Document:

Exhibit 10.1

Exhibit 10.1

AMENDMENT TO

ALLSCRIPTS, INC.

AMENDED AND RESTATED

1993 STOCK INCENTIVE PLAN

(Approved by Stockholders May 2, 2002)

     RESOLVED, that the second sentence of Section 2 is hereby deleted in its entirety and replaced with the following:

"The maximum number of Common Shares to be issued pursuant to all grants under this Plan shall be 8,393,489."

AMENDMENT TO

ALLSCRIPTS, INC.

AMENDED AND RESTATED

1993 STOCK INCENTIVE PLAN

(Approved by Stockholders May 10, 2000)

     RESOLVED, that the second sentence of Section 2 is hereby deleted in its entirety and replaced with the following:

"The maximum number of Common Shares to be issued pursuant to all grants under this Plan shall be 7,393,489."

ALLSCRIPTS, INC.

AMENDED AND RESTATED

1993 STOCK INCENTIVE PLAN

     WHEREAS, on September 14, 1993, the Board of Directors of Allscripts, Inc. (the "Company") approved the adoption of the Company's 1993 Stock Incentive Plan (this "Plan" or the "1993 Plan");

     WHEREAS, effective June 28, 1999 the Company effected a reverse split of its common shares, $0.01 par value per share (the "Common Shares"), pursuant to which each Common Share was converted into one-sixth of a Common Share (the "Reverse Split");

     WHEREAS, all references in this Plan to numbers of Common Shares shall reflect the Reverse Split;

     WHEREAS, the Company has adopted an Incentive Stock Option Plan (the "Initial Option Plan"), a 1990 Stock Option Plan (the "1990 Plan"), a Consultant Option Plan (the "Consultant Plan") and an Amended and Restated 1993 Eligible Director Stock Option Plan (the "Director Plan") (the Initial Option Plan, 1990 Plan, Consultant Plan and Director Plan being collectively referred to herein as the "Predecessor Plans").

     WHEREAS, the Board of Directors adopted resolutions on June 7, 1999 approving an amendment and restatement of this Plan and pursuant to such resolutions, the Company wishes to amend and restate the Plan to contain the following terms:

     1. Purpose. The purpose of this Plan is to provide a means whereby the Company may, through the grant of stock incentives, including options to purchase the Company's Common Shares and stock appreciation rights, to key individuals who perform services for or on behalf of the Company (such as employees, officers, Eligible Directors, consultants and agents of the Company), attract and retain persons of ability as key individuals and motivate such persons to exert their best efforts on behalf of the Company.  "Eligible Directors" shall be members of the Board of Directors of the Company who are not employees or officers of the Company or of any other entity and who do not own beneficially, or are not affiliated with an entity that owns beneficially 10% or more of the Company's outstanding voting securities on the date when Stock Incentives are to be granted to such persons under this Plan.  The Plan authorizes the grant to such key individuals of the Company of stock incentives in the form of (a) incentive stock options ("ISOs") to purchase Common Shares of the Company under Section 422 of the Internal Revenue Code of 1986, as amended from time to time (the "Code"), (b) nonqualified stock options to purchase Common Shares of the Company ("Nonqualified Options") and (c) stock appreciation rights ("SARs") (ISOs, Nonqualified Options and SARs being referred to collectively as "Stock Incentives").

     2. Number of Shares Available Under Plan.  Stock Incentives may be granted by the Company from time to time to key individuals who perform services for or on behalf of the Company (such recipients being hereafter referred to as "grantees").  The maximum number of Common Shares to be issued pursuant to all grants under this Plan shall be 4,393,489.  The shares issued upon exercise of Stock Incentives granted under this Plan may be authorized and unissued shares or shares held by the Company in its treasury, or both.  In the event of a lapse, expiration, termination, forfeiture or cancellation of any Stock Incentive granted under this Plan or any Predecessor Plan without the issuance of shares, the shares subject to or reserved for such Stock Incentive may be used again for new grants of Stock Incentives hereunder; provided that in no event may the number of Common Shares issued hereunder exceed the total number of shares reserved for issuance.  Any Common Shares withheld or surrendered to pay withholding taxes pursuant to Section 9 or withheld or surrendered in full or partial payment of the exercise price of an ISO or Nonqualified Option pursuant to Section 5(e) and any Common Shares covered by Stock Incentives which Stock Incentives are withheld or surrendered to pay withholding taxes pursuant to Section 9 or withheld or surrendered in full or partial payment of the exercise price of an ISO or Nonqualified Option pursuant to Section 5(e) shall be added to the aggregate Common Shares available for issuance.  In no event shall the number of Common Shares underlying Stock Incentives granted hereunder to any individual in any twelve-month period exceed 3,000,000 Common Shares.

     3. Administration. This Plan shall be administered by the Compensation Committee (the "Committee") as appointed by the Board of Directors of the Company (the "Board").  To the extent required to comply with Rule 16b-3 under the Securities Exchange Act of 1934, each member of the Committee shall qualify as a "non-employee director," as defined therein.

     The Committee may interpret the Plan, prescribe, amend, and rescind any rules and regulations necessary or appropriate for the administration of the Plan, and make such other determinations and take such other action as it deems necessary or advisable, except, as otherwise expressly reserved in the Plan to the Board.

     The Committee may employ such legal counsel, consultants and agents as it may deem desirable for the administration of the Plan and may rely upon any opinion received from any such counsel or consultant and any computation received from any such consultant or agent.

     No member or former member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Stock Incentive awarded under it.  To the maximum extent permitted by applicable law, each member or former member of the Committee shall be indemnified and held harmless by the Company against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Company) arising out of any act or omission to act in connection with the Plan unless arising out of such member's or former member's own fraud or bad faith.  Such indemnification shall be in addition to any rights of indemnification the members or former members may have as directors or under the By-Laws of the Company.

     4. Eligibility and Awards. The Committee shall, subject to the limitations of the Plan, have full power and discretion to establish selection guidelines; to select eligible persons for participation; and to determine the form of grant, either in the form of ISOs, Non-qualified Options, SARs or combinations thereof, the number of Common Shares subject to the grant, the fair market value of the Common Shares, when necessary, the restriction and forfeiture provisions relating to Common Shares, the time and conditions of vesting or exercise, the conditions, if any, under which time of vesting or exercise may be accelerated, the conditions, form, time, manner and terms of payment of any award, and all other terms and conditions of the grant; provided, however, that ISOs shall not be granted to any individual who is not an employee of the Company.

