EXECUTION COPY
 

WAIVER AND AMENDMENT
 
WAIVER AND AMENDMENT, dated as of August 17, 2009 (this “Waiver and Amendment”),
to the Credit Agreement, dated as of March 2, 2007 (the “Credit Agreement”),
among RDA HOLDING CO., a Delaware corporation (“Holdings”), THE READER’S DIGEST
ASSOCIATION, INC., a Delaware Corporation (the “Company”), the Overseas
Borrowers from time to time party thereto, including RD GERMAN HOLDINGS GMBH
(the “German Borrower”), each lender from time to time party thereto
(collectively, the “Lenders”), JPMORGAN CHASE BANK, N.A., as administrative
agent (in such capacity, the “Administrative Agent”), and the other agents
parties thereto.
 
W I T N E S S E T H:
 
WHEREAS, Holdings, the Borrowers, the other Loan Parties, the Lenders and the
Administrative Agent have entered into the Credit Agreement and each other Loan
Document (as defined in the Credit Agreement) (collectively with the Credit
Agreement, the “Loan Documents”); capitalized terms used but not otherwise
defined herein shall have the respective meanings ascribed to such terms in the
Loan Documents unless otherwise defined herein or the context otherwise
requires);
 
WHEREAS, pursuant to the Credit Agreement, the Lenders have extended credit to
the Borrowers on the terms set forth in the Credit Agreement;
 
WHEREAS, the Company has notified the Administrative Agent that Holdings, the
Company and the U.S. Guarantors listed in Schedule I attached hereto
(collectively, the “Proposed Filing Entities” or the “Debtors”) are considering
filing voluntary petitions with the United States Bankruptcy Court for the
Southern District of New York or any other United States Bankruptcy Court
acceptable to the Administrative Agent (the “Bankruptcy Court”) initiating
proceedings under Chapter 11 of the Bankruptcy Code (collectively, the
“Bankruptcy Filings”);
 
WHEREAS, the Company also has notified the Administrative Agent that, in the
event of a Bankruptcy Filing, the Company does not intend that the German
Borrower and the Overseas Guarantors listed on Schedule II attached hereto (the
“Non-Debtor Guarantors” and, together with the German Borrower, the “Non-Debtor
Obligors”) will be debtors or debtors-in-possession in the Bankruptcy Filings;
 
WHEREAS, pursuant to Section 8.06 of the Credit Agreement, upon the Bankruptcy
Filings, the CAM Exchange Date will occur, resulting in the outstanding amount
of the Euro Term Loans being converted into Dollars and being held by all
Lenders in accordance with their respective CAM Percentages;
 
WHEREAS, in the event of the Bankruptcy Filings, the Proposed Filing Entities
expect to enter into a debtor-in-possession credit agreement (any such
debtor-in-possession credit agreement substantially in the form as may be
acceptable to the Administrative Agent (with the consent or non-objection of the
Required Lenders), as the same may be amended, supplemented or otherwise
modified from time to time, including any renewal or extension thereof, the “DIP
Credit Agreement”);
 
WHEREAS, the Company has notified the Administrative Agent that certain Defaults
and Events of Default (in addition to, in certain circumstances, acceleration of
the Obligations) may in the future occur as a result of:
 
(i) any of the Bankruptcy Filings,
 
 
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(ii) the execution, delivery, filing, performance and compliance with terms of
the DIP Credit Agreement and the various instruments, documents and agreements
to be entered into in connection therewith in form and substance satisfactory to
the Administrative Agent (collectively, the “DIP Loan Documents”) and any orders
entered into by the Bankruptcy Court in form and substance satisfactory to the
Administrative Agent (the “Orders” and, collectively with the DIP Loan
Documents, the “DIP Documents”) by Holdings and its Subsidiaries party to the
DIP Loan Documents,
 
(iii) any default or acceleration of the obligations under the Indenture, dated
as of March 2, 2007, among the Company, the Guarantors named thereto, and The
Bank of New York as Trustee, relating to the 9% Senior Subordinated Notes due
2017 (the “2017 Notes”) so long as the holders of the 2017 Notes are not
permitted, by operation of Law or contract, to exercise remedies with respect to
Indebtedness owing thereunder or collateral pledged in support thereof, and
 
(iv) the occurrence or existence of any other event, fact, change, condition or
circumstance which constitutes a breach, Default or Event of Default under the
Loan Documents (excluding any breach, Default or Event of Default under (A)
Section 8.01(a) (Non-Payment) of the Credit Agreement as it relates to the
Obligations of the Non-Debtor Obligors in respect of the Euro Term Loans; (B)
Section 8.01(c) (Other Defaults) of the Credit Agreement, to the extent that
such breach, Default or Event of Default has not been as a result of compliance
with applicable law or compliance with or performance under the DIP Documents,
and only to the extent that such occurrence or existence is determined to have
arisen from a failure of Holdings or the Company to cause compliance by any of
the Restricted Subsidiaries that are not Debtors with Section 6.10 (Covenant to
Guarantee Obligations and Give Security), Section 6.12 (Further Assurances),
Section 6.15 (Designation of Subsidiaries) or Section 6.16 (Ownership of
Overseas Borrowers); or (C) Section 8.01(j) (Invalidity of
Collateral  Documents) or Section 8.01(l) (Liens on Collateral) of the Credit
Agreement but only to the extent that such breach, Default or Event of Default
is determined to have occurred and be continuing as a result of the actions (or
non-action) of the Restricted Subsidiaries that are not Debtors); provided that
such breach, Default or Event of Default does not constitute an Event of Default
under the DIP Documents that is continuing and has not been waived by the
requisite parties under the DIP Documents (the events in clauses (i) through
(iv) collectively, the “Specified Events of Default”);
 
WHEREAS, notwithstanding the Specified Events of Default, the Loan Parties have
requested, and the Required Lenders party to this Waiver and Amendment have
consented, until the Waiver Termination Date (as defined below), to waive
certain provisions of the Credit Agreement but only on the terms and conditions
set forth herein; and
 
WHEREAS, the Loan Parties and the Required Lenders party to this Waiver and
Amendment have agreed to amend certain provisions of the Credit Agreement but
only on the terms and conditions set forth herein.
 
