Document:

PLEDGE
AGREEMENT

     

    THIS
PLEDGE AGREEMENT (as amended, restated, or supplemented from time to time,
this “Agreement”)
is executed as of November 30, 2010 (the “Closing
Date”), by Oak Tree Educational Partners, Inc., a Delaware corporation
formerly known as Florham Consulting Corp. (the “Company”), each of the other
“Pledgors” listed on the signature pages hereto or joining this Agreement in the
capacity of “Pledgor” following the Closing Date (together with the Company,
each a “Pledgor”
and collectively, “Pledgors”),
and Deerpath Funding, LP, a Delaware limited partnership (“Deerpath”),
as Agent (in such capacity, together with any successor Agent under the Loan
Agreement, “Agent”)
for the ratable benefit of Lenders (defined below).

     

    RECITALS

     

    A.         Pledgors
are party to that certain Loan Agreement dated as of the date hereof (as
amended, restated or supplemented from time to time, the “Loan
Agreement”), by and among Pledgors and each of the other Subsidiaries of
the Company, current and future, as borrowers (each a “Borrower”
and collectively, the “Borrowers”),
the lenders party thereto (collectively, “Lenders”),
and Agent, together with certain other Loan Documents, pursuant to which Lenders
have agreed, subject to the terms and conditions therein, to make a
senior-secured term loan to Borrowers in a single advance on the Closing Date in
an amount equal to $3,000,000.

     

    B.          Pledgors
are the sole owners, directly or indirectly, of 100% of the issued and
outstanding equity interests of the Pledged Issuers (defined below), as
indicated on Schedule
1.

     

    C.          Pledgors
have agreed to grant to Agent (for the ratable benefit of the Lenders) a
security interest in, and pledge and assign to Agent (for the ratable benefit of
Lenders), the Collateral described herein, to secure the payment and performance
of the Obligation when due.

     

    D.          It
is expressly understood among Pledgors, Agent and Lenders that the execution and
delivery of this Agreement is a condition precedent to Lenders’ obligations to
extend credit under the Loan Agreement.

     

    NOW,
THEREFORE, for valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties agree as follows:

     

    1.           Certain
Definitions.  CAPITALIZED
TERMS USED BUT NOT DEFINED IN THIS AGREEMENT HAVE THE MEANINGS GIVEN THEM IN THE
LOAN AGREEMENT OR IN THE UCC.  If the definition given a term in the
Loan Agreement conflicts with the definition given that term in the UCC, the
Loan Agreement definition shall control to the extent allowed by
Law.  Terms used in this Agreement which are not capitalized but which
are defined in the UCC shall have the meanings given them in the
UCC.  If the definition given a term in Chapter 9 of the UCC conflicts
with the definition given that term in any other chapter of the UCC, the Chapter
9 definition shall control.  As used in this Agreement:

     

    
      “Agent” is
defined in the introductory paragraph hereto.
 

    

    
      
         

      

      
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    “Agreement”
means this Pledge Agreement together with all schedules, exhibits, and annexes
attached to this Pledge Agreement, and all amendments, restatements, and
supplements to this Pledge Agreement, the schedules, exhibits, and
annexes.

     

    “Borrower”
and “Borrowers”
are defined in the Recitals.

     

    “Closing
Date” is defined in the introductory paragraph hereto.

     

    “Collateral”
is defined in Section
3.

     

    “Company”
is defined in the introductory paragraph hereto.

     

    “Deerpath”
is defined in the introductory paragraph hereto.

     

    “Default”
means a “Default” under, and as defined in, the Loan Agreement.

     

    “Equity
Power” means a stock power or equity power, as applicable, substantially
in the form of Annex A to
this Agreement, executed and delivered by a Pledgor to Agent (for the ratable
benefit of Lenders) pursuant to the terms of this Agreement.

     

    “Equity
Securities” is defined in the Loan Agreement.

     

    “Fraudulent
Conveyance” is defined in Section 5
of this Agreement.

     

    “Governmental
Authority” means any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body,
court, administrative tribunal, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or
functions of or pertaining to government and includes a private mediation or
arbitration board or panel.

     

    “Lender”
and “Lenders”
are defined in the Recitals, and also include any other Person that becomes a
“Lender” under, and as defined in, the Loan Agreement.

     

    “Loan
Agreement” is defined in the Recitals.

     

    “Obligation”
means the “Obligation” under, and as defined in, the Loan
Agreement.

     

    “Pledged
Interests” is defined Section
3.

     

    “Pledgor”
and “Pledgors”
are defined in the introductory paragraph hereto and include, without
limitation, each Pledgor as a debtor-in-possession, and any receiver, trustee,
liquidator, conservator, custodian, or similar party hereafter appointed for any
Pledgor or all or substantially all of any Pledgor’s assets pursuant to any
liquidation, conservatorship, bankruptcy, moratorium, rearrangement,
receivership, insolvency, reorganization, or similar Law from time to time in
effect affecting the rights of creditors generally.

     

    “Securities
Act” means the “Securities Act” under, and as defined in, the Loan
Agreement.

     

    
      
        
           

        

        
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    “Security
Interest” means the security interests granted and the transfers, pledges
and collateral assignments made under Section 3
of this Agreement.

     

    “Term Loan”
is defined in the Loan Agreement.

     

    “UCC” means
(a) generally, and with respect to the definitions above, the Uniform Commercial
Code, as adopted in New York, as amended from time to time, and (b) with respect
to rights in states other than New York, the Uniform Commercial Code as enacted
in the applicable state, as amended from time to time.

     

    2.           Loan
Agreement.  This
Agreement is being executed and delivered pursuant to the terms and conditions
of the Loan Agreement and related Loan Documents.  Each Security
Interest is a “Lien” referred to in the Loan Agreement.

     

    3.           Security
Interest.  In
order to secure the full and complete payment and performance of the Obligation
when due, each Pledgor hereby grants to Agent, for the ratable benefit of
Lenders, a continuing security interest in, and pledges and collaterally assigns
to Agent, for the ratable benefit of Lenders, all of its rights, title and
interest in and to the following (collectively, the “Collateral”):

     

    (a)           the
Equity Securities described in attached Schedule 1
(the “Pledged
Interests”), whether or not evidenced or represented by any stock
certificate, unit certificate, certificated security or other instrument, issued
by the “Issuer(s)” set forth on Schedule 1
(each a “Pledged
Issuer” and, collectively, the “Pledged
Issuers”), the certificates representing the Pledged Interests, all
options and other rights, contractual or otherwise, in respect thereof and all
dividends, distributions, cash, instruments, investment property and other
property (including, but not limited to, any stock or other equity dividends and
any distributions in connection with a stock or other equity split) from time to
time received, receivable or otherwise distributed in respect of, or in exchange
for, any or all of the Pledged Interests;

     

    (b)           any
other Equity Securities of any Borrower or any other Person at any time and from
time to time acquired by such Pledgor, the certificates representing such Equity
Securities, all options and other rights, contractual or otherwise, in respect
thereof and all dividends, distributions, cash, instruments, investment property
and other property (including, but not limited to, any stock or other equity
dividends and any distributions in connection with a stock or other equity
split) from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of the foregoing;

    (c)           all
investment property, financial assets, securities, capital stock, other equity
interests, stock options and commodity contracts of such Pledgor, all notes,
debentures, bonds, promissory notes or other evidences of indebtedness of such
Pledgor, and all other assets now or hereafter received or receivable with
respect to the foregoing;

     

    (d)           all
security entitlements of such Pledgor in any and all of the foregoing;
and

     

    
      
        
           

        

        
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    (e)           all
proceeds (including proceeds of proceeds) of any and all of the
foregoing;

     

    in each
case, whether now owned or hereafter acquired by such Pledgor and howsoever its
interest therein may arise or appear (whether by ownership, security interest,
Lien, claim or otherwise).

     

    Notwithstanding
the foregoing, if any such Person described above is organized or formed under
the laws of a jurisdiction other than the District of Columbia or any State or
territory of the United States of America, then the applicable Pledgor shall
pledge not more than 66% of its equity interests in such Person.

     

    4.           No Assumption or
Modification.  The
Security Interest is given to secure the prompt, unconditional and complete
payment and performance of the Obligation when due, and is given as security
only.  Neither Agent nor any Lender hereby assumes or shall be liable
for any Pledgor’s liabilities, duties, or obligations under or in connection
with the Collateral.  Neither Agent’s acceptance of this Agreement nor
its taking any action in carrying out this Agreement shall constitute Agent’s or
any Lender’s approval of the Collateral or Agent’s or any Lender’s assumption of
any obligation under or in connection with the Collateral.  This
Agreement does not affect or modify any Pledgor’s obligations with respect to
the Collateral.

     

    5.           Fraudulent
Conveyance.  Notwithstanding
anything contained in this Agreement to the contrary, each Pledgor agrees that
if, but for the application of this Section 5,
the Obligation or any Security Interest would constitute a preferential transfer
under 11 U.S.C. § 547, a fraudulent conveyance under 11 U.S.C. § 548 (or
any successor section) or a fraudulent conveyance or transfer under any state’s
fraudulent conveyance or fraudulent transfer Law or similar Law in effect from
time to time (each a “Fraudulent
Conveyance”), then the Obligation and each affected Security Interest
will be enforceable against such Pledgor to the maximum extent possible without
causing the Obligation or any Security Interest to be a Fraudulent Conveyance,
and shall be deemed to have been automatically amended to carry out the intent
of this Section 5.

