Document:

Form of Credit Agreement

  
 Exhibit 10.6 
  
 

 
  
 CREDIT AGREEMENT 
  
 dated as of 
  
 June     , 2004 
  
 among 
  
 JACKSON HEWITT TAX SERVICE INC., 
 as Parent,

  
 JACKSON HEWITT INC., 
 as Borrower, 
  
 THE LENDERS PARTY HERETO 
  
 and 
  
 JPMORGAN CHASE BANK,

 as Administrative Agent 
  

  
 J.P. MORGAN SECURITIES INC., 
 as Sole Bookrunner and Sole Lead Arranger 
  

  

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

	
	ARTICLE I
	
	Definitions
			
	 Section 1.01
	 	Defined Terms.	  	1
	 Section 1.02
	 	Classification of Loans and Borrowings.	  	18
	 Section 1.03
	 	Terms Generally.	  	18
	 Section 1.04
	 	Accounting Terms; GAAP.	  	18
	
	ARTICLE II
	
	The Credits
			
	 Section 2.01
	 	Commitments	  	19
	 Section 2.02
	 	Loans and Borrowings	  	19
	 Section 2.03
	 	Requests for Borrowings	  	19
	 Section 2.04
	 	Letters of Credit	  	20
	 Section 2.05
	 	Funding of Borrowings	  	24
	 Section 2.06
	 	Interest Elections	  	25
	 Section 2.07
	 	Termination and Reduction of Commitments	  	26
	 Section 2.08
	 	Repayment of Loans; Evidence of Debt	  	26
	 Section 2.09
	 	Prepayment of Loans	  	27
	 Section 2.10
	 	Fees	  	27
	 Section 2.11
	 	Interest	  	29
	 Section 2.12
	 	Alternate Rate of Interest	  	29
	 Section 2.13
	 	Increased Costs	  	30
	 Section 2.14
	 	Break Funding Payments	  	31
	 Section 2.15
	 	Taxes	  	31
	 Section 2.16
	 	Payments Generally; Pro Rata Treatment; Sharing of Set-offs	  	33
	 Section 2.17
	 	Mitigation Obligations; Replacement of Lenders	  	35
	
	ARTICLE III
	
	Representations and Warranties
			
	 Section 3.01
	 	Organization; Powers	  	36
	 Section 3.02
	 	Authorization; Enforceability	  	36
	 Section 3.03
	 	Governmental Approvals; No Conflicts	  	36
	 Section 3.04
	 	Financial Condition; No Material Adverse Change	  	36
	 Section 3.05
	 	Properties	  	36
	 Section 3.06
	 	Litigation and Environmental Matters	  	37
	 Section 3.07
	 	Compliance with Laws and Agreements; No Default	  	37
	 Section 3.08
	 	Investment and Holding Company Status	  	37

  

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	 Section 3.09
	 	Taxes	  	38
	 Section 3.10
	 	ERISA	  	38
	 Section 3.11
	 	Solvency	  	38
	 Section 3.12
	 	Use of Proceeds	  	38
	 Section 3.13
	 	Margin Regulations	  	38
	 Section 3.14
	 	Disclosure	  	38
	
	ARTICLE IV
	
	Conditions
			
	 Section 4.01
	 	Effective Date	  	39
	 Section 4.02
	 	Each Credit Event	  	41
	
	ARTICLE V
	
	Affirmative Covenants
			
	 Section 5.01
	 	Financial Statements; Ratings Change and Other Information	  	42
	 Section 5.02
	 	Notices of Material Events	  	43
	 Section 5.03
	 	Existence; Conduct of Business	  	43
	 Section 5.04
	 	Payment of Obligations	  	44
	 Section 5.05
	 	Maintenance of Properties; Insurance	  	44
	 Section 5.06
	 	Books and Records; Inspection Rights	  	44
	 Section 5.07
	 	Compliance with Laws and Contracts	  	44
	 Section 5.08
	 	Compliance with Environmental Laws	  	44
	 Section 5.09
	 	Use of Proceeds	  	44
	 Section 5.10
	 	New Material Subsidiaries	  	45
	
	ARTICLE VI
	
	Negative Covenants
			
	 Section 6.01
	 	Maximum Consolidated Leverage Ratio	  	45
	 Section 6.02
	 	Minimum Consolidated Fixed Charge Coverage Ratio	  	45
	 Section 6.03
	 	Indebtedness	  	46
	 Section 6.04
	 	Liens	  	47
	 Section 6.05
	 	Fundamental Changes	  	47
	 Section 6.06
	 	Investments, Loans, Advances, Guarantees and Acquisitions	  	48
	 Section 6.07
	 	Hedging Agreements	  	49
	 Section 6.08
	 	Restricted Payments	  	49
	 Section 6.09
	 	Transactions with Affiliates	  	50
	 Section 6.10
	 	Restrictive Agreements	  	50
	 Section 6.11
	 	Transactions with Franchisees	  	50
	 Section 6.12
	 	Sale and Leasebacks	  	50
	 Section 6.13
	 	Accounting Changes	  	51

  

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	ARTICLE VII
	
	Events of Default
			
	 ARTICLE VII
	  	Events of Default	  	51
	
	ARTICLE VIII
	
	The Administrative Agent
			
	 ARTICLE VIII
	  	The Administrative Agent	  	53
	
	ARTICLE IX
	
	Miscellaneous
			
	 Section 9.01
	  	Notices	  	55
	 Section 9.02
	  	Waivers; Amendments	  	56
	 Section 9.03
	  	Expenses; Indemnity; Damage Waiver	  	57
	 Section 9.04
	  	Successors and Assigns	  	58
	 Section 9.05
	  	Survival	  	61
	 Section 9.06
	  	Counterparts; Integration; Effectiveness	  	62
	 Section 9.07
	  	Severability	  	62
	 Section 9.08
	  	Right of Setoff	  	62
	 Section 9.09
	  	Governing Law; Jurisdiction; Consent to Service of Process	  	62
	 Section 9.10
	  	WAIVER OF JURY TRIAL	  	63
	 Section 9.11
	  	Headings	  	63
	 Section 9.12
	  	Confidentiality	  	63
	 Section 9.13
	  	Interest Rate Limitation	  	64
	 Section 9.14
	  	USA Patriot Act	  	64

  
 SCHEDULES: 
  
 Schedule 2.01 — Commitments 
 Schedule 6.03 — Existing Indebtedness 
 Schedule 6.04 — Existing
Liens 
 Schedule 6.06 — Existing Investments 
 Schedule 6.09
— Transactions with Affiliates 
 Schedule 6.10 — Existing Restrictions 
  
 EXHIBITS: 
  

Exhibit A — Form of Assignment and Assumption 
 Exhibit B — Form
of Guarantee 
 Exhibit C-1 — Form of Opinion of Borrower’s Counsel 
 Exhibit C-2 — Form of Opinion of Piper Rudnick LLP 
  

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 CREDIT AGREEMENT dated as of June     , 2004, among JACKSON HEWITT TAX SERVICE
INC., a Delaware corporation (the “Parent”), JACKSON HEWITT INC., a Virginia corporation (the “Borrower”), the LENDERS from time to time party hereto (the “Lenders”), and JPMORGAN CHASE BANK, as
Administrative Agent (as amended, restated, supplemented or otherwise modified, the “Agreement”). The parties hereto agree as follows. 
  
 ARTICLE I 
  
 Definitions 
  
 Section 1.01 Defined Terms. 
  
 As used in this
Agreement, the following terms have the meanings specified below: 
  
 “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate. 
  
 “Acquisition” means (a) an investment (through the
acquisition of Equity Interests or otherwise) by the Parent or any Subsidiary of the Parent in any other Person pursuant to which such Person shall become a Subsidiary of the Parent or shall be merged with or into the Parent or any Subsidiary of the
Parent, or (b) the acquisition (by purchase, merger, consolidation or otherwise) by the Parent or any Subsidiary of the Parent of the assets of any Person which constitute all or substantially all of the assets of such Person, any division or line
of business of such Person or any other properties or assets of such Person other than in the ordinary course of business. 
  
 “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, an interest rate per annum (rounded
upwards, if necessary, to the next  1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by
(b) the Statutory Reserve Rate. 
  
 “Administrative
Agent” means JPMorgan Chase Bank, in its capacity as administrative agent for the Lenders hereunder. 
  
 “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent. 
  
 “Affiliate” means, with respect to any Person, any other
Person which, directly or indirectly, controls, is controlled by or is under common control with such Person. A Person shall be deemed to be “controlled by” any other Person if such other Person possesses, directly or indirectly, power (a)
to vote 10% or more of the securities (on a fully diluted basis) of such Person having ordinary voting power for the election of directors or managing general partners; or (b) to direct or cause the direction of the management and policies of such
Person whether by contract or otherwise. It is understood and agreed that no officer or director of the Parent, the Borrower or any of their respective Subsidiaries in such capacity or any Franchisee in such 
  

 capacity shall be deemed to be an Affiliate of the Parent, the Borrower or any of their respective Subsidiaries.

  
 “Alternate Base Rate” means, for any day, a
rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Base CD Rate in effect on such day plus 1% and (c) the Federal Funds Effective Rate in effect on such day plus 1⁄2 of 1%. Any change in the Alternate Base
Rate due to a change in the Prime Rate, the Base CD Rate or the Federal Funds Effective Rate shall be effective from and including the effective date of such change in the Prime Rate, the Base CD Rate or the Federal Funds Effective Rate,
respectively. 
  
 “Applicable Percentage” means,
with respect to any Lender, the percentage of the total Commitments represented by such Lender’s Commitment. If the Commitments have terminated or expired, the Applicable Percentages shall be determined based upon the Commitments most recently
in effect, giving effect to any assignments. 
  
 “Applicable Rate” means, for any day, (a) with respect to any ABR Loan, 0.25% per annum and (b) with respect to any Eurodollar Loan, 1.25% per annum. 
  
 “Approved Fund” has the meaning assigned to such term in Section 9.04. 
  
 “Assessment Rate” means, for any day, the annual assessment
rate in effect on such day that is payable by a member of the Bank Insurance Fund classified as “well-capitalized” and within supervisory subgroup “B” (or a comparable successor risk classification) within the meaning of 12
C.F.R. Part 327 (or any successor provision) to the Federal Deposit Insurance Corporation for insurance by such Corporation of time deposits made in dollars at the offices of such member in the United States; provided that if, as a result of
any change in any law, rule or regulation, it is no longer possible to determine the Assessment Rate as aforesaid, then the Assessment Rate shall be such annual rate as shall be determined by the Administrative Agent to be representative of the cost
of such insurance to the Lenders. 
  
 “Assignment and
Assumption” means an assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit A or
any other form approved by the Administrative Agent. 
  
 “Availability Period” means the period from and including the Effective Date to but excluding the earlier of the Maturity Date and the date of termination of the Commitments. 
  
 “Base CD Rate” means the sum of (a) the Three-Month
Secondary CD Rate multiplied by the Statutory Reserve Rate plus (b) the Assessment Rate. 
  
 “Board” means the Board of Governors of the Federal Reserve System of the United States of America. 
  
 “Borrower” means Jackson Hewitt Inc., a Virginia corporation. 
  
 “Borrowing” means Loans of the same Type, made, converted or continued on the same date and, in the case of
Eurodollar Loans, as to which a single Interest Period is in effect. 
  

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 “Borrowing Request” means a request by the Borrower for a Borrowing in accordance with
Section 2.03. 
  
 “Business Day” means any day
that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed; provided that, when used in connection with a Eurodollar Loan, the term “Business Day”
shall also exclude any day on which banks are not open for dealings in dollar deposits in the London interbank market. 
  
 “Calculation Date” means the last day of each fiscal quarter of the Borrower. 
  
 “Capital Lease Obligations” of any Person means the
obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as
capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP. 
  
 “Change in Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or of
record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof), of Equity Interests representing more than 30% of the
aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Parent; (b) occupation of a majority of the seats (other than vacant seats) on the board of directors of the Parent by Persons who were neither (i)
nominated by the board of directors of the Parent nor (ii) appointed by directors so nominated; or (c) the failure of the Parent to own directly or indirectly 100% of the issued and outstanding Equity Interests of the Borrower. 
  
 “Change in Law” means (a) the adoption of any law, rule or
regulation after the date of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Agreement or (c) compliance by any Lender or the Issuing
Bank (or, for purposes of Section 2.13(b), by any lending office of such Lender or by such Lender’s or the Issuing Bank’s holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement. 
  
 “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
  
 “Commitment” means, with respect to each Lender, the commitment of such Lender to make Loans and to acquire participations in Letters of
Credit hereunder, expressed as an amount representing the maximum aggregate amount of such Lender’s Revolving Credit Exposure hereunder, as such commitment may be (a) increased pursuant to Section 2.01(b), (b) reduced from time to time pursuant
to Section 2.07 and (c) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04. The initial amount of each Lender’s Commitment is set forth on Schedule 2.01, or in the Assignment and
Assumption pursuant to which such Lender shall have assumed its Commitment, as applicable. The initial aggregate amount of the Lenders’ Commitments is $100,000,000. 
  

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 “Commitment Letter” means the Senior Credit Facility Commitment Letter dated as of April
22, 2004 from the Administrative Agent and JP Morgan Securities Inc. to, and accepted and agreed to by, the Borrower. 
  
 “Confidential Information” means information concerning each of the Parent, the Borrower or their respective Affiliates which is
non-public, confidential or proprietary in nature, or any information that is marked or designated confidential by or on behalf of the Borrower, which is furnished to any Lender by the Borrower or any of its Affiliates directly or through the
Administrative Agent in connection with this Agreement or the transactions contemplated hereby (at any time on, before or after the date hereof) together with all analysis, compilations or other materials prepared by any Lender or its respective
directors, officers, employees, agents, auditors, consultants or advisors which contain or otherwise reflect such information.  
  
 “Consolidated EBITDA” means, for any period, Consolidated Net Income (excluding any consolidated net income resulting from any Office
Acquisition or Franchisee Expansion occurring during such period) after eliminating extraordinary gains and losses, and unusual items, plus, without duplication, (a) taxes, (b) depreciation and amortization, (c) Consolidated Interest Expense, (d)
other non-cash charges, (e) any amount attributable to any non-recurring item including the Litigation Settlement, but excluding any cash payments made in such period with respect to any non-recurring item, in the case of clauses (a) through (e) to
the extent deducted for the computation of consolidated net income for such period, and (f)(1) if any Office Acquisition occurred during such period, the product of (A) the amount of the total revenues of such Office for the most recently completed
period of four consecutive calendar quarters prior to the date of such Office Acquisition, and (B) the average EBITDA Margin attributable to all Office Acquisitions made by the Borrower during the fiscal year preceding the year in which such Office
Acquisition occurred; and (2) if any Franchisee Expansion occurred during such period, the product of (A) the royalty rate currently in effect for such Franchisee under the applicable franchise agreement and (B) the amount of the total revenue of
such Office for the most recently completed period of four consecutive calendar quarters prior to the date of such Franchisee Expansion; provided that the aggregate amount included in Consolidated EBITDA pursuant to clause (f) shall not
exceed 5% of Consolidated EBITDA calculated without giving effect to clause (f). 
  
 In addition to, and, without limitation of the foregoing, for purposes of this definition, “Consolidated EBITDA” shall be calculated on the Calculation Date after giving effect on a pro forma basis for the
period of such calculation to any EBITDA attributable to the assets which are the subject of an Acquisition (other than any Office Acquisition or Franchisee Expansion) during the Four Quarter Period, as if such Acquisition occurred on the first day
of such Four Quarter Period. 
  
 “Consolidated Fixed
Charges” means, for any period, the sum of (a) Consolidated Interest Expense for such period and (b) regular quarterly dividends paid during such period in respect of the Parent’s common stock. On any Calculation Date, the Consolidated
Fixed Charge Coverage Ratio will be calculated after giving effect on a pro forma basis for the applicable Four Quarter Period to the incurrence of any Covenant Indebtedness in connection with an Office Acquisition, Franchisee Expansion or other
Acquisition. For purposes of determining “Consolidated Fixed Charges,” (1) interest on outstanding Covenant Indebtedness determined on 
  

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 a fluctuating basis as of the Calculation Date and which will continue to be so determined thereafter shall be deemed to
have accrued at a fixed rate per annum equal to the rate of interest on such Covenant Indebtedness in effect on the Calculation Date; (2) if interest on a Covenant Indebtedness outstanding on the Calculation Date may optionally be determined at an
interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered rate, or other rates, then the interest rate in effect on the Calculation Date shall be deemed to have been in effect during the Four Quarter Period; and
(3) notwithstanding clause (1) above, interest on Covenant Indebtedness determined on a fluctuating basis, to the extent such interest is covered by interest rate protection agreements, shall be deemed to accrue at the rate per annum resulting after
giving effect to the operation of such agreement. 
  
 “Consolidated Fixed Charge Coverage Ratio” means, for a Four Quarter Period, the ratio of Consolidated EBITDA for the Four Quarter Period to Consolidated Fixed Charges for the Four Quarter Period. 
  
 “Consolidated Indebtedness” means, as of any date of
determination, the total Covenant Indebtedness of the Parent and its Subsidiaries determined on a consolidated basis in accordance with GAAP. 
  
 “Consolidated Interest Expense” means, for any period, the sum, for the Parent and its consolidated Subsidiaries (determined in
accordance with GAAP), of all interest in respect of Covenant Indebtedness (including, without limitation, the interest component of any payments in respect of Capital Lease obligations but excluding any capitalized financing costs) accrued during
such period (whether or not actually paid during such period). 
  
 “Consolidated Leverage Ratio” means, at any Calculation Date, the ratio of (a) Consolidated Indebtedness as of such date to (b) Consolidated EBITDA for the Four Quarter Period ending as of such Calculation Date. 

 
 “Consolidated Net Income” shall mean, for any period, the
net income (or loss) of the Parent and its consolidated Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP. 
  
 “Consolidated Net Tangible Assets” means, as of any date of determination, Consolidated Total Assets after deducting “Goodwill”
and “Other Intangibles-Net” (or equivalent line item or items) as shown on the consolidated balance sheet of the Parent and its Subsidiaries for the most recently ended fiscal quarter. 
  
 “Consolidated Net Worth” means, as of any date of
determination, all items which in conformity with GAAP would be included under stockholders’ equity on a consolidated balance sheet of the Parent and its Subsidiaries at such date. 
  
 “Consolidated Total Assets” means, as of any date of determination, the total assets of the Parent and its
Subsidiaries determined on a consolidated basis in accordance with GAAP. 
  
 “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to 
  

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 exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have
meanings correlative thereto. 
  
 “Covenant
Indebtedness” means, with respect to any Person, without duplication, 
  
 (i) its liabilities for borrowed money; 
  
 (ii) its liabilities for the deferred purchase price of property acquired by such Person (excluding (a) accounts payable arising in the
ordinary course of business and (b) to the extent the payment thereof is contingent, the deferred purchase price of property acquired by such Person, but including all liabilities created or arising under any conditional sale or other title
retention agreement with respect to any such property); 
  
 (iii) Capital Lease Obligations; 
  
 (iv) all liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether or not it has assumed or otherwise become liable for such liabilities); 
  
 (v) its redemption obligations in respect of Disqualified
Stock to the extent payable with cash or other consideration (except common stock or equity securities); and 
  
 (vi) any Guarantee of such Person with respect to liabilities of a type described in any clause (i) through (vi) hereof, excluding
Franchisee Advance Payments made in connection with programs created by a Credit Party for the general benefit of the franchisee system. 
  
 Covenant Indebtedness of any Person shall include all obligations of such Person of the character described in clauses (i) through (v) to the extent such Person remains
legally liable in respect thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP. Covenant Indebtedness of any Person shall exclude all liabilities of such Person for the Litigation Settlement and the Development
Advance Notes. 
  
 “Credit Documents” means the
Credit Agreement, the Parent Guarantee, the Subsidiary Guarantee, any notes issued hereunder, the Fee Letter and any amendment, waiver or extension of such documents or any other documents which are mutually agreed by the Borrower and the
Administrative Agent to constitute “Credit Documents.” 
  
 “Credit Parties” means the Parent, the Borrower and each of the Subsidiary Guarantors. 
  
 “Default” means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless
cured or waived, become an Event of Default. 
  

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 “Disclosed Matters” means public filings with the Securities and Exchange Commission
made by the Parent or any Credit Party as filed on or prior to the Effective Date. 
  
 “Disqualified Capital Stock” means mandatorily redeemable preferred stock with mandatory sinking fund or redemption payments prior to the maturity date of the Senior Unsecured Notes. 
  
 “dollars” or “$” refers to lawful money of
the United States of America. 
  
 “EBITDA Margin”
means, with respect to any Office, for any period, the quotient of the Office Acquisition EBITDA with respect to such Office for such period divided by the total revenues (as determined in accordance with GAAP) of such Office for such period.

  
 “Effective Date” means, subject to the
satisfaction (or waiver in accordance with Section 9.02) of the conditions set forth in Section 4.01 hereof, the third Business Day following the execution of the underwriting agreement to be entered into in connection with the Parent Initial Public
Offering or such other Business Day thereafter on or prior to                              ,
2004 which may be agreed to by the Borrower and the Lenders. 
  
 “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by any Governmental Authority, relating
in any way to the environment, preservation or reclamation of natural resources, the management, release or threatened release of any Hazardous Material or to health and safety matters. 
  
 “Environmental Liability” means any liability, contingent or otherwise (including any liability for
damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling,
transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other
consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing. 
  
 “Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial
interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest. 
  
 “ERISA” means the Employee Retirement Income Security Act of
1974, as amended from time to time. 
  
 “ERISA
Affiliate” means any trade or business (whether or not incorporated) that, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412
of the Code, is treated as a single employer under Section 414 of the Code. 
  

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 “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of
ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding deficiency” (as defined in Section
412 of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) the
incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any
notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal
from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal
Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA. 
  
 “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are
bearing interest at a rate determined by reference to the Adjusted LIBO Rate. 
  
 “Event of Default” has the meaning assigned to such term in Article VII. 
  
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
  
 “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the Issuing Bank or any other
recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by the United States of America, or by the jurisdiction under the laws of
which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable lending office is located, (b) any branch profits taxes imposed by the United States of America or any similar tax
imposed by any other jurisdiction in which the Borrower is located and (c) in the case of any Lender (other than an assignee pursuant to a request by the Borrower under Section 2.17(b)), any withholding tax that is imposed on amounts payable to such
Lender at the time such Lender becomes a party to this Agreement (or designates a new lending office) or is attributable to such Lender’s failure to comply with Section 2.15(e); provided, however, that Excluded Taxes shall not
include in the case of the designation of a new lending office or an assignment, withholding taxes solely to the extent that the Lender effecting such assignment or designating such new lending office was entitled, immediately prior to the time of
such assignment or designation of such new lending office, to receive additional amounts from the Borrower with respect to the applicable withholding tax imposed on Lender (or such assignee) pursuant to Section 2.15(a) as a result of such assignment
or designation. 
  
 “Facility Fee Rate” means,
for any day, 0.25% per annum. 
  
 “Federal Funds Effective
Rate” means, for any day, the weighted average (rounded upwards, if necessary, to the next  1/100 of 1%)
of the rates on overnight Federal funds 
  

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 transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next
succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next  1/100 of 1%) of the quotations for such day for such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing
selected by it. 
  
 “Fee Letter” means
that certain letter agreement dated of even date herewith that sets forth the amount of fees to be paid to the Administrative Agent by the Borrower and the time of such payments. 
  
 “Financial Officer” means the chief financial officer, principal accounting officer, treasurer or
controller of the Parent. 
  
 “Foreign Lender”
means any Lender that is organized under the laws of a jurisdiction other than that in which the Borrower is located. For purposes of this definition, the United States of America, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction. 
  
 “Four Quarter
Period” means, as of any Calculation Date, the period of four complete consecutive fiscal quarters ended on such Calculation Date. 
  
 “Franchisee” means a Person (other than the Borrower or a Subsidiary) that owns and operates a Borrower-licensed Office. 
  
 “Franchisee Advance Payments” means advances made from time
to time by any Credit Party to third parties on behalf of or for the benefit of Franchisees. 
  
 “Franchisee Expansion” means the issuance of a development advance note or other similar financings to Franchisees by the Borrower or any Subsidiary. 
  
 “GAAP” means generally accepted accounting principles in the
United States of America. 
  
 “Governmental
Authority” means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government. 
  
 “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor
guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment
thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the 
  

 - 9 - 

 payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity
of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation;
provided, that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business. 
  
 “Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other
pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any
Environmental Law. 
  
 “Hedging Agreement” means
any interest rate protection agreement, foreign currency exchange agreement, commodity price protection agreement or other interest rate, currency exchange rate or commodity price hedging arrangement. 
  
 “Indebtedness” of any Person means, without duplication, (a)
all obligations of such Person for borrowed money or with respect to deposits or advances made on behalf of such Person by third parties that are payable by such Person, excluding that portion of any Development Advance Note that is recorded as a
liability on the balance sheet of the Credit Parties, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person under conditional sale or other title retention agreements
relating to property acquired by such Person, (d) all obligations of such Person in respect of the deferred purchase price of property or services excluding to the extent the payment thereof is contingent, the deferred purchase price of property
acquired by such Person), (e) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not
the Indebtedness secured thereby has been assumed, (f) all Guarantees by such Person of Indebtedness of others, (g) all Capital Lease Obligations of such Person, (h) all obligations, contingent or otherwise, of such Person as an account party in
respect of letters of credit and letters of guaranty and (i) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances; provided that, in each of the foregoing clauses (a) through (i), undisputed
accounts payable incurred in the ordinary course of business that are not more than 180 days past due shall be excluded. The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such
Person is a general partner) to the extent such Person is liable therefore as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person
is not liable therefore. 
  
 “Indemnified Taxes”
means Taxes other than Excluded Taxes and Other Taxes. 
  
 “Index Debt” means senior, unsecured, long-term indebtedness for borrowed money of the Borrower that is not guaranteed by any other Person or subject to any other credit enhancement. 
  

 - 10 - 

 “Information Memorandum” means the Confidential Information Memorandum dated April 22,
2004 relating to the Parent, Borrower and the Transactions. 
  
 “Interest Election Request” means a request by the Borrower to convert or continue a Borrowing in accordance with Section 2.06. 
  
 “Interest Payment Date” means (a) with respect to any ABR Loan, the last day of each March, June, September and December, and (b) with
respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day prior
to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period. 
  
 “Interest Period” means with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending on the
numerically corresponding day in the calendar month that is one, two, three or six months thereafter, as the Borrower may elect; provided, that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period
shall be extended to the next succeeding Business Day unless, in the case of a Eurodollar Borrowing only, such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding
Business Day and (ii) any Interest Period pertaining to a Eurodollar Borrowing that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the
most recent conversion or continuation of such Borrowing. 
  
 “Issuing Bank” means JPMorgan Chase Bank, in its capacity as the issuer of Letters of Credit hereunder, and its successors in such capacity as provided in Section 2.04(i). The Issuing Bank may, in its discretion, arrange
for one or more Letters of Credit to be issued by Affiliates of the Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate. 
  
 “LC Disbursement” means a payment made by the Issuing Bank
pursuant to a Letter of Credit. 
  
 “LC Exposure”
means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time.
The LC Exposure of any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time. 
  
 “Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall have become a party hereto pursuant to an Assignment
and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption. 
  
 “Letter of Credit” means any letter of credit issued pursuant to this Agreement. 
  

 - 11 - 

 “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, the
rate appearing on Page 3750 of the Dow Jones Market Service (or on any successor or substitute page of such Service, or any successor to or substitute for such Service, providing rate quotations comparable to those currently provided on such page of
such Service, as determined by the Administrative Agent from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a maturity comparable to such Interest Period. In the event that such rate is not available at such time for any reason, then the “LIBO
Rate” with respect to such Eurodollar Borrowing for such Interest Period shall be the rate (rounded upwards, if necessary, to the next  1/16 of 1%) at which dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by the principal London office of the Administrative Agent in immediately available
funds in the London interbank market at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period. 
  
 “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security
interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the
foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities. 
  
 “Litigation Settlement” means the settlement in July 2003 of the lawsuit filed against the Borrower by 154
of its franchisees on August 27, 2002. 
  
 “Loans” means the loans made by the Lenders to the Borrower pursuant to this Agreement. 
  
 “Material Adverse Effect” means a material adverse effect on (a) the business, operations, property, or condition (financial or
otherwise) of the Parent and the Subsidiaries taken as a whole, (b) the ability of the Parent, and the respective Subsidiaries, taken as a whole, to perform their obligations under the Credit Documents or (c) the validity or enforceability of any of
the Credit Documents or the rights or remedies of the Administrative Agent and the Lenders thereunder. 
  
 “Material Indebtedness” means Indebtedness (other than the Loans and Letters of Credit), or obligations in respect of one or more Hedging
Agreements, of any one or more of the Borrower and its Subsidiaries in an aggregate principal amount exceeding $3,000,000. For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or any
Subsidiary in respect of any Hedging Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or such Subsidiary would be required to pay if such Hedging Agreement were terminated at
such time. 
  
 “Material Subsidiary” means each
Subsidiary of Parent other than Subsidiaries that, in the aggregate, account for no more than 5% of Consolidated Total Assets, 5% of Consolidated Net Worth or 5% of the consolidated revenues of the Parent. 
  

 - 12 - 

 “Maturity Date” means the fifth anniversary of the Effective Date. 
  
 “Memorandum” shall mean (i) a Private Placement Memorandum,
dated April     , 2004 together with the Appendices thereto, including Amendment No. 2 to the Borrower’s Registration Statement on Form S-1 and (ii) a supplement to such Placement Memorandum, dated May
    , 2004 including the Appendix thereto consisting of Amendment No. 3 to the Borrower’s Registration Statement on Form S-1. 
  
 “Moody’s” means Moody’s Investors Service, Inc. 
  
 “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA. 
  
 “Notes Offering” means the issuance of the Senior Unsecured
Notes pursuant to a private placement on the Effective Date. 
  
 “Note Purchase Agreement” shall mean the Note Purchase Agreement dated as of                     
    , 2004 by and among the Borrower and the purchasers of the Senior Unsecured Notes. 
  
 “Office” means a business that provides tax return preparation and other related services. 
  
 “Office Acquisition” means the purchase (whether through the
purchase of an Office or an Acquisition) by the Borrower or a Subsidiary of an operating Office from a third party. 
  
 “Office Acquisition EBITDA” means, for any Office Acquisition for any period, consolidated net income (determined in accordance with
GAAP) of such Office for such period after eliminating extraordinary gains and losses, and unusual items, plus, without duplication, (a) taxes, (b) depreciation and amortization, (c) interest expense, (d) other non-cash charges and (e) any amount
attributable to any non-recurring item, but excluding any cash payments made in such period with respect to any non-recurring item, in the case of clauses (a) through (e) to the extent deducted for the computation of consolidated net income for such
period. 
  
 “Other Taxes” means any and all
present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement.

  
 “Parent” shall mean Jackson Hewitt Tax
Service Inc., a Delaware Corporation. 
  
 “Parent
Guarantee” means a guarantee by the Parent of the obligations of Borrower under the Credit Documents, in the form attached hereto as Exhibit B. 
  

“Parent Initial Public Offering” means the registered public offering on the Effective Date by Cendant Corporation of its entire
common stock ownership in the Parent. 
  

 - 13 - 

 “Participant” has the meaning set forth in Section 9.04. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation
referred to and defined in ERISA and any successor entity performing similar functions. 
  
 “Permitted Acquisition” means any Acquisition (other than an Office Acquisition or Franchisee Expansion) by the Parent or any Subsidiary of the Parent; provided, that immediately after giving
effect to such Acquisition, the Parent shall be in pro forma compliance with Section 5.10, Section 6.01, Section 6.02 and Section 6.05(b) and either (i) if such Acquisition is pursuant to clause (a) of the definition of “Acquisition,”
then, immediately following such Acquisition, such Person is a consolidated Subsidiary of the Parent or (ii) if such acquisition is pursuant to clause (b) of the definition of “Acquisition,” then, immediately following such Acquisition,
such assets, division, line of business or other properties or assets are owned by the Parent or a consolidated Subsidiary of the Parent. 
  
