##### 



Execution Copy




---



##### 



PAGEARTICLE I.DefinitionsSECTION 1.01.
    
    Defined Terms
    
    
    1SECTION 1.02.
    
    Terms Generally
    
    
    23SECTION 1.03.
    
    Classification of Loans and Borrowings
    
    
    23SECTION 1.04.
    
    Pro Forma Calculations
    
    
    23ARTICLE II.The CreditsSECTION 2.01.
    
    Commitments
    
    
    24SECTION 2.02.
    
    Loans
    
    
    24SECTION 2.03.
    
    Borrowing Procedure
    
    
    26SECTION 2.04.
    
    Repayment of Loans; Evidence of Debt
    
    
    26SECTION 2.05.
    
    Fees
    
    
    27SECTION 2.06.
    
    Interest on Loans
    
    
    28SECTION 2.07.
    
    Default Interest
    
    
    28SECTION 2.08.
    
    Alternate Rate of Interest
    
    
    29SECTION 2.09.
    
    Termination and Reduction of Commitments
    
    
    29SECTION 2.10.
    
    Conversion and Continuation of Borrowings
    
    
    30SECTION 2.11.
    
    Repayment of Term Borrowings
    
    
    31SECTION 2.12.
    
    Prepayment
    
    
    32SECTION 2.13.
    
    Mandatory Prepayments
    
    
    32SECTION 2.14.
    
    Reserve Requirements; Change in Circumstances
    
    
    34SECTION 2.15.
    
    Change in Legality
    
    
    36SECTION 2.16.
    
    Indemnity
    
    
    36SECTION 2.17.
    
    Pro Rata Treatment
    
    
    37SECTION 2.18.
    
    Sharing of Setoffs
    
    
    37SECTION 2.19.
    
    Payments
    
    
    38SECTION 2.20.
    
    Taxes
    
    
    38SECTION 2.21.
    
    Assignment of Commitments Under Certain Circumstances; Duty to Mitigate
    
    
    40SECTION 2.22.
    
    Swingline Loans
    
    
    41SECTION 2.23.
    
    Letters of Credit
    
    
    43ARTICLE III.Representations and WarrantiesSECTION 3.01.
    
    Organization; Powers
    
    
    47
 i




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##### 



PAGESECTION 3.02.
    
    Authorization; No Conflicts
    
    
    47SECTION 3.03.
    
    Enforceability
    
    
    47SECTION 3.04.
    
    Governmental Approvals
    
    
    48SECTION 3.05.
    
    Financial Statements
    
    
    48SECTION 3.06.
    
    No Material Adverse Change
    
    
    48SECTION 3.07.
    
    Title to Properties; Possession Under Leases
    
    
    48SECTION 3.08.
    
    Subsidiaries
    
    
    49SECTION 3.09.
    
    Litigation; Compliance with Laws
    
    
    49SECTION 3.10.
    
    Agreements
    
    
    50SECTION 3.11.
    
    Federal Reserve Regulations
    
    
    50SECTION 3.12.
    
    Investment Company Act; Public Utility Holding Company Act
    
    
    51SECTION 3.13.
    
    Use of Proceeds
    
    
    51SECTION 3.14.
    
    Tax Returns
    
    
    51SECTION 3.15.
    
    No Material Misstatements; Acquisition Documentation
    
    
    51SECTION 3.16.
    
    Employee Benefit Plans
    
    
    52SECTION 3.17.
    
    Environmental Matters
    
    
    52SECTION 3.18.
    
    Insurance
    
    
    53SECTION 3.19.
    
    Security Documents
    
    
    53SECTION 3.20.
    
    Location of Real Property
    
    
    54SECTION 3.21.
    
    Labor Matters
    
    
    54SECTION 3.22.
    
    Liens
    
    
    55SECTION 3.23.
    
    Intellectual Property
    
    
    55SECTION 3.24.
    
    Solvency
    
    
    55SECTION 3.25.
    
