EXECUTION VERSION
 

RESTRUCTURING SUPPORT AGREEMENT

 
This RESTRUCTURING SUPPORT AGREEMENT is made and entered into as of August 17,
2009 (as amended, supplemented or otherwise modified in accordance with the
terms hereof, this “Support Agreement”, which term shall include Exhibits A, B
and C and Schedule 1, each annexed hereto) by and among (i) RDA Holding Co.
(“Holding”), The Reader’s Digest Association, Inc. (the “Company”), and certain
of the Company’s subsidiaries set forth on Schedule 1 annexed hereto (together
with Holding and the Company, the “Debtors”), (ii)  the undersigned lenders
under the Credit Agreement (as defined herein, and together with their permitted
successors and assigns, each a “Consenting Lender”), and (iii) the undersigned
shareholders of Holding (each, a  “Consenting Shareholder,” together with the
Consenting Lenders and the Debtors the “Parties”):
 
WHEREAS, the Company and the Consenting Lenders have negotiated a restructuring
and recapitalization transaction that will effectuate a financial restructuring
of the Company’s capital structure, including the Debtors’ obligations under
that certain Credit Agreement,1 dated as of March 2, 2007 (as amended,
supplemented or otherwise modified, the “Credit Agreement”), by and among the
Debtors, certain financial institutions party thereto (the “Lenders”) and JP
Morgan Chase Bank, N.A., as administrative agent for the Lenders (in such
capacity, the “Administrative Agent”) pursuant to the terms and conditions set
forth in the Restructuring Term Sheet attached hereto as Exhibit A (the “Term
Sheet”) and incorporated into this Support Agreement (the “Restructuring
Transactions”);
 
           WHEREAS, the Debtors have requested, and certain Consenting Lenders
have agreed, to provide a debtor-in-possession financing facility under that
certain credit agreement (the “DIP Credit Agreement”) referred to in the
Commitment Letter dated as of August 14, 2009 (the “DIP Commitment Letter”,
which term shall include the Term Sheet attached thereto) subject to the terms
and conditions thereof; and
 
WHEREAS, the Debtors contemplate filing voluntary petitions (the “Petitions”)
under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”)
in the United States Bankruptcy Court for the Southern District of New York (the
“Bankruptcy Court”) (the date of filing of such voluntary petitions, the
“Petition Date”, and such cases being the “Chapter 11 Cases”);
 
WHEREAS, concurrently with the execution hereof, the Debtors have received duly
executed letters of resignation from those members of the current board of
directors of the Debtors and their subsidiaries who are affiliated with, or
employed by, any of the Consenting Shareholders or Ripplewood Holdings L.L.C.;
 
 

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

 
1
Capitalized terms used but not otherwise defined herein shall have the meanings
ascribed to them in the Credit Agreement.

 
 
1

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

 
NOW, THEREFORE, in consideration of the foregoing and the promises, mutual
covenants and agreements set forth herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
each Party, intending to be legally bound, agrees as follows:
 
Section 1. Conditions to Effectiveness of Support Agreement.
 
This Support Agreement shall become effective and binding upon each of the
Parties at 12:01 a.m. prevailing Eastern Time on the date on which all of the
following conditions are satisfied (the “Effective Date”):

(a)  
The Administrative Agent (or its counsel) and Cravath, Swaine & Moore LLP shall
have received duly executed signature pages for this Support Agreement signed by
the Debtors;

 
(b)  
The Debtors shall have received duly executed signature pages for this Support
Agreement from (i) Consenting Lenders holding at least 51% in principal amount
of the prepetition Total Outstandings under the Credit Agreement and (ii) each
of the Consenting Shareholders; provided, however, that the condition set forth
in clause (b)(i) hereof may be waived with the consent of the Administrative
Agent and the Debtors.

 
(c)  
The Administrative Agent shall have received resolutions from each Debtor
evidencing the corporate or similar authority of such Debtor to execute, deliver
and perform its obligations under this Support Agreement; and

 
(d)  
The Administrative Agent shall have received duly executed signature pages for
the DIP Commitment Letter and the related fee letters, signed by the Debtors and
the Consenting Lenders party thereto.

 

Section 2. Plan of Reorganization.
 
2.1 Support of Acceptable Plan.
 
(a)  
Subject to Sections 1125 and 1126 of the Bankruptcy Code (if and to the extent
applicable), and so long as a Termination Event (as defined below) has not
occurred, or has occurred but has been duly waived or cured in accordance with
the terms hereof:

 
(1) each Debtor severally (and not jointly) agrees to:
 
 
2

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

 
(i)  
use its reasonable best efforts to (A) support and consummate all of the
Restructuring Transactions contemplated by the Term Sheet, this Support
Agreement and the Acceptable Plan (as defined in Section 2.1(a)(1)(ii)), (B)
take any and all necessary and appropriate actions in furtherance of all of the
Restructuring Transactions contemplated under this Support Agreement, the
Acceptable Plan and the Term Sheet, (C) complete all of the Restructuring
Transactions contemplated under this Support Agreement, the Term Sheet and the
Acceptable Plan in accordance with the terms hereof and thereof and take all
steps necessary and desirable to obtain the Confirmation Order (as defined in
Section 2.1.(b)), and (D) obtain any and all required regulatory and/or
third-party approvals for such Restructuring Transactions; and

 
(ii)  
not (a) propose or support any plan of reorganization or liquidation in the
Chapter 11 Cases other than a chapter 11 plan of reorganization incorporating
the terms of the Term Sheet and which chapter 11 plan of reorganization is
otherwise in all material respects, in form and substance reasonably
satisfactory to the Administrative Agent and the Required Consenting Lenders (as
defined in Section 9.14) (as amended, supplemented or otherwise modified subject
to the terms hereof, the “Acceptable Plan”) (b) take any action which is
inconsistent with, or that would unreasonably delay or impede approval or
confirmation of the Acceptable Plan or that is otherwise inconsistent with the
express terms of this Support Agreement or (c) directly or indirectly seek,
solicit, support or encourage any other plan, sale, proposal or offer of
dissolution, winding up, liquidation, reorganization, merger, consolidation,
liquidation or restructuring of any of the Debtors that could reasonably be
expected to prevent, delay or impede the confirmation of the Acceptable Plan;
and

 
(iii)  
provide written notice to the Administrative Agent, within one (1) Business Day
of making such determination, if any Debtor determines that its fiduciary duties
require it to consider any plan other than the Acceptable Plan;

 
provided, however, that nothing contained in this Support Agreement shall be
deemed to prevent any of the Debtors from taking or failing to take any action
that it is obligated to take (or fail to take) in the performance of any
fiduciary or similar duty which such Debtor owes to any other person.
 
 
3

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

(2) each Consenting Lender, severally (and not jointly) agrees to:
 
(i)  
use its reasonable best efforts to (A) support and consummate all of the
Restructuring Transactions contemplated by the Term Sheet and this Support
Agreement and the Acceptable Plan, (B) take any and all necessary and
appropriate actions in furtherance of all of the Restructuring Transactions
contemplated under this Support Agreement and the Term Sheet and the Acceptable
Plan, (C) complete all of the Restructuring Transactions contemplated under this
Support Agreement and the Term Sheet and the Acceptable Plan in accordance with
the terms hereof and thereof; and

 
(ii)  
subject to the receipt by such Consenting Lender of a disclosure statement and
other solicitation materials in respect of the Acceptable Plan, which disclosure
statement and solicitation materials reflect the agreement set forth in this
Support Agreement and the Term Sheet and have been approved by the Bankruptcy
Court pursuant to section 1125 of the Bankruptcy Code and are in all material
respects reasonably satisfactory to the Administrative Agent and the Required
Consenting Lenders (collectively, the “Solicitation Materials”): (a) vote, to
the extent such Consenting Lender is entitled to vote under the terms of the
Acceptable Plan and the Bankruptcy Code, its claims against the Debtors to
accept the Acceptable Plan by delivering its duly executed and completed ballot
accepting such Acceptable Plan on a timely basis following the commencement of
the solicitation and its actual receipt of the Solicitation Materials and ballot
and (b) not change or withdraw (or cause to be changed or withdrawn) such vote.

 
For the avoidance of doubt, each of the Parties also agrees, severally and not
jointly, that, unless this Support Agreement is terminated in accordance with
the terms hereof, it will not take any action that would in any material respect
interfere with, delay, or postpone the confirmation or consummation of the
Acceptable Plan and implementation of the Restructuring Transactions, including,
without limitation, objecting to the debtor-in-possession financing set forth in
the DIP Commitment Letter or propose any alternative financing; provided, that
nothing herein shall preclude any Consenting Shareholder from taking action that
would interfere with the confirmation or consummation of any chapter 11 plan of
reorganization or the Restructuring Transactions to the extent such chapter 11
plan does not contain all of the terms set forth in Section 2.2(b) hereof.
 
 
4

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

 
Nothing contained in this Support Agreement shall be deemed to (1) prevent any
Party from taking, or failing to take, any action that it is obligated to take
(or fail to take) in the performance of any fiduciary or similar duty which such
Party owes to any other person.

(b)  
Upon confirmation of the Acceptable Plan pursuant to an order in all material
respects in form and substance reasonably satisfactory to the Administrative
Agent and the Required Consenting Lenders (the “Confirmation Order”), and so
long as it is not subject to a stay and the conditions to effectiveness thereof
have been satisfied or waived, the Consenting Lenders and the Debtors shall use
commercially reasonable efforts to consummate the Acceptable Plan.

 

2.2 Confirmation of Acceptable Plan.
 
(a)           Without limiting any other provision hereof, the Debtors shall
each use their reasonable best efforts to have the Acceptable Plan confirmed by
the Bankruptcy Court as expeditiously as possible under the Bankruptcy Code, the
Federal Rules of Bankruptcy Procedure, and the Local Rules of the Bankruptcy
Court (the federal and local rules being, the “Bankruptcy Rules”) and within the
timeframes contemplated by this Support Agreement.
 
(b)           Further, each of the Parties hereto agrees severally (and not
jointly) that, in the event the Acceptable Plan is not confirmed for any reason,
and regardless of whether this Support Agreement remains in effect or has
terminated (in whole or in part with respect to any individual Consenting
Lender), it will support (provided, however, that the Consenting Shareholders
shall not be required to take any affirmative action to provide support in any
Chapter 11 Cases), and not oppose or take any action that is inconsistent with,
the inclusion in any alternative plan proposed to be confirmed in the Chapter 11
Cases of: (i) the releases set forth in Section 3 hereof and (ii) each of the
terms set forth under the Term Sheet headings “Releases,” “Indemnification,”
“Exculpation,” “Claims of Holders of Senior Subordinated Notes” and “Avoidance
Actions and Other Litigation;” provided, however, that the releases set forth in
Section 3 herein shall be null and void and of no further force and effect as if
the release was never granted with respect to any Party that has breached the
terms of the penultimate paragraph of Section 2.1(a) hereof or any other terms
herein in any material respect and there shall be no obligation to support the
inclusion in any alternative plan of such release or of any of the terms
identified in clause (ii) above with respect to such breaching Party; provided
further, that if the Bankruptcy Court or any other court of competent
jurisdiction deems any of the foregoing Term Sheet provisions illegal, invalid
or unenforceable, then the obligation of the Parties to support any such
provision shall no longer be enforceable, but shall not otherwise affect the
obligations of the Parties with respect to the other provisions set forth
herein.  This Section 2.2(b) shall survive termination of this Support Agreement
for any reason or with respect to any Party.
 
 
5

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

 
Section 3. Releases.
 
3.1 Immediately upon the Effective Date of this Support Agreement, except with
respect to obligations expressly contained in this Support Agreement, (i) each
of the Consenting Shareholders agrees, on behalf of itself (each, a “Shareholder
Releasing Party,” and collectively, the “Shareholder Releasing Parties”), to
unconditionally and forever release and discharge each Consenting Lender and its
directors, officers, shareholders, partners, members, employees, agents,
attorneys, representatives, affiliates, parents, subsidiaries, predecessors,
successors, heirs, executors and assigns, together with their respective past
and present directors, officers, shareholders, partners, members, employees,
agents, attorneys, representatives, affiliates, parents, subsidiaries,
predecessors, successors, heirs, executors and assigns (collectively, the
“Released Lender Parties”) from any and all claims, actions, causes of action,
suits, losses, obligations, liabilities, damages, judgments, awards, costs, and
expenses (including attorneys’ fees) of every kind, type, and nature whatsoever,
whether known or unknown, absolute or contingent, asserted, threatened, or
alleged, that such Shareholder Releasing Party (1) has, may have, or may claim
to have, (2) heretofore had, may have had, or may claim to have had, or (3)
hereafter may have, or may claim to have, against any of the Released Lender
Parties, from the beginning of time up to and through the Effective Date of this
Support Agreement, based on, arising out of, under or in connection with (A) the
Credit Agreement and the other Loan Documents as defined therein, (B) the
Obligations and (C) the Transactions, except for gross negligence, willful
misconduct, criminal misconduct or actual fraud as determined by a final order
entered by a court of competent jurisdiction, (ii) each of the Shareholder
Releasing Parties agrees, neither individually nor collectively with any other
person or entity, to bring any claim, action, cause of action, or suit that is
based on, arising out of or under, or in connection with, any matters released
by the Shareholder Releasing Parties under clause (i) above, and (iii) each of
the Shareholder Releasing Parties severally (and not jointly) warrants and
represents that it has not transferred or assigned to any person or entity any
right based on, arising out of or under, or in connection with, any matters
released by the Shareholder Releasing Parties under clause (i)
above.  Notwithstanding anything to the contrary herein, the Shareholder
Releasing Parties shall not be deemed to have released the Debtors or any of
their subsidiaries pursuant to this Section 3.1.
 
