Document:

AMENDED REVOLVING LINE OF CREDIT AGREEMENT

EXHIBIT 10.26

AMENDED REVOLVING LINE OF CREDIT AGREEMENT

This Amended Revolving Line of Credit Agreement (the "Agreement") is made and entered into in this 16th day of December, 2008 (the “Effective Date”), by and between Boston Avenue Capital, LLC, an Oklahoma limited liability company ("Lender"), and CompuMed, Inc., a Delaware corporation ("Borrower").

WHEREAS, Lender and Borrower entered into a Revolving Line of Credit Agreement and Promissory Note dated February 15, 2008 (collectively, the “Original Credit Agreement”); and 

WHEREAS, Lender and Borrower seek to amend and restate the terms of the Original Credit Agreement as set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows:

1.       LINE OF CREDIT. The Original Credit Agreement and Promissory Note are hereby terminated in its entirety and replaced with this Agreement and new Promissory Note.  Lender hereby establishes for a period extending to December 31, 2010 a revolving line of credit (the "Credit Line") for Borrower in the principal amount of Four Million Dollars ($4,000,000.00) (the "Credit Limit").  In connection herewith, Borrower shall execute and deliver to Lender a Promissory Note in the amount of the Credit Limit in form and content of Exhibit A attached hereto. All sums advanced on the Credit Line or pursuant to the terms of this Agreement (each an "Advance") shall become part of the principal of said Promissory Note.  

2.       ADVANCES. Any request for an Advance may be made from time to time in writing (in substantially the form attached hereto as Exhibit B) to the Lender in such amounts as Borrower may choose; provided, however , (i) any requested Advance will not, when added to the outstanding principal balance of all previous Advances, exceed the Credit Limit; (ii) no Advances shall be made in the event  the board of directors of Borrower existing on the Effective Date (the “Current Directors”) (or any individuals in replacement of, or in addition to, the the Current Directors who are approved in writing by Lender in Lender’s discretion without any obligation to provide an explanation for the exercise of that discretion) cease to be the only members of the board of directors of Borrower (a “Board Member Event”); (iii) no Advances shall be made without the unanimous approval of the members of the  Board of Directors of the Borrower; (iv) no Advances shall be made in the event of the discovery of a material liability not disclosed in the Company’s From 10Q or 10K filings with the Securities and Exchange Commission; and (v) no Advances shall be made without the prior written consent of Lender (which Lender may deny in its sole discretion without any obligation to provide an explanation for its exercise of its discretion) if Borrower or any of its officers, directors, employees, shareholders or affiliates become a party to a legal cause of action (whether it be local, state, federal, administrative or otherwise) related to the Borrower and/or its affiliates. Borrower shall notify the Lender of the cause of action within three (3) business days of its knowledge of the 

cause of action, such notice to include reasonably sufficient detail to explain the cause of action (a “Cause of Action”). Requests for Advances may be made orally or in writing by such officer of Borrower authorized by it to request such Advances. Until such time as Lender may be notified otherwise, Borrower hereby authorizes its president to request Advances. Lender may refuse to make any requested Advance if an event of default has occurred and is continuing hereunder either at the time the request is given or the date the Advance is to be made, or if an event has occurred or condition exists which, with the giving of notice or passing of time or both, would constitute an event of default hereunder as of such dates.  The funds from the Advances will be used by the Borrower for acquisitions and operating expenses in connection with the operations of the Borrower.  

3.       INTEREST. All Advances made pursuant to this Agreement shall bear simple interest from the date each Advance is made until the Advance is paid in full at a rate per annum during each quarterly interest period equal to the rate per annum of the London interbank offered rate (LIBOR) for three-month deposits (as published in the Dow Jones Markets Telerate Page or such other commercially accepted publication), determined as of 11:00 a.m. London time on the second business day prior to the start of such quarterly interest period (the “Principal Interest”).  All sums up to the Credit Limit which have not been advanced shall bear interest until such time as such funds are Advanced to Borrower at a rate of one percent (1%) per annum compounded annually on the first business day of each calendar year (the “Commitment Interest”).  Borrower may, at any time reduce the total amount of the Letter of Credit (as hereafter provided) by written notice to the Lender and the issuer thereof and no Commitment Interest or other fee or charge shall be due or payable by Borrower in respect of the amount by which the Letter of Credit is so reduced.