NOW, THEREFORE, the parties hereto hereby agree as follows:
 
1. Waiver.  Subject to the terms and conditions set forth herein and
notwithstanding anything in the Loan Documents to the contrary, effective until
the Waiver Termination Date, the Lenders hereby waive any existing or future
Default or Event of Default caused by any Specified Event of Default (which
shall be deemed not to be continuing for all purposes of the Loan Documents), in
each case solely in respect of the Obligations of the Non-Debtor Obligors.  For
the avoidance of doubt, this Waiver and Amendment shall not affect the operation
of the CAM as set forth in Section 8.06 of the Credit Agreement.

 
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2. DIP Consent.  Subject to the terms and conditions set forth herein, the
Lenders consent to the execution, delivery and performance of, and compliance
with the terms by, each Loan Party (or Subsidiary of a Loan Party) of the DIP
Loan Documents and the performance of and compliance with the terms of the
Orders.
 
3. Amendments.  The Credit Agreement is hereby amended as follows:
 
(a) by deleting in its entirety the proviso immediately following clause (d) in
Section 8.02 of the Credit Agreement solely with respect to the Euro Term Loans
and related Obligations;
 
(b) by deleting clause (a) of the definition of “Applicable Rate” in its
entirety and inserting in lieu thereof the following:
 
“(a) (i) with respect to U.S. Term Loans, (A) for Eurocurrency Rate Loans, 2.00%
and (B) for Base Rate Loans, 1.00%, and (ii) with respect to Euro Term Loans,
(A) for Eurocurrency Rate Loans, 3.50% and (B) for Base Rate Loans, 2.50%”;
 
(c) by adding the following proviso to the end of the definition of
“Eurocurrency Rate”:
 
“provided that, in the case of the Euro Term Loans, in no event shall the
Eurocurrency Rate be less than 3.50%”; and
 
(d) by deleting the second paragraph of Section 8.06 of the Credit Agreement in
its entirety.
 
For the avoidance of doubt, for so long as no Waiver Termination Date has
occurred, the Default Rate shall not apply to the Euro Term Loans solely by
virtue of the existence of any Default or Event of Default that is waived
pursuant to Section 1.
 
4. Conditions to Effectiveness.  This Waiver and Amendment shall become
effective on the date (the “Waiver and Amendment Effective Date”) on which:
 
(a) with respect to the waiver contained in Section 1 relating to the Bankruptcy
Filings and the amendments contained in Section 3, the Administrative Agent
shall have received counterparts of this Waiver duly executed by the Company and
the Required Lenders; and
 
(b) with respect to the waiver contained in Section 1 relating to any Specified
Events of Default other than the Bankruptcy Filings, the conditions in clause
(a) above shall have been satisfied, the Bankruptcy Filings shall have occurred,
an Order shall have been entered into by the Bankruptcy Court approving the DIP
Loan Documents and the entering into of the DIP Loan Documents, and the DIP
Credit Agreement shall have become effective in accordance with its terms.
 
For the avoidance of doubt, after the conditions set forth in clause (a) above
have been satisfied and so long as the Waiver Termination Date shall not have
occurred, the Bankruptcy Filings shall not result in the acceleration of the
Euro Term Loans pursuant to Section 8.02 of the Credit Agreement.
 
5. Waiver Termination Events.  Notwithstanding the foregoing, the waiver in
Section 1 shall immediately terminate (the date of such termination, the “Waiver
Termination Date”) upon the occurrence of any of the following events (each a
“Waiver Termination Event”):
 
 
(a) the DIP Credit Agreement is not entered into within 20 days of the date
hereof;
 
 
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(b) the occurrence of the “Termination Date” as defined in the DIP Credit
Agreement, as the same may be renewed or extended from time to time in
accordance with its terms;
 
(c) the obligations under the DIP Credit Agreement shall have been accelerated
and shall have become due and payable prior to the stated maturity date (as
extended, if applicable); or
 
 
(d) the occurrence and the continuation of an Event of Default as defined in the
DIP Credit Agreement to the extent, and only to the extent, that the Required
Lenders have notified the Company in writing of their determination to terminate
such waiver (it being understood that the Required Lenders may make such
determination in their sole discretion);
 
provided, that in the case of any Waiver Termination Event, solely with respect
to the Euro Term Loan, the Lenders party hereto agree that they shall, for a
period of 25 days following such Waiver Termination Event, abstain from
exercising any enforcement actions against the German Borrower and the Overseas
Guarantors (it being understood and agreed that this shall not, for the
avoidance of doubt, limit the right of the Administrative Agent and the Lenders
to accelerate the Euro Term Loan prior to the end of such 25-day period).

6. Going Concern Statement. Without assuming any liability or assuming any
obligation with respect to the German Borrower, Holdings or any Subsidiary of
Holdings, the Administrative Agent and the Lenders, as of the date hereof and
based on the information available to them, are approving this Waiver and
Amendment on the belief that it is in the best interest of all parties hereto
that a restructuring solution for Holdings and its Subsidiaries be reached that
would enable the German Borrower to continue as a going concern.  For the
avoidance of doubt, this statement does not affect any of the rights of the
Administrative Agent and the Lenders under the Credit Agreement as amended by
this Waiver and Amendment.
 