 “Permitted Encumbrances” means: 
  
 (a) Liens imposed by law for taxes that are not yet due or are being contested in compliance with Section 5.04; 
  
 (b) carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s and other like Liens imposed by law, arising in the ordinary course of business and securing obligations that are not overdue by more than 60 days or are being contested in compliance with Section 5.04;

  
 (c) pledges and deposits made in connection
with workers’ compensation, unemployment insurance and other social security laws or regulations; 
  
 (d) deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature, in each case in the ordinary course of business; 
  
 (e) judgment liens in respect of judgments that do not constitute an Event of Default under clause (k) of Article VII; 
  
 (f) easements, zoning restrictions, rights-of-way and
similar encumbrances on real property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property or interfere with the ordinary
conduct of business of the Borrower or any Subsidiary; 
  
 (g) customary rights of set-off upon deposit accounts and securities accounts of cash in favor of banks or other depositary institutions and other securities intermediaries; 
  
 (h) Liens in the nature of licenses that arise in the ordinary course of business; and 
  

 - 14 - 

 (i) any call or similar rights in the nature of a right of first offer or a first refusal
right of a third party that is an investor in a joint venture or a Subsidiary of the Parent in the case of Equity Interests issued by such joint venture or Subsidiary and any call or similar rights on any nominee, trust or directors’ qualifying
shares or similar arrangements designed to satisfy requirements of applicable laws in the case of Equity Interests issued by such joint venture or Subsidiary; 
  

provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness. 
  
 “Permitted Investments” means: 
  
 (a) direct obligations of, or obligations the principal of
and interest on which are unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States of America), in each case maturing within one
year from the date of acquisition thereof; 
  
 (b) investments in commercial paper maturing within 270 days from the date of acquisition thereof and having, at such date of acquisition, the highest credit rating obtainable from S&P or from Moody’s; 
  
 (c) investments in certificates of deposit, banker’s
acceptances and time deposits maturing within 180 days from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under
the laws of the United States of America or any State thereof which has a combined capital and surplus and undivided profits of not less than $500,000,000; 
  
 (d) fully collateralized repurchase agreements with a term of not more than 30 days for securities described in clause (a) above and
entered into with a financial institution satisfying the criteria described in clause (c) above; and 
  
 (e) money market funds that (i) (A) comply with the criteria set forth in Securities and Exchange Commission Rule 2a-7 under the
Investment Company Act of 1940, or (B) are rated AAA by S&P and Aaa by Moody’s and (ii) have portfolio assets of at least $5,000,000,000. 
  
 “Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership,
Governmental Authority or other entity. 
  
 “Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any
ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA. 
  

 - 15 - 

 “Prime Rate” means the rate of interest per annum publicly announced from time to time
by JPMorgan Chase Bank as its prime rate in effect at its principal office in New York City; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective. 
  
 “Register” has the meaning set forth in Section 9.04.

  
 “Related Parties” means, with respect to any
specified Person, such Person’s Affiliates and the respective directors, officers, employees, agents and advisors of such Person and such Person’s Affiliates. 
  
 “Required Lenders” means, at any time, Lenders having Revolving Credit Exposures and unused Commitments
representing more than 50% of the sum of the total Revolving Credit Exposures and unused Commitments at such time. 
  
 “Responsible Officer” means the chief executive officer, any vice president, or any Financial Officer of the Borrower. 
  
 “Restricted Payment” means any dividend or other
distribution (whether in cash, securities or other property) with respect to any Equity Interests in the Borrower or any Subsidiary, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on
account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Borrower or any Subsidiary or any option, warrant or other right to acquire any such Equity Interests in the Borrower or
any Subsidiary.  
  
 “Revolving Credit
Exposure” means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender’s Loans and its LC Exposure at such time. 
  
 “S&P” means Standard & Poor’s. 
  
 “Senior Unsecured Notes” means the Series A and Series B Guaranteed Senior Floating Rate Notes issued by
the Borrower on the Effective Date in an aggregate amount not to exceed $175,000,000. 
  
 “Sole Lead Arranger” means JPMorgan Securities Inc. 
  
 “Solvent” means with respect to any Person as of any date of determination, that, as of such date, (a) the fair value of the assets of
such Person is greater than the total amount of liabilities (including contingent and unliquidated liabilities) of such Person, (b) such Person is able to pay all liabilities of such Person as such liabilities mature and (c) such Person does not
have unreasonably small capital. In computing the amount of contingent or unliquidated liabilities at any time, such liabilities shall be computed at the amount that, in light of all the facts and circumstances existing at such time, represents the
amount that can reasonably be expected to become an actual or matured liability (in each case as interpreted in accordance with fraudulent conveyance, bankruptcy, insolvency and similar laws and other applicable requirements of law.) 
  

 - 16 - 

 “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board to
which the Administrative Agent is subject (a) with respect to the Base CD Rate, for new negotiable nonpersonal time deposits in dollars of over $100,000 with maturities approximately equal to three months and (b) with respect to the Adjusted LIBO
Rate, for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed pursuant to such Regulation D. Eurodollar Loans shall be deemed to
constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such Regulation D or any comparable
regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage. 
  
 “subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited liability company,
partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date,
as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in
the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the
parent and one or more subsidiaries of the parent. 
  
 “Subsidiary” means any subsidiary of the Parent. 
  
 “Subsidiary Guarantee” means a guarantee by a Subsidiary Guarantor of the obligations of the Borrower under the Credit Documents to which the Borrower is a party in the form attached hereto as
Exhibit B. 
  
 “Subsidiary Guarantor”
means a Subsidiary of the Parent that is a “United States Person” (as such term is defined in Section 7701(a)(30) of the Code) and that is party to the Subsidiary Guarantee. 
  
 “Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, charges or
withholdings imposed by any Governmental Authority. 
  
 “Three-Month Secondary CD Rate” means, for any day, the secondary market rate for three-month certificates of deposit reported as being in effect on such day (or, if such day is not a Business Day, the next preceding
Business Day) by the Board through the public information telephone line of the Federal Reserve Bank of New York (which rate will, under the current practices of the Board, be published in Federal Reserve Statistical Release H.15(519) during the
week following such day) or, if such rate is not so reported on such day or such next preceding Business Day, the average of the secondary market quotations for three-month certificates of deposit of major money centers banks in New York City
received at approximately 
  

 - 17 - 

 10:00 a.m., New York City time, on such day (or, if such day is not a Business Day, on the next preceding Business Day)
by the Administrative Agent from three negotiable certificate of deposit dealers of recognized standing selected by it. 
  
 “Transactions” means the execution, delivery and performance by the Borrower and its Subsidiaries, as applicable, of this Agreement and
the other Credit Documents, the borrowing of Loans, the use of the proceeds thereof and the issuance of Letters of Credit hereunder. 
  
 “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising
such Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate Base Rate. 
  
 “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer
Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA. 
  
 Section 1.02 Classification of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to by Type (e.g., a “Eurodollar Loan”). Borrowings also may be
classified and referred to by Type (e.g., a “Eurodollar Borrowing”). 
  
 Section 1.03 Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be
construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such
agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any
particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e) the words “asset” and
“property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. 
  
 Section 1.04 Accounting Terms; GAAP. Except as otherwise expressly
provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if the Borrower notifies the Administrative Agent that the Borrower requests an
amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Required
Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the 
  

 - 18 - 

 application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith. 
  
 ARTICLE II 
  
 The Credits 
  
 Section 2.01 Loan Commitments. Subject to the terms and conditions set forth herein, each Lender agrees to make Loans to the Borrower from time to time during the Availability Period in an aggregate principal amount that will not
result in (a) such Lender’s Revolving Credit Exposure exceeding such Lender’s Commitment or (b) the total Revolving Credit Exposures exceeding the total Commitments. Within the foregoing limits and subject to the terms and conditions set
forth herein, the Borrower may borrow, prepay or repay and reborrow Loans. 
  
 Section 2.02 Loans and Borrowings. 
  
 (a) Each Loan shall be made as part of a Borrowing consisting of Loans made by the Lenders ratably in accordance with their respective Commitments. The failure of any Lender to make any Loan required to be made by it
shall not relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders are several and no Lender shall be responsible for any other Lender’s failure to make Loans as required. 
  
 (b) Subject to Section 2.13, each Borrowing shall be comprised entirely of
ABR Loans or Eurodollar Loans as the Borrower may request in accordance herewith. Each Lender at its option may make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that
any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement. 
  
 (c) At the commencement of each Interest Period for any Eurodollar Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple
of $1,000,000 and not less than $3,000,000. At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $3,000,000; provided that an ABR Borrowing
may be in an aggregate amount that is equal to the entire unused balance of the total Commitments or that is required to finance the reimbursement of an LC Disbursement as contemplated by Section 2.04(e). Borrowings of more than one Type may be
outstanding at the same time; provided that there shall not at any time be more than a total of ten (10) Eurodollar Borrowings outstanding. 
  
 (d) Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any
Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date. 
  
 Section 2.03 Requests for Borrowings. To request a Borrowing, the Borrower shall notify the Administrative Agent of such request by telephone (a)
in the case of a Eurodollar Borrowing, not later than 12:00 Noon, New York City time, three (3) Business Days before the 
  

 - 19 - 

 date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 12:00 Noon, New York City time, on
the date of the proposed Borrowing; provided that any such notice of an ABR Borrowing to finance the reimbursement of an LC Disbursement as contemplated by Section 2.04(e) may be given not later than 12:00 Noon, New York City time, on the
date of the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Borrowing Request in a form approved by the
Administrative Agent and signed by the Borrower. Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.02: 
  
 (i) the aggregate amount of the requested Borrowing; 
  
 (ii) the date of such Borrowing, which shall be a Business
Day; 
  
 (iii) whether such Borrowing is to be an
ABR Borrowing or a Eurodollar Borrowing; 
  
 (iv)
in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”; and 
  
 (v) the location and number of the Borrower’s account
to which funds are to be disbursed, which shall comply with the requirements of Section 2.05. 
  
 If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any requested Eurodollar Borrowing, then the Borrower
shall be deemed to have selected an Interest Period of one month’s duration. Promptly following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each Lender of the details thereof and of the
amount of such Lender’s Loan to be made as part of the requested Borrowing. 
  
 Section 2.04 Letters of Credit. 
  
 (a) General. Subject to the terms and conditions set forth herein, the Borrower may request the issuance of Letters of Credit for its own account, in a form reasonably acceptable to the Administrative Agent and the Issuing Bank, at
any time and from time to time during the Availability Period. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted
by the Borrower to, or entered into by the Borrower with, the Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control. 
  
 (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a Letter of
Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for doing so have been approved by the Issuing Bank) to the
Issuing Bank and the Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal or extension) a notice requesting the issuance of a Letter 
  

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 of Credit, or identifying the Letter of Credit to be amended, renewed or extended, and specifying the date of issuance,
amendment, renewal or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the name and address of the
beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. If requested by the Issuing Bank, the Borrower also shall submit a letter of credit application on the Issuing Bank’s
standard form in connection with any request for a Letter of Credit. Each Letter of Credit shall be subject to ISP 98. A Letter of Credit shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of
each Letter of Credit the Borrower shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension (i) the LC Exposure shall not exceed $10,000,000 and (ii) the total Revolving Credit Exposures
shall not exceed the total Commitments. 
  
 (c) Expiration
Date. Each Letter of Credit shall expire at or prior to the close of business on the earlier of (i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one year after
such renewal or extension); provided that any Letter of Credit with a one-year term may provide for the renewal thereof of additional one-year periods (which shall in no event extend beyond the date referred to in this paragraph (c)) and (ii)
the date that is five Business Days prior to the Maturity Date. 
  
 (d) Participations. By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the Issuing Bank or the Lenders, the Issuing Bank hereby
grants to each Lender, and each Lender hereby acquires from the Issuing Bank, a participation in such Letter of Credit equal to such Lender’s Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit. In
consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement
made by the Issuing Bank and not reimbursed by the Borrower on the date due as provided in paragraph (e) of this Section, or of any reimbursement payment required to be refunded to the Borrower for any reason. Each Lender acknowledges and agrees
that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any
Letter of Credit or the occurrence and continuance of a Default or Event of Default or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.

  
 (e) Reimbursement. In the case of any draft presented
under a Letter of Credit which is required to be paid at any time on or before the Maturity Date and provided that the conditions specified in Section 4.02 are then satisfied, and subject to the limitations as to the aggregate principal
amount of ABR Loans set forth in Section 2.01(a), but notwithstanding the limitations as to the time of funding of a Borrowing set forth in Section 2.05(a) and as to the time of notice of a proposed Borrowing set forth in Section 2.03, payment by
the Issuing Bank of such draft shall constitute an ABR Loan hereunder, and interest shall accrue from the date the Issuing Bank makes such payment, which ABR Loan, upon and to the extent that a Lender shall have made reimbursement to the Issuing
Bank pursuant to Section 2.23(d), shall constitute such 
  

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 Lender’s ABR Loan hereunder. If any draft is presented under a Letter of Credit and (i) the conditions specified in
Section 4.02 are not satisfied or (ii) if the Commitments have been terminated, then the Borrower will, upon demand by the Administrative Agent or the Issuing Bank, pay to the Issuing Bank, in immediately available funds, the full amount of such
draft. If the Borrower fails to make such payment when due, the Administrative Agent shall notify each Lender of the applicable LC Disbursement, the payment then due from the Borrower in respect thereof and such Lender’s Applicable Percentage
thereof. Promptly following receipt of such notice, each Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from the Borrower, in the same manner as provided in Section 2.05 with respect to Loans made by
such Lender (and Section 2.05 shall apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank the amounts so received by it from the Lenders. Promptly
following receipt by the Administrative Agent of any payment from the Borrower pursuant to this paragraph, the Administrative Agent shall distribute such payment to the Issuing Bank or, to the extent that Lenders have made payments pursuant to this
paragraph to reimburse the Issuing Bank, then to such Lenders and the Issuing Bank as their interests may appear. Any payment made by a Lender pursuant to this paragraph to reimburse the Issuing Bank for any LC Disbursement (other than the funding
of ABR Loans as contemplated above) shall not constitute a Loan and shall not relieve the Borrower of its obligation to reimburse such LC Disbursement. 
  
 (f) Obligations Absolute. The Borrower’s obligation to reimburse LC Disbursements as provided in paragraph (e) of this Section shall be
absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit
or this Agreement, or any term or provision therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect,
(iii) payment by the Issuing Bank under a Letter of Credit against presentation of a draft or other document that does not strictly comply with the terms of such Letter of Credit (unless such draft or other document fails to substantially comply
with the terms of such Letter of Credit), or (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal or equitable discharge of, or
provide a right of setoff against, the Borrower’s obligations hereunder. Neither the Administrative Agent, the Lenders nor the Issuing Bank, nor any of their Related Parties, shall have any liability or responsibility by reason of or in
connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or
delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence
arising from causes beyond the control of the Issuing Bank; provided that the foregoing shall not be construed to excuse the Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to consequential damages,
claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by the Issuing Bank’s failure to exercise care when determining whether drafts and other documents
presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the Issuing Bank (as finally determined by a court of competent

  

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 jurisdiction), the Issuing Bank shall be deemed to have exercised care in each such determination. In furtherance of the
foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the Issuing Bank may either accept
and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance
with the terms of such Letter of Credit. 
  
 (g) Disbursement
Procedures. The Issuing Bank shall, promptly following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit. The Issuing Bank shall promptly notify the Administrative Agent and the
Borrower by telephone (confirmed by telecopy) of such demand for payment and whether the Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the
Borrower of its obligation to reimburse the Issuing Bank and the Lenders with respect to any such LC Disbursement. 
  
 (h) Interim Interest. If the Issuing Bank shall make any LC Disbursement the payment by the Issuing Bank of which does not constitute an ABR Loan
pursuant to Section 2.04(e), then the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC Disbursement, at the rate per annum
equal to 2% per annum in excess of the Alternate Base Rate plus the Applicable Rate. Interest accrued pursuant to this paragraph shall be for the account of the Issuing Bank, except that interest accrued on and after the date of payment by any
Lender pursuant to paragraph (e) of this Section to reimburse the Issuing Bank shall be for the account of such Lender to the extent of such payment. 
  
 (i) Replacement of the Issuing Bank. The Issuing Bank may be replaced at any time by written agreement among the Borrower, the Administrative
Agent, the replaced Issuing Bank and the successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement of the Issuing Bank. At the time any such replacement shall become effective, the Borrower shall pay all
unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.10(b). From and after the effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of the Issuing Bank
under this Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all
previous Issuing Banks, as the context shall require. After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of an Issuing Bank under this
Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit. 
  
 (j) Cash Collateralization. If any Event of Default shall occur and be continuing, on the Business Day that the Borrower receives notice from the
Administrative Agent or the Required Lenders demanding the deposit of cash collateral pursuant to this paragraph, the Borrower shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of
the Lenders, an amount in Permitted 
  

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 Investments equal to the LC Exposure as of such date plus any accrued and unpaid interest thereon; provided that
the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to the
Borrower described in clause (h) or (i) of Article VII. Such deposit shall be held by the Administrative Agent as collateral for the payment and performance of the obligations of the Borrower under this Agreement. The Administrative Agent shall have
exclusive dominion and control, including the exclusive right of withdrawal, over such account. Other than any interest earned on the investment of such deposits, which investments shall be made in Permitted Investments and at the option and sole
discretion of the Administrative Agent and at the Borrower’s risk and expense, such deposits shall not bear interest. Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such account shall be applied by
the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the LC
Exposure at such time or, if the maturity of the Loans has been accelerated, be applied to satisfy other obligations of the Borrower under this Agreement. If the Borrower is required to provide an amount of cash collateral hereunder as a result of
the occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the Borrower within three Business Days after all Events of Default have been cured or waived. 
  
 Section 2.05 Funding of Borrowings. 
  
 (a) Each Lender shall make each Loan to be made by it hereunder on the
proposed date thereof by wire transfer of immediately available funds by 12:00 noon, New York City time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders. The Administrative Agent
will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account of the Borrower maintained with the Administrative Agent in New York City and designated by the Borrower in the applicable
Borrowing Request; provided that ABR Loans made to finance the reimbursement of an LC Disbursement as provided in Section 2.04(e) shall be remitted by the Administrative Agent to the Issuing Bank. 
  
 (b) Unless the Administrative Agent shall have received notice from a Lender
prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such
date in accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing available
to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is
made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest rate applicable to 
  

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 ABR Loans. If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such
Lender’s Loan included in such Borrowing. 
  
 Section 2.06
Interest Elections. 
  
 (a) Each Borrowing initially shall
be of the Type specified in the applicable Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the Borrower may elect to convert such Borrowing to a
different Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest Periods therefore, all as provided in this Section. The Borrower may elect different options with respect to different portions of the
affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing. 
  
 (b) To make an election pursuant to this Section, the Borrower shall notify
the Administrative Agent of such election by telephone by the time that a Borrowing Request would be required under Section 2.03 if the Borrower were requesting a Borrowing of the Type resulting from such election to be made on the effective date of
such election. Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Interest Election Request in a form approved by the
Administrative Agent and signed by the Borrower. 
  
 (c) Each
telephonic and written Interest Election Request shall specify the following information in compliance with Section 2.02: 
  
 (i) the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different
portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing); 
  
 (ii) the effective date of the election made pursuant to
such Interest Election Request, which shall be a Business Day; 
  
 (iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and 
  
 (iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be applicable thereto after giving effect to such
election, which shall be a period contemplated by the definition of the term “Interest Period”. 
  
 If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.

  

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 (d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise
each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing. 
  
 (e) If the Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar Borrowing prior to the end of the Interest Period
applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if a Default or an Event of
Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then, so long as a Default or an Event of Default is continuing (i) no outstanding Borrowing may be converted to
or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto. 
  
 Section 2.07 Termination and Reduction of Commitments. 
  
 (a) Unless previously terminated, the Commitments shall terminate on the Maturity Date. 
  
 (b) The Borrower may at any time terminate, or from time to time reduce, the
Commitments; provided that (i) each reduction of the Commitments shall be in an amount that is an integral multiple of $5,000,000 and (ii) the Borrower shall not terminate or reduce the Commitments if, after giving effect to any concurrent
prepayment of the Loans in accordance with Section 2.09, the Revolving Credit Exposures would exceed the total Commitments. 
  
 (c) The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Commitments under paragraph (b) of this Section at least
three Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents
thereof. Each notice delivered by the Borrower pursuant to this Section shall be irrevocable; provided that a notice of termination of the Commitments delivered by the Borrower may state that such notice is conditioned upon the effectiveness
of other credit facilities or receipt of proceeds from other sources, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.
Any termination or reduction of the Commitments shall be permanent. Each reduction of the Commitments shall be made ratably among the Lenders in accordance with their respective Commitments. 
  
 Section 2.08 Repayment of Loans; Evidence of Debt. 
  
 (a) The Borrower hereby unconditionally promises to pay to the Administrative
Agent for the account of each Lender the then unpaid principal amount of each Loan on the Maturity Date. 
  
 (b) 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, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder. 
  

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 (c) The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan
made hereunder, the Type thereof and the Interest Period applicable 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 for the account of the Lenders and each Lender’s share thereof. 
  
 (d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence of the
existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to
repay the Loans in accordance with the terms of this Agreement. 
  
 (e) Any Lender may request that Loans made by it be evidenced by a promissory note. In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to the order of such Lender (or, if requested by
such Lender, to such Lender and its registered assigns) and in a form approved by the Administrative Agent. Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to
Section 9.04) be represented by one or more promissory notes in such form payable to the order of the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns). 
  
 Section 2.09 Prepayment of Loans. 
  
 (a) The Borrower shall have the right at any time and from time to time to
prepay any Borrowing in whole or in part, subject to prior notice in accordance with paragraph (b) of this Section. 
  
 (b) The Borrower shall notify the Administrative Agent by telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of prepayment of a
Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date of prepayment or (ii) in the case of prepayment of an ABR Borrowing, not later than 11:00 a.m., New York City time, one Business Day before the
date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment is given in connection with
a conditional notice of termination of the Commitments as contemplated by Section 2.07, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.07. Promptly following receipt of any such
notice relating to a Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing of the same
Type as provided in Section 2.02. Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by Section 2.11. 
  
 Section 2.10 Fees. 
  

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 (a) The Borrower agrees to pay to the Administrative Agent for the account of each Lender a facility fee,
which shall accrue at the Facility Fee Rate on the daily amount of the Commitment of such Lender (whether used or unused) during the period from and including the Effective Date to but excluding the date on which such Commitment terminates;
provided that, if such Lender continues to have any Revolving Credit Exposure after its Commitment terminates, then such facility fee shall continue to accrue on the daily amount of such Lender’s Revolving Credit Exposure from and
including the date on which its Commitment terminates to but excluding the date on which such Lender ceases to have any Revolving Credit Exposure. Accrued facility fees shall be payable in arrears on the last day of March, June, September and
December of each year and on the date on which the Commitments terminate, commencing on the first such date to occur after the date hereof; provided that any facility fees accruing after the date on which the Commitments terminate shall be
payable on demand. All facility fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). 
  
 (b) The Borrower agrees to pay (i) to the Administrative Agent for the
account of each Lender a participation fee with respect to its participations in Letters of Credit, which shall accrue at the same Applicable Rate used to determine the interest rate applicable to Eurodollar Loans on the average daily amount of such
Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which such Lender’s Commitment terminates
and the date on which such Lender ceases to have any LC Exposure, and (ii) to the Issuing Bank a fronting fee, which shall accrue at the rate or rates per annum separately agreed upon between the Borrower and the Issuing Bank on the average daily
amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date of termination of the Commitments and the date on
which there ceases to be any LC Exposure, as well as the Issuing Bank’s standard fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder. Participation fees and fronting
fees accrued through and including the last day of March, June, September and December of each year shall be payable on the third Business Day following such last day, commencing on the first such date to occur after the Effective Date;
provided that all such fees shall be payable on the date on which the Commitments terminate and any such fees accruing after the date on which the Commitments terminate shall be payable on demand. Any other fees payable to the Issuing Bank
pursuant to this paragraph shall be payable within ten (10) days after demand. All participation fees and fronting fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the
first day but excluding the last day). 
  
 (c) The Borrower
agrees to pay the Administrative Agent for its own account fees in the amounts and at the times set forth in the Fee Letter. 
  
 (d) All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent (or to the Issuing Bank, in the
case of fees payable to it) for distribution, in the case of facility fees and participation fees, to the Lenders. Fees paid shall not be refundable under any circumstances. 
  

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 Section 2.11 Interest. 
  
 (a) The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus the Applicable Rate.

  
 (b) The Loans comprising each Eurodollar Borrowing shall bear
interest at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate. 
  
 (c) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or other amount payable by the Borrower hereunder is not paid
when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, to the extent permitted by applicable law, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue
principal of any Loan, 2% plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Loans as provided in paragraph (a) of this
Section. 
  
 (d) Accrued interest on each Loan shall be payable in
arrears on each Interest Payment Date for such Loan and upon termination of the Commitments; provided that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in the event of any repayment or
prepayment of any Loan (other than a prepayment of an ABR Loan prior to the end of the Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the
event of any conversion of any Eurodollar Loan prior to the end of the current Interest Period therefore, accrued interest on such Loan shall be payable on the effective date of such conversion. 
  
 (e) All interest hereunder shall be computed on the basis of a year of 360
days, except that interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be
payable for the actual number of days elapsed (including the first day but excluding the last day). The applicable Alternate Base Rate and Adjusted LIBO Rate shall be determined by the Administrative Agent, and such determination shall be conclusive
absent manifest error. 
  
 Section 2.12 Alternate Rate of
Interest. 
  
 If prior to the commencement of any Interest
Period for a Eurodollar Borrowing: 
  
 (a) the Administrative
Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate, as applicable, for such Interest Period; or 
  
 (b) the Administrative Agent is advised by the Required Lenders that the
Adjusted LIBO Rate for such Interest Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period; 
  

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 then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone or telecopy as
promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion of any
Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing; provided that if the
circumstances giving rise to such notice affect only one Type of Borrowings, then the other Type of Borrowings shall be permitted. 
  
 Section 2.13 Increased Costs. 
  
 (a) If any Change in Law shall: 
  
 (i) impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the
account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or the Issuing Bank; or 
  
 (ii) impose on any Lender or the Issuing Bank or the London interbank market any other condition affecting this Agreement or Eurodollar
Loans or Loans made by such Lender or any Letter of Credit or participation therein; 
  
 and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to increase the cost to such Lender or the Issuing
Bank of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or the Issuing Bank hereunder (whether of principal, interest or otherwise), then the Borrower will pay to
such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or the Issuing Bank, as the case may be, for such additional costs incurred or reduction suffered. 
  
 (b) If any Lender or the Issuing Bank determines that any Change in Law
regarding capital requirements has or would have the effect of reducing the rate of return on such Lender’s or the Issuing Bank’s capital or on the capital of such Lender’s or the Issuing Bank’s holding company, if any, as a
consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or the Issuing Bank or such Lender’s
or the Issuing Bank’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or the Issuing Bank’s policies and the policies of such Lender’s or the Issuing Bank’s holding
company with respect to capital adequacy) by an amount deemed by such Lender in good faith to be material, then from time to time the Borrower will pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as will
compensate such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company for any such reduction suffered. 
  
 (c) A certificate of a Lender or the Issuing Bank setting forth the amount or amounts necessary to compensate such Lender or the Issuing Bank or its
holding company, as 
  

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 the case may be, as specified in paragraph (a) or (b) of this Section shall be delivered by such Lender or Issuing Bank
in good faith to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender or the Issuing Bank, as the case may be, the amount shown as due on any such certificate within 10 days after receipt thereof.

  
 (d) Failure or delay on the part of any Lender or the Issuing
Bank to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender or
the Issuing Bank pursuant to this Section for any increased costs or reductions incurred more than 270 days prior to the date that such Lender or the Issuing Bank, as the case may be, notifies the Borrower of the Change in Law giving rise to such
increased costs or reductions and of such Lender’s or the Issuing Bank’s intention to claim compensation therefore; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive,
then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof. 
  
 (e) Notwithstanding anything to the contrary contained in this Section 2.13, Section 2.15 shall govern exclusively any increased costs relating to Taxes
resulting from any Change in Law. 
  
 Section 2.14 Break
Funding Payments. In the event of (a) the payment of any principal of any Eurodollar Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar
Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurodollar Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice
may be revoked under Section 2.09(b) and is revoked in accordance therewith) or (d) the assignment of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to
Section 2.17, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to include an
amount determined by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such
Loan, for the period from the date of such event to the last day of the then current Interest Period therefore (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Loan), over
(ii) the amount of interest which would accrue on such principal amount for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from
other banks in the eurodollar market. A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error.
The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof. 
  
 Section 2.15 Taxes. 
  

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 (a) Any and all payments by or on account of any obligation of the Borrower hereunder shall be made free
and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if the Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section) the Administrative Agent, Lender or Issuing Bank (as the case may be) receives an amount equal to the sum it would
have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law. 
  
 (b) In addition, the Borrower shall pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law. 
  
 (c)
If the IRS or other Governmental Authority of the United States or other jurisdiction asserts a claim against the Administrative Agent, a Lender or the Issuing Bank that the full amount of Indemnified Taxes or Other Taxes have not been paid, the
Borrower shall indemnify the Administrative Agent, each Lender and the Issuing Bank, within ten (10) days after written demand therefor, for the full amount of any such Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender
or the Issuing Bank, as the case may be, on or with respect to any payment by or on account of any obligation of the Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this
Section) and any penalties, interest and reasonable out-of-pocket expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate (along with a copy of the applicable documents from the IRS or other governmental authority of the United States or other jurisdiction that asserts such claim) as to the amount of such payment or liability delivered to the
Borrower by a Lender or the Issuing Bank, or by the Administrative Agent on its own behalf or on behalf of a Lender or the Issuing Bank, shall be conclusive absent manifest error. 
  
 (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the Borrower to a Governmental
Authority, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such
payment reasonably satisfactory to the Administrative Agent. 
  
 (e) Any Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which the Borrower is located, or any treaty to which such jurisdiction is a party, with respect to payments under
this Agreement shall deliver to the Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable law, such properly completed and executed documentation prescribed by applicable law or reasonably requested by the
Borrower as will permit such payments to be made without withholding or at a reduced rate. Without limiting the foregoing, each Lender shall, at the time such Lender becomes a party to this Agreement (or thereafter as reasonably requested by
Borrower), execute and deliver to the Borrower and Administrative Agent (i) if it is not a “United States Person” (as such term is defined in Section 7701(a)(30) of the Code), two original copies (or more as the Borrower or the
Administrative Agent shall reasonably request) of the 
  

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 applicable Internal Revenue Service form W-8 or other applicable form, certificate or document prescribed by the United
States Internal Revenue Service certifying as to such Lender’s entitlement to exemption from, or entitlement to a reduced rate of, withholding or deduction of Taxes, and (ii) if it is a “United States Person” (as such term is defined
in Section 7701(a)(30) of the Code), two original copies (or more as the Borrower or the Administrative Agent shall reasonably request) of Internal Revenue Service Form W-9 (or substitute or successor form). Each Lender that is not a “United
States Person” (as such term is defined in Section 7701(a)(30) of the Code) claiming exemption from withholding tax pursuant to its portfolio interest exception shall execute and deliver to the Borrower and Administrative Agent (i) a statement
of the Lender, signed under penalty of perjury, that it is not (A) a “bank” as described in Section 881(c)(3)(A) of the Code, (B) a 10% shareholder of a Borrower (within the meaning of Section 871(h)(3)(B) of the Code), or (C) a controlled
foreign corporation related to a Borrower within the meaning of Section 864(d)(4) of the Code, and (ii) two properly completed and executed copies of IRS Form W-8BEN. 
  
 (f) If the Administrative Agent or a Lender determines, in its sole discretion, that it has received a refund of any Taxes
or Other Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this Section 2.15, it shall pay over such refund to the Borrower (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrower under this Section 2.15 with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent or such Lender and without
interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided that the Borrower, upon the request of the Administrative Agent or such Lender, agrees to repay the amount paid over to the
Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such refund to such
Governmental Authority. This Section shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other information relating to its taxes which it deems confidential) to the Borrower or any other
Person. 
  
 Section 2.16 Payments Generally; Pro Rata
Treatment; Sharing of Set-offs. 
  
 (a) The Borrower shall
make each payment required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.13, 2.14 or 2.15, or otherwise) prior to 12:00 noon, New York City time, on the
date when due, in immediately available funds, without set-off or counterclaim. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day
for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at its offices at 270 Park Avenue, New York, New York, except payments to be made directly to the Issuing Bank as expressly provided herein and
except that payments pursuant to Sections 2.13, 2.14, 2.15 and 9.03 shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the
appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing
interest, interest thereon 
  

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 shall be payable for the period of such extension. All payments hereunder shall be made in dollars. 
  
 (b) If at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, ratably among the
parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed LC Disbursements then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties. 
  
 (c) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any
of its Loans or participations in LC Disbursements resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and participations in LC Disbursements and accrued interest thereon than the proportion
received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and participations in LC Disbursements of other Lenders to the extent necessary so that the benefit
of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and participations in LC Disbursements; provided that (i) if any such
participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of
this paragraph shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Loans or participations in LC Disbursements to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). The Borrower
consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim
with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation. 
  