    Acquisition Documentation
    
    
    55ARTICLE IV.Conditions of LendingSECTION 4.01.
    
    All Credit Events
    
    
    56SECTION 4.02.
    
    First Credit Event
    
    
    56ARTICLE V.Affirmative CovenantsSECTION 5.01.
    
    Existence; Businesses and Properties
    
    
    59SECTION 5.02.
    
    Insurance
    
    
    60SECTION 5.03.
    
    Obligations and Taxes
    
    
    60SECTION 5.04.
    
    Financial Statements, Reports, etc
    
    
    60SECTION 5.05.
    
    Litigation and Other Notices
    
    
    62SECTION 5.06.
    
    Information Regarding Collateral
    
    
    62SECTION 5.07.
    
    Maintaining Records; Access to Properties and Inspections;
Environmental Assessments
    
    
    63
 ii




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##### 



PAGESECTION 5.08.
    
    Use of Proceeds
    
    
    63SECTION 5.09.
    
    Additional Collateral, etc
    
    
    63SECTION 5.10.
    
    Further Assurances
    
    
    65SECTION 5.11.
    
    Rating
    
    
    65SECTION 5.12.
    
    Landlord Access Agreement
    
    
    65SECTION 5.13.
    
    Bermuda Pledge Agreement
    
    
    65ARTICLE VI.Negative CovenantsSECTION 6.01.
    
    Indebtedness
    
    
    66SECTION 6.02.
    
    Liens
    
    
    67SECTION 6.03.
    
    Sale and Lease-Back Transactions
    
    
    69SECTION 6.04.
    
    Investments, Loans and Advances
    
    
    69SECTION 6.05.
    
    Mergers, Consolidations, Sales of Assets and Acquisitions
    
    
    70SECTION 6.06.
    
    Restricted Payments; Restrictive Agreements
    
    
    71SECTION 6.07.
    
    Transactions with Affiliates
    
    
    72SECTION 6.08.
    
    Business of the Borrower and Subsidiaries; Limitation on Hedging Agreements
    
    
    72SECTION 6.09.
    
    Other Indebtedness and Agreements; Amendments to Acquisition
Documentation
    
    
    72SECTION 6.10.
    
    Capital Expenditures
    
    
    73SECTION 6.11.
    
    Interest Coverage Ratio
    
    
    73SECTION 6.12.
    
    Leverage Ratio
    
    
    74SECTION 6.13.
    
    Fiscal Year
    
    
    74ARTICLE VII.Events of DefaultARTICLE VIII.The Agents and the ArrangerARTICLE IX.MiscellaneousSECTION 9.01.
    
    Notices
    
    
    79SECTION 9.02.
    
    Survival of Agreement
    
    
    79SECTION 9.03.
    
    Binding Effect
    
    
    80SECTION 9.04.
    
    Successors and Assigns
    
    
    80SECTION 9.05.
    
    Expenses; Indemnity
    
    
    83SECTION 9.06.
    
    Right of Setoff
    
    
    85
 iii




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##### 



PAGESECTION 9.07.
    
    Applicable Law
    
    
    85SECTION 9.08.
    
    Waivers; Amendment
    
    
    85SECTION 9.09.
    
    Interest Rate Limitation
    
    
    86SECTION 9.10.
    
    Entire Agreement
    
    
    86SECTION 9.11.
    
    WAIVER OF JURY TRIAL
    
    
    87SECTION 9.12.
    
    Severability
    
    
    87SECTION 9.13.
    
    Counterparts
    
    
    87SECTION 9.14.
    
    Headings
    
    
    87SECTION 9.15.
    
    Jurisdiction; Consent to Service of Process
    
    
    87SECTION 9.16.
    
    Confidentiality
    
    
    88SECTION 9.17.
    