     

    6.           Representations and
Warranties.  Pledgors
hereby represent and warrant to Agent, jointly and severally, for the ratable
benefit of Lenders, as follows:

    (a)           The
execution, delivery and performance by each Pledgor of this Agreement and each
Pledgor’s performance of its obligations under this Agreement (i) are
within its corporate, company or partnership power, (ii) have been duly
authorized by the board of directors, board of managers, general partner,
managing member or other applicable governing body of such Pledgor, and no other
corporate or company action on the part of any Pledgor is necessary to authorize
this Agreement, (iii) do not require action by, or filing with, any
Governmental Authority or any action by any other Person (other than any action taken
or filing made on or before the Closing Date), (iv) do not violate any
provision of any Pledgor’s organizational documents, (v) do not violate any
material provision of Law or any order of any Governmental Authority, in each
case applicable to any Pledgor, (vi) do not materially violate, or
constitute a material breach of, any material agreements to which it is a party
(and no default exists on the part of such Pledgor under any agreement to which
it is a party), and (vii) will not result in the creation or imposition of
any Lien on any asset of any Pledgor other than Liens in favor of Agent and
Permitted Liens.

     

    
      
        
           

        

        
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    (b)           This
Agreement has been duly executed and delivered by each Pledgor and constitutes
the legal, valid, and binding obligation of such Pledgor, enforceable against
such Pledgor in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, fraudulent conveyance, and similar
laws affecting creditors’ rights generally and by general principles of equity
(whether considered in a proceeding in equity or at law), and except to the
extent the indemnification provisions contained herein may be limited by
applicable federal or state securities laws.

     

    (c)           Each
Pledgor has received and will receive the benefits of the Term Loan, and such
benefits constitute good and valuable consideration for the Security
Interest.

     

    (d)           The
Pledged Interests are duly authorized, validly issued, fully paid and
non-assessable, and transfer thereof is not subject to any restrictions other
than restrictions imposed by applicable securities and corporate
laws.

     

    (e)           Each
Pledgor owns the Collateral contained in attached Schedule 1
(as indicated with respect to such Pledgor on attached Schedule
1) free and clear of all Liens except for the Liens created
hereunder.

     

    (f)           The
information contained in attached Schedule 1
is true and accurate and sufficiently describes all of the
Collateral.

     

    (g)           Each
Pledgor has reviewed this Agreement and the other Loan Documents and has had the
opportunity to review its rights and responsibilities thereunder with
counsel.  Each Pledgor understands these rights and responsibilities
and shall comply fully therewith.

     

    (h)           Each
Pledgor represents and warrants that Agent has a perfected first priority
security interest in all uncertificated Pledged Interests pledged by it
hereunder.

     

    7.           Covenants.  Pledgors
shall:

     

    (a)           Promptly
notify Agent of any material change in any fact or circumstances represented or
warranted by any Pledgor with respect to any of the Collateral.

     

    (b)           Promptly
notify Agent of any Equity Securities of any Person that are acquired by any
Pledgor subsequent to the execution of this Agreement.

     

    (c)           Promptly
notify Agent of any claim, action or proceeding materially affecting the
security interest granted and the pledge and assignment made under Section 3
or title to any of the Collateral and, at the request of Agent, appear in and
defend, at Pledgors’ expense, any such action or proceeding.

     

    
      
        
          
          

        

        
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    (d)          Not
sell, assign or otherwise dispose of any Collateral, except as permitted in the
Loan Agreement.

     

    (e)          Not
create, incur or suffer to exist any other Lien upon any of the
Collateral.

     

    (f)           At
Pledgors’ expense and Agent’s reasonable request, file or cause to be filed such
applications and take such other actions to obtain the consent or approval of
any Governmental Authority to Agent’s rights hereunder, including, without
limitation, the right to sell all the Collateral upon a Default without
additional consent or approval from such Governmental Authority (and, because
each Pledgor agrees that Agent’s remedies at law for failure of Pledgors to
comply with this provision would be inadequate and that such failure would not
be adequately compensable in damages, each Pledgor agrees that its covenants in
this provision may be specifically enforced).

     

    (g)           From
time to time promptly execute and deliver to Agent all such other Equity Powers,
assignments, certificates, supplemental documents, and financing statements (if
appropriate) and amendments thereto, and do all other acts or things as Agent
may reasonably request in order to more fully create, evidence, perfect,
continue and preserve the priority of the Security Interest.

     

    (h)           Each
Pledgor hereby agrees that if any of the Pledged Interests are at any time not
evidenced by certificates of ownership, then Pledgors shall cause the issuer of
such Pledged Interests to record such pledge on the equityholder register or the
books of the issuer and, upon Agent’s request, shall cause the issuer to execute
and deliver to Agent an acknowledgment of the pledge of such Pledged Interests
in a form reasonably satisfactory to Agent.

     

    8.           Default;
Remedies.  Should
a Default occur and be continuing, Agent may, at its election, exercise any and
all rights available to a secured party under the UCC, in addition to any and
all other rights afforded by the Loan Documents, at law, in equity, or
otherwise, including, without limitation, exercising any or all Equity Powers
delivered to Agent with respect to the Pledged Interests or applying by
appropriate judicial proceedings for appointment of a receiver for all or part
of the Collateral (and each Pledgor hereby consents to any such
appointment).

     

    9.           Notice.  Reasonable
notification of the time and place of any public sale of the Collateral, or
reasonable notification of the time after which any private sale or other
intended disposition of the Collateral is to be made, shall be sent to Pledgors
and to any other person entitled to notice under the UCC; provided, that if any of the Collateral
threatens to decline speedily in value or is of the type customarily sold on a
recognized market, Agent may sell or otherwise dispose of the Collateral without
notification, advertisement, or other notice of any kind.  It is
agreed that notice sent or given not less than ten (10) calendar days prior to
the taking of the action to which the notice relates is reasonable for the
purposes of this Section
9.

     

    
      
        
           

        

        
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    10.         Sales of
Securities.  Each
Pledgor recognizes that the Agent may deem it impracticable to effect a public
sale of all or any part of the Pledged Interests or any other securities
constituting Collateral.  Agent is authorized, but not obligated, to
limit prospective purchasers to the extent deemed necessary or desirable by
Agent to render such sale exempt from the registration requirements of the
Securities Act, and any applicable state securities laws, and no sale so made in
good faith by Agent shall be deemed not to be “commercially reasonable” because
so made.  Agent may make one or more private sales of any such
securities to a restricted group of purchasers who will be obligated to agree,
among other things, to acquire such securities for their own account, for
investment and not with a view to the distribution or resale
thereof.  Each Pledgor acknowledges that any such private sale may be
at prices and on terms less favorable to the seller than the prices and other
terms which might have been obtained at a public sale and, notwithstanding the
foregoing, agrees that such private sales shall be deemed to have been made in a
commercially reasonable manner and that the Agent shall have no obligation to
delay the sale of any such securities for the period of time necessary to permit
the issuer of such securities to register such securities for public sale under
the Securities Act.  Each Pledgor further acknowledges and agrees that
any offer to sell such securities which has been (i) publicly advertised on
a bona fide basis in a newspaper or other publication of general circulation in
the financial community of New York, New York (to the extent that such an offer
may be so advertised without prior registration under the Securities Act) or
(ii) made privately in the manner described above to not less than fifteen (15)
bona fide offerees
shall be deemed to involve a “public disposition” for the purposes of Section
9-610(c) of the UCC, notwithstanding that such sale may not constitute a “public
offering” under the Securities Act, and that the Agent and/or any Lender or
Lenders may, in such event, bid for the purchase of such
securities.

     

    11.         Application of
Proceeds.  Agent
shall apply the proceeds of any sale or other disposition of the Collateral in
the following order:  first, to the payment
of all its expenses incurred in retaking, holding and preparing any of the
Collateral for sale(s) or other disposition, in arranging for such sale(s) or
other disposition, and in actually selling or disposing of the same (all of
which are part of the Obligation); second, toward
repayment of amounts expended by Agent or any other Lender under this Agreement;
and third, toward payment
of the balance of the Obligation in accordance with the Loan
Agreement.  Any surplus remaining shall be delivered to Pledgors or as
a court of competent jurisdiction may direct.  If the proceeds are
insufficient to pay the Obligation in full, Pledgors shall remain liable for any
deficiency.

     

    12.         Other Rights of
Agent.

     

    (a)           Performance.  In
the event any Pledgor shall fail to perform any of its obligations hereunder
with respect to the Collateral, then Agent may, at its option, but without being
required to do so, take such action which such Pledgor is required, but has
failed or refused, to take.  Any sum which may be expended or paid by
Agent under this Section 12(a)
(including, without limitation, court costs and attorneys’ fees) shall
bear interest from the dates of expenditure or payment at the Maximum Rate (as
defined in the Loan Agreement) until paid and, together with such interest,
shall be payable by Pledgors upon demand and shall be part of the
Obligation.