 (d) Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent
for the account of the Lenders or the Issuing Bank hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to
repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to
the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined 
  

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 by the Administrative Agent in accordance with banking industry rules on interbank compensation. 
  
 (e) If any Lender shall fail to make any payment required to be made by it
pursuant to Section 2.04(d) or (e), 2.05(b) or 2.16(d), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such
Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid. 
  
 Section 2.17 Mitigation Obligations; Replacement of Lenders. 
  
 (a) If any Lender requests compensation under Section 2.13, or if the Borrower is required to pay any additional amount to
any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.15, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights
and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.13 or 2.15, as the case may be, in
the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection
with any such designation or assignment. 
  
 (b) If any Lender
requests compensation under Section 2.13, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.15, or if any Lender defaults in its obligation to
fund Loans hereunder, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions
contained in Section 9.04), all its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (i) the
Borrower shall have received the prior written consent of the Administrative Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and
participations in LC Disbursements, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of
all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section 2.13 or payments required to be made pursuant to Section 2.15, such assignment will result in a reduction in such compensation or
payments. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to
apply. 
  

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 ARTICLE III 
  
 Representations and Warranties 
  
 Each of the Borrower and Parent represents and warrants to the Lenders that: 
  
 Section 3.01 Organization; Powers. Each of the Parent, Borrower and their respective Material Subsidiaries is duly
organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority to carry on its business as now conducted and, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required. 
  
 Section 3.02 Authorization; Enforceability. The Transactions are
within the corporate powers of each of the Parent, the Borrower and each of their respective Subsidiaries and have been duly authorized by all necessary corporate and, if required, stockholder action. This Agreement and each other Credit Document
has been duly executed and delivered by each of the Parent, the Borrower and each of their respective Subsidiaries party hereto or thereto and constitutes a legal, valid and binding obligation of each of the Parent, the Borrower and each of their
respective Subsidiaries party thereto or thereto, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in equity or at law. 
  
 Section 3.03 Governmental Approvals; No Conflicts. The Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as
have been obtained or made and are in full force and effect, (b) will not violate any applicable law or regulation or the charter, by-laws or other organizational documents of the Parent, the Borrower or any of their respective Subsidiaries or any
order of any Governmental Authority, (c) will not violate or result in a default under any material indenture, material agreement or other material instrument binding upon the Parent, the Borrower or any of their respective Subsidiaries or its
assets, and (d) will not result in the creation or imposition of any Lien on any asset of the Parent, the Borrower or any of their respective Subsidiaries. 
  
 Section 3.04 Financial Condition; No Material Adverse Change. 
  
 (a) The Parent has heretofore furnished to the Lenders its consolidated balance sheet and statements of income, stockholders
equity and cash flows as of and for the fiscal years ended April 30, 2003 and April 30, 2004, respectively, reported on by Deloitte & Touche LLP, independent public accountants. Such financial statements present fairly, in all material respects,
the financial position and results of operations and cash flows of the Parent and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP. 
  
 (b) Since April 30, 2004, no events and conditions have occurred that have had, or would reasonably be expected to have, a
material adverse effect on the business, operations, property or condition (financial or otherwise), of the Parent and its consolidated Subsidiaries, taken as a whole. 
  
 Section 3.05 Properties. 
  
 (a) Each of the Parent, the Borrower and their respective Subsidiaries has good title to, or valid leasehold interests in, all its real and personal
property material to its 
  

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 business free and clear of any Liens, except liens permitted under Section 6.04 and minor defects in title that do not
interfere with its ability to conduct its business as currently conducted or to utilize such properties for their intended purposes. 
  
 (b) Each of the Parent, the Borrower and their respective Subsidiaries owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and
other intellectual property material to its business, and the use thereof by the Parent, the Borrower and their respective Subsidiaries does not infringe upon the rights of any other Person except for such infringements that, the effect of which
individually or in the aggregate, could not reasonably be expected to have a material adverse effect on the business of the Parent, the Borrower and their respective Subsidiaries, taken as a whole. 
  
 Section 3.06 Litigation and Environmental Matters. 
  
 (a) Other than to the extent disclosed in the Disclosed Matters, there are no
material actions, suits or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrower, threatened against or affecting the Parent, the Borrower or any of their respective Subsidiaries (i)
as to which there is a reasonable possibility of an adverse determination that, individually or in the aggregate, could reasonably be expected to have a material adverse effect on the business of Parent and its Subsidiaries, taken as a whole, or
(ii) that involve this Agreement or the Transactions. 
  
 (b)
Neither the Parent, the Borrower nor any of their respective Subsidiaries (i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law the
failure of which could reasonably be expected to have a material adverse effect on the business of Parent and its Subsidiaries taken as a whole, (ii) has become subject to any Environmental Liability that, individually or in the aggregate, could
reasonably be expected to have a material adverse effect on the business of the Parent and its Subsidiaries taken as a whole, (iii) has received notice of any claim with respect to any Environmental Liability that, individually or in the aggregate,
could reasonably be expected to have a material adverse effect on the business of the Parent and its Subsidiaries, taken as a whole or (iv) knows of any basis for any Environmental Liability that, individually or in the aggregate, could reasonably
be expected to have a material adverse impact on the business of the Parent and its consolidated Subsidiaries, taken as a whole. 
  
 Section 3.07 Compliance with Laws and Agreements; No Default. Each of the Parent, the Borrower and their respective Subsidiaries is in compliance
with all laws, regulations and orders of any Governmental Authority applicable to it or its property and all indentures, agreements and other instruments binding upon it or its property, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect. No Default has occurred and is continuing. 
  
 Section 3.08 Investment and Holding Company Status. Neither the Parent, the Borrower nor any of their respective Subsidiaries is (a) an
“investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940 or (b) a “holding company” as defined in, or subject to regulation under, the Public Utility Holding Company Act of 1935.

  

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 Section 3.09 Taxes. Each of the Parent, the Borrower and their respective Subsidiaries has timely
filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and
for which the Parent, the Borrower or such Subsidiary, as applicable, has set aside on its books adequate reserves or (b) to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Effect. 
  
 Section 3.10 ERISA. No ERISA event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect. The present value of all accumulated benefit
obligations of all underfunded Plans (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than
$10,000,000 the fair market value of the assets of all such underfunded Plans. 
  
 Section 3.11 Solvency. Each of the Borrower and the Parent is and the Credit Parties, taken as a whole, are Solvent. 
  
 Section 3.12 Use of Proceeds. The proceeds of the Loans and Letters of Credit that have been disbursed to or on behalf of the Borrower have not
been used by any Credit Party for purposes other than to finance the working capital needs, acquisitions, or general corporate purposes of the Parent, the Borrower and their respective Subsidiaries. 
  
 Section 3.13 Margin Regulations. No Credit Party 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 Federal Reserve Board), and no proceeds of any Loan or Letter of Credit will be used by any Credit Party 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 in contravention of Regulation T, U or X of the Federal Reserve Board. 
  
 Section 3.14 Disclosure. The Borrower has disclosed to the Lenders all
agreements, instruments and corporate or other restrictions to which it, the Parent, or any of their respective Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect. As of the Effective Date, the Information Memorandum furnished by the Borrower to the Administrative Agent when, taken as a whole, does not contain any material misstatement of fact or omits to state any material
fact necessary to make the statement therein, in the light of the circumstances under which they were made, not misleading provided that, with respect to projected financial information the Parent and the Borrower represent only that such
information was prepared in good faith based upon assumptions believed to be reasonable at the time; provided further, that, with respect to general industry information provided by public or third party sources, the Parent and the
Borrower represent only to the best of their knowledge. None of the reports, financial statements, certificates or other information furnished by or on behalf of the Borrower to the Administrative Agent or any Lender in connection with the
negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished) when, taken as a whole, contains any material misstatement of fact or omits to state any material fact 
  

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 necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;
provided that, with respect to projected financial information, the Parent and the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time; provided,
further, that, with respect to general industry information provided by public or third party sources, the Parent and the Borrower represent only to the best of their knowledge. The Credit Parties have delivered to the Administrative Agent
certain projections relating to the Parent and its consolidated Subsidiaries and has included certain projections in documents or materials that have been delivered to the Administrative Agent. All such projections prepared by or on behalf of the
Parent, the Borrower or their respective Subsidiaries are based on good faith estimates and assumptions believed to be reasonable at the time made provided, however, that the Parent, the Borrower or their respective Subsidiaries make
no representation or warranty that such assumptions will prove in the future to be accurate or that the Parent, the Borrower or their respective Subsidiaries will achieve the financial results reflected in such projections. 
  
 ARTICLE IV 
  
 Conditions 
  
 Section 4.01 Effective Date. The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not
become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02): 
  
 (a) Credit Documents. The Administrative Agent shall have received from each party hereto or thereto a counterpart of this Agreement and each of
the other Credit Documents, each executed and delivered by such party. 
  
 (b) Opinion of Counsel. The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders and dated the Effective Date) of (i) Skadden, Arps, Slate, Meagher & Flom
LLP, counsel for the Parent and Tax Services of America, Inc., substantially in the form of Exhibit C-1 and (ii) Piper Rudnick LLP, counsel for the Borrower and Hewfant, Inc. substantially in the form of Exhibit C-2. 
  
 (c) Corporate Documents for the Credit Parties. The Administrative
Agent shall have received, with copies for each of the Lenders, a certificate of the Secretary or an Assistant Secretary of each Credit Party dated the Effective Date and certifying (i) that attached thereto is a true and complete copy of the
certificate of incorporation and by-laws of such Credit Party as in effect on the Effective Date, (ii) that attached thereto is a true and complete copy of resolutions adopted by the Board of Directors of such Credit Party authorizing the borrowings
hereunder (in the case of the Borrower) and the execution, delivery and performance in accordance with their respective terms of each Credit Document to which such Credit Party is a party, (iii) as to the incumbency and specimen signature of each
officer of such Credit Party executing this Agreement or any other document delivered by it in connection herewith (such certificate to contain a certification by another officer of such Credit Party as to the incumbency and signature of the officer
signing the certificate referred to in this paragraph (c) and (iv) with 
  

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 respect to the Borrower, that attached thereto are true and complete copies of the Related Transaction Documents (other
than the Credit Documents). 
  
 (d) Financial Statements.
The Administrative Agent and the Lenders shall have received audited consolidated financial statements of the Parent for the fiscal year ending April 30, 2004 acceptable to such Administrative Agent or Lender in its sole discretion. 
  
 (e) Solvency Certificate. The Administrative Agent shall have
received, with copies for each of the Lenders, a certificate of a Financial Officer of the Parent stating that each of the Parent and the Borrower is, and the Credit Parties, taken as a whole, are Solvent after giving effect to the initial loans and
Letters of Credit and the payment of all estimated legal, accounting and other fees related hereto and thereto. 
  
 (f) No Material Adverse Effect. The Administrative Agent shall be satisfied that, since the date of the most recent audited financial statements of
the Parent and its Subsidiaries, no events or conditions shall have occurred that have had, or could reasonably be expected to have, a Material Adverse Effect. 
  

(g) Payment of Fees and Expenses. The Administrative Agent shall be satisfied that all amounts due and payable to the Administrative Agent, the
Sole Lead Arranger and the other Lenders pursuant hereto or with regard to the transactions contemplated hereby (including, without limitation, the fees required to be paid pursuant to that certain fee letter dated as of April 22, 2004 among the
Parent, the Administrative Agent and the Sole Lead Arranger) have been or are simultaneously being paid. 
  
 (h) Commitment Letter. Each of the terms and conditions set forth in the Commitment Letter shall have been satisfied or waived in writing by the
Administrative Agent. 
  
 (i) No Default. At the time of
and immediately after giving effect to the Loans, no Default or Event of Default shall have occurred and be continuing. 
  
 (j) Representations and Warranties. The representations and warranties of the Borrower set forth in this Agreement shall be true and correct in all
material respects (except to the extent such representations and warranties are otherwise qualified by materiality in which case they shall be true and correct in all respects) on and as of the Effective Date (unless stated to relate solely to an
earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date). 
  
 (k) Senior Unsecured Notes. The Senior Unsecured Notes shall have been issued contemporaneously with the execution and delivery of the Credit
Document in amounts and on terms reasonably satisfactory to the Administrative Agent. 
  
 (l) Initial Public Offering. The Parent Initial Public Offering shall have occurred in amounts and on terms reasonably satisfactory to the Administrative Agent. 
  
 (m) Approvals. All Governmental Authority and material third party
consents or approvals necessary, or in the discretion of the Administrative Agent, advisable in connection 
  

 -40- 

 with the Transactions and the continuing operations of the Parent, the Borrower and their respective Subsidiaries shall
have been obtained and be in full force and effect. 
  
 (n)
Litigation. No litigation by any Person shall be pending or, to either the Parent’s or the Borrower’s knowledge, threatened with respect to the Transaction or any documentation executed in connection therewith or which the
Administrative Agent or the Lenders shall determine would reasonably be expected to have a Material Adverse Effect. 
  
 (o) Officer’s Certificate. The Administrative Agent shall have received, with copies for each of the Lenders, a certificate of a Responsible
Officer of the Borrower to the effect that the conditions set forth in Section 4.01 have been satisfied. 
  
 (p) Other Documents. The Administrative Agent shall have received such other documents and certificates as the Administrative Agent may reasonably
require. 
  
 The Administrative Agent shall notify the Borrower and the Lenders of
the Effective Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective unless each of
the foregoing conditions is satisfied (or waived pursuant to Section 9.02) at or prior to 3:00 p.m., New York City time, on July 15, 2004 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at such
time). 
  
 Section 4.02 Each Credit Event. The obligation
of each Lender to make a Loan, and of the Issuing Bank to issue, renew or extend any Letter of Credit, is subject to the satisfaction of the following conditions: 
  
 (a) The representations and warranties of the Parent and the Borrower set forth in this Agreement shall be true and correct
in all material respects (except to the extent such representations and warranties are otherwise qualified by materiality in which case they shall be true and correct in all respects) on and as of the date of such Loan or the date of issuance,
renewal or extension of such Letter of Credit, as applicable (unless stated to relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date).

  
 (b) At the time of and immediately after giving effect to such
Loan or the issuance, renewal or extension of such Letter of Credit, as applicable, no Default or Event of Default shall have occurred and be continuing. 
  
 Each Loan and each issuance, renewal or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as
to the matters specified in paragraphs (a) and (b) of this Section. 
  
 ARTICLE V 
  
 Affirmative Covenants 
  
 Until the Commitments have expired or been terminated and the principal of
and interest on each Loan and all fees payable hereunder shall have been paid in full and all Letters 
  

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 of Credit shall have expired or terminated and all LC Disbursements shall have been reimbursed, the Parent and the
Borrower covenants and agrees with the Lenders that: 
  
 Section
5.01 Financial Statements; Ratings Change and Other Information. The Borrower will furnish to the Administrative Agent and each Lender: 
  
 (a) within 90 days after the end of each fiscal year of the Parent, its audited consolidated balance sheet and related consolidated statements of
operations, stockholders’ equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by Deloitte & Touche LLP or other independent
public accountants of recognized national standing (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial
statements present fairly in all material respects the financial condition and results of operations of the Parent and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied; provided that delivery
within the time period specified above of copies of the Parent’s Annual Report on Form 10-K for such fiscal year (together with the Parent’s annual report to stockholders, if any, prepared pursuant to Rule 14-a-3 under the Exchange Act)
prepared in accordance with the requirements therefor and filed with the Securities and Exchange Commission shall be deemed to satisfy the requirements of this Section 5.01(a); 
  
 (b) within 45 days after the end of each of the first three fiscal quarters of each fiscal year of the Parent, its unaudited
consolidated balance sheet and related unaudited consolidated statements of operations as of the end of and for such fiscal quarter and statements of cash flows for the then elapsed portion of the fiscal year, setting forth in each case in
comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of its Financial Officers as presenting fairly in all material respects
the financial condition and results of operations of the Parent and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments; provided that delivery
within the time period specified above of copies of the Parent’s Quarterly Report on Form 10-Q prepared in accordance with the requirements therefor and filed with the Securities and Exchange Commission shall be deemed to satisfy the
requirements of this Section 5.01(b); 
  
 (c) on or before the
date that is 45 days prior to the beginning of each fiscal year, financial projections of the Parent and its consolidated Subsidiaries for such fiscal year; 
  
 (d) concurrently with any delivery of financial statements under clause (a) or (b) above, a certificate of a Financial Officer of the Parent (i)
certifying as to whether a Default or Event of Default has occurred and, if a Default or Event of Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth
reasonably detailed calculations demonstrating compliance with Sections 6.01 and 6.02 and (iii) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial statements referred to in Section
3.04 and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate; 
  

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 (e) concurrently with any delivery of financial statements under clause (a) above, or promptly
thereafter, a letter addressed to the board of directors of the Parent from the accounting firm that reported on such financial statements stating that, in connection with the accounting firm’s audits, nothing came to the attention of such firm
that caused it to believe that the Parent failed to comply with Sections 6.01, 6.02 or 6.03 insofar as such Sections relate to financial and accounting matters, and that such accounting firm’s audit was not directed primarily toward obtaining
knowledge of noncompliance with such sections; 
  
 (f) promptly
after such filings become publicly available, electronic notice of the filing of all periodic and other reports and proxy statements filed by the Parent or any Subsidiary with the Securities and Exchange Commission, or any Governmental Authority
succeeding to any or all of the functions of said Commission, or with any national securities exchange; 
  
 (g) promptly after Moody’s or S&P shall have announced a change in the rating established or deemed to have been established for the Index Debt,
written notice of such rating change; and 
  
 (h) promptly
following any request therefore, such other information regarding the operations, business affairs and financial condition of the Parent or any Subsidiary, or compliance with the terms of this Agreement, as the Administrative Agent or any Lender may
reasonably request. 
  
 Section 5.02 Notices of Material
Events. The Borrower will furnish to the Administrative Agent and each Lender prompt notice of the following: 
  
 (a) the occurrence of any Default or Event of Default; 
  
 (b) the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or affecting the Borrower
or any Affiliate thereof that, if adversely determined, could reasonably be expected to result in a Material Adverse Effect; 
  
 (c) the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected to result in
liability of the Borrower and its Subsidiaries which could reasonably be expected to result in a Material Adverse Effect; and 
  
 (d) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect. 
  
 Each notice delivered under this Section shall be followed within five (5) Business Days by a
statement of a Financial Officer or other executive officer of the Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto. 
  
 Section 5.03 Existence; Conduct of Business. Each of the Parent and
the Borrower will, and will cause each of their respective Material Subsidiaries to, do or cause to be 
  

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 done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights,
licenses, permits, privileges and franchises material to the conduct of the business of the Parent and its Subsidiaries taken as a whole; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution
permitted under Section 6.05. 
  
 Section 5.04 Payment of
Obligations. Each of the Parent and the Borrower will, and will cause each of their respective Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, could result in a Material Adverse Effect before the same shall
become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) the Parent, the Borrower or such Subsidiary has set aside on its books adequate reserves with respect
thereto in accordance with GAAP and (c) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Effect. 
  
 Section 5.05 Maintenance of Properties; Insurance. Each of the Parent and the Borrower will, and will cause each of
their respective Subsidiaries to, (a) keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted, and (b) maintain, with financially sound and reputable insurance
companies, insurance in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses. 
  
 Section 5.06 Books and Records; Inspection Rights. Each of the Parent and the Borrower will, and will cause each of their respective Subsidiaries
to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. Each of the Parent and the Borrower will, and will cause each of their
respective Subsidiaries to, permit any representatives designated by the Administrative Agent, upon reasonable prior notice, to visit and inspect its properties during regular business hours, to examine and make extracts from its books and records,
and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested (provided that reasonable access to such books and records and properties
shall be made available to the Lenders if an Event of Default has occurred and is continuing). 
  
 Section 5.07 Compliance with Laws and Contracts. Each of the Parent and the Borrower will, and will cause each of their respective Subsidiaries to, (i) comply with all laws, rules, regulations and orders of any
Governmental Authority applicable to it or its property and (ii) comply with the terms and conditions of each material contract, agreement and indenture to which it is a party, except, in each case, where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect. 
  
 Section 5.08 Compliance with Environmental Laws. Each of the Parent and the Borrower will, and will cause each of their respective Subsidiaries to, comply in all material respects with all applicable
Environmental Laws, the failure of which could reasonably be expected to result in a Material Adverse Effect. 
  
 Section 5.09 Use of Proceed. The proceeds of the Loans will be used only to finance the working capital needs, potential acquisitions and for other
general corporate purposes 
  

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 of the Borrower and its Subsidiaries in the ordinary course of business. No part of the proceeds of any Loan will be used
by any Credit Party, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Boards, including Regulations T, U and X. Letters of Credit will be issued only to support obligations incurred by the
Parent and its Subsidiaries for general corporate purposes. 
  
 Section 5.10 New Material Subsidiaries. Promptly and in any event within ten (10) Business Days following the (i) organization or acquisition of any new Material Subsidiary or (ii) delivery of financial statements pursuant to Section
5.01 that indicate that a Subsidiary of the Parent (other than the Borrower) not at such time a Subsidiary Guarantor is a Material Subsidiary, cause such Material Subsidiary (other than a Subsidiary that is not a “United States Person”, as
such term is defined in Section 7701(a)(30) of the Code) to execute and deliver a Subsidiary Guarantee, together with such documents as the Administrative Agent may request evidencing corporate action taken to authorize such execution and delivery
and the incumbency and signatures of the officers of such Material Subsidiary. 
  
 ARTICLE VI 
  
 Negative
Covenants 
  
 Until (i) the Commitments have expired or
terminated, (ii) the principal of and interest on each Loan and all fees payable hereunder have been paid in full, (iii) all Letters of Credit have expired or terminated and (iv) all LC Disbursements have been reimbursed, each of the Parent and the
Borrower covenants and agrees with the Lenders that: 
  
 Section
6.01 Maximum Consolidated Leverage Ratio. The Consolidated Leverage Ratio shall not, as determined as of the last day of each fiscal quarter ending during the periods set forth below, exceed the maximum ratio set forth below opposite such
period: 
  

			
	 Each Fiscal Quarter Ending During the Period

	  	Maximum Consolidated
Leverage Ratio

	 Effective Date through April 30, 2005
	  	3.25 to 1.00
	 May 1, 2005 through April 30, 2006
	  	3.00 to 1.00
	 May 1, 2006 through the Maturity Date
	  	2.50 to 1.00

  
 Section 6.02
Minimum Consolidated Fixed Charge Coverage Ratio. The Consolidated Fixed Charge Coverage Ratio shall not, as determined as of the last day of each fiscal quarter ending during the periods set forth below, be less than the minimum ratio set
forth below opposite such period: 
  

			
	 Each Fiscal Quarter Ending During the Period

	  	Minimum Fixed Charge
Coverage Ratio

	 Effective Date through April 30, 2006
	  	3.00 to 1.00
	 May 1, 2006 through the Maturity Date
	  	3.50 to 1.00

  

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 Section 6.03 Indebtedness. Each of the Parent and the Borrower will not, and will not permit any
of their respective Subsidiaries to, create, incur, assume or permit to exist any Indebtedness, except: 
  
 (a) Indebtedness created hereunder; 
  
 (b) Indebtedness existing on the date hereof, or as required to be incurred pursuant to a contractual obligation in existence on the date hereof and,
which in either case is set forth in Schedule 6.03, and extensions, renewals and replacements of any such Indebtedness that do not increase the outstanding principal amount thereof; 
  
 (c) Indebtedness of the Parent to any Subsidiary and of any Subsidiary to the Parent or any other Subsidiary; 
  
 (d) Guarantees by the Parent of Indebtedness of any Subsidiary and by any
Subsidiary of Indebtedness of the Parent or any other Subsidiary (including, without limitation, the Guarantee by certain Subsidiaries of the Senior Unsecured Notes); 
  
 (e) Indebtedness of the Parent or any Subsidiary incurred to finance the acquisition, construction or improvement of any
assets, including Capital Lease Obligations and any Indebtedness assumed in connection with the acquisition of any such assets or secured by a Lien on any such assets prior to the acquisition thereof, and extensions, renewals and replacements of any
such Indebtedness that do not increase the outstanding principal amount thereof; provided that (i) such Indebtedness is incurred prior to or within ninety (90) days after such acquisition or the completion of such construction or improvement
and (ii) the aggregate principal amount of Indebtedness permitted by this clause (e) shall not exceed $5,000,000 at any time outstanding; 
  
 (f) Indebtedness of any Person that becomes a Subsidiary after the date hereof; provided that (i) such Indebtedness exists at the time such Person
becomes a Subsidiary and is not created in contemplation of or in connection with such Person becoming a Subsidiary and (ii) the aggregate principal amount of Indebtedness permitted by this clause (f) shall not exceed $5,000,000 at any time
outstanding; 
  
 (g) Indebtedness of the Parent or any Subsidiary
as an account party in respect of letters of credit; provided that the aggregate amount of Indebtedness permitted by this clause (g) shall not exceed $2,000,000 at any time outstanding; 
  
 (h) other Indebtedness of the Parent or any Subsidiary not otherwise
permitted in Section 6.03; provided that the aggregate principal amount of Indebtedness permitted by this clause (h) at any time outstanding shall not exceed fifteen percent (15%) of Consolidated Net Tangible Assets; 
  
 (i) Indebtedness arising from the honoring by a bank or other financial
institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary 
  

 - 46 - 

 course of business; provided that such Indebtedness is extinguished within five (5) Business Days of incurrence;
and 
  
 (j) the Senior Unsecured Notes and at any time, to the
extent that the Borrower has repaid all or a portion of the outstanding principal amount of the Senior Unsecured Notes, additional Indebtedness of the Borrower on terms not materially more restrictive than this Agreement (as determined in the
reasonable judgment of the Administrative Agent) to the Senior Unsecured Notes the aggregate principal amount at any time outstanding of which shall not exceed fifty percent (50%) of the principal amount of the Senior Unsecured Notes repaid at such
time. 
  
 Section 6.04 Liens. Each of the Parent and the
Borrower will not, and will not permit any of their respective Subsidiaries to, create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including
accounts receivable) or rights in respect of any thereof, except: 
  
 (a) Permitted Encumbrances; 
  
 (b) any Lien on any
property or asset of the Parent or any Subsidiary existing on the date hereof and set forth in Schedule 6.04; provided that (i) such Lien shall not apply to any other property or asset of the Parent or any Subsidiary and (ii) such Lien shall
secure only those obligations which it secures on the date hereof and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof; 
  
 (c) any Lien existing on any property or asset prior to the acquisition thereof by the Parent or any Subsidiary or existing
on any property or asset of any Person that becomes a Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary; provided that (i) such Lien is not created in contemplation of or in connection with such acquisition
or such Person becoming a Subsidiary            , as the case may be, (ii) such Lien shall not apply to any other property or assets of the Parent or any Subsidiary and (iii) such Lien
shall secure only those obligations which it secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case may be and extensions, renewals and replacements thereof that do not increase the outstanding principal
amount thereof; 
  
 (d) Liens on assets acquired, constructed or
improved by the Parent or any Subsidiary; provided that (i) such security interests secure Indebtedness permitted by clause (e) of Section 6.03, (ii) such security interests and the Indebtedness secured thereby are incurred prior to or within
ninety (90) days after such acquisition or the completion of such construction or improvement, (iii) the Indebtedness secured thereby does not exceed the cost of acquiring, constructing or improving such assets and (iv) such security interests shall
not apply to any other property or assets of the Parent or any Subsidiary; and 
  
 (e) Liens not otherwise permitted hereunder which secure obligations not exceeding in the aggregate fifteen percent (15%) of Consolidated Net Tangible Assets. 
  
 Section 6.05 Fundamental Changes. 
 . 
  

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 (a) Each of the Parent and the Borrower will not, and will not permit any Material Subsidiary to, merge
into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of (in one transaction or in a series of transactions) all or substantially all of its assets,
or all or substantially all of the stock of any of its Subsidiaries (in each case, whether now owned or hereafter acquired), or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto no Default or
Event of Default shall have occurred and be continuing (i) any Person may merge into the Parent or the Borrower in a transaction in which the Parent or the Borrower is the surviving corporation, (ii) any Subsidiary may merge into any Subsidiary or
any other Person in a transaction in which the surviving entity is a Subsidiary, (iii) any Subsidiary may sell, transfer, lease or otherwise dispose of its assets to the Parent or the Borrower or to another Subsidiary and (iv) any Subsidiary may
liquidate or dissolve if the Parent or the Borrower determines in good faith that such liquidation or dissolution is in the best interests of the Borrower and is not materially disadvantageous to the Lenders; provided that any such merger
involving a Person that is not a wholly owned Subsidiary immediately prior to such merger shall not be permitted unless also permitted by Section 6.06. 
  
 (b) The Parent and the Borrower will not, and will not permit any of their respective Subsidiaries to, engage in any business, if, as a result, the
general nature of the business of the Credit Parties taken as a whole, would be substantially changed from the general nature of the business of the Credit Parties taken as a whole, on the Effective Date. 
  
 Section 6.06 Investments, Loans, Advances, Guarantees and
Acquisitions. Each of the Parent and the Borrower will not, and will not permit any of their respective Subsidiaries to, purchase, hold or acquire (including pursuant to any merger with any Person that was not a wholly owned Subsidiary prior to
such merger) any capital stock, evidences of indebtedness or other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of, or make
or permit to exist any investment or any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of transactions) any assets of any other Person constituting a business unit (an
“Investment”), except:  
  
 (a) Permitted
Investments; 
  
 (b) Investments existing on the date hereof or
required to be made pursuant to a contractual obligation in existence on the date hereof and any extensions or renewals thereof, in either case as set forth in Schedule 6.06; 
  
 (c) Investments by each of the Parent and the Borrower existing on the date hereof in the capital stock of their respective
Subsidiaries; 
  
 (d) Investments made by the Parent to any
Subsidiary and made by any Subsidiary to the Parent or any other Subsidiary; 
  
 (e) Guarantees constituting Indebtedness permitted by Section 6.03; 
  
 (f) Investments in connection with pledges, deposits, payments or performance bonds made or given in the ordinary course of business in connection with or
to 
  

 - 48 - 

 secure statutory, regulatory or similar obligations including obligations under insurance, health, disability, safety or
environmental obligations; 
  
 (g) Investments received in
connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with customers, suppliers or any other Person; 
  
 (h) Investments received as part of a redemption or payment of or for, as a dividend on, or distribution in respect of other Investments permitted by this
Section 6.06; 
  
 (i) Office Acquisitions and Franchisee
Expansions; 
  
 (j) Franchisee Advance Payments; 
  
 (k) Investments in Franchisees; 
  
 (l) Permitted Acquisitions; 
  
 (m) Investments not otherwise permitted hereunder in an aggregate amount not
to exceed $5,000,000 during the term of this Agreement; and 
  
 (n) Investments by the Parent or its Subsidiaries in accounts receivable owing to them, if created or acquired in the ordinary course of business and payable in accordance with customary trade terms (including the dating of accounts
receivable and extensions of payments in the ordinary course of business). 
  
 Section 6.07 Hedging Agreements. No Credit Party will enter into any Hedging Agreement except Hedging Agreements entered into in the ordinary course of business to hedge or manage risks to which a Credit Party
is exposed in the conduct of its business or the management of its liabilities. 
  
 Section 6.08 Restricted Payments. Each of the Borrower and the Parent will not, and will not permit any of their respective Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any
Restricted Payment, except (a) the Parent may declare and pay dividends with respect to its Equity Interests payable solely in additional shares of its common stock or warrants, options or other rights entitling the holder thereof to purchase or
acquire shares of its common stock, (b) Subsidiaries may declare and pay dividends ratably with respect to their Equity Interests, (c) the Parent may make Restricted Payments pursuant to and in accordance with stock option plans or other benefit
plans for management or employees of the Parent, the Borrower and their respective Subsidiaries, (d) any Subsidiary may make Restricted Payments to the Parent and the Borrower or any of their Subsidiaries, (e) the Parent may make Restricted Payments
not otherwise permitted hereunder in an aggregate amount since the Effective Date not to exceed 30% of Consolidated Net Income for the period commencing on May 1, 2003 and ending on April 30 of the fiscal year preceding the year in which such
Restricted Payment is made, on a cumulative basis and (f) the Parent may use proceeds from the underwriters’ over-allotment option in the Parent Initial Public Offering for repurchases of Equity Interests in the Parent. 
  

