Document:

Exhibit 10.3 

SCHOLASTIC CORPORATION

GUIDELINES FOR STOCK UNITS

GRANTED UNDER THE

SCHOLASTIC CORPORATION 2001 STOCK INCENTIVE PLAN

(As Amended and Restated as of July 21, 2009)

          Grants
of Stock Units (as defined below) under the Scholastic Corporation 2001 Stock
Incentive Plan (the “Plan”) shall be subject to, and governed by, the
provisions set forth in these guidelines, the Plan (including, without
limitation, Article VIII) and the applicable Award Agreement. An Award of Stock
Units shall constitute an Other Stock-Based Award under the Plan. Unless
otherwise indicated, any capitalized term used but not defined in these
guidelines shall have the meaning ascribed to such term in the Plan. 

          To
the extent applicable, these guidelines are intended to comply with the
applicable requirements of Section 409A of the Code (and the regulations
thereunder) and shall be limited, construed and interpreted in a manner so as
to comply therewith.

          The
Company initially adopted these guidelines effective as of September 20, 2004.
The Company amended and restated these guidelines effective as of May 25, 2006
in order to include a deferral feature that complies with the requirements of
Section 409A of the Code. The Company amended and restated these guidelines as
of September 23, 2008, effective as of January 1, 2005, in order to provide for
deferrals of performance-based awards and comply with the requirements of
Treasury Regulations issued under Section 409A. The Company hereby amends and
restates these guidelines effective with respect to awards of Stock Units made
on or after July 21, 2009 to modify the treatment of Stock Units upon
Termination of Employment or Consultancy. These guidelines are part of the Plan
and shall expire in accordance with Article XV thereof. 

1.       Definitions.
For purposes of these guidelines, the following definitions shall apply:

          1.1.       “Cause”
means, solely for purposes of the grant of Stock Units and notwithstanding the
definition of Cause in the Plan: (a) in the case where there is no employment
agreement, consulting agreement, change in control agreement or similar
agreement in effect between the Company or an Affiliate and the Participant at
the time of the grant of the Stock Unit (or where there is such an agreement
but it does not define “cause” (or words of like import)) any of the following
as determined by the Committee in its good faith discretion: (i) willful
misconduct of the Participant with regard to the Company; (ii) willful refusal
of the Participant to follow the proper direction of the Board or any
individual to whom the Participant reports; (iii) the Participant’s fraud or
dishonesty with regard to the Company (other than good faith expense account
disputes); or (iv) the Participant’s conviction of, or plea of guilty or nolo
contendere to, a felony or other crime involving moral turpitude; or (b) in the
case where there is an employment agreement, consulting agreement, change in
control agreement or similar agreement in effect between the Company or an
Affiliate and the Participant at the time of the grant of a Stock Unit that
defines “cause” (or words of like import), “cause” as defined under such
agreement; provided, however, that with regard to any agreement under which the
definition of “cause” only applies on occurrence of a change in control, such
definition of “cause” shall not apply until a change in control actually takes
place and then only with regard to a termination thereafter.

          1.2.       “Disability”
means, solely for purposes of the grant of Stock Units and notwithstanding the
definition of Disability in the Plan, the Participant is unable to engage in
any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can
be expected to last for a continuous period of not less than 12 months. 

          1.3.       “Retirement”
means, with
respect to Awards of Stock Units made on or after July 21, 2009, a Termination
of Employment on or after age 55 and at least 10 years of continuous of service
with the Company or its Affiliates in accordance with the Company’s standard
retirement policies. With respect to Awards of Stock Units made prior to July
21, 2009, “Retirement” shall mean a Termination of Employment on or after age
55 in accordance with the Company’s standard retirement policies. 

          1.4.       “Specified
Employee” or “Key Employee” shall mean such persons as shall be determined by
the Company.