     

    
      
        
           

        

        
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    (b)           Collection.  Upon
notice from Agent, each Person obligated with respect to any of the Collateral,
whether as an issuer, account debtor or otherwise (an “Obligor”)
is hereby authorized and directed by each Pledgor to make payments on any of the
Collateral (including, without limitation, dividends and other distributions)
directly to Agent, regardless of whether such Pledgor was previously making
collections thereon.  Subject to Section
12(e) hereof, until such notice is given, each Pledgor is authorized to
retain and expend all payments made on Collateral.  Agent shall have
the right in its own name or in the name of a Pledgor to compromise or extend
time of payment with respect to all or any portion of the Collateral for such
amounts and upon such terms as Agent may determine; to demand, collect, receive,
receipt for, sue for, compound and give acquittances for any and all amounts due
or to become due with respect to Collateral; to take control of cash and other
proceeds of any Collateral; to endorse the name of any Pledgor on any notes,
acceptances, checks, drafts, money orders or other evidences of payment on
Collateral that may come into the possession of Agent; to send requests for
verification of obligations to any Obligor; and to do all other acts and things
necessary to carry out the intent of this Agreement.  If any Obligor
fails or refuses to make payment on any Collateral when due, Agent is
authorized, in its sole reasonable discretion, either in its own name or in the
name of a Pledgor, to take such action as Agent shall deem appropriate for the
collection of any such amounts.  The foregoing rights granted to Agent
under this Section 12(b)
may only be exercised while a Default has occurred and is
continuing.  Regardless of any other provision hereof, neither Agent
nor any Lender shall ever be liable for its failure to collect, or for its
failure to exercise diligence in the collection of, any amounts owed with
respect to Collateral, nor shall Agent be under any duty whatsoever to anyone
except Pledgors to account for funds that Agent shall actually receive
hereunder.  Without limiting the generality of the foregoing, Agent
shall have no responsibility for ascertaining any maturities, calls,
conversions, exchanges, offers, tenders or similar matters relating to any
Collateral, or for informing Pledgors with respect to any of such matters
(irrespective of whether Agent actually has, or may be deemed to have, knowledge
thereof).  The receipt of Agent to any Obligor shall be a full and
complete release, discharge and acquittance to such Obligor, to the extent of
any amount so paid to Agent.

     

    (c)           Record Ownership of
Securities.  When a Default has occurred and is continuing,
Agent at any time may have the Collateral registered in its name, or in the name
of its nominee or nominees, as pledgee.  Each Pledgor shall execute
and deliver to Agent all such proxies, powers of attorney, dividend coupons or
orders and other documents as Agent may reasonably request for the purpose of
enabling Agent to exercise the voting rights and powers which it is entitled to
exercise hereunder and to receive the dividends and other payments which it is
authorized to receive and retain hereunder.  Nothing in this Agreement
shall prohibit the issuance of cash dividends by any Borrower if such
distribution is permitted under the Loan Agreement.

     

    (d)           Voting of
Securities.  So long as no Default has occurred and is then
continuing, Pledgors shall be entitled to exercise all voting rights pertaining
to the Collateral.  After the occurrence and during the continuance of
a Default, the right to vote the Collateral shall be vested exclusively in
Agent.  To this end, each Pledgor irrevocably appoints Agent the proxy
and attorney-in-fact of such Pledgor, with full power of substitution, to vote
and to act with respect to the Collateral, subject to the understanding that
such proxy may not be exercised unless a Default has occurred and is
continuing.  The proxy herein granted is coupled with an interest, is
irrevocable, and shall continue until the Obligation has been paid and performed
in full.

     

    
      
        
           

        

        
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    (e)           Certain
Proceeds.  Any and all stock dividends or distributions in
property made on or in respect of the Collateral, and any proceeds of the
Collateral, whether such dividends, distributions, or proceeds result from a
subdivision, combination or reclassification of the outstanding capital stock of
any Person or as a result of any merger, consolidation, acquisition or other
exchange of assets to which any Pledgor may be a party, or otherwise, shall be
part of the Collateral hereunder, shall, if received by a Pledgor or Pledgors,
be held in trust for the benefit of Agent, and shall, except to the extent
consisting of cash proceeds, forthwith be delivered to Agent (accompanied by
proper instruments of assignment and/or stock and/or bond powers executed by the
Pledgor in accordance with Agent’s instructions) to be held subject to the terms
hereof.  Prior to the occurrence and continuation of a Default, any
cash proceeds of Collateral which come into the possession of Agent may, at
Pledgors’ option, be applied in whole or in part to the Obligation, or be
released in whole or in part to or on the written instructions of Pledgors for
any general or specific purpose not in violation of the Loan Agreement, or be
retained in whole or in part by Agent as additional Collateral.  Upon
the occurrence and during the continuance of a Default, any cash proceeds of
Collateral shall be applied to the Obligation.

     

    (f)           Financing
Statements.  Each Pledgor hereby irrevocably authorizes Agent
at any time, and from time to time, to file in any jurisdiction any initial
financing statements and amendments thereto that (i) (A) indicate the Collateral
as “the Collateral described in the Pledge Agreement,” (B) describe the
Collateral in terms similar to those used in Section 3, or (C) otherwise
describe the Collateral as being of an equal or lesser scope or with greater
detail, regardless of whether any particular asset comprised in the Collateral
falls within the scope of Article 9 of the UCC of the jurisdiction wherein such
financing statement or amendment is filed, and (ii) contain any other
information required by Article 9 of the UCC of the jurisdiction wherein such
financing statement or amendment is filed regarding the sufficiency or filing
office acceptance of any financing statement or amendment.  Each
Pledgor further ratifies and affirms its authorization for any financing
statements and/or amendments thereto that Agent has filed in any jurisdiction
prior to the date of this Agreement.

     

    13.         Arbitration.  The
parties acknowledge and agree that this Agreement is a Loan Document, and that
the arbitration provisions of the Loan Agreement shall apply to all disputes,
claims and controversies arising out of this Agreement.

     

    14.         Miscellaneous.

     

    (a)           Term.  Upon
full and final payment of the Obligation and final termination of Lenders’
commitment to lend under the Loan Agreement without Agent having exercised its
rights under this Agreement, this Agreement shall terminate; provided, that no Obligor on any of
the Collateral shall be obligated to inquire as to the termination of this
Agreement, but shall be fully protected in making payment directly to
Agent.

     

    (b)           Notice.  Any
notice or communication required or permitted under this Agreement must be given
as prescribed in the Loan Agreement.

     

    
      
        
           

        

        
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    (c)           Governing
Law.  This Agreement is to be construed, and its performance
enforced, under New York law, without regard to conflict of law
principles.

     

    (d)           Loan
Agreement.  In the event of any conflict or inconsistency
between the terms hereof and the Loan Agreement, the terms of the Loan Agreement
shall control.

     

    (e)           Multiple Counterparts and
Facsimile Signatures.  This Agreement may be executed in any
number of counterparts with the same effect as if all signatories had signed the
same document.  All counterparts must be construed together to
constitute one and the same instrument.  This Agreement may be
transmitted and signed by electronic mail and facsimile, and (.pdf) and
facsimile copies of manually-signed originals shall have the same effect as
manually-signed originals and shall be binding on Pledgors and
Agent.

     

    (f)           Binding Effect;
Survival.  This Agreement is binding upon, and inures to the
benefit of, the parties hereto and their respective successors and permitted
assigns.  Unless otherwise provided, all covenants, agreements,
indemnities, representations and warranties made in any of the Loan Documents
survive and continue in effect as long as the Obligation is outstanding or the
Lenders’ commitment to lend under the Loan Agreement is in effect.

     

    (g)           Amendments.  This
Agreement may be amended, modified, supplemented or be the subject of a waiver
only by a writing executed by Agent and Pledgors.

    (h)           Entirety.  THIS AGREEMENT, THE LOAN AGREEMENT
AND THE OTHER LOAN DOCUMENTS (AS DEFINED IN THE LOAN AGREEMENT), INCLUDING BUT
NOT LIMITED TO, THE PROVISIONS RELATING TO GOVERNING LAW, JURY WAIVER, VENUE,
SERVICE OF PROCESS, AND ARBITRATION, REPRESENT THE FINAL AGREEMENT AMONG THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
SUBSEQUENT ORAL AGREEMENTS AMONG THE PARTIES.  THERE ARE NO UNWRITTEN
ORAL AGREEMENTS AMONG THE PARTIES.

     

    [Signatures appear on the following
pages.]

     

    
      
        
           

        

        
          10

          
            

          

        

        
           

        

      

    

    IN
WITNESS WHEREOF, the parties have executed and delivered this Pledge Agreement
as of the date first written above.

     

    
      
        
          
            	 
      	
                    AGENT:

                  
	 
      	 
      
	 
      	
                    Deerpath
      Funding, LP

                  
	 
      	
                    a
      Delaware limited partnership,

                  
	 
      	
                    as
      Agent

                  
	 
      	 
      
	 
      	
                    By:

                  	
                    Deerpath
      Funding General Partner, Inc.,

                  
	 
      	 
      	
                    its
      general partner

                  
	 
      	 
      	 
      
	 
      	
                    By:

                  	
                    /s/ James H. Kirby

                  
	 
      	
                    Name:    
      James H. Kirby

                  
	 
      	
                    Title:      
      President

                  

          

        

      

    

     

    [Signature
Page 1 of 2 to Pledge Agreement]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          
            	 
      	
                    PLEDGORS:

                  
	 
      	 
      
	 
      	
                    Oak
      Tree Educational Partners, Inc.

                  
	 
      	
                    a
      Delaware corporation

                  
	 
      	 
      
	 
      	
                    By:

                  	
                    /s/ Joseph J. Bianco

                  
	 
      	
                    Name:    
      Joseph J. Bianco

                  
	 
      	
                    Title:      
      Chief Executive Officer

                  
	 
      	 
      	 
      
	 
      	
                    Educational
      Investors, Inc.

