicago
time) on) the date on which such Lender is scheduled to make payment to the Administrative Agent of the proceeds of a Loan (which notice shall be effective upon receipt) that such Lender does not intend to make such payment, the Administrative Agent
may assume that such Lender has made such payment when due and the Administrative Agent may in reliance upon such assumption (but shall not be required to) make available to the 

  

 -7- 

 
Borrower the proceeds of the Loan to be made by such Lender and, if any Lender has not in fact made such payment to the Administrative Agent, such Lender
shall, on demand, pay to the Administrative Agent the amount made available to the Borrower attributable to such Lender together with interest thereon in respect of each day during the period commencing on the date such amount was made available to
the Borrower and ending on (but excluding) the date such Lender pays such amount to the Administrative Agent at a rate per annum equal to: (i) from the date the related advance was made by the Administrative Agent to the date 2 Business Days
after payment by such Lender is due hereunder, the Federal Funds Rate for each such day and (ii) from the date 2 Business Days after the date such payment is due from such Lender to the date such payment is made by such Lender, the Base Rate in
effect for each such day. If such amount is not received from such Lender by the Administrative Agent immediately upon demand, the Borrower will, on demand, repay to the Administrative Agent the proceeds of the Loan attributable to such Lender with
interest thereon at a rate per annum equal to the interest rate applicable to the relevant Loan, but without such payment being considered a payment or prepayment of a Loan under Section 1.11 hereof so that the Borrower will have no liability
under such Section with respect to such payment. 
 Section 1.6. Interest Periods. As provided in Section 1.5(a) and 1.14
hereof, at the time of each request to advance, continue or create by conversion a Borrowing of Eurodollar Loans or Swing Loans, the Borrower shall select an Interest Period applicable to such Loans from among the available options. The term
“Interest Period” means the period commencing on the date a Borrowing of Loans is advanced, continued or created by conversion and ending: (a) in the case of Base Rate Loans, on the last day of the calendar quarter (i.e.,
the last day of March, June, September or December, as applicable) in which such Borrowing is advanced, continued or created by conversion (or on the last day of the following calendar quarter if such Loan is advanced, continued or created by
conversion on the last day of a calendar quarter), (b) in the case of a Eurodollar Loan, 1, 2, 3 or 6 months thereafter, and (c) in the case of a Swing Loan, on the date 1 to 5 Business Days thereafter as mutually agreed to by the
Borrower and the Administrative Agent; provided, however, that: 
 (i) any Interest Period for a Borrowing of Revolving
Loans consisting of Base Rate Loans that otherwise would end after the Revolving Credit Termination Date shall end on the Revolving Credit Termination Date; 
 (ii) no Interest Period with respect to any portion of the Revolving Loans shall extend beyond the Revolving Credit Termination Date;

 (iii) whenever the last day of any Interest Period would otherwise be a day that is not a Business Day, the last day of
such Interest Period shall be extended to the next succeeding Business Day, provided that, if such extension would cause the last day of an Interest Period for a Borrowing of Eurodollar Loans to occur in the following calendar month, the last day of
such Interest Period shall be the immediately preceding Business Day; and 
 (iv) for purposes of determining an Interest
Period for a Borrowing of Eurodollar Loans, a month means a period starting on one day in a calendar month and 

  

 -8- 

 
ending on the numerically corresponding day in the next calendar month; provided, however, that if there is no numerically corresponding day in the
month in which such an Interest Period is to end or if such an Interest Period begins on the last Business Day of a calendar month, then such Interest Period shall end on the last Business Day of the calendar month in which such Interest Period is
to end. 
 Section 1.7. Maturity of Revolving Loans and Swing Loans. Each Revolving Loan and Swing Loan, both for principal and
interest not sooner paid, shall mature and be due and payable by the Borrower on the Revolving Credit Termination Date. 
 Section 1.8. Prepayments. (a) Optional. The Borrower may prepay in whole or in part (but, if in part, then: (i) if such Borrowing is of Base Rate Loans (other than a Swing Loan), in an amount not less than
$100,000, (ii) if such Borrowing is of Swing Loans, in an amount not less than $50,000, (iii) if such Borrowing is of Eurodollar Loans, in an amount not less than $500,000, and (iv) in each case, in an amount such that the minimum
amount required for a Borrowing pursuant to Section 1.4 and 1.14 hereof remains outstanding) any Borrowing of Eurodollar Loans at any time upon 3 Business Days prior notice by the Borrower to the Administrative Agent or, in the case of a
Borrowing of Base Rate Loans, notice delivered by the Borrower to the Administrative Agent no later than 10:00 a.m. (Chicago time) on the date of prepayment (or, in any case, such shorter period of time then agreed to by the Administrative
Agent), such prepayment to be made by the payment of the principal amount to be prepaid and, in the case of any Eurodollar Loans or Swing Loans, accrued interest thereon to the date fixed for prepayment plus any amounts due the Lenders under
Section 1.11 hereof. 
 (b) Mandatory. (i) If the Borrower or any Subsidiary shall at any time or from time to time make or
agree to make a Disposition or shall suffer an Event of Loss with respect to any Property, then the Borrower shall promptly notify the Administrative Agent of such proposed Disposition or Event of Loss (including the amount of the estimated Net Cash
Proceeds to be received by the Borrower or such Subsidiary in respect thereof) and, promptly upon receipt by the Borrower or such Subsidiary of the Net Cash Proceeds of such Disposition or Event of Loss, the Borrower shall prepay the Obligations in
an aggregate amount equal to 100% of the amount of all such Net Cash Proceeds; provided that (x) so long as no Default or Event of Default then exists, this subsection shall not require any such prepayment with respect to Net Cash
Proceeds received on account of an Event of Loss so long as such Net Cash Proceeds are applied to replace or restore the relevant Property in accordance with the relevant Collateral Documents within six months following receipt of such Net Cash
Proceeds, and (y) this subsection shall not require any such prepayment with respect to Net Cash Proceeds received on account of Dispositions during any fiscal year of the Borrower not exceeding $500,000 in the aggregate so long as no Default
or Event of Default then exists. The amount of each such prepayment shall be applied to the Revolving Loans until paid in full and then, to the extent that an Event of Default then exists, applied to cash collateralize the Letters of Credit. The
amount of each such prepayment shall be applied on a ratable basis among the outstanding Loans of the several Lenders based on the principal amounts thereof. 
 (ii) If after the Closing Date the Borrower or any Subsidiary shall issue new equity securities (whether common or preferred stock or otherwise), other than equity securities issued 

  

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to officers, directors or employees of the Borrower as compensation for bona fide services provided or to be provided to the Borrower by such persons
and approved by the Borrower’s Board of Directors or the Compensation Committee of the Borrower’s Board of Directors, as the case may be or in connection with the exercise of employee stock options and capital stock of the Borrower issued
to the seller of an Acquired Business in connection with a Permitted Acquisition, the Borrower shall promptly notify the Administrative Agent of the estimated Net Cash Proceeds of such issuance to be received by or for the account of the Borrower or
such Subsidiary in respect thereof. Promptly upon receipt by the Borrower or such Subsidiary of Net Cash Proceeds of such issuance, the Borrower shall prepay the outstanding Revolving Loans until paid in full, in an aggregate amount equal to 50% of
the amount of such Net Cash Proceeds and then, to the extent that an Event of Default then exists, applied to cash collateralize the Letters of Credit. The amount of each such prepayment shall be applied on a ratable basis among the outstanding
Loans of the several Lenders based on the principal amounts thereof. The Borrower acknowledges that its performance hereunder shall not limit the rights and remedies of the Lenders for any breach of Section 8.11 (Maintenance of Subsidiaries) or
Section 9.1(i) (Change of Control) hereof or any other terms of the Loan Documents. 
 (iii) If after the Closing Date the Borrower or
any Subsidiary shall issue any Indebtedness for Borrowed Money, other than Indebtedness for Borrowed Money permitted by Section 8.7(a)-(h) hereof, the Borrower shall promptly notify the Administrative Agent of the estimated Net Cash
Proceeds of such issuance to be received by or for the account of the Borrower or such Subsidiary in respect thereof. Promptly upon receipt by the Borrower or such Subsidiary of Net Cash Proceeds of such issuance, the Borrower shall prepay the
outstanding Revolving Loans until paid in full in an aggregate amount equal to 100% of the amount of such Net Cash Proceeds and then, to the extent that an Event of Default then exists, applied to cash collateralize the Letters of Credit. The amount
of each such prepayment shall be applied on a ratable basis among the outstanding Loans of the several Lenders based on the principal amounts thereof. The Borrower acknowledges that its performance hereunder shall not limit the rights and remedies
of the Lenders for any breach of Section 8.7 hereof or any other terms of the Loan Documents. 
 (iv) The Borrower shall, on each date
the Revolving Credit Commitments are reduced pursuant to Section 1.12 hereof, prepay the Revolving Loans, Swing Loans and, if necessary, prefund the L/C Obligations by the amount, if any, necessary to reduce the sum of the aggregate
principal amount of Revolving Loans, Swing Loans and L/C Obligations then outstanding to the amount to which the Revolving Credit Commitments have been so reduced. 
 (v) The Borrower shall, promptly upon receipt of any proceeds from any repayment of the Philadelphia School Loan, prepay first the outstanding Revolving Loans until paid in full and then, to the extent that an Event
of Default then exists, applied to cash collateralize the Letters of Credit, in an aggregate amount equal to 100% of the amount of such proceeds. The amount of each such prepayment shall be applied on a ratable basis among the outstanding Loans of
the several Lenders based on the principal amounts thereof. 
 (vi) Unless the Borrower otherwise directs, prepayments of Loans under this
Section 1.8(b) shall be applied first to Borrowings of Base Rate Loans until payment in full 

  

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thereof with any balance applied to Borrowings of Eurodollar Loans in the order in which their Interest Periods expire. Each prepayment of Loans under this
Section 1.8(b) shall be made by the payment of the principal amount to be prepaid and, in the case of Eurodollar Loans or Swing Loans, accrued interest thereon to the date of prepayment together with any amounts due the Lenders under
Section 1.11 hereof. Each prefunding of L/C Obligations shall be made in accordance with Section 9.4 hereof. 
 (vii) For the
avoidance of doubt, any prepayment of Loans or any cash collateralization of Letters of Credit under this Section 1.8(b) shall not reduce the Revolving Credit Commitments. 
 (c) Any amount of Revolving Loans or Swing Loans paid or prepaid before the Revolving Credit Termination Date may, subject to the terms and conditions of
this Agreement, be borrowed, repaid and borrowed again. 
 Section 1.9. Default Rate. Notwithstanding anything to the contrary
contained herein, while any Event of Default exists or after acceleration, the Borrower shall pay interest (after as well as before entry of judgment thereon to the extent permitted by law) on the principal amount of all Loans and Reimbursement
Obligations, and letter of credit fees at a rate per annum equal to: 
 (a) for any Base Rate Loan or any Swing Loan bearing
interest based on the Base Rate, the sum of 2.0% plus the Applicable Margin plus the Base Rate from time to time in effect; 
 (b) for any Eurodollar Loan or any Swing Loan bearing interest at the Administrative Agent’s Quoted Rate, the sum of 2.0% plus the rate of interest in effect thereon at the time of such default until the end of the Interest Period
applicable thereto, at which time such loans shall automatically convert to Base Rate Loans; 
 (c) for any Reimbursement
Obligation, the sum of 2.0% plus the amounts due under Section 1.2 with respect to such Reimbursement Obligation; and 
 (d) for any Letter of Credit, the sum of 2.0% plus the letter of credit fee due under Section 2.1 with respect to such Letter of Credit; 
 provided, however, that in the absence of acceleration, any adjustments pursuant to this Section shall be made at the election of the Administrative Agent, acting at the request or with the consent of the Required Lenders, with prior
written notice to the Borrower. While any Event of Default exists or after acceleration, interest shall be paid on written demand of the Administrative Agent at the request or with the consent of the Required Lenders. 
 Section 1.10. Evidence of Indebtedness. (a) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder. 
  

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 (b) The Administrative Agent shall also maintain accounts in which it will record (i) the amount of
each Loan made hereunder, the type thereof and the Interest Period with respect thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the
amount of any sum received by the Administrative Agent hereunder from the Borrower and each Lender’s share thereof. 
 (c) The entries
maintained in the accounts maintained pursuant to paragraphs (a) and (b) above shall be prima facie evidence of the existence and amounts of the Obligations therein recorded; provided, however, that the failure of the
Administrative Agent or any Lender to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Obligations in accordance with their terms. 
 (d) Any Lender may request that its Loans be evidenced by a promissory note or notes in the forms of Exhibit D-1 (in the case of its Revolving Loans and
referred to herein as a “Revolving Note”) or D-2 (in the case of its Swing Loans and referred to herein as a “Swing Note”), as applicable (the Revolving Notes and Swing Note being hereinafter referred to
collectively as the “Notes” and individually as a “Note”). In such event, the Borrower shall execute and deliver to such Lender a Note payable to the order of such Lender in the amount of the relevant Revolving
Credit Commitment or Swing Line Sublimit, as applicable. Thereafter, the Loans evidenced by such Note or Notes and interest thereon shall at all times (including after any assignment pursuant to Section 13.12) be represented by one or more
Notes payable to the order of the payee named therein or any assignee pursuant to Section 13.12, except to the extent that any such Lender or assignee subsequently returns any such Note for cancellation and requests that such Loans once again
be evidenced as described in subsections (a) and (b) above. 
 Section 1.11. Funding Indemnity. If any Lender shall
incur any loss of profit, and any loss, cost or reasonable expense (including, without limitation, any loss, cost or expense incurred by reason of the liquidation or re-employment of deposits or other funds acquired by such Lender to fund or
maintain any Eurodollar Loan or Swing Loan or the relending or reinvesting of such deposits or amounts paid or prepaid to such Lender) as a result of: 
 (a) any payment, prepayment or conversion of a Eurodollar Loan or Swing Loan on a date other than the last day of its Interest Period, 
 (b) any failure (because of a failure to meet the conditions of Section 7 or otherwise) by the Borrower to borrow or continue a
Eurodollar Loan or Swing Loan, or to convert a Base Rate Loan into a Eurodollar Loan or Swing Loan, on the date specified in a notice given pursuant to Section 1.5(a) or 1.14 hereof, 
 (c) any failure by the Borrower to make any payment of principal on any Eurodollar Loan or Swing Loan when due (whether by acceleration or
otherwise), or 
 (d) any acceleration of the maturity of a Eurodollar Loan or Swing Loan as a result of the occurrence of any
Event of Default hereunder, 
  

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 then, upon the written demand of such Lender, the Borrower shall pay to such Lender such amount as will reimburse such
Lender for such loss, cost or reasonable expense. If any Lender makes such a claim for compensation, it shall provide to the Borrower, with a copy to the Administrative Agent, a certificate setting forth the amount of such loss, cost or expense in
reasonable detail (including an explanation of the basis for and the computation of such loss, cost or expense) and the amounts shown on such certificate shall be conclusive if reasonably determined. 
 Section 1.12. Commitment Terminations. (a) Optional Revolving Credit Terminations. The Borrower shall have the right at any time
and from time to time, upon 5 Business Days prior written notice to the Administrative Agent (or such shorter period of time agreed to by the Administrative Agent), to terminate the Revolving Credit Commitments without premium or penalty and in
whole or in part, any partial termination to be (i) in an amount not less than $500,000 or integral multiples of $500,000 in excess thereof and (ii) allocated ratably among the Lenders in proportion to their respective Revolver
Percentages, provided that the Revolving Credit Commitments may not be reduced to an amount less than the sum of the aggregate principal amount of Revolving Loans, Swing Loans and L/C Obligations then outstanding. Any termination of the
Revolving Credit Commitments below the L/C Sublimit or Swing Line Sublimit then in effect shall reduce the L/C Sublimit and Swing Line Sublimit, as applicable, by a like amount. The Administrative Agent shall give prompt notice to each
Lender of any such termination of the Revolving Credit Commitments. 
 (b) Any termination of the Commitments pursuant to this
Section 1.12 may not be reinstated. 
 Section 1.13. Substitution of Lenders. In the event (a) the Borrower receives a
claim from any Lender for compensation under Section 10.3 or 13.1 hereof, (b) the Borrower receives notice from any Lender of any illegality pursuant to Section 10.1 hereof, (c) any Lender is in default in any material respect
with respect to its obligations under the Loan Documents, or (d) a Lender fails to consent to an amendment or waiver requested under Section 13.13 hereof at a time when the Required Lenders have approved such amendment or waiver (any such
Lender referred to in clause (a), (b), (c), or (d) above being hereinafter referred to as an “Affected Lender”), the Borrower may, in addition to any other rights the Borrower may have hereunder or under applicable law,
require, at its expense, any such Affected Lender to assign, at par plus accrued interest and fees, without recourse, all of its interest, rights, and obligations hereunder (including all of its Revolving Credit Commitments and the Loans and
participation interests in Letters of Credit and other amounts at any time owing to it hereunder and the other Loan Documents) to a commercial bank or other financial institution specified by the Borrower, provided that (i) such
assignment shall not conflict with or violate any law, rule or regulation or order of any court or other governmental authority, (ii) the Borrower shall have received the written consent of the Administrative Agent, which consent shall not be
unreasonably withheld, conditioned or delayed to such assignment, (iii) the Borrower shall have paid to the Affected Lender all monies (together with amounts due such Affected Lender under Section 1.11 hereof as if the Loans owing to it
were prepaid rather than assigned) other than such principal owing to it hereunder, and (iv) the assignment is entered into in accordance with the other requirements of Section 13.12 hereof (provided any assignment fees and reimbursable
expenses due thereunder shall be paid by the Borrower). 
  

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 Section 1.14. Swing Loans. (a) Generally. Subject to the terms and conditions
hereof, as part of the Revolving Credit, the Swing Line Lender agrees to make loans in U.S. Dollars to the Borrower under the Swing Line (individually a “Swing Loan” and collectively the “Swing Loans”) which
shall not in the aggregate at any time outstanding exceed the Swing Line Sublimit. The Swing Loans may be availed of the Borrower from time to time and borrowings thereunder may be repaid and used again during the period ending on the Revolving
Credit Termination Date; provided that each Swing Loan must be repaid on the last day of the Interest Period applicable thereto. Each Swing Loan shall be in a minimum amount of $50,000. 
 (b) Interest on Swing Loans. Each Swing Loan shall bear interest until maturity (whether by acceleration or otherwise) at a rate per annum equal
to (i) the sum of the Base Rate plus the Applicable Margin for Base Rate Loans under the Revolving Credit as from time to time in effect (computed on the basis of a year of 365 or 366 days, as the case may be, for the actual number of days
elapsed) or (ii) the Administrative Agent’s Quoted Rate (computed on the basis of a year of 360 days for the actual number of days elapsed). Interest on each Swing Loan shall be due and payable on the last day of its Interest Period
and at maturity (whether by acceleration or otherwise). 
 (c) Requests for Swing Loans. The Borrower shall give the Administrative
Agent prior notice (which may be written or oral) no later than 12:00 Noon (Chicago time) on the date upon which the Borrower requests that any Swing Loan be made, of the amount and date of such Swing Loan, and the Interest Period requested
therefor. The Administrative Agent shall promptly notify the Swing Line Lender of any such request. Within 30 minutes after receiving such notice, the Administrative Agent shall in its discretion quote an interest rate to the Borrower at which
the Swing Line Lender would be willing to make such Swing Loan available to the Borrower for the Interest Period so requested (the rate so quoted for a given Interest Period being herein referred to as “Administrative Agent’s Quoted
Rate”). The Borrower acknowledges and agrees that the interest rate quote is given for immediate and irrevocable acceptance. If the Borrower does not so immediately accept the Administrative Agent’s Quoted Rate for the full amount
requested by the Borrower for such Swing Loan, the Administrative Agent’s Quoted Rate shall be deemed immediately withdrawn and such Swing Loan shall bear interest at the rate per annum determined by adding the Applicable Margin for Base Rate
Loans under the Revolving Credit to the Base Rate as from time to time in effect. Subject to the terms and conditions hereof, the proceeds of such Swing Loan shall be made available by the Swing Line Lender to the Borrower on the date so requested
at the offices of the Administrative Agent in Chicago, Illinois, by depositing such proceeds to the credit of the Borrower’s operating account maintained with the Administrative Agent or as the Borrower and the Administrative Agent may
otherwise agree. Anything contained in the foregoing to the contrary notwithstanding, (i) the obligation of the Swing Line Lender to make Swing Loans shall be subject to all of the terms and conditions of this Agreement and (ii) the Swing
Line Lender shall not be obligated to make more than one Swing Loan during any one day. 
  

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 (d) Refunding Loans. In its sole and absolute discretion, the Swing Line Lender may at any time
direct the Administrative Agent to, on behalf of the Borrower (which hereby irrevocably authorizes the Administrative Agent to act on its behalf for such purpose) and with notice to the Borrower, request each Lender to make a Revolving Loan in the
form of a Base Rate Loan in an amount equal to such Lender’s Revolver Percentage of the amount of the Swing Loans outstanding on the date such notice is given. Unless an Event of Default described in Section 9.1(j) or 9.1(k) exists with
respect to the Borrower, regardless of the existence of any other Event of Default, each Lender shall make the proceeds of its requested Revolving Loan available to the Administrative Agent, in immediately available funds, at the Administrative
Agent’s principal office in Chicago, Illinois, before 12:00 Noon (Chicago time) on the Business Day following the day such notice is given. The proceeds of such Borrowing of Revolving Loans shall be immediately applied to repay the
outstanding Swing Loans. 
 (e) Participations. If any Lender refuses or otherwise fails to make a Revolving Loan when requested by
the Administrative Agent at the direction of the Swing Line Lender pursuant to Section 1.14(d) above (because an Event of Default described in Section 9.1(j) or 9.1(k) exists with respect to the Borrower or otherwise), such Lender will, by
the time and in the manner such Revolving Loan was to have been funded to the Swing Line Lender, purchase from the Administrative Agent an undivided participating interest in the outstanding Swing Loans in an amount equal to its Revolver Percentage
of the aggregate principal amount of Swing Loans that were to have been repaid with such Revolving Loans. Each Lender that so purchases a participation in a Swing Loan shall thereafter be entitled to receive its Revolver Percentage of each payment
of principal received on the Swing Loan and of interest received thereon accruing from the date such Lender funded to the Administrative Agent its participation in such Loan. The several obligations of the Lenders under this Section shall be
absolute, irrevocable and unconditional under any and all circumstances whatsoever and shall not be subject to any set-off, counterclaim or defense to payment which any Lender may have or have had against the Borrower, any other Lender or any other
Person whatsoever. Without limiting the generality of the foregoing, such obligations shall not be affected by any Default or Event of Default or by any reduction or termination of the Revolving Credit Commitments of any Lender, and each payment
made by a Lender under this Section shall be made without any offset, abatement, withholding or reduction whatsoever. 
 SECTION 2. FEES. 
 Section 2.1. Fees. (a) Revolving Credit Commitment
Fee. The Borrower shall pay to the Administrative Agent for the ratable account of the Lenders in accordance with their Revolver Percentages a quarterly commitment fee at the rate per annum equal to the Applicable Margin (computed on the basis
of a year of 360 days and the actual number of days elapsed) on the average daily Unused Revolving Credit Commitments for the preceding quarter (or shorter period commencing on the Closing Date or ending on the Revolving Credit Termination
Date). Such commitment fee shall be payable quarterly in arrears on the last day of each March, June, September, and December in each year (commencing on the first such date occurring after the date hereof) and on the Revolving Credit Termination
Date, unless the Revolving Credit Commitments are terminated in whole on an earlier date, in which event the commitment fee for the period to the date of such termination in whole shall be paid on the date of such termination. 
  

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 (b) Letter of Credit Fees. On the date of issuance or extension, or increase in the amount, of any
Letter of Credit pursuant to Section 1.2 hereof, the Borrower shall pay to the L/C Issuer for its own account an issuance fee equal to 0.125% of the face amount of (or of the increase in the face amount of) such Letter of Credit. Quarterly in
arrears, on the last day of each March, June, September, and December, commencing on the first such date occurring after the date hereof, the Borrower shall pay to the Administrative Agent, for the ratable benefit of the Lenders in accordance with
their Revolver Percentages, a letter of credit fee at a rate per annum equal to the Applicable Margin (computed on the basis of a year of 360 days and the actual number of days elapsed) in effect during each day of such quarter applied to the
daily average face amount of Letters of Credit expected to be outstanding during such quarter (or shorter period commencing on the Closing Date or ending on the Revolving Credit Termination Date). In addition, the Borrower shall pay to the L/C
Issuer for its own account the L/C Issuer’s standard issuance, drawing, negotiation, amendment, assignment and other administrative fees for each Letter of Credit as established by the L/C Issuer from time to time. 
 (c) Administrative Agent Fees. The Borrower shall pay to the Administrative Agent, for its own use and benefit, the fees agreed to between the
Administrative Agent and the Borrower in a commitment letter dated September 29, 2006 or as otherwise agreed to in writing between them. 
 (d) Audit Fees. The Borrower shall pay to the Administrative Agent for its own use and benefit charges for audits of the Collateral performed by the Administrative Agent or its agents or representatives in such amounts as the
Administrative Agent may from time to time request (the Administrative Agent acknowledging and agreeing that such charges shall be computed in the same manner as it at the time customarily uses for the assessment of charges for similar collateral
audits); provided, however, that in the absence of any Default and Event of Default, the Borrower shall not be required to pay the Administrative Agent for more than one such audit per calendar year. 
 SECTION 3. PLACE AND APPLICATION OF
PAYMENTS. 
 Section 3.1. Place and Application of Payments. All payments of principal of and interest on the Loans
and the Reimbursement Obligations, and of all other Obligations payable by the Borrower under this Agreement and the other Loan Documents, shall be made by the Borrower to the Administrative Agent by no later than 12:00 Noon (Chicago time) on
the due date thereof at the office of the Administrative Agent in Chicago, Illinois (or such other location as the Administrative Agent may designate to the Borrower) for the benefit of the Lender or Lenders entitled thereto. Any payments received
after such time shall be deemed to have been received by the Administrative Agent on the next Business Day. All such payments shall be made in U.S. Dollars, in immediately available funds at the place of payment, in each case without set-off or
counterclaim. The Administrative Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal or interest on Loans and on Reimbursement Obligations in which the Lenders have purchased Participating Interests
ratably to the Lenders and like funds relating to the payment of any other amount payable to any Lender to such Lender, in each case to be applied in accordance with the terms of this Agreement. If the Administrative Agent causes amounts to be
distributed to the Lenders in reliance upon the 

  

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assumption that the Borrower will make a scheduled payment and such scheduled payment is not so made, each Lender shall, on demand, repay to the
Administrative Agent the amount distributed to such Lender together with interest thereon in respect of each day during the period commencing on the date such amount was distributed to such Lender and ending on (but excluding) the date such Lender
repays such amount to the Administrative Agent, at a rate per annum equal to: (i) from the date the distribution was made to the date 2 Business Days after payment by such Lender is due hereunder, the Federal Funds Rate for each such day and
(ii) from the date 2 Business Days after the date such payment is due from such Lender to the date such payment is made by such Lender, the Base Rate in effect for each such day. 
 Anything contained herein to the contrary notwithstanding (including, without limitation, Section 1.8(b) hereof), all payments and collections
received in respect of the Obligations and all proceeds of the Collateral received, in each instance, by the Administrative Agent or any of the Lenders after acceleration or the final maturity of the Obligations or termination of the Revolving
Credit Commitments as a result of an Event of Default shall be remitted to the Administrative Agent and distributed as follows: 
 (a) first, to the payment of any outstanding costs and expenses incurred by the Administrative Agent, and any security trustee therefor, in monitoring, verifying, protecting, preserving or enforcing the Liens on the Collateral, in
protecting, preserving or enforcing rights under the Loan Documents, and in any event including all costs and expenses of a character which the Borrower has agreed to pay the Administrative Agent under Section 13.15 hereof (such funds to be
retained by the Administrative Agent for its own account unless it has previously been reimbursed for such costs and expenses by the Lenders, in which event such amounts shall be remitted to the Lenders to reimburse them for payments theretofore
made to the Administrative Agent); 
 (b) second, to the payment of any outstanding interest and fees due under the Loan
Documents to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof; 
 (c) third,
to the payment of principal on the Loans, unpaid Reimbursement Obligations, together with amounts to be held by the Administrative Agent as collateral security for any outstanding L/C Obligations pursuant to Section 9.4 hereof (until the
Administrative Agent is holding an amount of cash equal to the then outstanding amount of all such L/C Obligations), and any Hedging Liability, the aggregate amount paid to, or held as collateral security for, the Lenders and, in the case of
Hedging Liability, their Affiliates to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof; 
 (d) fourth, to the payment of all other unpaid Obligations and all other indebtedness, obligations, and liabilities of the Borrower and the Guarantors secured by the Loan Documents (including, without limitation,
Funds Transfer and Deposit Account Liability) to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof; and 
  

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 (e) finally, to the Borrower or whoever else may be lawfully entitled thereto.

