SEC Contract Filing

Filing Date: 2018-02-22

Document Content:
<DOCUMENT>
<TYPE>EX-10.01
<SEQUENCE>2
<FILENAME>exh_1001.htm
<DESCRIPTION>SEVENTH AMENDMENT LOAN AGREEMENT
<TEXT>
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<p style="margin: 0; text-align: right"><b>Exhibit 10.01</b></p>

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<p style="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><b>SEVENTH AMENDMENT LOAN AGREEMENT</b></p>

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<p style="font-size: 10pt; text-align: justify; text-indent: 0.5in; margin: 0pt 0">THIS SEVENTH AMENDMENT TO LOAN AGREEMENT (this
&quot;<b><u>Amendment</u></b>&quot;) is made and entered into as of February 15, 2018 (the &quot;<b><u>Effective Date</u></b>&quot;),
by and between EDUCATIONAL DEVELOPMENT CORPORATION, a Delaware corporation (&quot;<b><u>Borrower</u></b>&quot;), and <font style="text-transform: uppercase">MIDFIRST
Bank, </font>a federally charted savings association (&quot;<b><u>Lender</u></b>&quot;).</p>

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<p style="font-size: 10pt; text-align: center; margin: 0pt 0"><font style="font-variant: small-caps">Background Recitals</font></p>

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<p style="font-size: 10pt; text-align: justify; text-indent: 0.5in; margin: 0pt 0">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Borrower and Lender are parties to that certain Loan Agreement dated as of December 1, 2015, as amended by that certain First Amendment
to Loan Agreement dated as of March 10, 2016, as amended by that certain Second Amendment to Loan Agreement dated as of June 15,
2016, as further amended by that certain Third Amendment to Loan Agreement dated as of June 28, 2016, as further amended by that
certain Fourth Amendment to Loan Agreement dated as of February 7, 2017, as further amended by that certain Fifth Amendment to
Loan Agreement dated as of June 15, 2017, and as further amended by that certain Sixth Amendment to Loan Agreement dated as of
September 1, 2017 (as amended, the &quot;<b><u>Loan Agreement</u></b>&quot;). Unless the context otherwise requires, capitalized
terms used in this Amendment and not otherwise defined herein have the respective meanings assigned to them in the Loan Agreement.</p>

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<p style="font-size: 10pt; text-align: justify; text-indent: 0.5in; margin: 0pt 0">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Borrower has requested that Lender (i) remove the Minimum Tangible Net Worth covenant, (ii) modify the limitation on dividends,
and (iii) reduce the maximum Adjusted Funded Debt to EBITDA Ratio from 3.25:1.00 to 3.00:1.00, and Lender has agreed to such requests,
but only upon the terms and conditions set forth in this Amendment.</p>

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<p style="font-size: 10pt; text-align: justify; margin: 0pt 0; text-indent: 0.5in">NOW, THEREFORE, in consideration of the premises
and the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the Parties agree as follows:</p>

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<p style="font-size: 10pt; text-align: justify; text-indent: 0in; margin: 0pt 0">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>REMOVAL OF MINIMUM TANGIBLE NET WORTH COVENANT</u>.</p>

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<p style="font-size: 10pt; text-align: justify; text-indent: 0.5in; margin: 0pt 0">1.1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Deleted Definitions</u>. Effective as of the Effective Date, the definitions of &quot;Minimum Tangible Net Worth&quot; and &quot;TNW
Test Default&quot; are hereby deleted from the Loan Agreement.</p>

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<p style="font-size: 10pt; text-align: justify; text-indent: 0.5in; margin: 0pt 0">1.2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Deleted Event of Default</u>. <u>Section 5.1(i)</u> of the Loan Agreement is amended in its entirety to read as follows:</p>

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<td style="width: 1in"></td><td style="width: 0.5in"><font style="font-weight: normal; font-variant: normal">(i)</font></td><td style="text-align: justify"><font style="font-weight: normal; font-variant: normal">[Intentionally omitted.]</font></td></tr></table>

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<p style="font-size: 10pt; text-align: justify; text-indent: 0in; margin: 0pt 0">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>DIVIDENDS</u>. <u>Section 4.1(v)</u> of the Loan Agreement is hereby amended in its entirety to read as follows:</p>

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<p style="font-size: 10pt; text-align: justify; text-indent: 0.5in; margin: 0pt 0.5in">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>Limitation
on Dividends and Stock Buybacks</u>. Borrower shall not declare, make or pa