4.       REPAYMENT. Borrower shall pay Principal Interest accrued as the first day of each calendar quarter in arrears on the principal balance of Advances outstanding during the prior quarter commencing on  the fifth business day of the calendar quarter immediately following the initial Advance and continuing thereafter with such payments of Principal Interest being due on the fifth business day of each July, October, January and April thereafter. The entire unpaid principal balance, together with any accrued interest and other unpaid charges or fees hereunder, shall be due and payable on the Maturity Date. All payments shall be made to Lender at such place as Lender may, from time to time, designate. All payments received hereunder shall be applied, first, to any costs or expenses incurred by Lender in collecting such payment or to any other unpaid charges or expenses due hereunder; second, to accrued interest; and third, to principal. Borrower may prepay principal at any time without penalty.  Any Advances which are prepaid shall bear Commitment Interest until the Maturity Date or until again Advanced (“Readvanced Funds”), at which point the Readvanced Funds shall bear Principal Interest from the date of Readvance until paid in full.

5.       REPRESENTATIONS AND WARRANTIES. In order to induce Lender to enter into this Agreement and to make the advances provided for herein, Borrower represents and warrants to Lender as follows:

a.       Borrower is a duly organized, validly existing, and in good standing under the laws of the State of Delaware with the power to own its assets and to transact business in states where its business is conducted.

b.       Borrower has the authority and power to execute and deliver any document required hereunder and to perform any condition or obligation imposed under the terms of such documents.

c.       The execution, delivery and performance of this Agreement and each document incident hereto will not violate any provision of any applicable law, regulation, order, judgment, decree, article of incorporation, by-law, indenture, contract, agreement, or other undertaking to which Borrower is a party, or which purports to be binding on Borrower or its assets and will not result in the creation or imposition of a lien on any of its assets.

d.       There is no action, suit, investigation, or proceeding pending or, to the knowledge of Borrower, threatened, against or affecting Borrower or any of its assets which, if adversely determined, would have a material adverse affect on the financial condition of Borrower or the operation of its business.

6.

EVENTS OF DEFAULT. An event of default will occur if any of the following events occurs:

a.  Failure to pay any principal or interest hereunder within ten (10) days after the same becomes due.

b.     Any representation or warranty made by Borrower in this Agreement or in connection with any borrowing or request for an Advance hereunder, or in any certificate, financial statement, or other statement furnished by Borrower to Lender is untrue in any material respect at the time when made.

c.      Default by Borrower in the observance or performance of any other covenant or agreement contained in this Agreement, other than a default constituting a separate and distinct event of default under this Paragraph 6.

d.   Filing by Borrower of a voluntary petition in bankruptcy seeking reorganization, arrangement or readjustment of debts, or any other relief under the Bankruptcy Code as amended or under any other insolvency act or law, state or federal, now or hereafter existing.

e.   Filing of an involuntary petition against Borrower in bankruptcy seeking reorganization, arrangement or readjustment of debts, or any other relief under the Bankruptcy Code as amended, or under any other insolvency act or law, state or federal, now or hereafter existing, and the continuance thereof for sixty (60) days undismissed, unbonded, or undischarged.

7.       REMEDIES. Upon the occurrence of an event of default as defined above, Lender may declare the entire unpaid principal balance, together with accrued interest thereon, to be immediately due and payable without presentment, demand, protest, or other notice of any kind. 

Upon an event of default, including failure to pay on the Maturity Date, Lender, at its option, may also, if permitted under applicable law, increase the interest rate on Advanced funds and any interest due thereon to a default rate equal to US National Prime plus 4% per annum compounded annually on the first day of each calendar quarter.  Lender may suspend or terminate any obligation it may have hereunder to make additional Advances. To the extent permitted by law, Borrower waives any rights to presentment, demand, protest, or notice of any kind in connection with this Agreement. No failure or delay on the part of Lender in exercising any right, power, or privilege hereunder will preclude any other or further exercise thereof or the exercise of any other right, power, or privilege. The rights and remedies provided herein are cumulative and not exclusive of any other rights or remedies provided at law or in equity.

8.  

WARRANT ISSUANCE.  

(a)  Draw Down Warrants.  In the event of an Advance in any amount, the Borrower shall issue a Common Stock Purchase Warrant (the “Draw Down Warrant”) in usual and customary form and content reasonably (including anti-dilution provisions) acceptable to Lender for a purchase price of $5,000 (the “Drawn Down Warrant Purchase Price”), within five (5) business days after an Advance, entitling the Lender to purchase all or some of 16,000,000 shares of the Borrower’s Common Stock at any time and from time to time during a period ending on the twentieth anniversary of this Agreement at a price of two dollars ($2.00) per share, when and if such shares are authorized for issuance by the stockholders of Borrower (the “Draw Down Warrant Share Authorization”).  The Company shall use its best efforts to obtain the Draw Down Warrant Share Authorization on or before the second anniversary of the Advance.  In the event the stockholders of Borrower to not timely effect a Draw Down Warrant Share Authorization, the Borrower may put the Draw Down Warrant to the Lender, in whole but not in part, for a price equal to the sum of (i) the Draw Down Warrant Purchase Price and (ii) 8% per annum times the Draw Down Warrant Purchase Price, compounded annually from the issue date.