 Section 3.2. Account Debit. The Borrower hereby irrevocably authorizes the Administrative Agent to charge any of the
Borrower’s deposit accounts maintained with the Administrative Agent for the amounts from time to time necessary to pay any then due Obligations; provided that the Borrower acknowledges and agrees that the Administrative Agent shall not
be under an obligation to do so and the Administrative Agent shall not incur any liability to the Borrower or any other Person for the Administrative Agent’s failure to do so. 
 SECTION 4. GUARANTIES AND COLLATERAL. 
 Section 4.1. Guaranties. The payment and performance of the Obligations, Hedging Liability, and Funds Transfer and Deposit
Account Liability shall at all times be guaranteed by each Guarantor pursuant to Section 12 hereof or pursuant to one or more guaranty agreements in form and substance acceptable to the Administrative Agent, as the same may be amended, modified
or supplemented from time to time (individually a “Guaranty” and collectively the “Guaranties”); provided, however, that unless otherwise required by the
Administrative Agent or the Required Lenders during the existence of any Event of Default, a Foreign Subsidiary shall not be required to be a Guarantor hereunder if providing such Guaranty would cause an adverse effect on the Borrower’s federal
income tax liability.  
 Section 4.2. Collateral. The Obligations, Hedging Liability, and Funds Transfer and Deposit
Account Liability shall be secured by valid, perfected, and enforceable Liens on all right, title, and interest of the Borrower and each Guarantor in all of their accounts, chattel paper, instruments, documents, general intangibles, letter-of-credit
rights, supporting obligations, deposit accounts, investment property, inventory, equipment, fixtures, commercial tort claims, real estate and certain other Property, whether now owned or hereafter acquired or arising, and all proceeds thereof;
provided, however, that: (i) unless otherwise required by the Administrative Agent or the Required Lenders during the existence of any Default or Event of Default, (x) Liens on demand deposit accounts other than payroll accounts
maintained by the Borrower and the Guarantors in proximity to their operations need not be perfected (unless such perfection is required pursuant to the terms of Section 8.23(a) hereof) provided that the amount on deposit in any such individual
account for any period in excess of five (5) consecutive calendar days not so perfected shall not exceed $1,000,000 (or such other amount as is determined by the Administrative Agent in its reasonable credit judgment), (y) Liens on payroll
accounts maintained by the Borrower and the Guarantors need not be perfected provided the total amount on deposit at any time does not exceed the current amount of their payroll obligations and (z) Liens on vehicles which are subject to a
certificate of title law need not be perfected provided that the total value of such property at any one time not so perfected shall not exceed $75,000 in the aggregate, (ii) unless otherwise required by the Administrative Agent or the Required
Lenders during the existence of any Event of Default, Liens on the Voting Stock of a Foreign Subsidiary which, if granted, would cause an adverse effect on the Borrower’s federal income tax liability shall be limited to 66% of the total
outstanding Voting Stock of such Foreign Subsidiary, and (iii) unless otherwise required by the Administrative Agent or the Required Lenders during the existence of any Event of Default, Liens need not be granted on the assets of a Foreign
Subsidiary which, if granted, would cause an adverse effect on the Borrower’s federal 

  

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income tax liability. The Borrower acknowledges and agrees that the Liens on the Collateral shall be granted to the Administrative Agent for the benefit of
the holders of the Obligations, the Hedging Liability, and the Funds Transfer and Deposit Account Liability and shall be valid and perfected first priority Liens subject, however, to the proviso appearing at the end of the preceding sentence and to
Liens permitted by Section 8.8 hereof, in each case pursuant to one or more Collateral Documents from such Persons, each in form and substance satisfactory to the Administrative Agent. 
 Section 4.3. Liens on Real Property. In the event that the Borrower or any Guarantor owns or hereafter acquires any real property (except in
the case where such real property is acquired after the Closing Date which the Borrower or such Guarantor intends to dispose of in a sale and leaseback transaction permitted by Section 8.10(h) provided that (i) the Borrower delivers to the
Administrative Agent not later than the date of such acquisition an executed copy of the transaction document(s) pursuant to which such sale and leaseback transaction is to occur and (ii) such sale and leaseback transaction is completed within
five (5) business days following the acquisition of such real property) , the Borrower shall, or shall cause such Guarantor to, execute and deliver to the Administrative Agent a mortgage or deed of trust acceptable in form and substance to the
Administrative Agent for the purpose of granting to the Administrative Agent (or a security trustee therefor) a Lien on such real property to secure the Obligations, Hedging Liability, and Funds Transfer and Deposit Account Liability, shall pay all
taxes, costs, and expenses incurred by the Administrative Agent in recording such mortgage or deed of trust, and shall supply to the Administrative Agent, to the extent required by the Administrative Agent in its reasonable discretion, at the
Borrower’s cost and expense a survey, environmental report, hazard insurance policy, appraisal report, and a mortgagee’s policy of title insurance from a title insurer acceptable to the Administrative Agent insuring the validity of such
mortgage or deed of trust and its status as a first Lien (subject to Liens permitted by this Agreement) on the real property encumbered thereby and such other instrument, documents, certificates, and opinions reasonably required by the
Administrative Agent in connection therewith. 
 Section 4.4. Further Assurances. The Borrower agrees that it shall, and shall
cause each Guarantor to, from time to time at the request of the Administrative Agent or the Required Lenders, execute and deliver such documents and do such acts and things as the Administrative Agent or the Required Lenders may reasonably request
in order to provide for or perfect or protect such Liens on the Collateral. In the event the Borrower or any Guarantor forms or acquires any other Subsidiary after the date hereof, except as otherwise provided in Sections 4.1 and 4.2 above, the
Borrower shall promptly upon such formation or acquisition cause such newly formed or acquired Subsidiary to execute a Guaranty and such Collateral Documents as the Administrative Agent may then require, and the Borrower shall also deliver to the
Administrative Agent, or cause such Subsidiary to deliver to the Administrative Agent, at the Borrower’s cost and expense, such other instruments, documents, certificates, and opinions reasonably required by the Administrative Agent in
connection therewith. 
 Section 4.5. Collections. The Borrower shall cause all cash proceeds of the Collateral of the Borrower
and each Subsidiary in any deposit account maintained by the Borrower and each Subsidiary in an amount in excess of $20,000 per account to be deposited on a daily basis into a central collection account maintained by the Borrower with the
Administrative Agent or with 

  

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other financial institutions selected by the Borrower and acceptable to the Administrative Agent, pursuant to arrangements acceptable to the Administrative
Agent under which the balance of collected funds standing on deposit in such accounts maintained with such other financial institutions are transmitted to one or more collections accounts at the Administrative Agent, except to the extent agreed by
the Borrower and the Administrative Agent with respect to certain payroll and demand deposit accounts of the Borrower and its Subsidiaries. 
 SECTION 5. DEFINITIONS; INTERPRETATION. 
 Section 5.1. Definitions. The following terms when used herein shall have the following meanings: 
 “Acquired
Business” means the entity or assets acquired by the Borrower or a Subsidiary in an Acquisition, whether before or after the date hereof. 
 “Acquisition” means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets of a Person, or of any
business or division of a Person, (b) the acquisition of in excess of 50% of the capital stock, partnership interests, membership interests or equity of any Person (other than a Person that is a Subsidiary), or otherwise causing any Person to
become a Subsidiary, or (c) a merger or consolidation or any other combination with another Person (other than a Person that is a Subsidiary) provided that the Borrower or the Subsidiary is the surviving entity. 
 “Adjusted LIBOR” is defined in Section 1.3(b) hereof. 
 “Administrative Agent” means Harris N.A. and any successor pursuant to Section 11.7 hereof. 
 “Administrative Agent’s Quoted Rate” is defined in Section 1.14(c) hereof. 
 “Administrative Questionnaire” means the Administrative Questionnaire in form supplied by the Administrative Agent. 
 “Affiliate” means any Person directly or indirectly controlling or controlled by, or under direct or indirect common control with,
another Person. A Person shall be deemed to control another Person for purposes of this definition if such Person possesses, directly or indirectly, the power to direct, or cause the direction of, the management and policies of the other Person,
whether through the ownership of voting securities, common directors, trustees or officers, by contract or otherwise; provided that, in any event for purposes of this definition, any Person that owns, directly or indirectly, 10% or more of
the securities having the ordinary voting power for the election of directors or governing body of a corporation or 10% or more of the partnership or other ownership interest of any other Person (other than as a limited partner of such other Person)
will be deemed to control such corporation or other Person. 
 “Agreement” means this Credit Agreement, as the same may be
amended, modified, restated or supplemented from time to time pursuant to the terms hereof. 
  

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 “Applicable Margin” means, with respect to Loans, Reimbursement Obligations, and the
commitment fees and letter of credit fees payable under Section 2.1 hereof, until the first Pricing Date, the rates per annum shown opposite Level II below, and thereafter from one Pricing Date to the next the Applicable Margin means the
rates per annum determined in accordance with the following schedule: 
  

												
	 LEVEL
	  	 TOTAL FUNDED
DEBT/EBITDA RATIO FOR SUCH PRICING DATE
	  	APPLICABLE MARGIN
FOR BASE RATE
LOANS
AND REIMBURSEMENT
OBLIGATIONS SHALL BE:	 	 	APPLICABLE MARGIN
FOR
EURODOLLAR
LOANS AND LETTER OF
CREDIT FEE SHALL BE:	 	 	APPLICABLE MARGIN
FOR REVOLVING CREDIT
COMMITMENT FEE
SHALL
BE:	 
	IV	  	 Greater than or equal to 2.00 to 1.0
	  	0.50	%	 	2.00	%	 	0.40	%
	III	  	 Less than 2.00 to 1.0, but greater than or equal to 1.50 to 1.00
	  	0.00	%	 	1.50	%	 	0.30	%
	II	  	 Less than 1.50 to 1.00, but greater than or equal to 1.00 to 1.00
	  	0.00	%	 	1.25	%	 	0.25	%
	I	  	 Less than 1.00 to 1.0
	  	0.0	%	 	1.00	%	 	0.20	%

 For purposes hereof, the term “Pricing Date” means, for any fiscal quarter of the Borrower ending
on or after December 31, 2006, the date on which the Administrative Agent is in receipt of the Borrower’s most recent financial statements (and, in the case of the year-end financial statements, audit report) for the fiscal quarter then
ended, pursuant to Section 8.5 hereof. The Applicable Margin shall be established based on the Total Funded Debt/EBITDA Ratio for the most recently completed fiscal quarter and the Applicable Margin established on a Pricing Date shall
remain in effect until the next Pricing Date. If the Borrower has not delivered its financial statements by the date such financial statements (and, in the case of the year-end financial statements, audit report) are required to be delivered under
Section 8.5 hereof, until such financial statements and audit report are delivered, the Applicable Margin shall be the highest Applicable Margin (i.e., Level IV shall apply). If the Borrower subsequently delivers such financial
statements before the next Pricing Date, the Applicable Margin established by such late delivered financial statements shall take effect from the date of delivery until the next Pricing Date. In all other circumstances, the Applicable Margin
established by such financial statements shall be in effect from the Pricing Date that occurs immediately after the end of the fiscal quarter covered by such financial statements until the next Pricing Date. Each determination of the Applicable
Margin made by the Administrative Agent in accordance with the foregoing shall be conclusive and binding on the Borrower and the Lenders if reasonably determined. 
 “Application” is defined in Section 1.2(b) hereof. 
 “Approved Fund”
means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 
  

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 “Assignment and Acceptance” means an assignment and acceptance entered into by a Lender
and an Eligible Assignee (with the consent of any party whose consent is required by Section 13.12 hereof), and accepted by the Administrative Agent, in substantially the form of Exhibit H or any other form approved by the Administrative
Agent. 
 “Assignment of Leases” means, collectively, each Assignment of Leases and Rents between the Borrower or the
relevant Guarantor and the Administrative Agent relating to real property leased by the Borrower or the relevant Guarantor as lessor (or sublessor) to a third party, as the same may be amended, modified, supplemented or restated from time to time.

 “Authorized Representative” means those persons shown on the list of officers provided by the Borrower pursuant to
Section 7.2 hereof or on any update of any such list provided by the Borrower to the Administrative Agent, or any further or different officers of the Borrower so named by any Authorized Representative of the Borrower in a written notice to the
Administrative Agent. 
 “Base Rate” is defined in Section 1.3(a) hereof. 
 “Base Rate Loan” means a Loan bearing interest at a rate specified in Section 1.3(a) hereof. 
 “Borrower” is defined in the introductory paragraph of this Agreement. 
 “Borrowing” means the total of Loans of a single type advanced, continued for an additional Interest Period, or converted from a
different type into such type by the Lenders under a Credit on a single date and, in the case of Eurodollar Loans, for a single Interest Period. Borrowings of Loans are made and maintained ratably from each of the Lenders under a Credit according to
their Percentages of such Credit. A Borrowing is “advanced” on the day Lenders advance funds comprising such Borrowing to the Borrower, is “continued” on the date a new Interest Period for the same type of Loans
commences for such Borrowing, and is “converted” when such Borrowing is changed from one type of Loans to the other, all as determined pursuant to Section 1.5 hereof. Borrowings of Swing Loans are made by the Administrative
Agent in accordance with the Procedures set forth in Section 1.14 hereof. 
 “Business Day” means any day (other than a
Saturday or Sunday) on which banks are not authorized or required to close in Chicago, Illinois and, if the applicable Business Day relates to the advance or continuation of, or conversion into, or payment of a Eurodollar Loan, on which banks are
dealing in U.S. Dollar deposits in the interbank eurodollar market in London, England. 
 “Capital Expenditures” means,
with respect to any Person for any period, the aggregate amount of all expenditures (whether paid in cash or accrued as a liability) by such Person during that period for the acquisition or leasing (pursuant to a Capital Lease) of fixed or capital
assets or additions to property, plant, or equipment (including replacements, capitalized repairs, and improvements) which should be capitalized on the balance sheet of such Person in accordance with GAAP. 
  

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 “Capital Lease” means any lease of Property which in accordance with GAAP is required to
be capitalized on the balance sheet of the lessee. 
 “Capitalized Lease Obligation” means, for any Person, the amount of
the liability shown on the balance sheet of such Person in respect of a Capital Lease determined in accordance with GAAP. 
 “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. §§9601 et seq., and
any future amendments. 
 “Change of Control” means any of (a) the acquisition by any “person” or
“group” (as such terms are used in sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) at any time of beneficial ownership of 25% or more of the outstanding Voting Stock of the Borrower on a fully-diluted
basis or (b) the failure within any period of twelve (12) consecutive calendar months of individuals who are members of the board of directors (or similar governing body) of the Borrower on the first day of such period (together with
any new or replacement directors whose initial nomination for election was approved by a majority of the directors who were either directors on the first day of such period or previously so approved) to constitute a majority of the board of
directors (or similar governing body) of the Borrower. For purposes of the foregoing clause (a) a “Change of Control” shall not be deemed to have occurred with respect to (i) KU Learning, L.L.C. or its Affiliates (or their
successors or assigns), or (ii) Camden Partners Strategic II, L.L.C. or its Affiliates (or their successors or assigns) (each such group specified in the foregoing clauses (i) and (ii), an “Existing Group”), solely as a result of
any of the following: (v) such Existing Group being the beneficial owner of shares of the Borrower’s common stock or preferred stock held by it on the Closing Date; (w) the conversion of any shares of the Borrower’s Series E
Preferred Stock or Series F Preferred Stock held by such Existing Group; (x) the exercise by such Existing Group of any pre-emptive rights described in Section 4.6 of the Series E Preferred Stock Purchase Agreement or Section 4.4 of
the Series F Preferred Stock Purchase Agreement; (y) the issuance to such Existing Group and conversion by such Existing Group of any additional shares of Series E Preferred Stock or Series F Preferred Stock received as a dividend pursuant to
the Certificate of Designation for such series of Preferred Stock; or (z) the issuance by the Borrower, to any board representative of such Existing Group (solely in such person or persons’ capacity as a director of the Borrower), of
grants of common stock of the Borrower, options to purchase common stock of the Borrower or the exercise of such options issued to such person or persons. 
 “Closing Date” means the date of this Agreement or such later Business Day upon which each condition described in Section 7.2 shall be satisfied or waived in a manner acceptable to the
Administrative Agent in its discretion. 
 “Code” means the Internal Revenue Code of 1986, as amended, and any successor
statute thereto. 
  

 -23- 

 “Collateral” means all properties, rights, interests, and privileges from time to time
subject to the Liens granted to the Administrative Agent, or any security trustee therefor, by the Collateral Documents. 
 “Collateral Account” is defined in Section 9.4 hereof. 
 “Collateral Documents” means the
Mortgages, the First Supplements, the Security Agreement, and all other mortgages, deeds of trust, security agreements, pledge agreements, assignments, financing statements and other documents as shall from time to time secure or relate to the
Obligations, the Hedging Liability, and the Funds Transfer and Deposit Account Liability or any part thereof. 
 “Compliance
Certificate” is defined in Section 8.5(i) hereof. 
 “Controlled Group” means all members of a controlled
group of corporations and all trades or businesses (whether or not incorporated) under common control which, together with the Borrower, are treated as a single employer under Section 414 of the Code. 
 “Credit” means either of the Revolving Credit or the Swing Line. 
 “Credit Event” means the advancing of any Loan, the continuation of or conversion into a Eurodollar Loan, or the issuance of, or
extension of the expiration date or increase in the amount of, any Letter of Credit. 
 “Default” means any event or
condition the occurrence of which would, with the passage of time or the giving of notice, or both, constitute an Event of Default. 
 “Discovery Acquisition” means the purchase by the Borrower of all of the outstanding capital stock of Discovery Isle Child Development Center, Inc. pursuant to the Discovery Purchase Agreement. 
 “Discovery Purchase Agreement” means that certain Stock Purchase Agreement dated on or about October 21, 2006, by and among the
Borrower, Discovery Isle Child Development Center, Inc. and Cindy W. Bornemann. 
 “Disposition” means the sale, lease,
conveyance or other disposition of Property, other than sales or other dispositions expressly permitted under Sections 8.10(i), 8.10(ii)(a), (b), (c) or (d) hereof. 
 “Domestic Subsidiary” means a Subsidiary that is not a Foreign Subsidiary. 
 “EBITDA” means, with reference to any period (each, a “Test Period”), Net Income for such period plus the sum of
all amounts deducted in arriving at such Net Income amount in respect of (a) Interest Expense for such period, (b) federal, state, and local income taxes for the Borrower and its Subsidiaries for such period, (c) depreciation of fixed
assets and amortization of intangible assets for the Borrower and its Subsidiaries for such period, (d) non-cash 

  

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compensation granted during such period, including any such charges resulting from stock options, restricted stock grants or other equity incentive programs
and (e) for any fiscal quarter, non-cash losses in an amount reasonably acceptable to the Administrative Agent resulting from impairment charges arising from the application of SFAS No. 142 or SFAS No. 144, less
(f) interest income and extraordinary gains for such period, (g) any cash lease expenses incurred by the Borrower and its Subsidiaries during such Test Period and charged against the lease expense reserve as set forth on Schedule 5.1
hereof for such Test Period, less (h) cash severance expenses incurred by the Borrower and its Subsidiaries for such Test Period and charged against the severance expense reserve as set forth on Schedule 5.1 hereto for such Test
Period. EBITDA shall be calculated on a pro forma basis to give effect to any Permitted Acquisition consummated at any time on or after the first day of the Test Period thereof as if each such Permitted Acquisition had been effect on the first day
of such Test Period, and EBITDA shall be calculated to include (i) the historical EBITDA of the Acquired Business as evidenced by the financial statements or financial due diligence analysis delivered to the Administrative Agent pursuant to
clauses (c), (f) and, to the extent required, (g) of the definition of Permitted Acquisition for the period from the first day of such Test Period to, but not including, the date of the consummation of such Permitted Acquisition (the
“Consummation Date”), subject to any cash or non-cash adjustments consented to by the Required Lenders and (ii) the actual EBITDA of the Acquired Business for the period from the Consummation Date to, and including, the last
day of the Test Period. The historical EBITDA of the Acquired Business acquired in connection with the Discovery Acquisition to be included in the calculation of EBITDA shall be set forth in Schedule 5.1 hereto. The Borrower may adjust the items
referred to in clause (g) above appearing on Schedule 5.1 hereto from time to time by delivering an amended Schedule 5.1 with any Compliance Certificate required to be delivered pursuant to Section 8.5 hereof, subject to the review and
approval of such amended Schedule by the Administrative Agent which approval shall not be unreasonably withheld. 
 “Eligible
Assignee” means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund, and (d) any other Person (other than a natural person) approved by (i) the Administrative Agent, (ii) in the case of any
assignment of a Revolving Credit Commitment, the L/C Issuer and the Swing Line Lender, and (iii) unless an Event of Default has occurred and is continuing, the Borrower (each such approval not to be unreasonably withheld or delayed);
provided that notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrower or any Guarantor or any of the Borrower’s or such Guarantor’s Affiliates or Subsidiaries. 
 “Eligible Line of Business” means any business engaged in as of the date of this Agreement by the Borrower or any of its Subsidiaries
(or as may otherwise be agreed to from time to time by the Administrative Agent in writing). 
 “Environmental Claim” means
any investigation, notice, violation, demand, allegation, action, suit, injunction, judgment, order, consent decree, penalty, fine, lien, proceeding or claim (whether administrative, judicial or private in nature) arising (a) pursuant to, or in
connection with an actual or alleged violation of, any Environmental Law, (b) in connection with any Hazardous Material, (c) from any abatement, removal, remedial, corrective or response action in connection with a Hazardous Material,
Environmental Law or order of a governmental authority or (d) from any actual or alleged damage, injury, threat or harm to health, safety, natural resources or the environment. 
  

 -25- 

 “Environmental Law” means any current or future Legal Requirement pertaining to
(a) the protection of health, safety and the indoor or outdoor environment, (b) the conservation, management or use of natural resources and wildlife, (c) the protection or use of surface water or groundwater, (d) the management,
manufacture, possession, presence, use, generation, transportation, treatment, storage, disposal, Release, threatened Release, abatement, removal, remediation or handling of, or exposure to, any Hazardous Material or (e) pollution (including
any Release to air, land, surface water or groundwater), and any amendment, rule, regulation, order or directive issued thereunder. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, or any successor statute thereto. 
 “Eurodollar Loan” means a Loan bearing interest at the rate specified in Section 1.3(b) hereof. 
 “Eurodollar Reserve Percentage” is defined in Section 1.3(b) hereof. 
 “Event of Default”
means any event or condition identified as such in Section 9.1 hereof. 
 “Event of Loss” means, with respect to any
Property, any of the following: (a) any loss, destruction or damage of such Property or (b) any condemnation, seizure, or taking, by exercise of the power of eminent domain or otherwise, of such Property, or confiscation of such Property
or the requisition of the use of such Property. 
 “Evergreen Letter of Credit” means a Letter of Credit with an expiration
date that is automatically extended unless the L/C Issuer gives notice that the expiration date will not so extend beyond its then scheduled expiration date. 
 “Federal Funds Rate” means the fluctuating interest rate per annum described in part (x) of clause (ii) of the definition of Base Rate appearing in Section 1.3(a) hereof. 
 “First Supplements” means and includes each of the First Supplements to each of the Mortgages in effect on the Closing Date. 

“Fixed Charges” means, with reference to any period (each, a “Test Period”), the sum of (a) all cash payments
of principal made or required to be made during such period with respect to Indebtedness for Borrowed Money of the Borrower and its Subsidiaries, other than those payments made on account of term debt under the Original Agreement and those payments
made or required to be made pursuant to Section 1.8 hereof, (b) cash Interest Expense for such period, (c) cash dividends paid during such period, and (d) federal, state, and local income taxes paid in cash by the Borrower and
its Subsidiaries during such period. With respect to any Test Period during which a Permitted Acquisition is consummated, cash Interest Expense for such Test Period shall be calculated on a pro forma basis in accordance with GAAP and in a manner

  

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acceptable to the Required Lenders to the extent that any portion of the Total Consideration for such Permitted Acquisition is financed with the proceeds of
Loans hereunder as if each such Permitted Acquisition and such Loans had been effected on the first day of such Test Period and remained outstanding for the duration of such Test Period. For the avoidance of doubt, no Fixed Charges attributable to
the Acquired Business prior to the consummation of the Permitted Acquisition shall be included in the calculation of Fixed Charges to the Borrower and its Subsidiaries (except with respect to Interest Expense as described in the immediately
preceding sentence). 
 “Fixed Charge Coverage Ratio” is defined in Section 8.23(c) hereof. 
 “Foreign Subsidiary” means each Subsidiary which (a) is organized under the laws of a jurisdiction other than the United States of
America or any state thereof or the District of Columbia, (b) conducts substantially all of its business outside of the United States of America, and (c) has substantially all of its assets outside of the United States of America.

 “Fund” means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or
otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business. 
 “Funds
Transfer and Deposit Account Liability” means the liability of the Borrower or any Subsidiary owing to any of the Lenders, or any Affiliates of such Lenders, arising out of (a) the execution or processing of electronic transfers of
funds by automatic clearing house transfer, wire transfer or otherwise to or from deposit accounts of the Borrower and/or any Subsidiary now or hereafter maintained with any of the Lenders or their Affiliates, (b) the acceptance for deposit or
the honoring for payment of any check, draft or other item with respect to any such deposit accounts, and (c) any other deposit, disbursement, and cash management services afforded to the Borrower or any Subsidiary by any of such Lenders or
their Affiliates. 
 “GAAP” means generally accepted accounting principles set forth from time to time in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and
authority within the U.S. accounting profession), which are applicable to the circumstances as of the date of determination. 
 “Guarantor” and “Guarantors” mean each direct and indirect Subsidiary of the Borrower, other than each Immaterial Subsidiary, which entities are specifically exempted from such definition. 
 “Guaranty” and “Guaranties” each is defined in Section 4.1 hereof. 
 “Hazardous Material” means any substance, chemical, compound, product, solid, gas, liquid, waste, byproduct, pollutant, contaminant or
material which is hazardous or toxic, and includes, without limitation, (a) asbestos, polychlorinated biphenyls and petroleum (including crude oil or any fraction thereof) and (b) any material classified or regulated as
“hazardous” or “toxic” or words of like import pursuant to an Environmental Law applicable to any of the Borrower or any Subsidiary. 
  