          1.5.       “Stock Unit” means a restricted stock unit, which is a unit of measurement
equivalent to one share of Common Stock but with none of the attendant rights
of a holder of a share of Common Stock until a share of Common Stock is ultimately
distributed in payment of the obligation (other than the right to receive
dividend equivalent amounts in accordance with Section 4 hereof). Upon
distribution, all vested Stock Units shall be paid solely in the form of shares
of Common Stock. 

          1.6.       “Unforeseeable
Emergency” means a severe financial hardship to the Participant resulting from
a sudden and unexpected illness or accident of the Participant or of a
dependent (as described in Section 152(a) of the Code, without regard to
Section 152(b), (b)(2) and (d)(1)(B)) of a Participant, loss of the
Participant’s property due to casualty or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the Participant.

2.       Eligibility.
Any Eligible Employee or Consultant (or prospective employee of the Company or
any of its Affiliates or prospective Consultant) who is designated by the
Committee is eligible to receive Stock Units pursuant to these guidelines.
Notwithstanding the foregoing, no such person shall be eligible to defer the
payment of Stock Units unless such person is an Eligible Employee who is a
member of a select group of management and highly compensated employees within
the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA. To the extent
a Participant is no longer considered a member of a select group of management
and highly compensated employees within the meaning of Section 201(2),
301(a)(3) and 401(a)(1) of ERISA, the Committee may deem such Participant
ineligible to defer any additional Stock Units and all then unvested Stock
Units shall continue to vest in accordance with the applicable vesting schedule
and all vested Stock Units shall be payable in accordance with the
Participant’s then existing elections, subject to the terms of these
guidelines.

3.       Vesting
of Stock Units and Payment.

          3.1.
       Except as otherwise provided in Section
3.3 hereof, Stock Units shall vest in accordance with the vesting
schedule and conditions set forth in the relevant Award Agreement, provided
that the Participant is continuously employed by (or continuously provides
consulting services to) the Company or any of its Affiliates (including any
period during which the Participant is on leave of absence or any other break
in employment in accordance with the Company’s policies and procedures) on each
applicable vesting date and, provided further, that no portion of such Award
shall vest or be payable earlier than the date that is thirteen (13) months
after the date of its grant (“Initial Vesting Date”). An Award Agreement may condition the grant or vesting of Stock Units
upon the attainment of Performance Goals, including established Performance
Goals intended to meet the requirements of qualified-performance-based
compensation under Section 162(m) of the Code, or such other factors as the
Committee may determine, in its sole discretion. 

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          3.2.       Except
as otherwise provided in this Section 3 or in Section 4.2 hereof, the Company
shall distribute one share of Common Stock with respect to each vested Stock
Unit on the applicable vesting date. 

          3.3.       (a)
For awards granted on or after July 21, 2009, subject to the limitations set
forth in Section 3.4 below:

          (i)
upon a Termination of Employment by reason of a Participant’s Retirement, for a
period of three years from the date of Termination of Employment, unvested
Stock Units will continue to vest and shares of Common Stock with respect to
such Stock Units shall be distributed on the applicable vesting date in
accordance with the vesting schedule that would have been in effect pursuant to
Section 3.1 but for the Termination of Employment. The foregoing continuation
of vesting and payment provision shall not apply with respect to any award of
Stock Units made on or after July 21, 2009 to a Participant who is or may
become eligible for Retirement at any time prior to the Initial Vesting Date
and has also made a deferral election with respect to such Award and, as a
result, such Award shall be forfeited if the Participant’s Termination of
Employment occurs on or before the Initial Vesting Date; provided, however, that, the foregoing
continuation of vesting and payment provisions shall apply to such Award if the
Participant’s Termination of Employment under the circumstances described
herein occurs after the Initial Vesting Date. 

          (ii)
upon a
Termination of Employment or Termination of Consultancy (as applicable) by
reason of a Participant’s death or Disability, all outstanding unvested Stock
Units granted on or after July 21, 2009 shall immediately vest and a share of
Common Stock with respect to each Stock Unit shall be distributed within 90
days of such termination; provided, however,
that, if a Participant makes a deferral election with respect to an Award, the
foregoing accelerated vesting and payment provisions shall not apply to such
Award if the Participant’s Termination of Employment or Termination of
Consultancy (as applicable) under the circumstances described herein occurs on or
before the Initial Vesting Date; provided,
further, however, that, the foregoing accelerated vesting and
payment provisions shall apply to such Award if the Participant’s Termination
of Employment or Termination of Consultancy (as applicable) under the circumstances
described herein occurs after the Initial Vesting Date. 