     5. Terms and Conditions of Stock Incentives.  Each Stock Incentive granted under the Plan shall be evidenced by an agreement, in form approved by the Committee which shall be subject to the following express terms and conditions and to such other terms and conditions as the Committee may deem appropriate:

     (a) Stock Incentive Period.  Each Stock Incentive agreement shall specify the period for which the Stock Incentive thereunder is granted (which, in the case of ISOs, shall not exceed ten years from the date of grant or, in the case of a grant to a person who owns, directly or indirectly, within the meaning of Section 424(d) of the Code, stock representing more than 10% of the voting power of all classes of stock of the Company, shall not exceed five years from the date of grant) and shall provide that the Stock Incentive shall expire at the end of such period.

     (b) Grant Period. Consistent with paragraph 11, an ISO must be granted within ten years of the date this amendment and restatement of this Plan was adopted or the date this amendment and restatement of this Plan is approved by the Shareholders of the Company, whichever is earlier.

      (c) Exercise Price.  The per share exercise price of each Stock Incentive shall be determined by the Committee at the time any Stock Incentive is granted, and, in the case of ISOs, shall not be less than the fair market value (or if granted to a person who owns, directly or indirectly, within the meaning of Section 424(d) of the Code, stock representing more than 10% of the voting power of all classes of stock of the Company, 110% of fair market value) (but in no event less than the par value) of the Common Shares of the Company on the date the Stock Incentive is granted.  If the Company's Common Shares are actively traded or quoted in an established market (such as a national securities exchange or the National Association of Securities Dealers Automated Quotation System) the fair market value of the Company's Common Shares shall be the price of the Common Shares as of the close of the date the Stock Incentive is granted; however, in all other cases the fair market value of the Company's Common Shares shall be that value that the Committee shall have determined as the fair market value in good faith and in its sole discretion.

      (d) Exercise of Stock Incentive.  No part of any Stock Incentive may be exercised until the grantee shall have satisfied the conditions (e.g., such as remaining in the employ of the Company for a certain period of time), if any, after the date on which the Stock Incentive is granted as the Committee may specify in the Stock Incentive agreement.  Subject in each case to the provisions of paragraph (f) of this paragraph 5, any Stock Incentive may be exercised, to the extent exercisable by its terms, at such time or times as may be determined by the Committee.

     (e) Payment of Purchase Price Upon Exercise of ISO or Nonqualified Option.  Upon the exercise of an ISO or Nonqualified Option, the purchase price shall be paid in cash or, if the Stock Incentive agreement so provides, (i) in Common Shares of the Company, valued at its fair market value on the date of exercise, (ii) by surrender of other options for Common Shares of the Company held by the grantee which have not expired, with the surrender value being the amount by which the fair market value of a Common Share on the date of exercise exceeds the exercise price of the surrendered option(s), (iii) by surrender of SARs for their cash value, or (iv) by any combination of the foregoing.  Fair market value for purposes of this paragraph (e) shall be determined as of the date of exercise pursuant to the method described in paragraph (c) of this paragraph 5. 

     (f) Exercise in the Event of Death, Disability or Other Termination of Employment.  Subject to the limitations as to the exercisability of ISOs, which are described in subparagraphs (1), (2) and (3) below, and the remaining provisions of this Plan, the Committee, in its sole discretion, shall determine the provisions concerning the exercisability of options to be included in each grantee's Stock Incentive Agreement. 

     (1) If an ISO grantee dies, his ISO may be exercised, to the extent that the grantee could have done so at the date of his death, by the person or persons to whom the grantee's rights under the ISO pass by will or applicable law, or if no such person has such right, by his executors or administrators, at any time, or from time to time, for up to one year after the date of the grantee's death (as the Committee may specify in the Stock Incentive Agreement) but not later than the expiration date specified in paragraph (a) of this paragraph 5 if sooner than one year. 

     (2) If an ISO grantee's employment with the Company shall terminate because of his permanent disability, he may exercise his ISO, to the extent that he could have done so at the date of his termination, at any time, or from time to time, within one year of such termination but not later than the expiration date specified in paragraph (a) of this paragraph 5 if sooner than one year.  For this purpose, the term "permanent disability" means the permanent incapacity of a grantee to perform the usual duties of his employment by reason of physical or mental impairment.  Permanent disability shall be deemed to exist when so determined by the Committee based upon a written opinion of a licensed physician who has been approved by the Committee. 

     (3) If an ISO grantee's employment with the Company shall terminate for any reason other than death or permanent disability, he may exercise his ISO, to the extent that he could have done so at the date of his termination, at any time, or from time to time, within three months of the date of his termination but not later than the expiration date specified in paragraph (a) of this paragraph 5 if sooner than three months.

 

     (g) Transferability.  Except as provided in this Section 5(g), no Stock Incentive may be assigned or otherwise transferred.  Each Stock Incentive granted under the Plan shall be transferable by will and by the laws of descent and distribution.  In addition, under such rules and procedures as the Committee may establish and subject to the discretion of the Committee, the grantee of a Stock Incentive (other than an ISO) may transfer such Stock Incentive, provided that (i) the applicable Stock Incentive Agreement expressly so permits and (ii) the grantee provides such documentation or information concerning any such transfer or transferee as the Committee may reasonably request.  Any Stock Incentives held by any transferees shall be subject to the same terms and conditions that applied immediately prior to the transfer.  No ISO may be assigned or otherwise transferred in any manner. 

     (h) Dollar Limitation.  No ISO may be granted under the Plan to any employee if in the calendar year in which the ISO is first exercisable the aggregate fair market value (determined as of the date of grant) of Common Shares of the Company for which such employee has been granted ISOs which first become exercisable in such calendar year exceeds $100,000.  Any Stock Incentive which violates the rules of this subparagraph (h) of this paragraph 5 shall be deemed to be a Nonqualified Option rather than an ISO. 

     (i) SAR's. 

     (1) A grantee of an SAR shall have the right to receive cash or Common Shares having a fair market value equal to the appreciation in market value of a stated number of Common Shares from the date of grant, or in the case of an SAR granted in tandem with or by reference to an ISO or Nonqualified Option granted simultaneously with or prior to the grant of such SAR, from the date of grant of the related stock option to the date of exercise. 

     (2) SARs may be granted in tandem with or with reference to a related ISO or Nonqualified Option, in which event the grantee may elect to exercise either the option or the SAR (as to the same Common Shares subject to the option and the SAR), or the SAR may be granted independently of a related stock option.  The right shall be exercisable not more than ten years after the date of grant if granted in tandem with or with reference to an ISO.