7. Representation and Warranties.  After giving effect to the waivers and
amendments contained herein, on the Waiver and Amendment Effective Date, each of
Holdings and the Company hereby confirms that the representations and warranties
set forth in Section 5 of the Credit Agreement are true and correct in all
material respects on and as of the Waiver and Amendment Effective Date with the
same effect as though made on and as of the Waiver and Amendment Effective Date,
except to the extent such representations and warranties expressly relate to an
earlier date (in which case such representations and warranties were true and
correct in all material respects as of such earlier date).
 
8. Continuing Effect; No Other Waivers or Amendments.   This Waiver and
Amendment shall not constitute an amendment or waiver of or consent to any
provision of the Credit Agreement or the other Loan Documents except as
expressly stated herein and shall not be construed as an amendment, waiver or
consent to any action on the part of the Loan Parties or their respective
Subsidiaries that would require an amendment or waiver of any Loan Document or
the consent of the Administrative Agent or the Lenders except as expressly
stated herein. Except as expressly waived or amended hereby, the provisions of
the Credit Agreement and the other Loan Documents are and shall remain in full
force and effect in accordance with their terms.
 
9. Counterparts.  This Waiver and Amendment may be executed in any number of
separate counterparts by the parties hereto (including by telecopy or via
electronic mail), each of which counterparts when so executed shall be an
original, but all the counterparts shall together constitute one and the same
instrument.
 
 
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10. Payment of Fees and Expenses.  The Loan Parties agree to pay or reimburse
the Administrative Agent for all of its reasonable out-of-pocket costs and
reasonable expenses incurred in connection with this Waiver and Amendment, any
other documents prepared in connection herewith and the transactions
contemplated hereby, including, without limitation, the reasonable fees, charges
and disbursements of counsel to the Administrative Agent.
 
11. GOVERNING LAW.  THIS WAIVER AND AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES UNDER THIS WAIVER AND AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
 

 
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IN WITNESS WHEREOF, the parties hereto have caused this Waiver and Amendment to
be executed and delivered by their respective duly authorized officers as of the
date first above written.
 

 
RDA HOLDING CO.
         
By:         /s/ Thomas Williams
 
Name:  Thomas Williams
 
Title:    Senior Vice President, Chief Financial
Officer & Treasurer

 
THE READER'S DIGEST ASSOCIATION, INC.
         
By:         /s/ Thomas Williams
 
Name:  Thomas Williams
 
Title:    Senior Vice President & Chief Financial
Officer

 

 
JPMORGAN CHASE BANK, N.A., as Administrative Agent and as a Lender
         
By:         /s/ Elizabeth A. Kelley
 
Name:  Elizabeth A. Kelley
 
Title:    Managing Director

 

 
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Malibu CFPI Loan Funding LLC
         
By:         /s/ Adam Jacobs
 
Name:  Adam Jacobs
 
Title:    Attorney-in-Fact

 
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Pinehurst Trading, Inc.
         
By:         /s/ Stacy Lai
 
Name:  Stacy Lai
 
Title:    Assistant Vice President

 
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Saturn CLO, LTD.
By: AIG Global Investment Corp., As Collateral Manager
         
By:         /s/ Steven S. Oh
 
Name:   Steven S. Oh
 
Title:     Managing Director

 
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American International Group, Inc.
By: AIG Global Investment Corp., Its Investment Adviser
         
By:         /s/ Steven S. Oh
 
Name:    Steven S. Oh
 
Title:      Managing Director

 
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Euro Galaxy II CLO BV
By: AIG Global Investment Corp. (Europe) Ltd.
         
By:         /s/ Steven S. Oh
 
Name:  Steven S. Oh
 
Title:    Authorized Signatory

 
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Euro Galaxy CLO BV
By: AIG Global Investment Corp. Europe (Ltd.)
         
By:         /s/ Steven S. Oh
 
Name:  Steven S. Oh
 
Title:    Authorized Signatory

 
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Galaxy V CLO, LTD
By: AIG Global Investment Corp., Its Collateral Manager
         
By:         /s/ Steven S. Oh
 
Name:   Steven S. Oh
 
Title:     Managing Director

 
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Galaxy VI CLO, Ltd.
By: AIG Global Investment Corp., Its Collateral Manager
         
By:         /s/ Steven S. Oh
 
Name:  Steven S. Oh
 
Title:    Managing Director

 
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Galaxy VII CLO, LTD.
By: AIG Global Investment Corp. As Collateral Manager
         
By:         /s/ Steven S. Oh
 
Name:   Steven S. Oh
 
Title:     Managing Director

 
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Galaxy VIII CLO, LTD.
By: AIG Global Investment Corp. As Collateral Manager
         
By:         /s/ Steven S. Oh
 
Name:   Steven S. Oh
 
Title:     Managing Director

 
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Northwoods Capital IV, Limited
By:  Angelo, Gordon & Co., L.P. As Collateral Manager
 
Northwoods Capital V, Limited
By:  Angelo, Gordon & Co., L.P. As Collateral Manager
 
Northwoods Capital VI, Limited
By:  Angelo, Gordon & Co., L.P. As Collateral Manager
 
Northwoods Capital VII, Limited
By:  Angelo, Gordon & Co., L.P. As Collateral Manager
 
         
By:         /s/Bruce Martin
 
Name:   Bruce Martin
 
Title:     Managing Director

 
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ARES ENHANCED LOAN INVESMENT STRATEGY II, LTD.
 
By:  Ares Enhanced Loan Management II, L.P., Investment Manager
 
By:  Ares Enhanced Loan GP II, LLC, Its General Partner
 
 
Ares IIR CLO Ltd.
 