          (b)        Subject to the limitations set forth in
Section 3.4 below, in the case of awards granted prior to July 21, 2009,
upon a Termination of
Employment or Termination of Consultancy (as applicable) by a Participant for
(i) Good Reason by written notice to the Company within thirty (30) days after
the occurrence of the condition giving rise to such claim of Good Reason, which
condition is not fully corrected by the Company within thirty (30) days of
receipt of such notice and which termination of employment occurs no later than
ninety (90) days after the occurrence of the condition giving rise to the claim
of Good Reason, (ii) by the Company without Cause or (iii) as a result of a
Participant’s death Disability or Retirement, all outstanding unvested Stock
Units shall immediately vest and a share of Common Stock with respect to each
Stock Unit shall be distributed within 90 days of such termination; provided, however, that, if a Participant
makes a deferral election with respect to an Award, the foregoing accelerated
vesting and payment provisions shall not apply to such Award if the
Participant’s Termination of Employment or Termination of Consultancy (as
applicable) under the circumstances described herein occurs on or before the
Initial Vesting Date; provided, further,
however, that, the foregoing accelerated vesting and payment
provisions shall apply to such Award if the Participant’s Termination of
Employment or Termination of Consultancy (as applicable) under the
circumstances described herein occurs after the Initial Vesting Date. 

          Solely
for purpose of this Section 3.3(b), “Good Reason” mean (a) in the case where
there is no employment agreement, consulting agreement, change in control
agreement or similar agreement in effect 

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between the
Company or an Affiliate and the Participant at the time of the grant of the
Stock Unit (or where there is such an agreement but it does not define “good
reason” (or words of like import)) any of the following as determined by the
Committee in its good faith discretion: (i) a material diminution of a
Participant’s then duties, responsibilities or authority; or (ii) a material
decrease in a Participant’s annual rate of base salary (other than an
across-the-board decrease); or (b) in the case where there is an employment
agreement, consulting agreement, change in control agreement or similar
agreement in effect between the Company or an Affiliate and the Participant at
the time of the grant of a Stock Unit that defines “good reason” (or words of
like import), “good reason” as defined under such agreement; provided, however,
that with regard to any agreement under which the definition of “good reason”
only applies on occurrence of a change in control, such definition of “good
reason” shall not apply until a change in control actually takes place and then
only with regard to a termination thereafter.

          (c)       Notwithstanding
anything in this Section 3.3 or in the Plan to the contrary, to the extent
required by Section 409A of the Code and Treasury regulations, upon a
Termination of Employment or Termination of Consultancy (other than as a result
of death) of a Specified Employee, distributions under the Plan determined, in
whole or in part, to constitute “nonqualified deferred compensation” within the
meaning of Section 409A of the Code shall be delayed until six months after
such Termination of Employment or Termination of Consultancy if such
termination constitutes a “separation from service” (within the meaning of
Section 409A(a)(2)(A)(i) of the Code and the Treasury regulations issued
thereunder) and such distributions shall be made at the beginning of the
seventh month following the date of the Specified Employee’s Termination of
Employment or Termination of Consultancy.

          3.4       Notwithstanding
anything in these guidelines to the contrary, an Award of Stock Units intended
to be qualified performance-based compensation under Code Section 162(m)(4)(C)
shall not be payable prior to attainment of the relevant Performance Goals.

          3.5       Notwithstanding
anything in these guidelines to the contrary, no distribution shall be made
upon a Participant’s Termination of Employment or a Termination of Consultancy
unless such termination constitutes a “separation from service” within the
meaning of Section 409A(a)(2)(A)(i) of the Code and the Treasury regulations
issued thereunder.