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 “Hazardous Material Activity” means any activity, event or occurrence involving a
Hazardous Material, including, without limitation, the manufacture, possession, presence, use, generation, transportation, treatment, storage, disposal, Release, threatened Release, abatement, removal, remediation, handling of or corrective or
response action to any Hazardous Material. 
 “Hedging Liability” means the liability of the Borrower or any Subsidiary to
any of the Lenders, or any Affiliates of such Lenders, in respect of any interest rate, foreign currency, and/or commodity swap, exchange, cap, collar, floor, forward, future or option agreement, or any other similar interest rate, currency or
commodity hedging arrangement, as the Borrower or such Subsidiary, as the case may be, may from time to time enter into with any one or more of the Lenders party to this Agreement or their Affiliates. 
 “Hostile Acquisition” means the acquisition of the capital stock or other equity interests of a Person through a tender offer or similar
solicitation of the owners of such capital stock or other equity interests which has not been approved (prior to such acquisition) by resolutions of the Board of Directors of such Person or by similar action if such Person is not a corporation, and
as to which such approval has not been withdrawn. 
 “Immaterial Subsidiary” means and includes, at any time, each of
Houston Learning Academy—San Antonio, Inc., a Texas corporation, Spyros, Inc., a Texas corporation, Othoni, Inc., a Texas corporation, Marian Catechis, Inc., a Texas corporation, Sance, Inc., a Texas corporation and Malona, Inc., a Texas
corporation: provided, however, that the foregoing Subsidiaries shall constitute Immaterial Subsidiaries for the purposes of this Agreement only if and so long as (i) such Subsidiaries have total assets (determined on a consolidating
basis in accordance with GAAP) as of such date with a fair market value in an aggregate amount not in excess of $100,000 and (ii) as of the last day of the most recently completed calendar month, the aggregate EBITDA of such Subsidiaries for
the twelve calendar month period ended on such date shall be less than or equal to 2% of the EBITDA of the Borrower and its Subsidiaries determined on a consolidated basis in accordance with GAAP. The Borrower hereby covenants that if at any time
the conditions set forth in clauses (i) and (ii) of the proviso to the immediately preceding sentence shall fail to be true, the Subsidiaries identified above shall cease to constitute Immaterial Subsidiaries and the Borrower shall cause
each of such Subsidiaries to comply with the terms of Section 4 hereof. 
 “Indebtedness for Borrowed Money” means for
any Person (without duplication) (a) all indebtedness created, assumed or incurred in any manner by such Person representing money borrowed (including by the issuance of debt securities), (b) all indebtedness for the deferred purchase
price of property or services (other than trade accounts payable arising in the ordinary course of business which are not more than sixty (60) days past due), (c) all indebtedness secured by any Lien upon Property of such Person, whether
or not such Person has assumed or become liable for the payment of such indebtedness, (d) all Capitalized Lease Obligations of such Person, and (e) all obligations of such Person on or with respect to letters of credit, bankers’
acceptances and other extensions of credit whether or not representing obligations for borrowed money. 
  

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 “Interest Expense” means, with reference to any period, the sum of all interest charges
(including imputed interest charges with respect to Capitalized Lease Obligations and all amortization of debt discount and expense) of the Borrower and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP.

 “Interest Period” is defined in Section 1.6 hereof. 
 “L/C Issuer” means the Administrative Agent, or any other Lender requested by the Borrower and approved by the Administrative Agent in
its sole discretion with respect to any Letter of Credit. 
 “L/C Obligations” means the aggregate undrawn face amounts of
all outstanding Letters of Credit and all unpaid Reimbursement Obligations. 
 “L/C Sublimit” means $3,500,000 as
reduced pursuant to the terms hereof. 
 “Legal Requirement” means any treaty, convention, statute, law, regulation,
ordinance, license, permit, governmental approval, injunction, judgment, order, consent decree or other requirement of any governmental authority, whether federal, state, or local. 
 “Lenders” means and includes BMO Capital Markets Financing, Inc. and the other financial institutions from time to time party to this
Agreement, including each assignee Lender pursuant to Section 13.12 hereof. 
 “Lending Office” is defined in
Section 10.4 hereof. 
 “Letter of Credit” is defined in Section 1.2(a) hereof. 
 “LIBOR” is defined in Section 1.2(b) hereof. 
 “Lien” means any mortgage, lien, security interest, pledge, charge or encumbrance of any kind in respect of any Property, including the interests of a vendor or lessor under any conditional sale,
Capital Lease or other title retention arrangement. 
 “Loan” means any Revolving Loan or Swing Loan, whether outstanding as
a Base Rate Loan or Eurodollar Loan or otherwise, each of which is a “type” of Loan hereunder. 
 “Loan
Documents” means this Agreement, the Notes (if any), the Applications, the Collateral Documents, the Guaranties, and each other instrument or document to be delivered hereunder or thereunder or otherwise in connection therewith. 

“Material Adverse Effect” means (a) a material adverse change in, or material adverse effect upon, the operations, business,
Property or condition (financial or otherwise) of the Borrower or of the Borrower and its Subsidiaries taken as a whole, (b) a material impairment of the ability of the Borrower to perform its material obligations under any Loan Document or of
the Borrower and its Subsidiaries taken as a whole to perform their material obligations under 

  

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any Loan Documents or (c) a material adverse effect upon (i) the legality, validity, binding effect or enforceability against the Borrower or any
Guarantor of any Loan Document or the rights and remedies of the Administrative Agent and the Lenders thereunder or (ii) the perfection or priority of any Lien granted under any Collateral Document. 
 “Material Written Audit” means a written audit of such significance that such audit and the legal, regulatory and financial impacts of
such audit and the legal and regulatory actions likely to result therefrom are reasonably likely to have a material adverse effect upon the operations, business, Property or condition (financial or otherwise) of the Borrower or any Subsidiary.

 “Moody’s” means Moody’s Investors Service, Inc. 
 “Mortgages” means, collectively, each Mortgage and Security Agreement with Assignment of Rents and each Deed of Trust and Security
Agreement with Assignment of Rents between the Borrower or the relevant Guarantor and the Administrative Agent relating to such Person’s real property owned as of the Closing Date and located in the States of New Jersey, Pennsylvania, Illinois,
North Carolina, California and Georgia and any other mortgages or deeds of trust delivered to the Administrative Agent pursuant to Section 4.3 hereof, as the same may be amended, modified, supplemented or restated from time to time. 

“Net Capital Expenditures” means, for any period, Capital Expenditures for such period less that portion of Capital Expenditures
incurred during such period which is financed through Capital Leases. 
 “Net Cash Proceeds” means, as applicable,
(a) with respect to any Disposition by a Person, cash and cash equivalent proceeds received by or for such Person’s account, net of (i) reasonable direct costs relating to such Disposition and (ii) sale, use or other
transactional taxes paid or payable by such Person as a direct result of such Disposition, (b) with respect to any Event of Loss of a Person, cash and cash equivalent proceeds received by or for such Person’s account (whether as a result
of payments made under any applicable insurance policy therefor or in connection with condemnation proceedings or otherwise), net of reasonable direct costs incurred in connection with the collection of such proceeds, awards or other payments, and
(c) with respect to any offering of equity securities of a Person or the issuance of any Indebtedness for Borrowed Money by a Person, cash and cash equivalent proceeds received by or for such Person’s account, net of reasonable legal,
underwriting, and other fees, commissions and expenses incurred as a direct result thereof. 
 “Net Income” means, with
reference to any period, the net income (or net loss) of the Borrower and its Subsidiaries for such period computed on a consolidated basis in accordance with GAAP; provided that there shall be excluded from Net Income the net income (or net
loss) of any Person (other than a Subsidiary) in which the Borrower or any of its Subsidiaries has a equity interest, except to the extent of the amount of dividends or other distributions actually paid to the Borrower or any of its Subsidiaries
during such period. 
 “Note” and “Notes” means and includes the Revolving Note and the Swing Note.

  

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 “Obligations” means all obligations of the Borrower to pay principal and interest on the
Loans, all Reimbursement Obligations owing under the Applications, all fees and charges payable hereunder, and all other payment obligations of the Borrower or any of its Subsidiaries arising under or in relation to any Loan Document, in each case
whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held or acquired. 
 “Participating Interest” is defined in Section 1.2(d) hereof. 
 “Participating
Lender” is defined in Section 1.2(d) hereof. 
 “PBGC” means the Pension Benefit Guaranty Corporation or any
Person succeeding to any or all of its functions under ERISA. 
 “Percentage” means for any Lender its Revolver Percentage,
as applicable; and where the term “Percentage” is applied on an aggregate basis (including, without limitation, Section 11.6 hereof), such aggregate percentage shall be calculated by aggregating the separate components of the
Revolver Percentage, and expressing such components on a single percentage basis. 
 “Permitted Acquisition” means any
Acquisition with respect to which all of the following conditions shall have been satisfied: 
 (a) the Acquired Business is
in an Eligible Line of Business and has its primary operations within the United States of America; 
 (b) the Acquisition
shall not be a Hostile Acquisition; 
 (c) the financial statements of the Acquired Business shall have been audited by an
independent accounting firm reasonably satisfactory to the Administrative Agent, or if such financial statements have not been audited by such an accounting firm, (i) such financial statements shall have been approved by the Required Lenders
and (ii) the Acquired Business has undergone a review, compilation or financial analysis by an independent accounting firm reasonably satisfactory to the Administrative Agent as part of the applicable Borrower’s due diligence on the
Acquisition; 
 (d) the financial statements provided pursuant to clause (c) above shall evidence that the EBITDA of the
Acquired Business for the twelve most recently completed calendar months is not less than $0; 
 (e) the aggregate Total
Consideration for all Acquired Businesses acquired in any fiscal year of the Borrower shall not exceed (i) $18,000,000 during the Borrower’s fiscal year ending on or about June 30, 2007 and (ii) $15,000,000 during any fiscal year
of the Borrower ending thereafter; 
  

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 (f) the Borrower shall have notified the Administrative Agent and Lenders not less than
20 days prior to the consummation of any such Acquisition and furnished to the Administrative Agent and Lenders at such time reasonable details as to such Acquisition (including sources and uses of funds therefor), and 3-year historical financial
information and 3-year pro forma financial forecasts of the Acquired Business on a stand alone basis as well as of the Borrower on a consolidated basis after giving effect to the Acquisition and covenant compliance calculations reasonably
satisfactory to the Administrative Agent demonstrating satisfaction of the condition described in clause (i) below; 
 (g) if the Total Consideration for the Acquired Business exceeds $5,000,000, the Borrower shall supply to the Administrative Agent and Lenders a third party quality of earnings report completed by a firm that is satisfactory to the
Administrative Agent in its reasonable discretion. 
 (h) if a new Subsidiary is formed or acquired as a result of or in
connection with the Acquisition, the Borrower shall have complied with the requirements of Section 4 hereof in connection therewith; 
 (i) the Administrative Agent shall have received a Compliance Certificate evidencing, to the satisfaction of the Administrative Agent, that (i) the Total Funded Debt/EBITDA Ratio, calculated on a pro forma
basis after giving effect to such Acquisition is not greater than (x) the then applicable ratio set forth in Section 8.21(a) hereof minus (y) 0.25 to 1.0, and (ii) the Fixed Charge Coverage Ratio, calculated on a
pro forma basis after giving effect to such Acquisition shall not be less than 1.30 to 1.00; 
 (j) after giving effect
to the Acquisition and any Credit Event in connection therewith, no Default or Event of Default shall exist, including with respect to the financial covenants contained in Section 8.21 hereof on a pro forma basis; and 
 (k) after giving effect to the Acquisition and any Credit Event in connection therewith, the Borrower shall have not less than $5,000,000
of Unused Revolving Credit Commitments. 
 For the avoidance of doubt, the Discovery Acquisition shall constitute a Permitted Acquisition
provided that such Acquisition complies with each of clauses (a) through (k) above (other than the 20-day notice provision set forth in clause (f) above). 
 “Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization or any other entity or organization, including a government or agency
or political subdivision thereof. 
 “Philadelphia School Loan” means the amounts paid by the Borrower for leasehold
improvements at premises leased under a certain Lease Agreement dated May 2, 2000 (as amended by that certain Addendum #1 dated May 2, 2000) between Arsenal Associates and the Borrower, and subleased by the Borrower to Franklin Towne
Charter High School, Inc. 
  

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 “Plan” means any employee pension benefit plan covered by Title IV of ERISA or
subject to the minimum funding standards under Section 412 of the Code that either (a) is maintained by a member of the Controlled Group for employees of a member of the Controlled Group or (b) is maintained pursuant to a collective
bargaining agreement or any other arrangement under which more than one employer makes contributions and to which a member of the Controlled Group is then making or accruing an obligation to make contributions or has within the preceding five plan
years made contributions. 
 “Premises” means the real property owned or leased by the Borrower or any Subsidiary, including
without limitation the real property and improvements thereon owned by the Borrower or any Subsidiary subject to the Lien of the Mortgages or any other Collateral Documents. 
 “Property” means, as to any Person, all types of real, personal, tangible, intangible or mixed property owned by such Person whether or
not included in the most recent balance sheet of such Person and its subsidiaries under GAAP. 
 “RCRA” means the Solid
Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976 and Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. §§6901 et seq., and any future amendments.

 “Reimbursement Obligation” is defined in Section 1.2(c) hereof. 
 “Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, migration,
dumping, or disposing into the indoor or outdoor environment, including, without limitation, the abandonment or discarding of barrels, drums, containers, tanks or other receptacles containing or previously containing any Hazardous Material.

 “Required Lenders” means, as of the date of determination thereof, Lenders whose outstanding Loans, interests in Letters
of Credit, interests in Swing Loans and Unused Revolving Credit Commitments constitute more than 50% of the sum of the total outstanding Loans, interests in Letters of Credit, interests in Swing Loans and Unused Revolving Credit Commitments of the
Lenders, provided that, at any time when there are fewer than three Lenders, “Required Lenders” shall mean all of the Lenders. 
 “Responsible Officer” means the chief executive officer, chief financial officer, chief operating officer, president or general counsel of the Borrower or any Guarantor. 
 “Revolver Percentage” means, for each Lender, the percentage of the Revolving Credit Commitments represented by such Lender’s
Revolving Credit Commitment or, if the Revolving Credit Commitments have been terminated, the percentage held by such Lender (including through participation interests in Reimbursement Obligations and participation interests in Swing Loans) of the
aggregate principal amount of all Loans and L/C Obligations then outstanding. 
 “Revolving Credit” means the credit
facility for making Revolving Loans and Swing Loans and issuing Letters of Credit described in Sections 1.1 and 1.2 hereof. 
  

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 “Revolving Credit Commitment” means, as to any Lender, the obligation of such Lender to
make Revolving Loans and to participate in Swing Loans and Letters of Credit issued for the account of the Borrower hereunder in an aggregate principal or face amount at any one time outstanding not to exceed the amount set forth opposite such
Lender’s name on Schedule 1 attached hereto and made a part hereof, as the same may be reduced or modified at any time or from time to time pursuant to the terms hereof. The Borrower and the Lenders acknowledge and agree that the Revolving
Credit Commitments of the Lenders aggregate $50,000,000 on the date hereof. 
 “Revolving Credit Termination Date” means
October 30, 2011, or such earlier date on which the Revolving Credit Commitments are terminated in whole pursuant to Section 1.12, 9.2 or 9.3 hereof. 
 “Revolving Loan” is defined in Section 1.1 hereof and, as so defined, includes a Base Rate Loan or a Eurodollar Loan, each of which is a “type” of Revolving Loan hereunder.

 “Revolving Note” is defined in Section 1.10 hereof. 
 “S&P” means Standard & Poor’s Ratings Services Group, a division of The McGraw-Hill Companies, Inc. 
 “Security Agreement” means that certain Amended and Restated Security Agreement dated the date of this Agreement among the Borrower and
the Guarantors and the Administrative Agent, as the same may be amended, modified, supplemented or restated from time to time. 
 “Subordinated Debt” means Indebtedness for Borrowed Money which is subordinated in right of payment to the prior payment of the Obligations, Hedging Liability, and Funds Transfer and Deposit Account Liability pursuant to
subordination provisions approved in writing by the Administrative Agent and the Required Lenders and is otherwise pursuant to documentation that is, which is in an amount that is, and which contains interest rates, payment terms, maturities,
amortization schedules, covenants, defaults, remedies and other material terms that are in form and substance, in each case satisfactory to the Administrative Agent and the Required Lenders. 
 “Subsidiary” means, as to any particular parent corporation or organization, any other corporation or organization more than 50% of the
outstanding Voting Stock of which is at the time directly or indirectly owned by such parent corporation or organization or by any one or more other entities which are themselves subsidiaries of such parent corporation or organization. Unless
otherwise expressly noted herein, the term “Subsidiary” means a Subsidiary of the Borrower or of any of its direct or indirect Subsidiaries. 
 “Swing Line” means the credit facility for making one or more Swing Loans described in Section 1.14 hereof. 
 “Swing Line Lender” means BMO Capital Markets Financing, Inc. 
 “Swing Line
Sublimit” means $2,000,000, as reduced pursuant to the terms hereof. 
  

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 “Swing Loan” and “Swing Loans” each is defined in Section 1.14
hereof. 
 “Swing Note” is defined in Section 1.10 hereof. 
 “Total Consideration” means, with respect to an Acquisition, the sum (but without duplication) of (a) cash paid in connection with
any Acquisition, (b) indebtedness payable to the seller in connection with such Acquisition, (c) the fair market value of any equity securities, including any warrants or options therefor, delivered in connection with any Acquisition,
(d) the present value of future payments which are required to be made over a period of time and are not contingent upon the Borrower or its Subsidiary meeting financial performance objectives (exclusive of salaries paid in the ordinary course
of business) (discounted at the Base Rate), but only to the extent not included in clause (a), (b) or (c) above, and (e) the amount of indebtedness assumed in connection with such Acquisition. 
 “Total Funded Debt” means, at any time the same is to be determined, the sum (but without duplication) of (a) all Indebtedness for
Borrowed Money of the Borrower and its Subsidiaries at such time, and (b) all Indebtedness for Borrowed Money of any other Person which is directly or indirectly guaranteed by the Borrower or any of its Subsidiaries or which the Borrower or any
of its Subsidiaries has agreed (contingently or otherwise) to purchase or otherwise acquire or in respect of which the Borrower or any of its Subsidiaries has otherwise assured a creditor against loss. 
 “Total Funded Debt/EBITDA Ratio” means, as of the last day of any fiscal quarter of the Borrower, the ratio of Total Funded Debt of the
Borrower and its Subsidiaries as of the last day of such fiscal quarter to EBITDA of the Borrower and its Subsidiaries for the period of four fiscal quarters then ended. 
 “Unfunded Vested Liabilities” means, for any Plan at any time, the amount (if any) by which the present value of all vested
nonforfeitable accrued benefits under such Plan exceeds the fair market value of all Plan assets allocable to such benefits, all determined as of the then most recent valuation date for such Plan, but only to the extent that such excess represents a
potential liability of a member of the Controlled Group to the PBGC or the Plan under Title IV of ERISA. 
 “Unused Revolving
Credit Commitments” means, at any time, the difference between the Revolving Credit Commitments then in effect and the aggregate outstanding principal amount of Revolving Loans and L/C Obligations, provided that Swing Loans outstanding
from time to time shall be deemed to reduce the Unused Revolving Credit Commitment of the Swing Line Lender for purposes of computing the commitment fee under Section 2.1(c) hereof. 
 “U.S. Dollars” and “$” each means the lawful currency of the United States of America. 
 “Voting Stock” of any Person means capital stock or other equity interests of any class or classes (however designated) having ordinary
power for the election of directors or other similar governing body of such Person, other than stock or other equity interests having such power only by reason of the happening of a contingency. 
  

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 “Welfare Plan” means a “welfare plan” as defined in Section 3(1) of
ERISA. 
 “Wholly-owned Subsidiary” means a Subsidiary of which all of the issued and outstanding shares of capital stock
(other than directors’ qualifying shares as required by law) or other equity interests are owned by the Borrower and/or one or more Wholly-owned Subsidiaries within the meaning of this definition. 
 Section 5.2. Interpretation. The foregoing definitions are equally applicable to both the singular and plural forms of the terms defined. The
words “hereof”, “herein”, and “hereunder” and words of like import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. All
references to time of day herein are references to Chicago, Illinois, time unless otherwise specifically provided. Where the character or amount of any asset or liability or item of income or expense is required to be determined or any consolidation
or other accounting computation is required to be made for the purposes of this Agreement, it shall be done in accordance with GAAP except where such principles are inconsistent with the specific provisions of this Agreement. 
 Section 5.3. Change in Accounting Principles. If, after the date of this Agreement, there shall occur any change in GAAP from those used in
the preparation of the financial statements referred to in Section 6.5 hereof and such change shall result in a change in the method of calculation of any financial covenant, standard or term found in this Agreement, either the Borrower or the
Required Lenders may by notice to the Lenders and the Borrower, respectively, require that the Lenders and the Borrower negotiate in good faith to amend such covenants, standards, and terms so as equitably to reflect such change in accounting
principles, with the desired result being that the criteria for evaluating the financial condition of the Borrower and its Subsidiaries shall be the same as if such change had not been made. No delay by the Borrower or the Required Lenders in
requiring such negotiation shall limit their right to so require such a negotiation at any time after such a change in accounting principles. Until any such covenant, standard, or term is amended in accordance with this Section 5.3, financial
covenants shall be computed and determined in accordance with GAAP in effect prior to such change in accounting principles. Without limiting the generality of the foregoing, the Borrower shall neither be deemed to be in compliance with any financial
covenant hereunder nor out of compliance with any financial covenant hereunder if such state of compliance or noncompliance, as the case may be, would not exist but for the occurrence of a change in accounting principles after the date hereof.

 SECTION 6. REPRESENTATIONS AND WARRANTIES. 

The Borrower represents and warrants to the Administrative Agent and the Lenders as follows: 
 Section 6.1. Organization and Qualification. The Borrower is duly organized, validly existing, and in good standing as a corporation under the
laws of the State of Delaware, has full and adequate power to own its Property and conduct its business as now conducted, and is duly licensed or qualified and in good standing in each jurisdiction in which the nature of the business conducted by it
or the nature of the Property owned or leased by it requires such licensing or qualifying, except where the failure to do so would not have a Material Adverse Effect. 
  

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 Section 6.2. Subsidiaries. Each Subsidiary is duly organized, validly existing, and in good
standing under the laws of the jurisdiction in which it is organized, has full and adequate power to own its Property and conduct its business as now conducted, and is duly licensed or qualified and in good standing in each jurisdiction in which the
nature of the business conducted by it or the nature of the Property owned or leased by it requires such licensing or qualifying, except where the failure to do so would not have a Material Adverse Effect. Schedule 6.2 hereto identifies each
Subsidiary, the jurisdiction of its organization, the percentage of issued and outstanding shares of each class of its capital stock or other equity interests owned by the Borrower and the other Subsidiaries and, if such percentage is not 100%
(excluding directors’ qualifying shares as required by law), a description of each class of its authorized capital stock and other equity interests and the number of shares of each class issued and outstanding. All of the outstanding shares of
capital stock and other equity interests of each Subsidiary are validly issued and outstanding and fully paid and nonassessable and all such shares and other equity interests indicated on Schedule 6.2 hereto as owned by the Borrower or another
Subsidiary are owned, beneficially and of record, by the Borrower or such Subsidiary free and clear of all Liens other than the Liens granted in favor of the Administrative Agent pursuant to the Collateral Documents. Except as set forth on Schedule
6.2 hereto, there are no outstanding commitments or other obligations of any Subsidiary to issue, and no options, warrants or other rights of any Person to acquire, any shares of any class of capital stock or other equity interests of any
Subsidiary. 
 Section 6.3. Authority and Validity of Obligations. The Borrower has full right and authority to enter into this
Agreement and the other Loan Documents executed by it, to make the borrowings herein provided for, to issue its Notes in evidence thereof, to grant to the Administrative Agent the Liens described in the Collateral Documents executed by the Borrower,
and to perform all of its obligations hereunder and under the other Loan Documents executed by it. Each Guarantor has full right and authority to enter into the Loan Documents executed by it, to guarantee the Obligations, Hedging Liability, and
Funds Transfer and Deposit Account Liability, to grant to the Administrative Agent the Liens described in the Collateral Documents executed by such Person, and to perform all of its obligations under the Loan Documents executed by it. The Loan
Documents delivered by the Borrower and the Guarantors have been duly authorized, executed, and delivered by such Persons and constitute valid and binding obligations of the Borrower and the Guarantors enforceable against them in accordance with
their terms, except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance or similar laws affecting creditors’ rights generally and general principles of equity (regardless of whether the application of such
principles is considered in a proceeding in equity or at law); and this Agreement and the other Loan Documents do not, nor does the performance or observance by the Borrower or any Guarantor of any of the matters and things herein or therein
provided for, (a) contravene or constitute a default under any provision of law or any judgment, injunction, order or decree binding upon the Borrower or any Guarantor or any provision of the organizational documents (e.g., charter,
certificate or articles of incorporation and by-laws, certificate or articles of association and operating agreement, partnership agreement, or other similar organizational documents) of the Borrower or any Guarantor, 

  

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(b) contravene or constitute a default under any covenant, indenture or agreement of or affecting the Borrower or any Guarantor or any of their
Property, in each case where such contravention or default, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, or (c) result in the creation or imposition of any Lien on any Property of the
Borrower or any Guarantor other than the Liens granted in favor of the Administrative Agent pursuant to the Collateral Documents. 
 Section 6.4. Use of Proceeds; Margin Stock. The Borrower shall use the proceeds of the Revolving Credit to refinance existing Indebtedness for Borrowed Money of the Borrower, to finance Capital Expenditures for the
Borrower’s and, subject to the terms thereof, its Subsidiaries general working capital purposes, to finance Permitted Acquisitions, and for such other legal and proper purposes as are consistent with all applicable laws. Neither the Borrower
nor any Subsidiary is engaged in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve System), and no part of the proceeds
of any Loan or any other extension of credit made hereunder will be used to purchase or carry any such margin stock or to extend credit to others for the purpose of purchasing or carrying any such margin stock. Margin stock (as hereinabove defined)
constitutes less than 25% of the assets of the Borrower and its Subsidiaries which are subject to any limitation on sale, pledge or other restriction hereunder. 
 Section 6.5. Financial Reports. The consolidated balance sheet of the Borrower and its Subsidiaries as at July 1, 2006 and the related consolidated statements of income, retained earnings and cash
flows of the Borrower and its Subsidiaries for the fiscal year then ended, and accompanying notes thereto, which financial statements are accompanied by the audit report of BDO Seidman LLP, independent public accountants, heretofore furnished to the
Administrative Agent and the Lenders, fairly present in all material respects the consolidated financial condition of the Borrower and its Subsidiaries as at said dates and the consolidated results of their operations and cash flows for the periods
then ended in conformity with GAAP applied on a consistent basis (subject, in the case of the unaudited statements, to normal year-end adjustments that are not expected to be material). Except as set forth on Schedule 6.5 hereto, neither the
Borrower nor any Subsidiary had, as of the respective ending dates of the financial statements referred to above, contingent liabilities which were material to it other than as indicated on such financial statements. 
 Section 6.6. No Material Adverse Change. Except as set forth on Schedule 6.6 hereto, since July 1, 2006, there has been no change in the
condition (financial or otherwise) of the Borrower or any Subsidiary except those occurring in the ordinary course of business, none of which individually or in the aggregate would reasonably be expected to have a Material Adverse Effect.