     (3) Upon exercise of an SAR, the grantee shall be paid the excess of the then fair market value of the number of shares to which the SAR relates over the fair market value of such number of shares at the date of grant of the SAR or of the related stock option, as the case may be.  Such excess shall be paid in cash or in Common Shares having a fair market value equal to such excess, or a combination thereof, as the Committee shall determine.

     (j) Other Provisions.  Each Stock Incentive agreement shall contain such terms and provisions as the Committee may determine to be necessary or desirable.

     (k) No Rights as a Shareholder.  No grantee shall have any rights as a shareholder with respect to any Common Shares subject to his Stock Incentive prior to the date of issuance to him of a certificate or certificates for such shares.

     6. Adjustments in Event of Change in Common Shares.  If during the term of this Plan, there shall be any change in the Company's Common Shares through a merger, consolidation, reorganization, recapitalization or otherwise, or if there shall be a dividend on the Company's Common Shares, payable in Common Shares, or if there shall be a stock split, combination or other change in the Company's issued Common Shares, the Common Shares available under this Plan shall be increased or decreased proportionately to give effect to such change in the Common Shares and the Common Shares subject to then existing Stock Incentives shall be proportionately adjusted so that upon the issuance of Common Shares pursuant to such Stock Incentives, the person receiving such Common Shares will receive the securities which would have been received if the issuance of Common Shares pursuant to the Stock Incentives had occurred immediately prior to such merger, consolidation, reorganization, recapitalization, dividend, stock split, combination or other change.  Each such Stock Incentive shall be adjusted to nearest whole share, rounding downwards.  In no event shall any fractional share become subject to a Stock Incentive issued hereunder. 

     7. Compliance with Other Laws and Regulations.  The Plan, the grant and exercise of Stock Incentives thereunder, and the obligation of the Company to sell and deliver Common Shares under such Stock Incentives, shall be subject to all applicable federal and state laws, rules and regulations and to such approvals by any government or regulatory agency as may be required.  If at any time the Committee shall determine in its discretion that the listing, registration or qualification of the shares covered by the Plan upon any national securities exchange or under any state or federal law, or the consent or approval of any government regulatory body, is necessary or desirable as a condition of, or in connection with, the sale or purchase of shares under the Plan, no shares will be delivered unless and until such listing, registration, qualification, consent or approval shall have been effected or obtained, or otherwise provided for, free of any conditions not acceptable to the Committee.  If shares are not required to be registered, but are exempt from registration, upon exercising all or any portion of a Stock Incentive, the Company may require each grantee (or any person acting under paragraph 5(f)), to represent that the shares are being acquired for investment only and not with a view to their sale or distribution, and to make such other representations deemed appropriate by counsel to the Company.  Stock certificates evidencing unregistered shares acquired upon exercise of Stock Incentives shall bear any legend required by applicable state securities laws and a restrictive legend substantially as follows: 

The securities represented hereby have not been registered under the Securities Act of 1933, as amended (the "Act"), and may not be transferred in the absence of such registration or an opinion of counsel acceptable to the Company that such transfer will not require registration under such Act.

     8. No Rights to Continued Employment.  The Plan and any Stock Incentive granted under the Plan shall not confer upon any grantee any right with respect to employment or the continuance of employment by the Company, nor shall they affect in any way the right of the Company to terminate his relationship (including his employment) at any time. 

     9. Withholding.  The Committee in its discretion may cause to be made as a condition precedent to the payment of any cash or stock, appropriate arrangements for the withholding of any federal, state, local or foreign taxes. 

     10. Amendment, Suspension and Discontinuance.  The Board may from time to time amend, suspend or discontinue the Plan; provided, however, no action of the Board may, without the approval of Shareholders (a) increase the number of shares reserved for Stock Incentives pursuant to paragraph 2; (b) permit granting of any ISO at any option price less than that determined in accordance with paragraph 5(c); (c) change the eligibility of employees or class of persons to receive the Stock Incentives (other than as described in paragraphs 1, 2 and 4); or (d) permit the granting of Stock Incentives after the termination date provided for in paragraph 11. 

     11. Effective Date and Term.  The Effective Date of the Plan shall be the date of the approval of this amendment and restatement of the Plan by the Shareholders of the Company within twelve months before or after this amendment and restatement of the Plan is approved by the Company's Board of Directors.  This Plan shall terminate and no Stock Incentive shall be granted after the expiration of the period of ten years from the date this amendment and restatement of the Plan was adopted by the Board of Directors; provided that any Stock Incentives previously granted may be exercised in accordance with their terms. 

     12. The Plan shall be governed by and construed in accordance with the laws of the State of Illinois.<PAGE>

                                                                    EXHIBIT 10.1

                                                                [EXECUTION COPY]

                                 AMENDMENT NO. 1

         This AMENDMENT NO. 1, dated as of July 15, 2002 (this "Amendment"), is
made by and among WEEKLY READER CORPORATION, a Delaware corporation ("WRC"), and
COMPASSLEARNING, INC., a Delaware corporation (formerly known as JLC Learning
Corporation) ("CLI" and, together with WRC, the "Borrowers"), WRC MEDIA INC., a
Delaware corporation ("Holdings"), the Lenders signatory hereto, CREDIT SUISSE
FIRST BOSTON, as the syndication agent (the "Syndication Agent") for the
Lenders, and as the Lead Arranger and Sole Book Running Manager, and BANK OF
AMERICA, N.A., as administrative agent (in such capacity, the "Administrative
Agent") for the Lenders.

         WHEREAS, the Borrowers, the various financial institutions party
thereto from time to time (each a "Lender" and, collectively, the "Lenders"),
the Syndication Agent, the Administrative Agent and General Electric Capital
Corporation, as the Documentation Agent for the Lenders, have heretofore entered
into an Amended and Restated Credit Agreement dated as of May 9, 2001 (as
heretofore amended, the "Credit Agreement"); and

         WHEREAS, Holdings and the Borrowers desire to amend the Credit
Agreement to, among other things, revise certain financial covenants and allow a
newly-formed, wholly owned Restricted Subsidiary of Holdings to conduct certain
activities in accordance with the terms of the Credit Agreement;

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein contained, the parties hereto agree as follows:

                                   ARTICLE I
                                   DEFINITIONS

         Unless otherwise defined herein, capitalized terms defined in the
Credit Agreement shall have the same meanings when used in this Amendment. The
following additional terms, as used herein, shall have the following respective
meanings:

         "Amendment" has the meaning set forth in the preamble hereof.

         "First Amendment Effective Date" has the meaning set forth in Article
III hereof.