                  
	 
      	
                    a
      Delaware corporation

                  
	 
      	 
      	 
      
	 
      	
                    By:

                  	
                    /s/ Joseph J. Bianco

                  
	 
      	
                    Name:    
      Joseph J. Bianco

                  
	 
      	
                    Title:      
      Chief Executive Officer

                  
	 
      	 
      	 
      
	 
      	
                    Educational
      Training Institute, Inc.

                  
	 
      	
                    a
      New York corporation

                  
	 
      	 
      	 
      
	 
      	
                    By:

                  	 /s/ Joseph Monaco 
      
	 
      	
                    Name:    
      Joseph Monaco

                  
	 
      	
                    Title:      
      President

                  

          

        

      

    

     

    [Signature
Page 2 of 2 to Pledge Agreement]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
1

    Pledged
Interests

     

    
      
        
          	
                  Pledgor

                	 
      	
                  Issuer

                	 
      	
                  Pledged Interests

                
	
                  Oak
      Tree Educational Partners, Inc.

                	 
      	
                  Educational
      Investors, Inc.

                	 
      	
                  1,000
      shares (100% of capital stock)

                
	
                  Oak
      Tree Educational Partners, Inc.

                	 
      	
                  Educational
      Training Institute, Inc.

                	 
      	
                  100
      shares (100% of capital stock)

                
	
                  Educational
      Investors, Inc.

                	 
      	
                  Valley
      Anesthesia, Inc.

                	 
      	
                  1,000
      shares (100% of capital stock)

                
	
                  Educational
      Investors, Inc.

                	 
      	
                  Training
      Direct, LLC

                	 
      	
                  100%
      of the

                  membership
      interests

                
	
                  Educational
      Training Institute, Inc.

                	 
      	
                  Culinary
      Tech Center LLC

                	 
      	
                  100%
      of the

                  membership
      interests

                
	
                  Educational
      Training Institute, Inc.

                	
                    

                	
                  Professional
      Culinary Institute LLC

                	
                    

                	
                  100%
      of the

                  membership
      interests

                

        

      

    

     

    [Schedule
1]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ANNEX
A

    TO

    PLEDGE
AGREEMENT

     

    FORM OF
EQUITY POWER

     

    (See
attached.)

     

    Annex A
to Pledge Agreement

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EQUITY
POWER

     

    FOR VALUE
RECEIVED, the undersigned does hereby sell, assign and transfer unto
____________________________________, (________) ______________________ of
_____________________, a __________________ (the “Company”),
registered in its name on the books of the Company, and does hereby irrevocably
constitute and appoint ____________________________ as its attorney to transfer
said shares on the books of the Company with full power of substitution in the
premises.

     

    Dated:
_______________,_____

    

    
      
        
          
            
              
                
                  	 
      	 
      	 
      
	 
      	
                          a
      _______________________

                        
	 
      	 
      	 
      
	 
      	
                          By:

                        	 
      
	 
      	
                          Name:

                        	 
      
	 
      	
                          Title:

                        	 
      

                

              

            

          

        

      

    

    

    IN THE
PRESENCE OF

    

    
      
        
          	 
      	 
      
	
                  [WITNESS]

                	 
      

        

      

    

    

    Annex A
to Pledge AgreementSUBORDINATION
AND INTERCREDITOR AGREEMENT

     

    THIS
SUBORDINATION AND INTERCREDITOR AGREEMENT (this “Agreement”)
dated November 30, 2010 (the “Closing
Date”), is by and among Valley
Anesthesia Educational Programs, Inc., an Iowa corporation (together with
its successors and assigns who may hold Subordinated Debt from time to time,
collectively, “Subordinated
Lender” or “Valley
Seller”), Valley
Anesthesia, Inc., a Delaware corporation (“Borrower”),
and Deerpath
Funding, LP, a Delaware limited partnership (“Deerpath”
or “Agent”
and, collectively with Deerpath and any other Lenders and their respective
successors or assigns who may hold Senior Debt from time to time, “Senior
Lender”).

     

    RECITALS:

     

    A.          Borrower
and Senior Lender are parties to that certain Loan Agreement dated the date
hereof (as amended, supplemented or restated from time to time, the “Senior Loan
Agreement”), by and among Oak Tree Educational Partners, Inc., a Delaware
corporation formerly known as Florham Consulting Corp., Borrower and their
respective subsidiaries, current and future, as borrowers, Deerpath and the
other lenders from time to time party thereto, as lenders (the “Lenders”),
and Deerpath, as administrative agent and collateral agent for itself and the
other lenders, pursuant to which Senior Lender has agreed to make the Term Loan
(as defined in the Senior Loan Agreement) to Borrower.

     

    B.          Borrower
and Subordinated Lender are parties to that certain Agreement of Purchase of
Assets dated August 20, 2009 (the “Purchase
Agreement”), pursuant to which, among other things, Borrower purchased
and acquired all of the Purchased Assets (as defined in the Purchase Agreement)
subject to the terms and conditions set forth therein.

     

    C.          Pursuant
to the Purchase Agreement, Subordinated Lender agreed to finance a portion of
the purchase price under the Purchase Agreement, and Borrower executed and
delivered that certain Six Year Term Note dated as of August 20, 2009, made
payable to Subordinated Lender in the initial principal amount of $2,000,000 (as
amended, supplemented, replaced or restated from time to time, the “Subordinated
Note”).

     

    D.          In
connection with this Agreement, Borrower and its affiliates and Subordinated
Lender are entering into that certain Amended and Restated Security Agreement
dated as of the date hereof (as amended, supplemented, replaced or restated from
time to time, the “Subordinated
Security Agreement”), which amends and restates in its entirety the
Security Agreement dated as of August 20, 2009, entered into by Borrower and
Subordinated Lender in connection with the Subordinated Note, and pursuant to
which Borrower granted a security interest in its assets to Subordinated Lender
to secure the Subordinated Note.

     

    E.           As
an inducement and a condition to Senior Lender entering into the Senior Loan
Agreement with Borrower, Senior Lender has required that Subordinated Lender and
Borrower enter into this Agreement to subordinate the rights and remedies of
Subordinated Lender under the Subordinated Debt Documents to the rights and
remedies of Senior Lender under the Senior Debt Documents.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    AGREEMENTS:

     

    In
consideration of the mutual covenants and promises of this Agreement, and for
other consideration, the receipt and adequacy of which are hereby acknowledged,
Borrower, Subordinated Lender, and Senior Lender agree as follows:

     

    1.      Definitions As
used in this Agreement,

     

    Agreement
has the meaning set forth in the introductory paragraph
hereto.

     

    Bankruptcy
Code means Title 11 of the United States Code, as amended from time to
time.

     

    Borrower
has the meaning set forth in the introductory paragraph
hereto.

     

    Business
Day means any day which is not a Saturday, Sunday, or other day on which
commercial banks in Houston, Texas are authorized or obligated to
close.

     

    Closing Date
has the meaning set forth in the introductory paragraph
hereto.

     

    Collateral
has the meaning set forth in the Senior Loan Agreement.

     

    Debt means
(without duplication), for any Person, (a) all obligations required by GAAP to
be classified upon such Person’s balance sheet as liabilities, (b) liabilities
to the extent secured (or for which and to the extent the holder of the Debt has
an existing Right, contingent or otherwise, to be so secured) by any Lien
existing on property owned or acquired by that Person, (c) capital leases and
other obligations that have been (or under GAAP should be) capitalized for
financial reporting purposes, and (d) all guaranties, endorsements, and other
contingent liabilities with respect to Debt or obligations of
others.

     

    Debtor Relief
Laws means the Bankruptcy Code and all other applicable liquidation,
conservatorship, bankruptcy, fraudulent transfer, moratorium, rearrangement,
receivership, insolvency, reorganization, suspension of payments, or similar
Laws in effect from time to time affecting the Rights of creditors generally, as
in effect from time to time and as hereafter amended.

     

    Default
means a default or event of default (after any applicable grace period) under
the Senior Debt Documents or the Subordinated Debt Documents, as
applicable.

     

    GAAP means
generally accepted accounting principles in the United States set out in the
opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or such other principles as may be
approved by a significant segment of the accounting profession in the United
States, that are applicable to the circumstances as of the date of
determination, consistently applied.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Governmental
Authority means any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body,
court, administrative tribunal, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or
functions of or pertaining to government and includes a private mediation or
arbitration board or panel.

     

    Laws means
all applicable present and future federal, state, local and foreign statutes,
laws, treaties, ordinances, rules, regulations, orders, writs, injunctions,
decrees, judgments, and the terms of any license or permit issued by any
Governmental Authority.

     

    Lenders
has the meaning set forth in the Recitals.

     

    Lien means
any lien, mortgage, security interest, collateral assignment, pledge,
assignment, charge, title retention agreement, or encumbrance of any kind, and
any other Right of or arrangement with any creditor (whether based on common
law, constitutional provision, statute or contract) to have its claim satisfied
out of any property or assets, or their proceeds, before the claims of general
creditors of the owner of the property or assets.

     

    Obligation
has the meaning set forth in the Senior Loan Agreement.

     

    Payment Blockage
Notice means a written notice from Senior Lender to Borrower and
Subordinated Lender that a Default exists under the Senior Debt Documents and
that Senior Lender is invoking a Payment Blockage Period.