3.2 Immediately upon the Effective Date of this Support Agreement, except with
respect to obligations expressly contained in this Support Agreement, (i) each
of the Consenting Lenders agrees, on behalf of itself (each, a “Lender Releasing
Party,” and collectively, the “Lender Releasing Parties”), to unconditionally
and forever release and discharge each Consenting Shareholder and its directors,
officers, shareholders, partners, members, employees, agents, attorneys,
representatives, affiliates, parents, subsidiaries, predecessors, successors,
heirs, executors and assigns, together with their respective past and present
directors, officers, shareholders, partners, members, employees, agents,
attorneys, representatives, affiliates, parents, subsidiaries, predecessors,
successors, heirs, executors and assigns and each current or former officer or
director of any of the Debtors or any of their subsidiaries (collectively, the
“Released Shareholder Parties”) from any and all claims, actions, causes of
action, suits, losses, obligations, liabilities, damages, judgments, awards,
costs, and expenses (including attorneys’ fees) of every kind, type, and nature
whatsoever, whether known or unknown, absolute or contingent, asserted,
threatened, or alleged, that such Lender Releasing Party (1) has, may have, or
may claim to have, (2) heretofore had, may have had, or may claim to have had,
or (3) hereafter may have, or may claim to have, against any of the Released
Shareholder Parties, from the beginning of time up to and through the
 
 
6

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

 
 
Effective Date of this Support Agreement, based on, arising out of, under or in
connection with (A) the Credit Agreement and the other Loan Documents as defined
therein, (B) the Obligations (C) the Transactions, (D) their services as
directors or officers of the Debtors or any action, decision, or failure to act
in their capacity as such with respect to the Debtors and (E) the Management
Services Agreement dated as of January 23, 2007 by and among Ripplewood Holdings
L.L.C., Holding, the Company and the other parties thereto, except for gross
negligence, willful misconduct, criminal misconduct or actual fraud as
determined by a final order entered by a court of competent jurisdiction,
(ii) each of the Lender Releasing Parties agrees, neither individually nor
collectively with any other person or entity, to bring any claim, action, cause
of action, or suit that is based on, arising out of or under, or in connection
with, any matters released by the Lender Releasing Parties under
clause (i) above, and (iii) each of the Lender Releasing Parties severally (and
not jointly) warrants and represents that it has not transferred or assigned to
any person or entity any right based on, arising out of or under, or in
connection with, any matters released by the Lender Releasing Parties under
clause (i) above.  Notwithstanding anything to the contrary herein, the Lender
Releasing Parties shall not be deemed to have released the Debtors or any of
their subsidiaries pursuant to this Section 3.2.
 

Section 4. Termination Events.
 
4.1 Termination Events.                                                      
 
The occurrence of any of the following shall be a “Termination Event”:
 
(a)  
the consummation of the Restructuring Transactions contemplated by this Support
Agreement and the effective date of the Acceptable Plan or a written agreement
among the Debtors and the Required Consenting Lenders terminating this Support
Agreement;

 
(b)  
any court of competent jurisdiction or other competent governmental or
regulatory authority issues an order making illegal or otherwise restricting,
preventing or prohibiting the consummation of the Restructuring Transactions
contemplated by the Acceptable Plan or this Support Agreement;

 
(c)  
the occurrence of any breach of this Support Agreement by any of the Parties (to
the extent not otherwise cured or waived in accordance with the terms hereof);
provided, that if any Party shall breach its obligations pursuant to this
Support Agreement, the Termination Date arising as a result of such act or
omission shall apply only to such Party and this Support Agreement shall
otherwise remain in full force and effect with respect to the Debtors and all
such remaining Parties; it being understood that if such breaches result in
fewer than 51% of the Consenting Lenders remaining Parties to this Agreement,
the Debtors shall have the right to terminate.

 
 
7

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

 
(d)  
any Debtor withdraws the Acceptable Plan, publicly announces its intention not
to support the Acceptable Plan or files any plan of reorganization or
liquidation and/or disclosure statement that is not consistent with the
Acceptable Plan, or publicly announces its support for any such inconsistent
plan and/or disclosure statement, gives the notice described in Section
2.1(a)(1)(iii) hereof, or otherwise evinces an intention not to proceed with the
Acceptable Plan or to proceed with any alternative plan or form of transaction;

 
(e)  
the entry of any order in the Chapter 11 Cases terminating the Debtors’
exclusive right to file a plan or plans of reorganization pursuant to Section
1121 of the Bankruptcy Code; provided that such order is not the result of a
motion filed by any Consenting Lender;

 
(f)  
any of the Chapter 11 Cases shall be dismissed or converted to a chapter 7 case,
or a chapter 11 trustee with plenary powers, a responsible officer, or an
examiner with enlarged powers relating to the operation of the businesses of the
Debtors (powers beyond those set forth in Section 1106(a)(3) and (4) of the
Bankruptcy Code) shall be appointed in any of the Chapter 11 Cases or the
Debtors shall file a motion or other request for such relief;

 
(g)  
either (1) a filing by any Debtor of any motion, application or adversary
proceeding challenging the validity, enforceability, perfection or priority of
or seeking avoidance of the liens securing the obligations referred to in the
Collateral Documents (collectively, the “Secured Obligations”) or any other
cause of action against and/or with respect to the Secured Obligations, the
prepetition liens securing such Secured Obligations, the Administrative Agent or
any of the Secured Parties (or if the Debtors support any such motion,
application or adversary proceeding commenced by any third party or consent to
the standing of any such third party) or (2) the entry of an order of the
Bankruptcy Court providing relief against the interests of any Consenting Lender
with respect to any of the foregoing causes of action or proceedings;

 
 
8

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

 
(h)  
any material adverse change regarding the feasibility of the Acceptable Plan
arising on or after the Effective Date of this Support Agreement, as determined
by the Required Consenting Lenders (as defined in Section 9.14) in their
reasonable discretion;

 
(i)  
the amendment, modification of, or the filing of a pleading by any of the
Debtors that seeks to amend or modify the Acceptable Plan, the Disclosure
Statement or any documents related to the Acceptable Plan, notices, exhibits or
appendices, which amendment, modification or filing is inconsistent with this
Support Agreement and not otherwise consented to by the Required Consenting
Lenders;

 
(j)  
failure of the Debtors to commence the Chapter 11 Cases on or before 11:59 p.m.
(New York City time) on September 10, 2009;

 
(k)  
11:59 p.m. (New York City time) on the fourth (4th) Business Day after the
Petition Date, unless prior thereto the Bankruptcy Court enters an interim order
in the Chapter 11 Cases of the Debtors under, inter alia Sections 105, 361, 362,
363 and 364 of the Bankruptcy Code in form and substance satisfactory to the
Administrative Agent and the Required Consenting Lenders, authorizing the
Debtors to incur postpetition financing and use cash collateral, granting
adequate protection to the prepetition Secured Parties, and scheduling a final
hearing pursuant to Bankruptcy Rule 4001(B) (the “Interim DIP Order”);

 
(l)  
11:59 p.m. (New York City time) on the forty-fifth (45th) day after the date of
entry of the Interim DIP Order, unless prior thereto the Bankruptcy Court enters
a final order in the Chapter 11 Cases of the Debtors under, inter alia Sections
105, 361, 362, 363 and 364 of the Bankruptcy Code in form and substance
satisfactory to the Administrative Agent and the Required Consenting Lenders,
authorizing the Debtors to incur postpetition financing and use cash collateral
and granting adequate protection to the prepetition Secured Parties (the “Final
DIP Order” and together with the Interim DIP Order, the “DIP Orders”);

 
(m)  
the occurrence of an “Event of Default” under, and as such term is defined in,
the DIP Credit Agreement and the acceleration of the obligations thereunder;

 
(n)  
11:59 p.m. (New York City time) on the date that is 75 days after the Petition
Date, if the Debtors shall not have filed the Acceptable Plan and the Disclosure
Statement with the Bankruptcy Court on or before such time;

 
(o)  
11:59 p.m. (New York City time), on the date that is 115 days after the Petition
Date, unless the Bankruptcy Court has entered an order, in form and substance
satisfactory to the Administrative Agent and the Required Consenting Lenders,
approving the Disclosure Statement pursuant to Section 1125 of the Bankruptcy
Code on or before such time;

 
 
9

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

 
(p)  
11:59 p.m. (New York City time), on the date that is 20 days following entry of
the order approving the Disclosure Statement pursuant to Section 1125 of the
Bankruptcy Code, unless prior thereto the Company commences the solicitation of
acceptances of the Acceptable Plan;

 
(q)  
11:59 p.m. (New York City time), on the date that is 80 days following entry of
an order approving the Disclosure Statement pursuant to Section 1125 of the
Bankruptcy Code unless the Bankruptcy Court has entered the Confirmation Order
on or before such time; provided that, if the Debtors have satisfied the
conditions required for the Twelve Month Facility Extension Option (as defined
in the DIP Commitment Letter), this deadline shall be extended to 11:59 p.m.
(New York City time) on the date that is 120 days following entry of an order
approving the Disclosure Statement pursuant to Section 1125 of the Bankruptcy
Code unless the Bankruptcy Court has entered the Confirmation Order on or before
such time; or

 
(r)  
11:59 p.m. (New York City time) on the thirtieth (30th) day after the date of
entry of the Confirmation Order, unless the “effective date” of the Acceptable
Plan has occurred prior thereto.

 

4.2 Additional Debtor Termination Events.
 
The Debtors may terminate this Support Agreement upon five (5) Business Days
prior written notice to the Administrative Agent upon the occurrence of either
of the following events:  (i) the breach by any Consenting Lender of the
representations, warranties, or covenants of such Consenting Lender set forth in
this Support Agreement that would be reasonably likely to have a material
adverse impact on the Debtors, or the consummation of the Restructuring
Transactions, that remains uncured for a period of five (5) Business Days after
receipt by such Consenting Lender of notice of such breach; or (ii) the board of
directors of the Company reasonably determines based upon the advice of counsel
that proceeding with the Restructuring Transactions would be inconsistent with
the exercise of its fiduciary duties.
 
Notwithstanding anything to the contrary herein, the releases provided for in
Section 3 hereof shall survive the termination of this Support Agreement under
either Section 4.1 or 4.2 hereof; provided, that the releases set forth in
Section 3 herein shall automatically be null and void and of no further force
and effect as if the release had never been granted with respect to any Party
that has breached the terms of the penultimate paragraph of Section 2.1(a)
hereof or any other terms herein in any material respect.

 
10

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

 
4.3 Termination Event Procedures.
 
Upon the occurrence of a Termination Event under (i) Section 4.1 (a), (b), (d),
(e), (f), (g), (i) or (m) of this Support Agreement, this Support Agreement
shall automatically terminate without further action, and (ii) Section 4.1 (c),
(h), (j), (k), (l), (n), (o), (p), (q) or (r) of this Support Agreement, five
(5) Business Days after the Administrative Agent (on behalf of the Consenting
Lenders) or, with respect to a Termination Event under Section 4.1(c) which has
occurred as a result of a breach of this Support Agreement by any Party, the
other non-breaching Parties, shall have given written notice of the occurrence
of such Termination Event to the other parties hereto and such Termination Event
shall not have been cured during such five (5) Business Days after receipt of
such notice (or otherwise waived in writing by the requisite Parties in
accordance with the terms hereof), this Support Agreement shall terminate (the
date of termination under clause (i) or (ii) hereof being the “Termination
Date”).  For the avoidance of doubt, the automatic stay arising pursuant to
Section 362 of the Bankruptcy Code in the Chapter 11 Cases shall be deemed
waived or modified for purposes of providing notice hereunder or terminating
this Support Agreement.
 
Section 5. Remedies.
 
It is understood and agreed by each of the Parties that any breach of this
Support Agreement would give rise to irreparable harm for which money damages
would not be an adequate remedy and, accordingly, the Parties agree that, in
addition to any other remedies, each Party shall be entitled, without the
requirement of posting a bond or other security, to specific performance and
injunctive or other equitable relief.  The Debtors each agree that for so long
as any Party has not taken any action to prejudice the enforceability of this
Support Agreement (including, without limitation, alleging in any pleading that
this Support Agreement is unenforceable), and has taken such actions as are
reasonably required or desirable for the enforcement hereof, then such Party
shall have no liability for damages hereunder in the event a court determines
that this Support Agreement is not enforceable.  Without limiting the provisions
hereof, the Parties hereby agree that if any Party breaches the terms of the
penultimate paragraph of Section 2.1(a) hereof or any other terms herein in any
material respect (to the extent not otherwise cured or waived in accordance with
the terms hereof), the release granted to such Party in Section 3 hereof shall
be automatically null and void and of no further force and effect as if the
release had never been granted to such breaching Party.

 
Section 6. Mutual Representations, Warranties and Covenants.
 