          3.6       Except
as provided in these Guidelines, Stock Units that are not vested as of the date
of a Participant’s Termination of Employment or Termination of Consultancy for
any reason shall terminate and be forfeited in their entirety on the date of
such termination.

4.       Deferral
of Payment Date.

          4.1(a)
(i) September 2004 Stock Unit Grants - Special Rules. With
respect to the payment of a portion of the Stock Units granted on September 20,
2004, a Participant may elect to defer, for a period of time (expressed in
whole years), of not less than five years, the scheduled payment date of
September 20, 2007 (the date on which the third tranche of such Award (relating
to 25% of the Award) is scheduled to vest and be paid) and the scheduled
payment date of September 20, 2008 (the date on which the fourth and last
tranche of the Award (relating to an additional 25% of the Award) is scheduled
to vest and be paid) provided that: (A) in order for a deferral election under
this Section 4.1(a)(i) to be effective, the Participant must make the election
prior to September 20, 2006; (B) a deferral election made by a Participant
pursuant to this Section 4.1(a)(i) shall defer the September 20, 2007 payment
date and the September 20, 2008 payment date by the same period of time elected
(e.g., if a Participant elects a
deferral period of five years, the Stock Units scheduled to be paid on
September 20, 2007 shall be paid on September 20, 2012 and the Stock Units
scheduled to be paid on September 20, 2008 shall be paid on September 20,
2013); and (C) a Participant may not elect a deferral period (expressed in
whole years) that is less than five years, measured from each of the September
20, 2007 and the September 20, 2008

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payment dates.
It is intended that any deferral election made under this Section 4.1(a)(i)
constitute a change in payment election covered by the transition relief
available under IRS Notice 2005-1, Q&A-19(c), as modified by the Proposed
Treasury regulations under Section 409A of the Code. If a Participant who was
granted Stock Units on September 20, 2004 does not make a deferral election by
September 20, 2006 or, if, for whatever reason, the Participant’s deferral
election is not effective, the applicable Stock Units shall be paid in
accordance with the terms of the Award, except as otherwise provided in Section
3 above. 

          (ii)       Initial Deferral Elections. A Participant
may, no later than 30 days after the date on which an Award of Stock Units has
been granted, elect to defer each date on which a portion of the Award is
scheduled to be paid, provided that: (A) in order to be effective, the
Participant must make the deferral election at least twelve (12) months prior
to the first date on which the Award or a portion of the Award is scheduled to
vest; (B) a deferral election made by the Participant pursuant to this Section
4.1(a)(ii) shall defer, by the same period of time, every scheduled payment
date applicable to the Award (e.g.,
assuming a Participant makes a deferral election of five years for an Award
that vests 25% annually for four years, the first payment of Stock Units shall
occur five years after the first originally scheduled payment date; the second
payment of Stock Units shall occur five years after the second originally
scheduled payment date, with each subsequent originally scheduled payment date
being deferred by the same time period); and (C) a Participant’s deferral
election will not become effective until (12) twelve months after the date on
which it is made. 

          (iii)      Subsequent Deferral Elections. A Participant
shall be permitted to extend the previously deferred payment dates applicable
to an Award of Stock Units, provided that: (A) in order to be effective, the
Participant must make the subsequent deferral election at least (12) twelve
months prior to the first scheduled deferred payment date; (B) a subsequent
deferral election made by the Participant pursuant to this Section 4.1(a)(iv)
shall defer every previously deferred payment date applicable to the Award by
the same period of time (expressed in whole years) of not less than five years
(i.e., each previously deferred
payment date shall be deferred by the additional deferral period elected by the
Participant, with the result that, after the subsequent deferral election has
been made, the payment dates will continue to be staggered in time); and (C) a
Participant’s subsequent deferral election will not become effective until (12)
twelve months after the date on which it is made.