     

    Payment Blockage
Period means the period commencing on the date of a Default specified in
a Payment Blockage Notice and ending on the earliest to occur of (a) six (6)
months following the date of the Payment Blockage Notice, (b) six (6) months
following the date such Payment Blockage Period was deemed to exist pursuant to
Section
4(g), (c) the date on which Subordinated Lender has been given or
receives from Senior Lender (or its representative) written notice that the
Payment Blockage Period has ended, (d) the date on which such Default is cured
(as acknowledged by Senior Lender in writing) or waived in writing by Senior
Lender in accordance with the Senior Debt Documents, or (e) the date, if any, on
which the Senior Debt is paid in full and the Senior Loan Agreement has been
terminated.  A Payment Blockage Period is also deemed to exist during
certain times regardless of whether or not a Payment Blockage Notice has been
issued, as set forth in Section
4(g).

     

    Person
means any individual, partnership, limited partnership, corporation, limited
liability company, business trust, joint stock company, trust, unincorporated
association, joint venture, syndicate, Governmental Authority or other entity or
organization.

     

    Potential
Default means the occurrence of any event or the existence of any
circumstance that would, with the giving of notice or lapse of time or both,
become a Default.

     

    Proceeding
means any voluntary or involuntary insolvency, bankruptcy, receivership,
custodianship, liquidation, dissolution, reorganization, assignment for the
benefit of creditors, appointment of a custodian, receiver, trustee or other
officer with similar powers or any other proceeding for the liquidation,
dissolution or other winding up of a Person.

     

    Purchase
Agreement has the meaning set forth in the Recitals.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Purchased Assets
has the meaning set forth in the Purchase Agreement.

     

    Remedy Blockage
Notice means a written notice from Senior Lender to Borrower and
Subordinated Lender invoking a Remedy Blockage Period based on a Default under
the Subordinated Debt Documents.

     

    Remedy Blockage
Period means the period commencing on the date of a Default specified in
a Remedy Blockage Notice and ending on the earliest to occur of (a) six (6)
months following the date of the Remedy Blockage Notice, (b) six (6) months
following the date such Remedy Blockage Period was deemed to exist pursuant to
Section
5(f), (c) the date on which Subordinated Lender receives from Senior
Lender (or its representative) written notice that the Remedy Blockage Period
has ended, (d) the date on which such Default under the Subordinated Debt
Documents is cured or waived (as acknowledged by Subordinated Lender in writing
delivered to Senior Lender and Borrower), or (e) the date, if any, on which the
Senior Debt is paid in full and the Senior Loan Agreement has been
terminated.  A Remedy Blockage Period is also deemed to exist during
certain times regardless of whether or not a Remedy Blockage Notice has been
issued, as set forth in Section
5(f).

     

    Reorganization
Subordinated Securities means any debt or equity securities of Borrower
or any other Person that are distributed to Subordinated Lender in respect of
the Subordinated Debt owing to Subordinated Lender pursuant to a confirmed plan
of reorganization.

     

    Right or
Rights
means rights, remedies, powers, privileges and benefits.

     

    Senior
Debt means and, solely for purposes of this Agreement, shall be limited
to the sum of (a) a maximum of $10,000,000 in principal amount of the
“Obligation” under and as defined in the Senior Loan Agreement (or such lesser
amount as may constitute the Obligation), plus (b) all interest, fees and
expenses payable to the Senior Lender with respect such $10,000,000 maximum
principal amount of the Obligation, now or hereafter owing by Borrower to Senior
Lender.  For purposes of this Agreement, any and all payments,
credits, or offsets under or on account of any Obligation of the Borrowers under
the Senior Debt Documents shall be deemed to be applied first to Senior Debt, as
defined herein.

     

    Senior Debt
Documents means the Senior Loan Agreement and all “Loan Documents” (as
defined in the Senior Loan Agreement) and all notes, security documents,
guaranties, and other documents executed in connection with the Senior Loan
Agreement.

     

    Senior Lender
has the meaning set forth in the introductory paragraph
hereto.

     

    Senior Loan
Agreement has the meaning set forth in the Recitals.

     

    Senior Secured
Credit Facility means and includes any Debt of Borrower, including but
not limited to Debt which has refinanced, renewed, replaced or extended all or
any portion of the Senior Debt or a commercial bank credit facility entered into
after the date hereof, which was given senior secured status and approved by
Senior Lender.

     

    Senior Secured
Lender means the lender or lenders under, or the holder or holders of,
any Senior Secured Credit Facility.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Senior Secured
Subordination Agreement has the meaning set forth in Section
11(a).

     

    Subordinated
Debt means all principal, interest (including interest accrued after the
commencement of any Proceeding), Valley Earn-Out Payments, fees, expenses and
other payments and obligations now or hereafter owing under or in respect of the
Subordinated Debt Documents.

     

    Subordinated Debt
Documents means (a) the Subordinated Note and any other promissory note
issued by Borrower in exchange for or replacement of the Subordinated Note, (b)
the Subordinated Security Agreement, (c) Sections 1.02(c) and 1.02(d) of the
Purchase Agreement and (d) subject to Section 8,
(i) any loan agreement, security agreement, guaranty or other agreement or
instrument now or hereafter entered into in connection therewith, and (ii) any
amendments or modifications to any of the foregoing.

     

    Subordinated
Lender has the meaning set forth in the introductory paragraph
hereto.

     

    Subordinated
Note has the meaning set forth in the Recitals.

     

    Subordinated
Security Agreement has the meaning set forth in the
Recitals.

     

    Valley Earn-Out
Payments means the earn-out payments required to be made by Subordinated
Lender to the Valley Seller pursuant to Sections 1.02(c) and 1.02(d) of the
Purchase Agreement.

     

    Valley Permitted
Payments has the meaning set forth in the Senior Loan
Agreement.

     

    2.      Subordination.

     

    (a)         The
Subordinated Debt, the Subordinated Debt Documents and all of Subordinated
Lender’s Rights thereunder are expressly subordinate and junior to the Senior
Debt, the Senior Debt Documents (to the extent of the Senior Debt defined
herein) and all of Senior Lender’s Rights (to the extent of the Senior Debt
defined herein) thereunder.  For purposes of this Section
2(a), the term “subordinate” means that, unless and until the Senior Debt
has been paid in full in cash and all of Senior Lender’s commitments to extend
credit under the Senior Debt Documents have terminated:

     

    (i)           the
payment of the Subordinated Debt is expressly subordinated to the prior payment
in full in cash of all Senior Debt outstanding from time to time;

     

    (ii)         Subordinated
Lender may not demand, receive or accept any payment in respect of the
Subordinated Debt (including, without limitation, scheduled payments,
reimbursement payments, and mandatory and voluntary prepayments);

     

    (iii)         Borrower
may not make, give or permit  payment of, or on account of, the
Subordinated Debt (including, without limitation, scheduled payments,
reimbursement payments, and mandatory and voluntary
prepayments);

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (iv)         Borrower
and Subordinated Lender will not permit any credit against or offset of the
Subordinated Debt unless approved in advance in writing by Senior Lender; provided, that, Borrower may
exercise its Rights to offset the Subordinated Note for amounts due to Borrower
under the Purchase Agreement; and

     

    (v)         subject
to the terms of any amendment to this Agreement or any other subordination
agreement entered into pursuant to Section
11, Senior Lender shall have a first priority Lien on all assets of
Borrower to secure the Senior Debt, and such Lien shall at all times be senior
to any Lien granted to Subordinated Lender to secure the Subordinated
Debt.

     

    (b)         Subject
to the terms of any amendment to this Agreement or any other subordination
agreement entered into pursuant to Section
11, all cash proceeds from any sale, exchange, casualty, destruction,
condemnation, foreclosure, or other disposition of any assets of Borrower that
are subject to a Lien in favor of Senior Lender or Subordinated Lender shall be
applied first to satisfy the Senior Debt in full, and second to satisfy the
Subordinated Debt, and Borrower, Subordinated Lender and Senior Lender hereby
agree to make all necessary transfers among themselves with respect to such
amounts to effect such application.

     

    (c)         Subordinated
Lender will hold for the benefit of Senior Lender, and pay over to Senior
Lender, in the form received (with any necessary endorsements), to be applied to
the Senior Debt, any and all monies, dividends or other assets received in
violation of this Section 2,
specifically including any such monies, dividends or other assets received after
the commencement of any Proceeding.

     

    (d)         At
its option, Senior Lender may take or omit to take any action or assert any
claim with respect to the Senior Debt, or any Person primarily or secondarily
liable thereon, or foreclose or realize upon or enforce any of its Rights with
respect to Borrower’s assets subject to its Lien, without Subordinated Lender’s
consent.

     

    (e)         Subject
to the terms of any amendment to this Agreement or any other subordination
agreement entered into pursuant to Section
11, Subordinated Lender may have a subordinated Lien on the Purchased
Assets to secure the Subordinated Debt.  Any Lien in favor of
Subordinated Lender shall be fully subordinate to any and all Liens in favor of
Senior Lender which secure the Senior Debt.  Subordinated Lender and
Borrower agree to execute, at Borrower’s sole cost and expense (including
reimbursement of Subordinated Lender’s attorneys’ and consultants’ fees and
costs), any and all other instruments reasonably requested by Senior Lender to
further evidence the subordination of the Subordinated Debt (and the Liens in
favor of Subordinated Lender) to the Senior Debt (and the Liens in favor of
Senior Lender) as provided in this Agreement.