6.1 Power and Authority.
 
Each Party severally, and not jointly, represents to each other Party that, as
of the date of this Support Agreement, (i) such Party has all requisite
corporate, partnership, or limited liability company power and authority to
enter into this Support Agreement and to carry out the Restructuring
Transactions contemplated by, and perform its respective obligations under, this
Support Agreement, and (ii) the execution and delivery of this Support Agreement
and the performance of its obligations hereunder have been duly authorized by
all necessary action on its part.
 
 
11

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

 
6.2 Enforceability.
 
Each Party severally, and not jointly, represents to each other Party that this
Support Agreement is the legally valid and binding obligation of it, enforceable
in accordance with its terms, except as enforcement may be limited by
bankruptcy, insolvency, reorganization or other similar laws limiting creditors’
rights generally or by equitable principles relating to enforceability or ruling
of the Bankruptcy Court.
 
6.3 Representation.
 
Each of the Parties to this Support Agreement acknowledges that it has been
represented by counsel (or had the opportunity to and waived its right to do so)
in connection with this Support Agreement and the Restructuring Transactions
contemplated by this Support Agreement.  Accordingly, any rule of law or any
legal decision that would provide any Party hereto with a defense to the
enforcement of the terms of this Support Agreement against such Party based upon
lack of legal counsel shall have no application and is expressly waived.  The
provisions of this Support Agreement shall be interpreted in a reasonable manner
to effect the intent of the Parties hereto.  None of the Parties hereto shall
have any term or provision construed against such Party solely by reason of such
Party having drafted the same.

6.4 Governmental Consents.
 
Each Party severally, and not jointly, represents to each other Party that, as
of the date of this Support Agreement, the execution, delivery, and performance
by it of this Support Agreement do not and shall not require any registration or
filing with, consent or approval of, or notice to, or other action to, with, or
by, any Federal, state, or other governmental authority or regulatory body,
except (i) such filings as may be necessary and/or required for disclosure by
the Securities and Exchange Commission and applicable state securities or “blue
sky” laws, (ii) any filings in connection with the Chapter 11 Cases, including
the approval of the Disclosure Statement and confirmation of the Acceptable
Plan, and (iii) in the case of the Debtors, (A) filings of amended articles of
incorporation or formation or other organizational documents with applicable
state authorities, and (B) other registrations, filings, consents, approvals,
notices, or other actions that are reasonably necessary to maintain permits,
licenses, qualifications, and governmental approvals to carry on the business of
the Debtors.
 
 
12

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

 
6.5 Ownership.
 
(a)           Each Consenting Lender severally, and not jointly, represents and
warrants that, as of the date hereof, (i) such Consenting Lender either (A) is
the sole legal and beneficial owner of its share of the prepetition Total
Outstandings and loans (if any) under the DIP Credit Agreement referred to in
the DIP Commitment Letter (the “DIP Loans”) or (B) is the legal owner of its
share of the prepetition Total Outstandings and DIP Loans (if any), and has the
power and authority to bind the legal and beneficial owner(s) of such
prepetition Total Outstandings and DIP Loans (if any) to the terms of this
Support Agreement,  (ii) such Consenting Lender (a) has full power and authority
to vote on and consent to or (b) has received direction from the party having
full power and authority to vote on and consent to such matters concerning its
share of the prepetition Total Outstandings and DIP Loans (if any) and to
exchange, convert, assign and transfer such prepetition Total Outstandings and
DIP Loans (if any), and (iii) other than pursuant to this Support Agreement,
such prepetition Total Outstandings are free and clear of any pledge, lien,
security interest, charge, claim, equity, option, proxy, voting restriction,
right of first refusal or other limitation on disposition, or encumbrances of
any kind, that would adversely affect in any way such Consenting Lender’s
performance of its obligations contained in this Support Agreement at the time
such obligations are required to be performed.

(b)           Each of the Consenting Shareholders severally, and not jointly,
represents and warrants that, as of the date hereof (i) it is the beneficial
owner of equity interests, or is the nominee, investment manager, or advisor for
beneficial holders of the equity interests in Holding, and (ii) other than
pursuant to this Support Agreement, such equity interests are free and clear of
any pledge, lien, security interest, charge, claim, equity, option, proxy,
voting restriction, right of first refusal or other limitation on disposition,
or encumbrances of any kind, that would adversely affect in any way such
Consenting Shareholder’s performance of its obligations contained in this
Support Agreement at the time such obligations are required to be performed.

6.6 Board Appointments.
 
The Parties acknowledge and do not object that immediately prior to execution of
this Support Agreement and his resignation, the sole director of Holding caused
the appointment to the board of directors of Holding all of the then remaining
directors of the Company’s board of directors.  The Consenting Shareholders
hereby agree that, notwithstanding anything to the contrary in any shareholders
agreement, from and after the Effective Date of this Support Agreement, they
shall not appoint or elect, or cause the appointment or election of, any members
to the board of directors (or any committees thereof) of the Debtors or their
subsidiaries.

Section 7. No Material Misstatement or Omission.
 
The Debtors represent that none of the material and information provided by or
on behalf of the Debtors to the Administrative Agent, the Consenting Lenders and
the Consenting Shareholders in connection with the Restructuring Transactions
contemplated in this Support Agreement, when read or considered together,
contains any untrue statement of a material fact or omits to state a material
fact necessary in order to prevent the statements made therein from being
materially misleading.
 
 
13

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

 
Section 8. Acknowledgement.
 
This Support Agreement and the Restructuring Transactions contemplated herein
are the product of negotiations among the Debtors and the Consenting Lenders,
together with their respective representatives.  This Support Agreement is not,
and shall not be deemed to be, a solicitation of votes for the acceptance of the
Acceptable Plan or any plan of reorganization for the purposes of Sections 1125
and 1126 of the Bankruptcy Code or otherwise.  The Debtors will not solicit
acceptances of the Acceptable Plan from any Consenting Lender until such
Consenting Lender has been provided with copies of a Disclosure Statement
approved by the Bankruptcy Court.

Section 9. Miscellaneous Terms.
 
9.1 Assignment; Transfer Restrictions.
 
(a)  
Each Consenting Lender hereby agrees, for so long as this Support Agreement
shall remain in effect as to it, not to sell, assign, transfer, hypothecate or
otherwise dispose of any of its pro rata share of the prepetition Total
Outstandings or DIP Loans (if any) unless prior thereto the transferee thereof
executes and delivers a Lender Joinder (as defined in section 9.3(a)) to the
Administrative Agent at least two (2) Business Days prior to the relevant
transfer.  Thereafter, such transferee shall be deemed to be a Consenting Lender
for purposes of this Support Agreement.

 
(b)  
Any sale, transfer, assignment, hypothecation or other disposition by any
Consenting Lender of any or all of its pro rata share of the prepetition Total
Outstandings or DIP Loans (if any) that does not comply with the procedures set
forth in Section 9.1(a) shall be deemed void ab initio.

 
(c)  
Nothing herein shall be construed to restrict any Consenting Lender’s right to
acquire additional prepetition Loans, participation interests in prepetition
Letters of Credit or DIP Loans.  To the extent any Consenting Lender acquires as
legal owner additional prepetition Loans, participation interests in prepetition
Letters of Credit or DIP Loans, the Parties agree that such prepetition Loans,
participation interests in prepetition Letters of Credit and DIP Loans shall be
deemed to be subject to the terms of this Support Agreement upon the Consenting
Lender’s acquisition of such additional prepetition Loans, participation
interests in prepetition Letters of Credit or DIP Loans.  Notwithstanding the
foregoing provisions of this Section 9.1, any Consenting Lender may, at any time
and without notice to or consent from any other party, pledge or grant a
security interest in all or any portion of its rights (including, without
limitation, rights to payment of interest and repayment of principal) under the
prepetition Credit Agreement or the DIP Credit Agreement in order to secure
obligations of such Consenting Lender to a Federal Reserve Bank; provided that
no such pledge or grant of a security interest shall release such Consenting
Lender from any of its obligations hereunder or substitute any such pledgee or
grantee for such Consenting Lender as a party hereto.

 
 
14

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

 
(d)  
Each Consenting Shareholder hereby agrees, for so long as this Support Agreement
shall remain in effect as to it, not to sell, assign, transfer, hypothecate or
otherwise dispose of any of its equity interests in Holding unless prior thereto
the transferee thereof executes and delivers a Shareholder Joinder (as defined
in Section 9.3(c)) to the Administrative Agent at least two (2) Business Days
prior to the relevant transfer.  Thereafter, such transferee shall be deemed to
be a Consenting Shareholder for purposes of this Support Agreement.

 
(e)  
Any sale, transfer, assignment, hypothecation or other disposition by any
Consenting Shareholder of any or all of its equity interests that does not
comply with the procedures set forth in Section 9.1(d) shall be deemed  void ab
initio.

 
9.2 No Third Party Beneficiaries.
 
Except for the Released Lender Parties and the Released Shareholder Parties,
unless expressly stated herein, this Support Agreement shall be solely for the
benefit of the Administrative Agent and the Parties and no other person or
entity shall be a third party beneficiary.

9.3 Joinder.
 
(a)  
Any person that receives or acquires a portion of the prepetition Total
Outstandings or DIP Loans pursuant to a sale, assignment, transfer,
hypothecation or other disposition of such prepetition Total Outstandings or DIP
Loans by a Consenting Lender hereby agrees to be bound by all of the terms of
the Term Sheet and this Support Agreement (as the same may be hereafter amended,
restated or otherwise modified from time to time) (a “Joining Lender Party”) by
executing and delivering a joinder in the form of Exhibit B hereto (the “Lender
Joinder”) to the Administrative Agent.  The Joining Lender Party shall
thereafter be deemed to be a “Consenting Lender” and a Party for all purposes
under this Support Agreement.

 
(b)  
With respect to the aggregate principal amount of prepetition Total Outstandings
or DIP Loans held by the Joining Lender Party upon consummation of the sale,
assignment, transfer, hypothecation or other disposition of such prepetition
Total Outstandings or DIP Loans, the Joining Lender Party hereby makes the
representations and warranties of the Consenting Lenders set forth in Section 6
of this Support Agreement to each of the other Parties to this Support
Agreement.

 
 
15

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

 
(c)  
Any person that receives or acquires any portion of the equity interests
pursuant to a sale, assignment, transfer, hypothecation or other disposition of
such equity interests by a Consenting Shareholder hereby agrees to be bound by
all of the terms of the Term Sheet and this Support Agreement (as the same may
be hereafter amended, restated or otherwise modified from time to time) (a
“Joining Shareholder Party”) by executing and delivering a joinder in the form
of Exhibit C hereto (the “Shareholder Joinder”) to the Administrative
Agent.  The Joining Shareholder Party shall thereafter be deemed to be a
“Consenting Shareholder” and a party for all purposes under this Support
Agreement.

 
(d)  
With respect to the equity interests held by the Joining Shareholder Party upon
consummation of the sale, assignment, transfer, hypothecation or other
disposition of such equity interests, the Joining Shareholder Party hereby makes
the representations and warranties of the Consenting Shareholders set forth in
Section 6 of this Support Agreement to each of the other Parties to this Support
Agreement.

 

9.4 Entire Agreement.
 
This Support Agreement, including Exhibit A and Schedule 1 annexed hereto,
constitutes the entire agreement of the Parties with respect to the subject
matter of this Support Agreement, and supersedes all other prior negotiations,
agreements, and understandings, whether written or oral, among the Parties with
respect to the subject matter of this Support Agreement.

9.5 Counterparts.
 
This Support Agreement may be executed in one or more counterparts, each of
which shall be deemed an original and all of which shall constitute one and the
same agreement.  Delivery of an executed signature page of this Support
Agreement by facsimile transmission shall be effective as delivery of a manually
executed counterpart hereof.

9.6 Settlement Discussions.
 
This Support Agreement and the Term Sheet annexed hereto as Exhibit A is part of
a proposed settlement of disputes among the Parties hereto.  Nothing herein
shall be deemed to be an admission of any kind.  Pursuant to Federal Rule of
Evidence 408 and any applicable state rules of evidence, this Support Agreement
and the Term Sheet annexed hereto as Exhibit A, documents and negotiations
relating thereto shall not be admissible into evidence in any proceeding other
than a proceeding to enforce the terms of this Support Agreement.
 
 
16

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

 
9.7 Continued Banking Practices.
 
Notwithstanding anything herein to the contrary, each Consenting Lender and its
affiliates may accept deposits from, lend money to, and generally engage in any
kind of banking, investment banking, trust or other business with, or provide
debt financing, equity capital or other services (including financial advisory
services) to any Debtor or any affiliate of any Debtor or any other Person,
including, but not limited to, any Person proposing or entering into a
transaction related to or involving any Debtor or any affiliate thereof.

9.8 Reservation of Rights.
 
(a)  
Except as expressly provided in this Support Agreement, nothing herein is
intended to, does or shall be deemed in any manner to waive, limit, impair or
restrict the ability of each of the Consenting Lenders to protect and preserve
all of its rights and remedies under the DIP Credit Agreement, the DIP Orders or
any other order of the Bankruptcy Court or other court of competent
jurisdiction, or its full participation in the Chapter 11 Cases.