                                   ARTICLE II
                         AMENDMENTS TO CREDIT AGREEMENT

         Subject to the conditions and on the terms set forth herein, and in
reliance on the representations and warranties of Holdings and the Borrowers
contained herein, the Credit Agreement is hereby amended, as of the First
Amendment Effective Date, in accordance with this Article II.

Section 2.01      Amendments to Section 1.1.

         (a) Section 1.1 of the Credit Agreement is hereby amended by inserting
the following definition in the appropriate alphabetical order:

         "WRC Marketing Corp." means WRC Marketing Corp., a Delaware corporation
and a direct, wholly owned Domestic Subsidiary and Restricted Subsidiary of
Holdings.
<PAGE>

         (b) Section 1.1 of the Credit Agreement is hereby amended as follows:

                  (i) the definition of "Acquisition" is amended by deleting the
         parenthetical at the end thereof and inserting in place thereof
         "(provided that a Borrower, WRC Marketing Corp. or one of their
         respective Subsidiaries is the surviving entity)";

                  (ii) the definition of "Change in Control" is amended by
         re-lettering the existing clause (i) thereof as clause (j) and
         inserting a new clause (i) to read "the failure of Holdings at any time
         to directly own beneficially and of record on a fully diluted basis
         100% of the outstanding Capital Securities of WRC Marketing Corp., such
         capital Securities to be held free and clear of all Liens (other than
         Liens granted under a Loan Document); or";

                  (iii) the definition of "Controlled Group" is amended by
         inserting ", WRC Marketing Corp." immediately after "Holdings";

                  (iv) the definition of "Current Assets" is amended by
         inserting "or WRC Marketing Corp." immediately after "Borrowers";

                  (v) the definition of "Disposition" is amended by deleting
         "either of the Borrower's or their respective Subsidiaries' assets" and
         inserting in place thereof "any assets of Holdings or any of its
         Subsidiaries";

                  (vi) each of clauses (iv) and (v) of clause (b) of the
         definition of "Excess Cash Flow" is amended by deleting "the Borrowers
         and their respective Subsidiaries" and inserting in place thereof "the
         Borrowers, WRC Marketing Corp. and their respective Subsidiaries";

                  (vii) clause (ii) of clause (b) of the definition of "Fixed
         Charge Coverage Ratio" is amended by inserting "WRC Marketing Corp.,"
         immediately before "the Borrowers and their respective Subsidiaries";

                  (viii) the definition of "Foreign Pledge Agreement" is amended
         by deleting "either Borrower or any of its Subsidiaries" and inserting
         in place thereof "either Borrower, WRC Marketing Corp. or any of their
         respective Subsidiaries";

                  (ix) the definition of "Impermissible Qualification" is
         amended by (A) deleting the words "Holdings or either Borrower" and
         inserting in place thereof "Holdings, either Borrower or any of their
         respective Subsidiaries" and (B) deleting the words "such Borrower" and
         inserting in place thereof "a Borrower";

                  (x) the definition of "Interest Expense" is amended by
         inserting ", WRC Marketing Corp." immediately before each of the two
         iterations of "and their respective Subsidiaries)";

                  (xi) the definition of "Obligor" is amended by inserting ",
         WRC Marketing Corp." immediately before "and each other Person";

                  (xii) (A) clause (c) of the definition of "Permitted Asset
         Disposition" is amended by inserting "or WRC Marketing Corp."
         immediately after "either Borrower" and (B) clause (e) of the
         definition of "Permitted Asset Disposition" is amended by inserting ",
         WRC Marketing Corp." immediately after "either of the Borrowers";

                  (xiii) the definition of "Pledged Subsidiary" is amended by
         inserting ", WRC Marketing Corp." immediately after "either Borrower";

                                       2
<PAGE>

                  (xiv) the definition of "Restricted Payment" is amended and
         restated to read in its entirety as follows: "`Restricted Payment'
         means (a) the declaration or payment of any dividend (other than
         dividends payable solely in Capital Securities of either Borrower or
         WRC Marketing Corp.) on, or the making of any payment or distribution
         on account of, or setting apart assets for a sinking or other analogous
         fund for, the purchase, redemption, defeasance, retirement or other
         acquisition of any class of Capital Securities of either Borrower, WRC
         Marketing Corp. or any Subsidiary or any warrants or options to
         purchase any such Capital Securities, whether now or hereafter
         outstanding, or the making of any other distribution in respect
         thereof, either directly or indirectly, whether in cash or property,
         obligations of either Borrower, WRC Marketing Corp. or any Subsidiary
         or otherwise, (b) the exchange of the Capital Securities of either
         Borrower for the Capital Securities of Holdings other than in
         connection with a Permitted Equity Exchange or the exchange of the
         Capital Securities of WRC Marketing Corp. for the Capital Securities of
         Holdings, (c) the making of any Investment in Holdings by any of its
         Subsidiaries, or (d) the payment of any Management Fee.";

                  (xv) the definition of "Secured Hedging Agreements" is amended
         by (A) deleting "either Borrower or any of its Subsidiaries" and
         inserting in place thereof "either Borrower, WRC Marketing Corp. or any
         of their respective Subsidiaries" and (B) inserting ", WRC Marketing
         Corp." immediately after "such Borrower";

                  (xvi) the definition of "Subsidiary" is amended by deleting
         "the applicable Borrower" at the end thereof and inserting in place
         thereof "Holdings, WRC Marketing Corp. or a Borrower, as applicable";

                  (xvii) the definition of "Subsidiary Guarantor" is amended by
         deleting "Subsidiary of Holdings or the Borrowers" and inserting in
         place thereof "Subsidiary of Holdings, the Borrowers or WRC Marketing
         Corp.";

                  (xviii) the definition of "Subsidiary Guaranty" is amended by
         deleting "Exhibit J or Section 7.1.8" and inserting in place thereof
         "Exhibit J, or Section 7.1.8";

                  (xix) the definition of "Transaction Documents" is amended by
         inserting ", WRC Marketing Corp." immediately after "Organic Documents
         of each Borrower";

                  (xx) the definition of "Unrestricted Subsidiary" is amended by
         inserting "(or, in the case of ChildU, for the Fiscal Quarter
         immediately preceding the date of such designation)" immediately
         following "designation" in the second proviso thereto; and

                  (xxi) the definition of "wholly owned" is amended by deleting
         "either Borrower" and inserting in place thereof "Holdings, WRC
         Marketing Corp. or a Borrower, as applicable".

                                       3
<PAGE>

         Section 2.02 Amendment to Section 2.1.3. Clause (a) of Section 2.1.3 of
the Credit Agreement is hereby amended by deleting "the applicable Borrower or
any of its Subsidiaries" and inserting in place thereof "the applicable Borrower
or any Subsidiary Guarantor".