 - 49 - 

 Section 6.09 Transactions with Affiliates. Each of the Borrower and the Parent will not, and will
not permit any of their respective Subsidiaries to, sell, lease or otherwise transfer any material property or material assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other material
transactions with, any of its Affiliates, except (a) except upon fair and reasonable terms not materially less favorable to the Parent or such Subsidiary than could be obtained on an arm’s-length basis with a Person not an Affiliate, (b)
transactions between or among the Parent and its wholly-owned Subsidiaries not involving any other Affiliate, (c) any Indebtedness permitted by Section 6.03(c), (d) any Restricted Payment permitted by Section 6.08, (e) transactions set forth on
Schedule 6.09 and (f) the special dividend described in the Memorandum to be paid to Cendant on the Effective Date. 
  
 Section 6.10 Restrictive Agreements. Each of the Borrower and the Parent will not, and will not permit any of their respective Subsidiaries to,
directly or indirectly, enter into, incur or permit to exist any agreement or other arrangement that prohibits, restricts or imposes any condition upon (a) the ability of the Parent or any Subsidiary to create, incur or permit to exist any Lien upon
any of its property or assets, or (b) the ability of any Subsidiary to pay dividends or other distributions with respect to any shares of its capital stock or to make or repay loans or advances to the Parent or any other Subsidiary or to Guarantee
Indebtedness of the Parent or any other Subsidiary; provided that (i) the foregoing shall not apply to restrictions and conditions imposed by law, by this Agreement or the Note Purchase Agreement (or any replacement thereof permitted pursuant
to Section 6.03(j)), (ii) the foregoing shall not apply to restrictions and conditions existing on the date hereof identified on Schedule 6.10 (but shall apply to any extension or renewal of, or any amendment or modification expanding the scope of,
any such restriction or condition), (iii) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending such sale, provided such restrictions and conditions apply
only to the Subsidiary that is to be sold and such sale is permitted hereunder, (iv) clause (a) of the foregoing shall not apply to restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted by this Agreement if
such restrictions or conditions apply only to the property or assets securing such Indebtedness and (v) clause (a) of the foregoing shall not apply to customary provisions in leases and other contracts restricting the assignment thereof. 

 
 Section 6.11 Transactions with Franchisees. Each of the Parent and
the Borrower will not and will not, permit any of their respective Subsidiaries to, engage in any material transactions with any Franchisee, except on such terms as are agreed to by an officer of the Parent or the Borrower, as applicable, that in
such officer’s reasonable business judgment, will provide economic benefit to the Parent or one of its Subsidiaries. 
  
 Section 6.12 Sale and Leasebacks. Each of the Parent and the Borrower will not and will not permit any of their respective Subsidiaries to enter
into any arrangement with any Person providing for the leasing by Parent or any Subsidiary of real or personal property that has been or is to be sold or transferred by Parent or such Subsidiary to such Person or to any other Person to whom funds
have been or are to be advanced by such Person on the security of such property or rental obligations of Parent or such Subsidiary unless such arrangement is entered into in connection with the financing of the acquisition of such property through
the proceeds of 
  

 -50- 

 a Capital Lease Obligation permitted by Section 6.03(e) and the sale or transfer of such property occurs within thirty
days following the acquisition thereof by Parent or any of its Subsidiaries. 
  
 Section 6.13 Accounting Changes. Each of the Parent and the Borrower will not and will not permit any of their respective Subsidiaries to (i) make any material change in accounting principles or reporting
practices, except as are made in conformity with GAAP and the Borrower provides subsequent notice of such change to the Administrative Agent concurrently with any delivery of financial statements under Section 5.01(a) or Section 5.01(b) of this
Agreement, or as are otherwise consented to by the Administrative Agent or (ii) change its fiscal year or quarters or the method of determination thereof. 
  
 ARTICLE VII 
  
 Events of Default 
  
 If any of the following events (“Events of Default”) shall occur: 
  
 (a) the Borrower shall fail to pay any principal of any Loan or any reimbursement obligation in respect of any LC Disbursement when and as the same shall
become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise; 
  
 (b) the Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in clause (a) of this
Article) payable under this Agreement, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days; 
  
 (c) any representation or warranty made or deemed made by or on behalf of the Parent, the Borrower or any of their
respective Subsidiaries in or in connection with this Agreement or any amendment or modification hereof or waiver hereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this
Agreement or any amendment or modification hereof or waiver hereunder, shall prove to have been incorrect in any material respect when made or deemed made; 
  
 (d) the Parent or the Borrower shall fail to observe or perform any covenant, condition or agreement contained in Section 5.01 (other than clauses (a),
(b) and (c)), 5.02, 5.03 (with respect to the maintenance of the Parent’s or the Borrower’s legal existence only), 5.08 or 5.09 or in Article VI; 
  
 (e) the Parent or the Borrower shall fail to observe or perform any covenant, condition or agreement contained in Section 5.01(a), (b) or (c) or Section
5.07 and such failure shall continue unremedied for a period of five (5) Business Days; 
  
 (f) the Parent, the Borrower or any of their respective Subsidiaries shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified in clause (a), (b),
(d) or (e) of this Article), the Parent Guarantee, the Subsidiary Guarantee or any other Credit Document, and such failure shall continue unremedied 
  

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 for a period of thirty (30) days after the Parent, the Borrower or any of their respective Subsidiaries obtains knowledge
thereof; 
  
 (g) the Parent, the Borrower or any of their
respective Subsidiaries shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Indebtedness, when and as the same shall become due and payable; 
  
 (h) any event or condition occurs that results in any Material Indebtedness
becoming due prior to its scheduled maturity or that enables or permits the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due (after giving effect to
applicable grace periods), or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided that this clause (h) shall not apply to secured Indebtedness that becomes due as a result of the
voluntary sale or transfer of the property or assets securing such Indebtedness; 
  
 (i) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Parent, the Borrower or any Material Subsidiary or
its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Parent, the Borrower or any Material Subsidiary or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for 60 days or an order or decree
approving or ordering any of the foregoing shall be entered; 
  
 (j) the Parent, the Borrower or any Material Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency,
receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (i) of this Article, (iii) apply for or consent to the
appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Parent, the Borrower or any Material Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a
petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing; 
  
 (k) the Parent, the Borrower or any Material Subsidiary shall generally not pay its debts as they become due or shall admit
in writing its inability or failure to pay its debts as they become due; 
  
 (l) one or more judgments for the payment of money in an aggregate amount (not paid or fully covered by insurance, as to which the insurer has acknowledged coverage) in excess of $5,000,000 shall be rendered against
the Borrower, any Subsidiary or any combination thereof and the same shall remain undischarged for a period of 30 consecutive days during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to
attach or levy upon any assets of the Borrower or any Subsidiary to enforce any such judgment; 
  

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 (m) an ERISA Event shall have occurred that, in the opinion of the Required Lenders, when taken together
with all other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Effect; or 
  
 (n) a Change in Control shall occur; 
  
 then, and in every such event (other than an event with respect to the Borrower described in clause (i) or (j) of this Article), and at any time
thereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Borrower, take either or both of the following actions, at the same or different times: (i) terminate
the Commitments, and thereupon the Commitments shall terminate immediately, and (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be
declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall become due and payable
immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower; and in case of any event with respect to the Borrower described in clause (i) or (j) of this Article, the Commitments
shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall automatically become due and payable, without
presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower. 
  
 ARTICLE VIII 
  
 The Administrative Agent 
  
 Each of the Lenders
and the Issuing Bank hereby irrevocably appoints the Administrative Agent as its agent and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms
hereof, together with such actions and powers as are reasonably incidental thereto. 
  
 The bank serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent,
and such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if it were not the Administrative Agent hereunder. 
  
 The Administrative Agent shall not have any duties or obligations except
those expressly set forth herein. Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default or Event of Default has occurred and is
continuing, (b) the Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby that the Administrative Agent is required to
exercise in writing as directed by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02), and (c) except as expressly set forth herein, the Administrative
Agent 
  

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 shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the
Borrower or any of its Subsidiaries that is communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent shall not be liable for any action taken or not taken by it with
the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02) or in the absence of its own gross negligence or willful misconduct.
The Administrative Agent shall be deemed not to have knowledge of any Default or Event of Default unless and until written notice thereof is given to the Administrative Agent by the Borrower or a Lender, and the Administrative Agent shall not be
responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement, (ii) the contents of any certificate, report or other document delivered hereunder or in
connection herewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement or any other agreement,
instrument or document, or (v) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent. 
  
 The Administrative Agent shall be entitled to rely upon, and shall not incur
any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Administrative Agent also may rely
upon any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the
Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 
  
 The Administrative Agent may perform any and all its duties and exercise its
rights and powers by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related
Parties. The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the
syndication of the credit facilities provided for herein as well as activities as Administrative Agent. 
  
 Subject to the appointment and acceptance of a successor Administrative Agent as provided in this paragraph, the Administrative Agent may resign at any
time by notifying the Lenders, the Issuing Bank and the Borrower. Upon any such resignation, the Required Lenders shall have the right, in consultation with the Borrower, provided that no Default and Event of Default has occurred and is
continuing to appoint a successor. If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the
retiring Administrative Agent may, on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank. Upon the acceptance of its
appointment as Administrative Agent 
  

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 hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and
duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable
to its predecessor unless otherwise agreed between the Borrower and such successor. After the Administrative Agent’s resignation hereunder, the provisions of this Article and Section 9.03 shall continue in effect for the benefit of such
retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Administrative Agent. 
  
 Each Lender acknowledges that it has, independently and without reliance upon
the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently
and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon
this Agreement, any related agreement or any document furnished hereunder or thereunder. 
  
 ARTICLE IX 
  
 Miscellaneous

  
 Section 9.01 Notices. 
  
 (a) Except in the case of notices and other communications expressly
permitted to be given by telephone (and subject to paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail
or sent by telecopy, as follows: 
  
 (i) if to
the Borrower or to the Parent, to the Borrower or the Parent at Jackson Hewitt Inc. or Jackson Hewitt Tax Service Inc., as applicable, 7 Sylvan Way, Parsippany, New Jersey 07054, Attention of Mark L. Heimbouch, Chief Financial Officer (Telecopy No.
(973) 496-2760) with a copy (which shall not constitute notice to Skadden, Arps, Slate, Meagher & Flom LLP, Four Times Square, New York, NY 10036, Attn: James Douglas (Facsimile No: (917) 777-2868; 
  
 (ii) if to the Administrative Agent, to JPMorgan Chase Bank,
Loan and Agency Services Group, One Chase Manhattan Plaza, 8th Floor, New York, New York 10081, Attention of Trey Chavez (Telecopy No. (713) 750-2932), with a copy to JPMorgan Chase Bank, 270 Park Avenue, New York 10017, Attention of
[    ] (Telecopy No. [    ]) with a copy (which shall not constitute notice) to Kirkland & Ellis LLP, 200 East Randolph Drive, Chicago, Illinois 60601, Attention of Linda K. Myers, P.C., (Telecopy No.
(312) 861-2200); 
  

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 (iii) if to the Issuing Bank, to it at JPMorgan Chase Bank, Loan and Agency Services
Group, One Chase Manhattan Plaza, 8th Floor, New York, New York 10081, Attention of Trey Chavez (Telecopy No. (713) 750-2932), with a copy to JPMorgan Chase Bank, 270 Park Avenue, New York 10017, Attention of [ ] (Telecopy No. [ ]) with a copy
(which shall not constitute notice) to Kirkland & Ellis LLP, 200 East Randolph Drive, Chicago, Illinois 60601, Attention of Linda K. Myers, P.C., (Telecopy No. (312) 861-2200); and 
  
 (iv) if to any other Lender, to it at its address (or telecopy number) set forth in its Administrative
Questionnaire. 
  
 (b) Notices and other communications to the
Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by
the Administrative Agent and the applicable Lender. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it;
provided that approval of such procedures may be limited to particular notices or communications. 
  
 (c) Any party hereto may change its address or telecopy number for notices and other communications hereunder by notice to the other parties hereto. All
notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt. 
  
 (d) All notices, requests and demands to or upon the respective parties hereto shall be deemed to have been duly given or
made when delivered, or, in the case of telecopy notice, when received. 
  
 Section 9.02 Waivers; Amendment 
  
 (a) No failure
or delay by the Administrative Agent, the Issuing Bank or any Lender in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Administrative Agent, the Issuing Bank and the Lenders hereunder are
cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a
Letter of Credit shall not be construed as a waiver of any Default or Event of Default, regardless of whether the Administrative Agent, any Lender or the Issuing Bank may have had notice or knowledge of such Default at the time. 
  

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 (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to
an agreement or agreements in writing entered into by the Borrower and the Required Lenders or by the Borrower and the Administrative Agent with the consent of the Required Lenders; provided that no such agreement shall (i) increase the
Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written consent of each
Lender affected thereby, (iii) postpone the scheduled date of payment of the principal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse any such payment, or
postpone the scheduled date of expiration of any Commitment, without the written consent of each Lender affected thereby, (iv) change Section 2.16(b) or (c) in a manner that would alter the pro rata sharing of payments required thereby, without the
written consent of each Lender, or (v) change any of the provisions of this Section or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to waive, amend or modify any
rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender; provided further that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative
Agent or the Issuing Bank hereunder without the prior written consent of the Administrative Agent or the Issuing Bank, as the case may be. 
  
 Section 9.03 Expenses; Indemnity; Damage Waiver. 
  
 (a) The Borrower shall pay (i) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, including the
reasonable and documented fees, charges and disbursements of counsel for the Administrative Agent, in connection with the syndication of the credit facilities provided for herein, the preparation and administration of this Agreement or any
amendments, modifications or waivers of the provisions hereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable and documented out-of-pocket expenses incurred by the Issuing Bank in connection
with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent, the Issuing Bank or any Lender,
including the reasonable and documented fees, charges and disbursements of any counsel for the Administrative Agent, the Issuing Bank or any Lender, in connection with the enforcement or protection of its rights in connection with this Agreement,
including its rights under this Section, or in connection with the Loans made or Letters of Credit issued hereunder, including all such reasonable and documented out-of-pocket expenses incurred during any workout, restructuring or negotiations in
respect of such Loans or Letters of Credit. 
  
 (b) The Borrower
shall indemnify the Administrative Agent, the Issuing Bank and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all
losses, claims, damages, liabilities and related expenses, including the reasonable and documented fees, charges and disbursements of any counsel (including any additional counsel after notice to the Borrower of such retention) for any Indemnitee,
incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement or any agreement or instrument contemplated hereby, the performance by the 
  

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 parties hereto of their respective obligations hereunder or the consummation of the Transactions or any other
transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with
such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Borrower or any of its Subsidiaries, or any
Environmental Liability related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other
theory and regardless of whether any Indemnitee is a party thereto; provided that (A) the Borrower shall not be liable for any settlement of any proceeding effected without the Borrower’s written consent (such consent not to be
unreasonably withheld) and (B) such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses resulted from the gross negligence or willful misconduct of such Indemnitee.

  
 (c) To the extent that the Borrower fails to pay any amount
required to be paid by it to the Administrative Agent or the Issuing Bank under paragraph (a) or (b) of this Section, each Lender severally agrees to pay to the Administrative Agent or the Issuing Bank, as the case may be, such Lender’s
Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the Administrative Agent or the Issuing Bank in its capacity as such. 
  
 (d) To the extent permitted by applicable law, the Borrower shall not assert, and 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 any agreement or instrument contemplated hereby, the Transactions,
any Loan or Letter of Credit or the use of the proceeds thereof. 
  
 (e) All amounts due under this Section shall be payable not later than ten (10) days after written demand therefore. 
  
 Section 9.04 Successors and Assign. 
  
 (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns
permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), except that (i) the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each
Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section. Nothing in
this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of
Credit), Participants (to the extent provided in paragraph (c) of this Section) and, to the extent expressly contemplated hereby, the 
  

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 Related Parties of each of the Administrative Agent, the Issuing Bank and the Lenders) any legal or equitable right,
remedy or claim under or by reason of this Agreement. 
  
 (b) (i)
Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the
time owing to it) with the prior written consent (such consent not to be unreasonably withheld) of: 
  
 (A) the Borrower, provided that no consent of the Borrower shall be required for an assignment to a Lender, an Affiliate of a
Lender or, if an Event of Default has occurred and is continuing, any other assignee; 
  
 (B) the Administrative Agent; and 
  
 (C) The Issuing Bank. 
  
 (ii) Assignments shall be subject to the following additional conditions: 
  
 (A) except in the case of an assignment to a Lender or an Affiliate of a Lender or to an Approved Fund, an
assignment of the entire remaining amount of the assigning Lender’s Commitment or Loans, the amount of the Commitment or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with
respect to such assignment is delivered to the Administrative Agent) shall not be less than $1,000,000 unless each of the Borrower and the Administrative Agent otherwise consent, provided that no such consent of the Borrower shall be required
if an Event of Default has occurred and is continuing; 
  
 (B) 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; 
  
 (C) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and
Assumption, together with a processing and recordation fee of $3,500; and 
  
 (D) the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. 
  
 For the purposes of this Section 9.04(b), the term “Approved Fund” has the following meaning: 
  
 “Approved Fund” means any Person (other
than a natural person) that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of its business and that is 
  

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 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. 
  
 (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this Section, from and after the effective date specified in each Assignment and Assumption the assignee thereunder shall be a party hereto and, to the
extent of the interest assigned by such Assignment and Assumption, 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 Assumption,
be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption 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 2.13, 2.14, 2.15 and 9.03). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 9.04 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 paragraph (c) of this Section. 
  
 (iv) The Administrative Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of its offices a copy of each
Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amount of the Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof
from time to time (the “Register”). The entries in the Register shall be conclusive, in the absence of manifest error, and the Borrower, the Administrative Agent, the Issuing Bank 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, the Issuing Bank and any Lender,
at any reasonable time and from time to time upon reasonable prior notice. 
  
 (v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a
Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section and any written consent to such assignment required by paragraph (b) of this Section, the Administrative Agent shall accept such Assignment and
Assumption and record the information contained therein in the Register. No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph. 
  
 (c) (i) Any Lender may, without the consent of the Borrower, the
Administrative Agent or the Issuing Bank, sell participations to one or more banks or other entities (a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its
Commitment and the Loans owing to it); provided 
  

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 that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations and (C) the Borrower, the Administrative Agent, the Issuing Bank and the other Lenders shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver
described in the first proviso to Section 9.02(b) that affects such Participant. Subject to paragraph (c)(ii) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of and subject to Sections 2.13, 2.14 and 2.15
to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though it
were a Lender, provided such Participant agrees to be subject to Section 2.16(c) as though it were a Lender. 
  
 (ii) A Participant shall not be entitled to receive any greater payment under Section 2.13, 2.14 or 2.15 than the applicable Lender would
have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent. A Participant shall not be entitled to the
benefits of Section 2.15 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.15(e) as though it were a Lender. 
  
 (d) Any Lender may at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement to secure obligations of such Lender, including without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

  
 Section 9.05 Survival. All covenants, agreements,
representations and warranties made by the Borrower herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of this Agreement and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent,
the Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. The provisions of Sections 2.13,
2.14, 2.15 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of 
  

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 the Loans, the expiration or termination of the Letters of Credit and the Commitments or the termination of this
Agreement or any provision hereof. 
  
 Section 9.06
Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall
constitute a single contract. This Agreement and any separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all
previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Parent, the Borrower, the
Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement. 
  
 Section 9.07 Severability. Any provision of this Agreement held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining
provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 
  
 Section 9.08 Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations at any time owing by
such Lender or Affiliate to or for the credit or the account of the Borrower against any of and all the obligations of the Borrower now or hereafter existing under this Agreement held by such Lender, irrespective of whether or not such Lender shall
have made any demand under this Agreement and although such obligations may be unmatured. The rights of each Lender under this Section are in addition to other rights and remedies (including other rights of setoff) which such Lender may have.

  
 Section 9.09 Governing Law; Jurisdiction; Consent to
Service of Process. 
  
 (a) This Agreement shall be construed
in accordance with and governed by the law of the State of New York. The Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in
New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of
any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such
Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may 
  

 -62- 

 be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this
Agreement shall affect any right that the Administrative Agent, the Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this Agreement against the Borrower or its properties in the courts of any jurisdiction.

  
 (b) The Borrower hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any court referred to in
paragraph (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 
  
 (c) Each party to this Agreement irrevocably consents to service of process
in the manner provided for notices in Section 9.01. Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law. 
  
 Section 9.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
  
 Section 9.11 Headings. Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of
this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 
  
 Section 9.12 Confidentiality. Neither the Administrative Agent, the Issuing Bank nor any Lender shall disclose the Confidential Information or use,
either directly or indirectly any of the Confidential Information except in concert with the Borrower and in connection with this Agreement and the transactions contemplated hereby; provided that the Confidential Information may be disclosed
(a) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature
of such Confidential Information and who agree to be bound by this Section of the Agreement, who need to know the Confidential Information for purposes related to this Agreement or any other Credit Document or any transactions contemplated thereby
or reasonably incidental to the administration of this Agreement or the other Credit Documents, (b) to the extent requested by any regulatory authority, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal
process, provided that the Administrative Agent, the Issuing Bank or such Lender, as the case may be, shall request confidential treatment 
  

 -63- 

 of such Confidential Information to the extent permitted by applicable law and the Administrative Agent, the Issuing Bank
or such Lender, as the case may be, shall, to the extent permitted by applicable law, promptly inform the Borrower with respect thereto so that the Borrower may seek appropriate protective relief to the extent permitted by applicable law,
provided further that in the event that such protective remedy or other remedy is not obtained, the Administrative Agent, the Issuing Bank or such Lender, as the case may be, shall furnish only that portion of the Confidential
Information that is legally required and shall disclose the Confidential Information in a manner reasonably designed to preserve its confidential nature and shall cooperate with the Borrower’s counsel to enable the Borrower to attempt to obtain
a protective order or other reliable assurance that confidential treatment will be accorded to the Confidential Information, (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any suit, action
or proceeding relating to this Agreement or the enforcement of rights hereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee
of or Participant in, any of its rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g) with the consent of
the Borrower or (h) to the extent such Confidential Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to the Administrative Agent, the Issuing Bank or any Lender on a
nonconfidential basis from a source other than the Borrower. Neither the Agent nor any Lender shall make any public announcement, advertisement, statement or communication regarding the Borrower or any Related Parties or this Agreement or the
transactions contemplated hereby without the prior written consent of the Borrower. The obligations of the Agent and any Lender under this Section shall survive termination or expiration of this Agreement. 
  
 Section 9.13 Interest Rate Limitation. Notwithstanding anything herein
to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the “Charges”), shall exceed
the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan
hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the
operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefore) until such cumulated amount, together with interest
thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender. 
  
 Section 9.14 USA Patriot Act. Each Lender hereby notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub.
L. 107-56 (signed into law October 26, 2001)) (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. In connection therewith, each Lender hereby agrees to provide only such information that 
  

 -64- 

 is, in such Lender’s sole determination, required by the Act and to provide such information in a manner that is
consistent with the confidentiality provisions set forth in Section 9.12 hereto. 
  
 * * * * * 
  

 -65- 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective
authorized officers as of the day and year first above written. 
  

			
	JACKSON HEWITT TAX SERVICE INC.
		
	By	 	 
	 Name:
	 	 
	 Title:
	 	 
	 Address:

	 Taxpayer ID Number:

	
	JACKSON HEWITT INC.
		
	By	 	 
	 Name:
	 	 
	 Title:
	 	 
	 Address:

	 Taxpayer ID Number:

	
	JPMORGAN CHASE BANK, individually and as Administrative Agent,
		
	By	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	[OTHER BANKS]
		
	By	 	 
	 Name:
	 	 
	 Title:
	 	 

  

 -S-1-Form of Note Purchase Agreement

 Exhibit 10.13 
  
 Draft of June 17, 2004 
  

  
 Jackson Hewitt Tax Service Inc. 
  
 and 
  
 Jackson Hewitt Inc. 
  
 $175,000,000 Floating Rate Senior Notes due June [    ], 2009 
  

  
 Note
Purchase Agreement 
  

  
 Dated as of June [    ], 2004 
  

  

 TABLE OF CONTENTS 
  

					
	SECTION	  	HEADING	  	PAGE
			
	 SECTION 1.
	  	AUTHORIZATION OF NOTES	  	1
			
	 Section 1.1.
	  	Description of Notes	  	1
	 Section 1.2.
	  	Note Interest Rate	  	1
			
	 SECTION 2.
	  	SALE AND PURCHASE OF NOTES	  	2
			
	 Section 2.1.
	  	Notes	  	2
	 Section 2.2.
	  	Guaranty	  	2
			
	 SECTION 3.
	  	CLOSING	  	2
			
	 SECTION 4.
	  	CONDITIONS TO CLOSING	  	3
			
	 Section 4.1.
	  	Representations and Warranties	  	3
	 Section 4.2.
	  	Performance; No Default	  	3
	 Section 4.3.
	  	Compliance Certificates	  	3
	 Section 4.4.
	  	Opinions of Counsel	  	4
	 Section 4.5.
	  	Purchase Permitted by Applicable Law, Etc	  	4
	 Section 4.6.
	  	Related Transactions	  	4
	 Section 4.7.
	  	Payment of Special Counsel Fees	  	5
	 Section 4.8.
	  	Private Placement Number	  	5
	 Section 4.9.
	  	Changes in Corporate Structure	  	5
	 Section 4.10.
	  	Subsidiary Guaranty	  	5
	 Section 4.11.
	  	Proceedings and Documents	  	5
			
	 SECTION 5.
	  	REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE
ISSUER	  	6
			
	 Section 5.1.
	  	Organization; Power and Authority	  	6
	 Section 5.2.
	  	Authorization, Etc	  	6
	 Section 5.3.
	  	Disclosure	  	6
	 Section 5.4.
	  	Organization and Ownership of Shares of Subsidiaries	  	7
	 Section 5.5.
	  	Financial Statements	  	7
	 Section 5.6.
	  	Compliance with Laws, Other Instruments, Etc	  	7
	 Section 5.7.
	  	Governmental Authorizations, Etc	  	8
	 Section 5.8.
	  	Litigation; Observance of Statutes and Orders	  	8
	 Section 5.9.
	  	Taxes	  	8
	 Section 5.10.
	  	Title to Property; Leases	  	9
	 Section 5.11.
	  	Licenses, Permits, Etc	  	9
	 Section 5.12.
	  	Compliance with ERISA	  	9
	 Section 5.13.
	  	Private Offering by the Company	  	10
	 Section 5.14.
	  	Use of Proceeds; Margin Regulations	  	10
	 Section 5.15.
	  	Existing Debt; Future Liens	  	11

  

 -i- 

					
	 Section 5.16.
	  	Foreign Assets Control Regulations, Etc	  	11
	 Section 5.17.
	  	Status under Certain Statutes	  	11
	 Section 5.18.
	  	Environmental Matters	  	11
	 Section 5.19.
	  	Solvency	  	12
			
	 SECTION 6.
	  	REPRESENTATIONS OF THE PURCHASER	  	12
			
	 Section 6.1.
	  	Purchase for Investment	  	12
	 Section 6.2.
	  	Source of Funds	  	12
			
	 SECTION 7.
	  	INFORMATION AS TO COMPANY	  	14
			
	 Section 7.1.
	  	Financial and Business Information	  	14
	 Section 7.2.
	  	Officer’s Certificate	  	17
	 Section 7.3.
	  	Inspection	  	17
			
	 SECTION 8.
	  	PAYMENT OF THE NOTES	  	18
			
	 Section 8.1.
	  	Required Payments	  	18
	 Section 8.2.
	  	Optional Prepayment of the Notes with LIBOR Breakage Amount	  	18
	 Section 8.3.
	  	Maturity; Surrender, Etc	  	19
	 Section 8.4.
	  	Purchase of Notes	  	19
	 Section 8.5.
	  	Change in Control	  	19
			
	 SECTION 9.
	  	AFFIRMATIVE COVENANTS	  	21
			
	 Section 9.1.
	  	Compliance with Law	  	21
	 Section 9.2.
	  	Insurance	  	21
	 Section 9.3.
	  	Maintenance of Properties	  	21
	 Section 9.4.
	  	Payment of Taxes and Claims	  	22
	 Section 9.5.
	  	Corporate Existence, Etc	  	22
	 Section 9.6.
	  	Additional Subsidiary Guarantors	  	22
			
	 SECTION 10.
	  	NEGATIVE COVENANTS	  	23
			
	 Section 10.1.
	  	Consolidated Leverage Ration	  	23
	 Section 10.2.
	  	Consolidated Fixed Charge Coverage Ratio	  	23
	 Section 10.3.
	  	Limitation on Liens	  	23
	 Section 10.4
	  	Restricted Payments	  	25
	 Section 10.5.
	  	Sales of Assets	  	25
	 Section 10.6.
	  	Merger, Consolidation	  	26
	 Section 10.7.
	  	Nature of Business	  	27
	 Section 10.8.
	  	Transactions with Affiliates	  	27
	 Section 10.9.
	  	Subsidiaries	  	27

  

 -ii- 

					
	 SECTION 11.
	  	 GUARANTY BY THE COMPANY
	  	27
			
	 Section 11.1.
	  	 Guaranty by the Company
	  	27
	 Section 11.2.
	  	 Guaranty of Payment and Performance
	  	28
	 Section 11.3.
	  	 General Provisions Relating to Guaranty by the Company of Issuer’s Obligations under this Agreement and the Note
	  	28
			
	 SECTION 12.
	  	 EVENTS OF DEFAULT
	  	33
			
	 SECTION 13.
	  	 REMEDIES ON DEFAULT, ETC
	  	35
			
	 Section 13.1.
	  	 Acceleration
	  	35
	 Section 13.2.
	  	 Other Remedies
	  	36
	 Section 13.3.
	  	 Rescission
	  	36
	 Section 13.4.
	  	 No Waivers or Election of Remedies, Expenses, Etc
	  	36
			
	 SECTION 14.
	  	 REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES
	  	37
			
	 Section 14.1.
	  	 Registration of Notes
	  	37
	 Section 14.2.
	  	 Transfer and Exchange of Notes
	  	37
	 Section 14.3.
	  	 Replacement of Notes
	  	38
			
	 SECTION 15.
	  	 PAYMENTS ON NOTES
	  	38
			
	 Section 15.1.
	  	 Place of Payment
	  	38
	 Section 15.2.
	  	 Home Office Payment
	  	38
			
	 SECTION 16.
	  	 EXPENSES, ETC
	  	39
			
	 Section 16.1.
	  	 Transaction Expenses
	  	39
	 Section 16.2.
	  	 Survival
	  	39
			
	 SECTION 17.
	  	 SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE
AGREEMENT
	  	39
			
	 SECTION 18.
	  	 AMENDMENT AND WAIVER
	  	40
			
	 Section 18.1.
	  	 Requirements
	  	40
	 Section 18.2.
	  	 Solicitation of Holders of Notes
	  	40
	 Section 18.3.
	  	 Binding Effect, Etc
	  	40
	 Section 18.4.
	  	 Notes Held by Company, Issuer, Etc
	  	41
			
	 SECTION 19.
	  	 NOTICES
	  	41
			
	 SECTION 20.
	  	 REPRODUCTION OF DOCUMENTS
	  	41
			
	 SECTION 21.
	  	 CONFIDENTIAL INFORMATION
	  	42

  

 -iii- 

					
	 SECTION 22.
	  	SUBSTITUTION OF PURCHASER	  	43
			
	 SECTION 23.
	  	MISCELLANEOUS	  	43
			
	 Section 23.1.
	  	Successors and Assigns	  	43
	 Section 23.2.
	  	Payments Due on Non-Business Days	  	43
	 Section 23.3.
	  	Severability	  	43
	 Section 23.4.
	  	Construction	  	43
	 Section 23.5.
	  	Counterparts	  	44
	 Section 23.6.
	  	Governing Law	  	44

  

 -iv- 

					
			
	SCHEDULE A	  	—	  	Information Relating To Purchasers
			
	SCHEDULE B	  	—	  	Defined Terms
			
	SCHEDULE 5.4	  	—	  	Subsidiaries of the Company, Ownership of Subsidiary Stock
			
	SCHEDULE 10.3	  	—	  	Existing Liens
			
	EXHIBIT 1	  	—	  	Form of Floating Rate Senior Note due June [25], 2009
			
	EXHIBIT 2.2	  	—	  	Subsidiary Guaranty
			
	EXHIBIT 4.4(a)	  	—	  	Form of Opinion of Skadden, Arps, Slate, Meagher & Flom LLP, Special Counsel to the Company and the Issuer
			
	EXHIBIT 4.4(b)	  	—	  	Form of Opinion of Piper Rudnick, LLP, Special Counsel to the Issuer
			
	EXHIBIT 4.4(c)	  	—	  	Form of Opinion of Chapman and Cutler LLP, Special Counsel for the Purchasers

  

 -v- 

 JACKSON HEWITT TAX SERVICE INC.