By:  Ares CLO Management IIR, L.P., Investment Manager
 
By:  Ares CLO GP IIR, LLC, Its General Partner
 
       
By:         /s/ Americo Cascella
By:         /s/ Americo Cascella
Name:  Americo Cascella
Name:   Americo Cascella
Title:    Authorized Signatory
Title:     Authorized Signatory

Ares VII CLO Ltd.
 
By:  Ares CLO Management VII, L.P., Investment Manager
 
By:  Ares CLO GP VII, LLC, Its General Partner
 
 
Ares VIII CLO Ltd.
 
By:  Ares CLO Management VIII, L.P., Investment Manager
 
By:  Ares CLO GP VIII, LLC Its General Partner
 
       
By:         /s/ Americo Cascella
By:         /s/ Americo Cascella
Name:  Americo Cascella
Name:   Americo Cascella
Title:    Authorized Signatory
Title:     Authorized Signatory

ARES ENHANCED LOAN INVESTMENT STRATEGY III, LTD.
 
By:  ARES ENHANCED LOAN MANAGEMENT III, L.P.
By:  ARES ENHANCED LOAN III GP, LLC, ITS GENERAL PARTNER
By:  ARES MANAGEMENT LLC, ITS MANAGER
 
ARES XII CLO LTD.
 
By:  ARES CLO MANAGEMENT XII, L.P.
By:  ARES CLO GP XII, LLC, ITS GENERAL PARTNER
By:  ARES MANAGEMENT LLC, ITS MANAGER
 
       
By:         /s/ Americo Cascella
By:         /s/ Americo Cascella
Name:   Americo Cascella
Name:   Americo Cascella
Title:     Authorized Signatory
Title:     Authorized Signatory

 
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ARES IIIR/IVR CLO LTD.
 
By:  ARES CLO MANAGEMENT IIIR/IVR, L.P.
 
By:  ARES CLO GP IIIR/IVR, LLC, ITS GEENRAL PARTNER
 
By:  ARES MANAGEMENT LLC, ITS MANAGER
Ares VR CLO Ltd.
 
By:  Ares CLO Management VR, L.P., Investment Manager
 
By:  Ares CLO GP VR, LLC, Its General Partner
 
       
By:         /s/ Americo Cascella
By:         /s/ Americo Cascella
Name:  Americo Cascella
Name:   Americo Cascella
Title:    Authorized Signatory
Title:     Authorized Signatory

Ares VIR CLO Ltd.
 
By:  Ares CLO Management VIR, L.P., Investment Manager
 
By:  Ares CLO GP VIR, LLC, Its General Partner
Ares IX CLO Ltd.
 
By:  Ares CLO Management IX, L.P., Investment Manager
 
By:  Ares CLO GP IX, LLC, Its General Partner
 
By:  Ares Management LLC, Its Managing Member
 
       
By:         /s/ Americo Cascella
By:         /s/ Americo Cascella
Name:   Americo Cascella
Name:   Americo Cascella
Title:     Authorized Signatory
Title:     Authorized Signatory

Ares X CLO Ltd.
 
By:  Ares CLO Management X, L.P., Investment Manager
 
By:  Ares CLO GP X, LLC, Its General Partner
ARES XI CLO Ltd.
 
By:  ARES CLO MANAGEMENT XI, L.P.
 
By:  ARES CLO GP XI, LLC, Its General Partner
 
By:  ARES MANAGEMENT LLC, Its Manager
 
       
By:         /s/ Americo Cascella
By:         /s/ Americo Cascella
Name:   Americo Cascella
Name:  Americo Cascella
Title:     Authorized Signatory
Title:    Authorized Signatory

 
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CANPARTNERS INVESTMENTS IV, LLC, a California limited liability company
 
By:  CANYON CAPITAL ADVISORS LLC, a Delaware limited liability company, its
Manager
         
By:         /s/ Mitchell R. Julis
 
Name:   Mitchell R. Julis
 
Title:     Co-Chairman and Co-CEO

 
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Canyon Capital CLO 2004-1, LTD.
Canyon Capital CLO 2006-1, LTD.
Canyon Capital CLO 2007-1, LTD.
BY:  Canyon Capital Advisors LLC, a Delaware Limited Liability Company, their
Collateral Manager
         
By:         /s/ Michael M. Leyland
 
Name:   Michael M. Leyland
 
Title:     Authorized Signatory

 
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CANYON SPECIAL OPPORTUNITIES MASTER FUND (CAYMAN), LTD.,
 
an Exempted Company incorporated in the
Cayman Islands with limited liability
 
By:  CANYON CAPITAL ADVISORS LLC, its investment Advisor
 
A Delaware limited liability company, its
Investment Advisor
         
By:         /s/ Mitchell R. Julis
 
Name:  Mitchell R. Julis
 
Title:    Co-Chairman and Co-CEO

 
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Carlyle Credit Partners Financing I, LTD.
         
By:         /s/ Linda Pace
 
Name:   Linda Pace
 
Title:     Managing Director

 
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Carlyle High Yield Partners IV, Ltd.
         
By:         /s/ Linda Pace
 
Name:  Linda Pace
 
Title:    Managing Director

 
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Carlyle High Yield Partners X, Ltd.
         
By:         /s/ Linda Pace
 
Name:   Linda Pace
 
Title:     Managing Director

 
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Carlyle High Yield Partners IX, Ltd.
         
By:         /s/ Linda Pace
 
Name:  Linda Pace
 
Title:    Managing Director

 
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Carlyle High Yield Partners VIII Ltd.
         
By:         /s/ Linda Pace
 
Name:   Linda Pace
 
Title:     Managing Director

 
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Carlyle High Yield Partners VII, Ltd.
         
By:         /s/ Linda Pace
 
Name:  Linda Pace
 
Title:    Managing Director

 
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Carlyle High Yield Partners VI, Ltd.
         