         Section 2.03 Amendment to Section 2.6.2. Section 2.6.2 of the Credit
Agreement is hereby amended by deleting "Subsidiary of either such Borrower)" at
the end thereof and inserting in place thereof "Subsidiary Guarantor)".

         Section 2.04 Amendments to Section 3.1.1. Each of clauses (e) and (f)
of Section 3.1.1 of the Credit Agreement is hereby amended by (i) deleting
"their or such Subsidiary's good faith intention" in the first proviso thereto
and inserting in place thereof "the good faith intention of such Borrower or
such Subsidiary", (ii) deleting "the Borrowers' and their respective
Subsidiaries' business activities in accordance with Section 7.2.1, and the
Borrowers or such Subsidiary" in the proviso thereof and inserting in place
thereof "the business activities of Holdings, either Borrower or any of their
respective Subsidiaries in accordance with Section 7.2.1, and Holdings, either
Borrower or such Subsidiary" and (iii) inserting "Holdings, either Borrower"
immediately after each of the two iterations of "the Borrowers" in the second
proviso thereto.

         Section 2.05 Amendment to Section 6.8. Section 6.8 of the Credit
Agreement is hereby amended by (a) inserting ", WRC Marketing Corp." in the
first sentence thereof immediately after "Unrestricted Subsidiaries" and (b)
deleting "Each Borrower has no Subsidiaries, except those Subsidiaries" in the
second sentence thereof and inserting in place thereof "WRC Marketing Corp. and
the Borrowers have no Subsidiaries, except those Subsidiaries".

         Section 2.06 Amendment to Section 7.1.3. Section 7.1.3 of the Credit
Agreement is hereby amended by deleting "each Borrower and its Subsidiaries may
be properly conducted at all times, unless such Borrower or such Subsidiary" and
inserting in place thereof "each Borrower, WRC Marketing Corp. and each of their
respective Subsidiaries may be properly conducted at all times, unless such
Borrower, WRC Marketing Corp. or such Subsidiary".

         Section 2.07 Amendment to Section 7.1.4. Clause (a) of Section 7.1.4 of
the Credit Agreement is hereby amended by deleting "the Borrowers and their
Subsidiaries" and inserting in place thereof "the Borrowers, WRC Marketing Corp.
and their respective Subsidiaries".

         Section 2.08 Amendment to Section 7.1.5. Section 7.1.5 is hereby
amended by deleting "Holdings, either Borrowers or any other Obligor's" and
inserting in place thereof "Holdings', either Borrowers' or any other
Obligor's".

         Section 2.09 Amendments to Section 7.1.7. (a) Clause (a)(ii) of Section
7.1.7 of the Credit Agreement is hereby amended by deleting "general corporate
purposes of the Borrowers and their respective Subsidiaries" and inserting in
place thereof "general corporate purposes of the Borrowers, WRC Marketing Corp.
and their respective Subsidiaries"; and (b) clause (b) of Section 7.1.7 of the
Credit Agreement is hereby amended by deleting "and their Subsidiary Guarantors"
and inserting in its place ", WRC Marketing Corp. and the Subsidiary
Guarantors".

         Section 2.10 Amendment to Section 7.1.8. Section 7.1.8 of the Credit
Agreement is hereby amended by (a) inserting ", WRC Marketing Corp." in the
first sentence thereof immediately after "leaseholds of either Borrower", (b)
inserting "Holdings, WRC Marketing Corp. or" in the second sentence thereof
immediately after "Domestic Subsidiary of", (c) deleting "neither of the
Borrowers or any of their Subsidiaries" in the first proviso to the third
sentence thereof and inserting in place thereof "none of the Borrowers, WRC
Marketing Corp., nor any of their respective Subsidiaries", and (d) deleting
"neither Borrower nor" and inserting "none of the Borrowers, WRC Marketing Corp.
or" in the second proviso to the third sentence thereof".

                                       4
<PAGE>

         Section 2.11 Amendment to Section 7.2.1. Section 7.2.1 of the Credit
Agreement is hereby amended by deleting clause (a) thereof and inserting in
place thereof "(a) its direct ownership of the Capital Securities of each of
WRC, CLI, WRC Marketing Corp., ChildU and ThinkBox and its indirect ownership of
the Capital Securities of each Subsidiary of WRC Marketing Corp., each Borrower,
ChildU and ThinkBox and".

         Section 2.12 Amendments to Section 7.2.2. Section 7.2.2 of the Credit
Agreement is hereby amended as follows:

                  (a) clause (d)(i) thereof is amended by deleting "such
         Borrower and its Subsidiaries" and inserting in place thereof "either
         Borrower and their respective Subsidiaries";

                  (b) clause (e) thereof is amended by inserting ", WRC
         Marketing Corp." immediately after "Indebtedness of the Borrowers";

                  (c) clause (e)(ii) thereof is amended by deleting each of the
         two iterations of "such Borrower and its Subsidiaries" therein and
         inserting in place thereof "a Borrower, WRC Marketing Corp. or their
         respective Subsidiaries";

                  (d) clause (f)(i) thereof is amended by inserting "of
         Holdings, WRC Marketing Corp. or either Borrower" immediately after
         "either Borrower or a Domestic Subsidiary" and clause (f)(ii) is
         amended by inserting "Foreign" immediately after "if incurred by a";

                  (e) clause (i) thereof is amended by inserting "or WRC
         Marketing Corp." immediately after "either Borrower";

                  (f) clause (n) thereof is amended by inserting ", WRC
         Marketing Corp." immediately after each of the two iterations of
         "Holdings" therein; and

                  (g) clause (o) thereof is amended by deleting such clause and
         inserting in place thereof "(o) other Indebtedness of the Borrowers,
         WRC Marketing Corp. and their respective Subsidiaries (other than
         Indebtedness of Foreign Subsidiaries owing to either Borrower, WRC
         Marketing Corp. or any of their respective Domestic Subsidiaries) in an
         aggregate amount at any time outstanding not to exceed $1,000,000.".