(b)    The Common Stock Purchase Warrant issued to Lender on February 15, 2008 for the purchase of up to 16,000,000 shares of the Borrowers common stock for a purchase price of $5,000 is hereby terminated in its entirety and Lender shall have no rights thereunder. 

9.    EXPIRATION AND TERMINATION  

(a)   Expiration of Agreement and Promissory Note.  Provided there have been no Advances, this Agreement and accompanying Promissory Note shall automatically expire without further action by the parties hereto on December 31, 2010.  In the event Advances have been made, this Agreement and the Promissory Note shall remain in effect until such time as all principal and interest on such outstanding Advances have been paid to Lender; provided however, that no additional Advances shall be made after December 31, 2010 and the Credit Line shall be reduced to the amount of the outstanding Advances.  

(b)  Termination by Borrower.  So long as there have no outstanding Advances, this Agreement may be terminated without penalty by the Borrower at any time upon two (2) day written notice to Lender.  

(c)  Termination by Lender.  Lender may terminate this Agreement in the event any of the Current Directors (or any individuals in replacement of the Current Directors who are approved in writing by Lender in Lender’s discretion without any obligation to provide an explanation for the exercise of that discretion) cease to be the only members of the board of directors of Borrower by providing Borrower written notice thereof.

10.      NOTICE. Any written notice will be deemed effective on the date such notice is placed, first class, postage prepaid, in the United States mail, addressed to the party to which notice is being given as follows:

Lender:             

Boston Avenue Capital, LLC

15 th East 5 th Street

Suite 2660

Tulsa, Oklahoma 74103

          

Borrower:     

CompuMed, Inc.

5777 W. Century Boulevard

Suite 360

Los Angeles, California 90045

11.  GENERAL PROVISIONS. All representations and warranties made in this Agreement and the Promissory Note and in any certificate delivered pursuant thereto shall survive the execution and delivery of this Agreement and the making of any loans hereunder. This Agreement will be binding upon and inure to the benefit of Borrower and Lender, their respective successors and assigns, except that Borrower may not assign or transfer its rights or delegate its duties hereunder without the prior written consent of Lender. This Agreement, the Promissory Note, and all documents and instruments associated herewith will be governed by and construed and interpreted in accordance with the laws of the State of Delaware. Any  cause of action for a breach or enforcement of, or a declaratory judgment respecting, this Agreement shall be commenced and maintained only in the United States District Court for the Northern District of Oklahoma or the applicable Oklahoma state trial court sitting in Tulsa, Oklahoma and having subject matter jurisdiction.  Time is of the essence hereof. This Agreement will be deemed to express, embody, and supersede any previous understanding, agreements, or commitments, whether written or oral, between the parties with respect to the general subject matter hereof. This Agreement may not be amended or modified except in writing signed by the parties.  In any action brought by Lender hereto to enforce this Agreement, Lender shall be entitled to collect from Borrower, Lender’s reasonable litigation costs and attorneys fees and expenses (including court costs, reasonable fees of accountants and experts, and other expenses incidental to the litigation).

EXECUTED on the day and year first written above.

LENDER:  BOSTON AVENUE CAPITAL, LLC     

By:    /s/  Charles Gillman

Name: Charles Gillman

Title: Managing Member

BORROWER:  COMPUMED, INC.

By: /s/  Maurizio Vecchione

Name: Maurizio Vecchione

Title: Chief Executive Officer                

EXHIBIT A

Promissory Note

$4,000,000.00                                                        

Tulsa, Oklahoma

December 16, 2008

This Promissory Note (the "Note") is made and executed as of the date referred to above, by and between Boston Avenue Capital, an Oklahoma Limited Liability Company (the " Lender Borrower"), and CompuMed, Inc., a Delaware corporation ("Borrower"). By this Note, the Borrower promises and agrees to pay to the order of Lender, at 15 th East 5 th Street, Suite 2660 Tulsa, Oklahoma 74103 or at such other place as Lender may designate in writing, the principal sum of Four Million and 00/100 Dollars ($4,000,000.00), or the aggregate unpaid principal amount of all advances made by Lender to Borrower pursuant to the terms of a Revolving Line of Credit Agreement (the "Loan Agreement") of even date herewith, whichever is less, together with interest thereon from the date each advance is made until paid in full, both before and after judgment at the interest rates specified in paragraph 3 of the Loan Agreement.

 

Borrower shall pay accrued interest on the outstanding principal balance under the Note during the prior calendar quarter commencing on the fifth business day of the first calendar quarter after the initial Advance, and continuing thereafter on the fifth business day of each July, October, January and April thereafter until the Note is paid in full. The entire unpaid principal balance, together with any accrued interest and other unpaid charges or fees hereunder, shall be due and payable on December 31, 2017 (the "Maturity Date").

