exv10w1



 





Exhibit 10.1




FIFTH AMENDMENT TO CREDIT AGREEMENT




     THIS AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of December 1, 2006,
by and between RENAISSANCE LEARNING, INC., a Wisconsin corporation (“Borrower”), and WELLS FARGO
BANK, NATIONAL ASSOCIATION (“Bank”).



RECITALS




     WHEREAS, Borrower is currently indebted to Bank pursuant to the terms and conditions of that
certain Credit Agreement between Borrower and Bank dated as of December 1, 2003, as amended from
time to time (“Credit Agreement”).



     WHEREAS, Bank and Borrower have agreed to certain changes in the terms and conditions set
forth in the Credit Agreement and have agreed to amend the Credit Agreement to reflect said
changes.



     NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree that the Credit Agreement shall be amended as follows:



     1. Section 4.3 is hereby deleted in its entirety, and the following substituted therefore:



          “SECTION 4.3. FINANCIAL STATEMENTS. Provide to Bank all of the following, in form and detail
satisfactory to Bank:





	 	(a)	 	not later than 90 days after and as of the end of each fiscal year, an audited financial
statement of Borrower, prepared by a certified public accountant acceptable to Bank, to include
Auditor’s report;
	 
	 	(b)	 	not later than 45 days after and as of the end of each quarter, a financial statement of
Borrower, prepared by Borrower, to include balance sheet and income statement;
	 
	 	(c)	 	together with the financial statements submitted as per 4.3(a) and 4.3(b) above, a
compliance certificate, signed by the controller or vice president of the Borrower, in the form of
Exhibit A attached hereto, demonstrating in reasonable detail compliance (or noncompliance, as the
case may be) with the terms and conditions of the Credit Agreement, as amended from time to time;
	 
	 	(d)	 	from time to time such other information as Bank my reasonably request.”





     2. Section 4.9 (a) is hereby deleted in its entirety, and the following substituted therefore:



          “SECTION 4.9. (a) Total liabilities divided by Tangible Net Worth not greater than 2.00 to
1.0, measured as of the end of each fiscal quarter, with “Total Liabilities” defined as the
aggregate of current liabilities and non-current liabilities less subordinated debt, and with
“Tangible Net Worth” defined as the aggregate of total stockholders’ equity plus subordinated debt
less any intangible assets.”




     3. Except as specifically provided herein, all terms and conditions of the Credit Agreement
remain in full force and effect, without waiver or modification. All terms defined in the Credit
Agreement shall have the same meaning when used in this Amendment. This Amendment and the Credit
Agreement shall be read together, as one document.



     4. Borrower hereby remakes all representations and warranties contained in the Credit
Agreement and reaffirms all covenants set forth therein. Borrower further certifies that as of the
date of this Amendment there exists no Event of Default as defined in the Credit Agreement, nor any
condition, act or event which with the giving of notice or the passage of time or both would
constitute any such Event of Default.



     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the day
and year first written above.



	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	WELLS FARGO BANK,	 	 
	RENAISSANCE LEARNING, INC.	 	 	 	NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By: 

Title:

	 	/s/ Mary T. Minch
 

Chief Financial Officer
	 	 
	 	By:

Title:
	 	/s/ Linda Backhaus
 

Relationship Manager