         Section 2.13 Amendments to Section 7.2.3. Section 7.2.3 of the Credit
Agreement is hereby amended as follows:

                  (a) clause (k) thereof is amended by inserting ", WRC
         Marketing Corp." immediately after "either Borrower";

                  (b) clause (l) thereof is amended by deleting "of any Borrower
         or any of its Subsidiaries" and inserting in place thereof "any
         Borrower, WRC Marketing Corp. or any of their respective Subsidiaries";

                  (c) clause (m) thereof is amended by deleting such clause and
         inserting in place thereof "(m) banker's liens and rights of offset of
         the holders of Indebtedness of the Borrowers, WRC Marketing Corp. or
         their respective Subsidiaries on monies deposited by either Borrower,
         WRC Marketing Corp. or any such Subsidiary with such holders of
         Indebtedness in the ordinary course of business of either Borrower, WRC
         Marketing Corp. or any such Subsidiary; and"; and

                                       5
<PAGE>

                  (d) clause (n) thereof is amended by deleting such clause and
         inserting in place thereof "(n) other Liens that do not, individually
         or in the aggregate, attach to a material portion of the assets of the
         Borrowers, WRC Marketing Corp. or any of their respective Subsidiaries
         or the Capital Securities of either Borrower, WRC Marketing Corp. or
         any of their respective Subsidiaries and do not secure obligations in
         an aggregate amount in excess of $2,000,000.".

         Section 2.14 Amendments to Section 7.2.4.

                  (a) Clause (a) of Section 7.2.4 of the Credit Agreement is
         hereby amended and restated as follows:

                  "(a) Holdings and each Borrower will not permit the Leverage
         Ratio as of the last day of any Fiscal Quarter occurring during any
         period set forth below to be greater than the ratio set forth opposite
         such period:

                             Period                            Leverage Ratio
                             ------                            --------------
                    Closing Date to 09/30/00                      6.35:1.0
                      10/01/00 to 06/30/01                        5.95:1.0
                      07/01/01 to 09/30/01                        5.75:1.0
                      10/01/01 to 03/31/02                        5.65:1.0
                      04/01/02 to 09/30/02                        5.95:1.0
                      10/01/02 to 06/30/03                        5.75:1.0
                      07/01/03 to 09/30/03                        5.50:1.0
                      10/01/03 to 12/31/03                        5.00:1.0
                     01/01/04 and thereafter                      4.00:1.0"

                  (b) clause (b) of Section 7.2.4 of the Credit Agreement is
         hereby amended and restated as follows:

                  "(b) Holdings and each Borrower will not permit the Fixed
         Charge Coverage Ratio as of the last day of any Fiscal Quarter
         occurring during any period set forth below to be less than the ratio
         set forth opposite such period:

                                                                Fixed Charge
                             Period                            Coverage Ratio
                             ------                            --------------
                    Closing Date to 09/30/00                      1.05:1.0
                      10/01/00 to 12/31/01                        1.00:1.0
                      01/01/02 to 06/30/02                        1.05:1.0
                      07/01/02 to 12/31/02                        1.00:1.0
                      01/01/03 to 09/30/03                        1.05:1.0
                      10/01/03 to 12/31/03                        1.10:1.0
                     01/01/04 and thereafter                     1.50:1.0"

                                       6
<PAGE>

         Section 2.15 Amendments to Section 7.2.5. Section 7.2.5 of the Credit
Agreement is hereby amended as follows:

                  (a) clause (d) thereof is amended by inserting ", WRC
         Marketing Corp." immediately after "Borrowers";

                  (b) clause (e) thereof is amended by deleting "or by any
         Restricted Subsidiary in other Restricted Subsidiaries" and inserting
         in place thereof ", by any Restricted Subsidiary in other Restricted
         Subsidiaries or by Holdings or either Borrower in WRC Marketing Corp."
         and by inserting "or in WRC Marketing Corp." at the end of clause (ii)
         thereof;

                  (c) clause (f) thereof is amended by (i) inserting ", WRC
         Marketing Corp." immediately after "Investments made by the Borrowers"
         and (ii) inserting "or WRC Marketing Corp., as applicable," at the end
         of clause (A) thereof;

                  (d) clause (i) thereof is amended by deleting "either Borrower
         or any Subsidiary" and inserting in place thereof "either Borrower, WRC
         Marketing Corp. or any of their respective Subsidiaries"; and

                  (e) the proviso thereto is amended by designating clauses (l)
         and (m) thereof as clauses (i) and (ii).

         Section 2.16 Amendments to Section 7.2.6. Section 7.2.6 of the Credit
Agreement is hereby amended as follows:

                  (a) clause (a) thereof is amended by deleting such clause and
         inserting in place thereof "(a) Restricted Payments made by
         Subsidiaries to a Borrower or WRC Marketing Corp. or to a wholly owned
         Restricted Subsidiary of a Borrower or of WRC Marketing Corp.";

                  (b) clause (b) thereof is amended by (i) deleting "the
         Borrowers and the Subsidiaries" and inserting in place thereof "the
         Borrowers, WRC Marketing Corp. and their respective Subsidiaries", (ii)
         deleting "any Borrower or Subsidiary" in the proviso thereto and
         inserting in place thereof "any Borrower, WRC Marketing Corp. or such
         Subsidiary", (iii) deleting "another Borrower or Subsidiary" in the
         proviso thereto and inserting in place thereof "another Borrower, WRC
         Marketing Corp. or another Subsidiary" and (iv) deleting "such other
         Borrower or Subsidiary" in the proviso thereto and inserting in place
         thereof "such other Borrower, WRC Marketing Corp. or such other
         Subsidiary";

                  (c) each of clauses (f) and (g) thereof are hereby amended by
         inserting "or WRC Marketing Corp." immediately after "Restricted
         Payments made by the Borrowers";

                  (d) each of clauses (c), (d) and (e) thereof are hereby
         amended by inserting "or WRC Marketing Corp." immediately after "the
         Borrowers"; and

                  (e) the proviso at the end of such Section is amended by
         deleting "the Borrower" and inserting in place thereof "the Borrowers".

                                       7
<PAGE>

         Section 2.17 Amendment to Section 7.2.7. Section 7.2.7 is hereby
amended by deleting "the Borrowers and their respective Subsidiaries" and
inserting in place thereof "the Borrowers, WRC Marketing Corp. and their
respective Subsidiaries".

         Section 2.18 Amendment to Section 7.2.8. Clause (b) of Section 7.2.8 is
hereby amended by inserting ", WRC Marketing Corp." immediately after "each
Borrower".