 
(b)  
Without limiting Section 9.8(a) in any way, if the Restructuring Transactions
contemplated by this Support Agreement or otherwise set forth in the Acceptable
Plan are not consummated as provided herein, if a Termination Date occurs, or if
this Support Agreement is otherwise terminated for any reason, the Consenting
Lenders each fully reserve any and all of their respective rights, remedies and
interests under the Loan Documents, the DIP Credit Agreement and related post
petition loan documents, applicable law and in equity; provided, that the
releases set forth in Section 3 hereof shall continue to remain in full force
and effect except with respect to any breaching Party that has breached the
terms of the penultimate paragraph of Section 2.1(a) hereof or any other terms
herein in any material respect.

 
(c)  
Notwithstanding anything herein to the contrary, the Parties acknowledge that
the support of each Consenting Lender contained in this Support Agreement
relates solely to such Consenting Lender’s rights and obligations as a lender
under the prepetition Credit Agreement and the DIP Credit Agreement (if
applicable) with respect to the principal amounts identified on such Consenting
Lender’s signature page and as provided in Section 9.1 and does not bind such
Consenting Lender or its affiliates with respect to any other indebtedness,
obligations or liabilities owed by the Company or any of its subsidiaries and
affiliates to such Consenting Lender or any affiliate of such Consenting Lender
(for the avoidance of doubt, if the Consenting Lender is specified on the
relevant signature page as a particular group or business within an entity,
“Consenting Lender” shall mean such group or business and shall not mean the
entity or its affiliates, or any other desk or business thereof, or any third
party funds advised thereby).  For purposes of this Support Agreement,
“Consenting Lender” shall not include a holder of Loans under the prepetition
Credit Agreement or DIP Loans signatory hereto in its capacity or to the extent
of its holdings as a public-side broker, dealer or market maker of Loans under
the prepetition Credit Agreement or DIP Loans or any other claim against or
security in the Debtors.

 
 
 
17

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

 
9.9 Successors.
 
This Support Agreement is intended to bind the Parties and inure to the benefit
of the Parties and their respective successors, assigns, heirs, executors,
administrators and representatives; provided, however, that nothing contained in
this Section 9.9 shall be deemed to permit any transfer, tender, vote or
consent, of any claims other than in accordance with the terms of this Support
Agreement.
 
9.10 Publicity.
 
The Parties agree that all public announcements of the entry into or the terms
and conditions of this Support Agreement shall be mutually, reasonably
acceptable to each of the Parties.

9.11 Nondisparagement.
 
Each Consenting Lender and each Consenting Shareholder, respectively, agrees
severally (and not jointly), that it shall not make any malicious, disparaging
or defamatory statements to any third party regarding any Consenting Lender or
Consenting Shareholder or any of their respective affiliates, subsidiaries,
directors, shareholders, members, officers or employees or any of their
businesses or products or any aspect of any ownership thereof related to the
Restructuring Transactions, the Credit Agreement, the Obligations, the
Transactions, or the ownership or management of the Debtors; provided, that this
provision shall not be deemed to limit any rights of any Party to make
statements of fact in good faith in litigation  that is not prohibited by an
applicable release in Section 3 or that is related to a breach of this Support
Agreement.

9.12 Governing Law; Waiver of Jury Trial; Indemnity.
 
(a)  
The Parties waive all rights to trial by jury in any jurisdiction in any action,
suit, or proceeding brought to resolve any dispute between the Parties under
this Support Agreement, whether sounding in contract, tort or otherwise.

 
(b)  
This Support Agreement shall be governed by and construed in accordance with the
laws of the State of New York, without regard to any conflicts of law provision
which would require the application of the law of any other jurisdiction.  By
its execution and delivery of this Support Agreement, each Party hereby
irrevocably and unconditionally agrees for itself that, subject to the following
sentence, any action, suit or proceeding against it with respect to any matter
under or arising out of or in connection with this Support Agreement or for
recognition or enforcement of any judgment rendered in any such action, suit or
proceeding, may be brought in any state or federal court of competent
jurisdiction in New York County, State of New York, and by execution and
delivery of this Support Agreement, each of the Parties hereby irrevocably
accepts and submits itself to the nonexclusive jurisdiction of such court,
generally and unconditionally, with respect to any such action, suit or
proceedings.

 
 
18

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

 
(c)  
Notwithstanding the foregoing, if the Chapter 11 Cases are commenced, nothing in
Section 9.12(a) or (b) shall limit the authority of the Bankruptcy Court to hear
any matter related to or arising out of this Support Agreement.

 
9.13 Pending Transfers.
 
Notwithstanding anything to the contrary provided herein, if a Consenting Lender
has assigned all or a portion of the Obligations under the Credit Agreement that
it beneficially owns as of the date hereof but such assignment has not settled
as of the date hereof (such Obligations, “Pending Transfer Credit Agreement
Obligations”), then such Consenting Lender shall be permitted to exclude from
the amount of the Obligations listed on its signature page an amount of Pending
Transfer Credit Agreement Obligations equal to the Pending Transfer Credit
Agreement Obligations assigned to any transferee that has instructed such
Consenting Lender not to execute this Agreement (such excluded Obligations, the
“Excluded Credit Agreement Obligations”).  Such Consenting Lender shall not be
bound by the terms hereof with respect to any Excluded Credit Agreement
Obligations.
 
9.14 Amendments, Modifications, Waivers.
 
This Support Agreement and the Acceptable Plan may only be modified, amended or
supplemented, and any of the terms thereof may only be waived, by an agreement
in writing signed by each of the Debtors  and the Consenting Lenders holding at
such time at least 66 2/3% of the prepetition Total Outstandings and the DIP
Loans that are subject to the terms hereof and held by all Consenting Lenders
(the “Required Consenting Lenders”); provided that any modifications, amendments
or supplements to Annex 1 to the Term Sheet shall require the consent of each
Consenting Lender; provided, further that if the modification, amendment or
waiver at issue adversely impacts the treatment or rights of any Consenting
Lender differently than other Consenting Lenders, the agreement in writing of
such Consenting Lender whose treatment or rights are directly adversely impacted
in a different manner than other Consenting Lenders shall also be required for
such modification, amendment or waiver to be effective; provided further, that
if the modification, amendment, supplement or waiver at issue relates to
Sections 2.2(b), 3, 4.2, 5, 6 (only to the extent affecting Consenting
Shareholders), 9.1 (only to the extent affecting Consenting Shareholders), 9.3
(only to the extent affecting Consenting Shareholders), 9.11 and 9.12 or
otherwise directly adversely impacts the treatment or rights of any Consenting
Shareholder, the agreement in writing of such Consenting Shareholder whose
treatment or rights are directly adversely impacted shall also be required for
such modification, amendment, supplement or waiver to be effective (this proviso
shall not be modified, amended or supplemented, or any of its terms waived,
without the prior written consent of each Consenting Shareholder).
 
 
19

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

 
9.15 Consideration.
 
It is hereby acknowledged by each of the Parties that no consideration shall be
due or paid to the Parties for their agreement to support or not interfere with
the Acceptable Plan in accordance with the terms and conditions of this Support
Agreement, other than the obligations of the other Parties under this Support
Agreement.  The Company represents that, as of the Effective Date, no payments
have been made to any of the Parties hereto that were not permitted to be made
under the terms of the Credit Agreement.

9.16 Severability of Provisions.
 
If any provision of this Support Agreement for any reason is held to be invalid,
illegal or unenforceable in any respect, that provision shall not affect the
validity, legality or enforceability of any other provision of this Support
Agreement.

9.17 Notices.
 
All notices and other communications required or permitted hereunder shall be in
writing and shall be deemed given when: (a) delivered personally or by overnight
courier to the following address of the other Party hereto; or (b) sent by fax
to the following fax number of the other Party hereto with the confirmatory copy
delivered by overnight courier to the address of such Party listed below.

If to any Debtor, to counsel at the following address:

Kirkland & Ellis LLP
601 Lexington Avenue
New York, New York 10022-4611
Attention:  Paul M. Basta, Esq.

If to any Consenting Lender or Consenting Shareholder, the address set forth on
its signature page.

If to the Administrative Agent, to:

JPMorgan Chase Bank, N.A
270 Park Avenue
New York New York 10017-2070
Attn:  Ms. Elizabeth Kelley

[SIGNATURE PAGES FOLLOW]

 
 
20

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 
Very truly yours,

RDA HOLDING CO.

By: _/s/ Tom Williams_______________
Name:  Tom Williams
 
Title:  Senior Vice President & Chief Financial Officer

THE READER’S DIGEST ASSOCIATION, INC.

By: _/s/ Tom Williams_______________
Name:  Tom Williams
 
Title:  Senior Vice President & Chief Financial Officer

 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 
Very truly yours,

Alex, Inc.
Allrecipes.com, Inc.
Ardee Music Publishing, Inc.
Christmas Angels Productions, Inc.
Compass Learning, 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.
Readers 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.
 
 
 
 
By:       /s/ Thomas A. Williams
Name: Thomas A. Williams
Title: Vice President
 
 
 
 
 
By:      /s/ Thomas A. Williams
Name: Thomas A. Williams
           Title: Vice President

 
 
 

 
 

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

 

 

 
RDA INVESTORS I, LLC
         
By:         /s/  Christopher Minnetian
 
Name:              
 
Title:                                                  

 

 
RDA INVESTORS II, LLC
         
By:         /s/  Christopher Minnetian
 
Name:              
 
Title:                                                  

 

 
RDA INVESTORS III, LLC
         
By:         /s/  Christopher Minnetian
 
Name:              
 
Title:                                                  

 

 

 
LVC ACQUISITION, L.L.C.
         
By:         /s/  Christopher Minnetian
 
Name:              
 
Title:                                                  

 

 
LVC ACQUISITION II, L.L.C.
         
By:         /s/  Christopher Minnetian
 
Name:              
 
Title:                                                  

 

 
EAC III, L.L.C.
         
By:         /s/  Christopher Minnetian
 
Name:              
 
Title:                                                  

 
J. ROTHSCHILD GROUP (GUERNSEY) LTD.
         
By: /s/ Mark Le Ray
 
Name:     Mark Le Ray
 
Title:       Director

 
J. ROTHSCHILD GROUP (GUERNSEY) LTD.
         
By: /s/  William M Ferry
 
Name:      William M Ferry
 
Title:        Director

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

 

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
AG Northwoods Capital VI Limited, as a Lender
         
By:    /s/
 
Name:
 
Title:

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
AG Northwoods Capital VII Limited, as a Lender
         
By:    /s/
 
Name:
 
Title:

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Northwoods Capital IV Limited, as a Lender
         
By:    /s/
 
Name:
 
Title:

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Northwoods Capital V Limited, as a Lender
         
By:    /s/
 
Name:
 
Title:

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

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
 
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
 
       
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 II, LTD.
 
By:  Ares Enhanced Loan Management II, L.P., Investment Manager
 
By:  Ares Enhanced Loan GP II, 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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Ares IIR CLO Ltd.
 
By:  Ares CLO Management IIR, L.P., Investment Manager
 
By:  Ares CLO GP IIR, LLC, Its General Partner
 
ARES IIIR/IVR CLO LTD.
 
By:  ARES CLO MANAGEMENT IIIR/IVR, L.P.
 
By:  ARES CLO GP IIIR/IVR, 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

Ares VR CLO Ltd.
 
By:  Ares CLO Management VR, L.P., Investment Manager
 
By:  Ares CLO GP VR, LLC, Its General Partner
 
Ares VIR CLO Ltd.
 
By:  Ares CLO Management VIR, L.P., Investment Manager
 
By:  Ares CLO GP VIR, 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 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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
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
   

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Atrium V, as a Lender
         
By:         /s/ Linda R. Karn
 
Name:              Linda R. Karn
 
Title:                Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Atrium VI, as a Lender
         
By:         /s/ Linda R. Karn
 
Name:              Linda R. Karn
 
Title:               Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Cadogan Square CLO II B.V. as a Lender
         
By:         /s/ Roberta Girard
 
Name:              Roberta Girard
 
Title:               Vice President

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Cadogan Square CLO III B.V. as a Lender
         
By:         /s/ Roberta Girard
 
Name:              Roberta Girard
 
Title:               Vice President

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Cadogan Square CLO IV B.V. as a Lender
         
By:         /s/ Roberta Girard
 
Name:              Roberta Girard
 
Title:                 Vice President

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Castle Garden Funding, as a Lender
         
By:         /s/ Linda R. Karn
 
Name:              Linda R. Karn
 
Title:               Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Credit Suisse Syndicated Loan Fund, as a Lender
         
By:         /s/ Linda R. Karn
 
Name:              Linda R. Karn
 
Title:                Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
CSAM Funding III, as a Lender
         
By:         /s/ Linda R. Karn
 
Name:              Linda R. Karn
 
Title:                Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
CSAM Funding IV, as a Lender
         
By:         /s/ Linda R. Karn
 
Name:              Linda R. Karn
 
Title:                Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Madison Park Funding I, Ltd., as a Lender
         
By:         /s/ Linda R. Karn
 
Name:              Linda R. Karn
 
Title:                Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Madison Park Funding II, Ltd., as a Lender
         
By:         /s/ Linda R. Karn
 
Name:              Linda R. Karn
 
Title:                Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Madison Park Funding III, Ltd., as a Lender
         
By:         /s/ Linda R. Karn
 
Name:              Linda R. Karn
 
Title:               Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Madison Park Funding IV, Ltd., as a Lender
         
By:         /s/ Linda R. Karn
 
Name:              Linda R. Karn
 
Title:                Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Madison Park Funding V, Ltd., as a Lender
         