 Section 6.7. Full Disclosure. The statements and information furnished to the Administrative Agent and the Lenders in
connection with the negotiation of this Agreement and the other Loan Documents and the commitments by the Lenders to provide all or part of the financing contemplated hereby do not contain any untrue statements of a material fact or omit a material
fact necessary to make the material statements contained herein or therein not misleading, the Administrative Agent and the Lenders acknowledging that as to any projections 

  

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furnished to the Administrative Agent and the Lenders, the Borrower only represents that the same were prepared on the basis of information and estimates the
Borrower believed to be reasonable at the time of such projection. 
 Section 6.8. Trademarks, Franchises, and Licenses. Except
as set forth on Schedule 6.8 hereto, the Borrower and its Subsidiaries own, possess, or have the right to use all necessary patents, licenses, franchises, trademarks, trade names, trade styles, copyrights, trade secrets, know how, and confidential
commercial and proprietary information to conduct their businesses as now conducted, without known conflict with any patent, license, franchise, trademark, trade name, trade style, copyright or other proprietary right of any other Person.

 Section 6.9. Governmental Authority and Licensing. Except as disclosed in the Borrower’s Annual Report on Form 10-K for
the fiscal year ended June 30, 2006, the Borrower and its Subsidiaries have received all licenses, permits, and approvals of all federal, state, and local governmental authorities, if any, necessary to conduct their businesses, in each case
where the failure to obtain or maintain the same would reasonably be expected to have a Material Adverse Effect. No investigation or proceeding which, if adversely determined, could reasonably be expected to result in revocation or denial of any
license, permit or approval is pending or, to the knowledge of the Borrower, threatened, except for any such revocation or denial which would not reasonably be expected to have a Material Adverse Effect. 
 Section 6.10. Good Title. The Borrower and its Subsidiaries have good and defensible title (or valid leasehold interests and licenses) to
their assets as reflected on the most recent consolidated balance sheet of the Borrower and its Subsidiaries furnished to the Administrative Agent and the Lenders (except for sales of assets in the ordinary course of business), subject to no Liens
other than such thereof as are permitted by Section 8.8 hereof. 
 Section 6.11. Litigation and Other Controversies. Except
as disclosed in the Borrower’s Annual Report on Form 10-K for the fiscal year ended June 30, 2006, there is no litigation or governmental or arbitration proceeding or labor controversy pending, nor to the knowledge of any Responsible
Officer of the Borrower threatened, against the Borrower or any Subsidiary or any of their Property which if adversely determined, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. 
 Section 6.12. Taxes. Except as set forth on Schedule 6.12 hereto, all tax returns required to be filed by the Borrower or any Subsidiary in
any jurisdiction have, in fact, been filed, and all taxes, assessments, fees, and other governmental charges upon the Borrower or any Subsidiary or upon any of its Property, income or franchises, which are shown to be due and payable in such
returns, have been paid, except such taxes, assessments, fees and governmental charges, if any, as are being contested in good faith and by appropriate proceedings which prevent enforcement of the matter under contest and as to which adequate
reserves established in accordance with GAAP have been provided. The Borrower does not know of any proposed additional tax assessment against it or its Subsidiaries for which adequate provisions in accordance with GAAP have not been made on their
accounts. Adequate provisions in accordance with GAAP for taxes on the books of the Borrower and each Subsidiary have been made for all open years, and for its current fiscal period. 
  

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 Section 6.13. Approvals. No authorization, consent, license or exemption from, or filing or
registration with, any court or governmental department, agency or instrumentality, nor any approval or consent of any other Person, is or will be necessary to the valid execution, delivery or performance by the Borrower or any Subsidiary of any
Loan Document, except for such approvals which have been obtained on or prior to the Closing Date and remain in full force and effect. 
 Section 6.14. Affiliate Transactions. Except as disclosed in the Borrower’s Annual Report on Form 10-K for the fiscal year ended June 30, 2006, neither the Borrower nor any Subsidiary is a party to any contracts
or agreements with any of its Affiliates (other than with Wholly-owned Subsidiaries) on terms and conditions which are less favorable to the Borrower or such Subsidiary than would be usual and customary in similar contracts or agreements between
Persons not affiliated with each other, except for compensation agreements with officers and directors approved by the compensation committee of the Borrower’s board of directors. 
 Section 6.15. Investment Company. Neither the Borrower nor any Subsidiary is an “investment company” or a company
“controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
 Section 6.16. ERISA. The Borrower and each other member of its Controlled Group has fulfilled its obligations under the minimum funding standards of and is, along with each of their Employee Benefit Plans (and each related
trust, insurance contract or fund), in compliance in all material respects with ERISA and the Code to the extent applicable to it and has not incurred any liability to the PBGC or a Plan under Title IV of ERISA other than a liability to the
PBGC for premiums under Section 4007 of ERISA. Except as set forth on Schedule 6.16 hereto, neither the Borrower nor any Subsidiary has any contingent liabilities with respect to any post-retirement benefits under a Welfare Plan, other than
liability for continuation coverage described in article 6 of Title I of ERISA. 
 Section 6.17. Compliance with Laws.
(a) Except as disclosed in the Borrower’s Annual Report on Form 10-K for the fiscal year ended June 30, 2006, the Borrower and its Subsidiaries are in compliance with the requirements of all federal, state and local laws, rules
and regulations applicable to or pertaining to their Property or business operations (including, without limitation, the Occupational Safety and Health Act of 1970, the Americans with Disabilities Act of 1990, and laws and regulations establishing
quality criteria and standards for air, water, land and toxic or hazardous wastes and substances), where any such non-compliance, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. 
 (b) Without limiting the representations and warranties set forth in Section 6.17(a) above, except (A) as disclosed in the Borrower’s
Annual Report on Form 10-K for the fiscal year ended June 30, 2006 and (B) for such other matters, individually or in the aggregate, which could not reasonably be expected to result in a Material Adverse Effect, the Borrower
represents and warrants that: (i) the Borrower and its Subsidiaries, and each of the Premises, comply in all material respects with all applicable Environmental Laws; (ii) the Borrower and its Subsidiaries have obtained all governmental
approvals required for their operations and each of the Premises by any applicable Environmental Law; (iii) the Borrower and its Subsidiaries have not, and the 

  

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Borrower has no knowledge of any other Person who has, caused any Release, threatened Release or disposal of any Hazardous Material at, on, about, or off any
of the Premises in any material quantity and, to the knowledge of the Borrower, none of the Premises are adversely affected by any Release, threatened Release or disposal of a Hazardous Material originating or emanating from any other property;
(iv) to Borrower’s knowledge, none of the Premises contain and have contained any: (1) underground storage tank, (2) material amounts of asbestos containing building material, (3) landfills or dumps, (4) hazardous waste
management facility as defined pursuant to RCRA or any comparable state law, or (5) site on or nominated for the National Priority List promulgated pursuant to CERCLA or any state remedial priority list promulgated or published pursuant to any
comparable state law; (v) the Borrower and its Subsidiaries have not used a material quantity of any Hazardous Material and have conducted no Hazardous Material Activity at any of the Premises; (vi) the Borrower and its Subsidiaries have
no material liability for response or corrective action, natural resource damage or other harm pursuant to CERCLA, RCRA or any comparable state law; (vii) the Borrower and its Subsidiaries are not subject to, have no notice or knowledge of and
are not required to give any notice of any Environmental Claim involving the Borrower or any Subsidiary or any of the Premises, and there are no conditions or occurrences at any of the Premises which could reasonably be anticipated to form the basis
for an Environmental Claim against the Borrower or any Subsidiary or such Premises; (viii) none of the Premises are subject to any, and the Borrower has no knowledge of any imminent restriction on the ownership, occupancy, use or
transferability of the Premises in connection with any (1) Environmental Law or (2) Release, threatened Release or disposal of a Hazardous Material; and (ix) there are no conditions or circumstances at any of the Premises which pose
an unreasonable risk to the environment or the health or safety of Persons. 
 Section 6.18. Other Agreements. Neither the
Borrower nor any Subsidiary is in default under the terms of any covenant, indenture or agreement of or affecting such Person or any of its Property, which default if uncured would reasonably be expected to have a Material Adverse Effect.

 Section 6.19. Solvency. The Borrower and each Guarantor are solvent, able to pay their debts as they become due, and have
sufficient capital to carry on their business and all businesses in which they are about to engage. 
 Section 6.20. No Broker
Fees. Except as set forth on Schedule 6.20 hereto, no broker’s or finder’s fee or commission will be payable with respect hereto or any of the transactions contemplated thereby; and the Borrower hereby agrees to indemnify the
Administrative Agent and the Lenders against, and agree that they will hold the Administrative Agent and the Lenders harmless from, any claim, demand, or liability for any such broker’s or finder’s fees alleged to have been incurred in
connection herewith or therewith and any expenses (including reasonable attorneys’ fees) arising in connection with any such claim, demand, or liability. 
 Section 6.21. No Default. No Default or Event of Default has occurred and is continuing. 
  

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 SECTION 7. CONDITIONS PRECEDENT.

 The obligation of each Lender to advance, continue or convert any Loan (other than the continuation of, or conversion into, a Base Rate
Loan) or of the L/C Issuer to issue, extend the expiration date (including by not giving notice of non-renewal) of or increase the amount of any Letter of Credit under this Agreement, shall be subject to the following conditions precedent:

 Section 7.1. All Credit Events. At the time of each Credit Event hereunder: 
 (a) each of the representations and warranties set forth herein and in the other Loan Documents shall be and remain true and correct in
all material respects as of said time, except to the extent the same expressly relate to an earlier date; 
 (b) no Default or
Event of Default shall have occurred and be continuing or would occur as a result of such Credit Event; 
 (c) in the case of
a Borrowing the Administrative Agent shall have received the notice required by Section 1.5 hereof, in the case of the issuance of any Letter of Credit the L/C Issuer shall have received a duly completed Application for such Letter of Credit
together with any fees called for by Section 2.1 hereof, and, in the case of an extension or increase in the amount of a Letter of Credit, a written request therefor in a form acceptable to the L/C Issuer together with fees called for by
Section 2.1 hereof; and 
 (d) such Credit Event shall not violate any order, judgment or decree of any court or other
authority or any provision of law or regulation applicable to the Administrative Agent, the L/C Issuer, or any Lender (including, without limitation, Regulation U of the Board of Governors of the Federal Reserve System) as then in effect.

 Each request for a Borrowing hereunder and each request for the issuance of, increase in the amount of, or extension of the expiration
date of, a Letter of Credit shall be deemed to be a representation and warranty by the Borrower on the date on such Credit Event as to the facts specified in subsections (a) through (c), both inclusive, of this Section. 
 Section 7.2. Initial Credit Event. Before or concurrently with the initial Credit Event: 
 (a) the Administrative Agent shall have received for each Lender this Agreement duly executed by the Borrower and the Guarantors, and the
Lenders; 
 (b) the Administrative Agent shall have received for each Lender such Lender’s duly executed Notes of the
Borrower dated the date hereof and otherwise in compliance with the provisions of Section 1.10 hereof; 
 (c) the
Administrative Agent shall have received the First Supplements, and Security Agreement duly executed by the Borrower and the Guarantors, as appropriate, together with, to the extent not previously delivered, (i) original stock certificates or
other similar instruments or securities representing all of the issued and outstanding shares of 

  

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capital stock or other equity interests in each Subsidiary (66% of such capital stock in the case of any Foreign Subsidiary as provided in Section 4.2
hereof) as of the Closing Date, (ii) stock powers for the Collateral consisting of the stock or other equity interest in each Subsidiary executed in blank and undated, (iii) UCC financing statements to be filed against the Borrower and
each Guarantor, as debtor, in favor of the Administrative Agent, as secured party, (iv) patent, trademark, and copyright collateral agreements to the extent requested by the Administrative Agent, and (v) deposit account, securities
account, and commodity account control agreements to the extent requested by the Administrative Agent; 
 (d) the
Administrative Agent shall have received evidence of insurance required to be maintained under the Loan Documents, naming the Administrative Agent, in such capacity, as mortgagee and loss payee; 
 (e) the Administrative Agent shall have received for each Lender copies of the Borrower’s and each Guarantor’s articles of
incorporation and bylaws (or comparable organizational documents) and any amendments thereto, certified in each instance by its Secretary or Assistant Secretary; 
 (f) the Administrative Agent shall have received for each Lender copies of resolutions of the Borrower’s and each Guarantor’s
Board of Directors (or similar governing body) authorizing the execution, delivery and performance of this Agreement and the other Loan Documents to which it is a party and the consummation of the transactions contemplated hereby and thereby,
together with specimen signatures of the persons authorized to execute such documents on the Borrower’s and each Guarantor’s behalf, all certified in each instance by its Secretary or Assistant Secretary; 
 (g) the Administrative Agent shall have received for each Lender copies of the certificates of good standing for the Borrower and each
Guarantor (dated no earlier than 30 days prior to the date hereof) from the office of the secretary of the state of its incorporation or organization and of each state in which it is qualified to do business as a foreign corporation or
organization; 
 (h) the Administrative Agent shall have received for each Lender a list of the Borrower’s Authorized
Representatives; 
 (i) the Administrative Agent shall have received the initial fees called for by Section 2.1(c)
hereof; 
 (j) each Lender shall have received such evaluations and certifications as it may reasonably require in order to
satisfy itself as to the value of the Collateral, the financial condition of the Borrower and the Guarantors, and the lack of material contingent liabilities of the Borrower and the Guarantors; 
 (k) the Administrative Agent shall have received financing statement, tax, and judgment lien search results against the Property of the
Borrower and each Guarantor evidencing the absence of Liens on its Property except as permitted by Section 8.8 hereof; 
  

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 (l) the Administrative Agent shall have received for each Lender the favorable written
opinion of counsel to the Borrower and each Guarantor, in form and substance satisfactory to the Administrative Agent; 
 (m)
the Administrative Agent and its counsel shall have reviewed and shall be satisfied with all pending and threatened litigation involving the Borrower and the Guarantors; 
 (n) the Administrative Agent shall have received a Compliance Certificate duly executed by an Authorized Officer of the Borrower
demonstrating that (i) EBITDA for the twelve months ending on September 28, 2006, was not less than $13,000,000; and (ii) the Total Funded Debt/EBITDA Ratio, measured based on Total Funded Debt projected to be outstanding after giving
effect to the initial Credit Extension and EBITDA for the four fiscal quarters ended on September 28, 2006, is less than 1.25 to 1.0; and 
 (o) the Administrative Agent shall have received for the account of the Lenders such other agreements, instruments, documents, certificates, and opinions as the Administrative Agent may reasonably request. 

Section 7.3. Real Property Matters. On or prior to the date fifteen (15) days following the Closing Date: 
 (a) the Administrative Agent shall have received date down endorsements to mortgagee’s title insurance policies (or prepaid binding
commitments therefor) in form and substance acceptable to the Administrative Agent from a title insurance company or companies acceptable to the Administrative Agent in an aggregate amount acceptable to the Administrative Agent insuring the Liens of
the Mortgages (other than with respect to the real property located in New Jersey and Pennsylvania) to be valid first priority Liens subject to no defects or objections which are unacceptable to the Administrative Agent, together with such
endorsements as the Administrative Agent may require; and 
 (b) the Administrative Agent shall have received a record owner
and lien certificate or similar document issued by the title insurance company that issued the mortgagee’s title insurance policy with respect to the real property located in New Jersey and Pennsylvania, which certificate or document shall
evidence no liens, defects or encumbrances which are unacceptable to the Administrative Agent. 
 SECTION 8. COVENANTS. 
 The Borrower agrees that, so long as any credit is available to or in use
by the Borrower hereunder, except to the extent compliance in any case or cases is waived in writing pursuant to the terms of Section 13.13 hereof: 
  

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 Section 8.1. Maintenance of Business. The Borrower shall, and shall cause each Subsidiary to,
preserve and maintain its existence, except as otherwise provided in Section 8.10(ii)(b) hereof. The Borrower shall, and shall cause each Subsidiary to, preserve and keep in force and effect all licenses, permits, franchises, approvals,
patents, trademarks, trade names, trade styles, copyrights, and other proprietary rights necessary to the proper conduct of its business where the failure to do so would reasonably be expected to have a Material Adverse Effect. 
 Section 8.2. Maintenance of Properties. The Borrower shall, and shall cause each Subsidiary to, maintain, preserve, and keep its property,
plant, and equipment in good repair, working order and condition (ordinary wear and tear excepted), and shall from time to time make all needful and proper repairs, renewals, replacements, additions, and betterments thereto so that at all times the
efficiency thereof shall be fully preserved and maintained, except to the extent that, in the reasonable business judgment of such Person, any such Property is no longer necessary for the proper conduct of the business of such Person. 
 Section 8.3. Taxes and Assessments. The Borrower shall duly pay and discharge, and shall cause each Subsidiary to duly pay and discharge, all
taxes, rates, assessments, fees, and governmental charges upon or against it or its Property, in each case before the same become delinquent and before penalties accrue thereon, unless and to the extent that the same are being contested in good
faith and by appropriate proceedings which prevent enforcement of the matter under contest and adequate reserves are provided therefor. 
 Section 8.4. Insurance. The Borrower shall insure and keep insured, and shall cause each Subsidiary to insure and keep insured, with good and responsible insurance companies, all insurable Property owned by it which is of a
character usually insured by Persons similarly situated and operating like Properties against loss or damage from such hazards and risks, and in such amounts, as are insured by Persons similarly situated and operating like Properties; and the
Borrower shall insure, and shall cause each Subsidiary to insure, such other hazards and risks (including, without limitation, business interruption, and employers’ and public liability risks) with good and responsible insurance companies as
and to the extent usually insured by Persons similarly situated and conducting similar businesses. The Borrower shall in any event maintain, and cause each Subsidiary to maintain, insurance on the Collateral to the extent required by the Collateral
Documents. The Borrower shall, upon the request of the Administrative Agent, furnish to the Administrative Agent and the Lenders a certificate setting forth in summary form the nature and extent of the insurance maintained pursuant to this Section.

 Section 8.5. Financial Reports. The Borrower shall, and shall cause each Subsidiary to, maintain a standard system of
accounting in accordance with GAAP and shall furnish to the Administrative Agent, each Lender and each of their duly authorized representatives such information respecting the business and financial condition of the Borrower and each Subsidiary as
the Administrative Agent or such Lender may reasonably request; and without any request, shall furnish to the Administrative Agent and the Lenders: 
 (a) as soon as available, and in any event no later than 45 days after the last day of each fiscal quarter (other than the last fiscal quarter occurring in each fiscal year), 

  

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a copy of the consolidated balance sheet of the Borrower and its Subsidiaries as of the last day of such fiscal quarter and the consolidated statements of
income, retained earnings, and cash flows of the Borrower and its Subsidiaries for the fiscal quarter then ended and for the fiscal year-to-date period then ended, each in reasonable detail showing in comparative form the figures for the
corresponding date and period in the previous fiscal year and a comparison to budget, prepared by the Borrower in accordance with GAAP (subject to the absence of footnote disclosures and year-end audit adjustments) and certified to by its chief
financial officer or another officer of the Borrower acceptable to the Administrative Agent; 
 (b) as soon as available, and
in any event no later than 90 days after the last day of each fiscal year of the Borrower, a copy of the consolidated balance sheet of the Borrower and its Subsidiaries as of the last day of the fiscal year then ended and the consolidated
statements of income, retained earnings, and cash flows of the Borrower and its Subsidiaries for the fiscal year then ended, and accompanying notes thereto, each in reasonable detail showing in comparative form the figures for the previous fiscal
year and a comparison to budget, accompanied in the case of the consolidated financial statements by an unqualified opinion of BDO Seidman LLP or another firm of independent public accountants of recognized national standing, selected by the
Borrower and reasonably satisfactory to the Administrative Agent and the Required Lenders, to the effect that the consolidated financial statements have been prepared in accordance with GAAP and present fairly in accordance with GAAP the
consolidated financial condition of the Borrower and its Subsidiaries as of the close of such fiscal year and the results of their operations and cash flows for the fiscal year then ended and that an examination of such accounts in connection with
such financial statements has been made in accordance with generally accepted auditing standards and, accordingly, such examination included such tests of the accounting records and such other auditing procedures as were considered necessary in the
circumstances; 
 (c) promptly after receipt thereof, any additional written reports, management letters or other detailed
information contained in writing concerning significant aspects of the Borrower’s or any Subsidiary’s operations and financial affairs given to it by its independent public accountants; 
 (d) promptly after the sending or filing thereof, copies of each financial statement, report, notice or proxy statement sent by the
Borrower or any Subsidiary to its stockholders or other equity holders, and copies of each regular, periodic or special report, registration statement or prospectus (including all Form 10-K, Form 10-Q and Form 8-K reports) filed by the Borrower or
any Subsidiary with any securities exchange or the Securities and Exchange Commission or any successor agency; 
 (e) promptly
after receipt thereof, a copy of each Material Written Audit made by any regulatory agency of the books and records of the Borrower or any Subsidiary or of notice of any material noncompliance with any applicable material law, regulation or
guideline relating to the Borrower or any Subsidiary, or its business; 
  

 -46- 

 (f) as soon as available, and in any event no later than 30 days after the start of
each fiscal year of the Borrower, a copy of the Borrower’s consolidated business plan for such fiscal year, such business plan to show the Borrower’s projected consolidated revenues, expenses and balance sheet on a month-by-month basis,
such business plan to be in reasonable detail prepared by the Borrower and in form satisfactory to the Administrative Agent and the Required Lenders (which shall include a summary of all assumptions made in preparing such business plan); 

(g) notice of any Change of Control; 
 (h) promptly after knowledge thereof shall have come to the attention of any Responsible Officer of the Borrower, written notice of (i) any threatened or pending litigation or governmental or arbitration
proceeding or labor controversy against the Borrower or any Subsidiary or any of their Property which, if adversely determined, could reasonably be expected to have a Material Adverse Effect or (ii) the occurrence of any Default or Event of
Default hereunder; and 
 (i) with each of the financial statements furnished to the Lenders pursuant to subsections (a)
and (b) above, a written certificate in the form attached hereto as Exhibit E (a “Compliance Certificate”) signed by the chief financial officer of the Borrower or another officer of the Borrower acceptable to the
Administrative Agent to the effect that to the best of such officer’s knowledge and belief no Default or Event of Default has occurred during the period covered by such statements or, if any such Default or Event of Default has occurred during
such period, setting forth a description of such Default or Event of Default and specifying the action, if any, taken by the Borrower or any Subsidiary to remedy the same. Such certificate shall also set forth the calculations supporting such
statements in respect of Section 8.21 hereof. 
 The financial statements delivered pursuant to subsections (a) and (b) above shall, among
other things, reflect all contingent liabilities of the Borrower or any Subsidiary existing at the end of the relevant period covered thereby which are material to the Borrower or any Subsidiary. 
 Section 8.6. Inspection. The Borrower shall, and shall cause each Subsidiary to, permit the Administrative Agent, each Lender, and each of
their duly authorized representatives and agents to visit and inspect any of its Property, corporate books, and financial records, to examine and make copies of its books of accounts and other financial records, and to discuss its affairs, finances,
and accounts with, and to be advised as to the same by, its officers, employees and independent public accountants (and by this provision the Borrower hereby authorizes such accountants to discuss with the Administrative Agent and such Lenders the
finances and affairs of the Borrower and its Subsidiaries) at such reasonable times and intervals as the Administrative Agent or any such Lender may designate provided that such inspections shall not unreasonably interfere with the conduct of the
Borrower’s or any Subsidiary’s business and, so long as no Default or Event of Default exists, with reasonable prior notice to the Borrower. The Borrower shall be required to reimburse the Administrative Agent and each Lender for
out-of-pocket costs incurred in connection with each such inspection; provided, however, that prior to the occurrence of an Event of Default hereunder, the Borrower shall only be required to reimburse the Administrative Agent and the Lenders
for two (2) such inspections per calendar year. 
  

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 Section 8.7. Borrowings and Guaranties. The Borrower shall not, nor shall it permit any
Subsidiary to, issue, incur, assume, create or have outstanding any Indebtedness for Borrowed Money, or be or become liable as endorser, guarantor, surety or otherwise for any debt, obligation or undertaking of any other Person, or otherwise agree
to provide funds for payment of the obligations of another, or supply funds thereto or invest therein or otherwise assure a creditor of another against loss, or apply for or become liable to the issuer of a letter of credit which supports an
obligation of another, or subordinate any claim or demand it may have to the claim or demand of any other Person; provided, however, that the foregoing shall not restrict nor operate to prevent: 
 (a) the Obligations, Hedging Liability, and Funds Transfer and Deposit Account Liability of the Borrower and its Subsidiaries owing to the
Administrative Agent and the Lenders (and their Affiliates); 
 (b) purchase money indebtedness and Capitalized Lease
Obligations of the Borrower and its Subsidiaries in an amount not to exceed $5,000,000 in the aggregate at any one time outstanding; 
 (c) endorsement of items for deposit or collection of commercial paper received in the ordinary course of business; 
 (d) intercompany advances from time to time owing by any Subsidiary which is a Guarantor to the Borrower or another Subsidiary which is a Guarantor or by the Borrower to a Subsidiary which is a Guarantor in the ordinary course of business;

 (e) the guaranties described in Schedule 8.7 and outstanding on the Closing Date, together with additional guaranties
entered into for similar purposes and reasonably acceptable in form, substance and amount to the Administrative Agent; and 
 (f) unsecured indebtedness of the Borrower and its Subsidiaries not otherwise permitted by this Section in an amount not to exceed $1,000,000 in the aggregate at any one time outstanding. 
 (g) indebtedness on account of earnout payments or seller notes incurred in connection with a Permitted Acquisition, provided that
such indebtedness is unsecured and the aggregate outstanding amount of such indebtedness shall not exceed $2,000,000 at any time; and 
 (h) guaranty obligations incurred in the ordinary course of business by the Borrower or any of its Subsidiaries of (i) obligations of the Borrower or any Subsidiary or (ii) any Indebtedness for Borrowed
Money of the Borrower or any of its Subsidiaries permitted under this Section 8.7. 
  