 7 SYLVAN WAY 
 PARSIPPANY, NEW JERSEY 07054 
  
 AND 
  
 JACKSON HEWITT INC. 
 C/O JACKSON
HEWITT TAX SERVICE INC. 
 7 SYLVAN WAY 

PARSIPPANY, NEW JERSEY 07054 
  
 $175,000,000 FLOATING RATE SENIOR NOTES DUE
JUNE [25], 2009 
  
 Dated as of 
 June [21], 2004 
  
 TO THE PURCHASERS LISTED IN 
           THE ATTACHED SCHEDULE A: 
  
 Ladies and Gentlemen: 
  
 JACKSON HEWITT TAX SERVICE INC., a Delaware corporation
(the “Company”), and JACKSON HEWITT INC., a Virginia corporation (the “Issuer”), hereby jointly and severally agree with the Purchasers listed in the attached Schedule A
(the “Purchasers”) to this Note Purchase Agreement (this “Agreement”) as follows: 
  
 SECTION 1. AUTHORIZATION OF NOTES. 
  
 Section 1.1. Description of Notes. The Issuer will authorize the issue and sale
of $175,000,000 aggregate principal amount of its Floating Rate Senior Notes due June [25], 2009 (the “Notes”). The term “Notes” shall also include any such notes issued in substitution therefor pursuant to Section
14 of this Agreement. The Notes shall be substantially in the form set out in Exhibit 1 with such changes therefrom, if any, as may be approved by the Purchasers and the Issuer. Certain capitalized terms used in this Agreement are defined in
Schedule B; references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement. 
  
 Section 1.2. Note Interest Rate. 
  
 (i) The Notes shall bear interest (computed on the basis of a 360-day year and actual days elapsed) on the unpaid principal thereof from the date of issuance at a
floating rate equal to the Adjusted LIBOR Rate from time to time, payable quarterly on the [twenty fifth] day of March, June, September and December, commencing on September [25], 2004, until such principal sum shall have become due and payable
(whether at maturity, upon notice of 

 prepayment or otherwise) (each such date being referred to herein as an “Interest Payment Date”) and interest (so
computed) on any overdue principal and LIBOR Breakage Amount, if any, and, to the extent permitted by applicable law, on any overdue interest, from the due date thereof (whether by acceleration or otherwise) at the Default Rate until paid.

  
 (ii) The Adjusted LIBOR Rate shall be determined by the Issuer, and
notice thereof shall be given to the holders of the Notes, within three Business Days after the beginning of each Interest Period, together with a copy of the relevant screen used for the determination of LIBOR, a calculation of Adjusted LIBOR Rate
for such Interest Period, the number of days in such Interest Period, the date on which interest for such Interest Period will be paid and the amount of interest to be paid to each holder of Notes on such date. In the event that the holders of more
than 50% in aggregate principal amount of the outstanding Notes do not concur with such determination by the Issuer, within ten Business Days after receipt by such holders of the notice delivered by the Issuer pursuant to the immediately preceding
sentence, such holders of the Notes shall provide notice to the Issuer, together with a copy of the relevant screen used for the determination of LIBOR, a calculation of Adjusted LIBOR Rate for such Interest Period, the number of days in such
Interest Period, the date on which interest for such Interest Period will be paid and the amount of interest to be paid to each holder of Notes on such date, and any such determination made by the holders of the Notes in accordance with the
provisions of this Agreement, shall be presumptively correct absent manifest error. 
  
 SECTION 2. SALE AND PURCHASE OF NOTES. 
  
 Section 2.1. Notes. Subject to the terms and conditions of this Agreement, the
Issuer will issue and sell to each Purchaser and each Purchaser will purchase from the Issuer, at the Closing provided for in Section 3, Notes in the principal amount specified opposite such Purchaser’s name in Schedule A at the purchase price
of 100% of the principal amount thereof. The obligations of each Purchaser hereunder are several and not joint obligations and each Purchaser shall have no obligation and no liability to any Person for the performance or nonperformance by any other
Purchaser hereunder. 
  
 Section 2.2. Guaranty. The payment by the
Issuer of all amounts due with respect to the Notes and the performance by the Issuer of its obligations under this Agreement will be absolutely and unconditionally guaranteed by the Company pursuant to the terms of this Agreement and the Subsidiary
Guarantors pursuant to the Subsidiary Guaranty, which shall be substantially in the form of Exhibit 2.2 attached hereto, and otherwise in accordance with Section 9.6 hereof. 
  
 SECTION 3. CLOSING. 
  
 The sale and purchase of the Notes to be purchased by each Purchaser shall occur at the offices of Kirkland & Ellis LLP, 153 East
53rd Street, New York, New York 10022 at 10:00 a.m. New York time, at a closing (the “Closing”) on the fourth Business
Day following the execution of the underwriting agreement to be entered into in connection with the initial public offering (“IPO”) of the Company’s common stock, par value $0.01 per share (the “Common Stock”),
or 
  

 -2- 

 on such other Business Day thereafter on or prior to July 7, 2004 as may be agreed upon by the Issuer, the Company and the
Purchasers. At the Closing, the Issuer will deliver to each Purchaser the Notes to be purchased by such Purchaser in the form of a single Note (or such greater number of Notes in denominations of at least $100,000 as such Purchaser may reasonably
request) dated the date of the Closing and registered in such Purchaser’s name (or in the name of a nominee of such Purchaser), against delivery by such Purchaser to the Issuer or its order of immediately available funds in the amount of the
purchase price therefor by wire transfer of immediately available funds for the account of the Issuer to Account Number 304 192 813, Account Name Jackson Hewitt Inc., at JPMorgan Chase, ABA Number 021 000 021. If at the Closing the Issuer shall fail
to tender such Notes to any Purchaser as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to any Purchaser’s satisfaction, such Purchaser shall, at such Purchaser’s election,
be relieved of all further obligations under this Agreement, without thereby waiving any rights such Purchaser may have by reason of such failure or such nonfulfillment. 
  
 SECTION 4. CONDITIONS TO CLOSING. 
  
 The obligation of each Purchaser to purchase and pay for the Notes to be sold to such
Purchaser at the Closing is subject to the fulfillment to such Purchaser’s satisfaction, prior to or at the Closing, of the following conditions: 
  
 Section 4.1. Representations and Warranties of the Company. (a) The representations and warranties of the Company and the Issuer in this
Agreement shall be correct when made and at the time of Closing. 
  
 (b)
Representations and Warranties of the Subsidiary Guarantors. The representations and warranties of the Subsidiary Guarantors in the Subsidiary Guaranty shall be correct when made and at the time of Closing. 
  
 Section 4.2. Performance; No Default. The Company and the Issuer
shall have performed and complied with all agreements and conditions contained in this Agreement required to be performed or complied with by the Company and the Issuer prior to or at the Closing, and after giving effect to the issue and sale of the
Notes (and the application of the proceeds thereof as contemplated by Section 5.14), no Default or Event of Default shall have occurred and be continuing. Neither the Company nor any Subsidiary shall have entered into any transaction since the date
of the Memorandum that would have been prohibited by Section 10, other than transactions disclosed in the Memorandum. 
  
 Section 4.3. Compliance Certificates. 
  
 (a) Officer’s Certificate of the Company. The Company shall have delivered to such Purchaser an Officer’s Certificate, dated the date of the
Closing, certifying that the conditions specified in Sections 4.1(a), 4.2 and 4.9 have been fulfilled. 
  

 -3- 

 (b) Secretary’s Certificate of the Company. The Company shall have delivered to such Purchaser a
certificate certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of this Agreement. 
  
 (c) Officer’s Certificate of the Issuer. The Issuer shall have delivered to such Purchaser an Officer’s Certificate,
dated the date of Closing, certifying that the conditions specified in Sections 4.1(a), 4.2 and 4.9 have been fulfilled. 
  
 (d) Secretary’s Certificate of the Issuer. The Issuer shall have delivered to such Purchaser a certificate certifying as to the resolutions attached
thereto and other corporate proceedings relating to the authorization, execution and delivery of the Notes and this Agreement. 
  
 (e) Officer’s Certificate of the Subsidiary Guarantors. Each Subsidiary Guarantor shall have delivered to such Purchaser an Officer’s Certificate,
dated the date of the Closing, certifying that the conditions specified in Section 4.1(b) and 4.2 have been fulfilled. 
  
 (f) Secretary’s Certificate of the Subsidiary Guarantors. Each Subsidiary Guarantor shall have delivered to such Purchaser a certificate certifying as
to the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Subsidiary Guaranty. 
  
 Section 4.4. Opinions of Counsel. Such Purchaser shall have received opinions addressed to such Purchaser, dated the date of the Closing from
(a) Skadden, Arps, Slate, Meagher & Flom LLP, special counsel to the Company and the Issuer, substantially in the form attached as Exhibit 4.4(a) (and the Company and the Issuer hereby instruct their counsel to deliver such opinion to such
Purchaser), (b) Piper Rudnick, LLP, special counsel to the Issuer, substantially in the form attached as Exhibit 4.4(b) (and the Issuer hereby instructs its counsel to deliver such opinion to such Purchaser), and (c) Chapman and Cutler LLP, the
Purchasers’ special counsel in connection with such transactions, substantially in the form set forth in Exhibit 4.4(c). 
  
 Section 4.5. Purchase Permitted by Applicable Law, Etc. On the date of Closing, each purchase of Notes shall (a) be permitted by the laws and
regulations of each jurisdiction to which each Purchaser is subject, without recourse to provisions (such as Section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies without restriction as to the
character of the particular investment, (b) not violate any applicable law or regulation (including, without limitation, Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject any Purchaser to any tax,
penalty or liability under or pursuant to any applicable law or regulation, which law or regulation was not in effect on the date hereof. If requested by any Purchaser, such Purchaser shall have received an Officer’s Certificate certifying as
to such matters of fact as such Purchaser may reasonably specify to enable such Purchaser to determine whether such purchase is so permitted. 
  
 Section 4.6. Related Transactions. The Company and the Issuer, as the case may be, shall have (a) consummated the sale of the entire principal amount
of the Notes scheduled to be 
  

 -4- 

 sold on the date of Closing pursuant to this Agreement, (b) consummated the IPO via the sale by Cendant Finance Holding Corporation
of substantially all of the Common Stock owned by Cendant Corporation and its affiliates (collectively, excluding the Company and its Subsidiaries, “Cendant”), and (c) executed and delivered the Bank Credit Agreement and such Bank
Credit Agreement shall provide for a revolving credit commitment of not less than $100,000,000. 
  
 Section 4.7. Payment of Special Counsel Fees. Without limiting the provisions of Section 15.1, the Company and the Issuer shall pay on the Closing,
the reasonable fees, reasonable charges and reasonable disbursements of the Purchasers’ special counsel referred to in Section 4.4 to the extent reflected in a reasonably detailed statement of such counsel rendered to the Company or the Issuer
at least one Business Day prior to the Closing. 
  
 Section 4.8.
Private Placement Number. Special counsel to the Purchasers shall have obtained Private Placement Number issued by Standard & Poor’s CUSIP Service Bureau (in cooperation with the Securities Valuation Office of the National
Association of Insurance Commissioners) for the Notes. 
  
 Section 4.9.
Changes in Corporate Structure. Neither the Company nor the Issuer shall have changed its jurisdiction of incorporation or been a party to any merger or consolidation and shall have succeeded to all or any substantial part of the
liabilities of any other entity, at any time following the date of the most recent financial statements referred to in Schedule 5.5. 
  
 Section 4.10. Subsidiary Guaranty. The Subsidiary Guaranty shall have been duly authorized, executed and delivered by each Subsidiary Guarantor, shall
constitute the legal, valid and binding contract and agreement of each Subsidiary Guarantor except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the
enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and such Purchaser shall have received a true, correct and complete
copy thereof. 
  
 Section 4.11. Proceedings and Documents.
All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be reasonably satisfactory to such Purchaser and such Purchaser’s
special counsel, and such Purchaser and such Purchaser’s special counsel shall have received all such counterpart originals or certified or other copies of such documents as such Purchaser or such Purchaser’s special counsel may reasonably
request. 
  
 The obligation of the Issuer to issue and sell the Notes to the
Purchasers at Closing is subject to the fulfillment to the Issuer’s satisfaction, prior to or at the Closing, of the condition referred to in clause (b) of Section 4.6 hereof. 
  

 -5- 

 SECTION 5. REPRESENTATIONS AND
WARRANTIES OF THE COMPANY AND THE ISSUER. 
  
 The Company and the Issuer jointly and severally represent and warrant to each Purchaser that: 
  
 Section 5.1. Organization; Power and Authority. Each of the Company and the Issuer is a corporation duly organized, validly
existing and in good standing under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, other than those
jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each of the Company and the Issuer has the corporate power and
authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this Agreement and the Notes, as the case may be, and to perform the
provisions hereof and thereof. 
  
 Section 5.2. Authorization,
Etc. This Agreement and the Notes have been duly authorized by all necessary corporate action on the part of the Company and the Issuer, as the case may be, and this Agreement constitutes, and upon execution and delivery thereof each Note
will constitute, a legal, valid and binding obligation of the Company enforceable against the Company and of the Issuer enforceable against the Issuer, as the case may be, in accordance with its terms, except as such enforceability may be limited by
(i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a
proceeding in equity or at law). 
  
 Section 5.3. Disclosure.
The Company, has authorized its agent, J.P. Morgan Securities Inc., to deliver to each Purchaser a copy of (i) a Private Placement Memorandum, dated April 23, 2004, together with the Appendices thereto, including Amendment No. 2 to the
Company’s Registration Statement on Form S-1 (the “Placement Memorandum”) and (ii) a supplement to such Placement Memorandum, dated June         , 2004 including the Appendix
thereto consisting of Amendment No. 5 to the Company’s Registration Statement on Form S-1 (the Placement Memorandum as so supplemented is herein referred to as the “Memorandum”) which relate to the transactions contemplated
hereby. The Memorandum fairly describes, in all material respects, the general nature of the business and principal properties of the Company and its Subsidiaries. This Agreement and the Memorandum, taken as a whole, do not contain any untrue
statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made. Except as disclosed in the Memorandum, since April 30, 2004, there has
been no change in the financial condition, operations, business or properties of the Company or any of its Subsidiaries except changes that individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect. There is
no fact known to the Company or the Issuer that could reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the Memorandum. The Company was incorporated on February 27, 2004, it issued and sold for $1.00
100 shares of Common Stock to Cendant in connection with its organization and on March 1, 2004, all of the issued and outstanding shares of capital stock of the Issuer were transferred by Cendant to the Company. On May 12, 2004, the Company
distributed a stock 
  

 -6- 

 dividend of 37,499,900shares of Common Stock to Cendant Finance Holding Corporation, which increased the aggregate number of shares
of Common Stock of the Company outstanding to 37,500,000 shares. As of the date hereof, the Company does not have any Material amount of assets or liabilities other than such capital stock of the Issuer and, except as disclosed in the Memorandum,
immediately prior to the date of the Closing, the Company will not have any Material amount of assets or liabilities other than such capital stock. 
  
 Section 5.4. Organization and Ownership of Shares of Subsidiaries. (a) Schedule 5.4 contains (except as noted therein) complete and correct
lists of the Company’s Material Subsidiaries, showing, as to each such Subsidiary, the correct name thereof, the jurisdiction of its organization, and the percentage of shares of each class of its capital stock outstanding owned by the Company
and each other Subsidiary. The Company’s directors and executive officers are listed in the Memorandum. 
  
 (b) All of the outstanding shares of capital stock of each Subsidiary shown in Schedule 5.4 as being owned by the Company and its Subsidiaries have been validly
issued, are fully paid and nonassessable and are owned by the Company or another Subsidiary free and clear of any Lien (except Permitted Liens). 
  
 (c) Each Subsidiary identified in Schedule 5.4 is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of
organization, and is duly qualified as a foreign corporation or other legal entity and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified
or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each such Subsidiary has the corporate or other power and authority to own or hold under lease the properties it purports to
own or hold under lease and to transact the business it transacts and proposes to transact. 
  
 (d) No Material Subsidiary is a party to, or otherwise subject to, any legal restriction or any agreement (other than this Agreement, and customary limitations imposed by corporate law statutes) restricting the ability of such
Subsidiary to pay dividends out of profits or make any other similar distributions of profits to the Company or any of its Subsidiaries that owns outstanding shares of capital stock or similar equity interests of such Subsidiary. 
  
 Section 5.5. Financial Statements. The consolidated financial statements
of the Company and its Subsidiaries and for the three years ended April 30, 2004 are included in the Memorandum. All of said financial statements (including in each case the related notes thereto) fairly present in all material respects the
consolidated financial position of the Company and its Subsidiaries as of the respective dates specified in such financial statements and the consolidated results of their operations and cash flows for the respective periods so specified and have
been prepared in accordance with GAAP consistently applied throughout the periods involved except as set forth in the notes thereto. 
  
 Section 5.6. Compliance with Laws, Other Instruments, Etc. The execution, delivery and performance by the Company and the Issuer, as the case
may be, of this Agreement and the Notes will not (a) contravene, result in any breach of, or constitute a default under, or result in the 
  

 -7- 

 creation of any Lien in respect of any property of the Company or any Subsidiary under, any indenture, mortgage, deed of trust,
loan, purchase or credit agreement, lease, corporate charter or by-laws, or any other material agreement or instrument to which the Company or any Subsidiary is bound or by which the Company or any Subsidiary or any of their respective properties
may be bound or affected, (b) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to the Company or any Subsidiary,
or (c) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary. The offer and sale of the Notes in the manner provided in this Agreement will not have a Material
Adverse Effect on the licenses and permits required by the Company and its Subsidiaries to conduct business in the jurisdictions in which they currently conduct their business. 
  
 Section 5.7. Governmental Authorizations, Etc. Assuming the accuracy of the representations and warranties of the
Purchasers set forth herein and of J.P. Morgan Securities Inc. regarding the manner in which the Notes were offered and the status of the offerees of the Notes under the Securities Act, no consent, approval or authorization of, or registration,
filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Company and the Issuer, as the case may be, of this Agreement or the Notes. 
  
 Section 5.8. Litigation; Observance of Statutes and Orders. (a) There are
no actions, suits or proceedings pending or, to the knowledge of the Company or the Issuer, threatened against or affecting the Company or any Subsidiary or any property of the Company or any Subsidiary in any court or before any arbitrator of any
kind or before or by any Governmental Authority that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 
  
 (b) Neither the Company nor any Subsidiary is in default under any term of any agreement or instrument to which it is a party or by which it is bound, or any order,
judgment, decree or ruling of any court, arbitrator or Governmental Authority or is in violation of any applicable law, ordinance, rule or regulation (including without limitation Environmental Laws) of any Governmental Authority, which default or
violation, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 
  
 Section 5.9. Taxes. The Company and its Subsidiaries have filed all tax returns that are required to have been filed in any jurisdiction,
except for tax returns the failure of which to file would not have a Material Adverse Effect, and have paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon them or their properties, assets,
income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (a) the amount of which is not individually or in the aggregate Material or (b)
the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the Company or a Subsidiary, as the case may be, has established reserves in accordance with GAAP. Neither
the Company nor the Issuer knows of any basis for any other tax or assessment that could reasonably be expected to have a Material Adverse Effect. The charges, 
  

 -8- 

 accruals and reserves on the books of the Company and its Subsidiaries in respect of federal, state or other taxes for all fiscal
periods are adequate. The federal income tax liabilities of the Company and its Subsidiaries, or of the affiliated group of which the Company and its Subsidiaries are members, as the case may be, have been determined by the Internal Revenue Service
and paid for all taxable years ended on or prior to December 31, 1997. 
  
 Section 5.10. Title to Property; Leases. The Company and its Subsidiaries have good and sufficient title to their respective properties that individually or in the aggregate are Material, including all such properties
reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Company or any Subsidiary after said date (except as sold or otherwise disposed of in the ordinary course of business), in each
case free and clear of Liens, other than Permitted Liens. All leases that individually or in the aggregate are Material are valid and subsisting and are in full force and effect in all material respects. 
  
 Section 5.11. Licenses, Permits, Etc. (a) The Company and its Subsidiaries own
or possess all licenses, permits, franchises, authorizations, patents, copyrights, service marks, trademarks and trade names, or rights thereto, that individually or in the aggregate are Material, without known conflict with the rights of others
except for those conflicts, that, individually or in the aggregate, could not have a Material Adverse Effect; 
  
 (b) To the best knowledge of the Company or the Issuer, no financial product or service of the Company or any of its Subsidiaries infringes in any Material respect
any license, permit, franchise, authorization, patent, copyright, service mark, trademark, trade name or other right owned by any other Person; and 
  
 (c) To the best knowledge of the Company or the Issuer, there is no Material violation by any Person of any right of the Company or any of its Subsidiaries with
respect to any patent, copyright, service mark, trademark, trade name or other right owned or used by the Company or any of its Subsidiaries. 
  
 Section 5.12. Compliance with ERISA. (a) The Company and each ERISA Affiliate have operated and administered each Plan in compliance with all
applicable laws except for such instances of noncompliance as have not resulted in and could not reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title
I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans (as defined in Section 3 of ERISA) that has not been satisfied in full, and no event, transaction or condition has occurred or exists that could
reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate, in either case
pursuant to Title I or IV of ERISA or to such penalty or excise tax provisions or to Section 401(a)(29) or 412 of the Code, other than such liabilities or Liens as would not be individually or in the aggregate Material. 
  
 (b) The present value of the aggregate benefit liabilities under each of the Plans
(other than Multiemployer Plans) sponsored or maintained by the Company or its Subsidiaries, determined as of the end of such Plan’s most recently ended plan year on the basis of the 
  

 -9- 

 actuarial assumptions specified for funding purposes in such Plan’s most recent actuarial valuation report, did not exceed the
aggregate current value of the assets of such Plan allocable to such benefit liabilities. The term “benefit liabilities” has the meaning specified in Section 4001 of ERISA and the terms “current value” and
“present value” have the meaning specified in Section 3 of ERISA. 
  
 (c) The Company and its ERISA Affiliates have not incurred any withdrawal liabilities (and are not subject to contingent withdrawal liabilities) under Section 4201 or 4204 of ERISA in respect of Multiemployer Plans that
individually or in the aggregate are Material. 
  
 (d) The expected
post-retirement benefit obligation (determined as of the last day of the Company’s most recently ended fiscal year in accordance with Financial Accounting Standards Board Statement No. 106, without regard to liabilities attributable to
continuation coverage mandated by Section 4980B of the Code) of the Company and its Subsidiaries is not Material. 
  
 (e) The execution and delivery of this Agreement and the issuance and sale of the Notes hereunder will not involve any transaction that is subject to the
prohibitions of Section 406 of ERISA or in connection with which a tax could be imposed pursuant to Section 4975(c)(1)(A)-(D) of the Code. The representation by the Company and the Issuer, as the case may be, in the first sentence of this Section
5.12(e) is made in reliance upon and subject to the accuracy of each Purchaser’s representation in Section 6.2 as to the sources of the funds to be used to pay the purchase price of the Notes to be purchased by such Purchaser. 
  
 Section 5.13. Private Offering by the Company. Neither the
Company, the Issuer nor anyone acting on the their behalf has offered the Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any Person
other than 75 “Qualified Institutional Buyers,” as defined in Rule 144A under the Securities Act and no more than two or three other institutional accredited investors, as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act, each of which has been offered the Notes in connection with a private sale for investment and not through any form of general solicitation or general advertising. Neither the Company, the Issuer nor anyone acting on their behalf has
taken, or will take, any action that would subject the issuance or sale of the Notes to the registration requirements of Section 5 of the Securities Act. The representations and warranties contained in this Section 5.13 are based in part on
representations and warranties received by the Company and the Issuer from J.P. Morgan Securities Inc. regarding the manner in which the Notes were offered and the status of the offerees of the Notes under the Securities Act and the representations
and warranties of the Purchasers contained herein. 
  
 Section 5.14. Use
of Proceeds; Margin Regulations. The Issuer will apply the proceeds of the sale of the Notes to pay a special dividend to the Company which will apply such proceeds to pay the cash portion of a special dividend from the Company to
Cendant. No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve
System (12 CFR 221), or for the purpose of buying or carrying or trading in any securities under such circumstances as to involve the Issuer in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation
of 
  

 -10- 

 Regulation T of said Board (12 CFR 220). Margin stock does not constitute more than 1% of the value of the consolidated assets of
the Company and its Subsidiaries and the Company and the Issuer do not have any present intention that margin stock will constitute more than 1% of the value of such assets. As used in this Section, the terms “margin stock” and
“purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U. 
  
 Section 5.15. Existing Debt; Future Liens. (a) Except as disclosed in the Memorandum, the Company and its Subsidiaries, on a consolidated basis, do not, and
as of the date of the Closing will not, have any outstanding Debt. Neither the Company nor any Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Debt of the Company or such
Subsidiary, and no event or condition exists with respect to any Debt of the Company or any Subsidiary, that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Debt to become due and
payable before its stated maturity or before its regularly scheduled dates of payment. 
  
 (b) Neither the Company nor any Subsidiary has agreed or consented to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject
to a Lien not permitted by Section 10.3. 
  
 Section 5.16. Foreign
Assets Control Regulations, Etc. Neither the sale of the Notes by the Issuer hereunder nor its use of the proceeds thereof will violate the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the
United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto or is in violation of any federal statute or Presidential Executive Order, including without limitation
Executive Order 13224 66 Fed. Reg. 49079 (September 25, 2001) (Blocking Property and Prohibiting Transactions with Persons who Commit, Threaten to Commit or Support Terrorism), or The USA Patriot Act. 
  
 Section 5.17. Status under Certain Statutes. Neither the Company nor any
Subsidiary is an “investment company” registered or required to be registered under the Investment Company Act of 1940, as amended, or is subject to regulation under the Public Utility Holding Company Act of 1935, as amended, the ICC
Termination Act of 1995, as amended, or the Federal Power Act, as amended. 
  
 Section 5.18. Environmental Matters. Neither the Company nor any Subsidiary has knowledge of any claim or has received any notice of any claim, and no proceeding has been instituted raising any claim against the Company or any of its
Subsidiaries or any of their respective real properties now or formerly owned, leased or operated by any of them, or other assets, alleging damage to the environment or any violation of any Environmental Laws, except, in each case, such as could not
reasonably be expected to result in a Material Adverse Effect. Except as otherwise disclosed to each Purchaser in writing: 
  
 (a) neither the Company nor any Subsidiary has knowledge of any facts which would give rise to any claim, public or private, for violation of
Environmental Laws or damage to the environment emanating from, occurring on or in any way related to real properties or to other assets now or formerly owned, leased or operated by any of them or 
  

 -11- 

 their use, except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect;

  
 (b) neither the Company nor any of its Subsidiaries has
stored any Hazardous Materials on real properties now or formerly owned, leased or operated by any of them or has disposed of any Hazardous Materials in each case in a manner contrary to any Environmental Laws and in any manner that could reasonably
be expected to result in a Material Adverse Effect; and 
  
 (c) all buildings on all real properties now owned, leased or operated by the Company or any of its Subsidiaries are in compliance with applicable Environmental Laws, except where failure to comply could not reasonably be expected to result
in a Material Adverse Effect. 
  
 Section 5.19. Solvency. After
giving effect to the sale of the Notes and the application of the proceeds thereof, (a) the fair value of Company’s consolidated assets, or the Issuer’s consolidated assets, as the case may be, will be in excess of the total amount of the
Company’s liabilities, or the Issuer’s liabilities, as the case may be, including, without limitation, contingent obligations, (b) each of the Company and the Issuer will be able to pay its debts as they mature, and (c) each of the Company
and the Issuer will not have unreasonably small capital to carry on its business. 
  
 SECTION 6. REPRESENTATIONS OF THE PURCHASER. 
  
 Section 6.1. Purchase for Investment. Each Purchaser represents
that it (i) is a “Qualified Institutional Buyer” as defined in Rule 144A under the Securities Act, and (ii) is purchasing the Notes for its own account or for one or more separate accounts maintained by it or for the account of one or more
pension or trust funds that also are Qualified Institutional Buyers and not with a view to the distribution thereof, provided that the disposition of such Purchaser’s or such pension or trust funds’ property shall at all times be
within such Purchaser’s or such pension or trust funds’ control. Each Purchaser understands that the Notes have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities
Act or if an exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by law, and that the Issuer is not required to register the Notes. Each Purchaser further represents
and warrants that it (a) will not sell, transfer or otherwise dispose of the Notes or any interest therein except in a transaction exempt from or not subject to the registration requirements of the Securities Act, (b) was given the opportunity to
access such information regarding the Company, the Issuer and the Subsidiary Guarantors as it has requested and (c) was provided with the Memorandum. Each Purchaser acknowledges that the Notes will bear a restrictive legend substantially in the form
set forth in Exhibit 1. 
  

 -12- 

 Section 6.2. Source of Funds. Each Purchaser represents that at least one of the following statements is an
accurate representation as to each source of funds (a “Source”) to be used by it to pay the purchase price of the Notes to be purchased by it hereunder: 
  
 (a) the Source is an “insurance company general account” within the meaning of Department of Labor
Prohibited Transaction Exemption (“PTE”) 95-60 (issued July 12, 1995) and there is no employee benefit plan, treating as a single plan all plans maintained by the same employer or employee organization, with respect to which the
amount of the general account reserves and liabilities for all contracts held by or on behalf of such plan, exceeds ten percent (10%) of the total reserves and liabilities of such general account (exclusive of separate account liabilities) plus
surplus, as set forth in the NAIC Annual Statement for such Purchaser most recently filed with such Purchaser’s state of domicile; or 
  
 (b) the Source is either (i) an insurance company pooled separate account, within the meaning of PTE 90-1 (issued January 29, 1990), or (ii) a bank
collective investment fund, within the meaning of the PTE 91-38 (issued July 12, 1991) and, except as such Purchaser prior to the execution and delivery of this Agreement has disclosed to the Issuer in writing pursuant to this paragraph (b), no
employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or 
  
 (c) the Source constitutes assets of an “investment fund”
(within the meaning of Part V of the QPAM Exemption) managed by a “qualified professional asset manager” or “QPAM” (within the meaning of Part V of the QPAM Exemption), no employee benefit plan’s assets that are included in
such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Section V(c)(1) of the QPAM Exemption) of such employer or by the same
employee organization and managed by such QPAM, exceed 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a person controlling or controlled by the QPAM
(applying the definition of “control” in Section V(e) of the QPAM Exemption) owns a 5% or more interest in the Issuer and (i) the identity of such QPAM and (ii) the names of all employee benefit plans whose assets are included in such
investment fund have been disclosed to the Issuer in writing pursuant to this paragraph (c) prior to the execution and delivery of this Agreement; or 
  
 (d) the Source is a governmental plan; or 
  
 (e) the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more employee benefit plans, each of
which prior to the execution and delivery of this Agreement has been identified to the Issuer in writing pursuant to this paragraph (e); or 
  
 (f) the Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of ERISA; or 
  
 (g) the Source is an insurance company separate account maintained
solely in connection with the fixed contractual obligations of the insurance company under which 
  

 -13- 

 the amounts payable, or credited, to any employee benefit plan (or its related trust) and to any participant or
beneficiary of such plan (including any annuitant) are not affected in any manner by the investment performance of the separate account. 
  
 If any Purchaser or any subsequent transferee of the Notes indicates that such Purchaser or such transferee is relying on any representation contained in paragraph (b), (c) or (e)
above, the Issuer shall deliver on the date of issuance of such Notes and on the date of any applicable transfer a certificate, which shall either state that (i) it is neither a party in interest nor a “disqualified person” (as defined in
Section 4975(e)(2) of the Code), with respect to any plan identified pursuant to paragraphs (b) or (e) above, or (ii) with respect to any plan, identified pursuant to paragraph (c) above, neither it nor any “affiliate” (as defined in
Section V(c) of the QPAM Exemption) has at such time, and during the immediately preceding one year, exercised the authority to appoint or terminate said QPAM as manager of any plan identified in writing pursuant to paragraph (c) above or to
negotiate the terms of said QPAM’s management agreement on behalf of any such identified plan. As used in this Section 6.2, the terms “employee benefit plan”, “governmental plan”, “party in interest” and
“separate account” shall have the respective meanings assigned to such terms in Section 3 of ERISA. 
  
 SECTION 7. INFORMATION AS TO COMPANY. 
  