By:         /s/ Linda R. Karn
 
Name:              Linda R. Karn
 
Title:                Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Madison Park Funding VI, Ltd., as a Lender
         
By:         /s/ Linda R. Karn
 
Name:              Linda R. Karn
 
Title:               Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Credit Suisse Loan Funding LLC, as a Lender
         
By:         /s/ Robert Healey
 
Name:              Robert Healey
 
Title:                Director

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Eaton Vance CDO IX Ltd., as a Lender
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Craig P. Russ
 
Name:              Craig P. Russ
 
Title:                Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Eaton Vance CDO VIII, Ltd., as a Lender
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Craig P. Russ
 
Name:              Craig P. Russ
 
Title:               Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Eaton Vance CDO X PLC, as a Lender
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Craig P. Russ
 
Name:              Craig P. Russ
 
Title:                Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Eaton Vance Floating-Rate Income Trust, as a Lender
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Craig P. Russ
 
Name:              Craig P. Russ
 
Title:                 Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Grayson & Co., as a Lender
 
By:  Boston Management and Research as Investment Advisor
         
By:         /s/ Craig P. Russ
 
Name:              Craig P. Russ
 
Title:                                                  Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Eaton Vance Institutional Senior Loan Fund, as a Lender
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Craig P. Russ
 
Name:              Craig P. Russ
 
Title:                                                  Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Eaton Vance Limited Duration Income Fund, as a Lender
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Craig P. Russ
 
Name:              Craig P. Russ
 
Title:                                                  Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Eaton Vance Loss Opportunities Fund, LTD., as a Lender
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Craig P. Russ
 
Name:              Craig P. Russ
 
Title:                                                  Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Eaton Vance Medallion Floating-Rate Income Portfolio, as a Lender
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Craig P. Russ
 
Name:              Craig P. Russ
 
Title:                                                  Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Senior Debt Portfolio, as a Lender
 
By:  Boston Management and Research as Investment Advisor
         
By:         /s/ Craig P. Russ
 
Name:              Craig P. Russ
 
Title:                                                  Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Eaton Vance Short Duration Diversified Income Fund, as a Lender
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Craig P. Russ
 
Name:              Craig P. Russ
 
Title:                                                  Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Eaton Vance VT Floating-Rate Income Fund, as a Lender
 
By:  Eaton Vance Management as Investment Advisor
         
By:         /s/ Craig P. Russ
 
Name:              Craig P. Russ
 
Title:                                                  Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Eaton Vance Senior Income Trust, as a Lender
 
By:  Eaton Vance Management As Investment Advisor
         
By:         /s/ Craig P. Russ
 
Name:              Craig P. Russ
 
Title:                                                  Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
General Electric Capital Corporation, as a Lender
 
Consenting Lender:  Media, Communications and Entertainment, a division of
Sponsor Finance, a business segment of General Electric Capital Corporation
         
By:         /s/ Jason Soto
 
Name:              Jason Soto
 
Title:                                                  Duly Authorized
Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
GN3 SIP Limited
 
By:  GoldenTree Asset Management, LP, as a Lender
         
By:         /s/ Karen Weber
 
Name:              Karen Weber
 
Title:                                                  Director - Bank Debt

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
GoldenTree 2004 Trust
 
By:  GoldenTree Asset Management, LP, as a Lender
         
By:         /s/ Karen Weber
 
Name:              Karen Weber
 
Title:                                                  Director - Bank Debt

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
GoldenTree Credit Opportunities Financing I, Limited
 
By:  GoldenTree Asset Management, LP, as a Lender
         
By:         /s/ Karen Weber
 
Name:              Karen Weber
 
Title:                                                  Director - Bank Debt

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
GoldenTree Credit Opportunities Second Financing, Limited
 
By:  GoldenTree Asset Management, LP, as a Lender
         
By:         /s/ Karen Weber
 
Name:              Karen Weber
 
Title:                                                  Director - Bank Debt

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
GoldenTree European Financing B.V.
 
By:  GoldenTree Asset Management UK LLP, as a shareholder of RDA Holding Co.
         
By:         /s/ Karen Weber
 
Name:              Karen Weber
 
Title:                                                  Director - Bank Debt

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
GoldenTree Leverage Loan Financing I, Limited
 
By:  GoldenTree Leverage Loan Manager, LLC, as a Lender
         
By:         /s/ Karen Weber
 
Name:              Karen Weber
 
Title:                                                  Director - Bank Debt

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
GoldenTree Loan Opportunities III, Limited
 
By:  GoldenTree Asset Management, LP, as a Lender
         
By:         /s/ Karen Weber
 
Name:              Karen Weber
 
Title:                                                  Director - Bank Debt

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
GoldenTree Loan Opportunities IV, Limited
 
By:  GoldenTree Asset Management, LP, as a Lender
         
By:         /s/ Karen Weber
 
Name:              Karen Weber
 
Title:                                                  Director - Bank Debt

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
GoldenTree Loan Opportunities V, Limited
 
By:  GoldenTree Asset Management, LP, as a Lender
         
By:         /s/ Karen Weber
 
Name:              Karen Weber
 
Title:                                                  Director - Bank Debt

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Laurelin II B. V
 
By:  GoldenTree Asset Management, LP, as a Lender
         
By:         /s/ Karen Weber
 
Name:              Karen Weber
 
Title:                                                  Director - Bank Debt

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
NCM GT 2008-2 LLC, as a Lender
         
By:         /s/ James D. Jones
 
Name:              James D. Jones
 
Title:                                                  Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
ING International (II) Senior Bank Loans USD, as a Lender
         
By:         /s/Mohamed Basma
 
Name:              Mohamed Basma
 
Title:                                                   Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
ING Investment Management CLO I, Ltd., as a Lender
         
By:         /s/Mohamed Basma
 
Name:              Mohamed Basma
 
Title:                                                   Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
ING International II Senior Bank Loans Euro, as a Lender
         
By:         /s/Mohamed Basma
 
Name:              Mohamed Basma
 
Title:                                                   Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
ING Investment Management CLO II, Ltd., as a Lender
         
By:         /s/Mohamed Basma
 
Name:              Mohamed Basma
 
Title:                                                   Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
ING Investment Management CLO III, Ltd., as a Lender
         
By:         /s/Mohamed Basma
 
Name:              Mohamed Basma
 
Title:                                                   Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
ING Investment Management CLO IV, Ltd., as a Lender
         
By:         /s/Mohamed Basma
 
Name:              Mohamed Basma
 
Title:                                                   Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
ING Investment Management CLO V, Ltd., as a Lender
         
By:         /s/Mohamed Basma
 
Name:              Mohamed Basma
 
Title:                                                   Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
ING Prime Rate Trust, as a Lender
         
By:         /s/Mohamed Basma
 
Name:              Mohamed Basma
 
Title:                                                   Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
ING Senior Income Fund, as a Lender
         
By:         /s/Mohamed Basma
 
Name:              Mohamed Basma
 
Title:                                                   Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
JPMorgan Chase Bank, N.A., as a Lender
         
By:         /s/ Elizabeth Kelley
 
Name:              Elizabeth Kelley
 
Title:                                                  Managing Director

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Merrill Lynch Capital Corporation, as a Lender
         
By:         /s/ Stephen J. Quine
 
Name:              Stephen J. Quine
 
Title:                                                  Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Nomura Bond & Loan Fund, as a Lender
 
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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
REGIMENT CAPITAL LTD., as a Lender
 
By:  Regiment Capital Management, LLC as its Investment Advisor
         
By:         /s/ Mark Brostowski
 
Name:              Mark Brostowski
 
Title:                                                  Partner

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Cornerstone CLO Ltd., as a Lender
 
By:  Stone Tower Debt Advisors LLC as its Collateral Manager
         
By:
 
Name:
 
Title:                                                  Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Rampart CLO 2007 Ltd., as a Lender
 
By:  Stone Tower Debt Advisors LLC as its Collateral Manager
         
By:
 
Name:
 
Title:                                                  Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Stone Tower CLO VII Ltd., as a Lender
 
By:  Stone Tower Debt Advisors LLC as its Collateral Manager
         
By:
 
Name:
 
Title:                                                  Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
Stone Tower CLO VIII Ltd., as a Lender
 
By:  Stone Tower Debt Advisors LLC as its Collateral Manager
         
By:
 
Name:
 
Title:                                                  Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

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

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
The Foothill Group, Inc., as a Lender
         
By:         /s/ Greg Apkarian
 
Name:              Greg Apkarian
 
Title:                                                  V.P.

 
Genesis CLO 2007-2 LTD, as a Lender
     
By:  LLCP Advisors LLC as Collateral Manager
 
 
By:         /s/ Tejs Broberg
 
Name:              Tejs Broberg
 
Title:                                                   Vice President

 

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 

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

 

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 

 
GOLDENTREE MULTISTRAGETY FINANCING, LTD.
     
By:  GoldenTree Asset Management, LP, as a shareholder of RDA Holding Co
 
 
By:         /s/ Karen Weber
 
Name:               Karen Weber
 
Title:                                                   Director – Bank Debt

 

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
GOLDENTREE CREDIT OPPORTUNITIES FINANCING I, LTD.
     
By:  GoldenTree Asset Management, LP, as a shareholder of RDA Holding Co
 
 
By:         /s/ Karen Weber
 
Name:               Karen Weber
 
Title:                                                   Director – Bank Debt

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
GOLDENTREE HIGH YIELD VALUE MASTER FUND, LP
     
By:  GoldenTree Asset Management, LP, as a shareholder of RDA Holding Co
 
 
By:         /s/ Karen Weber
 
Name:               Karen Weber
 
Title:                                                   Director – Bank Debt

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
GOLDENTREE PARTNERS, LP
     
By:  GoldenTree Asset Management, LP, as a shareholder of RDA Holding Co
 
 
By:         /s/ Karen Weber
 
Name:               Karen Weber
 
Title:                                                   Director – Bank Debt

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
GOLDENTREE PARTNERS (100), LP
     
By:  GoldenTree Asset Management, LP, as a shareholder of RDA Holding Co
 
 
By:         /s/ Karen Weber
 
Name:               Karen Weber
 
Title:                                                   Director – Bank Debt

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
GOLDENTREE OFFSHORE FUND, LTD.
     
By:  GoldenTree Asset Management, LP, as a shareholder of RDA Holding Co
 
 
By:         /s/ Karen Weber
 
Name:               Karen Weber
 
Title:                                                   Director – Bank Debt

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
GOLDENTREE EUROPEAN FINANCING B.V.
     
By:  GoldenTree Asset Management UK LLP, as a shareholder of RDA Holding Co
 
 
By:         /s/ Karen Weber
 
Name:               Karen Weber
 
Title:                                                   Director – Bank Debt

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
GSO SPECIAL SITUATIONS OVERSEAS FUND LTD.
     
By:  GSO Capital Partners LP, its investment advisor
 
 
By:         /s/ Christopher H. Sullivan
 
Name:               Christopher H. Sullivan
 
Title:                                                   Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
GSO CREDIT OPPORTINITIES FUND (HELIOS), L.P.
     
By:  GSO Capital Partners LP, its investment advisor
 
 
By:         /s/ Christopher H. Sullivan
 
Name:               Christopher H. Sullivan
 
Title:                                                   Authorized Signatory

 

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
GSO SPECIAL SITUATIONS FUND L.P.
     
By:  GSO Capital Partners LP, its investment advisor
 
 
By:         /s/ Christopher H. Sullivan
 
Name:               Christopher H. Sullivan
 
Title:                                                   Authorized Signatory

 

 

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
MERRILL LYNCH CAPITAL CORPORATION
         
By:         /s/ Jack Purcell
 
Name:               Jack Purcell
 
Title:                                                  Vice President &
Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
SOLAR CAPITAL LLC
         
By:         /s/ Michael Gross
 
Name:               Michael Gross
 
Title:                                                  Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
DLJ INVESTMENT PARTNERS, L.P.
     
By:  DLJ Investment Partners II, Inc., its General Partner
 
 
By:         /s/ Doug M. Ladden
 
Name:               Doug M. Ladden
 
Title:                                                   Principal

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
DLJ INVESTMENT PARTNERS II, L.P.
     
By:  DLJ Investment Partners II, Inc., its Managing General Partner
 
 
By:         /s/ Doug M. Ladden
 
Name:               Doug M. Ladden
 
Title:                                                   Principal

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
DLJIP HOLDINGS, L.P.
     
By:  DLJ Investment Partners II, Inc., its General Partner
 
 
By:         /s/ Doug M. Ladden
 
Name:               Doug M. Ladden
 
Title:                                                   Principal

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
DLJ MERCHANT BANKING PARTNERS II, L.P.
     
By:  DLJ Merchant Banking II, Inc., its Managing General Partner
 
 
By:         /s/ William L. Spiro
 
Name:               William L. Spiro
 
Title:                                                   Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
DLJ MERCHANT BANKING PARTNERS II-A, L.P.
     
By:  DLJ Merchant Banking II, Inc., its Managing General Partner
 
 
By:         /s/ William L. Spiro
 
Name:               William L. Spiro
 
Title:                                                   Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
DLJ OFFSHORE PARTNERS II, C.V.
     
By:  DLJ Merchant Banking II, Inc., its Advisory General Partner
 
 
By:         /s/ William L. Spiro
 
Name:               William L. Spiro
 
Title:                                                   Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
DLJ DIVERSIFIED PARTNERS, L.P.
     