    Delivery of Lender Addenda
    
    
    89
 Exhibits
and Schedules
 Exhibit A
    
    Form of Administrative QuestionnaireExhibit B
    
    Form of Affiliate Subordination AgreementExhibit C
    
    Form of Assignment and Assumption AgreementExhibit D-1
    
    Form of Borrowing RequestExhibit D-2
    
    Form of Conversion/Continuation NoticeExhibit D-3
    
    Form of Prepayment NoticeExhibit E
    
    Form of Guarantee and Collateral AgreementExhibit F
    
    Form of Lender AddendumExhibit G-1
    
    Form of Mortgage (Owned Real Property)Exhibit G-2
    
    Form of Mortgage (Leased Real Property)Exhibit H
    
    Form of Perfection CertificateExhibit I
    
    Form of Exemption CertificateExhibit J-1
    
    Form of Opinion of Wilmer Cutler Pickering Hale & Dorr LLPExhibit J-2
    
    Form of Opinion of local counsel to Borrower and SubsidiariesExhibit J-3
    
    Landlord Access AgreementSchedule 1.01(a)
    
    Mortgaged PropertiesSchedule 1.01(b)
    
    Subsidiary GuarantorsSchedule 3.08
    
    SubsidiariesSchedule 3.14
    
    Tax ClaimsSchedule 3.17
    
    Environmental MattersSchedule 3.18
    
    InsuranceSchedule 3.19(a)
    
    UCC Filing OfficesSchedule 3.19(c)
    
    Mortgage Filing OfficesSchedule 3.20
    
    Owned and Leased Real PropertySchedule 3.25
    
    Acquisition DocumentationSchedule 4.02(a)
    
    Special and Local CounselSchedule 5.12
    
    Leased Real Property subject to Landlord Access Agreement
 iv




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##### 



Schedule 6.01
    
    Existing IndebtednessSchedule 6.02
    
    Existing LiensSchedule 6.04
    
    Existing Investments
 v




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##### 



Agreement Borrower Administrative Agent Collateral Agent Arranger Syndication Agent Documentation
Agent
   Definitions
 Defined Terms
 ABR
 Acquisition
 Acquisition Consideration
 Acquisition Documentation
 Acquisition Transactions
 Adjusted LIBO Rate
 Administrative Agent
 Administrative Agent Fees




---



##### 



Administrative Questionnaire
 Affiliate provided however Affiliate
 Affiliate Subordination Agreement
 Agents
 Aggregate Revolving Credit Exposure
 Agreement
 Alternate Base Rate
 Applicable Margin
 Eurodollar Revolving
    
    
    ABR RevolvingEurodollar Term
    
    ABR Term
    
    
    Loans and Swingline
    
    
    Loans and SwinglineLoans
    
    Loans
    
    
    Loans
    
    
    Loans2.25%
    
    
    1.25
    %
    
    
    2.25
    %
    
    
    1.25
    %
 Arranger
 Asset Sale provided
 2




---



##### 



Asset Sale
 Assignment and Acceptance
 Benefit Plan
 Board
 Borrower
 Borrowing
 Borrowing Request
 Breakage Event
 Business Day provided however Business Day
 Capital Expenditures
 3




---



##### 



Capital Lease Obligations
 Change in Control
 Change in Law
 Charges
 China Joint Venture
 Class
 Closing Date
 Collateral
 Collateral Agent
 Commitment
 Commitment Fee
 4




---



##### 



Commitment Fee Rate 1 2
 Commitment Letter
 Company
 Confidential Information Memorandum
 Consolidated EBITDA the sum of provided provided however provided however minus provided
 5




---



##### 



Consolidated Interest Expense
 Consolidated Net Income provided
 Continuing Directors
 Control Controlling Controlled
 6




---



##### 



Conversion/Continuation Notice
 Credit Event
 Current Assets
 Current Liabilities
 Default
 Documentation Agent
 dollars $
 Domestic Subsidiaries
 Environmental Laws
 Environmental Liability
 Environmental Permit
 Equity Interests
 7




---



##### 



Equity Issuance
 ERISA
 ERISA Affiliate
 ERISA Event
 Eurodollar
 Event of Default
 8