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 Section 8.8. Liens . The Borrower shall not, nor shall it permit any Subsidiary to, create,
incur or permit to exist any Lien of any kind on any Property owned by any such Person; provided, however, that the foregoing shall not apply to nor operate to prevent: 
 (a) Liens arising by statute in connection with worker’s compensation, unemployment insurance, old age benefits, social security
obligations, taxes, assessments, statutory obligations or other similar charges (other than Liens arising under ERISA), good faith cash deposits in connection with tenders, contracts or leases to which the Borrower or any Subsidiary is a party or
other cash deposits required to be made in the ordinary course of business, provided in each case that the obligation is not for borrowed money and that the obligation secured is not overdue or, if overdue, is being contested in good faith by
appropriate proceedings which prevent enforcement of the matter under contest and adequate reserves have been established therefor; 
 (b) mechanics’, workmen’s, materialmen’s, landlords’, carriers’ or other similar Liens arising in the ordinary course of business with respect to obligations which are not due or which are being contested in good
faith by appropriate proceedings which prevent enforcement of the matter under contest; 
 (c) judgment liens and judicial
attachment liens not constituting an Event of Default under Section 9.1(g) hereof and the pledge of assets for the purpose of securing an appeal, stay or discharge in the course of any legal proceeding, provided that the aggregate amount of
such judgment liens and attachments and liabilities of the Borrower and its Subsidiaries secured by a pledge of assets permitted under this subsection, including interest and penalties thereon, if any, shall not be in excess of $500,000 at any one
time outstanding; 
 (d) Liens on equipment of the Borrower or any Subsidiary created solely for the purpose of securing
indebtedness permitted by Section 8.7(b) hereof, representing or incurred to finance the purchase price of such Property, provided that no such Lien shall extend to or cover other Property of the Borrower or such Subsidiary other than the
respective Property so acquired, and the principal amount of indebtedness secured by any such Lien shall at no time exceed the purchase price of such Property, as reduced by repayments of principal thereon; 
 (e) any interest or title of a lessor under any operating lease; 
 (f) easements, rights-of-way, restrictions, and other similar encumbrances against real property incurred in the ordinary course of
business which, in the aggregate, are not substantial in amount and which do not materially detract from the value of the Property subject thereto or materially interfere with the ordinary conduct of the business of the Borrower or any Subsidiary
and all encumbrances reflected on Schedule B of those policies of title insurance provided to the Administrative Agent in connection with the Mortgages; 
  

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 (g) Liens granted in favor of Kings Grant Shops, LLC in certain Property of the Borrower
and its Subsidiaries listed on Exhibit “A” to a UCC-1 filing dated June 20, 2001 with the County Clerk of Burlington County, New Jersey; 
 (h) Liens granted in favor of the Administrative Agent pursuant to the Collateral Documents; and 
 (i) liens for taxes not yet due or which are being contested in compliance with Section 6.12. 
 Section 8.9.
Investments, Acquisitions, Loans and Advances. The Borrower shall not, nor shall it permit any Subsidiary to, directly or indirectly, make, retain or have outstanding any investments (whether through purchase of stock or obligations or
otherwise) in, or loans or advances to (other than for travel advances and other similar cash advances made to employees in the ordinary course of business), any other Person, or acquire all or any substantial part of the assets or business of any
other Person or division thereof; provided, however, that the foregoing shall not apply to nor operate to prevent: 
 (a) investments in direct obligations of the United States of America or of any agency or instrumentality thereof whose obligations constitute full faith and credit obligations of the United States of America, provided that any such
obligations shall mature within one year of the date of issuance thereof; 
 (b) investments in commercial paper rated at
least P-1 by Moody’s and at least A-1 by S&P maturing within one year of the date of issuance thereof; 
 (c)
investments in certificates of deposit issued by any Lender or by any United States commercial bank having capital and surplus of not less than $100,000,000 which have a maturity of one year or less; 
 (d) investments in repurchase obligations with a term of not more than 7 days for underlying securities of the types described in
subsection (a) above entered into with any bank meeting the qualifications specified in subsection (c) above, provided all such agreements require physical delivery of the securities securing such repurchase agreement, except those
delivered through the Federal Reserve Book Entry System; 
 (e) investments in money market funds that invest solely, and
which are restricted by their respective charters to invest solely, in investments of the type described in the immediately preceding subsections (a), (b), (c), and (d) above; 
 (f) the Borrower’s and its Subsidiaries’ investments existing on the Closing Date in their Subsidiaries which are not
Guarantors, and the Borrower’s investments from time to time in its Subsidiaries which are Guarantors, and investments made from time to time by a Subsidiary in or more of its Subsidiaries which are Guarantors; 
  

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 (g) intercompany advances made from time to time by the Borrower or a Subsidiary to
another Subsidiary which is a Guarantor or by a Subsidiary to the Borrower in the ordinary course of business; 
 (h) the
Borrower’s existing investment on the Closing Date in (x) convertible debt of Total Education Solutions, Inc. (“TES”) in an original aggregate principal amount of $2,500,000, together with an equity investment arising from
the exercise of warrants currently held by the Borrower for the issuance of 10,000 shares of common stock of TES, provided that the consideration tendered by the Borrower for the exercise of such warrants shall not exceed $100 in the
aggregate; (y) warrants purchased by the Borrower for $75,000 to purchase 0.9% of common stock of TES and (z) the Borrower’s purchase of outstanding indebtedness owing by TES in the outstanding principal amount of $1,000,000 pursuant
to that certain Promissory Note dated as of January 17, 2003 for total consideration not in excess of $200,000; 
 (i)
Permitted Acquisitions; 
 (j) investments received in connection with the bankruptcy or reorganization of, or settlement of
delinquent accounts and disputes with, customers and suppliers, in each case, in the ordinary course of business; 
 (k)
investments by the Borrower or any Subsidiary made in connection with any cash management agreement with any Lender or Affiliate thereof; 
 (l) trade credit extended by the Borrower or any Subsidiary on usual and customary terms in the ordinary course of business; 
 (m) the Philadelphia School Loan in an aggregate principal amount not to exceed $1,200,000; and 
 (n) other investments, loans, and advances in addition to those otherwise permitted by this Section in an amount not to exceed $200,000 in
the aggregate at any one time outstanding. 
 In determining the amount of investments, acquisitions, loans, and advances permitted under this Section,
investments and acquisitions shall always be taken at the original cost thereof (regardless of any subsequent appreciation or depreciation therein), and loans and advances shall be taken at the principal amount thereof then remaining unpaid.

 Section 8.10. Mergers, Consolidations and Sales. The Borrower shall not, nor shall it permit any Subsidiary to, be a party to
any merger or consolidation, or sell, transfer, lease or otherwise dispose of all or any part of its Property, including any disposition of Property as part of a sale and leaseback transaction, or in any event sell or discount (with or without
recourse) any of its notes or accounts receivable; provided, however, that (i) this Section shall not apply to nor operate to prevent the sale or lease of inventory in the ordinary course of business, and (ii) so 

  

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long as no Default or Event of Default exists (except as otherwise permitted by the Security Agreement) this Section shall not apply to nor operate to
prevent: 
 (a) the sale, transfer, lease or other disposition of Property of the Borrower and its Subsidiaries which are
Guarantors to one another in the ordinary course of its business; 
 (b) the merger of any Subsidiary with and into the
Borrower or any other Subsidiary which is a Guarantor, provided that, (i) in the case of any merger involving the Borrower, the Borrower is the corporation surviving the merger, and (ii) no Subsidiary may merge into a Subsidiary
which is not a Wholly-owned Subsidiary; 
 (c) the sale of delinquent notes or accounts receivable in the ordinary course of
business for purposes of collection only (and not for the purpose of any bulk sale or securitization transaction); 
 (d) the
sale, transfer or other disposition of any tangible personal property that, in the reasonable business judgment of the Borrower or its Subsidiary, has become obsolete or worn out, and which is disposed of in the ordinary course of business;

 (e) Permitted Acquisitions; 
 (f) the sale, transfer or other disposition of any real property that is listed on Schedule 8.10 hereto; 
 (g) the sale, transfer, lease or other disposition of Property of the Borrower or any Subsidiary (excluding any disposition of Property as part of a sale and leaseback transaction) aggregating for the Borrower and its
Subsidiaries not more than $500,000 during any fiscal year of the Borrower; and 
 (h) dispositions of Property constituting
real estate as part of a sale and leaseback transaction aggregating for the Borrower and its Subsidiaries not in excess of (i) $3,000,000 during any fiscal year and (ii) $6,000,000 during the term of this Agreement. 
 Section 8.11. Maintenance of Subsidiaries. The Borrower shall not assign, sell or transfer, nor shall it permit any Subsidiary to issue,
assign, sell or transfer, any shares of capital stock or other equity interests of a Subsidiary; provided, however, that the foregoing shall not operate to prevent (a) Liens on the capital stock or other equity interests of Subsidiaries
granted to the Administrative Agent pursuant to the Collateral Documents, (b) the issuance, sale, and transfer to any person of any shares of capital stock of a Subsidiary solely for the purpose of qualifying, and to the extent legally
necessary to qualify, such person as a director of such Subsidiary, and (c) any transaction permitted by Section 8.10(ii)(b) above. 
 Section 8.12. Dividends and Certain Other Restricted Payments. The Borrower shall not, nor shall it permit any Subsidiary to, (a) declare or pay any dividends on or make any other 

  

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distributions in respect of any class or series of its capital stock or other equity interests or (b) directly or indirectly purchase, redeem, or
otherwise acquire or retire any of its capital stock or other equity interests or any warrants (including, without limitation, those Warrants issued pursuant to, and as defined in, that Investment Agreement dated as of June 30, 1998, as amended
by a First Amendment thereto dated as of May 24, 2001), options, or similar instruments to acquire the same; provided, however, that the foregoing shall not operate to prevent (i) the making of dividends or distributions by any
Subsidiary to the Borrower or any Subsidiary, (ii) provided that (x) no Default or Event of Default exists before or after giving effect thereto, and (y) the Borrower’s Fixed Charge Coverage Ratio would have been 1.30 to 1.0 or
greater as of the end of its most recently ended fiscal quarter if such dividend had been made on the last day of such fiscal quarter, the payment of cash dividends on the Borrower’s Series E and F Preferred Stock at a rate not exceeding
the rate in effect on the Closing Date, and in any event not to exceed $550,000 in the aggregate during any fiscal year, (iii) the making of dividends or distributions by the Borrower on any series of its preferred stock solely in the form of
the issuance of additional shares of such series of preferred stock, or (iv) the acceptance by the Borrower of shares of its capital stock (or all or any portion off a warrant to purchase shares of its capital stock) in satisfaction of the
exercise price of any warrant to acquire its shares. 
 Section 8.13. ERISA. The Borrower shall, and shall cause each Subsidiary
to, promptly pay and discharge all obligations and liabilities arising under ERISA of a character which if unpaid or unperformed could reasonably be expected to result in the imposition of a Lien against any of its Property. The Borrower shall, and
shall cause each Subsidiary to, promptly notify the Administrative Agent and each Lender of: (a) the occurrence of any reportable event (as defined in ERISA) with respect to a Plan, (b) receipt of any notice from the PBGC of its intention
to seek termination of any Plan or appointment of a trustee therefor, (c) its intention to terminate or withdraw from any Plan, and (d) the occurrence of any event with respect to any Plan which would result in the incurrence by the
Borrower or any Subsidiary of any material liability, fine or penalty, or any material increase in the contingent liability of the Borrower or any Subsidiary with respect to any post-retirement Welfare Plan benefit. 
 Section 8.14. Compliance with Laws. (a) The Borrower shall, and shall cause each Subsidiary to, comply in all respects with the
requirements of all federal, state, and local laws, rules, regulations, ordinances and orders applicable to or pertaining to its Property or business operations, where any such non-compliance, individually or in the aggregate, would reasonably be
expected to have a Material Adverse Effect or result in a Lien upon any of its Property. 
 (b) Without limiting the agreements set forth in
Section 8.14(a) above, the Borrower shall, and shall cause each Subsidiary to, at all times, do the following to the extent the failure to do so, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect:
(i) comply in all material respects with, and maintain each of the Premises in compliance in all material respects with, all applicable Environmental Laws; (ii) require that each tenant and subtenant, if any, of any of the Premises or any
part thereof comply in all material respects with all Environmental Laws applicable to such Premises or part thereof; (iii) obtain and maintain in full force and effect all material governmental approvals required by any applicable
Environmental Law for operations at each of the Premises; (iv) cure any material violation by it or at any of the Premises of Environmental Laws applicable to such Premises or any part thereof; 

  

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(v) not allow the presence or operation at any of the Premises of any (1) landfill or dump or (2) hazardous waste management facility or solid
waste disposal facility as defined pursuant to RCRA or any comparable state law; (vi) not manufacture, use, generate, transport, treat, store, release, dispose or handle any Hazardous Material at any of the Premises except in the ordinary
course of its business and in de minimis amounts; (vii) within 10 Business Days notify the Administrative Agent in writing of and provide any reasonably requested documents upon learning of any of the following in connection with
the Borrower or any Subsidiary or any of the Premises: (1) any material liability for response or corrective action, natural resource damage or other harm pursuant to CERCLA, RCRA or any comparable state law; (2) any material Environmental
Claim; (3) any material violation of an Environmental Law or material Release, threatened Release or disposal of a Hazardous Material; (4) any restriction on the ownership, occupancy, use or transferability arising pursuant to any
(x) Release, threatened Release or disposal of a Hazardous Material or (y) Environmental Law; or (5) any environmental, natural resource, health or safety condition, which could reasonably be expected to have a Material Adverse
Effect; (viii) conduct at its expense any investigation, study, sampling, testing, abatement, cleanup, removal, remediation or other response action necessary to remove, remediate, clean up or abate any material Release, threatened Release or
disposal of a Hazardous Material as required by any applicable Environmental Law, (ix) abide by and observe any restrictions on the use of the Premises imposed by any governmental authority as set forth in a deed or other instrument affecting
the Borrower’s or any Subsidiary’s interest therein; (x) promptly provide or otherwise make available to the Administrative Agent any reasonably requested environmental record concerning the Premises which the Borrower or any
Subsidiary possesses or can reasonably obtain; and (xi) perform, satisfy, and implement any operation or maintenance actions required by any governmental authority or Environmental Law, or included in any no further action letter or covenant
not to sue issued by any governmental authority under any Environmental Law. 
 Section 8.15. Burdensome Contracts With Affiliates.
Except for the contracts, agreements or arrangements described on Schedule 6.14 hereto, the Borrower shall not, nor shall it permit any Subsidiary to, enter into any contract, agreement or business arrangement with any of its Affiliates (other
than with the Borrower or a Wholly-owned Subsidiaries) on terms and conditions which are less favorable to the Borrower or such Subsidiary than would be usual and customary in similar contracts, agreements or business arrangements between Persons
not affiliated with each other, except for compensation agreements with officers and directors approved by the compensation committee or audit committee of the Borrower’s board of directors (or any other committee of the Borrower’s board
of directors comprised entirely of independent directors). 
 Section 8.16. No Changes in Fiscal Year. The fiscal
year of the Borrower and its Subsidiaries ends on or about June 30 of each year; and the Borrower shall not, nor shall it permit any Subsidiary to, change its fiscal year or the corresponding fiscal quarters from their present basis.

 Section 8.17. Formation of Subsidiaries. Promptly upon the formation or acquisition of any Subsidiary, the Borrower shall
provide the Administrative Agent and the Lenders notice thereof and timely comply with the requirements of Section 4 hereof (at which time Schedule 6.2 

  

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shall be deemed amended to include reference to such Subsidiary). Except for Foreign Subsidiaries existing on the Closing Date and identified on
Schedule 6.2 hereof, the Borrower shall not, nor shall it permit any Subsidiary to, form or acquire any Foreign Subsidiary. 
 Section 8.18. Change in the Nature of Business. The Borrower shall not, nor shall it permit any Subsidiary to, engage in any business or activity if as a result the general nature of the business of the Borrower or any
Subsidiary would be changed in any material respect from the general nature of the business engaged in by it as of the Closing Date provided, however, that the Borrower may engage in any business or activity conducted by a Subsidiary as of
the Closing Date following any merger of such Subsidiary into the Borrower pursuant to Section 8.10(b)). 
 Section 8.19. Use of
Proceeds. The Borrower shall use the credit extended under this Agreement solely for the purposes set forth in, or otherwise permitted by, Section 6.4 hereof. 
 Section 8.20. No Restrictions. Except as provided herein, the Borrower shall not, nor shall it permit any Subsidiary to, directly or indirectly create or otherwise cause or suffer to exist or become
effective any consensual encumbrance or restriction of any kind on the ability of the Borrower or any Subsidiary to: (a) pay dividends or make any other distribution on any Subsidiary’s capital stock or other equity interests owned by the
Borrower or any other Subsidiary, (b) pay any indebtedness owed to the Borrower or any other Subsidiary, (c) make loans or advances to the Borrower or any other Subsidiary, (d) transfer any of its Property to the Borrower or any other
Subsidiary (other than any such restriction in a Capital Lease restricting the transfer of the property leased by the Borrower or such Subsidiary thereunder) or (e) guarantee the Obligations and/or grant Liens on its assets to the
Administrative Agent as required by the Loan Documents. 
  

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 Section 8.21. Financial Covenants. (a) Total Funded Debt/EBITDA Ratio. The
Borrower shall not, as of the last day of each fiscal quarter of the Borrower ending during the periods set forth below, permit the Total Funded Debt/EBITDA Ratio to be greater than the corresponding ratio set forth opposite such period: 

 

			
	 FOUR FISCAL QUARTER PERIODS
ENDING ON OR ABOUT
	  	TOTAL FUNDED DEBT/EBITDA
RATIO SHALL NOT BE
GREATER
THAN:
	 Closing Date through December 31, 2008
	  	3.00 to 1.0
	 January 1, 2009 through December 31, 2009
	  	2.75 to 1.0
	 January 1, 2010 and at all times thereafter
	  	2.50 to 1.0

 (b) Minimum EBITDA. The Borrower shall not, as of the last day of each fiscal quarter of
the Borrower ending during the periods set forth below, permit EBITDA for the four fiscal quarters of the Borrower ending on such day to be less than the corresponding amount set forth opposite such day: 
  

				
	 FOUR FISCAL QUARTER PERIODS
ENDING ON OR ABOUT
	  	MINIMUM FOUR FISCAL
QUARTER
EBITDA
	 October 1, 2006 through March 31, 2007
	  	$	13,000,000
	 April 1, 2007 through March 31, 2008
	  	$	14,000,000
	 April 1, 2008 through March 31, 2009
	  	$	15,500,000
	 April 1, 2009 and at all times thereafter
	  	$	17,000,000

 provided, however, that the minimum EBITDA requirements set forth above for each period ending on or after
the date of a Permitted Acquisition (excluding the Discovery Acquisition) shall increase by an amount equal to 75% of the historical EBITDA of the Acquired Business for the most recent four fiscal quarter period of the Acquired Business ended on or
prior to the date of such Permitted Acquisition to the extent such historical EBITDA is included in the calculation of EBITDA to give effect to such Permitted Acquisition including after giving effect to any cash or non-cash adjustments thereto
consented to by the Required Lenders. 
 (c) Fixed Charge Coverage Ratio. As of the last day of each fiscal
quarter of the Borrower, the Borrower shall maintain a ratio of (a) EBITDA for the four fiscal quarters of the Borrower then ended, less Net Capital Expenditures for such four fiscal quarters, to (b) Fixed Charges for the same four fiscal
quarters then ended of not less than 1.25 to 1.0. 
  

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 (d) Capital Expenditures. The Borrower shall not, nor shall it permit any of its Subsidiaries to,
incur Capital Expenditures (net of any such Capital Expenditures to the extent financed from the Net Cash Proceeds of an Event of Loss) in an amount in excess, during any fiscal year of the Borrower, of $8,000,000. Notwithstanding the foregoing, up
to 50% of the unused portion of the Capital Expenditures allowance for any fiscal year may be carried over to the immediately succeeding fiscal year only to be used in such succeeding fiscal year after all of the Capital Expenditures allowance for
that fiscal year has been used. 
 SECTION 9. EVENTS OF
DEFAULT AND REMEDIES. 
 Section 9.1. Events of Default. Any one or more of the
following shall constitute an “Event of Default” hereunder: 
 (a) default in the payment when due of all or
any part of the principal of any Loan (whether at the stated maturity thereof or at any other time provided for in this Agreement) or of any Reimbursement Obligation or default for a period of 5 Business Days in the payment when due of any
interest, fee, or other Obligation payable hereunder or under any other Loan Document; 
 (b) default in the observance or
performance of any covenant set forth in Section 8.1, 8.5, 8.7, 8.8, 8.9, 8.10, 8.11, 8.12, 8.16, 8.19, 8.20 or 8.21 hereof or of any provision in any Loan Document dealing with the use, disposition or remittance of the proceeds of Collateral
or requiring the maintenance of insurance thereon; 
 (c) default in the observance or performance of any other provision
hereof or of any other Loan Document which is not remedied within 30 days after the earlier of (i) the date on which such failure shall first become known to any Responsible Officer of the Borrower or (ii) written notice thereof is
given to the Borrower by the Administrative Agent; 
 (d) any representation or warranty made herein or in any other Loan
Document or in any certificate furnished to the Administrative Agent or the Lenders pursuant hereto or thereto or in connection with any transaction contemplated hereby or thereby proves untrue in any material respect as of the date of the issuance
or making or deemed making thereof; 
 (e) any event occurs or condition exists (other than those described in
subsections (a) through (d) above) which is specified as an event of default under any of the other Loan Documents, or any of the Loan Documents shall for any reason not be or shall cease to be in full force and effect or is declared to be
null and void, or any of the Collateral Documents shall for any reason fail to create a valid and perfected first priority Lien in favor of the Administrative Agent in any Collateral purported to be covered thereby except as expressly permitted by
the terms thereof, or any Guarantor takes any action for the purpose of terminating, repudiating or rescinding any Loan Document executed by it or any of its obligations thereunder; 
  

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 (f) any default shall occur under any Indebtedness for Borrowed Money issued, assumed or
guaranteed by the Borrower or any Subsidiary aggregating in excess of $500,000, or under any indenture, agreement or other instrument under which the same may be issued, and such default or change in control shall continue for a period of time
sufficient to permit the acceleration of the maturity of, or to allow the holder thereof to require the Borrower to repay or repurchase, any such Indebtedness for Borrowed Money (whether or not such maturity is in fact accelerated), or any such
Indebtedness for Borrowed Money shall not be paid when due (whether by demand, lapse of time, acceleration or otherwise) and any applicable grace periods for such nonpayment provided for in such documents shall have expired; 
 (g) any money judgment or judgments (other than a money judgment covered by insurance as to which the insurance company has not disclaimed
or reserved the right to disclaim coverage), writ or writs or warrant or warrants of attachment, or any similar process or processes, shall be entered or filed against the Borrower or any Guarantor, or against any of its Property, in an aggregate
amount in excess of $500,000, and which remains undischarged, unvacated, unbonded or unstayed for a period of 30 days; 
 (h) the Borrower or any Subsidiary, or any member of its Controlled Group, shall fail to pay when due an amount or amounts aggregating in excess of $500,000 which it shall have become liable to pay to the PBGC or to a Plan under
Title IV of ERISA; or notice of intent to terminate a Plan or Plans having aggregate Unfunded Vested Liabilities in excess of $500,000 (collectively, a “Material Plan”) shall be filed under Title IV of ERISA by the
Borrower or any Subsidiary, or any other member of its Controlled Group, any plan administrator or any combination of the foregoing; or the PBGC shall institute proceedings under Title IV of ERISA to terminate or to cause a trustee to be
appointed to administer any Material Plan or a proceeding shall be instituted by a fiduciary of any Material Plan against the Borrower or any Subsidiary, or any member of its Controlled Group, to enforce Section 515 or 4219(c)(5) of ERISA and
such proceeding shall not have been dismissed within 30 days thereafter; or a condition shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating that any Material Plan must be terminated; 
 (i) any Change of Control shall have occurred; 
 (j) the Borrower or any Guarantor shall (i) have entered involuntarily against it an order for relief under the United States
Bankruptcy Code, as amended, (ii) not pay, or admit in writing its inability to pay, its debts generally as they become due, (iii) make an assignment for the benefit of creditors, (iv) apply for, seek, consent to or acquiesce in, the
appointment of a receiver, custodian, trustee, examiner, liquidator or similar official for it or any substantial part of its Property, (v) institute any proceeding seeking to have entered against it an order for relief under the United States
Bankruptcy Code, as amended, to adjudicate it insolvent, or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or
relief of debtors or fail to file an answer or other pleading denying the material allegations of any such proceeding filed 

  

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against it, (vi) take any corporate action in furtherance of any matter described in parts (i) through (v) above, or (vii) fail to
contest in good faith any appointment or proceeding described in Section 9.1(k) hereof; or 
 (k) a custodian, receiver,
trustee, examiner, liquidator or similar official shall be appointed for the Borrower or any Guarantor, or any substantial part of any of its Property, or a proceeding described in Section 9.1(j)(v) shall be instituted against the Borrower or
any Guarantor, and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period of 60 days. 
 Section 9.2. Non-Bankruptcy Defaults. When any Event of Default other than those described in subsection (j) or (k) of Section 9.1 hereof has occurred and is continuing, the Administrative Agent shall, by written
notice to the Borrower: (a) if so directed by the Required Lenders, terminate the remaining Revolving Credit Commitments and all other obligations of the Lenders hereunder on the date stated in such notice (which may be the date thereof);
(b) if so directed by the Required Lenders, declare the principal of and the accrued interest on all outstanding Loans to be forthwith due and payable and thereupon all outstanding Loans, including both principal and interest thereon, shall be
and become immediately due and payable together with all other amounts payable under the Loan Documents without further demand, presentment, protest or notice of any kind; and (c) if so directed by the Required Lenders, demand that the Borrower
immediately prepay to the Administrative Agent the full amount then available for drawing under each or any Letter of Credit, and the Borrower agrees to immediately make such payment and acknowledges and agrees that the Lenders would not have an
adequate remedy at law for failure by the Borrower to honor any such demand and that the Administrative Agent, for the benefit of the Lenders, shall have the right to require the Borrower to specifically perform such undertaking whether or not any
drawings or other demands for payment have been made under any Letter of Credit. The Administrative Agent, after giving notice to the Borrower pursuant to Section 9.1(c) or this Section 9.2, shall also promptly send a copy of such notice
to the other Lenders, but the failure to do so shall not impair or annul the effect of such notice. 
 Section 9.3. Bankruptcy
Defaults. When any Event of Default described in subsections (j) or (k) of Section 9.1 hereof has occurred and is continuing, then all outstanding Loans shall immediately become due and payable together with all other amounts
payable under the Loan Documents without presentment, demand, protest or notice of any kind, the obligation of the Lenders to extend further credit pursuant to any of the terms hereof shall immediately terminate and the Borrower shall immediately
prepay to the Administrative Agent the full amount then available for drawing under all outstanding Letters of Credit, the Borrower acknowledging and agreeing that the Lenders would not have an adequate remedy at law for failure by the Borrower to
honor any such demand and that the Lenders, and the Administrative Agent on their behalf, shall have the right to require the Borrower to specifically perform such undertaking whether or not any draws or other demands for payment have been made
under any of the Letters of Credit. 
 Section 9.4. Collateral for Undrawn Letters of Credit. (a) If the prepayment of the
amount available for drawing under any or all outstanding Letters of Credit is required under Section 1.8(b) or under Section 9.2 or 9.3 above, the Borrower shall forthwith pay the amount required to be so prepaid, to be held by the
Administrative Agent as provided in subsection (b) below. 
  

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 (b) All amounts prepaid pursuant to subsection (a) above shall be held by the Administrative
Agent in one or more separate collateral accounts (each such account, and the credit balances, properties, and any investments from time to time held therein, and any substitutions for such account, any certificate of deposit or other instrument
evidencing any of the foregoing and all proceeds of and earnings on any of the foregoing being collectively called the “Collateral Account”) as security for, and for application by the Administrative Agent (to the
extent available) to, the reimbursement of any payment under any Letter of Credit then or thereafter made by the Administrative Agent, and to the payment of the unpaid balance of all other Obligations (and to all Hedging Liability and Funds Transfer
and Deposit Account Liability). The Collateral Account shall be held in the name of and subject to the exclusive dominion and control of the Administrative Agent for the benefit of the Administrative Agent, the Lenders, and the L/C Issuer. If and
when requested by the Borrower, the Administrative Agent shall invest funds held in the Collateral Account from time to time in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the
United States of America with a remaining maturity of one year or less, provided that the Administrative Agent is irrevocably authorized to sell investments held in the Collateral Account when and as required to make payments
out of the Collateral Account for application to amounts due and owing from the Borrower to the L/C Issuer, the Administrative Agent or the Lenders; provided, however, that if (i) the Borrower shall have made payment of all
such obligations referred to in subsection (a) above, (ii) no other Obligations remain due and unpaid hereunder and (iii) any Letter of Credit with respect to which the Borrower has prepaid or cash collateralized its obligations with
respect thereto shall terminate or the stated amount thereof shall be reduced, then the Administrative Agent shall release to the Borrower from the Collateral Account that amount of the funds contained therein which exceeds the aggregate stated
amount of all Letters of Credit remaining outstanding after giving effect to such termination or reduction. 
 Section 9.5.
Notice of Default. The Administrative Agent shall give notice to the Borrower under Section 9.1(c) hereof promptly upon being requested to do so by any Lender and shall thereupon notify all the Lenders thereof. 
 Section 9.6. Expenses. The Borrower agrees to pay to the Administrative Agent and each Lender, and any other holder of any Note outstanding
hereunder, all costs and expenses reasonably incurred or paid by the Administrative Agent and such Lender or any such holder, including reasonable attorneys’ fees and court costs, in connection with any Default or Event of Default hereunder or
in connection with the enforcement of any of the Loan Documents (including all such costs and expenses incurred in connection with any proceeding under the United States Bankruptcy Code involving the Borrower or any Subsidiary as a debtor
thereunder). 
 SECTION 10. CHANGE IN CIRCUMSTANCES.