By:         /s/ Linda Pace
 
Name:  Linda Pace
 
Title:    Managing Director

 
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Chatham Asset High Yield Master Fund, Ltd.
 
By:  Chatham Asset Management, LLC Investment Advisor
         
By:         /s/ Kevin O’Malley
 
Name:  Kevin O’Malley
 
Title:    Member

 
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Chatham Asset Leverage Loan Offshore Fund, Ltd.
 
By:  Chatham Asset Management, LLC Investment Advisor
         
By:         /s/ Kevin O’Malley
 
Name:  Kevin O’Malley
 
Title:    Member

 
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CITICORP NORTH AMERICA, INC.
         
By:         /s/ Michael C. Becker
 
Name:   Michael C. Becker
 
Title:     Managing Director

 
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Contrarian Funds LLC
By Contrarian Capital Management L.L.C. as manager, as a Lender
         
By:         /s/ Janice M. Stanton
 
Name:  Janice M. Stanton
 
Title:    Member

 
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Atrium V
         
By:         /s/ Linda R. Karn
 
Name:  Linda R. Karn
 
Title:    Authorized Signatory

 
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Atrium VI
         
By:         /s/ Linda R. Karn
 
Name:  Linda R. Karn
 
Title:    Authorized Signatory

 
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Cadogao Square CLO II B.V.
         
By:         /s/ Roberta Girard
 
Name:   Roberta Girard
 
Title:     Vice President

     
By:         /s/ Daragh Murphy
 
Name:    Daragh Murphy
 
Title:      Vice President
       

 
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Cadogao Square CLO III B.V.
         
By:         /s/ Roberta Girard
 
Name:   Roberta Girard
 
Title:     Vice President

     
By:         /s/ Daragh Murphy
 
Name:    Daragh Murphy
 
Title:      Vice President
       

 
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Cadogao Square CLO IV B.V.
         
By:         /s/ Roberta Girard
 
Name:     Roberta Girard
 
Title:       Vice President

     
By:         /s/ Daragh Murphy
 
Name:      Daragh Murphy
 
Title:        Vice President
       

 
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Castle Garden Funding
         
By:         /s/ Linda B. Karn
 
Name:   Linda B. Karn
 
Title:     Authorized Signatory

 
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Credit Suisse Syndicated Loan Fund
         
By:         /s/ Linda B. Karn
 
Name:   Linda B. Karn
 
Title:     Authorized Signatory

 
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CSAM Funding III
         
By:         /s/ Linda B. Karn
 
Name:  Linda B. Karn
 
Title:    Authorized Signatory

 
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CSAM Funding IV
         
By:         /s/ Linda B. Karn
 
Name:   Linda B. Karn
 
Title:     Authorized Signatory

 
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Madison Park Funding I, Ltd.
         
By:         /s/ Linda B. Karn
 
Name:   Linda B. Karn
 
Title:     Authorized Signatory

 
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Madison Park Funding II, Ltd.
         
By:         /s/ Linda B. Karn
 
Name:   Linda B. Karn
 
Title:     Authorized Signatory

 
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Madison Park Funding III, Ltd.
         
By:         /s/ Linda B. Karn
 
Name:   Linda B. Karn
 
Title:     Authorized Signatory

 
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Madison Park Funding IV, Ltd.
         
By:         /s/ Linda B. Karn
 
Name:   Linda B. Karn
 
Title:     Authorized Signatory

 
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Madison Park Funding V, Ltd.
         
By:         /s/ Linda B. Karn
 
Name:   Linda B. Karn
 
Title:     Authorized Signatory

 
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Madison Park Funding VI, Ltd.
         
By:         /s/ Linda B. Karn
 
Name:   Linda B. Karn
 
Title:     Authorized Signatory

 
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Credit Suisse Loan Funding LLC
         
By:         /s/ Robert Healey
 
Name:    Robert Healey
 
Title:      Director

     
By:         /s/ Ronald Gotz
 
Name:     Ronald Gotz
 
Title:       Authorized Signatory
       

 
49

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DK Acquisition Partners, L.P.
 
By:  M.H. Davidson & Co., Its General Partner
         
By:         /s/ Avi Friedman
 
Name:    Avi Friedman
 
Title:      General Partner

 
50

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Big Sky III Senior Loan Trust
 
By:  Eaton Vance Management As Investment Advisor
         
By:         /s/ Michael Kinahan
 
Name:   Michael Kinahan
 
Title:     Vice President

 
51

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Eaton Vance CFO IX Ltd.
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Michael Kinahan
 
Name:   Michael Kinahan
 
Title:     Vice President

 
52

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Eaton Vance CDO VII PLC
 
By:  Eaton Vance Management as Interim Investment Advisor
         
By:         /s/ Michael Kinahan
 
Name:   Michael Kinahan
 
Title:     Vice President

 
53

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Eaton Vance CDO VIII PLC
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Michael Kinahan
 
Name:    Michael Kinahan
 
Title:      Vice President

 
54

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Eaton Vance CDO X PLC
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Michael Kinahan
 
Name:   Michael Kinahan
 
Title:     Vice President

 
55

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Eaton Vance Floating-Rate Income Trust
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Michael Kinahan
 
Name:   Michael Kinahan
 
Title:     Vice President

 
56

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Grayson & Co.
 