---



##### 



Excess Cash Flow
 Excluded Foreign Subsidiary
 Excluded Taxes
 Existing Credit Facility
 Facility Term Loan Facility Revolving Credit Facility
 Federal Funds Effective Rate
 Fees
 9




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##### 



Financial Officer
 Foreign Lender
 Foreign Subsidiary
 GAAP
 Governmental Authority
 Granting Lender
 Guarantee guarantor primary
obligor provided however
 Guarantee and Collateral Agreement
 Guarantors
 Hazardous Materials
 10




---



##### 



Hedging Agreement provided however
 Indebtedness
 Indemnified Taxes
 Indemnitee
 Information
 Intellectual Property Collateral
 Intellectual Property Security Agreement
 11




---



##### 



Interest Coverage Ratio
 Interest Payment Date
 Interest Period provided however
 Investments
 Issuing Bank
 Issuing Bank Fees
 Landlord Access Agreement
 L/C Commitment
 L/C Disbursement
 12




---



##### 



L/C Exposure
 L/C Fee Payment Date
 L/C Participation Fee
 Lender Addendum
 Lenders
 Letter of Credit
 Leverage Ratio
 LIBO Rate provided
 Lien
 13




---



##### 



Loan Documents
 Loan Parties
 Loans
 Majority Facility Lenders
 Margin Stock
 Material Adverse Effect
 Material Indebtedness
 Maximum Rate
 Merger Agreement
 Moodys
 Mortgaged Properties
 Mortgages
 14




---



##### 



Multiemployer Plan
 Net Cash Proceeds provided provided however
 Obligations
 Other Taxes
 PBGC
 Perfection Certificate
 Permits
 15




---



##### 



Permitted Acquisition Acquired Entity provided pro forma pro forma
 Permitted Investments
     16




---



##### 



Permitted Refinancing Indebtedness Refinanced Indebtedness provided
 person
 Pledged Collateral
 Prepayment Notice
 Prime Rate
 17




---



##### 



Pro Rata Percentage
 Ratings
 Real Property
 Recovery Event
 Register
 Regulation T
 Regulation U
 Regulation X
 Related Fund
 Related Parties
 Release
 Repayment Date
 Required Lenders
 18




---



##### 



Required Prepayment Percentage
 Requirement of Law
 Responsible Officer
 Restricted Indebtedness
 Restricted Payment
 Revolving Credit Borrowing
 Revolving Credit Commitment
 Revolving Credit Exposure
 Revolving Credit Lender
 Revolving Credit Maturity Date
 19




---



##### 



Revolving Loans
 S&P
 Secured Parties
 Security Documents
 Senior Secured Debt
 SPC
 Statutory Reserves
 subsidiary parent
 Subsidiary
 Subsidiary Guarantor
 20




---



##### 



Swingline Commitment
 Swingline Exposure
 Swingline Lender
 Swingline Loan
 Syndication Agent
 Synthetic Lease Obligations
 Synthetic Purchase Agreement provided
 Tax Code
 Taxes
 Term Borrowing
 Term Lender
 21




---



##### 



Term Loan Commitment
 Term Loan Maturity Date
 Term Loans
 Total Debt
 Total Revolving Credit Commitment
 Transactions
 Type Rate
 UCC
 Uniform Customs
 wholly owned subsidiary wholly
owned Subsidiary
 Withdrawal Liability
 22




---



##### 



Terms Generally provided however
 Classification of Loans and Borrowings e.g. e.g. e.g. e.g. e.g. e.g.
 Pro Forma Calculations pro forma
 23




---



##### 



The Credits
 Commitments
 Loans provided however
 provided provided provided however
  24




---



##### 



provided however
   25




---



##### 



Borrowing Procedure provided however
 Repayment of Loans; Evidence of Debt
 26




---



##### 



prima facie provided however
  Fees Commitment Fee
 Administrative Agent Fees
 27




---



##### 



L/C Fee Payment Date L/C Participation
Fee 1 4 Issuing
Bank Fees
  Interest on Loans
   Default Interest
 28