Prepayment in whole or part may occur at any time hereunder without penalty; provided that the Lender shall be provided with not less than ten (10) days notice of the Borrower's intent to pre-pay; and provided further that any such partial prepayment shall not operate to postpone or suspend the obligation to make, and shall not have the effect of altering the time for payment of the remaining balance of the Note as provided for above, unless and until the entire obligation is paid in full. All payments received hereunder shall be applied, first, to any costs or expenses incurred by Lender in collecting such payment or to any other unpaid charges or expenses due hereunder; second, to accrued interest; and third, to principal.

An event of default will occur if any of the following events occurs: (a) failure to pay any principal or interest hereunder within ten (10) days after the same becomes due; (b) if any representation or warranty made by Borrower in the Loan Agreement or in connection with any borrowing or request for an advance thereunder, or in any certificate, financial statement, or other statement furnished by Borrower to Lender is untrue in any material respect at the time when made; (c) default by Borrower in the observance or performance of any other covenant or agreement contained in the Loan Agreement, other than a default constituting a separate and distinct event of default under Paragraph 7 of the Loan Agreement; (d) filing by Borrower of a voluntary petition in bankruptcy seeking reorganization, arrangement or readjustment of debts, or any other relief under the Bankruptcy Code as amended or under any other insolvency act or law, state or federal, now or hereafter existing; (e) filing of an involuntary petition against 

Borrower in bankruptcy seeking reorganization, arrangement or readjustment of debts, or any other relief under the Bankruptcy Code as amended, or under any other insolvency act or law, state or federal, now or hereafter existing, and the continuance thereof for sixty (60) days undismissed, unbonded, or undischarged or (f) if Borrower, or any of its officers, directors, employees, shareholders or affiliates become a party to a legal cause of action (whether it be local, state, federal, administrative or otherwise) related to the Borrower and/or its affiliates, Borrower shall notify the Lender of the cause of action within three (3) business days of its knowledge of the cause of action, such notice to include reasonably sufficient detail to explain the cause of action (a “Cause of Action”), and Lender may, at its option and in its sole discretion, declare that the Cause of Action is an event of default for purposes of this Agreement,  entitling Lender to the remedies provide in paragraph 7 of the Revolving Line of Credit Agreement (as defined below).

Any notice or demand to be given to the parties hereunder shall be deemed to have been given to and received by them and shall be effective when personally delivered or when deposited in the U.S. mail, certified or registered mail, return receipt requested, postage prepaid, and addressed to the party at his or its last known address, or at such other address as the one of the parties may hereafter designate in writing to the other party.

The Borrower hereof waives presentment for payment, protest, demand, notice of protest, notice of dishonor, and notice of nonpayment, and expressly agrees that this Note, or any payment hereunder, may be extended from time to time by the Lender without in any way affecting its liability hereunder.

In the event any payment under this Note is not made at the time and in the manner required, the Borrower agrees to pay any and all costs and expenses which may be incurred by the Lender hereof in connection with the enforcement of any of its rights under this Note or under any such other instrument, including court costs and reasonable attorneys' fees.  Upon an event of default, including failure to pay on the Maturity Date, Lender, at its option, may also, if permitted under applicable law, increase the interest rate on Advanced funds and any interest due thereon to a default rate equal to US National Prime plus 4% per annum compounded on the first day of each calendar year.

This Note shall be governed by and construed and enforced in accordance with the laws of Delaware.  This Note is governed by the Revolving Line of Credit Agreement between the parties of even date herewith (the “Revolving Line of Credit Agreement”).  In the event of a conflict between this Note and the Revolving Line of Credit Agreement, the Revolving Line of Credit Agreement shall prevail.

Borrower:     CompuMed, Inc.

By:  /s/  Maurizio Vecchione

Name: Maurizio Vecchione

Title: Chief Executive Officer

EXHIBIT B

Request for an Advance

Reference:  Revolving Line of Credit between Boston Avenue Capital, LLC and CompuMed, Inc. dated December 16, 2008 (the “Credit Agreement”)

To:

Boston Avenue Capital, LLC

From:

CompuMed, Inc.

NOTICE

Pursuant to paragraph 2 of the Credit Agreement, CompuMed, Inc. hereby requests an advance of $ _________________________________ ($__________).  

The Undersigned here by certifies that the provisos of paragraph 2 of the Credit Agreement are met and that prior the Advance hereby requested, the total of all Advances is $______________________________ ($______________).

CompuMed, Inc.