          (b) Any deferral pursuant to this
section must be made in writing on an election form prescribed by, and
acceptable to, the Company and in accordance with the procedures established by
the Company. A deferral election is valid solely with respect to the Stock
Units identified on the election form and must comply with the requirements of
Section 4 to be given effect. A Participant’s election to defer Compensation
shall become irrevocable on the last day the deferral of such Compensation may
be elected under Section 4.1(a). A Participant may revoke or change his or her
election to defer Compensation at any time prior to the date the election
becomes irrevocable. Any such revocation or change shall be made in a form and
manner determined by Company.

          4.2.      If
a Participant makes an initial or subsequent deferral election with respect to
an Award of Stock Units, distribution of such units, to the extent vested,
shall be made to the Participant on the earlier of: (A) the applicable deferred
payment dates or (B) the Participant’s Termination of Employment or Termination
of Consultancy, as applicable, subject to the special rules in Section 3
applicable to distributions on or prior to the Initial Vesting Date and
distributions to Specified Employees. 

5.       Dividend
Equivalent Amounts. Cash dividends shall be credited to a Stock Unit
dividend book entry account on behalf of each Participant with respect to each
Stock Unit held by such Participant, provided that the right of each
Participant to actually receive such dividend shall be subject to the same
restrictions, including form and time of payment, as the Stock Unit to which
the dividend relates. Unless 

5

otherwise
determined by the Committee, cash dividends shall not be reinvested in Common
Stock and shall remain uninvested. 

6.       Unforeseeable
Emergency. Upon the written request of a Participant, the Committee, in its
sole discretion, may approve, due to the occurrence of an Unforeseeable
Emergency, an immediate distribution of vested Stock Units. Any such distribution shall not exceed the
amounts necessary to satisfy the Unforeseeable Emergency plus amounts necessary
to pay federal, state, and local taxes and any penalties reasonably anticipated
as a result of the distribution, after taking into account the extent to which
such Unforeseeable Emergency is or may be relieved through reimbursement or
compensation by insurance or otherwise or by liquidation of the Participant’s
assets (to the extent the liquidation of such assets would not itself cause
severe financial hardship). Determinations of the amount reasonably necessary
to satisfy the emergency need must take into account any additional
compensation available to the Participant upon cancellation of a deferral
payment due to an unforeseeable emergency available under other deferred
compensation arrangements with the Company. To the extent applicable, the
Company shall make a book entry to a Participant’s account to reduce such
Participant’s account to reflect a distribution pursuant to this section. 

7.       Forfeiture.
The Committee may, in its sole discretion, terminate any outstanding Stock
Units if the Committee determines that the Participant engaged in conduct that
constitutes Cause. 

8.       Amendment,
Suspension or Termination. To the extent applicable, the Board or the
Committee may at any time and from time to time amend, in whole or in part, any
or all of the provisions of these guidelines or any Award of Stock Units to
comply with Section 409A of the Code and the regulations thereunder or any
other applicable law and may also amend, suspend or terminate these guidelines
and any Award of Stock Units, subject to the terms of the Plan.

9        Section
16(b). To the extent required, these guidelines are intended to comply with
Rule 16b and the Committee shall interpret and administer these guidelines in a
manner consistent therewith. If an officer (as defined in Rule 16b) is
designated by the Committee to receive Stock Units, any such Award shall be
deemed approved by the Committee and shall be deemed an exempt purchase under
Rule 16b. Any provisions inconsistent with Rule 16b shall be inoperative and
shall not affect the validity of these guidelines. Notwithstanding anything
herein to the contrary, if the grant of any Award of Stock Units or the payment
of a share of Common Stock with respect to a Stock Unit or any election with
regard thereto results or would result in a violation of Section 16(b) of the
Exchange Act, any such grant, payment or election shall be deemed to be amended
to comply therewith, and to the extent such grant, payment or election cannot
be amended to comply therewith, such grant, payment or election shall be
immediately cancelled and the Participant shall not have any rights thereto.

10.     Withholding.
The Company shall have the right to deduct from any amounts otherwise payable
to a Participant, whether pursuant to the Plan or otherwise, to collect from
the Participant, any minimum required withholding taxes, including but not
limited to Social Security and Medicare taxes, due upon vesting and/or
distribution of an Award of Stock Units hereunder. 