 Section 10.1. Change of Law. Notwithstanding any other provisions of this Agreement or any other Loan Document, if at any time
any change in applicable law or regulation or in the 

  

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interpretation thereof makes it unlawful for any Lender to make or continue to maintain any Eurodollar Loans or to perform its obligations as contemplated
hereby, such Lender shall promptly give notice thereof to the Borrower and such Lender’s obligations to make or maintain Eurodollar Loans under this Agreement shall be suspended until it is no longer unlawful for such Lender to make or maintain
Eurodollar Loans. The Borrower shall prepay on demand the outstanding principal amount of any such affected Eurodollar Loans, together with all interest accrued thereon and all other amounts then due and payable to such Lender under this Agreement;
provided, however, subject to all of the terms and conditions of this Agreement, the Borrower may then elect to borrow the principal amount of the affected Eurodollar Loans from such Lender by means of Base Rate Loans from such Lender, which
Base Rate Loans shall not be made ratably by the Lenders but only from such affected Lender. 
 Section 10.2. Unavailability of
Deposits or Inability to Ascertain, or Inadequacy of, LIBOR. If on or prior to the first day of any Interest Period for any Borrowing of Eurodollar Loans: 
 (a) the Administrative Agent determines that deposits in U.S. Dollars (in the applicable amounts) are not being offered to it in the
interbank eurodollar market for such Interest Period, or that by reason of circumstances affecting the interbank eurodollar market adequate and reasonable means do not exist for ascertaining the applicable LIBOR, or 
 (b) the Required Lenders advise the Administrative Agent that (i) LIBOR as determined by the Administrative Agent will not adequately
and fairly reflect the cost to such Lenders of funding their Eurodollar Loans for such Interest Period or (ii) that the making or funding of Eurodollar Loans become impracticable, 
 then the Administrative Agent shall forthwith give notice thereof to the Borrower and the Lenders, whereupon until the Administrative Agent notifies the Borrower that the circumstances giving rise to such suspension
no longer exist, the obligations of the Lenders to make Eurodollar Loans shall be suspended. 
 Section 10.3. Increased Cost and
Reduced Return. (a) If, on or after the date hereof, the adoption of any applicable law, rule or regulation, or any change therein, or any change in the interpretation or administration thereof by any governmental authority, central bank or
comparable agency charged with the interpretation or administration thereof, or compliance by any Lender (or its Lending Office) with any request or directive (whether or not having the force of law) of any such authority, central bank or comparable
agency: 
 (i) shall subject any Lender (or its Lending Office) to any tax, duty or other charge with respect to its
Eurodollar Loans, its Notes, its Letter(s) of Credit, or its participation in any thereof, any Reimbursement Obligations owed to it or its obligation to make Eurodollar Loans, issue a Letter of Credit, or to participate therein, or shall change the
basis of taxation of payments to any Lender (or its Lending Office) of the principal of or interest on its Eurodollar Loans, Letter(s) of Credit, or participations therein or any other amounts due under this Agreement or any other Loan Document in

  

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respect of its Eurodollar Loans, Letter(s) of Credit, any participation therein, any Reimbursement Obligations owed to it, or its obligation to make
Eurodollar Loans, or issue a Letter of Credit, or acquire participations therein (except for changes in the rate of tax on the overall net income of such Lender or its Lending Office imposed by the jurisdiction in which such Lender’s principal
executive office or Lending Office is located); or 
 (ii) shall impose, modify or deem applicable any reserve, special
deposit or similar requirement (including, without limitation, any such requirement imposed by the Board of Governors of the Federal Reserve System, but excluding with respect to any Eurodollar Loans any such requirement included in an applicable
Eurodollar Reserve Percentage) against assets of, deposits with or for the account of, or credit extended by, any Lender (or its Lending Office) or shall impose on any Lender (or its Lending Office) or on the interbank market any other condition
affecting its Eurodollar Loans, its Notes, its Letter(s) of Credit, or its participation in any thereof, any Reimbursement Obligation owed to it, or its obligation to make Eurodollar Loans, or to issue a Letter of Credit, or to participate therein;

 and the result of any of the foregoing is to increase the cost to such Lender (or its Lending Office) of making or maintaining any Eurodollar Loan,
issuing or maintaining a Letter of Credit, or participating therein, or to reduce the amount of any sum received or receivable by such Lender (or its Lending Office) under this Agreement or under any other Loan Document with respect thereto, by an
amount deemed by such Lender to be material, then, within 15 days after demand by such Lender (with a copy to the Administrative Agent), the Borrower shall be obligated to pay to such Lender such additional amount or amounts as will compensate
such Lender for such increased cost or reduction. 
 (b) If, after the date hereof, any Lender or the Administrative Agent shall have
determined that the adoption of any applicable law, rule or regulation regarding capital adequacy, or any change therein, or any change in the interpretation or administration thereof by any governmental authority, central bank or comparable agency
charged with the interpretation or administration thereof, or compliance by any Lender (or its Lending Office) or any corporation controlling such Lender with any request or directive regarding capital adequacy (whether or not having the force of
law) of any such authority, central bank or comparable agency, has had the effect of reducing the rate of return on such Lender’s or such corporation’s capital as a consequence of its obligations hereunder to a level below that which such
Lender or such corporation could have achieved but for such adoption, change or compliance (taking into consideration such Lender’s or such corporation’s policies with respect to capital adequacy) by an amount deemed by such Lender to be
material, then from time to time, within 15 days after demand by such Lender (with a copy to the Administrative Agent), the Borrower shall pay to such Lender such additional amount or amounts as will compensate such Lender for such reduction.

 (c) A certificate of a Lender claiming compensation under this Section 10.3 and setting forth the additional amount or amounts to be
paid to it hereunder and the calculation thereof shall be conclusive if reasonably made and determined. In determining such amount, such Lender may use any reasonable averaging and attribution methods. 
  

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 Section 10.4. Lending Offices. Each Lender may, at its option, elect to make its Loans
hereunder at the branch, office or affiliate specified on the appropriate signature page hereof (each a “Lending Office”) for each type of Loan available hereunder or at such other of its branches, offices or affiliates as it may
from time to time elect and designate in a written notice to the Borrower and the Administrative Agent. To the extent reasonably possible, a Lender shall designate an alternative branch or funding office with respect to its Eurodollar Loans to
reduce any liability of the Borrower to such Lender under Section 10.3 hereof or to avoid the unavailability of Eurodollar Loans under Section 10.2 hereof, so long as such designation is not otherwise disadvantageous to the Lender.

 Section 10.5. Discretion of Lender as to Manner of Funding. Notwithstanding any other provision of this Agreement, each Lender
shall be entitled to fund and maintain its funding of all or any part of its Loans in any manner it sees fit, it being understood, however, that for the purposes of this Agreement all determinations hereunder with respect to Eurodollar Loans shall
be made as if each Lender had actually funded and maintained each Eurodollar Loan through the purchase of deposits in the interbank eurodollar market having a maturity corresponding to such Loan’s Interest Period, and bearing an interest rate
equal to LIBOR for such Interest Period. 
 SECTION 11. THE ADMINISTRATIVE
AGENT. 
 Section 11.1. Appointment and Authorization of Administrative Agent. Each Lender hereby appoints Harris
N.A. as the Administrative Agent under the Loan Documents and hereby authorizes the Administrative Agent to take such action as Administrative Agent on its behalf and to exercise such powers under the Loan Documents as are delegated to the
Administrative Agent by the terms thereof, together with such powers as are reasonably incidental thereto. The Lenders expressly agree that the Administrative Agent is not acting as a fiduciary of the Lenders in respect of the Loan Documents, the
Borrower or otherwise, and nothing herein or in any of the other Loan Documents shall result in any duties or obligations on the Administrative Agent or any of the Lenders except as expressly set forth herein. 
 Section 11.2. Administrative Agent and its Affiliates. To the extent that the Administrative Agent is also a Lender hereunder, the
Administrative Agent shall have the same rights and powers under this Agreement and the other Loan Documents as any other Lender and may exercise or refrain from exercising such rights and power as though it were not the Administrative Agent, and
the Administrative Agent and its affiliates may accept deposits from, lend money to, and generally engage in any kind of business with the Borrower or any Affiliate of the Borrower as if it were not the Administrative Agent under the Loan Documents.
To the extent that the Administrative Agent is also a Lender hereunder, the term “Lender” as used herein and in all other Loan Documents, unless the context otherwise clearly requires, shall include the Administrative Agent in its
individual capacity as a Lender. To the extent that the Administrative Agent is also a Lender hereunder, references in Section 1 hereof to the Administrative Agent’s Loans, or to the amount owing to the Administrative Agent for which an
interest rate is being determined, refer to the Administrative Agent in its individual capacity as a Lender. 
  

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 Section 11.3. Action by Administrative Agent. If the Administrative Agent receives from the
Borrower a written notice of an Event of Default pursuant to Section 8.5 hereof, the Administrative Agent shall promptly give each of the Lenders written notice thereof. The obligations of the Administrative Agent under the Loan Documents are
only those expressly set forth therein. Without limiting the generality of the foregoing, the Administrative Agent shall not be required to take any action hereunder with respect to any Default or Event of Default, except as expressly provided in
Sections 9.2 and 9.5. Upon the occurrence of an Event of Default, the Administrative Agent shall take such action to enforce its Lien on the Collateral and to preserve and protect the Collateral as may be directed by the Required Lenders.
Unless and until the Required Lenders give such direction, the Administrative Agent may (but shall not be obligated to) take or refrain from taking such actions as it deems appropriate and in the best interest of all the Lenders. In no event,
however, shall the Administrative Agent be required to take any action in violation of applicable law or of any provision of any Loan Document, and the Administrative Agent shall in all cases be fully justified in failing or refusing to act
hereunder or under any other Loan Document unless it first receives any further assurances of its indemnification from the Lenders that it may require, including prepayment of any related expenses and any other protection it requires against any and
all costs, expense, and liability which may be incurred by it by reason of taking or continuing to take any such action. The Administrative Agent shall be entitled to assume that no Default or Event of Default exists unless notified in writing to
the contrary by a Lender or the Borrower. In all cases in which the Loan Documents do not require the Administrative Agent to take specific action, the Administrative Agent shall be fully justified in using its discretion in failing to take or in
taking any action thereunder. Any instructions of the Required Lenders, or of any other group of Lenders called for under the specific provisions of the Loan Documents, shall be binding upon all the Lenders and the holders of the Obligations.

 Section 11.4. Consultation with Experts. The Administrative Agent may consult with legal counsel, independent public
accountants, and other experts selected by it and shall not be liable for any action taken or omitted to be taken by it in good faith in accordance with the advice of such counsel, accountants or experts. 
 Section 11.5. Liability of Administrative Agent; Credit Decision. Neither the Administrative Agent nor any of its directors, officers, agents
or employees shall be liable for any action taken or not taken by it in connection with the Loan Documents: (i) with the consent or at the request of the Required Lenders or (ii) in the absence of its own gross negligence or willful
misconduct. Neither the Administrative Agent nor any of its directors, officers, agents or employees shall be responsible for or have any duty to ascertain, inquire into or verify: (i) any statement, warranty or representation made in
connection with this Agreement, any other Loan Document or any Credit Event; (ii) the performance or observance of any of the covenants or agreements of the Borrower or any Guarantor contained herein or in any other Loan Document;
(iii) the satisfaction of any condition specified in Section 7 hereof, except receipt of items required to be delivered to the Administrative Agent; or (iv) the validity, effectiveness, genuineness, enforceability, perfection, value,
worth or collectibility hereof or of any other Loan 

  

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Document or of any other documents or writing furnished in connection with any Loan Document or of any Collateral; and the Administrative Agent makes no
representation of any kind or character with respect to any such matter mentioned in this sentence. The Administrative Agent may execute any of its duties under any of the Loan Documents by or through employees, agents, and attorneys-in-fact and
shall not be answerable to the Lenders, the Borrower, or any other Person for the default or misconduct of any such agents or attorneys-in-fact selected with reasonable care. The Administrative Agent shall not incur any liability by acting in
reliance upon any notice, consent, certificate, other document or statement (whether written or oral) believed by it to be genuine or to be sent by the proper party or parties. In particular and without limiting any of the foregoing, the
Administrative Agent shall have no responsibility for confirming the accuracy of any compliance certificate or other document or instrument received by it under the Loan Documents. The Administrative Agent may treat the payee of any Obligation as
the holder thereof until written notice of transfer shall have been filed with the Administrative Agent signed by such payee in form satisfactory to the Administrative Agent. Each Lender acknowledges that it has independently and without reliance on
the Administrative Agent or any other Lender, and based upon such information, investigations and inquiries as it deems appropriate, made its own credit analysis and decision to extend credit to the Borrower in the manner set forth in the Loan
Documents. It shall be the responsibility of each Lender to keep itself informed as to the creditworthiness of the Borrower and the Guarantors, and the Administrative Agent shall have no liability to any Lender with respect thereto. 
 Section 11.6. Indemnity. The Lenders shall ratably, in accordance with their respective Percentages, indemnify and hold the Administrative
Agent, and its directors, officers, employees, agents, and representatives harmless from and against any liabilities, losses, costs or expenses suffered or incurred by it under any Loan Document or in connection with the transactions contemplated
thereby, regardless of when asserted or arising, except to the extent they are promptly reimbursed for the same by the Borrower and except to the extent that any event giving rise to a claim was caused by the gross negligence or willful misconduct
of the party seeking to be indemnified. The obligations of the Lenders under this Section shall survive termination of this Agreement. The Administrative Agent shall be entitled to offset amounts received for the account of a Lender under this
Agreement against unpaid amounts due from such Lender to the Administrative Agent hereunder (whether as fundings of participations, indemnities or otherwise), but shall not be entitled to offset against amounts owed to the Administrative Agent by
any Lender arising outside of this Agreement and the other Loan Documents. 
 Section 11.7. Resignation of Administrative Agent and
Successor Administrative Agent. The Administrative Agent may resign at any time by giving written notice thereof to the Lenders and the Borrower. Upon any such resignation of the Administrative Agent, the Required Lenders shall have the right to
appoint a successor Administrative Agent subject, if no Default or Event of Default then exists, to the reasonable consent of the Borrower. If no successor Administrative Agent shall have been so appointed by the Required Lenders, and shall have
accepted such appointment, within 30 days after the retiring Administrative Agent’s giving of notice of resignation then the retiring Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative Agent (subject to,
if not Default or Event of Default then exists, the reasonable consent of the Borrower), which may be any Lender hereunder or any commercial bank organized under the laws of the United States of America or of any State 

  

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thereof and having a combined capital and surplus of at least $200,000,000. Upon the acceptance of its appointment as the Administrative Agent hereunder,
such successor Administrative Agent shall thereupon succeed to and become vested with all the rights and duties of the retiring Administrative Agent under the Loan Documents, and the retiring Administrative Agent shall be discharged from its duties
and obligations thereunder. After any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the provisions of this Section 11 and all protective provisions of the other Loan Documents shall inure to its benefit as
to any actions taken or omitted to be taken by it while it was Administrative Agent, but no successor Administrative Agent shall in any event be liable or responsible for any actions of its predecessor. If the Administrative Agent resigns and no
successor shall have been appointed (and consented to by the Borrower, if such consent is required hereby), the rights and obligations of such Administrative Agent shall be automatically assumed by the Required Lenders and (i) the
Borrower shall be directed to make all payments due each Lender hereunder directly to such Lender and (ii) the Administrative Agent’s rights in the Collateral Documents shall be assigned without representation, recourse or warranty to the
Lenders as their interests may appear. 
 Section 11.8. L/C Issuer. The L/C Issuer shall act on behalf of the Lenders with
respect to any Letters of Credit issued by it and the documents associated therewith. The L/C Issuer shall have all of the benefits and immunities (i) provided to the Administrative Agent in this Section 11 with respect to any acts taken
or omissions suffered by the L/C Issuer in connection with Letters of Credit issued by it or proposed to be issued by it and the Applications pertaining to such Letters of Credit as fully as if the term “Administrative Agent”, as used in
this Section 11, included the L/C Issuer with respect to such acts or omissions and (ii) as additionally provided in this Agreement with respect to such L/C Issuer. 
 Section 11.9. Hedging Liability and Funds Transfer and Deposit Account Liability Arrangements. By virtue of a Lender’s execution of this
Agreement or an assignment agreement pursuant to Section 13.12 hereof, as the case may be, any Affiliate of such Lender with whom the Borrower or any Subsidiary has entered into an agreement creating Hedging Liability or Funds Transfer and
Deposit Account Liability shall be deemed a Lender party hereto for purposes of any reference in a Loan Document to the parties for whom the Administrative Agent is acting, it being understood and agreed that the rights and benefits of such
Affiliate under the Loan Documents consist exclusively of such Affiliate’s right to share in payments and collections out of the Collateral and the Guaranties as more fully set forth in Section 3.1 hereof. In connection with any such
distribution of payments and collections, the Administrative Agent shall be entitled to assume no amounts are due to any Lender or its Affiliate with respect to Hedging Liability or Funds Transfer and Deposit Account Liability unless such Lender has
notified the Administrative Agent in writing of the amount of any such liability owed to it or its Affiliate prior to such distribution. 
 Section 11.10. Designation of Additional Agents. The Administrative Agent shall have the continuing right, for purposes hereof, at any time and from time to time to designate one or more of the Lenders (and/or its or their
Affiliates) as “syndication agents,” “documentation agents,” “book runners,” “lead arrangers,” “arrangers,” or other designations for purposes hereto, but such designation shall have no substantive
effect, and such Lenders and their Affiliates shall have no additional powers, duties or responsibilities as a result thereof. 
  

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 Section 11.11. Authorization to Release or Subordinate or Limit Liens. The Administrative
Agent is hereby irrevocably authorized by each of the Lenders to (a) release any Lien covering any Collateral that is sold, transferred, or otherwise disposed of in accordance with the terms and conditions of this Agreement and the relevant
Collateral Documents (including a sale, transfer, or disposition permitted by the terms of Section 8.10 hereof or which has otherwise been consented to in accordance with Section 13.13 hereof), (b) release or subordinate any Lien on
Collateral consisting of goods financed with purchase money indebtedness or under a Capital Lease to the extent such purchase money indebtedness or Capitalized Lease Obligation, and the Lien securing the same, are permitted by Sections 8.7 and
8.8 hereof, and (c) reduce or limit the amount of the indebtedness secured by any particular item of Collateral to an amount not less than the estimated value thereof to the extent necessary to reduce mortgage registry, filing and similar tax
and (d) release Liens on Collateral following termination or expiration of the Revolving Credit Commitments and payment in full of the Obligations and, if then due, Hedging Liability and Funds Transfer and Deposit Account Liability. 

Section 11.12. Authorization to Enter into, and Enforcement of, the Collateral Documents. The Administrative Agent is hereby irrevocably
authorized by each of the Lenders to execute and deliver the Collateral Documents on behalf of each of the Lenders and their Affiliates and to take such action and exercise such powers under the Collateral Documents as the Administrative Agent
considers appropriate, provided the Administrative Agent shall not amend the Collateral Documents unless such amendment is agreed to in writing by the Required Lenders. Each Lender acknowledges and agrees that it will be bound by the terms
and conditions of the Collateral Documents upon the execution and delivery thereof by the Administrative Agent. Except as otherwise specifically provided for herein, no Lender (or its Affiliates) other than the Administrative Agent shall have the
right to institute any suit, action or proceeding in equity or at law for the foreclosure or other realization upon any Collateral or for the execution of any trust or power in respect of the Collateral or for the appointment of a receiver or for
the enforcement of any other remedy under the Collateral Documents; it being understood and intended that no one or more of the Lenders (or their Affiliates) shall have any right in any manner whatsoever to affect, disturb or prejudice the Lien of
the Administrative Agent (or any security trustee therefor) under the Collateral Documents by its or their action or to enforce any right thereunder, and that all proceedings at law or in equity shall be instituted, had, and maintained by the
Administrative Agent (or its security trustee) in the manner provided for in the relevant Collateral Documents for the benefit of the Lenders and their Affiliates. 
 SECTION 12. THE GUARANTEES. 
 Section 12.1. The Guarantees. To induce the Lenders to provide the credits described herein and in consideration of benefits expected to
accrue to the Borrower by reason of the Commitments and for other good and valuable consideration, receipt of which is hereby acknowledged, each Guarantor (including any Subsidiary formed or acquired after the Closing Date executing an Additional
Guarantor Supplement in the form attached hereto as Exhibit F or such other form acceptable to the Administrative Agent) hereby unconditionally and irrevocably 

  

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guarantees jointly and severally to the Administrative Agent, the Lenders, and their Affiliates, the due and punctual payment of all present and future
Obligations, Hedging Liability, and Funds Transfer and Deposit Account Liability, including, but not limited to, the due and punctual payment of principal of and interest on the Notes, the Reimbursement Obligations, and the due and punctual payment
of all other Obligations now or hereafter owed by the Borrower under the Loan Documents and the due and punctual payment of all Hedging Liability and Funds Transfer and Deposit Account Liability, in each case as and when the same shall become due
and payable, whether at stated maturity, by acceleration, or otherwise, according to the terms hereof and thereof (including all interest, costs, fees and charges after the entry of an order for relief against Borrower or such other obligor in a
case under the United States Bankruptcy Code or any similar proceeding, whether or not such interest costs, fees and charges would an allowed claim against the Borrower or any such obligor in such proceeding). In case of failure by the Borrower or
other obligor punctually to pay any Obligations, Hedging Liability, or Funds Transfer and Deposit Account Liability guaranteed hereby, each Guarantor hereby unconditionally agrees to make such payment or to cause such payment to be made punctually
as and when the same shall become due and payable, whether at stated maturity, by acceleration, or otherwise, and as if such payment were made by the Borrower or such obligor. 
 Section 12.2. Guarantee Unconditional. The obligations of each Guarantor under this Section 12 shall be unconditional and absolute and,
without limiting the generality of the foregoing, shall not be released, discharged, or otherwise affected by: 
 (a) any
extension, renewal, settlement, compromise, waiver, or release in respect of any obligation of the Borrower or other obligor or of any other guarantor under this Agreement or any other Loan Document or by operation of law or otherwise; 

(b) any modification or amendment of or supplement to this Agreement or any other Loan Document or any agreement relating to Hedging
Liability or Funds Transfer and Deposit Account Liability; 
 (c) any change in the corporate existence, structure, or
ownership of, or any insolvency, bankruptcy, reorganization, or other similar proceeding affecting, the Borrower or other obligor, any other Guarantor, or any of their respective assets, or any resulting release or discharge of any obligation of the
Borrower or other obligor or of any other Guarantor contained in any Loan Document; 
 (d) the existence of any claim,
set-off, or other rights which the Borrower or other obligor or any other Guarantor may have at any time against the Administrative Agent, any Lender, or any other Person, whether or not arising in connection herewith; 
 (e) any failure to assert, or any assertion of, any claim or demand or any exercise of, or failure to exercise, any rights or remedies
against the Borrower or other obligor, any other Guarantor, or any other Person or Property; 
  

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 (f) any application of any sums by whomsoever paid or howsoever realized to any
obligation of the Borrower or other obligor, regardless of what obligations of the Borrower or other obligor remain unpaid; 
 (g) any invalidity or unenforceability relating to or against the Borrower or other obligor or any other guarantor for any reason of this Agreement or of any other Loan Document or any agreement relating to Hedging Liability or Funds
Transfer and Deposit Account Liability or any provision of applicable law or regulation purporting to prohibit the payment by the Borrower or other obligor or any other guarantor of the principal of or interest on any Note or any Reimbursement
Obligation or any other amount payable under the Loan Documents or any agreement relating to Hedging Liability or Funds Transfer and Deposit Account Liability; or 
 (h) any other act or omission to act or delay of any kind by the Administrative Agent, any Lender, or any other Person or any other
circumstance whatsoever that might, but for the provisions of this paragraph, constitute a legal or equitable discharge of the obligations of any Guarantor under this Section 12. 
 Section 12.3. Discharge Only upon Payment in Full; Reinstatement in Certain Circumstances. Each Guarantor’s obligations under this
Section 12 shall remain in full force and effect until the Revolving Credit Commitments are terminated, all Letters of Credit have expired, and the principal of and interest on the Notes and all other amounts payable by the Borrower and the
Guarantors under this Agreement and all other Loan Documents and, if then outstanding and unpaid, all Hedging Liability and Funds Transfer and Deposit Account Liability shall have been paid in full. If at any time any payment of the principal of or
interest on any Note or any Reimbursement Obligation or any other amount payable by the Borrower or other obligor or any Guarantor under the Loan Documents or any agreement relating to Hedging Liability or Funds Transfer and Deposit Account
Liability is rescinded or must be otherwise restored or returned upon the insolvency, bankruptcy, or reorganization of the Borrower or other obligor or of any Guarantor, or otherwise, each Guarantor’s obligations under this Section 12 with
respect to such payment shall be reinstated at such time as though such payment had become due but had not been made at such time. 
 Section 12.4. Subrogation. Each Guarantor agrees it will not exercise any rights which it may acquire by way of subrogation by any payment made hereunder, or otherwise, until all the Obligations, Hedging Liability, and Funds
Transfer and Deposit Account Liability shall have been paid in full subsequent to the termination of all the Revolving Credit Commitments and expiration of all Letters of Credit. If any amount shall be paid to a Guarantor on account of such
subrogation rights at any time prior to the later of (x) the payment in full of the Obligations, Hedging Liability, and Funds Transfer and Deposit Account Liability and all other amounts payable by the Borrower hereunder and the other Loan
Documents and (y) the termination of the Revolving Credit Commitments and expiration of all Letters of Credit, such amount shall be held in trust for the benefit of the Administrative Agent and the Lenders (and their Affiliates) and shall
forthwith be paid to the Administrative Agent for the benefit of the Lenders (and their Affiliates) or be credited and applied upon the Obligations, Hedging Liability, and Funds Transfer and Deposit Account Liability, whether matured or unmatured,
in accordance with the terms of this Agreement. 
  