By _______________________________

Signature

__________________________________

Printed Name

__________________________________

Title

__________________________________

DatedFiled by Bowne Pure Compliance

Exhibit 10.1

SEPARATION AGREEMENT,

WAIVER AND RELEASE

This Agreement is made and entered into freely and voluntarily by and between Larry H. Wolff (hereinafter referred
to as “Employee”) and Universal Technical Institute, Inc. (hereinafter referred to as “UTI”).*

WHEREAS, Employee is employed by UTI; and

WHEREAS, the parties wish to terminate their employment relationship in a manner which is satisfactory to both
Employee and UTI;

NOW, THEREFORE, for and in consideration of the acts, payments, covenants and mutual agreements herein described
and agreed to be performed, Employee and UTI agree as follows:

1. Termination Date. Employee agrees, recognizes and accepts that Employee’s employment relationship with
UTI will terminate as of December 12, 2008 and that UTI has no obligation, contractual or otherwise, to re-employ or
recall Employee in the future.

2. Definitions.

(a) “Business” means (a) ownership and operation of private post-secondary educational institutions, the
primary educational program of which teaches motorcycle, marine, automotive, diesel, and collision repair and
refinishing technologies, or (b) any similar or incidental business conducted, or engaged in, by the Company
prior to the date hereof or at any time during the Term.

(b) “Compete” shall mean to directly or indirectly own, operate, manage, join, control, be employed by,
be a consultant to or become a director, officer, or shareholder of (holding 5% or more of shares) any
educational institution or facility with more than 50% of its gross revenue for the institution or facilities
preceding fiscal year being generated by educational programs which teach automotive, motorcycle, marine,
diesel or collision repair and refinishing technologies (or a combination of these programs). Such competing
business shall be referred to herein as “Competitive Business”.

(c) “Market” means anywhere in the United States or Puerto Rico. If a court of competent jurisdiction
finds that this definition of Market is unreasonable, then the Market will be considered to mean all states in
which the Company has a campus or other training center and all states that are contiguous to a state in which
the Company has a campus or training center. If a court of competent jurisdiction finds that this definition
of Market is unreasonable, the Market shall mean all states in which the Company has a campus or other
training center.

 

* As used in this Agreement, the term “UTI” includes Universal Technical Institute and all of its current
and former officers, directors, agents, representatives and employees, as well as all current and former entities
related to or affiliated with UTI. “Company” includes all current and former entities related to or affiliated with
UTI.

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3. Payment(s). UTI agrees to pay Employee the sum of $144,581.82 (less withholding) representing an
amount equal to twenty nine (29) weeks of Employee’s base salary at the time of termination. This amount shall be paid
in bi-weekly payments via the Company’s regular payroll process. This twenty nine (29) week period shall be defined as
the “Severance Period”. In addition, Company agrees to pay Employee the sum of $9,971.16 representing eighty (80) hours
of vacation pay. Employee shall be entitled to the fiscal 2008 bonus, if any is earned according to the terms of the
UTI bonus plan. This bonus will be paid when all other employee bonuses are paid, approximately in December 2008, and
is subject to tax withholdings accordingly.

Employee acknowledges that the payment(s) referenced in this Agreement constitutes special consideration to
Employee in exchange for the promises made herein by Employee and that UTI was not otherwise obligated to provide to
Employee any such payment, benefits or portion thereof. Employee also acknowledges that it is likely that there will
be a two week processing time that may apply and that no payments under this Agreement will be processed until Employee
signs the Agreement and the revocation period set forth in Paragraph 10 below has passed.

4. Benefits. Employee’s current medical, dental and vision benefits will continue pursuant to Company
policy, until December 15, 2008. Beginning on the first day that active employee coverage is ineffective, Employee may
elect to continue current health benefits for up to eighteen (18) months in accordance with the plan provisions and the
Consolidated Omnibus Budget Reconciliation Action of 1985 (COBRA). In addition, if Employee signs and returns this
Agreement, the Company will continue to pay the employer portion of the insurance premium (for medical and dental
coverage only) for the coverage held by Employee during active employment and any administrative fee until June 30,
2009 provided the Employee makes a timely election to receive COBRA benefits and pays the employee portion of the
premium, if any.

5. Stock Awards. All stock awards (as defined in any applicable Plan), including stock options or
restricted stock shall vest and be governed as set forth in the terms and provisions of the Plan and the grant
Agreement under which such Award was granted.

6. Outplacement. Employee will be entitled to six (6) months of outplacement services provided by
the firm of Right Management.

7. Transition Agreement. In consideration of the payments and benefits payable to Employee herein,
Employee agrees that during the Severance Period, he will cooperate with the Company and assist the Company in the
transition of Employee’s duties and responsibilities. Employee shall be available by telephone or email at and for
reasonable times to assist in transition of his work and knowledge as designated by Kim McWaters during the Severance
Period. Employee’s failure to effectively assist in transition of his duties and knowledge will excuse the Company from
any further obligation to provide further payments and benefits under this Agreement.