         Section 2.19 Amendments to Section 7.2.9. (a) Section 7.2.9 of the
Credit Agreement is hereby amended by deleting "either Borrower, and each
Borrower will not" and inserting in place thereof "either Borrower or WRC
Marketing Corp. or any of its Subsidiaries, and each Borrower will not";

                  (b) clause (i) of Section 7.2.9 of the Credit Agreement is
         hereby amended and restated to read as follows: "issue any Capital
         Securities (whether for value or otherwise) to any Person other than
         (A) to a Borrower, WRC Marketing Corp. or another wholly owned
         Restricted Subsidiary or (B) in the case of WRC Marketing Corp. or a
         Borrower, to Holdings";

                  (c) clause (ii) of Section 7.2.9 of the Credit Agreement is
         hereby amended by deleting "Holdings, either Borrower or any
         Subsidiary" and inserting in place thereof "Holdings, either Borrower
         or any of their respective Subsidiaries"; and

                  (d) clause (A) of Section 7.2.9 of the Credit Agreement is
         hereby amended by inserting "by CLI or WRC" at the beginning thereof.

         Section 2.20 Amendments to Section 7.2.10. (a) Clause (a) of Section
7.2.10 of the Credit Agreement is hereby amended and restated as follows: "(a)
any Restricted Subsidiary of a Borrower or WRC Marketing Corp. may liquidate or
dissolve voluntarily into, and may merge with and into, either Borrower, WRC
Marketing Corp. or any other Restricted Subsidiary of a Borrower or WRC
Marketing Corp. (provided, however, that a Subsidiary Guarantor may only
liquidate or dissolve into, or merge with and into, either Borrower, WRC
Marketing Corp. or another Subsidiary Guarantor), and the assets or Capital
Securities of any Subsidiary may be purchased or otherwise acquired by either
Borrower, WRC Marketing Corp. or any other Restricted Subsidiary (provided,
however, that the assets or Capital Securities of any Subsidiary Guarantor may
only be purchased or otherwise acquired by either Borrower, WRC Marketing Corp.
or another Subsidiary Guarantor); provided, further, that in no event shall any
Pledged Subsidiary consolidate with or merge with and into (x) any Unrestricted
Subsidiary or (y) any other Subsidiary which is not another Pledged Subsidiary
unless after giving effect thereto, the Administrative Agent shall have a
perfected pledge of, and security interest in and to, at least the same
percentage of the issued and outstanding interests of Capital Securities (on a
fully diluted basis) of the surviving Person as the Administrative Agent had
immediately prior to such merger or consolidation in form and substance
satisfactory to the Administrative Agent and its counsel, pursuant to such
documentation and opinions as shall be necessary in the opinion of the
Administrative Agent to create, perfect or maintain the collateral position of
the Secured Parties therein;"; and

                  (b) Clause (c) of Section 7.2.10 of the Credit Agreement is
         hereby amended by deleting each of the two iterations of "either
         Borrower or any of its Subsidiaries" and inserting in place thereof
         "either Borrower, WRC Marketing Corp. or any of their respective
         Subsidiaries".

         Section 2.21 Amendments to Section 7.2.12. Clause (a) of Section 7.2.12
of the Credit Agreement is hereby amended by deleting "such Borrower" and
inserting in place thereof "the applicable Obligor".

                                       8
<PAGE>

         Section 2.22 Amendments to Section 7.2.13. Section 7.2.13 of the Credit
Agreement is hereby amended by inserting "(A)" immediately before clause (i)
thereof and by inserting "or (B) is among any of WRC Marketing Corp., any
Borrower or any other Subsidiary; provided, that any transaction referred to in
this clause (B) involving any Subsidiary that is not a Subsidiary Guarantor
shall, as such transaction relates to such Subsidiary that is not a Subsidiary
Guarantor, be (i) on terms no less favorable to each Obligor party than it could
obtain in an arm's length transaction with a Person that is not an Affiliate and
(ii) of the kind that would be entered into by a prudent Person in the position
of such Obligor party with a Person that is not one of its Affiliates" at the
end of clause (ii) thereof.

         Section 2.23 Amendment to Section 11.3. Section 11.3 of the Credit
Agreement is hereby amended by deleting "Mayer, Brown & Platt" and inserting in
place thereof "Mayer, Brown, Rowe & Maw".

                                  ARTICLE III
                      CONDITIONS PRECEDENT TO EFFECTIVENESS

         Section 3.01 Conditions. This Amendment (and the amendments contained
herein) shall become effective, subject to the last paragraph of this Article
III, on the date (the "First Amendment Effective Date") when each of the
conditions set forth in this Article III shall have been satisfied.

                  (a) Counterparts and Lender Consents. The Administrative Agent
         shall have received counterparts of this Amendment executed on behalf
         of Holdings, each Borrower and the Required Lenders.

                  (b) Affirmation and Acknowledgment. The Agents shall have
         received, with counterparts for each Lender, a duly executed copy of
         the Affirmation and Acknowledgment to this Amendment, substantially in
         the form of Annex I hereto and dated the First Amendment Effective
         Date, duly executed and delivered by each of the Obligors other than
         Holdings and the Borrowers.

                  (c) Amendment Fee. The Agents shall have received, for the
         account of each Lender that executes and delivers to the Agents a
         counterpart of this Amendment on or prior to 5:00 p.m., New York time,
         on July 15, 2002 (the "Fee Calculation Date"), an amendment fee equal
         to 0.20% of each such Lender's Percentage of the Total Exposure Amount
         as of the Fee Calculation Date.

                  (d) Other Costs and Expenses. The Agents shall have received
         all fees, costs and expenses due and payable pursuant to Sections 3.3
         and 11.3 of the Credit Agreement to the extent then invoiced.

         All corporate and legal proceedings and instruments and agreements
relating to the transactions contemplated by this Amendment or in any other
document delivered in connection herewith shall be satisfactory in form and
substance to the Administrative Agent and its counsel, and the Administrative
Agent shall have received all information and copies of all documents and
papers, including records of corporate proceedings, governmental approvals, good
standing certificates and bring-down certificates, if any, which the
Administrative Agent reasonably may have requested in connection therewith, such
documents and papers where appropriate to be certified by proper corporate or
governmental authorities. The documents referred to in this Section shall be
delivered to the Administrative Agent no later than the First Amendment
Effective Date. The certificates and opinions referred to in this Section shall
be dated the First Amendment Effective Date.