11.     Governing
Law. Except to the extent preempted by the Code, these guidelines shall be
governed by the laws of Delaware.

12.     Plan
Document. These guidelines and an Award of Stock Units are subject to the
terms and conditions of the Plan (including, without limitation, Sections
4.1(a) and 4.2 and Articles VIII, IX, XI, XIII and XV). 

6Exhibit 10.4 

SCHOLASTIC CORPORATION 2001 STOCK INCENTIVE PLAN

Non-Qualified Stock Option Agreement

          Effective
as of ______________ (the “Grant Date”), SCHOLASTIC CORPORATION, a Delaware
corporation (the “Company”), hereby grants to ___________________ (the
“Optionee”) a non-qualified option (the “Option”) to purchase _______________
(______) shares of common stock, par value $.01, of the Company (the “Common
Stock”), at an exercise price of $_____ and on the terms set forth herein, and
in all respects subject to the terms and provisions of the Scholastic
Corporation 2001 Stock Incentive Plan (as amended to date, the “Plan”), which
terms and provisions are incorporated by reference herein. Unless the context
herein otherwise requires, the terms defined in the Plan shall have the same
meanings in this Agreement. 

          1.          Terms of Option Grant and Exercise. Subject
to the provisions of the Plan and this Agreement, the Option shall not be
exercised prior to the first anniversary date of this Agreement. The Option
shall vest, and become exercisable, at the rate of 25% per year beginning one
year from the date of grant, except that the minimum number of options that can
vest per year is 1,000 (or the total amount of the grant, if less than 1,000).1
Once exercisable, subject to the provisions of the Plan and this Agreement, the
Option may be exercised, in whole or in part, pursuant to the notice and
payment procedures then in effect as established by the Company, in its sole
discretion. Any written notice of exercise by Optionee shall be irrevocable.
The Option may not be exercised if the issuance of the Common Stock would
constitute a violation of any applicable federal, state or foreign securities
laws or regulations. The Option may not be exercised with respect to a
fractional share of Common Stock. 

The Option
shall cease to be exercisable ten years after the date of grant (the
“Expiration Date”), unless earlier terminated or extended, as the case may be,
pursuant to the provisions of the Plan and this Agreement, including, but not
limited to, the provisions of Section 3 hereof.

          2.          Termination of Employment of an Optionee. 

               (a)          Death or Disability. In the event of the
Optionee’s death or Disability while the Option is outstanding, the unexercised
portion of the Option shall become immediately vested on the date of death or
Disability and may be exercised in full by the Optionee, or his or her estate,
personal representative or other legally appointed representative, at any time
until the first anniversary of the date of such death or Disability, but in no
event beyond the Expiration Date of the Option, if earlier. 

               (b)          Retirement. In the event of the Optionee’s
Retirement, the Option shall continue to vest and may be exercised by the
Optionee within three (3) years after the date of such retirement, but in no
event beyond the Expiration Date of the Option, if earlier. 

               (c)          Involuntary Termination Without Cause. In the event an Optionee’s Termination
of Employment is involuntary by the Company (or an Affiliate) other than a
Termination of Employment for Cause, the Option, to the extent vested on the
date of such Termination of Employment, may be exercised by the Optionee within
ninety (90) days after the date of such Termination of Employment, but in no
event beyond the Expiration Date of the Option, if earlier. 

               (d)          Termination for Cause or for Any Reason Other than
Death, Disability, Retirement or Involuntary Termination Without Cause. In
the event the Optionee’s Termination of Employment is for Cause, the Option
shall terminate and expire as of the date of such Termination of Employment. In
the event that an Optionee’s Termination of Employment is for any reason other
than Cause or other than as the result of death, Disability, Retirement or
involuntary Termination of Employment Without Cause (as set forth in Sections
2(a), (b) and (c) hereof), the Option, to the extent vested on such Termination
of Employment may be exercised by the Optionee within ninety (90) days after
the date of such Termination of Employment, but in no event beyond the
Expiration Date of the Option, if earlier. 