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8. Release. Employee hereby releases, acquits and forever discharges UTI, its officers, employees,
agents and successors of and from any and all actions, claims, damages, expenses or costs of whatever nature arising
out of Employee’s employment and termination of employment with UTI, whether known or not by either party at the time
of execution of this Agreement.

9. Employee’s Full Waiver of All Claims includes, but is not limited to, any rights or claims under
Title VII of the Civil Rights Act of 1964, the Fair Labor Standards Act (FLSA), the Americans with Disabilities Act
(ADA), the Employee Retirement Income Security Act (ERISA), the Equal Pay Act (EPA), the Rehabilitation Act of 1973,
the Family and Medical Leave Act (FMLA), the National Labor Relations Act (NLRA), the Labor Management Relations Act
(LMRA) or any other action or claim under any federal, state or local statute, or regulation or under common law which
may be waived. Employee’s release also includes all claims for constructive discharge, negligent supervision, breach
of contract, breach of express or implied covenant, defamation, libel, slander, intentional or negligent infliction of
emotional distress, tortuous interference with contract, retaliation, failure to pay wages, bonuses, commissions or
other benefits, attorneys’ fees and any other claim that could be raised by Employee as a result of Employee’s
employment or termination of employment with UTI. This Waiver and Release does not affect Employee’s right to file a
charge or participate in any federal, state or local investigation by any governmental agency or to challenge the
validity of this Agreement, or Employee’s right to any governmental benefits payable under any Social Security or
Worker’s Compensation law now or in the future. This Release is not intended to release or waive Employee’s right to
bring any action to enforce the terms of this Agreement. Notwithstanding the foregoing, Employee acknowledges and
agrees that he (1) is not entitled to any monetary or personal relief with respect to any charge filed by any person or
entity with any federal, state or local government agency; and (2) specifically assigns any such recovery to UTI. This
Agreement is not intended to and does not waive or release any claim under the Arizona Minimum Wage Act.

10. Employee’s Release of Any Age Claims. Also in consideration of the promises and understandings
contained in this Agreement, Employee hereby waives, releases, discharges, and agrees that Employee will not institute,
prosecute or pursue any charges, claims, causes of action, or suits for claims, if any, that have arisen as of the date
of this Agreement under the Age Discrimination in Employment Act (“ADEA”), as amended, or under the age provisions of
applicable state law. Employee acknowledges that he is knowingly and voluntarily waiving and releasing any rights he
may have under the ADEA, as amended. Employee also acknowledges that the consideration given for the waiver and
release in the preceding paragraph hereof is in addition to anything of value to which he is or may have been entitled.
Employee further acknowledges having been advised by this writing, as required by the ADEA, that:

	 	(a)	 	this waiver and release do not apply to any rights or claims that may arise
after execution date of this Agreement;

	 	(b)	 	he has been advised hereby of having have the right to consult with an
attorney prior to executing this Agreement;

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	 	(c)	 	he has twenty one (21) days to consider this Agreement (although he may
choose to voluntarily execute this Agreement earlier);

	 	(d)	 	Employee has seven (7) days following the execution of this Agreement by the
parties to revoke the Agreement; and

	 	(e)	 	this Agreement shall not be effective until the date upon which the
revocation period has expired, which shall be the eighth day after this Agreement is executed by
the undersigned.

11. Covenant Not to Sue. Employee further covenants and agrees never to commence any action, suit or
proceeding, in law or in equity against UTI, in any way pertaining to or arising out of Employee’s employment by and
with UTI, or the termination of Employee’s employment, except as otherwise permitted by law. Employee also stipulates
that the consideration received and to be received by Employee under this Agreement, including the payments and
benefits described in paragraphs 3 and 4 above, is in full and complete satisfaction of any claims Employee may have,
or may have had, arising out of Employee’s employment or termination of employment with UTI, whether known by the
parties at the time of execution of this Agreement or not.

12. Confidentiality. Employee agrees to maintain in strictest confidentiality the terms and existence
of this Agreement and the discussions which led to its creation and execution, with the exception that Employee may
disclose such matters to any attorney who is providing advice or to an accountant or federal or state tax agency for
purposes of complying with any tax laws or as otherwise required by law. If Employee breaches this confidentiality
provision or any other term of this Agreement, UTI shall be excused from performing its obligations hereunder. Employee
further agrees this Agreement does not constitute an admission of wrongdoing by either party and that neither this
Agreement nor the negotiations that led to its creation shall be used as evidence to prove any alleged wrong, other
than a failure to comply with the terms of this Agreement. The parties agree that this Agreement may be used as
evidence in any action to enforce the terms of this Agreement.