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 Section 12.5. Waivers. Each Guarantor irrevocably waives acceptance hereof, presentment,
demand, protest, and any notice not provided for herein, as well as any requirement that at any time any action be taken by the Administrative Agent, any Lender, or any other Person against the Borrower or other obligor, another Guarantor, or any
other Person. 
 Section 12.6. Limit on Recovery. Notwithstanding any other provision hereof, the right of recovery against each
Guarantor under this Section 12 shall not exceed $1.00 less than the lowest amount which would render such Guarantor’s obligations under this Section 12 void or voidable under applicable law, including, without limitation, fraudulent
conveyance law. 
 Section 12.7. Stay of Acceleration. If acceleration of the time for payment of any amount payable by the
Borrower or other obligor under this Agreement or any other Loan Document, or under any agreement relating to Hedging Liability or Funds Transfer and Deposit Account Liability, is stayed upon the insolvency, bankruptcy or reorganization of the
Borrower or such obligor, all such amounts otherwise subject to acceleration under the terms of this Agreement or the other Loan Documents, or under any agreement relating to Hedging Liability or Funds Transfer and Deposit Account Liability, shall
nonetheless be payable by the Guarantors hereunder forthwith on demand by the Administrative Agent made at the request of the Required Lenders. 
 Section 12.8. Benefit to Guarantors. The Borrower and the Guarantors are engaged in related businesses and integrated to such an extent that the financial strength and flexibility of the Borrower has a direct impact on the
success of each Guarantor. Each Guarantor will derive substantial direct and indirect benefit from the extensions of credit hereunder. 
 Section 12.9. Guarantor Covenants. Each Guarantor shall take such action as the Borrower is required by this Agreement to cause such Guarantor to take, and shall refrain from taking such action as the Borrower is required by
this Agreement to prohibit such Guarantor from taking. 
 SECTION 13. MISCELLANEOUS.

 Section 13.1. Withholding Taxes. (a) Payments Free of Withholding. Except as otherwise required by law and subject
to Section 13.1(b) hereof, each payment by the Borrower and the Guarantors under this Agreement or the other Loan Documents shall be made without withholding for or on account of any present or future taxes (other than overall net income taxes
on the recipient) imposed by or within the jurisdiction in which the Borrower or such Guarantor is domiciled, any jurisdiction from which the Borrower or such Guarantor makes any payment, or (in each case) any political subdivision or taxing
authority thereof or therein. If any such withholding is so required, the Borrower or such Guarantor shall make the withholding, pay the amount withheld to the appropriate governmental authority before penalties attach thereto or interest accrues
thereon, and forthwith pay such additional amount as may be necessary to ensure that the net amount actually received by each Lender and the Administrative Agent free and clear 

  

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of such taxes (including such taxes on such additional amount) is equal to the amount which that Lender or the Administrative Agent (as the case may be)
would have received had such withholding not been made. If the Administrative Agent or any Lender pays any amount in respect of any such taxes, penalties or interest, the Borrower or such Guarantor shall reimburse the Administrative Agent or such
Lender for that payment on demand in the currency in which such payment was made. If the Borrower or such Guarantor pays any such taxes, penalties or interest, it shall deliver official tax receipts evidencing that payment or certified copies
thereof to the Lender or Administrative Agent on whose account such withholding was made (with a copy to the Administrative Agent if not the recipient of the original) on or before the thirtieth day after payment. 
 (b) U.S. Withholding Tax Exemptions. Each Lender that is not a United States person (as such term is defined in Section 7701(a)(30) of the
Code) shall submit to the Borrower and the Administrative Agent on or before the date the initial Credit Event is made hereunder or, if later, the date such financial institution becomes a Lender hereunder, two duly completed and signed copies of
(i) either Form W-8 BEN (relating to such Lender and entitling it to a complete exemption from withholding under the Code on all amounts to be received by such Lender, including fees, pursuant to the Loan Documents and the Obligations) or
Form W-8 ECI (relating to all amounts to be received by such Lender, including fees, pursuant to the Loan Documents and the Obligations) of the United States Internal Revenue Service or (ii) solely if such Lender is claiming exemption from
United States withholding tax under Section 871(h) or 881(c) of the Code with respect to payments of “portfolio interest”, a Form W-8 BEN, or any successor form prescribed by the Internal Revenue Service, and a certificate
representing that such Lender is not a bank for purposes of Section 881(c) of the Code, is not a 10-percent shareholder (within the meaning of Section 871(h)(3)(B) of the Code) of the Borrower and is not a controlled foreign corporation
related to the Borrower (within the meaning of Section 864(d)(4) of the Code). Thereafter and from time to time, each Lender shall submit to the Borrower and the Administrative Agent such additional duly completed and signed copies of one or
the other of such Forms (or such successor forms as shall be adopted from time to time by the relevant United States taxing authorities) and such other certificates as may be (i) requested by the Borrower in a written notice, directly or
through the Administrative Agent, to such Lender and (ii) required under then-current United States law or regulations to avoid or reduce United States withholding taxes on payments in respect of all amounts to be received by such Lender,
including fees, pursuant to the Loan Documents or the Obligations. Upon the request of the Borrower or the Administrative Agent, each Lender that is a United States person (as such term is defined in Section 7701(a)(30) of the Code) shall
submit to the Borrower and the Administrative Agent a certificate to the effect that it is such a United States person. 
 (c) Inability
of Lender to Submit Forms. If any Lender determines, as a result of any change in applicable law, regulation or treaty, or in any official application or interpretation thereof, that it is unable to submit to the Borrower or the Administrative
Agent any form or certificate that such Lender is obligated to submit pursuant to subsection (b) of this Section 13.1 or that such Lender is required to withdraw or cancel any such form or certificate previously submitted or any such form
or certificate otherwise becomes ineffective or inaccurate, such Lender shall promptly notify the Borrower and Administrative Agent of such fact in writing and the Lender shall to that extent not be obligated to provide any such form or certificate
and will be entitled to withdraw or cancel any affected form or certificate, as applicable. 
  

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 Section 13.2. No Waiver, Cumulative Remedies. No delay or failure on the part of the
Administrative Agent or any Lender or on the part of the holder or holders of any of the Obligations in the exercise of any power or right under any Loan Document shall operate as a waiver thereof or as an acquiescence in any default, nor shall any
single or partial exercise of any power or right preclude any other or further exercise thereof or the exercise of any other power or right. The rights and remedies hereunder of the Administrative Agent, the Lenders and of the holder or holders of
any of the Obligations are cumulative to, and not exclusive of, any rights or remedies which any of them would otherwise have. 
 Section 13.3. Non-Business Days. If any payment hereunder becomes due and payable on a day which is not a Business Day, the due date of such payment shall be extended to the next succeeding Business Day on which date such
payment shall be due and payable. In the case of any payment of principal falling due on a day which is not a Business Day, interest on such principal amount shall continue to accrue during such extension at the rate per annum then in effect, which
accrued amount shall be due and payable on the next scheduled date for the payment of interest. 
 Section 13.4. Documentary Taxes.
The Borrower agrees to pay on demand any documentary, stamp or similar taxes payable in respect of this Agreement or any other Loan Document, including interest and penalties (to the extent such interest or penalties arise from any act or
omission by the Borrower), in the event any such taxes are assessed, irrespective of when such assessment is made and whether or not any credit is then in use or available hereunder. 
 Section 13.5. Survival of Representations. All representations and warranties made herein or in any other Loan Document or in certificates
given pursuant hereto or thereto shall survive the execution and delivery of this Agreement and the other Loan Documents, and shall continue in full force and effect with respect to the date as of which they were made as long as any credit is in use
or available hereunder. 
 Section 13.6. Survival of Indemnities. All indemnities and other provisions relative to reimbursement
to the Lenders of amounts sufficient to protect the yield of the Lenders with respect to the Loans and Letters of Credit, including, but not limited to, Sections 1.11, 10.3, and 13.15 hereof, shall survive the termination of this Agreement and
the other Loan Documents and the payment of the Obligations. 
 Section 13.7. Sharing of Set-Off. Each Lender agrees with each
other Lender a party hereto that if such Lender shall receive and retain any payment, whether by set-off or application of deposit balances or otherwise, on any of the Loans or Reimbursement Obligations in excess of its ratable share of payments on
all such Obligations then outstanding to the Lenders, then such Lender shall purchase for cash at face value, but without recourse, ratably from each of the other Lenders such amount of the Loans or Reimbursement Obligations, or participations
therein, held by each such other Lenders (or interest therein) as shall be necessary to cause such Lender to share such excess payment ratably with all the other Lenders; provided, however, that if any such 

  

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purchase is made by any Lender, and if such excess payment or part thereof is thereafter recovered from such purchasing Lender, the related purchases from
the other Lenders shall be rescinded ratably and the purchase price restored as to the portion of such excess payment so recovered, but without interest. For purposes of this Section, amounts owed to or recovered by the L/C Issuer in connection with
Reimbursement Obligations in which Lenders have been required to fund their Participating Interest shall be treated as amounts owed to or recovered by the L/C Issuer as a Lender hereunder. 
 Section 13.8. Notices. Except as otherwise specified herein, all notices hereunder and under the other Loan Documents shall be in writing
(including, without limitation, notice by telecopy) and shall be given to the relevant party at its address or telecopier number set forth below, or such other address or telecopier number as such party may hereafter specify by notice to the
Administrative Agent and the Borrower given by courier, by United States certified or registered mail, by telecopy or by other telecommunication device capable of creating a written record of such notice and its receipt. Notices under the Loan
Documents to the Lenders and the Administrative Agent shall be addressed to their respective addresses or telecopier numbers set forth on the signature pages hereof, and to the Borrower or any Guarantor to: 
  

	
	Nobel Learning Communities, Inc.
	1615 West Chester Pike
	West Chester, Pennsylvania 19382
	Attention:         Chief Financial Officer
	Telecopy:         (484) 947-2003
	
	With a copy (not constituting notice) to:
	
	Nobel Learning Communities, Inc.
	1615 West Chester Pike
	West Chester, Pennsylvania 19382
	Attention:         General Counsel
	Telecopy:         (484) 947-2003

 Each such notice, request or other communication shall be effective (i) if given by telecopier, when such
telecopy is transmitted to the telecopier number specified in this Section or on the signature pages hereof, in either case during normal business hours, and a confirmation of such telecopy has been received by the sender, (ii) if given by
mail, 5 days after such communication is deposited in the mail, certified or registered with return receipt requested, addressed as aforesaid or (iii) if given by any other means, when delivered at the addresses specified in this Section
or on the signature pages hereof; provided that any notice given pursuant to Section 1 hereof shall be effective only upon receipt. 
 Section 13.9. Counterparts. This Agreement may be executed in any number of counterparts, and by the different parties hereto on separate counterpart signature pages, and all such counterparts taken together shall be deemed to
constitute one and the same instrument. 
  

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 Section 13.10. Successors and Assigns. This Agreement shall be binding upon the Borrower and
the Guarantors and their successors and assigns, and shall inure to the benefit of the Administrative Agent and each of the Lenders and the benefit of their respective successors and assigns, including any subsequent holder of any of the
Obligations. The Borrower and the Guarantors may not assign any of their rights or obligations under any Loan Document without the written consent of all of the Lenders. 
 Section 13.11. Participants. Each Lender shall have the right at its own cost to grant participations (to be evidenced by one or more agreements or certificates of participation) in the Loans made and
Reimbursement Obligations and/or Commitments held by such Lender at any time and from time to time to one or more other Persons; provided that no such participation shall relieve any Lender of any of its obligations under this Agreement, and,
provided, further that no such participant shall have any rights under this Agreement except as provided in this Section, and the Administrative Agent shall have no obligation or responsibility to such participant. Any agreement pursuant to which
such participation is granted shall provide that the granting Lender shall retain the sole right and responsibility to enforce the obligations of the Borrower under this Agreement and the other Loan Documents including, without limitation, the right
to approve any amendment, modification or waiver of any provision of the Loan Documents, except that such agreement may provide that such Lender will not agree to any modification, amendment or waiver of the Loan Documents that would reduce the
amount of or postpone any fixed date for payment of any Obligation in which such participant has an interest. Any party to which such a participation has been granted shall have the benefits of Section 1.11 and Section 10.3 hereof, but
only to the extent such Sections would require payment to the Lender granting such participation if such participation had not occurred. The Borrower authorizes each Lender to disclose to any participant or prospective participant under this Section
any financial or other information pertaining to the Borrower or any Subsidiary, provided that such participant or prospective participant shall agree in writing to hold such information in confidence pursuant to the provisions of Section 13.24
hereof. 
 Section 13.12. Assignments. (a) Any Lender may at any time assign to one or more Eligible Assignees all or a
portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Revolving Credit Commitment and the Loans at the time owing to it); provided that any such assignment shall be subject to the
following conditions: 
 (i) Minimum Amounts. (A) In the case of an assignment of the entire remaining amount of the assigning
Lender’s Revolving Credit Commitment and the Loans, participation interest in L/C Obligations and participation interest in Swing Loans at the time owing to it or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved
Fund, no minimum amount need be assigned; and (B) in any case not described in subsection (a)(i)(A) of this Section, the aggregate amount of the Commitment (which for this purpose includes Loans, participation interest in Swing Loans and
Participating Interest in L/C Obligations outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Loans, participation interest in Swing Loans and Participating Interest in L/C
Obligations of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Acceptance with respect to such assignment is delivered to the Administrative Agent or, if “Effective Date” is specified in
the Assignment and Acceptance, as 

  

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of the Effective Date) shall not be less than $5,000,000, in the case of any assignment in respect of the Revolving Credit, unless each of the Administrative
Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed); 
 (ii) Proportionate Amounts. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loan
or the Revolving Credit Commitment assigned, except that this clause (ii) shall not prohibit any Lender from assigning all or a portion of its rights and obligations among separate Credits on a non-pro rata basis. Notwithstanding the
foregoing, any assignment by the Swing Line Lender of the Swing Line Commitment must assign the entire Swing Line Commitment. 
 (iii)
Required Consents. No consent shall be required for any assignment except to the extent required by Section 13.12(a)(i)(B) and, in addition: 
 (a) the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) an Event of Default has occurred and is continuing at the time of such assignment or
(y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; 
 (b) the consent of the
Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments in respect of the Revolving Credit if such assignment is to a Person that is not a Lender with a Commitment in respect of such facility,
an Affiliate of such Lender or an Approved Fund with respect to such Lender; 
 (c) the consent of the L/C Issuer (such
consent not to be unreasonably withheld or delayed) shall be required for any assignment that increases the obligation of the assignee to participate in exposure under one or more Letters of Credit (whether or not then outstanding); and 

(d) the consent of the Swing Line Lender (such consent not to be unreasonably withheld or delayed) shall be required for any assignment
that increases the obligation of the assignee to participate in exposure under one or more Swing Loans (whether or not then outstanding). 
 (iv) Assignment and Acceptance. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Acceptance, together with a processing and recordation fee of $3,500, and the assignee, if it is
not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. 
 (v) No Assignment to Borrower or Parent.
No such assignment shall be made to the Borrower or any of its Affiliates or Subsidiaries. 
  

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 (vi) No Assignment to Natural Persons. No such assignment shall be made to a natural person.

 Subject to acceptance and recording thereof by the Administrative Agent pursuant to Section 13.12(b) hereof, from and after the effective date
specified in each Assignment and Acceptance, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 1.11, 10.3, 13.6 and 13.15 with respect to facts and circumstances
occurring prior to the effective date of such assignment. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with Section 13.11 hereof. 
 (b) Register. The
Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at one of its offices in Chicago, Illinois, a copy of each Assignment and Acceptance delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Revolving Credit Commitments of, and principal amounts of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent, and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 
 (c) Any Lender may at any time pledge or grant a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any such pledge or grant to a Federal Reserve
Bank, and this Section shall not apply to any such pledge or grant of a security interest; provided that no such pledge or grant of a security interest shall release a Lender from any of its obligations hereunder or substitute any such
pledgee or secured party for such Lender as a party hereto; provided further, however, the right of any such pledgee or grantee (other than any Federal Reserve Bank) to further transfer all or any portion of the rights pledged or granted to
it, whether by means of foreclosure or otherwise, shall be at all times subject to the terms of this Agreement. 
 Section 13.13.
Amendments. Any provision of this Agreement or the other Loan Documents may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by (a) the Borrower, (b) the Required Lenders, and (c) if the
rights or duties of the Administrative Agent, the Swing Line Lender or the L/C Issuer are affected thereby, the Administrative Agent, the Swing Line Lender or such L/C Issuer, as applicable; provided that: 
 (i) no amendment or waiver pursuant to this Section 13.13 shall (A) increase any Revolving Credit Commitment of any Lender
without the consent of such Lender or 

  

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(B) reduce the amount of or postpone the date for any scheduled payment of any principal of or interest on any Loan or of any Reimbursement Obligation
or of any fee payable hereunder without the consent of the Lender to which such payment is owing or which has committed to make such Loan or Letter of Credit (or participate therein) hereunder; 
 (ii) no amendment or waiver pursuant to this Section 13.13 shall, unless signed by each Lender, change the definitions of Revolving
Credit Termination Date or Required Lenders, change the provisions of this Section 13.13, release any material Guarantor or any substantial part of the Collateral (except as otherwise provided for in the Loan Documents), or affect the number of
Lenders required to take any action hereunder or under any other Loan Document; and 
 (iii) no amendment to Section 12
hereof shall be made without the consent of the Guarantor(s) affected thereby. 
 Section 13.14. Headings. Section headings used
in this Agreement are for reference only and shall not affect the construction of this Agreement. 
 Section 13.15. Costs and
Expenses; Indemnification. (a) The Borrower agrees to pay all reasonable costs and expenses of the Administrative Agent in connection with the preparation, negotiation, syndication, and administration of the Loan Documents, including,
without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent, in connection with the preparation and execution of the Loan Documents, and any amendment, waiver or consent related thereto, whether or not the
transactions contemplated herein are consummated, together with any fees and charges suffered or incurred by the Administrative Agent in connection with periodic environmental audits, fixed asset appraisals, title insurance policies, collateral
filing fees and lien searches. The Borrower agrees to pay to the Administrative Agent and each Lender, and any other holder of any Loan outstanding hereunder, all costs and expenses reasonably incurred or paid by the Administrative Agent and such
Lender or any such holder, including reasonable attorneys’ fees and disbursements and court costs, in connection with any Default or Event of Default hereunder or in connection with the enforcement of any of the Loan Documents (including all
such costs and expenses incurred in connection with any proceeding under the United States Bankruptcy Code involving the Borrower or any Subsidiary as a debtor thereunder). The Borrower further agrees to indemnify the Administrative Agent, each
Lender, and any security trustee therefor, and their respective directors, officers, employees, agents, financial advisors, and consultants (each such Person being called an “Indemnitee”) against all losses, claims, damages,
penalties, judgments, liabilities and reasonable expenses (including, without limitation, all reasonable fees and disbursements of counsel for any such Indemnitee and all reasonable expenses of litigation or preparation therefor, whether or not the
Indemnitee is a party thereto, or any settlement arrangement arising from or relating to any such litigation) which any of them may pay or incur arising out of or relating to any Loan Document or any of the transactions contemplated thereby or the
direct or indirect application or proposed application of the proceeds of any Loan or Letter of Credit, other than those which arise from the gross negligence or willful misconduct of the party claiming indemnification. The Borrower, upon demand by
the Administrative Agent or a 

  

 -77- 

 
Lender at any time, shall reimburse the Administrative Agent or such Lender for any reasonable legal or other expenses (including, without limitation, all
reasonable fees and disbursements of counsel for any such Indemnitee) incurred in connection with investigating or defending against any of the foregoing (including any settlement costs relating to the foregoing) except if the same is directly due
to the gross negligence or willful misconduct of the party to be indemnified. To the extent permitted by applicable law, neither the Borrower nor any Guarantor shall assert, and each such Person hereby waives, any claim against any Indemnitee, on
any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement or the other Loan Documents or any agreement or
instrument contemplated hereby or thereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof. The obligations of the Borrower under this Section shall survive the termination of this
Agreement. 
 (b) The Borrower unconditionally agrees to forever indemnify, defend and hold harmless, and covenants not to sue for any claim
for contribution against, the Administrative Agent and the Lenders for any damages, costs, loss or expense, including without limitation, response, remedial or removal costs and all reasonable fees and disbursements of counsel to any such party,
arising out of any of the following: (i) any presence, release, threatened release or disposal of any hazardous or toxic substance or petroleum by the Borrower or any Guarantor or otherwise occurring on or with respect to its Property (whether
owned or leased), (ii) the operation or violation of any environmental law, whether federal, state, or local, and any regulations promulgated thereunder, by the Borrower or any Guarantor or otherwise occurring on or with respect to its Property
(whether owned or leased), (iii) any claim for personal injury or property damage in connection with the Borrower or any Guarantor or otherwise occurring on or with respect to its Property (whether owned or leased), and (iv) the inaccuracy
or breach of any environmental representation, warranty or covenant by the Borrower or any Guarantor made herein or in any other Loan Document evidencing or securing any Obligations or setting forth terms and conditions applicable thereto or
otherwise relating thereto, except for damages arising from the willful misconduct or gross negligence of the party claiming indemnification. This indemnification shall survive the payment and satisfaction of all Obligations and the termination of
this Agreement, and shall remain in force beyond the expiration of any applicable statute of limitations and payment or satisfaction in full of any single claim under this indemnification. This indemnification shall be binding upon the successors
and assigns of the Borrower and shall inure to the benefit of Administrative Agent and the Lenders directors, officers, employees, agents, and collateral trustees, and their successors and assigns. 
 Section 13.16. Set-off. (a) In addition to any rights now or hereafter granted under applicable law and not by way of limitation of any
such rights, during any Event of Default, each Lender and each subsequent holder of any Obligation is hereby authorized by the Borrower and each Guarantor at any time or from time to time, without notice to the Borrower or such Guarantor or to any
other Person, any such notice being hereby expressly waived, to set-off and to appropriate and to apply any and all deposits (general or special, including, but not limited to, indebtedness evidenced by certificates of deposit, whether matured or
unmatured, but not including trust accounts, and in whatever currency denominated) and any other indebtedness at any time held or owing by that Lender or that subsequent holder to or for the credit or the account of the Borrower or such Guarantor,
whether or not matured, against and on account of 

  

 -78- 

 
the Obligations of the Borrower or such Guarantor to that Lender or that subsequent holder under the Loan Documents, including, but not limited to, all
claims of any nature or description arising out of or connected with the Loan Documents, irrespective of whether or not (a) that Lender or that subsequent holder shall have made any demand hereunder or (b) the principal of or the interest
on the Loans or Notes and other amounts due hereunder shall have become due and payable pursuant to Section 9 and although said obligations and liabilities, or any of them, may be contingent or unmatured. 
 (b) NOTWITHSTANDING THE FOREGOING SUBSECTION (a), AT ANY
TIME THAT THE LOANS OR ANY OTHER OBLIGATION OR HEDGING LIABILITY OR
FUNDS TRANSFER AND DEPOSIT ACCOUNT LIABILITY SHALL BE SECURED BY REAL
PROPERTY LOCATED IN CALIFORNIA, NO LENDER SHALL EXERCISE A RIGHT OF
SETOFF, BANKER’S LIEN OR COUNTERCLAIM OR TAKE ANY COURT OR
ADMINISTRATIVE ACTION OR INSTITUTE ANY PROCEEDING TO ENFORCE ANY PROVISION OF
THIS AGREEMENT OR ANY NOTE THAT IS NOT TAKEN BY THE ADMINISTRATIVE
AGENT OR REQUIRED LENDERS OR APPROVED IN WRITING BY THE ADMINISTRATIVE
AGENT AND REQUIRED LENDERS IF SUCH SETOFF OR ACTION OR PROCEEDING
WOULD OR MIGHT (PURSUANT TO SECTIONS 580a, 580b, 580d AND 726 OF THE CALIFORNIA CODE
OF CIVIL PROCEDURE OR SECTION 2924 OF THE CALIFORNIA CIVIL CODE, IF
APPLICABLE, OR OTHERWISE) AFFECT OR IMPAIR THE VALIDITY, PRIORITY OR ENFORCEABILITY
OF THE LIENS GRANTED TO THE ADMINISTRATIVE AGENT PURSUANT TO THE
COLLATERAL DOCUMENTS OR THE ENFORCEABILITY OF THE NOTES AND OTHER OBLIGATIONS
AND HEDGING LIABILITY AND FUNDS TRANSFER AND DEPOSIT ACCOUNT LIABILITY, AND
ANY ATTEMPTED EXERCISE BY ANY LENDER OF ANY SUCH RIGHT WITHOUT
OBTAINING SUCH CONSENT OF THE ADMINISTRATIVE AGENT SHALL BE NULL AND
VOID. THIS SUBSECTION (b) SHALL BE SOLELY FOR THE BENEFIT OF EACH OF
THE LENDERS HEREUNDER. 
 Section 13.17. Entire Agreement. The Loan Documents
constitute the entire understanding of the parties thereto with respect to the subject matter thereof and any prior agreements, whether written or oral, with respect thereto are superseded hereby. 
 Section 13.18. Governing Law. This Agreement and the other Loan Documents (except as otherwise specified therein), and the rights and duties
of the parties hereto, shall be construed and determined in accordance with the internal laws of the State of Illinois. 
 Section 13.19. Severability of Provisions. Any provision of any Loan Document which is unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such unenforceability without invalidating
the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. All rights, remedies and powers provided in this Agreement and the other Loan Documents may be exercised only to the extent that
the exercise thereof does not violate any applicable mandatory provisions of law, and all the provisions of this Agreement and other Loan Documents are intended to be subject to all applicable mandatory provisions of law which may be controlling and
to be limited to the extent necessary so that they will not render this Agreement or the other Loan Documents invalid or unenforceable. 
 Section 13.20. Excess Interest . Notwithstanding any provision to the contrary contained herein or in any other Loan Document, no such provision shall require the payment or permit the 

  

 -79- 

 
collection of any amount of interest in excess of the maximum amount of interest permitted by applicable law to be charged for the use or detention, or the
forbearance in the collection, of all or any portion of the Loans or other obligations outstanding under this Agreement or any other Loan Document (“Excess Interest”). If any Excess Interest is provided for, or is adjudicated to be
provided for, herein or in any other Loan Document, then in such event (a) the provisions of this Section shall govern and control, (b) neither the Borrower nor any Guarantor or endorser shall be obligated to pay any Excess Interest,
(c) any Excess Interest that the Administrative Agent or any Lender may have received hereunder shall, at the option of the Administrative Agent, be (i) applied as a credit against the then outstanding principal amount of Obligations
hereunder and accrued and unpaid interest thereon (not to exceed the maximum amount permitted by applicable law), (ii) refunded to the Borrower, or (iii) any combination of the foregoing, (d) the interest rate payable hereunder or
under any other Loan Document shall be automatically subject to reduction to the maximum lawful contract rate allowed under applicable usury laws (the “Maximum Rate”), and this Agreement and the other Loan Documents shall be deemed
to have been, and shall be, reformed and modified to reflect such reduction in the relevant interest rate, and (e) neither the Borrower nor any guarantor or endorser shall have any action against the Administrative Agent or any Lender for any
damages whatsoever arising out of the payment or collection of any Excess Interest. Notwithstanding the foregoing, if for any period of time interest on any of Borrower’s Obligations is calculated at the Maximum Rate rather than the applicable
rate under this Agreement, and thereafter such applicable rate becomes less than the Maximum Rate, the rate of interest payable on the Borrower’s Obligations shall remain at the Maximum Rate until the Lenders have received the amount of
interest which such Lenders would have received during such period on the Borrower’s Obligations had the rate of interest not been limited to the Maximum Rate during such period. 
 Section 13.21. Construction. The parties acknowledge and agree that the Loan Documents shall not be construed more favorably in favor of any
party hereto based upon which party drafted the same, it being acknowledged that all parties hereto contributed substantially to the negotiation of the Loan Documents. The provisions of this Agreement relating to Subsidiaries shall only apply during
such times as the Borrower has one or more Subsidiaries. NOTHING CONTAINED HEREIN SHALL BE DEEMED OR CONSTRUED TO
PERMIT ANY ACT OR OMISSION WHICH IS PROHIBITED BY THE TERMS OF
ANY COLLATERAL DOCUMENT, THE COVENANTS AND AGREEMENTS CONTAINED HEREIN BEING IN
ADDITION TO AND NOT IN SUBSTITUTION FOR THE COVENANTS AND AGREEMENTS
CONTAINED IN THE COLLATERAL DOCUMENTS. 
 Section 13.22.
Lender’s Obligations Several. The obligations of the Lenders hereunder are several and not joint. Nothing contained in this Agreement and no action taken by the Lenders pursuant hereto shall be deemed to constitute the Lenders a
partnership, association, joint venture or other entity. 
 Section 13.23. Submission to Jurisdiction; Waiver of Jury Trial. The
Borrower and the Guarantors hereby submit to the nonexclusive jurisdiction of the United States District Court for the Northern District of Illinois and of any Illinois State court sitting in the City of Chicago for purposes of all legal proceedings
arising out of or relating to this Agreement, the other Loan Documents or the transactions contemplated hereby or thereby. The Borrower and the Guarantors irrevocably waive, to the fullest extent permitted by law, any objection which they 

  

 -80- 

 
may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a
court has been brought in an inconvenient forum. THE BORROWER, THE GUARANTORS, THE ADMINISTRATIVE AGENT, AND THE
LENDERS HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY
IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY. 
 Section 13.24. USA Patriot Act. Each Lender that is subject to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”) hereby notifies the
Borrower that pursuant to the requirements of the Act, it is required to obtain, verify, and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such
Lender to identify the Borrower in accordance with the Act. 
 Section 13.25. Confidentiality. Each of the Administrative Agent
and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal
counsel and other advisors to the extent any such Person has a need to know such Information (it being understood that the Persons to whom such disclosure is made will first be informed of the confidential nature of such Information and instructed
to keep such Information confidential, and the Administrative Agent or Lender disclosing such Information remains responsible for any breach of this Section 13.24 by any such parties to whom such Information is disclosed), (b) to the
extent requested by any regulatory authority (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena or similar
legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any suit, action or proceeding relating to this Agreement or any other Loan Document or the
enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section 13.24, to (A) any assignee of or participant in, or any prospective assignee of or
participant in, any of its rights or obligations under this Agreement or (B) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g) with the prior
written consent of the Borrower, (h) to the extent such Information (A) becomes publicly available other than as a result of a breach of this Section 13.24 or (B) becomes available to the Administrative Agent or any Lender on a
nonconfidential basis from a source other than the Borrower or any Subsidiary or any of their directors, officers, employees or agents, including accountants, legal counsel and other advisors, provided that such source is not known by the
Person to whom such source provides such Information to be bound to the Borrower or any Subsidiary or its representatives by agreement, fiduciary duty or otherwise not to disclose such Information, (i) to rating agencies if requested or
required by such agencies in connection with a rating relating to the Loans or Commitments hereunder, or (j) to entities which compile and publish information about the syndicated loan market, provided that only basic information about
the pricing and structure of the transaction evidenced hereby may be disclosed pursuant to this clause (j). In addition to the foregoing provisions of this Section 13.24, each of the Administrative Agent, the Lenders and any other Person which
becomes subject to the provisions of this Section agrees that, to the extent it receives Information prior to public disclosure of the same, it will not trade in securities of the Borrower prior to 48 hours following public disclosure of such
Information. 
 For purposes of this Section, “Information” means all information received from the Borrower or any of its
Subsidiaries or from any other Person on behalf of the Borrower or any of its Subsidiaries relating to the Borrower or any of its Subsidiaries or any of their respective businesses, other than any such information that is available to the
Administrative Agent, any Lender or the L/C Issuer on a nonconfidential basis prior to disclosure by the Borrower or any of its Subsidiaries or from any other Person on behalf of the Borrower or any of its Subsidiaries. 
 [SIGNATURE PAGES TO FOLLOW] 
  

 -81- 

 This Credit Agreement is entered into between us for the uses and purposes hereinabove set forth as of
the date first above written. 
  