By:  DLJ Diversified Partners, Inc., its Managing General Partner
 
 
By:         /s/ Doug M. Ladden
 
Name:               Doug M. Ladden
 
Title:                                                   Principal

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
DLJ DIVERSIFIED PARTNERS-A, L.P.
     
By:  DLJ Diversified Partners, Inc., its Managing General Partner
 
 
By:         /s/ Doug M. Ladden
 
Name:               Doug M. Ladden
 
Title:                                                   Principal

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
DLJ MB FUNDING  II, INC.
         
By:         /s/ William L. Spiro
 
Name:               William L. Spiro
 
Title:                                                   Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
DLJ MILLENIUM PARTNERS, L.P.
     
By:  DLJ Merchant Banking II, Inc., its Managing General Partner
 
 
By:         /s/ William L. Spiro
 
Name:               William L. Spiro
 
Title:                                                   Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
DLJ MILLENIUM PARTNERS-A, L.P.
     
By:  DLJ Merchant Banking II, Inc., its Managing General Partner
 
 
By:         /s/ William L. Spiro
 
Name:               William L. Spiro
 
Title:                                                   Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
DLJ EAB PARTNERS, L.P.
     
By:  DLJ LBO Plans Management Corporation, Inc., its General Partner
 
 
By:         /s/ William L. Spiro
 
Name:               William L. Spiro
 
Title:                                                   Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
DLJ ESC II, L.P.
     
By:  DLJ LBO Plans Management Corporation, Inc., its General Partner
 
 
By:         /s/ William L. Spiro
 
Name:               William L. Spiro
 
Title:                                                   Vice President

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
DLJ FIRST ESC, L.P.
     
By:  DLJ LBO Plans Management Corporation, Inc., its Managing General Partner
 
 
By:         /s/ William L. Spiro
 
Name:               William L. Spiro
 
Title:                                                   Vice President

 
AND
 

         
By:  DLJ LBO Plans Management Corporation II, Inc., its Special General Partner
 
 
By:         /s/ William L. Spiro
 
Name:               William L. Spiro
 
Title:                                                   Vice President

 

 

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY
         
By:         /s/ Howard Stern
 
Name:               Howard Stern
 
Title:                                                   Authorized
Representative

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
ARES LEVERAGED INVESTMENT FUND II, L.P.
         
By:         /s/ Americo Cascella
 
Name:               Americo Cascella
 
Title:                                                   Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
ARES LEVERAGED INVESTMENT FUND, L.P.
         
By:         /s/ Americo Cascella
 
Name:               Americo Cascella
 
Title:                                                   Authorized Signatory

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
W CAPITAL PARTNERS, L.P.
         
By:         /s/ Stephen Wertheimer
 
Name:               Stephen Wertheimer
 
Title:                                                   Managing Director

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
STARR INTERNATIONAL USA INVESTMENTS LLC.
         
By:         /s/ Michael J. Horvath
 
Name:               Michael J. Horvath
 
Title:                                                   Associate Counsel

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
C.V. STARR & CO., INC.
         
By:         /s/ Michael J. Horvath
 
Name:               Michael J. Horvath
 
Title:                                                   Associate Counsel
           

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
NORTHWOODS CAPITAL VI, LIMITED
     
By: Angelo Gordon & Co., L.P., as Collateral Manager
     
By:         /s/ Bruce Martin
 
Name:               Bruce Martin
 
Title:                                                   Managing Director
           

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
DEUTSCHE BANK AG NEW YORK BRANCH, as a Lender
     
By: DB Services New Jersey, Inc.
     
By:         /s/ Angeline Quiniana
 
Name:               Angeline Quiniana
 
Title:                                                   Assistant Vice
President
     
By:         /s/ Deidre D. Cesario
 
Name:               Deidre D. Cesario
 
Title:                                                   Assistant Vice
President
   

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
CIFC FUNDING 2007-III, LTD, as a Lender
             
By:         /s/ S. Vaccaro
 
Name:               S. Vaccaro
 
Title:                                                   Co-Chief Investment
Officer
   

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
BIG SKY III SENIOR LOAN TRUST
     
By: Eaton Vance Management, as Investment Advisor
     
By:         /s/ Craig P. Russ
 
Name:               Craig P. Russ
 
Title:                                                   Vice President
   

 

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
EATON VANCESENIOR FLOATING-RATE TRUST
     
By: Eaton Vance Management, as Investment Advisor
     
By:         /s/ Craig P. Russ
 
Name:               Craig P. Russ
 
Title:                                                   Vice President
   

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
CDO VII PLC
     
By: Eaton Vance Management, as Interim Investment Advisor
     
By:         /s/ Craig P. Russ
 
Name:               Craig P. Russ
 
Title:                                                   Vice President
   

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

Please sign in the space provided below to indicate your agreement and consent
to the terms hereof.
 

 
AMERICAN INTERNATIONAL GROUP, INC.
     
By: AIG Global Investment Corp., its Investment Advisor
     
By:         /s/ W. Jeffrey Baxter
 
Name:               W. Jeffrey Baxter
 
Title:                                                   Managing Director
   

 
SATURN CLO, LTD.
     
By: AIG Global Investment Corp., its Collateral Manager
     
By:         /s/ W. Jeffrey Baxter
 
Name:               W. Jeffrey Baxter
 
Title:                                                   Managing Director
   

 
GALAXY V CLO, LTD.
     
By: AIG Global Investment Corp., its Collateral Manager
     
By:         /s/ W. Jeffrey Baxter
 
Name:               W. Jeffrey Baxter
 
Title:                                                   Managing Director
   

 
GALAXY VI CLO, LTD.
     
By: AIG Global Investment Corp., its Collateral Manager
     
By:         /s/ W. Jeffrey Baxter
 
Name:               W. Jeffrey Baxter
 
Title:                                                   Managing Director

 
GALAXY VII CLO, LTD.
     
By: AIG Global Investment Corp., its Collateral Manager
     
By:         /s/ W. Jeffrey Baxter
 
Name:               W. Jeffrey Baxter
 
Title:                                                   Managing Director

 
GALAXY VIII CLO, LTD.
     
By: AIG Global Investment Corp., its Collateral Manager
     
By:         /s/ W. Jeffrey Baxter
 
Name:               W. Jeffrey Baxter
 
Title:                                                   Managing Director

[Restructuring Support Agreement - Consenting Lender]
 
 

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

 

 
 

SCHEDULE I

Alex, Inc.
Allrecipes.com, Inc.
Ardee Music Publishing, Inc.
Christmas Angels Productions, Inc.
Compass Learning, 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.
Readers 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.

 
 

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

 

EXHIBIT A

PROPOSED RESTRUCTURING TERM SHEET

 
THIS TERM SHEET IS NOT AN OFFER OR A SOLICITATION WITH RESPECT TO ANY SECURITIES
OF THE COMPANY.  ANY SUCH OFFER OR SOLICITATION WILL COMPLY WITH ALL APPLICABLE
SECURITIES LAWS AND/OR PROVISIONS OF THE BANKRUPTCY CODE.  THIS TERM SHEET
CONTAINS MATERIAL NON-PUBLIC INFORMATION ABOUT A PUBLIC COMPANY AND, THEREFORE,
IS SUBJECT TO FEDERAL SECURITIES LAWS.
 
THIS TERM SHEET IS PROVIDED IN CONFIDENCE AND MAY BE DISTRIBUTED ONLY WITH THE
EXPRESS WRITTEN CONSENT OF THE COMPANY AND THE ADMINISTRATIVE AGENT.  THE TERM
SHEET IS PROVIDED IN THE NATURE OF A SETTLEMENT PROPOSAL IN FURTHERANCE OF
SETTLEMENT DISCUSSIONS.  ACCORDINGLY, THE TERM SHEET IS INTENDED TO BE ENTITLED
TO THE PROTECTIONS OF RULE 408 OF THE FEDERAL RULES OF EVIDENCE AND ANY OTHER
APPLICABLE STATUTES OR DOCTRINES PROTECTING THE USE OR DISCLOSURE OF
CONFIDENTIAL INFORMATION AND INFORMATION EXCHANGED IN THE CONTEXT OF SETTLEMENT
DISCUSSIONS.  FURTHER, NOTHING IN THE TERM SHEET SHALL BE AN ADMISSION OF FACT
OR LIABILITY OR DEEMED BINDING ON HOLDING, ITS SUBSIDIARIES, THE ADMINISTRATIVE
AGENT OR THE LENDERS.
 

 
OVERVIEW
Transaction Summary
This term sheet (the “Term Sheet”) describes a restructuring transaction (the
“Restructuring”) pursuant to which RDA Holding Co. (“Holding” and once
reorganized, “Reorganized Holding”) and various of its domestic subsidiaries
will restructure their capital structure through a pre-negotiated joint plan of
reorganization filed in connection with cases commenced  under chapter 11 of
title 11 of the United States Code, 11 U.S.C. §§ 101-1532 (the “Bankruptcy
Code”) in the United States Bankruptcy Court for the Southern District of New
York (the “Bankruptcy Court”).
 
This Term Sheet outlines the proposed capital structure and other material terms
and conditions of the Restructuring.  The Term Sheet does not include a
description of all of the terms, conditions and other provisions that are to be
contained in the definitive documentation governing the Restructuring, which
remain subject to further discussion and negotiation.
 
The pro forma exit capital structure of material long term indebtedness is set
forth under the heading “Debt Facilities” on Annex 1 attached hereto.
 

 
A-1
 

 
 

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

 

Secured Debt to be
Restructured
Indebtedness to be treated under a plan of reorganization (the “Acceptable
Plan”) will include:
 
(i) approximately $1.6 billion outstanding under that certain Credit Agreement
dated as of March 2, 2007 (the “Pre-Petition Credit Agreement”) among The
Reader’s Digest Association, Inc., (“RD”) and certain of its subsidiaries,
JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the
“Administrative Agent”), and the lenders party thereto (the “Secured Lenders”);
and
 
(ii) termination claims under certain Swap Contracts (as defined in the
Pre-Petition Credit Agreement) (the “Swap Claims” and the holders of such
claims, together with the prepetition Secured Lenders, the “Secured Parties”).
 
Such indebtedness will be restructured pursuant to the Acceptable Plan to be
filed jointly by Holding, RD and certain of RD’s domestic subsidiaries
(collectively, the “Debtors”) in proceedings (the “Cases”) to be commenced under
chapter 11 of the Bankruptcy Code in the Bankruptcy Court.
 
DIP/Exit Credit Facility
See term sheet annexed to the DIP Commitment Letter.
Adequate Protection for Pre-Petition Obligations
See term sheet annexed to the DIP Commitment Letter.
 
 
Treatment of Claims and Equity Interests
DIP Claims
The debtor in possession financing facility (the “DIP Facility”) shall, on the
effective date of the Acceptable Plan (the “Effective Date”), convert to the
Exit Financing facility in accordance with the terms of the DIP Facility or be
paid in full in cash.
Administrative Claims
Each holder of an allowed administrative claim, including claims of the type
described in section 503(b)(9) of the Bankruptcy Code, will receive payment in
full (in cash) of the unpaid portion of its allowed administrative claim on the
Effective Date or as soon thereafter as practicable (or, if payment is not then
due, shall be paid in accordance with its terms) or pursuant to such other terms
as may be agreed to by the holder of such claim and the Debtors.
Priority Tax Claims
Priority tax claims will be treated in accordance with section 1129(a)(9)(C) of
the Bankruptcy Code.
Other Priority Claims
All other priority claims will be paid in full (in cash) on the Effective Date,
or as soon thereafter as practicable, or treated in any other manner so that
such claim will otherwise be rendered unimpaired.

 
A-2
 

 
 

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

 

Pre-Petition Credit Agreement Claims
 (a) On the Effective Date, the aggregate outstanding principal amount of Term
Loans, Revolving Loans, Euro Term Loans and Swap Claims (as each such term is
defined in the Pre-Petition Credit Agreement or herein, as applicable) and the
interest accrued and unpaid as of the Petition Date (collectively, the
“Pre-Petition Obligations”) will be restructured into
(i) $300 million term loan (the “Second Priority Restructured Term Loan
Facility”) on the terms set forth on Annex 1 hereto; and
            (ii) The Euro Term Loan2 shall be reinstated and the prepetition
guaranties made by the Debtors (together with any collateral granted by the
Debtors) for the benefit of the holders of the Euro Term Loan shall be
reinstated; provided that the Euro Term Loan shall be amended with the consent
of Required Lenders to be consistent with Annex 1 hereto.
(b)  The prepetition Secured Parties shall convert that portion of the
Pre-Petition Obligations which is not restructured under the Second Priority
Restructured Term Loan Facility or part of the reinstated Euro Term Loan into
not less than 100% (subject to dilution by the Management Incentive Plan, the
Equity Buy-In Option and equity issued to such other creditor classes as may be
agreed to by the Required Consenting Lenders and the Debtors) of the new common
stock of Reorganized Holding (the “New Common Stock”) to be issued and
outstanding on the Effective Date of the Acceptable Plan, with such New Common
Stock to be distributed on a pro rata basis in accordance with the prepetition
Secured Parties’ holdings of such Pre-Petition Obligations.
(c) Notwithstanding anything herein to the contrary (i) the Euro Term Lenders
shall only be entitled to receive the treatment set forth in clause (a)(ii) on
account of their Euro Term Loan exposure and (ii) the Revolving Lenders and U.S.
Term Lenders shall only be entitled to receive the treatment set forth in
clauses (a)(i) and (b) on account of their Revolver Loan and U.S. Loan
exposures.
Impaired - entitled to vote.
Other Secured Claims
Each holder thereof will receive the following treatment:  (a) payment in full
(in cash) on the Effective Date or as soon thereafter as practicable;
(b) delivery of collateral securing any such claim and payment of any interest
required under section 506(b) of the Bankruptcy Code; or (c) such other
treatment as is necessary to satisfy section 1129 of the Bankruptcy Code.
Unimpaired; not entitled to vote – deemed to accept.
Unsecured Claims Related to Operations
Each holder of unsecured claims related to operations will receive payment in
full in cash as and when such claims become due and payable in the ordinary
course of business, or otherwise receive such treatment as to render such holder
unimpaired.   The Debtors may elect to separate general unsecured claims into
appropriate subclasses.
Unimpaired; not entitled to vote – deemed to accept.3

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

 
2Required Consenting Lenders and Debtors to agree on different classification,
if appropriate.
 