13. Confidential Information.

(a) Following the Termination Date, Employee will not, directly or indirectly, in one or a series of
transactions, disclose to any person, or use or otherwise exploit for his own benefit or for the benefit of
anyone other than the Company, any Confidential Information, whether prepared by Employee or not;
provided, however, that any Confidential Information may be disclosed (i) to officers,
representatives, employees and agents of the Company who need to know such Confidential Information in order
to perform the services or conduct the operations required or expected of them in the Company’s business, and
(ii) in good faith by Employee in connection with the performance of Employee’s duties under this Agreement.
Employee shall have no obligation hereunder to keep confidential any Confidential Information if and to the
extent disclosure of any thereof is specifically required by law; provided, however, that in
the event disclosure is required by applicable law, Employee shall provide the Company with prompt notice of
such requirement, prior to making any disclosure, so that the Company may seek an appropriate protective
order.

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(b) “Confidential Information” means any confidential information including, without limitation, any
study, data, calculations, software storage media or other compilation of information, brand, marketing,
advertising/media, product and channel strategies, OEM market data, competitor and student research, internet
marketing strategy and tactics, predictive modeling insights, product designs, pricing and training manuals,
campus operations design and strategy. Copyright, “know-how,” trade secrets, customer lists, details of client
or consultant contracts, pricing policies, operational methods, marketing plans or strategies, product
development techniques or plans, business acquisition plans or any portion of phase of any scientific or
technical information, ideas, discoveries, designs, computer programs (including source of object codes),
processes, procedures, formulae, improvements or other proprietary or intellectual property of the Company,
whether or not in written or tangible form, and whether or not registered, and including all files, records,
manuals, books, catalogues, memoranda, notes, summaries, plans, reports, records, documents and other evidence
thereof. Notwithstanding the foregoing, the term “Confidential Information” does not include,
and there shall be no obligation hereunder with respect to, information that is or becomes generally available
to the public other than as a result of a disclosure by Employee not permissible hereunder.

14. Covenant Not to Compete. Payments and benefits payable pursuant to Sections 3 and 4 are subject
to the following restrictions.

a. Post-Termination Restrictions.

(i) Employee acknowledges that services provided give Employee the opportunity to have special
knowledge of the Company and its Confidential Information and the capabilities of individuals
employed by or affiliated with the Company and that interference in these relationships would cause
irreparable injury to the Company. In consideration of this Agreement, Employee covenants and agrees
that:

(1) From the date hereof until June 30, 2009 (or until March 31, 2009 if a court finds
the June 30, 2009 date is unreasonable) after the Employee’s termination date Employee will
not, without the express written approval of the Chief Executive Officer of the Company,
directly or indirectly, anywhere in the Market, in one or a series of transactions, Compete
against Company, as defined in paragraph 2.b. above without regard to (a) whether the
Competitive Business has its office or other business facilities within or without the
Market, (b) whether any of the activities of the Employee referred to above occur or are
performed within or without the Market, or (c) whether the Employee resides, or reports to
an office, within or without the Market; provided, however, that Employee may accept
employment with a successor company to the Company.

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(2) Without regard to the reason for Employee’s termination, from the date hereof until
June 30, 2009 (which shall not be reduced by (a) any period of violation of this Agreement
by Employee or (b) if the Company is the prevailing party in any litigation to enforce its
rights under this Section 14 the period which is required for such litigation), Employee
will not, without the express prior written approval of the Chief Executive Officer of the
Company, directly or indirectly, in one or a series of transactions: (i) recruit, solicit
or otherwise induce or influence any proprietor, partner, stockholder, lender, director,
officer, employee, sales agent, joint venturer, investor, lessor, customer, agent,
representative or any other person which has a business relationship with the Company or had
a business relationship with the Company within the twenty-four (24) month period preceding
the date of the incident in question, to discontinue, reduce or modify such employment,
agency or business relationship with the Company; or (ii) employ or seek to employ or cause
any Competitive Business or any other private post secondary educational institution to
employ or seek to employ any person or agent who is then (or was at any time within
twenty-four (24) months prior to the date the Employee or the Competitive Business employs
or seeks to employ such person) employed or retained by the Company. Notwithstanding the
foregoing, nothing herein shall prevent the Employee from providing a personal letter or
recommendation to an employee with respect to a future or any other employment opportunity.

(3) The scope and term of this Section 14 would not preclude Employee from earning a
living in an occupation or position that does not “Compete” with the Company or with an
entity that is not a Competitive Business.

(ii) Upon a good faith determination that Employee has breached Employee’s obligations in any
material respect under this Section 14 the Company, in addition to pursuing all available remedies
under this Agreement, at law or otherwise, and without limiting its right to pursue the same, shall
cease all payments to Employee under this Agreement.