          3.          Tax Matters and Withholding Tax Liability.
The Option shall be a Non-Qualified Stock Option as that term is defined in the
Plan. No part of the Option granted hereby is intended to qualify as an
“incentive stock option” under Section 422 of the internal Revenue Code of
1986, as amended (the “Code”). In connection with the exercise of the Option,
the Company and the Optionee may incur liability for income or withholding tax.
The

	
  

 	
  

 
	
 

 
	
  

 
	
 1

 	
 Please
 consult the Company or your online stock option plan database for a detailed
 schedule of your vesting dates and amounts. 

 

Company will
have the right to withhold from any exercise of the Option, transfer of Common
Stock or payment made to the Optionee or to any person hereunder, whether such
payment is to be made in cash or in Common Stock, all applicable federal,
state, city or other taxes as shall be required, in the determination of the
Company, pursuant to any statute or governmental regulation or ruling.

          4.          Nontransferability of Stock Option. The
Option may not be sold, pledged, assigned, hypothecated, gifted, transferred or
disposed of in any manner either voluntarily or involuntarily by operation of
law, whether for value or no value and whether voluntary or involuntary
(including by operation of law) other than by will or by the laws of descent
and distribution and may be exercised during the lifetime of the Optionee only
by the Optionee. Subject to the foregoing and the terms of the Plan, the terms
of this Agreement shall be binding upon the executors, administrators, heirs,
successors and assigns of the Optionee.

          5.          No Enlargement of Rights. This Agreement is
not an agreement of employment. Neither the Plan nor this Agreement shall
confer upon the Optionee any right to continue as an officer, employee or
consultant of the Company or any Affiliate. Nothing contained in the Plan or
this Agreement shall interfere in any way with the rights of the Company or any
Affiliate to terminate the employment (or consulting arrangement) of the
Optionee at any time or to modify the Optionee’s employment or compensation.
The Optionee shall have only such rights and interests with respect to the
Option as are expressly provided in this Agreement and the Plan.

          6.          No Shareholder Rights before Exercise and Issuance. No
rights as a stockholder shall exist with respect to the Common Stock subject to
the Option as a result of the grant of the Option, and no adjustments shall be
made for dividends in cash or other property, distributions or other rights in
respect of any such shares, except as otherwise specifically provided for in
the Plan. Such rights shall exist only after issuance of stock following the
exercise of the Option as provided in the Plan. 

          7.          Effect of the Plan on Option. The Option is
subject to, and the Company and the Optionee agree to be bound by, all of the
terms and conditions of the Plan, as such may be amended from time to time in
accordance with the terms thereof. Without the consent of the Optionee, the
Company may amend or modify this Agreement in any manner not inconsistent with
the Plan, including without limitation, to change the date or dates as of which
a Option becomes exercisable, or to cure any ambiguity, defect or
inconsistency, provided such amendment, modification or change does not
adversely affect the rights of the Optionee.

          8.          Entire Agreement. The terms of this
Agreement and the Plan constitute the entire agreement between the Company and
the Optionee with respect to the subject matter hereof and supersede any and
all previous agreements between the Company and the Optionee. This Agreement
may be signed in counterparts. 

          9.          Severability. If any provision of this
Agreement, or the application of such provision to any person or circumstances,
is held valid or unenforceable, the remainder of this Agreement, or the
application of such provision to persons or circumstances other than those as
to which it is held valid or unenforceable, shall not be affected thereby. 

          10.        Notices. Any notice or communication given
hereunder shall be in writing and shall be deemed to have been duly given when
delivered in person, or by United States mail, to the appropriate party at the
address set forth below (or such other address as the party shall from time to
time specify): If to the Company, to: Scholastic Corporation, 555 Broadway, New
York, New York 10012, Attention: Corporate Secretary. If to the Optionee, to
the address indicated after the Optionee’s signature at the end of this
Agreement.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]