 Section 7.1. Financial and Business Information. The Company shall deliver to
each holder of Notes that is an Institutional Investor: 
  
 (a) Quarterly Statements — within 45 days after the end of each quarterly fiscal period in each fiscal year of the Company (other than the last quarterly fiscal period of each such fiscal year), duplicate copies of, 

 
 (i) an unaudited consolidated balance sheet of the Company and its
Subsidiaries as at the end of such quarter, and 
  
 (ii)
unaudited consolidated statements of operations of the Company and its Subsidiaries as of the end of and for such fiscal quarter and statements of cash flows of the Company and its Subsidiaries for the then elapsed portion of the fiscal year ending
with such quarter, 
  
 setting forth in each case in comparative form the
figures for the corresponding periods in the previous fiscal year, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects,
the financial condition of the companies being reported on and their results of operations and cash flows, subject to changes resulting from normal, recurring year-end adjustments, provided that delivery within the time period specified above
of copies of the Company’s Quarterly Report on Form 10-Q prepared in compliance with the requirements therefor and filed with the Securities and Exchange Commission shall be deemed to satisfy the requirements of this Section 7.1(a); 

 

 -14- 

 (b) Annual Statements — within 90 days after the end of each fiscal year of the
Company, duplicate copies of, 
  
 (i) a consolidated
balance sheet of the Company and its Subsidiaries, as at the end of such year, and 
  
 (ii) consolidated statements of operations, stockholders’ equity and cash flows of the Company and its Subsidiaries as of the end of and for
such year, 
  
 setting forth in each case in comparative form the figures
for the previous fiscal year, prepared in accordance with GAAP, and accompanied by an opinion thereon of Deloitte & Touche LLP or other independent certified public accountants of recognized national standing, which opinion shall state that such
consolidated financial statements present fairly, in all material respects, the financial condition of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP consistently
applied, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the
circumstances, provided that the delivery within the time period specified above of the Company’s Annual Report on Form 10-K for such fiscal year (together with the Company’s annual report to shareholders, if any, prepared pursuant
to Rule 14a-3 under the Exchange Act) prepared in accordance with the requirements therefor and filed with the Securities and Exchange Commission shall be deemed to satisfy the requirements of this Section 7.1(b); 
  
 (c) SEC and Other Reports — promptly upon their becoming
available, one copy of (i) each financial statement, report, notice or proxy statement sent by the Company or any Subsidiary to public securities holders generally, (ii) each regular or periodic report, each registration statement (without
exhibits except as expressly requested by such holder), and each prospectus and all amendments thereto filed by the Company or any Subsidiary with the Securities and Exchange Commission containing information of a financial nature, and (iii) all
press releases and other statements made available generally by the Company or any Subsidiary to the public concerning developments that are reasonably likely to have a Material Adverse Effect on the Company; provided that if any holder has
indicated in writing to the Company that notices under this Section 7.1(c) may be delivered electronically, then such notices may be so delivered; provided, further, that copies of such electronic copies shall be delivered
concurrently with the financial statements referred to in Section 7.1(a) and (b); 
  
 (d) Notice of Default or Event of Default — promptly, and in any event within five Business Days after a Responsible Officer becomes
aware of the existence of any Default or Event of Default or that any Person has given any notice or taken any action with respect to a claimed default hereunder or that any Person has given any notice or taken any action with respect to a claimed
default of the type referred to in Section 12(f), a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto; 
  

 -15- 

 (e) ERISA Matters — promptly, and in any event within five days after a Responsible
Officer becomes aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that the Company, the Issuer or an ERISA Affiliate proposes to take with respect thereto: 
  
 (i) with respect to any Plan, any reportable event, as defined in
Section 4043(b) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date thereof; or 
  
 (ii) the taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings
under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by the Company, the Issuer or any ERISA Affiliate of a notice from a Multiemployer Plan that such action has been taken by
the PBGC with respect to such Multiemployer Plan; or 
  
 (iii) Any event, transaction or condition that could result in the incurrence of any liability by the Company, the Issuer or any ERISA Affiliate pursuant to Title I or IV of ERISA or the imposition of a penalty or excise tax under the
provisions of the Code relating to employee benefit plans, or the imposition of any Lien on any of the rights, properties or assets of the Company, the Issuer or any ERISA Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax
provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, could reasonably be expected to have a Material Adverse Effect; 
  
 (f) Notices from Governmental Authority — promptly, and in any event within 30 days of receipt thereof,
copies of any notice to the Company or any Subsidiary from any federal or state Governmental Authority relating to any order, ruling, statute or other law or regulation that could reasonably be expected to have a Material Adverse Effect; 

 
 (g) Auditor’s Letter — concurrently with any
delivery of financial statements under Section 7.1(b), or promptly thereafter, a letter addressed to the board of directors of the Company from the accounting firm that reported on such financial statements stating that, in connection with the
accounting firm’s audits, nothing came to the attention of such firm that caused it to believe that the Company failed to comply with Sections 10.1 or 10.2 insofar as such Sections relate to financial and accounting matters, and that such
accounting firm’s audit was not directed primarily toward obtaining knowledge of noncompliance with such Sections; 
  

 -16- 

 [(h) Projections — following the request of any Institutional Investor made prior to
the commencement of any fiscal year, the Company shall provide such holder with financial projections of the Company and its consolidated Subsidiaries for such fiscal year concurrently with the delivery of the financial statements referred to in
Section 7.1(b) (it being understood that the Company may obtain assurance from such holder that such information is subject to the confidentiality provisions set forth in Section 21 of this Agreement); and] 
  
 (i) Requested Information — with reasonable promptness,
such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or any of its Subsidiaries or relating to the ability of the Company to perform its obligations hereunder and
under the Notes as from time to time may be reasonably requested in writing by any such holder of Notes. 
  
 Section 7.2. Officer’s Certificate. Each set of financial statements delivered to a holder of Notes pursuant to Section 7.1(a) or Section 7.1(b) hereof
shall be accompanied by a certificate of a Senior Financial Officer setting forth: 
  
 (a) Covenant Compliance — the information (including reasonably detailed calculations) required in order to establish whether the
Company was in compliance with the requirements of Section 10.1, Section 10.2, Section 10.3(m), Section 10.5 and Section 10.9 hereof, inclusive, during the quarterly or annual period covered by the statements then being furnished (including with
respect to each such Section, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of the amount, ratio or percentage then in
existence); and 
  
 (b) Event of Default — a
statement that such officer has reviewed the relevant terms hereof and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company and its Subsidiaries from the beginning of the quarterly
or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default
or, if any such condition or event existed or exists (including, without limitation, any such event or condition resulting from the failure of the Company or any Subsidiary to comply with any Environmental Law), specifying the nature and period of
existence thereof and what action the Company shall have taken or proposes to take with respect thereto. 
  
 Section 7.3. Inspection. The Company shall permit the representatives of each holder of Notes that is an Institutional Investor: 
  
 (a) No Default — if no Default or Event of Default then
exists, at the expense of such holder and upon reasonable prior notice to the Company, to visit the principal executive office of the Company, to discuss the affairs, finances and accounts of the Company and its Subsidiaries with the Company’s
officers, and (with the consent of the Company, which consent will not be unreasonably withheld) its independent public accountants, and (with the consent of the Company, which consent will not be unreasonably withheld) to visit the other offices
and properties of the Company and each 
  

 -17- 

 Subsidiary, all at such reasonable times during normal business hours and as often as may be reasonably requested
in writing; and 
  
 (b) Default — if a Default
or Event of Default then exists, at the expense of the Company, to visit and inspect any of the offices or properties of the Company or any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make
copies and extracts therefrom, and to discuss their respective affairs, finances and accounts with their respective officers and independent public accountants (and by this provision the Company authorizes said accountants to discuss the affairs,
finances and accounts of the Company and its Subsidiaries), all at such times and as often as may be requested. 
  
 SECTION 8. PAYMENT OF THE NOTES. 
  
 Section 8.1. Required Payments. The entire principal amount of the Notes shall
become due and payable on June [25], 2009. 
  
 Section 8.2. Optional
Prepayment of the Notes with LIBOR Breakage Amount. (a) Subject to the last sentence of this paragraph, the Issuer may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the Notes, in an
amount not less than $1,000,000 in the case of a partial prepayment, at 100% of the principal amount so prepaid, plus the LIBOR Breakage Amount (unless the date specified for prepayment is a regularly scheduled Interest Payment Date). The Issuer
will give each holder of Notes written notice of each optional prepayment under this Section 8.2 not less than 20 Business Days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such date, the
aggregate principal amount of the Notes to be prepaid on such date, the principal amount of each such Note held by such holder to be prepaid (determined in accordance with Section 8.2(b)), and the interest to be paid on the prepayment date with
respect to such principal amount being prepaid and shall state that the LIBOR Breakage Amount will be payable if such prepayment is not on a regularly scheduled Interest Payment Date and that such holder is required to calculate such amount and
submit such calculation in reasonable detail to the Issuer not less than two Business Days prior to the date of prepayment. Notwithstanding the foregoing, the Issuer may not prepay the Notes on or prior to June [25], 2005. 
  
 (b) In the case of each partial prepayment of the Notes, the principal amount of the
Notes to be prepaid shall be allocated among all of the Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof. 
  
 (c) The term “LIBOR Breakage Amount” shall mean any loss reasonably incurred by any holder of a Note in the
reemployment of the funds released by any prepayment of any Note. Each holder shall determine the LIBOR Breakage Amount with respect to the principal amount of its Notes then being paid or prepaid by written notice to the Issuer setting forth such
determination in reasonable detail not less than two Business Days prior to the date of prepayment in the case of any prepayment pursuant to Section 8.2(a) and not less than one Business Day in the case of any payment required by Section 13.1. Each
such determination shall be presumptively correct absent manifest error. 
  

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 Section 8.3. Maturity; Surrender, Etc. In the case of each prepayment of Notes pursuant to this Section 8,
the principal amount of each Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment, together with interest on such principal amount accrued to such date and the applicable LIBOR Breakage Amount, if any.
From and after such date, unless the Issuer shall fail to pay such principal amount when so due and payable, together with the interest and LIBOR Breakage Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any
Note paid or prepaid in full shall be surrendered to the Issuer and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note. 
  
 Section 8.4. Purchase of Notes. The Company and the Issuer will not and will not permit any Subsidiary of the Company to
purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes except upon the payment or prepayment of the Notes in accordance with the terms of this Agreement and the Notes. The Issuer will promptly cancel all
Notes acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of Notes pursuant to any provision of this Agreement and no Notes may be issued in substitution or exchange for any such Notes. 
  
 Section 8.5. Change in Control. 
  
 (a) Notice of Change in Control or Control Event. The Company will, within ten
days after any Responsible Officer has actual knowledge of the occurrence of any Change in Control or Control Event, give written notice of such Change in Control or Control Event to each holder of Notes unless notice in respect of such Change in
Control (or the Change in Control contemplated by such Control Event) shall have been given pursuant to subparagraph (b) of this Section 8.5. If a Change in Control has occurred, such notice shall contain and constitute an offer to prepay Notes as
described in subparagraph (c) of this Section 8.5 and shall be accompanied by the certificate described in subparagraph (g) of this Section 8.5. 
  
 (b) Condition to Company Action. The Company will not take any action that consummates or finalizes a Change in Control unless (i) at least 20 days prior to
such action it shall have given to each holder of Notes written notice containing and constituting an offer to prepay Notes as described in subparagraph (c) of this Section 8.5, accompanied by the certificate described in subparagraph (g) of this
Section 8.5, and (ii) contemporaneously with such action, it prepays all Notes required to be prepaid in accordance with this Section 8.5. 
  
 (c) Offer to Prepay Notes. The offer to prepay Notes contemplated by subparagraphs (a) and (b) of this Section 8.5 shall be an offer to prepay, in accordance
with and subject to this Section 8.5, all, but not less than all, the Notes held by each holder (in this case only, “holder” in respect of any Note registered in the name of a nominee for a disclosed beneficial owner shall mean such
beneficial owner) on a date specified in such offer (the “Proposed Prepayment Date”). If such Proposed Prepayment Date is in connection with an offer contemplated by subparagraph (a) of this Section 8.5, such date shall be not less
than 20 days and not more than 60 days after the date of such offer (if the Proposed Prepayment Date shall not be specified in such offer, the Proposed Prepayment Date shall be the 30th day after the date of such offer). 
  

 -19- 

 (d) Acceptance/Rejection. A holder of Notes may accept the offer to prepay made pursuant to this Section 8.5
by causing a notice of such acceptance to be delivered to the Company at least 5 days prior to the Proposed Prepayment Date. A failure by a holder of Notes to respond to an offer to prepay made pursuant to this Section 8.5 shall be deemed to
constitute a rejection of such offer by such holder. 
  
 (e)
Prepayment. Prepayment of the Notes to be prepaid pursuant to this Section 8.5 shall be at 100% of the principal amount of such Notes together with interest on such Notes accrued to the date of prepayment. On the Business Day preceding the
date of prepayment, the Company shall deliver to each holder of Notes being prepaid a statement showing the amount due in connection with such prepayment and setting forth the details of the computation of such amount. The prepayment shall be made
on the Proposed Prepayment Date except as provided in subparagraph (f) of this Section 8.5. 
  
 (f) Deferral Pending Change in Control. The obligation of the Company to prepay Notes pursuant to the offers required by subparagraph (c) and accepted in accordance with subparagraph (d) of this Section 8.5 is subject to
the occurrence of the Change in Control in respect of which such offers and acceptances shall have been made. In the event that such Change in Control does not occur on the Proposed Prepayment Date in respect thereof, the prepayment shall be
deferred until and shall be made on the date on which such Change in Control occurs. The Company shall keep each holder of Notes reasonably and timely informed of (i) any such deferral of the date of prepayment, (ii) the date on which such Change in
Control and the prepayment are expected to occur, and (iii) any determination by the Company that efforts to effect such Change in Control have ceased or been abandoned (in which case the offers and acceptances made pursuant to this Section 8.5 in
respect of such Change in Control shall be deemed rescinded). 
  
 (g)
Officer’s Certificate. Each offer to prepay the Notes pursuant to this Section 8.5 shall be accompanied by a certificate, executed by a Senior Financial Officer of the Company and dated the date of such offer, specifying: (i) the
Proposed Prepayment Date; (ii) that such offer is made pursuant to this Section 8.5; (iii) the principal amount of each Note offered to be prepaid; (iv) the interest that would be due on each Note offered to be prepaid, accrued to the Proposed
Prepayment Date; (v) that the conditions of this Section 8.5 have been fulfilled; (vi) in reasonable detail, the nature and date of the Change in Control; and (vii) that the failure to respond to such offer of prepayment shall constitute a rejection
of such offer. 
  
 (h) “Change in Control” Defined.
“Change in Control” means each and every issue, sale or other disposition of shares of voting stock of the Company which results in any person (as such term is used in Section 13(d) and Section 14(d)(2) of the Exchange Act) or
related persons constituting a group (as such term is used in Rule 13d-5 under the Exchange Act), becoming the “beneficial owners” (as such term is used in Rule 13d-3 under the Exchange Act as in effect on the date of the Closing),
directly or indirectly, of more than 50% of the total voting power of all classes then outstanding of the Company’s voting stock, or if such person acquires the right to elect a majority of the board of directors of the Company. 
  

 -20- 

 (i) “Control Event” Defined. “Control Event” means: 
  
 (a) the execution by the Company or any of its Subsidiaries or
Affiliates of any agreement or binding letter of intent with respect to any proposed transaction or event or series of transactions or events which, individually or in the aggregate, could reasonably be expected to result in a Change in Control;

  
 (b) the execution of any written agreement which, when
fully performed by the parties thereto, would result in a Change in Control; or 
  
 (c) the making of any written offer by any person (as such term is used in Section 13(d) and Section 14(d)(2) of the Exchange Act as in effect on
the date of the Closing) or related persons constituting a group (as such term is used in Rule 13d-5 under the Exchange Act as in effect on the date of the Closing) to the holders of the common stock of the Company, which offer, if accepted by the
requisite number of holders, would result in a Change in Control unless such offer is rejected or expires pursuant to its terms prior to the date on which notice of such Change in Control is required to be delivered pursuant to Section 8.5(a).

  
 SECTION 9. AFFIRMATIVE
COVENANTS. 
  
 The Company covenants that so long as any of
the Notes are outstanding: 
  
 Section 9.1. Compliance with Law. The
Company will, and will cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject, including, without limitation, Environmental Laws, and will obtain and maintain in
effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure
that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations could not, individually or in the
aggregate, have a Material Adverse Effect. 
  
 Section 9.2.
Insurance. The Company will, and will cause each of its Subsidiaries to, maintain, with financially sound and reputable insurers, insurance with respect to their respective properties and businesses against such casualties and contingencies, of
such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same
or a similar business and similarly situated. 
  
 Section 9.3.
Maintenance of Properties. The Company will, and will cause each of its Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective properties Material to the conduct of their respective businesses in good repair,
working order and condition (other than ordinary wear and tear), so that the business carried on in connection therewith may be properly conducted at all times, provided that this Section shall not prevent the Company or any Subsidiary from
discontinuing the operation and the maintenance of any of its properties if 
  

 -21- 

 such discontinuance is desirable in the conduct of its business and the Company has concluded that such discontinuance could not,
individually or in the aggregate, have a Material Adverse Effect. 
  
 Section 9.4. Payment of Taxes and Claims. The Company will, and will cause each of its Subsidiaries to, file all tax returns required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on
such returns and all other taxes, assessments, governmental charges, or levies imposed on them or any of their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become
delinquent and all claims for which sums have become due and payable that have or might become a Lien on properties or assets of the Company or any Subsidiary, provided that neither the Company nor any Subsidiary need pay any such tax or
assessment or claims if (i) the amount, applicability or validity thereof is contested by the Company or such Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or such Subsidiary has established reserves
therefor in accordance with GAAP on the books of the Company or such Subsidiary or (ii) the non-filing or nonpayment, as the case may be, of all such taxes and assessments in the aggregate could not have a Material Adverse Effect. 
  
 Section 9.5. Corporate Existence, Etc. Subject to Sections 10.5 and 10.6, the
Company will at all times preserve and keep in full force and effect its corporate existence, and will at all times preserve and keep in full force and effect the corporate existence of each of its Subsidiaries (unless merged into the Company or a
Wholly-Owned Subsidiary) and all rights and franchises Material to the conduct of the business of the Company and its Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force
and effect such corporate existence, right or franchise could not, individually or in the aggregate, have a Material Adverse Effect. 
  
 Section 9.6. Additional Subsidiary Guarantors. The Company will cause each Domestic Subsidiary which is required by the terms of the Bank Credit
Agreement to become a party to, or otherwise guarantee, Debt outstanding under such Bank Credit Agreement, to enter into the Subsidiary Guaranty and deliver to each of the holders of the Notes (concurrently with the incurrence of any such obligation
pursuant to such Bank Credit Agreement) the following items: 
  
 (a) a joinder agreement in respect of the Subsidiary Guaranty; 
  
 (b) a certificate signed by the President, a Vice President or another authorized Responsible Officer of the Company making representations and warranties to the effect of those contained in Sections 5.4, 5.6 and 5.7, with
respect to such Subsidiary and the Subsidiary Guaranty, as applicable; and 
  
 (c) an opinion of counsel (who may be in-house counsel for the Company) addressed to each of the holders of the Notes reasonably satisfactory to the Required Holders, to the effect that the Subsidiary Guaranty has been duly
authorized, executed and delivered by such Subsidiary Guarantor and that the Subsidiary Guaranty constitutes the legal, valid and binding contract and agreement of such Subsidiary Guarantor enforceable in accordance with its terms, except as an
enforcement of such terms may be limited by 
  

 -22- 

 bankruptcy, insolvency, fraudulent conveyance and similar laws affecting the enforcement of creditors’ rights
generally and by general equitable principles. 
  
 SECTION 10. NEGATIVE COVENANTS. 
  
 The Company covenants that so long as any of the Notes are outstanding: 
  
 Section 10.1. Consolidated Leverage Ratio. The Company will not permit: 
  
 (a) the Consolidated Leverage Ratio to exceed (i) 3.25 to 1.00 on or prior to April 30, 2005, (ii) 3.00 to 1.00 on or after May 1, 2005 to and
including April 30, 2006, and (iii) 2.50 to 1.00 on or after May 1, 2006; and 
  
 (b) Priority Debt to exceed 15% of Consolidated Net Tangible Assets as of any Calculation Date. 
  
 Section 10.2. Consolidated Fixed Charge Coverage Ratio. The Company will not permit the Consolidated Fixed Charge Coverage Ratio to be less than (i) 3.00 to
1.00 on or prior to April 30, 2006, and (iii) 3.50 to 1.00 on or after May 1, 2006. 
  
 Section 10.3. Limitation on Liens. The Company will not, and will not permit any of its Subsidiaries to, directly or indirectly create, incur, assume or permit to exist (upon the happening of a contingency or
otherwise) any Lien on or with respect to any property or asset (including, without limitation, any document or instrument in respect of goods or accounts receivable) of the Company or any such Subsidiary, whether now owned or held or hereafter
acquired, or any income or profits therefrom, or assign or otherwise convey any right to receive income or profits, except: 
  
 (a) Liens for taxes, assessments or other governmental charges that are not yet due and payable or the payment of which is not at the time required
by Section 9.4; 
  
 (b) judgment liens in respect of
judgments that do not constitute an Event of Default under clause (i) of Section 12; 
  
 (c) Liens incidental to the conduct of business or the ownership of properties and assets (including landlords’, carriers’,
warehousemen’s, mechanics’, materialmen’s and other similar Liens for sums not yet due and payable) and Liens to secure the performance of bids, tenders, leases, or trade contracts, or to secure statutory obligations (including
obligations under workers compensation, unemployment insurance and other social security legislation), surety or appeal bonds or other Liens incurred in the ordinary course of business and not in connection with the borrowing of money; 

 
 (d) leases or subleases granted to others, easements,
rights-of-way, minor survey exceptions, restrictions and other similar charges or encumbrances, in each case incidental to the ownership of property or assets or the ordinary conduct of the business 
  

 -23- 

 of the Company or any of its Subsidiaries, provided that such Liens do not, in the aggregate, materially
detract from the value of such property; 
  
 (e) Liens
securing Debt of a Subsidiary owed to the Company or to a Wholly-Owned Subsidiary; 
  
 (f) Liens existing as of the date of Closing and reflected in Schedule 10.3; 
  
 (g) Liens incurred after the date of Closing given to secure the payment of the purchase price incurred in connection
with the acquisition, construction or improvement of property (other than accounts receivable or inventory) useful and intended to be used in carrying on the business of the Company or a Subsidiary, including Liens existing on such property at the
time of acquisition or construction thereof, or Liens incurred within 180 days of such acquisition or the completion of such construction or improvement, provided that (i) the Lien shall attach solely to the property acquired, purchased,
constructed or improved; (ii) at the time of acquisition, construction or improvement of such property, the aggregate amount remaining unpaid on all Debt secured by Liens on such property, whether or not assumed by the Company or a Subsidiary, shall
not exceed the greater of (y) the cost of such acquisition, construction or improvement or (z) the Fair Market Value of such property (as determined in good faith by one or more officers of the Company to whom authority to enter into the transaction
has been delegated by the board of directors of the Company); and (iii) at the time of such incurrence and after giving effect thereto, no Event of Default would exist; 
  
 (h) any Lien existing on property of a Person immediately prior to its being consolidated with or merged into the
Company or a Subsidiary or its becoming a Subsidiary, or any Lien existing on any property acquired by the Company or any Subsidiary at the time such property is so acquired (whether or not the Debt secured thereby shall have been assumed),
provided that (i) no such Lien shall have been created or assumed in contemplation of such consolidation or merger or such Person’s becoming a Subsidiary or such acquisition of property, (ii) each such Lien shall extend solely to the
item or items of property so acquired and, if required by the terms of the instrument originally creating such Lien, other property which is an improvement to or is acquired for specific use in connection with such acquired property, and (iii) at
the time of such incurrence and after giving effect thereto, no Event of Default would exist; 
  
 (i) any extensions, renewals or replacements of any Lien permitted by the preceding subparagraphs (f), (g), and (h) of this Section 10.3,
provided that (i) no additional property shall be encumbered by such Liens, (ii) the unpaid principal amount of the Debt or other obligations secured thereby shall not be increased on or after the date of any extension, renewal or replacement
(except to the extent of any premiums and other refinancing costs incurred in connection with such transaction); 
  
 (j) customary rights of set off upon deposit accounts and securities accounts of cash in favor of banks or other depository institutions and other
securities intermediaries; 
  

 -24- 

 (k) Liens in the nature of licenses that arise in the ordinary course of business of the Company or
any of its Subsidiaries; 
  
 (l) any call or similar right
in the nature of a right of first offer or a first refusal right of a third party that is an investor in a joint venture or a Subsidiary of the Company in the case of equity interests issued by such joint venture or qualifying shares or similar
arrangements designed to satisfy requirements of applicable laws in the case of equity interests issued by a joint venture or Subsidiary so long as such call or similar right does not secure Debt of the Company or any Subsidiary; and 
  
 (m) in addition to the Liens permitted by the preceding subparagraphs
(a) through (1), inclusive, of this Section 10.3, Liens securing obligations of the Company or any Subsidiary, provided that the aggregate principal amount of obligations secured by Liens pursuant to this Section 10.3(m) shall not exceed the
limitations set forth in Section 10.1(b). 
  
 Section 10.4
Restricted Payments. The Company will not, and will not permit any of its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, except (a) the Company may declare and pay dividends with
respect to its Capital Stock payable solely in additional shares of its Common Stock or warrants, options or other rights entitling the holder thereof to purchase or acquire shares of its Common Stock, (b) Subsidiaries may declare and pay dividends
ratably with respect to their Capital Stock, (c) the Company may make Restricted Payments pursuant to and in accordance with stock option plans or other benefit plans for management or employees of the Company, the Issuer and their respective
Subsidiaries, (d) any Subsidiary may make Restricted Payments to the Company and the Issuer or any of their Subsidiaries, (e) the Company may make Restricted Payments not otherwise permitted hereunder in an aggregate amount since the date of the
Closing not to exceed 30% of Consolidated Net Income for the period commencing on May 1, 2003 and ending on April 30 of the fiscal year preceding the year in which such Restricted Payment is made, on a cumulative basis, (f) the Company may use
proceeds from the underwriters’ over-allotment option in the IPO for repurchases of Common Stock and (g) the Company may declare and pay the Special Dividend. The Company will not, and will not permit any of its Subsidiaries to, at any time,
declare or make, or incur any liability to declare or make any Restricted Payment, unless immediately after giving effect to such action, no Default or Event of Default would exist; provided that the payment of any dividend by the Company
within 60 days after the date of declaration of such dividend shall not be prohibited if at the date of declaration of such dividend there was no Default or Event of Default and nothing in this sentence shall be deemed to prohibit the making of any
Restricted Payments by any Subsidiary to the Company or to any other Subsidiary. 
  
 Section 10.5. Sales of Assets. The Company will not, and will not permit any Subsidiary to, sell, lease or otherwise dispose of any assets of the Company and its Subsidiaries (including any such disposition of the equity interest of
the Company or any Subsidiary in another Subsidiary which arises through a merger or consolidation between such Subsidiary and any other Person) in excess of the Threshold Amount (as defined below); provided, however, that the Company or any
Subsidiary may sell, lease or otherwise dispose of assets in excess of the Threshold Amount if such assets are sold in an arms length transaction and, at such time and 
  

 -25- 

 after giving effect thereto, no Event of Default shall have occurred and be continuing and an amount equal to the Net Proceeds
received from such sale, lease or other disposition shall be used within 365 days of such sale, lease or disposition, in any combination: 
  
 (1) to acquire productive assets (other than cash or cash equivalents) used or useful in carrying on the business of the Company and its
Subsidiaries (including equity interests in entities which will become Subsidiaries); or 
  
 (2) to prepay or retire Senior Debt of the Company and/or its Subsidiaries. 
  
 As used in this Section 10.5, a sale, lease or other disposition of assets shall be deemed to be in excess of the “Threshold
Amount” of the assets of the Company and its Subsidiaries if the book value of such assets, when added to the book value of all other assets sold, leased or otherwise disposed of by the Company and its Subsidiaries during the period of 12
consecutive months ending on the date of such sale, lease or other disposition, exceeds 10% of the book value of Consolidated Total Assets, determined as of the end of the fiscal quarter immediately preceding such sale, lease or other
disposition; provided that there shall be excluded from any determination of Threshold Amount (i) any sale, lease or disposition of assets in the ordinary course of business of the Company and its Subsidiaries, (ii) any sale, lease or
disposition of assets from the Company to any Subsidiary or from any Subsidiary to the Company or a Subsidiary and (iii) the Special Dividend. 
  
 Section 10.6. Merger, Consolidation. Neither the Company nor the Issuer will consolidate with or merge with any other corporation or convey, transfer or
lease substantially all of its assets in a single transaction or series of transactions to any Person; provided that the foregoing restriction does not apply to the consolidation or merger of the Company or the Issuer, as the case may be,
with, or the conveyance, transfer or lease of substantially all of the assets of the Company or the Issuer, as the case may be, in a single transaction or series of transactions to, any Person so long as: 
  
 (a) the successor formed by such consolidation or the survivor of such
merger or the Person that acquires by conveyance, transfer or lease substantially all of the assets of the Company or the Issuer as an entirety, as the case may be (the “Successor Corporation”), shall be a solvent corporation
organized and existing under the laws of the United States of America, any State thereof or the District of Columbia; 
  
 (b) if the Company or the Issuer, as the case may be, is not the Successor Corporation, such corporation shall have executed and delivered to each
holder of Notes its assumption of the due and punctual performance and observance of each covenant and condition of this Agreement and, in the case of any successor to the Issuer, the Notes (pursuant to such agreements and instruments as shall be
reasonably satisfactory to the Required Holders), and the Company shall have caused to be delivered to each holder of Notes an opinion of nationally recognized outside counsel, to the effect that all agreements or instruments effecting such
assumption are enforceable in accordance with their terms and comply with the terms hereof; 
  

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 (c) the Company or
any such Successor Corporation would be in compliance with Sections 10.1 and 10.2 on a pro forma basis for the Four Quarter Period ending immediately prior to such merger or consolidation and after giving effect thereto; and 
  
 (d) immediately after giving effect to such transaction no Default or
Event of Default would exist. 
  
 Section 10.7. Nature of Business.
The Company will not, and will not permit any Subsidiary to, engage in any business, if, as a result, the general nature of the business of the Company and its Subsidiaries, when taken as a whole, would be substantially changed from the
general nature of the business of the Company and its Subsidiaries, when taken as a whole, on the date of this Agreement. 
  
 Section 10.8. Transactions with Affiliates. The Company will not and will not permit any Subsidiary to enter into directly or indirectly any Material
transaction or Material group of related transactions (including without limitation the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate (other than the Company or another Subsidiary),
except upon fair and reasonable terms not Materially less favorable to the Company or such Subsidiary than would be obtainable in a comparable arm’s-length transaction with a Person not an Affiliate. Notwithstanding the foregoing, the
provisions set forth in the immediately preceding sentence will not apply to: (i) the Special Dividend, (ii) transactions with Affiliates solely in their capacity as holders of Debt or Capital Stock of the Company or any of its Subsidiaries, where
such Affiliates are treated no more favorably than holders of such Debt or such Capital Stock generally; and (iii) any agreement disclosed in the Memorandum as in effect as of the date of the Closing or any amendment thereto or any transaction
contemplated thereby (including pursuant to any amendment thereto) in any replacement agreement thereto so long as any such amendment or replacement agreement is not more disadvantageous to the holders of the Notes in any material respect than the
original agreement as in effect on the date of the Closing. 
  
 Section
10.9. Subsidiaries. The Company will not at any time permit more than (i) 5% of Consolidated Total Assets, (ii) 5% of Consolidated Net Worth, or (iii) 5% of consolidated revenues of the Company and its Subsidiaries to be held by, or attributable
to, Subsidiaries which are not the Issuer and the Subsidiary Guarantors. The Company will not at any time, directly or indirectly, own less than 95% of the voting stock or other voting equity interest in the Issuer and each Material Subsidiary. The
Company will not permit any Subsidiary, other than a Domestic Subsidiary, to become a co-obligor or to guarantee Debt under the Bank Credit Agreement. 
  
 SECTION 11. GUARANTY BY THE COMPANY. 
  
 Section 11.1. Guaranty by the Company. The Company does hereby irrevocably,
absolutely and unconditionally guarantee unto the holders: (1) the full and prompt payment of the principal of, LIBOR Breakage Amount, if any, and interest on the Notes from time to time outstanding, as and when such payments shall become due and
payable, whether by lapse of time, upon redemption or prepayment, by extension or by acceleration or declaration or otherwise (including (to the extent legally enforceable) interest due on overdue payments of principal, 
  

 -27- 

 LIBOR Breakage Amount, if any, and interest) in Federal or other immediately available funds of the United States of America which
at the time of payment or demand therefor shall be legal tender for the payment of public and private debts, (2) the full and prompt performance and observance by the Issuer of each and all of the obligations, covenants and agreements required to be
performed or owed by the Issuer under the terms of the Notes and this Agreement and (3) the full and prompt payment, upon demand by any holder, of all costs and expenses, legal or otherwise (including reasonable attorneys’ fees), if any, as
shall have been expended or incurred in the protection or enforcement of any rights, privileges or liabilities in favor of the holders under or in respect of the Notes, this Agreement or in any action in connection therewith and in each and every
case irrespective of the validity, regularity, or enforcement of any of the Notes or this Agreement or any of the terms thereof or any other like circumstance or circumstances. 
  