3The Debtors may elect to renegotiate and/or reject certain executory contracts
and to separately classify and impair any claims arising therefrom.

 
A-3
 

 
 

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

 

Claims of holders of Senior Subordinated Notes
Holders of Senior Subordinated Notes (as defined in that certain Indenture dated
March 2, 2007) shall not receive any distributions.  Any agreement to provide a
distribution to holders of Senior Subordinated Notes shall require the consent
of the Debtors and the Required Consenting Lenders and shall require holders of
the Senior Subordinated Notes to vote in favor of and otherwise support the
Acceptable Plan and all of the provisions thereof.4
Impaired; not entitled to vote – deemed to reject.
General Unsecured Claims
TBD
Existing Equity Interests
All existing common and preferred equity interests in Holding or other existing
securities consisting of (or convertible into) equity interests in Holding,
including any warrants or vested or unvested options to purchase equity
interests in Holding, shall be extinguished as of the Effective Date.  All
equity interests of Holding’s subsidiaries shall continue to be held by Holding
and the subsidiaries of Holding holding such equity interests prior to the
commencement of the Cases.
Impaired; not entitled to vote – deemed to reject.
Equity Buy-In Option
The Prepetition Secured Parties agree that the Company may issue up to $50-100
million of the New Common Stock, which shall represent no more than 10%-20% of
the New Common Stock, pursuant to a mechanism to be agreed.  The buy-in right
would be available to holders of Senior Subordinated Notes that are qualified
institutional buyers (as defined in Rule 144A under the Securities Act of 1933),
with the proceeds of such offering to be distributed to Reorganized
Holding.  Participating holders shall be provided with registration rights
entitling them to participate in any registration statement filed by Reorganized
Holdings subject to customary limitations.
 
General Provisions
Management Incentive Programs
The Acceptable Plan will provide that promptly on or after the effective
date,  equity awards (in the form of restricted stock, options or warrants) for
7.5% of the New Common Stock (on a fully diluted basis) of Reorganized Holding
will be granted to continuing employees of the Debtors and members of the new
board of directors by the new board of directors of Reorganized Holding, with
pricing, vesting and exercise terms to be determined by the new board upon
consultation with the CEO; provided, that such equity grant shall not include
more than 2.5% in the form of restricted New Common Stock.  Such equity awards
shall be on terms reflective of a policy of rewarding the contribution of
management to the long-term financial performance of the reorganized Debtors.
The Acceptable Plan will further provide for assumption of the compensation
plans presented by management to the Consenting Lenders referred to as the “EV
Max Plan” and the “Variable Compensation Plan” in the forms annexed hereto as
Annexes 2 and 3, respectively, for fiscal year 2010.
The Consenting Lenders further agree to support a motion to support the employee
retention plan annexed hereto as Annex 4.

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

 

 
A-4
 

 
 

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

 

Employment Agreements
Consenting Lenders agree that the employment agreements with the Company’s CEO
and CFO will be modified as agreed to in writing by the Commitment Parties (as
defined in the DIP Commitment Letter) to change, among other things, base
salaries during the chapter 11 case and the timing of payment or amount of
severance.
 
Cancellation of Instruments, Certificates and Other Documents
On the Effective Date, except to the extent otherwise provided in the Acceptable
Plan, all instruments, certificates and other documents evidencing debt or
equity interests in Holding or (as it relates to debt only) RD will be
cancelled, and the obligations of RD or Reorganized Holding and its subsidiaries
thereunder, or in any way related thereto, will be discharged.
Issuance of New Securities; Execution of Acceptable Plan Documents
On the Effective Date, or as soon as reasonably practicable thereafter,
Reorganized Holding will issue all securities, instruments, certificates and
other documents required to be issued pursuant to the Acceptable Plan.
Executory Contracts and Unexpired Leases
The Acceptable Plan will provide for the assumption or rejection, as the case
may be, of executory contracts and unexpired leases identified in a supplement
to the Acceptable Plan to the extent that any such executory contracts and
unexpired leases have not been otherwise assumed or rejected.
Intercompany Claims
On the Effective Date, Holding will, at its discretion, reinstate or compromise,
as the case may be, intercompany claims between and among Holding and its
subsidiaries.
Resolution of Disputed Claims
The Acceptable Plan will provide for the resolution of disputed claims and any
reserves therefor.
Avoidance Actions and Other Litigation
The reorganized Debtors will retain all rights to commence and pursue any and
all claims and causes of action arising under the sections 544, 545, 547, 548
and 550 of the Bankruptcy Code (collectively, the “Avoidance Actions”) and other
litigation.
The Acceptable Plan will not provide for any funding of a litigation trust that
can be used to fund litigation against the Released Shareholder Parties.
The Acceptable Plan will provide that any recovery payable to the Debtors or the
Lenders from proceeds of any cause of action of any kind or nature (including
under Chapter 5 of the Bankruptcy Code) against the Consenting Shareholders
(either directly or indirectly on account of the subordination provisions in
indenture related to the Senior Subordinated Notes) shall be payable to such
Consenting Shareholders, and if such party shall receive any recovery in respect
of such cause of action, it shall hold the proceeds or payment thereof in trust
for the Consenting Shareholders and shall promptly transfer such proceeds or
payment, as the case may be, to the Consenting Shareholders.
Exemption from Section 1145
The issuance of the New Common Stock in Reorganized Holding will be exempted
from applicable securities laws and/or from SEC registration under section 1145
of the Bankruptcy Code.
Tax Issues
The parties agree to use their commercially reasonable best efforts to complete
the financial restructuring of the Debtors contemplated by this Term Sheet in a
manner that best preserves the tax attributes of the Debtors and in a manner
satisfactory to the Required Consenting Lenders.

 
A-5
 

 
 

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

 

Retention of Jurisdiction
The Acceptable Plan will provide for the retention of jurisdiction by the
Bankruptcy Court for usual and customary matters.
 
Corporate Governance/Charter Provisions/Registration Rights
Board of Directors of Reorganized Holding
The board of directors of Reorganized Holding shall be comprised of a number of
directors to be agreed. The prepetition Secured Parties shall identify directors
through use of a search firm acceptable to the Administrative Agent and
reimbursed by the Debtors and shall initially designate all such directors upon
consultation with the CEO; provided, that certain current independent directors
may be requested to continue to serve on the Board of Directors of Reorganized
Holding.
 
Reorganized Holding as a private company.
 
Reorganized Holding shall be a private company upon the Effective Date.
Description of Capital Stock
From and after the Effective Date, subject to the right of the stockholders to
amend the Certificate of Incorporation of Reorganized Holding after the
Effective Date, Reorganized Holding shall have one class and one series of New
Common Stock.
 
CHARTER; BYLAWS
The charter and bylaws of each Debtor shall be restated consistent with section
1123(a)(6) of the Bankruptcy Code and otherwise in form and substance
satisfactory to the Administrative Agent and the Required Consenting Lenders.
 
REGISTRATION RIGHTS; STOCKHOLDERS AGREEMENT
The supplement to the Acceptable Plan shall provide for a registration rights
agreement and stockholders agreement with respect to the New Common Stock in
material form and substance reasonably satisfactory to the Required Consenting
Lenders.
 
Release and Related Provisions
Releases
The Acceptable Plan will ratify the releases set forth in the Support Agreement
and provide for mutual releases among the Consenting Shareholders, the
prepetition lenders under the Credit Agreement, the DIP Lenders, the Debtors and
their respective current and former directors, officers and professional
advisors of any and all claims or causes of action, known or unknown, relating
to any prepetition date acts or omissions..
The Debtors release of third parties will be provided for in the Acceptable Plan
only to the extent, after investigation, the Board of Directors determines it is
appropriate.
Exculpation
The Acceptable Plan will contain ordinary and customary exculpation provisions
among the Consenting Shareholders, the prepetition lenders under the Credit
Agreement, the DIP Lenders, the Debtors and their respective directors, officers
and professional advisors of any and all claims or causes of action, known or
unknown, relating to any prepetition date acts or omissions.
Indemnification
The Acceptable Plan (i) will contain ordinary and customary indemnification
provisions for indemnification of current and former directors and officers of
the Debtors to the extent of available D&O coverage and payable from the
proceeds of such D&O policies, including the advancing of defense costs prior to
final adjudication; provided, that, to the extent proceeds of such policies are
deemed property of the Debtors’ estates in the Chapter 11 Cases the Debtors will
use reasonable best efforts to seek relief from the Bankruptcy Court to have
them advanced and (ii) shall provide that the Debtors shall maintain  their
current D&O insurance coverage in place as of the Effective Date of the Support
Agreement for current and former directors and officers of the Debtors.
Discharge
The Acceptable Plan will contain ordinary and customary discharge provisions.
Injunction
The Acceptable Plan will contain ordinary and customary injunction provisions.
Compromise and Settlement
The Acceptable Plan will contain ordinary and customary compromise and
settlement provisions.
 
Acceptable Plan Implementation
Restructuring Support Agreement
Execution of Restructuring Support Agreement.
 
Conditions
Certain Conditions
See Restructuring Support Agreement and DIP Commitment Letter.

 
A-6
 

 
 

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

 

ANNEX 1

Summary of Reader’s Digest Association, Inc.
Exit Capital Structure and Debt Facilities5

1.           Capital Structure at Exit
 
Debt Facilities:
First Priority Term Loan (the “First Priority Term Loan”) converted from the
Borrower’s (as defined below) Senior Secured Priming Debtor-in-Possession Credit
Facility (the “DIP Facility”) in an amount equal to the aggregate amount, up to
a maximum amount of $150,000,000, of loans outstanding under the DIP Facility on
the date of conversion.

 
 
Euro Term Loan continued from the Existing Credit Agreement in an amount equal
to the aggregate amount, up to a maximum amount of the U.S. dollar equivalent of
€74,019,383.13, of the Euro Term Loan outstanding under the Existing Credit
Agreement on the date of continuation and having the maturity date set forth in
the Existing Credit Agreement.6

 
 
$300,000,000 Second Priority Restructured Term Loan having a maturity not
earlier than the latest to occur of the maturity of the First Priority Term Loan
and the maturity of the Euro Term Loan (the “Second Priority Term Loan”).7  The
Second Priority Term Loan will be paid as partial consideration in respect of
the obligations of the Debtors under the Existing Credit Agreement.

 

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

 
5
Capitalized terms used and not otherwise defined herein shall have the meanings
given such terms in the Term Sheet to which this summary is attached.

 
 
6
The Euro Term Loan will be documented under the same credit agreement (the “Exit
Credit Agreement”) as the First Priority Term Loan, will benefit from the same
covenants, events of default and guarantees as the First Priority Term Loan and
will be secured on a pari passu basis with the First Priority Term Loan in
respect of the collateral securing the First Priority Term Loan.  In addition,
the Euro Term Loan will continue to benefit from the Overseas Guarantees (as
defined in the Existing Credit Agreement) and the collateral pledged by the
German Borrower and the Overseas Guarantors (as each is defined in the Existing
Credit Agreement) to the same extent and with the same priority as is mandated
by the Existing Credit Agreement.  The Exit Credit Agreement will provide for a
CAM substantially similar to that provided in the Existing Credit
Agreement.  The continuation of the Euro Term Loan under the Exit Credit
Agreement will be subject to the vote of the Required Lenders under (and as
defined in) the Existing Credit Agreement.

 
 
7
The Second Priority Term Loan will benefit from the same guarantees as the First
Priority Term Loan and will be secured on a second priority basis to the First
Priority Term Loan in respect of the collateral securing the First Priority Term
Loan.  Such second priority lien will be subject to an intercreditor agreement
on terms and conditions satisfactory to the Required Lenders.

 

 
Annex 1-1
 

 
 

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

 

Interest Rate:
The interest rate applicable to the First Priority Term Loan is set forth below
under “Basic Terms of First Priority Term Loan – Interest Rate”.

 
 
The Euro Term Loan and the Second Priority Term Loan will bear interest at a
rate per annum equal to (a) the ABR plus the Applicable Margin (any loan bearing
interest based upon the ABR, an “ABR Loan”) or (b) the Eurodollar Rate plus the
Applicable Margin (any loan bearing interest based upon the Eurodollar Rate, a
“Eurodollar Loan), at the Borrower’s option.  Interest shall be payable in cash
on each Interest Payment Date except as set forth below under “PIK Election”.