     

    (f)        
 Notwithstanding the foregoing to the contrary:

     

    (i)           if
no Payment Blockage Period is in effect, Borrower may make or pay when due and
payable, and Subordinated Lender may accept or receive:

     

    (A)           regularly
scheduled required payments (but not mandatory or voluntary prepayments except
with the prior written consent of Senior Lender) of principal and interest under
the Subordinated Debt, as set forth in the Subordinated Debt
Documents;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (B)           payments
to reimburse Subordinated Lender, as provided for herein or in the Subordinated
Debt Documents;

     

    (C)           Valley
Permitted Payments, as, when and to the extent permitted under the Senior Loan
Agreement; and

     

    (D)           Valley
Earn-Out Payments, as, when and to the extent earned and due and payable under
the Purchase Agreement.

     

    (ii)          if
a Payment Blockage Period is in effect, Borrower may not make or pay, and
Subordinated Lender may not accept or receive, any payment or reimbursement of
any nature in respect of the Subordinated Debt, or any offsets against the
principal and interest of the Subordinated Debt, until the Payment Blockage
Period ends; provided,
that, Borrower may exercise its Rights to offset the Subordinated Note
for amounts due to Borrower under the Purchase Agreement.

     

    3.      Notices of Default or
Potential Default.

     

    (a)         Borrower
is required to give immediate written notice to Senior Lender and Subordinated
Lender as soon as it becomes aware of a Default or a Potential Default under the
Senior Debt Documents or the Subordinated Debt Documents.

     

    (b)         Senior
Lender shall give written notice to Subordinated Lender of any Default under the
Senior Debt Documents, promptly after it becomes aware of such Default; provided, that, the failure
of Senior Lender to give such notice shall not (i) result in a waiver of any of
its Rights under this Agreement or the Senior Debt Documents, (ii) result in any
liability to any party to this Agreement, or (iii) limit or alter the effect of
Section
4(g) of this Agreement.

     

    (c)         Subordinated
Lender shall give written notice to Senior Lender of any Default under the
Subordinated Debt Documents, promptly after it becomes aware of such Default;
provided, that the
failure of Subordinated Lender to give such notice shall not (i) result in a
waiver of any of its Rights under this Agreement or the Subordinated Debt
Documents, (ii) result in any liability to any party to this Agreement, or (iii)
limit or alter the effect of Section
5(f) of this Agreement.

     

    4.      Payment Blockage
Period.

     

    (a)         Senior
Lender may issue a Payment Blockage Notice if a Default exists under the Senior
Debt Documents.

     

    (b)         Senior
Lender may issue any number of Payment Blockage Notices in respect of a Default
under the Senior Debt Documents.

     

    (c)         Senior
Lender may not issue a new Payment Blockage Notice during an existing Payment
Blockage Period.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (d)         Senior
Lender is not obligated to send a Payment Blockage Notice upon the occurrence of
a Default under the Senior Debt Documents, and Senior Lender may send a notice
of Default without invoking a Payment Blockage Period.

     

    (e)         Once
a Payment Blockage Period ends, to the extent permitted by Section 2,
Borrower may resume making, and Subordinated Lender may receive, regularly
scheduled principal and interest payments (but not mandatory or voluntary
prepayments except with the prior written consent of Senior Lender) in respect
of the Subordinated Debt (including, without limitation, those payments that
were suspended during the Payment Blockage Period) when due and payable,
together with any outstanding and past due interest payments, all as set forth
in the Subordinated Debt Documents; provided, that such payments
do not create a Default under the Senior Debt Documents.

     

    (f)          4(f)
Notwithstanding anything to the contrary in the Subordinated Debt Documents and
except as provided below, during a Payment Blockage Period, the failure of
Borrower to make any payment due in respect of the Subordinated Debt as a result
of the effect of this Agrement may not be the sole basis for Subordinated
Lender’s right, prior to the expiration of the Payment Blockage Period, to
(i) declare a Default under the Subordinated Note or any other Subordinated
Debt Document, and such failure to make a payment during the Payment Blockage
Period shall not constitute a Default under the Subordinated Note or any other
Subordinated Debt Document, or (ii) receive a penalty or default rate of
interest under the Subordinated Debt Documents; provided, however, that
following the expiration or termination of the Payment Blockage Period, all
accrued and unpaid payments due under the Subordinated Note or any other
Subordinated Debt Documents that have not been paid during the applicable
Payment Blockage Period shall be paid in full within thirty (30) days following
the expiration or termination of such Payment Blockage Period, unless and to the
extent that any such payment would result in a Default under the Senior Debt
Documents; and provided,
further that if Borrower fails to make such payments in full within
thirty (30) days following the expiration or termination of such Payment
Blockage Period, even if any such payment would have resulted in a Default under
the Senior Debt Documents, then Subordinated Lender shall have the right
thereafter to (i) declare a Default under the Subordinated Note and/or any
other Subordinated Debt Document, and (ii) receive a penalty or default rate of
interest under the Subordinated Debt Documents pursuant to the terms
thereof.

     

    (g)         A
Payment Blockage Period shall be deemed to exist (regardless of whether or not a
Payment Blockage Notice has been issued) with respect to any Default under the
Senior Debt Documents for a period of thirty (30) Business Days after the
occurrence of such Default, and such Payment Blockage Period will continue in
effect after such thirty (30) Business Day period if Senior Lender delivers a
Payment Blockage Notice to Subordinated Lender.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5.      Remedy Blockage
Period.

     

    (a)         Except
as permitted by Section 7,
during a Remedy Blockage Period, Subordinated Lender may not do any of the
following:  (i) demand, sue for or take from or on behalf of Borrower,
by set-off (other than by exercise of Borrower’s Rights to offset the
Subordinated Note for amounts due to Borrower under the Purchase Agreement) or
in any other manner any moneys which may then or thereafter be owing by Borrower
in respect of the Subordinated Debt, (ii) commence, or join with any Person in
commencing, any suit, action or proceeding against Borrower (A) to enforce
payment of or to collect all or any portion of the Subordinated Debt, or (B) to
commence judicial enforcement of any of its Rights under the Subordinated Debt
Documents or applicable Law, (iii) accelerate the principal of or interest
on or any other amount under the Subordinated Debt, (iv) commence, or join
with any Person in commencing, against Borrower or any of its property a
Proceeding under any Debtor Relief Law, or (v) assert or attempt to enforce any
Liens or any other pre-judgment or post-judgment Liens or assert any Rights in
the assets of Borrower, or otherwise foreclose or realize upon any of the assets
of Borrower

     

    (b)         Senior
Lender may issue a Remedy Blockage Notice if a Default exists under the
Subordinated Debt Documents.

     

    (c)         Senior
Lender may issue any number of Remedy Blockage Notices in accordance with the
provisions of this Section
5.

     

    (d)         Senior
Lender may not issue a Remedy Blockage Notice during a Remedy Blockage
Period.

     

    (e)         Senior
Lender may not issue a Remedy Blockage Notice, nor shall a Remedy Blockage
Period be deemed to exist under Section
5(f), with respect to a Default under the Subordinated Debt Documents
solely as a result of the effect of this Agreement, including a Default
resulting from the failure of Borrower to make any payment under the
Subordinated Note during a Payment Blockage Period.

     

    (f)          A
Remedy Blockage Period shall be deemed to exist (regardless of whether or not a
Remedy Blockage Notice has been issued) with respect to any Default under the
Subordinated Debt Documents until such time as (i) Senior Lender has been given
written notice from Subordinated Lender specifying such Default and including
the details attendant thereto, and (ii) a period of ten (10) Business Days
has expired from the date of Senior Lender was given  such notice
without Senior Lender delivering a Remedy Blockage Notice to Subordinated
Lender.

     

    6.      Waiver and
Subrogation.  Subordinated
Lender hereby waives and agrees not to assert against Senior Lender any Rights
that a guarantor or surety of any Debt of Borrower could
assert.  Notwithstanding the immediately preceding sentence, nothing
in this Agreement shall cause Subordinated Lender to be deemed or treated as a
guarantor or surety.  Subordinated Lender shall be subrogated, to the
extent of any amounts owing to Subordinated Lender but required to be paid over
to Senior Lender by Subordinated Lender pursuant to the terms of this Agreement,
to all Rights of Senior Lender to receive any payments or distributions
applicable to the Senior Debt; provided, that Subordinated
Lender may not enforce such Rights until all of the Senior Debt has been paid in
full in cash and all of Senior Lender’s commitments to extend credit under the
Senior Debt Documents have terminated.  Subordinated Lender shall have
no claim against Senior Lender for any impairment of any subrogation rights
granted to Subordinated Lender.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    7.      Debtor Relief Laws and
Liquidation.  In
the event of any Proceeding under any Debtor Relief Laws involving Borrower
(other than in its capacity as a creditor or a purchaser of
assets):

     

    (a)         Subordinated
Lender may, and at Senior Lender’s request shall, duly and promptly execute,
verify, deliver and file any claims, proofs of claim, or other instruments of
similar character reasonably necessary to (i) have its claim allowed, or (ii)
accelerate the maturity of and enforce the obligation of Borrower, in each case
with respect to the Subordinated Debt.  Subordinated Lender hereby
irrevocably authorizes, empowers and appoints Senior Lender its agent and
attorney-in-fact, with full power of substitution, to (A) execute, verify,
deliver and file such proofs of claim on behalf of Subordinated Lender upon the
failure of Subordinated Lender promptly to do so (and, in any event, prior to
15 days before the expiration of the time to file any such proof), and (B)
vote such claim on behalf of Subordinated Lender in any such Proceeding upon the
failure of Subordinated Lender to do so prior to two (2) Business Days before
the expiration of the time to vote any such claim; provided, that Senior Lender
shall have no obligation to execute, verify, deliver or file any such proof of
claim or to vote any such claim.  In the event that Senior Lender
votes any claim in accordance with the authority granted hereby, Subordinated
Lender shall not be entitled to change, rescind or withdraw such vote, and
Senior Lender shall not be liable in any way to Subordinated Lender as a result
of such vote;