 Section 11.2. Guaranty of Payment and Performance. This is a guarantee of payment and performance and the Company hereby
waives, to the fullest extent permitted by law, any right to require that any action on or in respect of any Note or this Agreement be brought against the Issuer or any other Person or that resort be had to any direct or indirect security for the
Notes or for this Agreement or any other remedy. Any holder may, at its option, proceed hereunder against the Company in the first instance to collect monies when due, the payment of which is guaranteed hereby, without first proceeding against the
Issuer or any other Person and without first resorting to any direct or indirect security for the Notes or for this Agreement or any other remedy. The liability of the Company hereunder shall in no way be affected or impaired by any acceptance by
any holder of any direct or indirect security for, or other guaranties of, any Debt, liability or obligation of the Issuer or any other Person to any holder or by any failure, delay, neglect or omission by any holder to realize upon or protect any
such guarantees, Debt, liability or obligation or any notes or other instruments evidencing the same or any direct or indirect security therefor or by any approval, consent, waiver, or other action taken, or omitted to be taken by any such holder.

  
 Section 11.3. General Provisions Relating to Guaranty by the Company
of Issuer’s Obligations under this Agreement and the Notes. (a) The Company hereby consents and agrees that any holder or holders from time to time may, without in any manner affecting the liability of the Company under this Agreement, and
upon such terms and conditions as any such holder or holders may deem advisable: 
  
 (1) extend in whole or in part (by renewal or otherwise), modify, increase, change, compromise, release or extend the duration of the time for the
performance or payment of any Debt, liability or obligation of the Issuer or of any other Person secondarily or otherwise liable for any Debt, liability or obligations of the Issuer on the Notes, or waive any Default with respect thereto, or waive,
modify, amend or change any provision of any other agreement or this Agreement (to the extent permitted by Section 18.1); or 
  
 (2) sell, release, surrender, modify, impair, exchange or substitute any and all property, of any nature and from whomsoever received, held by, or
for the benefit of, any such holder as direct or indirect security for the payment or performance of any Debt, 
  

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 liability or obligation of the Issuer or of any other Person secondarily or otherwise liable for any Debt,
liability or obligation of the Issuer on the Notes; or 
  
 (3) settle, adjust or compromise any claim of the Issuer against any other Person secondarily or otherwise liable for any Debt, liability or obligation of the Issuer on the Notes. 
  
 The Company hereby ratifies and confirms any such extension, renewal, change, sale,
release, waiver, surrender, exchange, modification, amendment, impairment, substitution, settlement, adjustment or compromise and that the same shall be binding upon it, and hereby waives, to the fullest extent permitted by law, any and all
defenses, counterclaims or offsets which it might or could have by reason thereof, it being understood that the Company shall at all times be bound by this Agreement and remain liable hereunder. 
  
 (b) The Company hereby waives, to the fullest extent permitted by law: 
  
 (1) notice of acceptance of this guarantee by the holders or of the
creation, renewal or accrual of any liability of the Issuer, present or future, or of the reliance of such holders upon this guarantee (it being understood that all Debt, liabilities and obligations described in Section 11.1 hereof shall
conclusively be presumed to have been created, contracted or incurred in reliance upon the execution of this Agreement by the Company); and 
  
 (2) demand of payment by any holder from the Issuer or any other Person indebted in any manner on or for any of the Debt, liabilities or obligations
hereby guaranteed; and 
  
 (3) presentment for the payment
by any holder or any other Person of the Notes or any other instrument, protest thereof and notice of its dishonor to any party thereto and to the Company. 
  
 The obligations of the Company under this guarantee and the rights of any holder to enforce such obligations by any proceedings, whether by action at law, suit in
equity or otherwise, shall not be subject to any reduction, limitation, impairment or termination, whether by reason of any claim of any character whatsoever or otherwise and shall not be subject to any defense, set-off, counterclaim (other than any
compulsory counterclaim), recoupment or termination whatsoever. 
  
 (c) The
obligations of the Company hereunder shall be binding upon the Company and its successors and assigns, and shall remain in full force and effect irrespective of: 
  
 (1) the genuineness, validity, regularity or enforceability of the Notes, this Agreement or any other agreement or any
of the terms of any thereof, the continuance of any obligation on the part of the Issuer, or any other Person on or in respect of the Notes or under the Agreement or any other agreement or the power or authority or the lack of power or authority of
the Issuer to issue the Notes or the Issuer to execute and deliver this 
  

 -29- 

 Agreement or any other agreement or to perform any of its obligations hereunder or the existence or continuance of
the Issuer or any other Person as a legal entity; or 
  
 (2) any default, failure or delay, willful or otherwise, in the performance by the Issuer or any other Person of any obligations of any kind or character whatsoever under the Notes, this Agreement or any other agreement; or 
  
 (3) any creditors’ rights, bankruptcy, receivership or other
insolvency proceeding of the Issuer or any other Person or in respect of the property of the Issuer or any other Person or any merger, consolidation, reorganization, dissolution, liquidation, the sale of all or substantially all of the assets of or
winding up of the Issuer or any other Person; or 
  
 (4)
impossibility or illegality of performance on the part of the Issuer or any other Person of its obligations under the Notes, this Agreement or any other agreements; or 
  
 (5) in respect of the Issuer, or any other Person, any change of circumstances, whether or not foreseen or
foreseeable, whether or not imputable to the Issuer, or any other Person, or other impossibility of performance through fire, explosion, accident, labor disturbance, floods, droughts, embargoes, wars (whether or not declared), civil commotion, acts
of God or the public enemy, delays or failure of suppliers or carriers, inability to obtain materials, action of any federal or state regulatory body or agency, change of law or any other causes affecting performance, or any other force
majeure, whether or not beyond the control of the Issuer or any other Person and whether or not of the kind hereinbefore specified; or 
  
 (6) any attachment, claim, demand, charge, Lien, order, process, encumbrance or any other happening or event or reason, similar or dissimilar to the
foregoing, or any withholding or diminution at the source, by reason of any taxes, assessments, expenses, Debt, obligations or liabilities of any character, foreseen or unforeseen, and whether or not valid, incurred by or against the Issuer or any
other Person or any claims, demands, charges or Liens of any nature, foreseen or unforeseen, incurred by any Person, or against any sums payable in respect of the Notes or under this Agreement, so that such sums would be rendered inadequate or would
be unavailable to make the payments herein provided; or 
  
 (7) any order, judgment, decree, ruling or regulation (whether or not valid) of any court of any nation or of any political subdivision thereof or any body, agency, department, official or administrative or regulatory agency of any thereof
or any other action, happening, event or reason whatsoever which shall delay, interfere with, hinder or prevent, or in any way adversely affect, the performance by the Issuer or any other Person of its respective obligations under or in respect of
the Notes, this Agreement or any other agreement; or 
  

 -30- 

 (8) the failure of the Company to receive any benefit from or as a result of its execution,
delivery and performance of this Agreement; or 
  
 (9) any
failure or lack of diligence in collection or protection, failure in presentment or demand for payment, protest, notice of protest, notice of default and of nonpayment, any failure to give notice to the Company of failure of the Issuer, or any other
Person to keep and perform any obligation, covenant or agreement under the terms of the Notes, this Agreement or any other agreement or failure to resort for payment to the Issuer or to any other Person or to any other guaranty or to any property,
security, Liens or other rights or remedies; or 
  
 (10)
the acceptance of any additional security or other guaranty, the advance of additional money to the Issuer or any other Person, the renewal or extension of the Notes or amendments, modifications, consents or waivers with respect to the Notes, this
Agreement or any other agreement, or the sale, release, substitution or exchange of any security for the Notes; or 
  
 (11) any change in the ownership of any shares of the Issuer, the Company or any other Person; or 
  
 (12) any defense whatsoever that: (i) the Issuer or any other Person
might have to the payment of the Notes (principal, LIBOR Breakage Amount, if any, or interest), other than payment thereof in Federal or other immediately available funds, or (ii) the Issuer or any other Person might have to the performance or
observance of any of the provisions of the Notes, this Agreement or any other agreement, whether through the satisfaction or purported satisfaction by the Issuer, the Company or any other Person of its debts due to any cause such as bankruptcy,
insolvency, receivership, merger, consolidation, reorganization, dissolution, liquidation, winding-up or otherwise; or 
  
 (13) any act or failure to act with regard to the Notes, this Agreement or any other agreement or anything which might vary the risk of the Company
or any other Person; or 
  
 (14) any other circumstance
which might otherwise constitute a defense available to, or a discharge of, the Company or any other Person in respect of the obligations of the Company or other Person under this Agreement or any other agreement other than the final and
indefeasible payment in full of cash of the Notes; 
  
 provided that the specific
enumeration of the above-mentioned acts, failures or omissions shall not be deemed to exclude any other acts, failures or omissions, though not specifically mentioned above, it being the purpose and intent of this Agreement that the obligations of
the Company shall be absolute, irrevocable and unconditional and shall not be discharged, impaired or varied except by the payment of the principal of, premium, if any, and interest on the Notes in accordance with their respective terms whenever the
same shall become due and payable as in the Notes provided and all other sums due and payable under this Agreement, at the place specified in and all in the manner and with the effect provided in the Notes and this Agreement, as each 
  

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 may be amended or modified from time to time. Without limiting the foregoing, it is understood that repeated and successive demands
may be made and recoveries may be had hereunder as and when, from time to time, the Issuer shall default under or in respect of the terms of the Notes or this Agreement and that notwithstanding recovery hereunder for or in respect of any given
default or defaults by the Issuer under the Notes or this Agreement, the Guaranty hereunder shall remain in full force and effect and shall apply to each and every subsequent default. 
  
 (d) All rights of any holder hereunder may be transferred or assigned at any time and shall be considered to be transferred or
assigned at any time or from time to time upon the transfer of any Note whether with or without the consent of or notice to the Company under this Agreement or to the Issuer (except as provided in Section 19 of this Agreement). 
  
 (e) To the extent of any payments made under this Agreement, the Company shall be
subrogated to the rights of the holder upon whose Notes such payment was made, but the Company covenants and agrees that such right of subrogation shall be subordinate in right of payment to the prior indefeasible final payment in cash in full of
all amounts due and owing by the Issuer and the Company with respect to the Notes and this Agreement, and the Company shall not take any action to enforce such right of subrogation, and the Company shall not accept any payment in respect of such
right of subrogation, until all amounts due and owing by the Issuer under or in respect of the Notes and this Agreement and all amounts due and owing by the Company hereunder have indefeasibly been finally paid in cash in full. If any amount shall
be paid to the Company in violation of the preceding sentence at any time prior to the later of the indefeasible payment in cash in full of the Notes and all other amounts payable under the Notes and this Agreement, such amount shall be held in
trust for the benefit of the holders and shall forthwith be paid to the holders to be credited and applied to the amounts due or to become due with respect to the Notes and all other amounts payable under this Agreement, whether matured or
unmatured. The Company acknowledges that it has received direct and indirect benefits from the financing arrangements contemplated by this Agreement and that the waiver set forth in this paragraph (e) is knowingly made as a result of the receipt of
such benefits. 
  
 (f) The Company agrees that to the extent the Issuer, or
any other Person makes any payment on any Note, which payment or any part thereof is subsequently invalidated, voided, declared to be fraudulent or preferential, set aside, recovered, rescinded or is required to be retained by or repaid to a
trustee, receiver, or any other Person under any bankruptcy code, common law, or equitable cause, then and to the extent of such payment, the obligation or the part thereof intended to be satisfied shall be revived and continued in full force and
effect with respect to the Company’s obligations hereunder, as if said payment had not been made. The liability of the Company hereunder shall not be reduced or discharged, in whole or in part, by any payment to any holder from any source that
is thereafter paid, returned or refunded in whole or in part by reason of the assertion of a claim of any kind relating thereto, including, but not limited to, any claim for breach of contract, breach of warranty, preference, illegality, invalidity,
or fraud asserted by any account debtor or by any other Person. 
  
 (g) No
holder shall be under any obligation: (1) to marshall any assets in favor of the Company or in payment of any or all of the liabilities of the Issuer under or in respect of the Notes or the obligations of the Company hereunder or (2) to pursue any
other remedy that the 
  

 -32- 

 Company may or may not be able to pursue and that may lighten the Company’s burden, any right to which the Company hereby
expressly waives. 
  
 (h) The obligations of the Company under this
Agreement rank pari passu in right of payment with all other Debt of the Company which is not secured or which is not expressly subordinated in right of payment to any other Debt of the Company. 
  
 SECTION 12. EVENTS OF
DEFAULT. 
  
 An “Event of Default” shall
exist if any of the following conditions or events shall occur and be continuing: 
  
 (a) the Issuer defaults in the payment of any principal or LIBOR Breakage Amount, if any, on any Note when the same becomes due and payable, whether
at maturity or at a date fixed for prepayment or by declaration or otherwise; or 
  
 (b) the Issuer defaults in the payment of any interest on any Note for more than five Business Days after the same becomes due and payable; or

  
 (c) (i) the Company defaults in the performance of or
compliance with any term contained in Sections 10.1, 10.2, 10.3(m) or 10.4, or (ii) the Company defaults in the performance of or compliance with any other term contained in Section 10 and such default is not remedied within 20 days after the
earlier of (x) a Responsible Officer obtaining actual knowledge of such default and (y) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a “notice of default” and
to refer specifically to this paragraph (c) of Section 12); or 
  
 (d) the Company or the Issuer defaults in the performance of or compliance with any term contained herein (other than those referred to in paragraphs (a), (b) and (c) of this Section 12) and such default is not remedied within 30 days after
the earlier of (i) a Responsible Officer obtaining actual knowledge of such default and (ii) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a “notice of default”
and to refer specifically to this paragraph (d) of Section 12); or 
  
 (e) any representation or warranty made in writing by or on behalf of the Company or the Issuer or by any officer of the Company or the Issuer in this Agreement or in any certificate of the Company or any Subsidiary delivered
on the Closing Date or in any certificate of the Company delivered pursuant to Section 7 proves to have been false or incorrect in any material respect on the date as of which made; or 
  
 (f) (i) the Company, the Issuer or any Material Subsidiary is in default (as principal or as guarantor or other
surety) in the payment of any principal of or premium or make-whole amount or interest on any Debt other than the Notes that is outstanding in an aggregate principal amount of at least $3,000,000 beyond any period of grace provided with respect
thereto, or (ii) the Company, the Issuer or any Material Subsidiary is in 
  

 -33- 

 default in the performance of or compliance with any term of any instrument, mortgage, indenture or other agreement
relating to any Debt other than the Notes in an aggregate principal amount of at least $3,000,000 or any other condition exists, and as a consequence of such default or condition such Debt has become, or has been declared (or one or more Persons are
entitled to declare such Debt to be), due and payable before its stated maturity or before its regularly scheduled dates of payment, or (iii) as a consequence of the occurrence or continuation of any event or condition (other than the passage of
time or the right of the holder of Debt to convert such Debt into equity interests or any purchase or repayment of Debt on account of the voluntary sale or transfer of the property or asset which secures such Debt and which is permitted by the terms
of the agreement pursuant to which such Debt is outstanding), (x) the Company, the Issuer or any Material Subsidiary has become obligated to purchase or repay Debt other than the Notes before its regular maturity or before its regularly scheduled
dates of payment in an aggregate outstanding principal amount of at least $3,000,000, or (y) one or more Persons have the right to require the Company or any Subsidiary so to purchase or repay such Debt; or 
  
 (g) the Company, the Issuer or any Material Subsidiary (i) is
generally not paying, or admits in writing its inability to pay, its debts as they become due, (ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition
in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a
custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any
of the foregoing; or 
  
 (h) a court or governmental
authority of competent jurisdiction enters an order appointing, without consent by the Company, the Issuer or any of its Material Subsidiaries, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to
any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any
jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company, the Issuer or any of its Material Subsidiaries, or any such petition shall be filed against the Company, the Issuer or any of its Material Subsidiaries and such
petition shall not be dismissed within 90 days; or 
  
 (i)
a final judgment or judgments at any one time outstanding for the payment of money aggregating in excess $5,000,000 (not paid or fully covered by insurance) are 
  

 -34- 

 rendered against one or more of the Company and its Subsidiaries and which judgments are not, within 90 days after
entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within 90 days after the expiration of such stay; or 
  
 (j) if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the Code for any plan year or part thereof or a waiver of such
standards or extension of any amortization period is sought or granted under Section 412 of the Code, (ii) a notice of intent to terminate any Plan shall have been or is reasonably expected to be filed with the PBGC or the PBGC shall have instituted
proceedings under Section 4042 of ERISA to terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the Company, the Issuer or any ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) the
aggregate “amount of unfunded benefit liabilities” (within the meaning of Section 4001(a)(18) of ERISA) under all Plans, determined in accordance with Title IV of ERISA, shall exceed $10,000,000, (iv) the Company, the Issuer or any ERISA
Affiliate shall have incurred or is reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, (v) the Company, the Issuer or any ERISA
Affiliate withdraws from any Multiemployer Plan, or (vi) the Company, the Issuer or any Subsidiary establishes or amends any employee welfare benefit plan that provides post-employment welfare benefits in a manner that could increase the liability
of the Company or any Subsidiary thereunder; and any such event or events described in clauses (i) through (vi) above, either individually or together with any other such event or events, could reasonably be expected to have a Material Adverse
Effect; or 
  
 (k) for any reason any provision of the
Subsidiary Guaranty of any Material Subsidiary or Section 11 of this Agreement ceases to be in full force and effect, including, without limitation, a determination by any Governmental Authority that any such Subsidiary Guaranty or such Guaranty by
the Company in this Agreement is invalid, void or unenforceable, or any Material Subsidiary shall contest or deny in writing the enforceability of any its obligations under the Subsidiary Guaranty, or the Company shall contest or deny in writing the
enforceability of its guaranty obligations set forth in Section 11 of this Agreement. 
  
 As
used in Section 12(j), the terms “employee benefit plan” and “employee welfare benefit plan” shall have the respective meanings assigned to such terms in Section 3 of ERISA. 
  
 SECTION13. REMEDIES ON
DEFAULT, ETC. 
  
 Section 13.1.
Acceleration. (a) If an Event of Default with respect to the Company described in paragraph (g) or (h) of Section 12 (other than an Event of Default described in clause (i) of paragraph (g) or described in clause (vi) of paragraph (g) by virtue
of the fact that such clause encompasses clause (i) of paragraph (g)) has occurred, all the Notes then outstanding shall automatically become immediately due and payable. 
  
 (b) If any other Event of Default has occurred and is continuing, any holder or holders of more than 50% in aggregate principal amount
of the Notes at the time outstanding may at any 
  

 -35- 

 time at its or their option, by notice or notices to the Company and the Issuer, declare all the Notes then outstanding to be
immediately due and payable. 
  
 (c) If any Event of Default described in
paragraph (a) or (b) of Section 12 has occurred and is continuing, any holder of Notes at the time outstanding affected by such Event of Default may at any time, at its option, by notice or notices to the Company and the Issuer, declare all the
Notes held by it to be immediately due and payable. 
  
 Upon any Note becoming due and
payable under this Section 13.1, whether automatically or by declaration, such Note will forthwith mature and the entire unpaid principal amount of such Note, plus (i) all accrued and unpaid interest thereon, and (ii) the LIBOR Breakage Amount if
any, in respect of such principal amount (to the full extent permitted by applicable law) shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived. The
Company and the Issuer acknowledge, and the parties hereto agree, that each holder of a Note has the right to maintain its investment in the Notes free from repayment by the Issuer (except as herein specifically provided for), and that the provision
for payment of a LIBOR Breakage Amount, if any, by the Issuer in the event that the Notes are prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such
circumstances. 
  
 Section 13.2. Other Remedies. If any Default or
Event of Default has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 13.1, the holder of any Note at the time outstanding may proceed to protect and
enforce the rights of such holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note, or for an injunction against a violation of any of the
terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise. 
  
 Section 13.3. Rescission. At any time after any Notes have been declared due and payable pursuant to clause (b) (other than pursuant to an Event of Default
described in paragraphs (g) or (h) of Section 12) or (c) of Section 13.1, the holders of more than 50% in aggregate principal amount of the Notes then outstanding, by written notice to the Company and the Issuer, may rescind and annul any such
declaration and its consequences if (a) the Issuer has paid all overdue interest on the Notes, all principal of, or LIBOR Breakage Amount, if any, on any Notes that are due and payable and are unpaid other than by reason of such declaration, and all
interest on such overdue principal, or LIBOR Breakage Amount, if any, and (to the extent permitted by applicable law) any overdue interest in respect of the Notes, at the Default Rate, (b) all Events of Default and Defaults, other than non-payment
of amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to Section 18, and (c) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to any Notes. No
rescission and annulment under this Section 13.3 will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon. 
  
 Section 13.4. No Waivers or Election of Remedies, Expenses, Etc. No course of dealing and no delay on the part of any holder of any Note in exercising any
right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies. No 
  

 -36- 

 right, power or remedy conferred by this Agreement or by any Note upon any holder thereof shall be exclusive of any other right,
power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise. Without limiting the obligations of the Company under Section 16, the Company will pay to the holder of each Note on demand such
further amount as shall be sufficient to cover all costs and expenses of such holder incurred in any enforcement or collection under this Section 13, including, without limitation, the reasonable attorneys’ fees, expenses and disbursements for
the holders as set forth in Section 16. 
  

	SECTION	14. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES. 

  
 Section 14.1. Registration of Notes. The Issuer shall keep at its principal
executive office a register for the registration and registration of transfers of Notes. The name and address of each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be
registered in such register. Prior to due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Issuer shall not
be affected by any notice or knowledge to the contrary. The Issuer shall give to any holder of a Note that is an Institutional Investor promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders
of Notes. 
  
 Section 14.2. Transfer and Exchange of Notes. Upon
surrender of any Note at the principal executive office of the Issuer for registration of transfer or exchange (and in the case of a surrender for registration of transfer, duly endorsed or accompanied by a written instrument of transfer duly
executed by the registered holder of such Note or its attorney duly authorized in writing and accompanied by the address for notices of each transferee of such Note or part thereof), the Issuer shall execute and deliver not more than 10 Business
Days following surrender of such Note, at the Issuer’s expense (except as provided below), one or more new Notes (as requested by the holder thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of
the surrendered Note. Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of the Note originally issued hereunder. Each such new Note shall be dated and bear interest from the date to
which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon. The Company may require payment of a sum sufficient to cover any stamp tax or governmental charge
imposed in respect of any such transfer of Notes. Notes shall not be transferred in denominations of less than $100,000, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one Note
may be in a denomination of less than $100,000. Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representation set forth in Section 6.1 (other than clause (b) of the
second to the last sentence of Section 6.1) and Section 6.2, provided that such holder may (in reliance upon information provided by the Issuer, which shall not be unreasonably withheld) make a representation to the effect that the purchase
by such holder of any Note will not constitute a non-exempt prohibited transaction under Section 406(a) of ERISA. Prior to the registration of the transfer of any Note, the Issuer may require a proposed transferee to confirm that the representations
and warranties set forth in Section 6.1 (other than clause (b) of the second to the last sentence of Section 6.1) are applicable to such transferree, and in the case of any transfer in which the registered owner will 
  

 -37- 

 be registered in the name of a nominee, the name of the beneficial owner of the Note and confirmation that such nominee is not
permitted to transfer such Note without the consent of the beneficial owner. 
  
 The Notes have not been registered under the Securities Act or under the securities laws of any state and may not be transferred or resold unless registered under the Securities Act and all applicable state securities laws or unless an
exemption from the requirement for such registration is available. 
  
 Section 14.3. Replacement of Notes. Upon receipt by the Issuer of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of an
Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and 
  
 (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note is, or is
a nominee for, an original Purchaser or another holder of a Note with a minimum net worth of at least $50,000,000, such Person’s own unsecured agreement of indemnity shall be deemed to be satisfactory), or 
  
 (b) in the case of mutilation, upon surrender and cancellation
thereof, 
  
 the Issuer at its own expense shall execute and deliver not more than five
Business Days following satisfaction of such conditions, in lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost,
stolen, destroyed or mutilated Note if no interest shall have been paid thereon. 
  
 SECTION 15. PAYMENTS ON NOTES. 
  
 Section 15.1. Place of Payment. Subject to Section 15.2, payments of principal,
LIBOR Breakage Amount, if any, and interest becoming due and payable on the Notes shall be made in New York, New York at the principal office of JPMorgan Chase Bank in such jurisdiction. The Issuer may at any time, by notice to each holder of a
Note, change the place of payment of the Notes so long as such place of payment shall be either the principal office of the Issuer in such jurisdiction or the principal office of a bank or trust company in such jurisdiction. 
  
 Section 15.2. Home Office Payment. So long as any Purchaser or such
Purchaser’s nominee shall be the holder of any Note, and notwithstanding anything contained in Section 15.1 or in such Note to the contrary, the Issuer will pay all sums becoming due on such Note for principal, LIBOR Breakage Amount, if any,
and interest by the method and at the address specified for such purpose for such Purchaser on Schedule A hereto, or by such other method or at such other address as such Purchaser shall have from time to time specified to the Issuer in writing for
such purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Issuer made concurrently with or reasonably promptly after payment or prepayment in full of any Note,
such Purchaser shall 
  

 -38- 

 surrender such Note for cancellation, reasonably promptly after any such request, to the Issuer at its principal executive office
or at the place of payment most recently designated by the Issuer pursuant to Section 15.1. Prior to any sale or other disposition of any Note held by any Purchaser or such Person’s nominee, such Person will, at its election, either endorse
thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note to the Issuer in exchange for a new Note or Notes pursuant to Section 14.2. The Issuer will afford the benefits of this
Section 15.2 to any Institutional Investor that is the direct or indirect transferee of any Note. 
  
 SECTION 16. EXPENSES, ETC. 
  
 Section 16.1. Transaction Expenses. Whether or not the transactions contemplated hereby are consummated, the Company and the
Issuer jointly and severally agree to pay all reasonable and documented costs and expenses (including reasonable attorneys’ fees of one special counsel for the Purchasers, which such counsel shall be Chapman & Cutler LLP, in connection with
the initial sale of the Notes and, if reasonably required, local or other counsel) incurred by the Purchasers and the holders of Notes in connection with such transactions and in connection with any amendments, waivers or consents under or in
respect of this Agreement or the Notes (whether or not such amendment, waiver or consent becomes effective), including, without limitation: (a) the reasonable and documented costs and expenses incurred in enforcing or defending (or determining
whether or how to enforce or defend) any rights under this Agreement or the Notes or in responding to any subpoena or other legal process or informal investigative demand by any Governmental Authority issued in connection with this Agreement or the
Notes, or by reason of being a holder of any Note, and (b) to the extent reasonably documented, the reasonable costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or
any Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby and by the Notes. The Company and the Issuer jointly and severally agree that they will pay, and will save each Purchaser and each other
holder of a Note harmless from, all claims in respect of any reasonable fees, costs or expenses if any, of brokers and finders (other than those retained by the Purchasers). 
  
 Section 16.2. Survival. The obligations of the Company and the Issuer under this Section 16 will survive the payment or
transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement or the Notes, and the termination of this Agreement. 
  
 SECTION 17. SURVIVAL OF REPRESENTATIONS AND WARRANTIES;
ENTIRE AGREEMENT. 
  
 All representations and
warranties contained herein shall survive the execution and delivery of this Agreement and the related Notes, the purchase or transfer by any Purchaser of any such Note or portion thereof or interest therein and the payment of any Note may be relied
upon by any subsequent holder of any such Note, regardless of any investigation made at any time by or on behalf of any Purchaser or any other holder of any such Note. All statements contained in any certificate or other instrument delivered by or
on behalf of the Company or the Issuer pursuant to this Agreement shall be deemed representations and warranties of the 
  

 -39- 

 Company or the Issuer under this Agreement. Subject to the preceding sentence, this Agreement and the Notes embody the entire
agreement and understanding between the Purchasers, the Company and the Issuer and supersede all prior agreements and understandings relating to the subject matter hereof. 
  
 SECTION 18. AMENDMENT AND WAIVER. 
  
 Section 18.1. Requirements. This Agreement and the Notes may be amended, and
the observance of any term hereof or of the Notes may be waived (either retroactively or prospectively), with (and only with) the written consent of the Company, the Issuer and the Required Holders, except that (a) no amendment or waiver of any of
the provisions of Section 1, 2, 3, 4, 5, 6 or 22 hereof, or any defined term (as it is used in any such Section), will be effective as to any holder of Notes unless consented to by such holder of Notes in writing, and (b) no such amendment or waiver
may, without the written consent of all of the holders of Notes at the time outstanding affected thereby, (i) subject to the provisions of Section 13 relating to acceleration or rescission, change the amount or time of any prepayment or payment of
principal of, or reduce the rate or change the time of payment or method of computation of interest or of the LIBOR Breakage Amount on, the Notes, (ii) change the percentage of the principal amount of the Notes the holders of which are required to
consent to any such amendment or waiver, (iii) amend any of Sections 8, 12(a), 12(b), 13, 18 or 21, or (iv) reduce or alter the scope of the guarantee by the Company of the obligations of the Issuer in respect of this Agreement and the Notes.

  
 Section 18.2. Solicitation of Holders of Notes. 
  
 (a) Solicitation. The Company and the Issuer will provide each holder of the
Notes (irrespective of the amount of Notes then owned by it) with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed
amendment, waiver or consent in respect of any of the provisions hereof or of the Notes. The Company and the Issuer will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this
Section 18 to each holder of outstanding Notes promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes. 
  
 (b) Payment. Neither the Company nor the Issuer will directly or indirectly pay
or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security, to any holder of Notes as consideration for or as an inducement to the entering into by such holder of Notes of any
waiver or amendment of any of the terms and provisions hereof unless such remuneration is concurrently paid, or security is concurrently granted, on the same terms, ratably to each holder of Notes then outstanding even if such holder did not consent
to such waiver or amendment. 
  
 Section 18.3. Binding Effect, Etc.
Any amendment or waiver consented to as provided in this Section 18 applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Company and the Issuer without regard to whether such Note has
been marked to indicate such amendment or waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not 
  

 -40- 

 expressly amended or waived or impair any right consequent thereon. No course of dealing between the Company, the Issuer and the
holder of any Note nor any delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of any holder of such Note. As used herein, the term “this Agreement” and references thereto shall mean this
Agreement as it may from time to time be amended or supplemented. 
  
 Section 18.4. Notes Held by Company, Issuer, Etc. Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any
amendment, waiver or consent to be given under this Agreement or the Notes, or have directed the taking of any action provided herein or in the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal
amount of Notes then outstanding, Notes directly or indirectly owned by the Company, the Issuer or any of their respective Affiliates shall be deemed not to be outstanding. 
  
 SECTION 19. NOTICES. 
  
 All notices and communications provided for hereunder shall be in writing and sent (a) by telefacsimile if the sender on the same day
sends a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), or (b) by a recognized overnight delivery service (with charges prepaid). Any such notice must be sent: 
  
 (i) if to a Purchaser or such Purchaser’s nominee, to such
Purchaser or such Purchaser’s nominee at the address specified for such communications in Schedule A to this Agreement, or at such other address as such Purchaser or such Purchaser’s nominee shall have specified to the Company or the
Issuer in writing pursuant to this Section 19; 
  
 (ii) if
to any other holder of any Note, to such holder at such address as such other holder shall have specified to the Company or the Issuer in writing pursuant to this Section 19; or 
  
 (iii) if to the Company or the Issuer, to the Company or the Issuer at its address set forth at the beginning hereof
to the attention of Chief Financial Officer, or at such other address as the Issuer shall have specified to the holder of each Note in writing. 
  
 Notices under this Section 19 will be deemed given only when actually received. 
  
 SECTION 20. REPRODUCTION OF DOCUMENTS. 
  
 This Agreement and all documents relating thereto, including, without limitation, (a)
consents, waivers and modifications that may hereafter be executed, (b) documents received by each Purchaser at the Closing (except the Notes themselves), and (c) financial statements, certificates and other information previously or hereafter
furnished to each Purchaser, may be reproduced by such Purchaser by any photographic, photostatic, microfilm, microcard, miniature photographic or other similar process and such Purchaser may destroy any original document so reproduced. The Company
and the Issuer agree and stipulate that, to the extent permitted by 
  

 -41- 

 applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative
proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be
admissible in evidence. This Section 20 shall not prohibit the Company, the Issuer or any other holder of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate
the inaccuracy of any such reproduction. 
  