By:  Boston Management and Research as Investment Advisor
         
By:         /s/ Michael Kinahan
 
Name:  Michael Kinahan
 
Title:    Vice President

 
57

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Eaton Vance Institutional Senior Loan Fund
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Michael Kinahan
 
Name:  Michael Kinahan
 
Title:    Vice President

 
58

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Eaton Vance Limited Duration Income Fund
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Michael Kinahan
 
Name:   Michael Kinahan
 
Title:     Vice President

 
59

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Eaton Vance Loss Opportunities Fund, LTD
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Michael Kinahan
 
Name:  Michael Kinahan
 
Title:    Vice President

 
60

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Eaton Vance Medallion Floating-Rate Income Portfolio
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Michael Kinahan
 
Name:  Michael Kinahan
 
Title:    Vice President

 
61

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Senior Debt Portfolio
 
By:  Boston Management and Research as Investment Advisor
         
By:         /s/ Michael Kinahan
 
Name:  Michael Kinahan
 
Title:    Vice President

 
62

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Eaton Vance Senior Floating-Rate Trust
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Michael Kinahan
 
Name:  Michael Kinahan
 
Title:    Vice President

 
63

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Eaton Vance Short Duration Diversified Income Fund
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Michael Kinahan
 
Name:   Michael Kinahan
 
Title:     Vice President

 
64

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Eaton Vance VT Floating-Rate Income Fund
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Michael Kinahan
 
Name:  Michael Kinahan
 
Title:    Vice President

 
65

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THE NORINCHUKIN BANK, NEW YORK BRANCH, through State Street Bank and Trust
Company N.A. as Fiduciary Custodian
 
By:  Eaton Vance Management, Attorney-in-Fact
         
By:         /s/ Michael Kinahan
 
Name:   Michael Kinahan
 
Title:     Vice President

 
66

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Eaton Vance Senior Income Trust
 
By:  Eaton Vance Management As Investment Advisor
         
By:         /s/ Michael Kinahan
 
Name:  Michael Kinahan
 
Title:    Vice President

 
67

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General Electric Capital Corporation
         
By:         /s/ Jasen Soto
 
Name:  Jasen Soto
 
Title:   Duly Authorized Signatory

 
68

--------------------------------------------------------------------------------

 

 
GN3 SIP Limited
 
By:  GoldenTree Asset Management, LP
         
By:         /s/ Karen Weber
 
Name:  Karen Weber
 
Title:    Authorized Signatory

 
69

--------------------------------------------------------------------------------

 

 
GoldenTree 2004 Trust
 
By:  GoldenTree Asset Management, LP
         
By:         /s/ Karen Weber
 
Name:   Karen Weber
 
Title:     Authorized Signatory

 
70

--------------------------------------------------------------------------------

 

 
GoldenTree Credit Opportunities Financing I, Limited
 
By:  GoldenTree Asset Management, LP
         
By:         /s/ Karen Weber
 
Name:   Karen Weber
 
Title:     Authorized Signatory

 
71

--------------------------------------------------------------------------------

 

 
GoldenTree Credit Opportunities Master Fund, Ltd.
 
By:  GoldenTree Asset Management, LP
         
By:         /s/ Karen Weber
 
Name:    Karen Weber
 
Title:      Director – Bank Debt

 
72

--------------------------------------------------------------------------------

 

 
GoldenTree Credit Opportunities Second Financing, Limited
 
By:  GoldenTree Asset Management, LP
         
By:         /s/ Karen Weber
 
Name:  Karen Weber
 
Title:    Authorized Signatory

 
73

--------------------------------------------------------------------------------

 

 
GoldenTree Leverage Loan Financing I, Limited
 
By:  GoldenTree Leverage Loan Manager, LLC
         
By:         /s/ Karen Weber
 
Name:   Karen Weber
 
Title:     Authorized Signatory

 
74

--------------------------------------------------------------------------------

 

 
GoldenTree Loan Opportunities III, Limited
 
By:  GoldenTree Asset Management, LP
         
By:         /s/ Karen Weber
 
Name:   Karen Weber
 
Title:     Authorized Signatory

 
75

--------------------------------------------------------------------------------

 

 
GoldenTree Loan Opportunities IV, Limited
 
By:  GoldenTree Asset Management, LP
         
By:         /s/ Karen Weber
 
Name:  Karen Weber
 
Title:    Authorized Signatory

 
76

--------------------------------------------------------------------------------

 

 
GoldenTree Loan Opportunities V, Limited
 
By:  GoldenTree Asset Management, LP
         
By:         /s/ Karen Weber
 
Name:  Karen Weber
 
Title:    Authorized Signatory

 
77

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NCM GT 2008-2 LLC
         
By:         /s/ Buckner Toney
 
Name:  Buckner Toney
 
Title:    Authorized Signatory

 
78

--------------------------------------------------------------------------------

 

 
GALE FORCE 1 CLO, LTD.
 
By:  GSO/Blackstone Debt Funds Management LLC as Collateral Manager
         
By:         /s/ Daniel H. Smith
 
Name:   Daniel H. Smith
 
Title:     Authorized Signatory

 
79

--------------------------------------------------------------------------------

 

 
GALE FORCE 2 CLO, LTD.
 
By:  GSO/Blackstone Debt Funds Management LLC as Collateral Manager
         
By:         /s/ Daniel H. Smith
 
Name:  Daniel H. Smith
 
Title:    Authorized Signatory

 
80

--------------------------------------------------------------------------------

 

 
GALE FORCE 3 CLO, LTD.
 
By:  GSO/Blackstone Debt Funds Management LLC as Collateral Manager
         
By:         /s/ Daniel H. Smith
 
Name:  Daniel H. Smith
 
Title:    Authorized Signatory

 
81

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LOAN FUNDING VI LLC for itself or as agent for Corporate Loan Funding VI LLC
         
By:         /s/ Dean T. Criares
 
Name:  Dean T. Criares
 
Title:    Authorized Signatory

 
82

--------------------------------------------------------------------------------

 

 
MONUMENT PARK CDO LTD.
 
By:  Blackstone Debt Advisors L.P. as Collateral Manager
         
By:         /s/ Dean T. Criares
 
Name:  Dean T. Criares
 
Title:    Authorized Signatory

 
83

--------------------------------------------------------------------------------

 

 
TRIBECA PARK CLO LTD.
 