			
	 “BORROWER”

	
	 NOBEL LEARNING COMMUNITIES, INC.

		
	By	 	 /s/ Thomas Frank

	Name	 	Thomas Frank
	Title	 	Chief Financial Officer
	
	 “GUARANTORS”

	
	 MERRYHILL SCHOOLS NEVADA, INC.

		
	By	 	 /s/ Thomas Frank

	Name	 	Thomas Frank
	Title	 	President, Assistant Secretary, Treasurer
	
	 NEDI, INC.

		
	By	 	 /s/ Thomas Frank

	Name	 	Thomas Frank
	Title	 	Assistant Treasurer
	
	 THE HOUSTON LEARNING ACADEMY, INC.

		
	By	 	 /s/ Thomas Frank

	Name	 	Thomas Frank
	Title	 	Vice President, Assistant Secretary
	
	 NOBEL LEARNING TECHNOLOGIES, INC.

		
	By	 	 /s/ George Bernstein

	Name	 	George Bernstein
	Title	 	President

  

 S-1 

			
	 NOBEL SCHOOL MANAGEMENT SERVICES,
INC.

		
	By	 	 /s/ Thomas Frank

	Name	 	Thomas Frank
	Title	 	Vice President, Assistant Secretary
	
	 PALADIN ACADEMY, L.L.C.

		
	By:	 	Nobel Learning Communities Inc., its sole member
		
	By	 	 /s/ Thomas Frank

	Name	 	Thomas Frank
	Title	 	Chief Financial Officer
	
	 THE ACTIVITIES CLUB, INC.

		
	By	 	 /s/ Thomas Frank

	Name	 	Thomas Frank
	Title	 	Secretary, Treasurer

  

 S-2 

			
	 “ADMINISTRATIVE AGENT”

	
	 HARRIS N.A., as L/C Issuer, and as Administrative Agent

		
	By	 	 /s/ Mark W. Piekos

	Name:	 	Mark W. Piekos
	Title:	 	Managing Director

  

 S-3 

			
	 “LENDERS”

	
	 BMO CAPITAL MARKETS FINANCING, INC.

		
	By	 	 /s/ Mark W. Piekos

	Name	 	Mark W. Piekos
	Title	 	Managing Director
	
	Address:
	
	111 West Monroe Street, 20th Floor East
	Chicago, Illinois 60603
	Attention:	 	Stephanie Petti
	Telecopy:	 	(312) 293-5041
	Telephone:	 	(312) 461-7790

  

 S-4 

			
	 CITIZENS BANK OF PENNSYLVANIA

		
	By	 	 /s/ Timothy A. Merriman

	Name	 	Timothy A. Merriman
	Title	 	Senior Vice President
	
	Address:
	
	 3025 Chemical Road, Suite 300
 Plymouth Meeting, Pennsylvania 19462

	Attention:	 	Timothy A. Merriman
	Telecopy:	 	(610) 941-4136
	Telephone:	 	(610) 941-5328

  

 S-5 

			
	 MANUFACTURERS AND TRADERS TRUST
COMPANY

		
	By	 	 /s/ David Mills

	Name	 	David Mills
	Title	 	Vice President
	
	Address:
	
	601 Dresher Road
	Horsham, Pennsylvania 19044
	Attention:	 	David Mills
	Telecopy:	 	(215) 956-7074
	Telephone:	 	(215) 956-7020

  

 S-6 

 EXHIBIT A 
 NOTICE OF PAYMENT REQUEST 
 [Date] 
 [Name of Lender] 
 [Address] 
 Attention: 
 Reference is made to the Amended and Restated Credit Agreement, dated as of October 30, 2006, among Nobel Learning Communities, Inc., the Guarantors party thereto, the Lenders party thereto, and Harris N.A., as
Administrative Agent (as extended, renewed, amended or restated from time to time, the “Credit Agreement”). Capitalized terms used herein and not defined herein have the meanings assigned to them in the Credit Agreement. [The
Borrower has failed to pay its Reimbursement Obligation in the amount of $            . Your Revolver Percentage of the unpaid Reimbursement Obligation is
$            ] or [                     has been required to return a
payment by the Borrower of a Reimbursement Obligation in the amount of $            . Your Revolver Percentage of the returned Reimbursement Obligation is
$            .] 
  

			
	Very truly yours,
	
	HARRIS N.A., as L/C Issuer
		
	By	 	  

	Name	 	  

	Title	 	  

 EXHIBIT B 
 NOTICE OF BORROWING 
 Date: ,
                ,          
  

	To:	Harris N.A., as Administrative Agent for the Lenders parties to the Amended and Restated Credit Agreement dated as of October 30, 2006 (as extended, renewed, amended or
restated from time to time, the “Credit Agreement”), among Nobel Learning Communities, Inc., the Guarantor’s party thereto, certain Lenders which are signatories thereto, and Harris N.A., as Administrative Agent

 Ladies and Gentlemen: 
 The undersigned, Nobel Learning Communities, Inc., (the “Borrower”), refers to the Credit Agreement, the terms defined therein being used herein as therein defined, and hereby gives you notice
irrevocably, pursuant to Section 1.5 of the Credit Agreement, of the Borrowing specified below: 
 1. The Business Day of
the proposed Borrowing is                 ,         . 
 2. The aggregate amount of the proposed Borrowing is $            .

 3. The Borrowing is being advanced under the Revolving Credit. 
 4. The Borrowing is to be comprised of $             of [Base Rate]
[Eurodollar] Loans. 
 [5. The duration of the Interest Period for the Eurodollar Loans included in the Borrowing shall
be                  months.] 
 The undersigned
hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed Borrowing, before and after giving effect thereto and to the application of the proceeds therefrom: 
 (a) the representations and warranties of the Borrower contained in Section 6 of the Credit Agreement are true and correct as though
made on and as of such date (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date); and 
 (b) no Default or Event of Default has occurred and is continuing or would result from such proposed Borrowing. 
  

			
	 NOBEL LEARNING COMMUNITIES, INC.

		
	By	 	  

	Name	 	  

	Title	 	  

 EXHIBIT C 
 NOTICE OF CONTINUATION/CONVERSION 
 Date:                 ,          
  

	To:	Harris N.A., as Administrative Agent for the Lenders parties to the Amended and Restated Credit Agreement dated as of October 30, 2006 (as extended, renewed, amended or
restated from time to time, the “Credit Agreement”), among Nobel Learning Communities, Inc., the Guarantors party thereto, certain Lenders which are signatories thereto, and Harris N.A., as Administrative Agent

 Ladies and Gentlemen: 
 The undersigned, Nobel Learning Communities, Inc. (the “Borrower”), refers to the Credit Agreement, the terms defined therein being used herein as therein defined, and hereby gives you notice
irrevocably, pursuant to Section 1.5 of the Credit Agreement, of the [conversion] [continuation] of the Loans specified herein, that: 
 1. The conversion/continuation Date is                 ,         . 
 2. The aggregate amount of the Revolving Loans to be [converted] [continued] is
$            . 
 3. The Loans are to be [converted into]
[continued as] [Eurodollar] [Base Rate] Loans. 
 4. [If applicable:] The duration of the Interest Period for the
Revolving Loans included in the [conversion] [continuation] shall be                 months. 
 The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the proposed conversion/continuation
date, before and after giving effect thereto and to the application of the proceeds therefrom: 
 (a) the representations and
warranties of the Borrower contained in Section 6 of the Credit Agreement are true and correct as though made on and as of such date (except to the extent such representations and warranties relate to an earlier date, in which case they are
true and correct as of such date); provided, however, that this condition shall not apply to the conversion of an outstanding Eurodollar Loan to a Base Rate Loan; and 
 (b) no Default or Event of Default has occurred and is continuing, or would result from such proposed [conversion] [continuation].

  

			
	 NOBEL LEARNING COMMUNITIES, INC.

		
	By	 	  

	Name	 	  

	Title	 	  

 EXHIBIT D-1 
 REVOLVING NOTE 
  

			
	U.S. $            	  	                    , 2006

 FOR VALUE RECEIVED, the undersigned,
NOBEL LEARNING COMMUNITIES, INC., a Delaware corporation (the “Borrower”), hereby promises to pay to the order of
                 (the “Lender”) on the Revolving Credit Termination Date of the hereinafter defined Credit Agreement, at the principal office of
Harris N.A., as Administrative Agent, in Chicago, Illinois, in immediately available funds, the principal sum of              Dollars
($            ) or, if less, the aggregate unpaid principal amount of all Revolving Loans made by the Lender to the Borrower pursuant to the Credit Agreement, together with
interest on the principal amount of each Revolving Loan from time to time outstanding hereunder at the rates, and payable in the manner and on the dates, specified in the Credit Agreement. 
 This Note is one of the Revolving Notes referred to in the Amended and Restated Credit Agreement dated as of October 30, 2006, among the Borrower,
the Guarantors party thereto, the Lenders party thereto, and Harris N.A., as Administrative Agent for the Lenders (as extended, renewed, amended or restated from time to time, the “Credit Agreement”), and this Note and the holder
hereof are entitled to all the benefits and security provided for thereby or referred to therein, to which Credit Agreement reference is hereby made for a statement thereof. All defined terms used in this Note, except terms otherwise defined herein,
shall have the same meaning as in the Credit Agreement. This Note shall be governed by and construed in accordance with the internal laws of the State of Illinois. 
 Voluntary prepayments may be made hereon, certain prepayments are required to be made hereon, and this Note may be declared due prior to the expressed maturity hereof, all in the events, on the terms and in the manner
as provided for in the Credit Agreement. 
 The Borrower hereby waives demand, presentment, protest or notice of any kind hereunder.

  

			
	 NOBEL LEARNING COMMUNITIES, INC.

		
	By	 	  

	Name	 	  

	Title	 	  

 EXHIBIT D-2 
 SWING NOTE 
  

			
	U.S. $            	  	                    , 2006

 FOR VALUE RECEIVED, the undersigned,
NOBEL LEARNING COMMUNITIES, INC., a Delaware corporation (the “Borrower”), hereby promises to pay to the order of
             (the “Lender”) on the Revolving Credit Termination Date of the hereinafter defined Credit Agreement, at the principal office of Harris N.A., as
Administrative Agent, in Chicago, Illinois, in immediately available funds, the principal sum of              Dollars
($            ) or, if less, the aggregate unpaid principal amount of all Swing Loans made by the Lender to the Borrower pursuant to the Credit Agreement, together with interest
on the principal amount of each Swing Loan from time to time outstanding hereunder at the rates, and payable in the manner and on the dates, specified in the Credit Agreement. 
 This Note is the Swing Note referred to in the Amended and Restated Credit Agreement dated as of October 30, 2006, among the Borrower, the
Guarantors party thereto, the Lenders party thereto, and Harris N.A., as Administrative Agent for the Lenders (as extended, renewed, amended or restated from time to time, the “Credit Agreement”), and this Note and the holder
hereof are entitled to all the benefits and security provided for thereby or referred to therein, to which Credit Agreement reference is hereby made for a statement thereof. All defined terms used in this Note, except terms otherwise defined herein,
shall have the same meaning as in the Credit Agreement. This Note shall be governed by and construed in accordance with the internal laws of the State of Illinois. 
 Voluntary prepayments may be made hereon, certain prepayments are required to be made hereon, and this Note may be declared due prior to the expressed maturity hereof, all in the events, on the terms and in the manner
as provided for in the Credit Agreement. 
 The Borrower hereby waives demand, presentment, protest or notice of any kind hereunder.

  

			
	 NOBEL LEARNING COMMUNITIES, INC.

		
	By	 	  

	Name	 	  

	Title	 	  

 EXHIBIT E 
 NOBEL LEARNING COMMUNITIES, INC. 
 COMPLIANCE CERTIFICATE 
  

	To:	Harris N.A., as Administrative Agent under, and the Lenders party to, the Amended and Restated Credit Agreement described below 

 This Compliance Certificate is furnished to the Administrative Agent and the Lenders pursuant to that certain Amended and Restated Credit Agreement dated
as of October 30, 2006, among us and the Guarantors party thereto (as extended, renewed, amended or restated from time to time, the “Credit Agreement”). Unless otherwise defined herein, the terms used in this Compliance
Certificate have the meanings ascribed thereto in the Credit Agreement. 
 THE UNDERSIGNED
HEREBY CERTIFIES THAT: 
 1. I am the duly elected
                     of Nobel Learning Communities, Inc.; 
 2. I have reviewed the terms of the Credit Agreement and I have made, or have caused to be made under my supervision, a detailed review of the transactions and conditions of the Borrower and its Subsidiaries during
the accounting period covered by the attached financial statements; 
 3. The examinations described in paragraph 2 did not disclose,
and I have no knowledge of, the existence of any condition or the occurrence of any event which constitutes a Default or Event of Default during or at the end of the accounting period covered by the attached financial statements or as of the date of
this Compliance Certificate, except as set forth below; 
 4. The financial statements required by Section 8.5 of the Credit Agreement
and being furnished to you concurrently with this Compliance Certificate are true, correct and complete as of the date and for the periods covered thereby; and 
 5. The Schedule I hereto sets forth financial data and computations evidencing the Borrower’s compliance with certain covenants of the Credit Agreement, all of which data and computations are, to the best of
my knowledge, true, complete and correct and have been made in accordance with the relevant Sections of the Credit Agreement. 

 Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the
condition or event, the period during which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition or event: 

	
	  

	  

	  

 The foregoing certifications, together with the computations set forth in Schedule I hereto
and the financial statements delivered with this Certificate in support hereof, are made and delivered this      day of
                 20    . 
  

			
	 NOBEL LEARNING COMMUNITIES, INC.

		
	By	 	  

	Name	 	  

	Title	 	  

  

 -2- 

 SCHEDULE I 
 TO COMPLIANCE CERTIFICATE 
 NOBEL LEARNING COMMUNITIES, INC. 
 COMPLIANCE
CALCULATIONS 
 FOR CREDIT AGREEMENT DATED AS
OF OCTOBER 30, 2006 
 CALCULATIONS AS OF
                ,          
  

			
	 A.     Total Funded Debt/EBITDA Ratio (Section 8.21(a))
	  	
	 1.      Total Funded Debt
	  	$            
	 2.      Net Income for past 4 quarters
	  	$            
	 3.      Interest Expense for past 4 quarters
	  	$            
	 4.      Income taxes for past 4 quarters
	  	$            
	 5.      Depreciation and Amortization Expense for past 4 quarters
	  	$            
	 6.      Non-cash compensation expense
	  	$            
	 7.      Scheduled EBITDA Adjustment
	  	$            
	 8.      Interest income and extraordinary gains for past 4 quarters
	  	$            
	 9.      Sum of Lines A2, A3, A4, A5, A6 and A7, minus Line A8 (“EBITDA”)
	  	$            
	 10.    Ratio of Line A1 to A9
	  	        :1.0
	 11.    Line A10 ratio must not exceed
	  	        :1.0
	 12.    The Borrower is in compliance (circle yes or no)
	  	yes/no
	 B,     Minimum EBITDA (Section 8.21(b))
	  	
	 1.      EBITDA for past 4 quarters (from Line A9)
	  	$            
	 2.      Minimum Required EBITDA per Section 8.21(b)
	  	$            
	 3.      75% of EBITDA of each Permitted Acquisition1
	  	$            
	 4.      EBITDA shall not be less than (sum of Line B2 and B3)
	  	$            
	 5.      The Borrower is in compliance (circle yes or no)
	  	yes/no

	1	Excluding the Discovery Acquisition. 

			
	 C.     Fixed Charge Coverage Ratio (Section 8.21(c))
	  	
	 1.      EBITDA for past 4 quarters (from Line A9)
	  	$            
	 2.      Net Capital Expenditures for past 4 quarters
	  	$            
	 3.      Difference of Line C1 minus Line C2
	  	$            
	 4.      Cash Principal payments for past 4 quarters
	  	$            
	 5.      Cash Interest Expense for past 4 quarters
	  	$            
	 6.      Cash Dividends for past 4 quarters
	  	$            
	 7.      Cash Income taxes for past 4 quarters
	  	$            
	 8.      Sum of Lines C4, C5, C6, and C7
	  	$            
	 9.      Ratio of Line C3 to Line C8
	  	        :1.0
	 10.    Line C9 ratio must not be less than
	  	        :1.0
	 11.    The Borrower is in compliance (circle yes or no)
	  	yes/no
	 D.     Capital Expenditures (Section 8.21(d))
	  	
	 1.      Year-to-date Capital Expenditures
	  	$            
	 2.      Year-to-date Capital Expenditures financed with proceeds of an Event of Loss
	  	$            
	 3.      Difference of Line D1 minus Line D2
	  	$            
	 4.      Maximum permitted amount2
	  	$            
	 5.      The Borrower is in compliance (circle yes or no)
	  	yes/no

	2	Increased by up to 50% of unused CapEx from previous fiscal year. 

  

 -2- 

 EXHIBIT F 
 ADDITIONAL GUARANTOR SUPPLEMENT 
                 ,          
 Harris N.A., as Administrative Agent for the Lenders named in the Amended and Restated Credit Agreement dated as of October 30, 2006, among Nobel Learning Communities, Inc., as Borrower, the Guarantors referred
to therein, the Lenders from time to time party thereto, and the Administrative Agent (as extended, renewed, amended or restated from time to time, the “Credit Agreement”) 
 Ladies and Gentlemen: 
 Reference is made to the Credit Agreement described above. Terms not defined herein which are defined in the Credit Agreement shall have for the purposes hereof the meaning provided therein. 
 The undersigned, [name of Subsidiary Guarantor], a [jurisdiction of incorporation or organization] hereby elects to be a
“Guarantor” for all purposes of the Credit Agreement, effective from the date hereof. The undersigned confirms that the representations and warranties set forth in Section 6 of the Credit Agreement are true and correct as to
the undersigned as of the date hereof and the undersigned shall comply with each of the covenants set forth in Section 8 of the Credit Agreement applicable to it. 
 Without limiting the generality of the foregoing, the undersigned hereby agrees to perform all the obligations of a Guarantor under, and to be bound in all respects by the terms of, the Credit Agreement, including
without limitation Section 12 thereof, to the same extent and with the same force and effect as if the undersigned were a signatory party thereto. 
 The undersigned acknowledges that this Agreement shall be effective upon its execution and delivery o by the undersigned to the Administrative Agent, and it shall not be necessary for the Administrative Agent or any
Lender, or any of their Affiliates entitled to the benefits hereof, to execute this Agreement or any other acceptance hereof. This Agreement shall be construed in accordance with and governed by the internal laws of the State of Illinois.

  

			
	Very truly yours,
	
	 [NAME OF SUBSIDIARY GUARANTOR]

		
	By	 	  

	Name	 	  

	Title	 	  

 EXHIBIT G 
 ASSIGNMENT AND ACCEPTANCE 
 DATED                 ,          
 Reference is made to the Amended and Restated Credit Agreement dated as of October 30, 2006 (as extended, renewed, amended or restated from time to
time, the “Credit Agreement”) among Nobel Learning Communities, Inc., the Guarantors party thereto, the Lenders party thereto, and Harris N.A., as Administrative Agent for the Lenders (the “Administrative
Agent”). Terms defined in the Credit Agreement are used herein with the same meaning. 
                          (the “Assignor”) and
                         (the “Assignee”) agree as follows: 
 1. The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases and assumes from the Assignor, the amount and
specified percentage interest shown on Annex I hereto of the Assignor’s rights and obligations under the Credit Agreement as of the Effective Date (as defined below), including, without limitation, the Assignor’s Commitments as in
effect on the Effective Date and the Loans, if any, owing to the Assignor on the Effective Date and the Assignor’s Revolver Percentage of any outstanding L/C Obligations. 
 2. The Assignor (i) represents and warrants that it is the legal and beneficial owner of the interest being assigned by it hereunder
and that such interest is free and clear of any adverse claim, lien, or encumbrance of any kind; (ii) makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in
connection with the Credit Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement or any other instrument or document furnished pursuant thereto; and (iii) makes no
representation or warranty and assumes no responsibility with respect to the financial condition of the Borrower or any Subsidiary or the performance or observance by the Borrower or any Subsidiary of any of their respective obligations under the
Credit Agreement or any other instrument or document furnished pursuant thereto. 
 3. The Assignee (i) confirms that it
has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered to the Lenders pursuant to Section 8.5(a) and (b) thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this Assignment and Acceptance; (ii) agrees that it will, independently and without reliance upon the Administrative Agent, the Assignor or any other Lender and based on
such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement; (iii) appoints and authorizes the Administrative Agent to take such
action as Administrative Agent on its behalf and to exercise such powers under the Credit 

 
Agreement and the other Loan Documents as are delegated to the Administrative Agent by the terms thereof, together with such powers as are reasonably
incidental thereto; (iv) agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender; and (v) specifies as its lending office
(and address for notices) the offices set forth on its Administrative Questionnaire. 
 4. As consideration for the assignment
and sale contemplated in Annex I hereof, the Assignee shall pay to the Assignor on the Effective Date in Federal funds the amount agreed upon between them. It is understood that commitment and/or letter of credit fees accrued to the Effective
Date with respect to the interest assigned hereby are for the account of the Assignor and such fees accruing from and including the Effective Date are for the account of the Assignee. Each of the Assignor and the Assignee hereby agrees that if it
receives any amount under the Credit Agreement which is for the account of the other party hereto, it shall receive the same for the account of such other party to the extent of such other party’s interest therein and shall promptly pay the
same to such other party. 
 5. The effective date for this Assignment and Acceptance shall be
                 (the “Effective Date”). Following the execution of this Assignment and Acceptance, it will be delivered to the
Administrative Agent for acceptance and recording by the Administrative Agent and, if required, the Borrower. 
 6. Upon such
acceptance and recording, as of the Effective Date, (i) the Assignee shall be a party to the Credit Agreement and, to the extent provided in this Assignment and Acceptance, have the rights and obligations of a Lender thereunder and
(ii) the Assignor shall, to the extent provided in this Assignment and Acceptance, relinquish its rights and be released from its obligations under the Credit Agreement. 
 7. Upon such acceptance and recording, from and after the Effective Date, the Administrative Agent shall make all payments under the
Credit Agreement in respect of the interest assigned hereby (including, without limitation, all payments of principal, interest and commitment fees with respect thereto) to the Assignee. The Assignor and Assignee shall make all appropriate
adjustments in payments under the Credit Agreement for periods prior to the Effective Date directly between themselves. 
  

 -2- 

 8. This Assignment and Acceptance shall be governed by, and construed in accordance with,
the laws of the State of Illinois. 
  

			
	 [ASSIGNOR LENDER]

		
	By	 	  

	Name	 	  

	Title	 	  

	
	 [ASSIGNEE LENDER]

		
	By	 	  

	Name	 	  

	Title	 	  

 Accepted and consented this 
      day of
                     
  

			
	 NOBEL LEARNING COMMUNITIES, INC.

		
	 By
	 	  

	 Name
	 	  

	 Title
	 	  

	
	 Accepted and consented to by the Administrative Agent and L/C Issuer this      day of
            

	
	 HARRIS N.A., as Administrative Agent and L/C Issuer

		
	 By
	 	  

	 Name
	 	  

	 Title
	 	  

  

 -3- 

 ANNEX I 
 TO ASSIGNMENT AND ACCEPTANCE 
 The
assignee hereby purchases and assumes from the assignor the following interest in and to all of the Assignor’s rights and obligations under the Credit Agreement as of the effective date. 
  

										
	 FACILITY ASSIGNED
	  	AGGREGATE
COMMITMENT/LOANS
FOR ALL LENDERS	  	AMOUNT
OF
COMMITMENT/LOANS
ASSIGNED	  	PERCENTAGE
ASSIGNED
OF
COMMITMENT/LOANS	 
	 Revolving Credit
	  	$	            	  	$	            	  	            	%

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