 SECTION 21. CONFIDENTIAL INFORMATION. 
  
 For the purposes of this Section 21, “Confidential Information” means information delivered to any Purchaser by or on behalf of the Company or any Subsidiary in connection with the transactions contemplated by
or otherwise pursuant to this Agreement that is confidential or otherwise proprietary in nature, provided that such term does not include information that (a) was publicly known or otherwise known to such Purchaser prior to the time of such
disclosure, (b) subsequently becomes publicly known through no act or omission by such Purchaser or any Person acting on such Purchaser’s behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by the Company or any
Subsidiary or (d) constitutes financial statements delivered to such Purchaser under Section 7.1 that are otherwise publicly available. Each Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures
adopted by such Purchaser in good faith to protect confidential information of third parties delivered to such Purchaser, provided that such Purchaser may deliver or disclose Confidential Information to (i) such Purchaser’s directors,
trustees, officers, employees, agents, attorneys and Affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by such Purchaser’s Notes), (ii) such Purchaser’s financial advisors and
other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 21, (iii) any other holder of any Note, (iv) any Institutional Investor to which such Purchaser sells
or offers to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 21), (v) any Person from which
such Purchaser offers to purchase any security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 21), (vi) any federal or state regulatory
authority having jurisdiction over such Purchaser, (vii) the National Association of Insurance Commissioners or any similar organization, or any nationally recognized rating agency that requires access to information about such Purchaser’s
investment portfolio, or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in response to any subpoena or
other legal process, (y) in connection with any litigation to which such Purchaser is a party or (z) if an Event of Default has occurred and is continuing, to the extent such Purchaser may reasonably determine such delivery and disclosure to be
necessary or appropriate in the enforcement or for the protection of the rights and remedies under such Purchaser’s Notes and this Agreement. Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and
to be entitled to the benefits of this Section 21 as though it were a party to this Agreement. On reasonable request by the Company or the Issuer in connection with the delivery to any holder of a Note of information required to be delivered to such
holder under this Agreement or requested 
  

 -42- 

 by such holder (other than a holder that is a party to this Agreement or its nominee), such holder will enter into an agreement
with the Company and the Issuer embodying the provisions of this Section 21. 
  
 SECTION 22. SUBSTITUTION OF PURCHASER. 
  
 Each Purchaser shall have the right to substitute any one of such Purchaser’s Affiliates as the purchaser of the Notes that such Purchaser has agreed to
purchase hereunder, by written notice to the Company and the Issuer, which notice shall be signed by both such Purchaser and such Purchaser’s Affiliate, shall contain such Affiliate’s agreement to be bound by this Agreement and shall
contain a confirmation by such Affiliate of the accuracy with respect to it of the representations set forth in Section 6, provided, however, that no such substitution shall relieve the original Purchaser from its obligation to purchase Notes
hereunder. Upon receipt of such notice, wherever the word “Purchaser” is used in this Agreement (other than in this Section 22), such word shall be deemed to refer to such Affiliate in lieu of such Purchaser. In the event that such
Affiliate is so substituted as a purchaser hereunder and such Affiliate thereafter transfers to such Purchaser all of the Notes then held by such Affiliate, upon receipt by the Company and the Issuer of notice of such transfer, wherever the word
“Purchaser” is used in this Agreement (other than in this Section 22), such word shall no longer be deemed to refer to such Affiliate, but shall refer to such Purchaser, and such Purchaser shall have all the rights of an original holder of
the Notes under this Agreement. 
  
 SECTION 23. MISCELLANEOUS.

  
 Section 23.1. Successors and Assigns. All covenants and other
agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including, without limitation, any subsequent holder of a Note) whether so expressed or
not. 
  
 Section 23.2. Payments Due on Non-Business Days. Anything in
this Agreement or the Notes to the contrary notwithstanding, any payment of principal of LIBOR Breakage Amount or interest on any Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without
including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day. 
  
 Section 23.3. Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or
render unenforceable such provision in any other jurisdiction. 
  
 Section 23.4. Construction. Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not
(absent such an express contrary provision) be deemed to excuse compliance with any other covenant. Where any provision herein refers to 
  

 -43- 

 action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such
action is taken directly or indirectly by such Person. 
  
 Section 23.5.
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by
less than all, but together signed by all, of the parties hereto. 
  
 Section 23.6. Governing Law. This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of
such State that would require the application of the laws of a jurisdiction other than such State. 
  
 * * * * * 
  

 -44- 

 The execution hereof by the Purchasers shall constitute a contract among the Company, the Issuer and the Purchasers
for the uses and purposes hereinabove set forth. This Agreement may be executed in any number of counterparts, each executed counterpart constituting an original but all together only one agreement. 
  

			
	 Very truly yours,
  
 JACKSON HEWITT TAX SERVICE INC.
  

		
	 By:
	 	  

	 	 	 Name:
                                        
             
 Title:
                                        
                

  
  

			
	 JACKSON HEWITT INC.
  

		
	 By:
	 	  

	 	 	 Name:
                                        
             
 Title:
                                        
                

  

 -45- 

 Accepted as of the first date written above. 
  

			
	[VARIATION]
		
	 By:
	 	  

	 	 	 Name:
                                        
             
 Title:
                                        
                

  

 -46- 

 PRINCIPAL AMOUNT 
 OF NOTES TO BE 

			
	NAME OF PURCHASERS	 	PURCHASED

  
 [                                      
                                      ]
                                        
                                  $[      
                  ] 
  
 [                                      
                                      ]
                                        
                                  $[      
                  ] 
  
 [                                      
                                      ] 
  
 [                                      
                                      ] 
  
 Payments 
  
 All payments on or in respect of the Notes to be by bank wire transfer of Federal or other immediately available funds (identifying each payment as “Jackson Hewitt Inc.,
Floating Rate Senior Notes due June [25], 2009, PPN, principal, premium or interest”) to: 
  
 [                                      
                                  ] 
  
 [                                      
                                  ] 
  
 [                                      
                                  ] 
  
 With telephone advice of payment to the
[                                        
                            ] Department of
[                                        
    ] at [(            )                     ].

  
 Notices 
  
 All notices and communications to be addressed as first provided above, except notices with respect to payments, to be addressed Attention:
[                                        
                                ] Department
[            ]. 
  
 Name
of Nominee in which Notes are to be issued: None 
  
 Taxpayer I.D. Number:
[            ] 
  

 SCHEDULE A 
  
 (to Note Purchase Agreement) 

 DEFINED TERMS 
  
 As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such
term: 
  
 “Acquisition” means (a) an Investment (through
the acquisition of Capital Stock or otherwise) by the Company or any Subsidiary in any other Person pursuant to which such Person shall become a Subsidiary of the Company or shall be merged with or into the Company or any Subsidiary of the Company,
or (b) the acquisition (by purchase, merger, consolidation or otherwise) by the Company or any Subsidiary of the assets of any Person which constitute all or substantially all of the assets of such Person, any division or line of business of such
Person or any other properties or assets of such Person other than in the ordinary course of business. 
  
 “Adjusted LIBOR Rate” for each Interest Period shall be a rate per annum equal to LIBOR for such Interest Period plus 1.5%. 
  
 “Affiliate” means, at any time, and with respect to any Person, (a)
any other Person that at such time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person, and (b) any Person beneficially owning or holding, directly or
indirectly, 10% or more of any class of voting or equity interests of the Company or any Subsidiary or any Person of which the Company and its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 10% or more of any class
of voting or equity interests. As used in this definition, “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise and shall exclude any officer or director of the Company or any Subsidiary in such capacity. Unless the context otherwise clearly requires, any reference to an “Affiliate” is
a reference to an Affiliate of the Company. 
  
 “Bank Credit
Agreement” means the Credit Agreement dated as of June [21], 2004 among Jackson Hewitt Tax Service Inc., as Parent, Jackson Hewitt, Inc., as Borrower, the lenders party thereto and, JPMorgan Chase Bank, as administrative agent, as amended
from time to time, and any renewals, extensions or replacements thereof. 
  
 “Business Day” means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York are required or authorized to be closed; provided that when used in connection with any
determination of LIBOR “Business Day” shall also exclude any day on which banks are not open for dealings in dollar deposits in the London interbank market. 
  
 “Calculation Date” means the last day of each fiscal quarter of the Company. 
  
 “Capital Lease” means, at any time, a lease with respect to which the
lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP. 
  

 SCHEDULE B 
 (to Note Purchase Agreement) 

 “Capital Lease Obligation” means, with respect to any Person and a Capital Lease, the amount of
the obligation of such Person as the lessee under such Capital Lease which would, in accordance with GAAP, appear as a liability on a balance sheet of such Person. 
  
 “Capital Stock” means shares of capital stock, partnership interests, membership interests in a limited liability
company, beneficial interests in a trust or other equity ownership interests in a Person and any warrants, options and other rights entitling the holder thereof to purchase or acquire any such equity interest. 
  
 “Cendant” is defined in Section 4.6. 
  
 “Change in Control” is defined in Section 8.5(h). 
  
 “Closing” is defined in Section 3. 
  
 “Code” means the Internal Revenue Code of 1986, as amended from time
to time, and the rules and regulations promulgated thereunder from time to time. 
  
 “Common Stock” is defined in Section 3. 
  
 “Company” means Jackson Hewitt Tax Service Inc., a Delaware corporation. 
  
 “Confidential Information” is defined in Section 21. 
  
 “Consolidated Debt” means the total amount of all Debt of the Company and its Subsidiaries determined on a consolidated basis in accordance with
GAAP. 
  
 “Consolidated EBITDA” means, for any period,
Consolidated Net Income (excluding any Consolidated Net Income resulting from any Office Acquisition or Franchisee Expansion occurring during such period) after eliminating extraordinary gains and losses, and unusual items, plus, without
duplication, (a) taxes, (b) depreciation and amortization, (c) Consolidated Interest Expense, (d) other non-cash charges, (e) any amount attributable to any non-recurring item including the Litigation Settlement, but excluding any cash payments made
in such period with respect to any non-recurring item, in the case of clauses (a) through (e) to the extent deducted for the computation of Consolidated Net Income for such period, and (f) (1) if any Office Acquisition occurred during such period,
the product of (A) the amount of the total revenues of such Office for the most recently completed period of four consecutive calendar quarters prior to the date of such Office Acquisition, and (B) the average EBITDA Margin attributable to all
Office Acquisitions made by the Company during the fiscal year preceding the year in which such Office Acquisition occurred; and (2) if any Franchisee Expansion occurred during such period, the product of (A) the royalty rate currently in effect for
such Franchisee under the applicable franchise agreement and (B) the amount of the total revenues of such Office for the most recently completed period of four consecutive calendar quarters prior to the date of such Franchisee Expansion;
provided that the aggregate amount included in Consolidated EBITDA pursuant to clause (f) shall not exceed 5% of Consolidated EBITDA calculated without giving effect to clause (f). 
  

 B-2 

 In addition to, and, without limitation of the foregoing, for purposes of this definition, “Consolidated
EBITDA” shall be calculated after giving effect on a pro forma basis for the period of such calculation to any EBITDA attributable to the assets which are the subject of an Acquisition during the Four Quarter Period, as if such Acquisition
occurred on the first day of such Four Quarter Period. 
  
 “Consolidated Fixed Charges” means, for any period, the sum of (a) Consolidated Interest Expense for such period and (b) regular quarterly dividends paid during such period in respect of the Company’s common stock. On
any Calculation Date, the Consolidated Fixed Charge Coverage Ratio will be calculated after giving effect on a pro forma basis for the applicable Four Quarter Period to the incurrence of any Debt in connection with an Office Acquisition, Franchisee
Expansion or other Acquisition. For purposes of determining “Consolidated Fixed Charges”, (1) interest on outstanding Debt determined on a fluctuating basis as of the Calculation Date and which will continue to be so determined
thereafter shall be deemed to have accrued at a fixed rate per annum equal to the rate of interest on such Debt in effect on the Calculation Date; (2) if interest on Debt outstanding on the Calculation Date may optionally be determined at an
interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered rate, or other rates, then the interest rate in effect on the Calculation Date shall be deemed to have been in effect during the Four Quarter Period; and
(3) notwithstanding clause (1) above, interest on Debt determined on a fluctuating basis, to the extent such interest is covered by interest rate protection agreements, shall be deemed to accrue at the rate per annum resulting after giving effect to
the operation of such agreements. 
  
 “Consolidated Fixed Charge
Coverage Ratio” means as of any Calculation Date, the ratio of Consolidated EBITDA for the Four Quarter Period ending on such Calculation Date to (b) Consolidated Fixed Charges for the Four Quarter Period ending on such Calculation Date.

  
 “Consolidated Interest Expense” means, for any period,
the sum, for the Company and its Subsidiaries (determined in accordance with GAAP), of all interest in respect of Debt (including, without limitation, the interest component of any payments in respect of Capital Lease obligations but excluding any
capitalized financing costs) accrued during such period (whether or not actually paid during such period). 
  
 “Consolidated Leverage Ratio” means, at any Calculation Date, the ratio of (a) Consolidated Debt at such date to (b) Consolidated EBITDA for the
Four Quarter Period ended as of such Calculation Date. 
  
 “Consolidated Net Income” means, for any period, the net income (or loss) of the Company and its Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP consistently applied. 
  
 “Consolidated Net Tangible Assets” means as of the date of any
determination thereof Consolidated Total Assets after deducting “Goodwill” and “Other Intangibles-Net” (or equivalent line item or items) as shown on the consolidated balance sheet of the Company and its Subsidiaries for the most
recently ended fiscal quarter. 
  

 B-3 

 “Consolidated Net Worth” means as of any date of determination the consolidated stockholders’
equity of the Company and its Subsidiaries, as determined in accordance with GAAP. 
  
 “Consolidated Total Assets” means, as of any date of determination, the total amount of all assets of the Company and its Subsidiaries, determined on a consolidated basis in accordance with GAAP. 
  
 “Debt” means, with respect to any Person, without duplication,

  
 (a) its liabilities for borrowed money; 
  
 (b) its liabilities for the deferred purchase price of property
acquired by such Person (excluding (a) accounts payable and other accrued liabilities arising in the ordinary course of business and (b) to the extent the payment thereof is contingent, the deferred purchase price of property acquired by such
Person) but including, without limitation, all liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property); 
  
 (c) its Capital Lease Obligations; 
  
 (d) all liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether
or not it has assumed or otherwise become liable for such liabilities); 
  
 (e) its redemption obligations in respect of Disqualified Capital Stock to the extent payable with cash or other consideration (except common stock or other equity securities); and 
  
 (f) Guarantees of such Person with respect to liabilities of a type
described in any of clauses (a) through (e) hereof, excluding Franchisee Advance Payments made in connection with programs created by the Company or any Subsidiary for the general benefit of the franchisee system. 
  
 Debt of any Person shall include all obligations of such Person of the character
described in clauses (a) through (f) to the extent such Person remains legally liable in respect thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP. Debt of any Person shall exclude all liabilities of such
Person for the Litigation Settlement and the development advance notes (or other similar arrangements).  
  
 “Default” means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both, become an
Event of Default. 
  
 “Default Rate” means with respect to
the Notes that rate of interest that is the greater of (i) 2% per annum above the rate of interest referred to in clause (a) of the first paragraph of the 
  

 B-4 

 Notes or (ii) 2% over the rate of interest publicly announced by JPMorgan Chase Bank in New York, New York as its “base”
or “prime” rate. 
  
 “Disqualified Capital Stock”
means mandatorily redeemable preferred stock with mandatory sinking fund or redemptions payments prior to the maturity date of the Notes. 
  
 “Domestic Subsidiary” means any Subsidiary which is which is organized under the laws of the United States of America or any State thereof or the
District of Columbia. 
  
 “EBITDA Margin” means,
with respect to any Office, for any period, the quotient of the Office Acquisition EBITDA with respect to such Office for such period divided by the total revenues (as determined in accordance with GAAP) of such Office for such period. 

 
 “Environmental Laws” means any and all federal, state, local, and
foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including but not limited to those related to hazardous substances or wastes, air emissions and discharges to waste or public systems. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and
regulations promulgated thereunder from time to time in effect. 
  
 “ERISA Affiliate” means any trade or business (whether or not incorporated) that is treated as a single employer together with the Company or the Issuer, as the case may be, under Section 414 of the Code. 
  
 “Event of Default” is defined in Section 12. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

  
 “Fair Market Value” means, at any time and with respect
to any property, the sale value of such property that would be realized in an arm’s-length sale at such time between an informed and willing buyer and an informed and willing seller (neither being under a compulsion to buy or sell), as
reasonably determined in the good faith opinion of the Company’s board of directors or one or more officers to whom authority to determine such value has been delegated by the board of directors. 
  
 “Four Quarter Period” means as of any Calculation Date, the period of
four complete, consecutive fiscal quarters ended on such Calculation Date. 
  
 “Franchisee” means a Person (other than the Company or a Subsidiary) that owns and operates a Company-licensed Office. 
  

 B-5 

 “Franchisee Advance Payments” means advances made from time to time by the Company or any
Subsidiary to third parties on behalf of or for the benefit of Franchisees 
  
 “Franchisee Expansion” means the issuance of a development advance note or other similar financings to Franchisees by the Company or any Subsidiary. 
  
 “GAAP” means generally accepted accounting principles as in effect from time to time in the United States of America;
provided that if the Company notifies the holders of the Notes or the Required Holders notify the Company that such party wishes to amend any negative covenant to eliminate the effect of any change in GAAP on the operation of such covenant,
then the Company’s compliance with such negative covenant shall be determined on the basis of GAAP in effect immediately before the relevant change in GAAP became effective, until either such notice is withdrawn or such covenant is amended in a
manner satisfactory to the Company and the Required Holders. 
  
 “Governmental Authority” means 
  
 (a) the government of 
  
 (i) the United States
of America or any state or other political subdivision thereof, or 
  
 (ii) any jurisdiction in which the Company or any Subsidiary conducts all or any part of its business, or which has jurisdiction over any properties of the Company or any Subsidiary, or 
  
 (b) any entity exercising executive, legislative, judicial, regulatory
or administrative functions of, or pertaining to, any such government. 
  
 “Guaranty” means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect
guaranteeing any Debt, dividend or other obligation of any other Person in any manner, whether directly or indirectly, including (without limitation) obligations incurred through an agreement, contingent or otherwise, by such Person: 
  
 (a) to purchase such Debt or obligation or any property constituting
security therefor primarily for the purpose of assuring the owner of such Debt or obligation of the ability of any other Person to make payment of the Debt or obligation; 
  
 (b) to advance or supply funds (i) for the purchase or payment of such Debt or obligation, or (ii) to maintain any
working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such Debt or obligation; 
  

 B-6 

 (c) to lease properties or to purchase properties or services primarily for the purpose of assuring
the owner of such Debt or obligation of the ability of any other Person to make payment of the Debt or obligation; or 
  
 (d) otherwise to assure the owner of such Debt or obligation against loss in respect thereof. 
  
 In any computation of the Debt or other liabilities of the obligor under any Guaranty,
the Debt or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor, provided that the amount of such Debt outstanding for purposes of this Agreement shall not exceed the maximum
amount of Debt that is the subject of such Guaranty. 
  
 “Hazardous
Material” means any and all pollutants, toxic or hazardous wastes or any other substances that might pose a hazard to health or safety, the removal of which may be required or the generation, manufacture, refining, production, processing,
treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage, or filtration of which is or shall be restricted, prohibited or penalized by any applicable law (including, without limitation, asbestos,
urea formaldehyde foam insulation and polychlorinated biphenyls). 
  
 “holder” means, with respect to any Note, the Person in whose name such Note is registered in the register maintained by the Issuer pursuant to Section 14.1. 
  
 “Institutional Investor” means (a) any original purchaser of a Note, (b) any holder of more than $5,000,000 of the
aggregate principal amount of the Notes then outstanding, and (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any
other similar financial institution or entity, regardless of legal form. 
  
 “Interest Payment Date” shall have the meaning assigned thereto in Section 1.2 of this Agreement. 
  
 “Interest Period” shall mean the period commencing on the Closing Date up to, but not including, the first Interest Payment Date and, thereafter,
the period commencing on the next succeeding Interest Payment Date and continuing up to, but not including, the next Interest Payment Date. 
  
 “Interest Rate Protection Agreement” means any interest rate swap agreement, interest rate cap agreement or other similar financial agreement or
arrangement. 
  
 “Investments” shall mean all investments,
in cash or by delivery of property made, directly or indirectly in any Person, whether by acquisition of shares of Capital Stock, Debt or other obligations or securities or by loan, advance, capital contribution or otherwise. 
  
 “IPO” is defined in Section 3. 
  

 B-7 

 “Issuer” means Jackson Hewitt Inc., a Virginia corporation. 
  
 “knowledge” when used with respect to the Company or any Responsible
Officer to qualify a representation or warranty of the Company or such Responsible Officer, shall be deemed to be, the actual knowledge of such Responsible Officer. 
  
 “LIBOR” shall mean, 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 90-day period which appears on the Bloomberg Financial Markets Service Page BBAM-1 (or if such page is not available, the Reuters Screen LIBO Page) as of 11:00 a.m.
(London, England time) on the date 2 Business Days before the commencement of such Interest Period (or three (3) Business Days prior to the beginning of the first Interest Period). “Reuters Screen LIBO Page” means the display
designated as the “LIBO” page on the Reuters Monitory Money Rates Service (or such other page as may replace the LIBO page 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 Banker’s Association Interest Settlement Rates for U.S. Dollar deposits). 
  
 “LIBOR Breakage Amount” is defined in Section 8.2. 
  
 “Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of
any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement (other than an operating lease) or Capital Lease, upon or with respect to any property or asset of such Person
(including, in the case of stock, shareholder agreements, voting trust agreements and all similar arrangements). 
  
 “Litigation Settlement” means the settlement in July 2003 of the lawsuit filed against the Company by 154 of its franchisees on August 27, 2002.

  
 “Material” means material in relation to the business,
operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole. 
  
 “Material Adverse Effect” means a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of
the Company and its Subsidiaries taken as a whole, or (b) the ability of the Company, the Issuer and their Subsidiaries, taken as a whole, to perform their obligations under this Agreement and the Notes, or (c) the validity or enforceability of this
Agreement, the Notes or the Subsidiary Guaranty. 
  
 “Material
Subsidiary” means each Subsidiary of the Company other than Subsidiaries that, in the aggregate, account for no more than 5% of Consolidated Total Assets, 5% of Consolidated Net Worth or 5% of the consolidated revenues of the Company.

  
 “Memorandum” is defined in Section 5.3. 
  

 B-8 

 “Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is
defined in Section 4001(a)(3) of ERISA). 
  
 “Net Proceeds”
means with respect to any sale of property by any Person an amount equal to (a) the aggregate amount of the consideration received by such Person in respect of such sale (valued at the Fair Market Value of such consideration at the time of such
sale), minus (b) the sum of (i) all out-of-pocket costs and expenses actually incurred by such Person in connection with such sale, and (ii) all state, federal and foreign taxes incurred, or to be incurred, by such Person in connection with
such sale. 
  
 “Notes” is defined in Section 1. 

 
 “Office” means a business that provides tax return preparation and
other related services. 
  
 “Office Acquisition” means the
purchase (whether through the purchase of an Office or an Acquisition) by the Company or a Subsidiary of an operating Office from a third party. 
  
 “Office Acquisition EBITDA” means, for any Office Acquisition for any period, consolidated net income (determined in accordance with GAAP) of such
Office for such period after eliminating extraordinary gains and losses, and unusual items, plus, without duplication, (a) taxes, (b) depreciation and amortization, (c) interest expense, (d) other non-cash charges and (e) any amount attributable to
any non-recurring item, but excluding any cash payments made in such period with respect to any non-recurring item, in the case of clauses (a) through (e) to the extent deducted for the computation of consolidated net income for such period.

  
 “Officer’s Certificate” means a certificate of a
Senior Financial Officer or of any other officer of the Company, the Issuer or any Subsidiary Guarantor, as the context may require, whose responsibilities extend to the subject matter of such certificate. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA or any successor thereto. 
  
 “Permitted
Liens” means any Liens of the type described in clauses (a) through (m) of Section 10.3. 
  
 “Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, or a government
or agency or political subdivision thereof. 
  
 “Plan”
means an “employee benefit plan” (as defined in Section 3(3) of ERISA) that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or
required to be made, by the Company, the Issuer or any ERISA Affiliate or with respect to which the Company, the Issuer or any ERISA Affiliate may have any liability. 
  

 B-9 

 “Priority Debt” means (without duplication), as of the date of any determination thereof, (i) all
unsecured Debt of Subsidiaries of the Company (but excluding (x) Debt of the Issuer, (y) Debt owing to the Company, the Issuer or a Wholly-Owned Subsidiary and (z) Debt of Subsidiary Guarantors under the Subsidiary Guaranty and the guaranty of
obligations under the Bank Credit Agreement), and (ii) all Debt of the Company or its Subsidiaries secured by Liens other than Debt secured by Liens permitted by subparagraphs (a) through (l), inclusive, of Section 10.3. 
  
 “property” or “properties” means, unless otherwise
specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate. 
  
 “Purchasers” means the purchasers of the Notes named in Schedule A hereto. 
  
 “QPAM Exemption” means Prohibited Transaction Class Exemption 84-14 issued by the United States Department of Labor.

  
 “Required Holders” means, at any time, the holders of
more than 50% in principal amount of the Notes at the time outstanding (exclusive of Notes then owned by the Company, the Issuer or any of their Affiliates). 
  
 “Responsible Officer” means any Senior Financial Officer and any other officer of the Company with responsibility for the administration of the
relevant portion of this Agreement. 
  
 “Restricted
Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any Capital Stock in the Company or any Subsidiary, or any payment (whether in cash, securities or other property), including
any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Capital Stock in the Company or any Subsidiary or any option, warrant or other right to acquire any such
Capital Stock in the Company or any Subsidiary. 
  
 “Securities
Act” means the Securities Act of 1933, as amended from time to time. 
  
 “Senior Debt” means, as of the date of any determination thereof, all Consolidated Debt, other than Subordinated Debt. 
  
 “Senior Financial Officer” means the chief financial officer, principal accounting officer, treasurer or comptroller of the Company. 
  
 “Special Dividend ” means the special dividend described in the
Memorandum to be paid to Cendant. 
  
 “Subordinated Debt”
means all unsecured Debt of the Issuer which shall contain or have applicable thereto subordination provisions providing for the subordination thereof to other Debt of the Issuer (including, without limitation, the obligations of the Issuer under
this Agreement and the Notes). 
  
 “Subsidiary” means, as
to any Person, any corporation, association or other business entity in which such Person or one or more of its Subsidiaries or such Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a
group) 
  

 B-10 

 ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of such
entity, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such Person or one or more of its Subsidiaries or such Person and one or more of its Subsidiaries (unless such partnership can and
does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries). Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the
Company or the Issuer. 
  
 “Subsidiary Guarantor” means
each Material Subsidiary which is a Domestic Subsidiary and any other Subsidiary which has become a party to the Subsidiary Guaranty. 
  
 “Subsidiary Guaranty” shall mean the Subsidiary Guaranty delivered pursuant to Section 2.2 and each other Subsidiary Guaranty hereafter executed
and delivered by a Subsidiary of the Company for the benefit of the holders of the Notes in accordance with Section 9.6. 
  
 “Wholly-Owned Subsidiary” means, at any time, any Subsidiary one hundred percent (100%) of all of the equity interests (except directors’
qualifying shares) and voting interests of which are owned by any one or more of the Company and the Company’s other Wholly-Owned Subsidiaries at such time. 
  

 B-11 

 Subsidiaries of the Company, Ownership of Subsidiary Stock 
  

					
	 SUBSIDIARY

	  	STATE OF
INCORPORATION

	  	 STOCKHOLDER

	 Jackson Hewitt Inc.
	  	Virginia	  	100% owned by the Company
	 Tax Services of America, Inc.
	  	Delaware	  	100% owned by the Issuer
	 Hewfant, Inc.
	  	Virginia	  	100% owned by the Issuer

  

 SCHEDULE 5.4 
 (to Note Purchase Agreement) 

 EXISTING LIENS 
  

 SCHEDULE 10.3 
 (to Note Purchase Agreement) 

 [FORM OF NOTE] 
  
 THIS NOTE HAS BEEN
ACQUIRED FOR INVESTMENT AND HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER STATE SECURITIES
LAWS. NO TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF
THIS NOTE MAY BE MADE UNLESS REGISTERED OR EXEMPT FROM REGISTRATION
UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS AND UNLESS THE
TRANSFER RESTRICTIONS IMPOSED BY THE NOTE PURCHASE AGREEMENT REFERRED TO BELOW
ARE COMPLIED WITH. 
  
 JACKSON HEWITT INC. 
  
 FLOATING RATE SENIOR NOTE DUE JUNE [25], 2009 
  

			
	 No. [                    ]
	 	[Date]
	 $[                        ]
	 	PPN 468201 A* 9

  
 FOR
VALUE RECEIVED, the undersigned, JACKSON HEWITT INC. (herein called the “Issuer”), a Virginia corporation, hereby promises to pay to
[                            ], or registered assigns, the principal sum of
[                    ] DOLLARS on June [25], 2009, with interest (computed on the basis of a 360 day year and actual days
elapsed) (a) on the principal amount from time to time remaining unpaid hereon at a floating rate equal to the Adjusted LIBOR Rate (as defined in the Note Purchase Agreement referred to below) from the date thereof until maturity, payable quarterly
on the twenty-third day of each March, June, September and December in each year commencing on September 25, 2004 until the principal hereof shall have become due and payable, and (b) to the extent permitted by law on any overdue payment (including
any overdue prepayment) of principal, any overdue payment of interest and any overdue payment of any LIBOR Breakage Amount (as defined in the Note Purchase Agreement referred to below), payable quarterly as aforesaid (or, at the option of the
registered holder hereof, on demand), at a rate per annum from time to time equal to the Default Rate (as defined in the Note Purchase Agreement). 
  
 Payments of principal of, interest on and any LIBOR Breakage Amount with respect to this Note are to be made in lawful money of the United States of America at the
principal office of JP Morgan Chase Bank in New York, New York or at such other place as the Issuer shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreement referred to below. 
  
 This Note is one of a series of Senior Notes (herein called the
“Notes”) issued pursuant to the Note Purchase Agreement, dated as of June [21], 2004 (as from time to time amended, supplemented or modified, the “Note Purchase Agreement”), among Jackson Hewitt Tax Service Inc., a
Delaware corporation (the “Company”), the Issuer and the respective Purchasers named therein and is entitled to the benefits thereof. Each holder of this Note will be deemed, by its acceptance hereof, (i) to have agreed to the
confidentiality provisions set forth in Section 21 of the Note Purchase Agreement and (ii) to have made the representation set forth in Section 6.2 of the Note Purchase Agreement. 
  

 EXHIBIT 1 
 (to Note Purchase Agreement) 

 This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender of this Note for
registration of transfer, duly endorsed, or accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be
issued to, and registered in the name of, the transferee. Prior to due presentment for registration of transfer, the Issuer may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for
all other purposes, and the Issuer will not be affected by any notice to the contrary. 
  
 This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but not otherwise. 
  
 Pursuant to the Note Purchase Agreement and the Subsidiary Guaranty dated as of June
21, 2004, respectively, the Company and certain Subsidiaries of the Company have absolutely and unconditionally guaranteed payment in full of the principal of, LIBOR Breakage Amount, if any, and interest on this Note and the performance by the
Issuer of all of its obligations contained in the Note Purchase Agreement all as more fully set forth in said Note Purchase Agreement and said Subsidiary Guaranty. 
  
 If an Event of Default, as defined in the Note Purchase Agreement, occurs and is continuing, the principal of this Note may be
declared or otherwise become due and payable in the manner, at the price (including any applicable LIBOR Breakage Amount) and with the effect provided in the Note Purchase Agreement. 
  
 This Note shall be construed and enforced in accordance with, and the rights of the issuer and holder hereof shall be governed by, the
law of the State of New York excluding choice-of-law principles of the law of such State that would require the application of the laws of a jurisdiction other than such State. 
  

					
	
	 JACKSON HEWITT INC.

		
	 By
	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

  

 E-1 

 FORM OF OPINION OF SPECIAL
COUNSEL 
 TO THE COMPANY AND THE ISSUER

  

 EXHIBIT 4.4(a) 
 (to Note Purchase Agreement) 

 FORM OF OPINION OF SPECIAL
COUNSEL 
 TO THE COMPANY AND THE ISSUER

  

 Exhibit 4.4(b) 
 (to Note Purchase Agreement) 

 FORM OF OPINION OF SPECIAL
COUNSEL 
 TO THE PURCHASERS 
  

 Exhibit 4.4(c) 
 (to Note Purchase Agreement)

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