---



##### 



Alternate Rate of Interest
 Termination and Reduction of Commitments
 provided however
  29




---



##### 



Conversion and Continuation of Borrowings
        30




---



##### 



Repayment of Term Borrowings Repayment Date
 Repayment Date
    
    AmountMarch 31, 2006
    
    $
    150,000June 30, 2006
    
    $
    150,000September 30, 2006
    
    $
    150,000December 31, 2006
    
    $
    150,000March 31, 2007
    
    $
    150,000June 30, 2007
    
    $
    150,000September 30, 2007
    
    $
    150,000December 31, 2007
    
    $
    150,000March 31, 2008
    
    $
    150,000June 30, 2008
    
    $
    150,000September 30, 2008
    
    $
    150,000December 31, 2008
    
    $
    150,000March 31, 2009
    
    $
    150,000June 30, 2009
    
    $
    150,000September 30, 2009
    
    $
    150,000December 31, 2009
    
    $
    150,000March 31, 2010
    
    $
    150,000June 30, 2010
    
    $
    150,000September 30, 2010
    
    $
    150,000December 31, 2010
    
    $
    150,000March 31, 2011
    
    $
    14,250,000June 30, 2011
    
    $
    14.250,000
 31




---



##### 



Repayment Date
    
    AmountSeptember 30, 2011
    
    $
    14,250,000Term Loan Maturity Date
    
    Remainder
    Prepayment provided however
   Mandatory Prepayments
 32




---



##### 



provided
   33




---



##### 



Section 2.11 Section 2.13
 provided
  Reserve Requirements; Change in Circumstances
   provided
 34




---



##### 



provided
  provided provided further
 35




---



##### 



Change in Legality
     Indemnity Breakage
Event
 36




---



##### 



Pro Rata Treatment
 Sharing of Setoffs provided however
 37




---



##### 



Payments
  Taxes provided
  38




---



##### 



provided provided
 39




---



##### 



Assignment of Commitments Under Certain Circumstances; Duty to
Mitigate provided
 40




---



##### 



Swingline Loans Swingline Commitment
 41




---



##### 



Swingline Loans
 Prepayment
 Interest
 Participations mutatis mutandis
 42




---



##### 



Letters of Credit General
 Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions
 Expiration Date provided however
 Participations
 43




---



##### 



Reimbursement
 Obligations Absolute
       44




---



##### 



Disbursement Procedures provided
 Interim Interest
 Resignation of the Issuing Bank
 45




---



##### 



Cash Collateralization
 Additional Issuing Banks
 46




---



##### 



Representations and Warranties
  Organization; Powers
 Authorization; No Conflicts
 Enforceability
 47




---



##### 



Governmental Approvals
 Financial Statements
  No Material Adverse Change
 Title to Properties; Possession Under Leases
 48




---



##### 



Subsidiaries
 Litigation; Compliance with Laws
 49




---



##### 



Agreements
  Federal Reserve Regulations
  50




---



##### 



Investment Company Act; Public Utility Holding Company Act
 Use of Proceeds
 Tax Returns
 No Material Misstatements; Acquisition Documentation provided
 51




---



##### 



Employee Benefit Plans
 Environmental Matters
      52




---



##### 



Insurance
 Security Documents.
  53




---



##### 



Location of Real Property
 Labor Matters


54



---



##### 



Liens
 Intellectual Property
 Solvency
 Acquisition Documentation
  Conditions of Lending
  55




---



##### 



All Credit Events Credit Event
     First Credit Event
   56




---



##### 



57




---



##### 



58




---



##### 



Affirmative Covenants
  Existence; Businesses and Properties
  59




---



##### 



provided however
 Insurance
 Obligations and Taxes provided however
 Financial Statements, Reports, etc
  60




---



##### 



61




---



##### 



Litigation and Other Notices
     Information Regarding Collateral
  62




---



##### 



Maintaining Records; Access to Properties and Inspections; Environmental
Assessments
  Use of Proceeds
 Additional Collateral, etc
  63