     

    (b)         Subordinated
Lender agrees not to initiate or prosecute, or encourage any other Person to
initiate or prosecute, any claim, action or other proceeding challenging the
enforceability of the Senior Debt, the Senior Debt Documents or any Liens
securing the Senior Debt;

     

    (c)         Subordinated
Lender agrees not to object on any grounds to (i) any sale of Collateral agreed
to by Senior Lender, (ii) any motion by Senior Lender for relief from automatic
stay or to release any Lien in any such proceeding to foreclose on, sell or
otherwise realize upon the Collateral, (iii) any use of cash collateral by
Borrower under Section 363 of the Bankruptcy Code that is permitted by Senior
Lender, (iv) any borrowing by Borrower from Senior Lender, or (v) any grant of a
Lien by any Person in favor of Senior Lender (or any agent therefore) under
Section 364 of the Bankruptcy Code;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (d)         upon
any distribution to creditors of Borrower in a liquidation or dissolution of
Borrower, (i) Senior Lender will be entitled to receive payment in full in cash
of all amounts payable under or in respect of the Senior Debt (including
interest accrued after the commencement of such Proceeding) before Subordinated
Lender will be entitled to receive from Borrower or its assets any payment under
or in respect of the Subordinated Debt, (ii) until Senior Lender has received
such payment in full in cash, any distribution from Borrower or its assets to
which Subordinated Lender would otherwise be entitled shall be made to Senior
Lender (or one or more trustees or representatives acting on its behalf), and
Subordinated Lender irrevocably authorizes, empowers and directs all receivers,
trustees, liquidators, custodians, conservators and others having authority in
the premises to effect all such payments and distributions, and Subordinated
Lender also irrevocably authorizes, empowers and directs Senior Lender to
demand, sue for, collect and receive every such payment or distribution; provided, however, that in
any such distribution to creditors Subordinated Lender shall be entitled to
receive indebtedness of Borrower subordinated upon terms substantially identical
to the terms hereof, and (iii) Subordinated Lender agrees to execute and deliver
promptly to Senior Lender or its representative such further instruments as
Senior Lender may reasonably request to confirm the authorization referred to in
the foregoing clause
(ii);

     

    (e)         the
Senior Debt shall continue to be treated as Senior Debt and the provisions of
this Agreement shall continue to govern the relative Rights and priorities of
Senior Lender and Subordinated Lender even if all or part of the Senior Debt or
the Liens securing the Senior Debt are subordinated, set aside, avoided or
disallowed in connection with any such Proceeding unless such subordination, set
aside, avoidance or disallowance is ordered by a court of competent jurisdiction
in a final, non-appealable order based on the bad faith, gross negligence or
willful misconduct of Senior Lender, and this Agreement shall be reinstated if
at any time any payment of any of the Senior Debt is rescinded or must otherwise
be returned to Borrower or any trustee by any holder of Senior Debt or any
representative of such holder other than in connection with any subordination,
set aside, avoidance or disallowance ordered by a court of competent
jurisdiction in a final, non-appealable order based on the bad faith, gross
negligence or willful misconduct of Senior Lender; and

     

    (f)          notwithstanding
anything in this Agreement to the contrary, in any such Proceeding Subordinated
Lender may receive and retain Reorganization Subordinated Securities if (i)
Subordinated Lender and Senior Lender shall have entered into such supplements
to or modifications of this Agreement as Senior Lender may reasonably request to
reflect the continued subordination of the Reorganization Subordinated
Securities to the Senior Debt (or notes or other securities issued in
substitution of all or a portion of the Senior Debt) to the same extent as
provided herein, (ii) such Reorganization Subordinated Securities do not have
the benefit of any obligation of any Person (whether as issuer, guarantor or
otherwise) unless the Senior Debt has at least the same benefit of such
obligation of such Person, and (iii) such Reorganization Subordinated Securities
do not have any terms, and are not subject to or entitled to the benefit of any
agreement or instrument that has terms, that are more burdensome to the issuer
of or other obligor on such debt or equity securities than are the terms of the
Senior Debt.

     

    8.      Restrictions on Subordinated
Debt.  Until
the Senior Debt is paid in full in cash and all of Senior Lender’s commitments
to extend credit under the Senior Debt Documents have terminated, Subordinated
Lender may not, without Senior Lender’s prior written consent, amend, modify, or
supplement the Subordinated Debt Documents to (a) create additional
Subordinated Debt by extending credit under the Subordinated Debt Documents, or
otherwise increase the outstanding principal amount of the Subordinated Debt,
(b) shorten the final maturity or accelerate any scheduled amortization or other
required payments of principal or interest under the Subordinated Debt,
(c) add new covenants or make the existing covenants, if any, more
restrictive, or (d) increase the rate of interest charged on the Subordinated
Debt.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    9.      Additional Agreements;
Modifications of Senior Debt Documents.

     

    (a)         The
Rights set forth in this Agreement of Senior Lender as against Subordinated
Lender shall remain in full force and effect without regard to, and shall not be
impaired by: (i) any act or failure to act on the part of Borrower; (ii)
any extension or indulgence in respect of any payment or prepayment of the
Senior Debt or any part therefor in respect of any other amount payable to
Senior Lender; (iii) any exercise or non-exercise by Senior Lender of any Right
under or in respect of any Senior Debt or any waiver of any such Right or any
default in respect of any Senior Debt, (iv) any dealing with or action against
any collateral securing any Senior Debt or any receipt by Senior Lender of any
security, (v) any failure by Senior Lender to properly perfect, or any avoidance
by a court or lapse of, any a security interest in any security for the payment
of any Senior Debt, (vi) any merger or consolidation of Borrower with or
into any of its affiliates or subsidiaries or with or into any other Person,
(vii) any sale of capital stock or reorganization of Borrower or any other
“change in control” transaction involving Borrower; (viii) any transfer of any
or all of Borrower’s property and assets to any other Person; or (ix) the
absence of any notice to, or knowledge by, Subordinated Lender of the existence
or occurrence of any of the matters or events set forth in this
Agreement.

     

    (b)         Without
notice to Subordinated Lender and without impairing or releasing the obligations
of Borrower and Subordinated Lender hereunder, Senior Lender and Borrower may
modify the Senior Debt Documents in any way whatsoever, including, without
limitation, to (i) create Senior Debt by extending credit under the Senior Loan
Agreement (up to the maximum principal amount of $10,000,000); (ii) change the
terms of or increase the amount of the Senior Debt (up to the maximum principal
amount of $10,000,000) by increasing, extending, rearranging, amending,
supplementing, or otherwise modifying any instrument or agreement creating or
governing Senior Debt; (iii) sell, exchange, release, or otherwise deal with any
collateral securing any Senior Debt; (iv) release anyone, including Borrower or
any guarantor, liable in any manner for the payment or collection of any Senior
Debt; (v) add covenants or make the existing covenants more restrictive; and
(vi) apply any sums received by Senior Lender, from whatever source, to the
payment of the Senior Debt; provided, however the terms
of the Senior Debt Documents relating to the Valley Permitted Payments shall not
be modified so as to be less favorable to the interests of Valley Seller than
those under the original Senior Debt Documents.

     

    10.    Assignment.  Until
all of the Senior Debt is paid in full in cash and all of Senior Lender’s
commitments to extend credit under the Senior Debt Documents have terminated,
Subordinated Lender covenants and agrees that it will not sell, assign, or
otherwise transfer or encumber the Subordinated Debt, any part thereof, or any
interest therein, without first obtaining and delivering to Senior Lender the
written consent and agreement of the purchaser, pledgee, assignee, or transferee
of the Subordinated Debt, or the applicable part thereof or interest therein, to
comply with and be subject to all of the terms, conditions and provisions of
this Agreement.  Subordinated Lender may not assign any of its rights
or obligations under this Agreement without the prior written consent of Senior
Lender, which shall not be unreasonably withheld.  Senior Lender’s
Rights under this Agreement may be assigned to or shared in whole or in part
with another lender in connection with any partial or complete assignment,
redemption, refinancing or transfer of the Senior Debt.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    11.         Future Senior Secured Credit
Facility.

     

    (a)         Subordinated
Lender acknowledges and understands that in all likelihood, one or more Senior
Secured Credit Facilities, as defined herein, will be entered into by Borrower,
and that any Senior Secured Lender thereunder is intended to participate in and
be a third party beneficiary of this Agreement, and at such time, as to any such
Senior Secured Lender:

     

    (i)           the
Subordinated Debt shall be included and referenced in the exact same manner as
herein (for the benefit of Senior Lender and the Senior Secured
Lender);

     

    (ii)          the
Senior Debt shall be limited in amount, included and referenced in the exact
same manner as herein (for the benefit of Subordinated Lender);

     

    (iii)         no
additional payment blockage, remedy blockage and other Rights of Senior Lender
and covenants of Borrower and Subordinated Lender may be added to the Rights of
Senior Lender and covenants of Borrower and Subordinated Lender contained
herein; and

     

    (iv)         this
Agreement will be amended and/or the Senior Secured Lender will require a
subordination agreement to be entered into by Senior Lender and Subordinated
Lender (any such amended Agreement or other subordination agreement that the
Senior Secured Lender requires Senior Lender and Subordinated Lender to enter
into, a “Senior Secured
Subordination Agreement”); provided, however, that the
terms of such Senior Secured Subordination Agreement shall not, in the
aggregate, be less favorable to Subordinated Lender than the terms of this
Agreement.