 
As used herein:
 
“ABR” means the highest of (i) the rate of interest publicly announced by
JPMorgan Chase Bank, N.A. as its prime rate in effect at its principal office in
New York City, (ii) the federal funds effective rate from time to time plus 0.5%
and (iii) the Eurodollar Rate for a one month Interest Period plus 1%.
 
“Applicable Margin” means (a) in the case of the Euro Term Loan, (i) 9.0% per
annum with respect to ABR Loans and (ii) 10.0% per annum with respect to
Eurodollar Loans and (b) in the case of the Second Priority Term Loan, (i) 11.0%
per annum with respect to ABR Loans and (ii) 12.0% per annum with respect to
Eurodollar Loans.
 
“Eurodollar Rate” means the greater of (i) the rate (adjusted for statutory
reserve requirements for eurocurrency liabilities) for deposits in dollars for a
period equal to three months appearing on the Reuters Screen LIBOR01 Page and
(ii) 3.50% per annum.
 
Interest Payment Dates:
Quarterly in arrears.

 
Default Rate:
2.0% per annum above the then applicable rate.

 
PIK Election:
A portion of the Applicable Margin equal to 4.5% per annum, in the case of the
Euro Term Loan, and 6.5% per annum, in the case of the Second Priority Term
Loan, will be paid, at the Borrower’s option, in cash (a “Cash Election”) or by
adding such interest to the principal amount of the outstanding Euro Term Loan
or Second Priority Term Loan, as the case may be (a “PIK Election” and, together
with a Cash Election, an “Election”), in each case, in arrears on each Interest
Payment Date.  The Borrower will be permitted to make a Cash Election and/or a
PIK Election with respect to all or any portion of the principal amount of the
Euro Term Loan and the Second Priority Term Loan, subject to minimum thresholds
to be agreed upon; provided, that the Borrower shall not be permitted to make a
PIK

 

 
Annex 1-2
 

 
 

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

 

Election if the consolidated EBITDA of the Borrower and its consolidated
subsidiaries for the period of twelve months most recently ended on or prior to
the interest period for which such Election is being made exceeds $160,000,000,
in the case of the Euro Term Loan, and $180,000,000, in the case of the Second
Priority Term Loan.
 
 
The Borrower shall make an Election with respect to each interest period with
respect to the Euro Term Loan and the Second Priority Term Loan by providing at
least 10 days’ prior notice to the administrative agent for the Euro Term Loan
or the Second Priority Term Loan, as the case may be, prior to the beginning of
such interest period.

 
2.           Basic Terms of First Priority Term Loan
 
Borrower:
The Reader’s Digest Association, Inc. a Delaware corporation (the “Borrower”).

 
Guarantors:
RDA Holding Co., a Delaware corporation (the “Parent”), and each direct and
indirect, existing and future domestic subsidiary of the Borrower (collectively,
the “Guarantors”).

 
Lenders:
The Lenders under the DIP Facility.

 
Administrative Agent:
JPMorgan Chase Bank, N.A.

 
Amortization:
$15,000,000 per year, payable quarterly.

 
Term:
Three years from the date of conversion.

 
Collateral:
First priority lien on substantially all of the assets of the Borrower and the
Guarantors, subject to customary exceptions to be agreed by the Required
Lenders.  

 
Mandatory Prepayments:
Substantially consistent with the Existing Credit Agreement with such changes as
are appropriate for a facility of this type or are otherwise required by the
Required Lenders and which shall include a requirement that the First Priority
Term Loan be prepaid with excess cash flow pursuant to a mechanism to be agreed.

 
Interest Rate:
The ABR or Eurodollar Rate plus, in each case, the Applicable Margin in effect
under the DIP Facility on the date of conversion.

 
Certain Conditions:
The conversion of the loans outstanding under the DIP Facility into the First
Priority Term Loan will be subject to customary closing conditions, including,
without limitation, the following conditions precedent:

 

 
Annex 1-3
 

 
 

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

 

(a)  A Plan of Reorganization substantially consistent with the restructuring
support agreement (including the term sheet annexed thereto) entered into among
the Lenders and the Debtors prior to the Petition Date (the “Restructuring
Support Agreement”) shall have been confirmed pursuant to a confirmation order
of the Bankruptcy Court substantially consistent with the Restructuring Support
Agreement and such order shall not have been reversed, modified, amended, stayed
or vacated;
 
(b)  The Restructuring Support Agreement shall have been in full force and
effect from the execution thereof to the effective date of the Plan of
Reorganization;
 
(c)  The Administrative Agent and the Required Lenders shall be satisfied with
the form of the definitive loan documentation and related security and closing
documents (the “Definitive Documentation”);
 
(d)  No Default or Event of Default under the Definitive Documentation or the
DIP Facility shall have occurred and be continuing; and
 
(e)  Representations and warranties shall be true and correct in all material
respects.
 
Financial Covenants:
Minimum LTM EBITDA and minimum LTM fixed charge coverage ratio (in each case,
tested quarterly), maximum capital expenditures and minimum liquidity (tested
monthly) and such other financial covenants as may be required by the Required
Lenders.

 
 
Representations and

 
Warranties; Affirmative

 
and Negative Covenants;

 
Events of Default;

 
Other Miscellaneous

Provisions:
Substantially consistent with the Existing Credit Agreement with such changes as
are appropriate for a facility of this type or are otherwise required by the
Required Lenders.

 
Governing Law and Forum:
New York law.

 
Counsel to the
Administrative Agent
and the Lead Arranger:
Simpson Thacher & Bartlett LLP

 

 
Annex 1-4
 

 
 

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

 

ANNEX 2
 

 
Reward for Increasing Enterprise Value/
 
Enterprise Value Maximization Plan (EVMax)
 
Summary
Incremental executive plan designed to incent the delivery of longer-term
financial goals
Group 1 -  To reward for the realization of maximum enterprise value
Group 2  - To reward executives for time to emergence
Participation
Participation limited to executives that have broad enterprise wide
responsibilities or those that can impact time to emergence.  Select group will
participate in both.  All EVMax participants are also participants in the
Variable Comp Plan.
Performance Measure
Group 1 - Enterprise wide Cash EBITDA as measured in accordance with approved
plan Cash EBITDA at end of each year in two-year performance period (June 2010
and June 2011)
Group 2 - Incremental savings not contemplated in plan (driven by time to
emergence)
Performance Award
Group 1 – Cash payment based on pro-rata share of Cash EBITDA improvement over
approved plan Cash EBITDA
Group 2 – Cash payment based on a portion of saved professional fees due to
early exit
Performance Measurement Period
Group 1 - One year at Fiscal Year End
Group 2 - Time to Emergence
Payout Frequency
Group 1 - Paid at the end of 2010 Fiscal Year
Group 2 - Paid in full at emergence with a 6 month claw back provision

 

 

 
Annex 2-1
 

 

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

 
 
 
Berner chart 2 [chart2.jpg]
 

 
Annex 2-2
 

 
 

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

 

 
Berner chart 3 [chart4.jpg]
 
 
 
 

 
Annex 2-3
 

 
 

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

 

ANNEX 3

Pay for Performance/Variable Comp Plan

Summary
Broad-based plan designed to incent delivery of short-term, financial goals
(incremental Cash EBITDA and Free Cash Flow)
Participants
Includes specified level employees which provides a consistent pay for
performance philosophy among all executives
Target Award Opportunities
Target award opportunity (expressed as a % of base salary) established for each
participant relative to employee grade level and criticality of role
Performance Measure
Cash flow and Cash EBITDA.  Executives have 100% of their opportunity based on
financial results.  Performance will  be measured at the corporate level with
CEO discretion of +/- 10% at the operating unit level, assuming no change in
total pool available.
Performance Award
Cash payment
Performance Measurement Period
Annual measure  to recognize short-term goals and provide strong retention
and  incentive value
Payout Frequency
Paid out annually based on audited results for 2010.

 
 
 
 
 
 
 
 
 

 
Annex 3-1
 

 
 

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

 
 
 
 
 
Berner chart 1 [chart1.jpg]
 
 
 

 
Annex 3-2
 

 
 

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

 

ANNEX 4

Retain Talent/Talent Plan

Summary
Intended to provide select lower level employees with protection and assurance
during restructuring period; payment subject only to continued employment at
Reader’s Digest.
Participation
Limited number of low level critical employees are eligible to receive a
retention award (expressed as a percent of base salary).  No more than 10% of US
population is eligible.  Anyone in Retention Plan is not eligible for Variance
Comp Plan or any other plans.
Award Opportunities
Range from 3 - 6% of current base salary.
Payout Frequency
First installment of retention payment (25% of total target award) will be
payable at earlier of 90 days or at emergence.  The balance (75%) would be paid
at time of emergence.  Each participant must be employed on last day of each
service period to receive an award.

 

 
Annex 4-1
 

 
 

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

 

EXHIBIT B

LENDER JOINDER
This Lender Joinder to the Restructuring Support Agreement, dated as of
August 17, 2009, by and among RDA Holding Co., The Reader’s Digest Association,
Inc. (the “Company”), and certain of the Company’s subsidiaries and affiliates
set forth on Schedule 1 of the Support Agreement (as defined herein and annexed
hereto on Annex I), the Consenting Lenders signatory thereto and the Consenting
Shareholders signatory thereto (the “Support Agreement), is executed and
delivered by [                  ] (the “Joining Lender Party”) as of
[__________], 20[__].  Each capitalized term used herein but not otherwise
defined shall have the meaning set forth in the Support Agreement.

1.           Agreement to be Bound.  The Joining Lender Party hereby agrees to
be bound by all of the terms of the Support Agreement, attached to this Lender
Joinder as Annex I (as the same may be hereafter amended, restated or otherwise
modified from time to time).  The Joining Party shall hereafter be deemed to be
a “Consenting Lender” and a party for all purposes under the Support Agreement.

2.           Representations and Warranties.  With respect to the aggregate
principal amount of prepetition Total Outstandings and/or DIP Loans held by the
Joining Lender Party upon consummation of the sale, assignment, transfer,
hypothecation or other disposition of such prepetition Total Outstandings and/or
DIP Loans, the Joining Lender Party hereby makes the representations and
warranties of the Consenting Lenders set forth in Section 6 of the Support
Agreement to each of the other Parties in the Support Agreement.

3.           Governing Law.  This Lender Joinder shall be governed by and
construed in accordance with the internal laws of the State of New York, without
regard to any conflicts of law provisions which would require the application of
the law of any other jurisdiction.

* * * * *
[THE REMAINDER OF THIS PAGE IS
INTENTIONALLY LEFT BLANK]

 
B-1
 

 
 

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

 

IN WITNESS WHEREOF, the Joining Lender Party has caused this Lender Joinder to
be executed as of the date first written above.

______________________________________
Entity Name of Joining Lender Party

Authorized Signatory:

By:           ____________________
Name:
Title:

 
Principal Amount of

 
prepetition Loans $_____________

Principal Amount of
DIP Loans $_____________

 
Address: _____________________

 
B-2
 

 
 

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

 

ANNEX I

Restructuring Support Agreement

 
B-3
 

 
 

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

 
EXECUTION VERSION

EXHIBIT C

SHAREHOLDER JOINDER
This Shareholder Joinder to the Restructuring Support Agreement, dated as of
August 17, 2009, by and among RDA Holding Co., The Reader’s Digest Association,
Inc. (the “Company”), and certain of the Company’s subsidiaries and affiliates
set forth on Schedule 1 of the Support Agreement (as defined herein and annexed
hereto on Annex I), the Consenting Lenders signatory thereto and the Consenting
Shareholders signatory thereto (the “Support Agreement), is executed and
delivered by [                    ] (the “Joining Shareholder Party”) as of
[__________], 20[__].  Each capitalized term used herein but not otherwise
defined shall have the meaning set forth in the Support Agreement.

1.           Agreement to be Bound.  The Joining Shareholder Party hereby agrees
to be bound by all of the terms of the Support Agreement, attached to this
Shareholder Joinder as Annex I (as the same may be hereafter amended, restated
or otherwise modified from time to time).  The Joining Shareholder Party shall
hereafter be deemed to be a “Consenting Shareholder” and a party for all
purposes under the Support Agreement.

2.           Representations and Warranties.  With respect to the equity
interests held by the Joining Shareholder Party upon consummation of the sale,
assignment, transfer, hypothecation or other disposition of such equity
interests, the Joining Shareholder Party hereby makes the representations and
warranties of the Consenting Shareholders set forth in Section 6 of the Support
Agreement to each of the other Parties in the Support Agreement.

3.           Governing Law.  This Lender Joinder shall be governed by and
construed in accordance with the internal laws of the State of New York, without
regard to any conflicts of law provisions which would require the application of
the law of any other jurisdiction.

* * * * *
[THE REMAINDER OF THIS PAGE IS
INTENTIONALLY LEFT BLANK]

 
C-1
 

 
 

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

 

IN WITNESS WHEREOF, the Joining Shareholder Party has caused this Shareholder
Joinder to be executed as of the date first written above.

______________________________________
Entity Name of Joining Shareholder Party

Authorized Signatory:

By:           ____________________
Name:
Title:

 
Address: _____________________

 
C-2
 

 
 

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

 

ANNEX I

Restructuring Support Agreement

 
C-3
 

 
 

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