By:  GSO / Blackstone Debt Funds Management LLC as Collateral Manager
         
By:         /s/ Daniel H. Smith
 
Name:   Daniel H. Smith
 
Title:     Authorized Signatory

 
84

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UNION SQUARE CDO LTD.
 
By:  Blackstone Debt Advisors L.P. as Collateral Manager
         
By:         /s/ Dean T. Criares
 
Name:   Dean T. Criares
 
Title:     Authorized Signatory

 
85

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GULF STREAM-SEXTANT CLO 2007-1 LTD.
 
By:  Gulf Stream Asset Management, LLC as Collateral Manager
         
By:         /s/ Barry K. Love
 
Name:  Barry K. Love
 
Title:    Chief Credit Officer

 
86

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GULF STREAM-COMPASS CLO 2009-1 LTD.
 
By:  Gulf Stream Asset Management, LLC as Collateral Manager
         
By:         /s/ Barry K. Love
 
Name:  Barry K. Love
 
Title:    Chief Credit Officer

 
87

--------------------------------------------------------------------------------

 

 
GULF STREAM-COMPASS CLO 2002-1 LTD.
 
By:  Gulf Stream Asset Management, LLC as Collateral Manager
         
By:         /s/ Barry K. Love
 
Name:   Barry K. Love
 
Title:     Chief Credit Officer

 
88

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GULF STREAM-COMPASS CLO 2004-1 LTD.
 
By:  Gulf Stream Asset Management, LLC as Collateral Manager
         
By:         /s/ Barry K. Love
 
Name:   Barry K. Love
 
Title:     Chief Credit Officer

 
89

--------------------------------------------------------------------------------

 

 
GULF STREAM-COMPASS CLO 2007, LTD.
 
By:  Gulf Stream Asset Management, LLC as Collateral Manager
         
By:         /s/ Barry K. Love
 
Name:   Barry K. Love
 
Title:     Chief Credit Officer

 
90

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Hartford Institutional Trust, on behalf of its Floating Rate Bank Loan Series
 
By:  Hartford Investment Management Company, its Investment Manager
         
By:         /s/Michael J. Bacevich
 
Name:   Michael J. Bacevich
 
Title:     Managing Director

 
91

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The Hartford Mutual Funds, Inc., on behalf of The Hartford Floating Rate Fund
 
By:  Hartford Investment Management Company, its Sub-advisor
         
By:         /s/Michael J. Bacevich
 
Name:  Michael J. Bacevich
 
Title:    Managing Director

 
92

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ING Investment Management Co.
         
By:         /s/Mohamed Basma
 
Name:  Mohamed Basma
 
Title:    Vice President

 
For the Following:
 
 
ING Investment Management CLO I, Ltd.
ING Investment Management CLO II, Ltd.
ING Investment Management CLO III, Ltd.
ING Investment Management CLO IV, Ltd.
ING Investment Management CLO I, Ltd.
ING Investment Management CLO IV Ltd.
ING International II Senior Bank Loans Euro
ING International (II) Senior Bank Loans USD
ING Prime Rate Trust
ING Senior Income Fund
 
               

 
93

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GANNETT PEAK CLO I, LTD.
 
By:  McDonnell Investment Management, LLC, as Investment Manager
         
By:         /s/Kathleen A. Zarn
 
Name:    Kathleen A. Zarn
 
Title:      Vice President

 
94

--------------------------------------------------------------------------------

 

 
MCDONNELL LOAN OPPORTUNITY LTD.
 
By:  McDonnell Investment Management, LLC, as Investment Manager
         
By:         /s/Kathleen A. Zarn
 
Name:   Kathleen A. Zarn
 
Title:     Vice President

 
95

--------------------------------------------------------------------------------

 

 
WIND RIVER CLO I LTD.
 
By:  McDonnell Investment Management, LLC, as Manager
         
By:         /s/Kathleen A. Zarn
 
Name:   Kathleen A. Zarn
 
Title:     Vice President

 
96

--------------------------------------------------------------------------------

 

 
WIND RIVER CLO II – TATE INVESTORS, LTD.
 
By:  McDonnell Investment Management, LLC, as Manager
         
By:         /s/Kathleen A. Zarn
 
Name:    Kathleen A. Zarn
 
Title:      Vice President

 
97

--------------------------------------------------------------------------------

 

 
Merrill Lynch Capital Corporation
         
By:         /s/ Stephanie Vallillo
 
Name:  Stephanie Vallillo
 
Title:    Vice President

 
98

--------------------------------------------------------------------------------

 

 
MetLife Insurance Company of Connecticut
 
By:  Metropolitan Life Insurance Company, its investment manager
         
By:         /s/ Reena Pally
 
Name:   Reena Pally
 
Title:     Director

 
99

--------------------------------------------------------------------------------

 

 
Clydesdale CLO 2006, Ltd.
 
By:  Nomura Corporate Research and Asset Management Inc. as Investment Manager
         
By:         /s/ Robert Hoffman
 
Name:    Robert Hoffman
 
Title:      Executive Director

 
100

--------------------------------------------------------------------------------

 

 
Clydesdale CLO 2007, Ltd.
 
By:  Nomura Corporate Research and Asset Management Inc. as Investment Manager
         
By:         /s/ Robert Hoffman
 
Name:  Robert Hoffman
 
Title:    Executive Director

 
101

--------------------------------------------------------------------------------

 

 
Nomura Bond & loan Fund
 
By:  Mitsubishi UFJ Trust & Banking Corporation as Trustee
 
By:  Nomura Corporate Research and Asset Management Inc. Attorney in Fact
         
By:         /s/ Robert Hoffman
 
Name:  Robert Hoffman
 
Title:    Executive Director

 
102

--------------------------------------------------------------------------------

 

 
NCRAM Senior Loan Trust 2005
 
By:  Nomura Corporate Research and Asset Management Inc. as Investment Manager
         
By:         /s/ Robert Hoffman
 
Name:    Robert Hoffman
 
Title:      Executive Director

 
103

--------------------------------------------------------------------------------

 

 
Primus CLO I, Ltd.
 