     

    (b)         Subordinated
Lender hereby agrees to execute and deliver a Senior Secured Subordination
Agreement, as described in subsection (a) above, in
conjunction with any and all future Senior Secured Credit Facilities entered
into by Borrower

     

    12.         Payments.  Subject
to Section
2(f) of this Agreement, the Senior Debt shall be paid in full in cash and
the Senior Loan Agreement terminated before any payment or distribution shall be
made on account of any Subordinated Debt, and Subordinated Lender will hold for
the benefit of Senior Lender and pay over to Senior Lender, in the form received
(with any necessary endorsements), to be applied to the Senior Debt, any and all
moneys, dividends, or other assets received on account of the Subordinated
Debt.

     

    13.         Notice.  Unless
otherwise provided, any consent, waiver, request, notice, or other communication
under or in connection with this Agreement must be in writing to be effective
and shall be deemed to have been given (a) if by mail, on the third (3rd)
Business Day after it is enclosed in an envelope and properly addressed,
stamped, sealed, certified return receipt requested, and deposited in the
appropriate official postal service, or (b) if by any other means, when
actually delivered.  Until changed by notice pursuant to this
Agreement, the address (and telecopy number) for each party is set forth below
their respective signatures.

     

    14.         Successors and
Assigns.  This
Agreement shall inure to the benefit of, and shall be binding upon and
enforceable against Borrower, Senior Lender and Subordinated Lender and (to the
extent permitted herein) their respective successors and
assigns.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    15.         Amendment.  This
Agreement may only be waived, amended, modified, or terminated by a written
agreement signed by the party against whom enforcement of any such waiver,
amendment, modification, or termination is sought.

     

    16.         Governing
Law.  This
Agreement must be construed, and its performance enforced, under New York law,
regardless of the Laws that might otherwise govern under principles of conflicts
of laws.

     

    17.         Jurisdiction.  Any
suit, action or proceeding seeking to enforce any provision of, or based on any
matter arising out of or in connection with, this Agreement or the transactions
contemplated hereby may be brought in the courts of the State of New York, in
New York County, and the federal courts in the Southern District of New
York.  Each of the parties (a) consents to the exclusive jurisdiction
of such courts (and of the appropriate appellate courts therefrom) in any such
suit, action or proceeding, (b) irrevocably waives, to the fullest extent
permitted by Law, any objection which it may now or hereafter have to the laying
of the venue of any such suit, action or proceeding in any such court or that
any such suit, action or proceeding which is brought in any such court has been
brought in an inconvenient forum, (c) will not attempt to deny or defeat such
personal jurisdiction by motion or other request for leave from any such court,
and (d) will not bring any action relating to this Agreement or any of the
transactions contemplated by this Agreement in any other
court.  Process in any such suit, action or proceeding may be served
on any party anywhere in the world, whether within or without the jurisdiction
of any such court.

     

    18.         Unenforceable Provisions;
Injunctive Relief.

     

    (a)         If
any part of this Agreement is for any reason found to be unenforceable, all
other portions nevertheless shall remain enforceable.  However, if the
provision held to be unenforceable is a material part of the Agreement, such
unenforceable provision may, to the extent permitted by Law, be replaced by a
clause or provision judicially construed and interpreted to be as similar in
substance and content to the original terms of such provision as the context
would reasonably allow, so that such clause or provision would thereafter be
enforceable.

     

    (b)         The
parties hereto agree that if Subordinated Lender or Borrower violates any of the
provisions of this Agreement, in addition to any other remedy available at Law
or in equity, Senior Lender will be entitled to seek specific performance or
injunctive relief without posting a bond, or other security, and without the
necessity of proving actual damages.

     

    19.         Multiple
Counterparts.  This
Agreement may be executed and delivered (including by facsimile or Portable
Document Format (pdf) transmission) in one or more counterparts, all of which
will be considered one and the same agreement and will become effective when one
or more counterparts have been signed by each of the parties and delivered to
the other parties.  Facsimile or pdf transmission of any signed
original document or retransmission of any signed facsimile or pdf transmission
will be deemed the same as delivery of an original.  At the request of
any party, the parties will confirm facsimile or pdf transmission by signing a
duplicate original document.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    20.         Jury
Waiver.  Senior
Lender, Subordinated Lender and Borrower hereby voluntarily, knowingly,
irrevocably and unconditionally waive any right to have a jury participate in
resolving any dispute (whether based upon contract, tort or otherwise) between
or among any of Senior Lender, Subordinated Lender and Borrower arising out of
or in any way related to this Agreement or any relationship between or among any
of Senior Lender, Subordinated Lender and Borrower.  This provision is
a material inducement to Senior Lender to provide the financing under the Senior
Loan Agreement.

     

    21.         Reinstatement and
Termination.

     

    (a)         If
at any time any payment of the principal of or interest on the Senior Debt or
Subordinated Debt is rescinded or must be restored or returned upon the
insolvency, bankruptcy or reorganization of Borrower or otherwise, the
obligations of Borrower, Senior Lender and Subordinated Lender under this
Agreement, with respect to that payment, shall be reinstated as though the
payment had been due but not made at that time.

     

    (b)         Subject
to subsection (a)
above, this Agreement and all obligations under this Agreement shall terminate
upon the earlier of (i) the repayment in full in cash of all Senior Debt and the
termination of all of Senior Lender’s commitments to extend credit under the
Senior Debt Documents or (ii) the repayment in full of the Subordinated Debt and
the termination of the Subordinated Debt Documents (except for any provisions
thereof, such as indemnification provisions, which by their terms survive
termination).

     

    22.         Intercreditor
Issues.  To
the extent that the terms of this Agreement directly conflict with a provision
in any of the Subordinated Debt Documents, the terms of this Agreement shall
control.

     

    23.         Attorneys’ and Consultants’
Fees and Expenses.  As
a material inducement to Subordinated Lender entering this Agreement, Borrower
agrees to pay all of Subordinated Lenders’ expenses, including but not limited
to, reasonable attorneys’ fees and expenses, incurred in connection with this
Agreement and any further or additional agreements or documents requested or
required to be executed by Subordinated Lender pursuant to this
Agreement.  Buyer shall pay all such fees and expenses within ten (10)
days of invoice.

     

    24.         ENTIRETY.  THIS
AGREEMENT REPRESENTS THE FINAL AGREEMENT BY AND AMONG SENIOR LENDER,
SUBORDINATED LENDER AND BORROWER AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BY THE
PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES TO
THIS AGREEMENT.

     

    [Signatures
appear on the following page(s)]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties have executed and delivered this Subordination and
Intercreditor Agreement as of the date first written above.

     

    
      
        	
                BORROWER:

              	
                SENIOR
      LENDER:

              
	 
      	 
      
	
                Valley
      Anesthesia, Inc.

              	
                Deerpath
      Funding, LP

              
	
                a
      Delaware corporation

              	
                a
      Delaware limited partnership,

              
	 
      	
                as
      Agent and Lender

              

      

    

    

    
      
        	 
      	
                By:

              	
                Deerpath
      Funding General Partner, Inc.

              
	 
      	 
      	
                its
      general partner

              

      

    

    
      
        
          	
                  By:

                	
                  /s/ Joseph J. Bianco

                	 
      
	
                  Name:   
       Joseph J. Bianco

                
	
                  Title:      
      Chief Executive Officer

                

        

      

    

    
      
        
          	 	
                  By:

                	
                  /s/ James H. Kirby

                
	 	
                  Name:    
      James H. Kirby

                
	 	
                  Title:      
      President

                

        

      

    

    
      
        	
                Address:

              	
                845
      Third Avenue, 6th
      Floor

              	 
      	 
      
	 
      	
                New
      York, New York 10022

              	
                Address: 

              	
                405
      Lexington Avenue, 71st
      Floor

              
	
                Attention: 

              	
                Anil
      Narang

              	 
      	
                New
      York, NY 10174

              
	
                Fax
      No.:

              	
                (646)
      290-5001

              	
                Attn:

              	
                James
      H. Kirby

              
	 
      	 
      	
                Fax
      No.:

              	
                (646)
      417-7095

              

      

    

    

    
      
        	 
      	
                SUBORDINATED
      LENDER:

              
	 
      	 
      
	 
      	
                Valley
      Anesthesia Educational

              
	 
      	
                Programs,
      Inc.

              
	 
      	
                an
      Iowa corporation

              

      

    

    

    
      
        
          	 	
                  By:

                	
                  /s/ Barbara J. Paradise

                
	 	
                  Name:     
      Barbara J. Paradise

                
	 	
                  Title:       
      Vice-President

                

        

      

    

    

    
      
        	 
      	
                Address:

              	
                1995
      County Club Blvd.

              
	 
      	 
      	
                Clive,
      IA 50325

              
	 
      	
                Attention: 

              	
                Barbara
      Paradise

              
	 
      	
                Fax
      No.:

              	
                (515)
      221-0194

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