                                       9
<PAGE>

         On the First Amendment Effective Date, the Credit Agreement will be
automatically amended to reflect the amendments thereto; provided that the
amendments thereto (other than those set forth in Sections 2.01(b)(xviii) and
(xx), 2.02, 2.03, 2.08, 2.14, 2.15(e), 2.16(e), 2.21 and 2.23) shall have no
force or effect until such time as Holdings causes WRC Marketing Corp. to become
a wholly owned Domestic Subsidiary and Restricted Subsidiary of Holdings and the
requirements of Section 7.1.8 of the Credit Agreement are satisfied with respect
to WRC Marketing Corp. (including the delivery of duly executed supplements to
the Subsidiary Guaranty and the Security and Pledge Agreement and such other
instruments and documents (including a legal opinion of counsel to Holdings) as
the Agents shall reasonably request). On and after the First Amendment Effective
Date, the rights and obligations of the parties hereto shall be governed by the
Credit Agreement as amended by this Amendment; provided that the rights and
obligations of the parties hereto with respect to the period prior to the First
Amendment Effective Date shall continue to be governed by the provisions of the
Credit Agreement. Once the First Amendment Effective Date has occurred, all
references to the Credit Agreement in any document, instrument, agreement, or
writing shall from and after the First Amendment Effective Date be deemed to
refer to the Credit Agreement as amended by this Amendment, and, as used in this
Amendment, the terms, "herein", "hereafter", "hereto", and words of similar
import shall mean, from and after the First Amendment Effective Date, this
Amendment. Promptly after the First Amendment Effective Date occurs, the
Administrative Agent shall notify the Borrowers and the Lenders of the First
Amendment Effective Date, and such notice shall be conclusive and binding on all
parties hereto.

                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES

         Section 4.01 Representations and Warranties. In order to induce the
Lenders to consent to the amendments contained herein and to enter into this
Amendment, each of Holdings and each Borrower, jointly and severally, represents
and warrants as set forth below:

                  (a) The amendment of the Credit Agreement effected pursuant to
         this Amendment does not impair the validity, effectiveness or priority
         of the Liens granted pursuant to any Loan Documents (the "Security
         Documents"), and such Liens continue unimpaired with the same priority
         to secure repayment of all Obligations, whether heretofore or hereafter
         incurred. The amendment of the Credit Agreement effected pursuant to
         this Amendment does not require that any new filings be made or other
         action taken to perfect or to maintain the perfection of such Liens
         other than filings to be made and other action to be taken with respect
         to WRC Marketing Corp. and its Capital Securities. The position of the
         Lenders with respect to such Liens, the Collateral (as defined in the
         Security Documents) in which a security interest was granted pursuant
         to the Security Documents and the ability of the Administrative Agent
         to realize upon such Liens pursuant to the terms of the Security
         Documents have not been adversely affected in any material respect by
         the amendment of the Credit Agreement effected pursuant to this
         Amendment or by the execution, delivery, performance or effectiveness
         of this Amendment.

                  (b) Each such Obligor reaffirms as of the First Amendment
         Effective Date such Person's respective covenants and agreements
         contained in the Credit Agreement and each Security Document to which
         such Person is a party, including, in each case, as such covenants and
         agreements may be modified by this Amendment. Each such Obligor further
         confirms that each such Loan Document to which such Person is a party
         is and shall continue to be in full force and effect and the same are
         hereby ratified, approved and confirmed in all respects, except that
         upon the occurrence of the First Amendment Effective Date, all
         references in such Loan Documents to the "Credit Agreement", "Loan
         Documents", "thereunder", "thereof", "therein" or words of like or
         similar import shall mean and be a reference to the Credit Agreement
         and the Loan Documents as amended hereby.

                                       10
<PAGE>

                  (c) Both before and immediately after giving effect to this
         Amendment, the representations and warranties set forth in Article VI
         of the Credit Agreement and each other Loan Document are, in each case,
         true and correct in all material respects with the same effect as if
         then made (unless stated to relate solely to an earlier date, in which
         case such representations and warranties shall be true and correct in
         all material respects as of such earlier date).

         Section 4.02 Validity, etc. This Amendment constitutes the legal, valid
and binding obligation of the Obligors party hereto enforceable in accordance
with its terms subject to the effects of bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws relating to or
affecting creditors' rights generally, general equitable principles (whether
considered in a proceeding in equity or at law) and an implied covenant of good
faith and fair dealing.

         Section 4.03 No Default. Both immediately before and after giving
effect to this Amendment, no Default has occurred and is continuing.

                                   ARTICLE V
                            MISCELLANEOUS PROVISIONS

         Section 5.01 Ratification of and References to the Credit Agreement.
This Amendment shall be deemed to be an amendment to the Credit Agreement, and
the Credit Agreement, as amended hereby, is hereby ratified, approved and
confirmed in each and every respect. Other than as specifically provided herein,
this Amendment shall not operate as a waiver or amendment of any right, power or
privilege of any Agent or any Lender under the Credit Agreement or any other
Loan Document or of any other term or condition of the Credit Agreement or any
other Loan Document, nor shall the entering into of this Amendment preclude any
Agent and/or any Lender from refusing to enter into any further waivers or
amendments with respect thereto.

         Section 5.02 Headings. The various headings of this Amendment are
inserted for convenience only and shall not affect the meaning or interpretation
of this Amendment or any provisions hereof.

         Section 5.03 Execution in Counterparts. This Amendment may be executed
by the parties hereto in several counterparts, each of which shall be deemed to
be an original and all of which shall constitute together but one and the same
agreement. A counterpart hereof executed and delivered by facsimile shall be
effective as an original.

         Section 5.04 Successors and Assigns. This Amendment shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

         Section 5.05 Governing Law; Entire Agreement. THIS AMENDMENT SHALL BE
DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEW YORK. This Amendment and the other Loan Documents constitute the
entire understanding among the parties hereto with respect to the subject matter
hereof and supersede any prior agreements, written or oral, with respect
thereto.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       11
<PAGE>

         IN WITNESS WHEREOF, the signatories hereto have caused this Amendment
to be executed by their respective officers thereunto duly authorized as of the
day and year first above written.

                                      WEEKLY READER CORPORATION

                                      By:
                                          ----------------------------
                                           Name:
                                           Title:

                                      COMPASSLEARNING, INC.

                                      By:
                                          ----------------------------
                                           Name:
                                           Title:

                                      WRC MEDIA INC.

                                      By:
                                          ----------------------------
                                           Name:
                                           Title:

                                      S-1
<PAGE>

LENDERS:

                                      ------------------------------------
                                               (Name of Lender)

                                      By:
                                          ----------------------------
                                           Name
                                           Title:

                                       S-2
<PAGE>

                                      CREDIT SUISSE FIRST BOSTON, as Syndication
                                      Agent and as a Lender

                                      By:
                                          ----------------------------
                                           Name:
                                           Title:

                                      BANK OF AMERICA, N.A., as Administrative
                                      Agent and as a Lender

                                      By:
                                          ----------------------------
                                          Name:
                                          Title:

                                      S-3
<PAGE>

                                     ANNEX I

                         AFFIRMATION AND ACKNOWLEDGMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]