(c) Acknowledgment Regarding Restrictions. Employee recognizes and agrees that the restraints
contained in Section 14 (separately and in total) are reasonable and should be fully enforceable in view of
the high level positions Employee has had with the Company, and the Company’s legitimate interests in
protecting its Confidential Information and its goodwill and relationships. Employee specifically hereby
acknowledges and confirms that Employee is willing and intends to, and will, abide fully by the terms of
Section 14 of this Agreement. Employee further agrees that the Company would not have adequate protection if
Employee were permitted to work in a Competitive Business in violation of the terms of this Agreement since
the disclosure of such information is inevitable and Company would be unable to verify whether its
Confidential Information was being disclosed and/or misused.

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(d) Company’s Right to Injunctive Relief. In the event of a breach or imminent breach of any of
Employee’s duties or obligations in this Agreement, including, without limitation, Employee’s duties and
responsibilities under the terms and provisions of Section 14 of this Agreement, the Company shall be entitled
to immediately cease all payments and benefits to Employee under Section 3 and 4 in the event of an actual
breach, require Employee to disgorge and repay to Company all payments and benefits previously paid to or
conferred upon Employee under this Agreement. Employee agrees that if Employee breaches any duties or
obligations Employee has under this Agreement, that Employee has no right to any money under this Agreement
that Employee must return any money paid to Employee hereunder, and that Employee forfeits any right to
receive money under this Agreement. In addition to any other legal or equitable remedies the Company may have
(including any right to damages that it may suffer), the Company shall be entitled to temporary, preliminary
and permanent injunctive relief restraining such breach or imminent breach. Employee hereby expressly
acknowledges that the harm which might result to Company’s business as a result of noncompliance by Employee
with any of the provisions of Section 14 would be largely irreparable. Employee specifically agrees that if
there is a question as to the enforceability of any of the provisions of Section 14 hereof, Employee will not
engage in any conduct inconsistent with or contrary to such Section until after the question has been resolved
by a final judgment of a court of competent jurisdiction. Employee undertakes and agrees that if Employee
breaches or threatens to breach the Agreement, Employee shall be liable for any attorneys’ fees and costs
incurred by Company in enforcing its rights hereunder.

15. Non-Disparagement. In order to avoid unnecessary and unfair damage to UTI’s business
reputation, Employee agrees to make no statements to any parties including, but not limited to, any employees,
customers, vendors, or other parties, whether oral, written or electronic which would tend to disparage, criticize or
ridicule UTI.

16. Company Property and Documents. Employee agrees to return all UTI property and equipment,
including keys and all files and documents pertaining to UTI, including all copies thereof, on or before the date of
Employee’s termination.

17. Reliance. Employee warrants and represents that: (i) Employee has relied on Employee’s own
judgment regarding the consideration for and language of this Agreement; (ii) Employee has been given a reasonable
period of time to consider said Agreement; (iii) no statements made by UTI have in any way coerced or unduly influenced
Employee to execute this Agreement; (iv) this Agreement is written in a manner that is understandable to Employee and
Employee has read and understood all paragraphs of this Agreement; and (v) Employee has been advised to consult with
legal counsel of Employee’s choice regarding this Agreement.

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18. Nature of the Agreement. This Agreement and all provisions thereof, including all representations
and promises contained herein, are contractual and not a mere recital and shall continue in permanent force and effect.
The rights and obligations of the parties under this Agreement shall survive a merger, consolidation or transfer of
ownership or sale of whole or parts of the Company and shall bind any successors or assigns of either party. This
Agreement constitutes the sole and entire agreement of the parties with respect to the subject matter hereof,
superseding all prior agreements and understandings between the parties, and there are no agreements of any nature
whatsoever between the parties hereto except as expressly stated herein. This Agreement may not be modified or changed
unless done so in writing, signed by both parties. In the event that any portion of this Agreement is found to be
unenforceable for any reason whatsoever, the enforceable provision shall continue to be in full force and effect. This
Agreement shall be governed by and construed in accordance with the laws of the State of Arizona, and the parties agree
that the courts of Arizona shall have exclusive jurisdiction over any dispute pertaining to this Agreement.

AGREED AND ACCEPTED:

Dated:     December 12, 2008

/s/ Larry H. Wolff                                        

Larry H. Wolff

Dated:     December 17, 2008

UNIVERSAL TECHNICAL INSTITUTE, INC.

By: /s/ Tom Riggs                                           

Tom Riggs

Senior Vice President, People Services

Return Original To:

Tom Riggs
Senior Vice President, People Services
Universal Technical Institute, Inc. 
20410 N. 19th Avenue, Suite 200
Phoenix, AZ 85027

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