By: Primus Asset Management Its Collateral Manager
         
By:         /s/N. J. Campbell, Jr.
 
Name:   N. J. Campbell, Jr.
 
Title:     PM

 
104

--------------------------------------------------------------------------------

 

 
Cavalry CLO I, LTD.
 
By:  Regiment Capital Management, LLC as its Investment Advisor
         
By:         /s/ Mark Brostowski
 
Name:   Mark Brostowski
 
Title:     Authorized Signatory

 
105

--------------------------------------------------------------------------------

 

 
Grand Central Asset Trust REG Series
         
By:         /s/ Adam Jacobs
 
Name:    Adam Jacobs
 
Title:      Attorney-in-Fact

 
106

--------------------------------------------------------------------------------

 

 
PRESIDENT & FELLOWS OF HARVARD COLLEGE
 
By:  Regiment Capital Management, LLC as its Investment Advisor
         
By:         /s/ Mark Brostowski
 
Name:    Mark Brostowski
 
Title:      Authorized Signatory

 
107

--------------------------------------------------------------------------------

 

 
REGIMENT CAPITAL LTD
 
By:  Regiment Capital Management, LLC as its Investment Advisor
         
By:         /s/ Mark Brostowski
 
Name:  Mark Brostowski
 
Title:    Authorized Signatory

 
108

--------------------------------------------------------------------------------

 

 
XL Investment Management Ltd.
 
By:  Regiment Capital Management, LLC as its Investment Advisor
         
By:         /s/ Mark Brostowski
 
Name:   Mark Brostowski
 
Title:     Authorized Signatory

 
109

--------------------------------------------------------------------------------

 

 
RiverSource Bond Series, Inc. – RiverSource Floating Rate Fund
         
By:         /s/ Robin C. Stancil
 
Name:    Robin C. Stancil
 
Title:      Assistant Vice President

 
110

--------------------------------------------------------------------------------

 

 
Cent CDO 12 Limited
 
By:  RiverSource Investments, LLC as Collateral Manager
         
By:         /s/ Robin C. Stancil
 
Name:  Robin C. Stancil
 
Title:    Director of Operations

 
111

--------------------------------------------------------------------------------

 

 
Cent CDO 14 Limited
 
By:  RiverSource Investments, LLC as Collateral Manager
         
By:         /s/ Robin C. Stancil
 
Name:   Robin C. Stancil
 
Title:     Director of Operations

 
112

--------------------------------------------------------------------------------

 

 
Trimaran CLO VII Ltd.
 
By:  Trimaran Advisors, L.L.C.
         
By:         /s/ Dominick J. Mazzitelli
 
Name:  Dominick J. Mazzitelli
 
Title:    Managing Director

 
113

--------------------------------------------------------------------------------

 

 
Foothill CLO 1, Ltd.
 
By:  The Foothill Group, Inc., as attorney-in-fact
         
By:         /s/ Greg Apkarian
 
Name:   Greg Apkarian
 
Title:     Managing Member

 
114

--------------------------------------------------------------------------------

 

 
The Foothill Group, Inc.
         
By:         /s/ Greg Apkarian
 
Name:  Greg Apkarian
 
Title:    Vice President

 
115

--------------------------------------------------------------------------------

 
Schudule I
 
U.S. GUARANTOR DEBTORS
 
 
Alex Inc.
Allrecipes.com, Inc.
Ardee Music Publishing, Inc.
Christmas Angel Productions, Inc.
CompassLearning, Inc.
Direct Entertainment Media Group, Inc.
Direct Holdings Americas Inc.
Direct Holdings Custom Publishing Inc.
Direct Holdings Customer Service, Inc.
Direct Holdings Education Inc.
Direct Holdings Libraries Inc.
Direct Holdings U.S. Corp.
Funk & Wagnalls Yearbook Corp.
Gareth Stevens, Inc.
Home Service Publications, Inc..
Pegasus Asia Investments, Inc.
Pegasus Investment, Inc.
Pegasus Sales, Inc.
Pleasantville Music Publishing, Inc.
R.D. Manufacturing Corporation
RD Large Edition, Inc.
RD Publications, Inc.
RD Walking, Inc.
RDA Sub Co.
Reader's Digest Children's Publishing, Inc.
Reader's Digest Consumer Services, Inc.
Reader's Digest Entertainment, Inc.
Reader's Digest Financial Services, Inc.
Reader's Digest Latinoamerica, S.A.
Reader's Digest Sales and Services, Inc.
Reader's Digest Sub Nine, Inc.
Reader's Digest Young Families, Inc.
Reiman Manufacturing, LLC
Reiman Media Group, Inc.
Retirement Living Publishing Company, Inc.
Saguaro Road Records, Inc.
Taste of Home Media Group, Inc.
Taste of Home Productions, Inc.
Travel Publications, Inc.
W.A. Publications, LLC
WAPLA, LLC
Weekly Reader Corporation
Weekly Reader Custom Publishing, Inc.
World Almanac Education Group, Inc.
World Wide Country Tours, Inc.
WRC Media, Inc.

 
116

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Schedule II
NON-DEBTOR OBLIGORS

Verlag Das Beste GmbH
Das Beste aus Reader's Digest AG
Pegasus Medien Produktions-und Vertriebsgesellschaft mbH
Optimail Direktwerbeservice GmbH
Uitgeversmaatschappij The Reader's Digest B.V.

 
117

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