---



##### 



64




---



##### 



Further Assurances
 Rating
 Landlord Access Agreement
 Bermuda Pledge Agreement
 65




---



##### 



Negative Covenants
  Indebtedness
     provided
  66




---



##### 



provided
     Liens
 provided
  provided
 67




---



##### 



provided
     68




---



##### 



provided
   Sale and Lease-Back Transactions
 Investments, Loans and Advances Investments
 provided
 69




---



##### 



provided
          Mergers, Consolidations, Sales of Assets and Acquisitions
 70




---



##### 



provided
  Restricted Payments; Restrictive Agreements provided however
 provided provided
 71




---



##### 



Transactions with Affiliates
 Business of the Borrower and Subsidiaries; Limitation on Hedging
Agreements
 provided
 Other Indebtedness and Agreements; Amendments to Acquisition
Documentation
  72




---



##### 



Capital Expenditures .
 AmountFiscal Quarter Ending
    
    (expressed in millions)March 31, 2006
    
    $15,400,000June 30, 2006
    
    $15,300,000September 30, 2006
    
    $16,000,000December 31, 2006
    
    $17,000,000March 31, 2007
    
    $17,400,000June 30, 2007
    
    $17,900,000September 30, 2007
    
    $18,400,000December 31, 2007
    
    $18,700,000Each fiscal quarter ending in 2008
    
    $20,600,000Each fiscal quarter ending in 2009
    
    $22,700,000Each fiscal quarter ending in 2010
    
    $24,900,000Each fiscal quarter ending in 2011
    
    $29,700,000
 Interest Coverage Ratio
 73




---



##### 



Leverage Ratio
 Fiscal Year .
  Events of Default
 Events of Default
       74




---



##### 



provided
      75




---



##### 



The Agents and the Arranger
 Agents
 76




---



##### 



77




---



##### 



78




---



##### 



Miscellaneous
 Notices
 th
    Survival of Agreement
 79




---



##### 



Binding Effect
 Successors and Assigns
 provided however provided provided provided
 80




---



##### 



Register
  81




---



##### 



provided however
 provided
 provided
 Granting
Lender SPC
 82




---



##### 



provided
  Expenses; Indemnity
 Indemnitee
 83




---



##### 



provided
 provided
   84




---



##### 



Right of Setoff
 Applicable Law UNIFORM CUSTOMS
 Waivers; Amendment
 provided however
 85




---



##### 



provided
further
 Interest Rate Limitation Charges Maximum Rate
 Entire Agreement
 86




---



##### 



WAIVER OF JURY TRIAL
 Severability
 Counterparts
 Headings
 Jurisdiction; Consent to Service of Process
 87




---



##### 



Confidentiality Information provided
 88




---



##### 



Delivery of Lender Addenda
  89




---



##### 



BLACKBOARD INC.By:
    /s/ Michael L. ChasenName:
    Michael L. ChasenTitle:
    Chief Executive OfficerCREDIT SUISSE, CAYMAN ISLANDS BRANCH,
as Administrative Agent, Collateral Agent, Issuing
Bank, Swingline Lender and ArrangerBy:
    /s/ Bill ODalyName:
    Bill ODalyTitle:
    DirectorBy:
    /s/ Cassandra DrooganName:
    Cassandra DrooganTitle:
    Vice PresidentCREDIT SUISSE, CAYMAN ISLANDS BRANCH,
as Syndication AgentBy:
    /s/ Bill ODalyName:
    Bill ODalyTitle:
    DirectorBy:
    /s/ Cassandra DrooganName:
    Cassandra DrooganTitle:
    Vice President




---



##### 



CREDIT SUISSE, CAYMAN ISLANDS BRANCH,
as Documentation AgentBy:
    /s/ Bill ODalyName:
    Bill ODalyTitle:
    DirectorBy:
    /s/ Cassandra DrooganName:
    Cassandra DrooganTitle:
    Vice President