Document:

Indemnity Agreement

 Exhibit 10.2 
  
 BACK-UP INDEMNIFICATION AGREEMENT 
  
 BACK-UP INDEMNIFICATION AGREEMENT, dated as of August 19, 2005 (this “Agreement”), among Wicks Communications
& Media Partners, L.P., a Delaware limited partnership (the “Fund”), Wicks Parallel (Limited) Partnership I, L.P. (the “Parallel Fund”), Gary Facente 2005 Irrevocable Trust (the “Trust”), David Cruise, Steven Korte
(each such party being herein referred to individually as a “Party” and collectively as the “Parties”), and School Specialty, Inc., a Wisconsin corporation (“Buyer”). Capitalized terms used but not otherwise defined
herein shall have the meanings assigned to such terms in the Acquisition Agreement (as defined below). 
  
 WHEREAS, each of the Parties is a member of Wicks Learning Group, LLC, a Delaware limited liability company (“Seller”); 
  
 WHEREAS, Buyer and Seller are entering into an Acquisition Agreement, dated
as of even date herewith (the “Acquisition Agreement”), pursuant to which (i) Buyer is to purchase all of the Membership Interests of Delta Education, LLC, a Delaware limited liability company, and (ii) Seller is entering into certain
indemnification obligations in favor of Buyer, as set forth in Article 7 thereof; and 
  
 WHEREAS, the Parties will be distributed proceeds from the sale contemplated by the Acquisition Agreement. 
  
 NOW, THEREFORE, the parties hereto agree as follows: 
  
 1. Each of the Parties agrees, subject to the terms, conditions and limitations set forth in this Agreement, that, if and only if the Closing under the
Acquisition Agreement occurs pursuant to the terms thereof, such Party shall severally and not jointly indemnify the Buyer for its respective Percentage Share (as herein defined) of such indemnification liabilities as Seller would have had under
Section 7.1(b) of the Acquisition Agreement, after giving effect to all the provisions of and limitations set forth in Article 7 of the Acquisition Agreement, but only to the extent that all such liabilities would have exceeded the Cap then in
effect pursuant to Section 7.3 of the Acquisition Agreement (for example, prior to the expiration of the First Period (as defined in the Escrow Agreement), as if the original Cap set forth in Section 7.3(b) of the Acquisition Agreement had been
$25,000,000 in lieu of $15,000,000), it being further agreed and understood that the maximum aggregate of all liabilities whatsoever under or arising out of this Agreement for all of the Parties taken together shall not under any circumstances
exceed $10,000,000, and the maximum aggregate of all liabilities whatsoever of any Party under or arising out of this Agreement shall not exceed the product of $10,000,000 multiplied by such Party’s respective Percentage Share. Each
Party’s respective Percentage Share is the percentage set forth opposite such Persons name on Schedule A hereto. 
  
 2. In the event any claim is made against any one or more Parties under this Agreement, such Party or Parties shall have all the rights and benefits of
the provisions of Article 7 of the Acquisition Agreement inuring to the benefit of any Indemnifying Party under Article 7 of the Acquisition Agreement (including but not limited to any rights as to notice of any claim(s) and/or defense or settlement
with respect thereto under Section 7.2 thereof) as if such Party or 

 Parties is or are the Indemnifying Party under said Section 7.2; provided that, if such claim is made against the Fund
and any one or more other Indemnifying Parties, then, at its option, the Fund shall be entitled to exercise exclusively and at its sole discretion all such rights contemplated by Article 7 of the Acquisition Agreement or this Section 2. Without
limiting the generality of the foregoing, as among the Parties, all determinations by the Fund as to whether and/or how to defend or settle (i) any claim covered by Article 7 of the Acquisition Agreement and/or the terms of any such settlement
and/or (ii) any claim against any of the Parties under this Agreement, and all such determinations shall be final and binding upon each of the Parties, and each of the Parties shall cooperate in all respects with the Fund in order to facilitate
and/or make effective any such defense, settlement and/or determination. The preceding sentence is solely for the benefit of the Fund and not Buyer, and does not and shall not give rise to any right or benefit to or in favor of Buyer. 
  
 3. Anything to the contrary contained in this Agreement notwithstanding:

  
 (a) In no event shall any Party have any liability or
obligation under this Agreement in respect of any claim under this Agreement or the Acquisition Agreement, (i) to the extent Seller would not have had any liability under Article 7 of the Acquisition Agreement in respect of such claim (but reading
the Acquisition Agreement as if the Cap then in effect pursuant to Section 7.3(b) thereof were increased by the then maximum liability of the Parties pursuant to Section 1 hereof (as modified by Section 3(c) hereof)), (ii) if the aggregate of all
indemnifiable liabilities of Seller under Article 7 of the Acquisition Agreement in respect of claims which have been made by Buyer does not exceed the then current Cap set forth therein, or (iii) if the survival period for the provision of the
Acquisition Agreement as to which such liability is based shall have expired. 
  
 (b) All liabilities and obligations under this Agreement in respect of or arising out of any representation, warranty, covenant or agreement set forth in the Acquisition Agreement, or any indemnification liabilities
or obligations in respect thereof, shall expire on and as of the date that is the 18th month anniversary of the
Closing Date; provided that any such liability in respect of those provisions set forth in clauses (ii) and (iii) of Section 7.3(b) of the Acquisition Agreement, shall expire on and as of the date that is the 36th month anniversary of the Closing Date, upon which latter date all obligations and liabilities whatsoever under or in respect of this Agreement shall
terminate. 
  
 (c) On and as of the date that is the
18th month anniversary of the Closing Date, the aggregate liability under this Agreement shall be reduced to
$7,500,000, the aggregate liability of any one Person under this Agreement shall be $7,500,000 multiplied by such Person’s respective Percentage Share, and all references in this Agreement to $10,000,000 and $25,000,000 shall be reduced to
$7,500,000, and $22,500,000, respectively. 
  
 (d) The liabilities
and obligations of the Parties under this Agreement shall be several and not joint, and only in accordance with the Parties” respective Percentage Shares, as aforesaid. 
  
 (e) All liabilities and obligations of the Fund, the Parallel Fund and/or the Trust shall be without recourse to, and no
personal liability or obligations related thereto shall arise against or be imposed upon, any partner or trustee of any of them or any parent or controlling person or entity thereof. 
  

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 4. After the date hereof, on a quarterly basis, each of the Fund and Parallel Fund will respectively
provide a statement, certified on its behalf by an authorized representative thereof, to the effect that it has sufficient assets or capital commitments (or a combination thereof) to support its respective Percentage Share indemnity liability
hereunder. 
  
 5. All notices and claims under this Agreement made
to or against any of the Parties or Buyer shall be made and deemed given in the manner set forth in Section 8.6 of the Acquisition Agreement for notices thereunder, to the respective address therefore set forth on Schedule B hereto (and in
the case of each Party, a copy thereof shall be sent to Golenbock Eiseman Assor Bell & Peskoe LLP, 437 Madison Avenue, New York, New York 10022, Attention Nathan E. Assor, Esq.), or such other address(es) and person(s) as any Party or Buyer, as
the case may be, shall designate by notice to the other parties hereto in accordance with the notice provisions hereof. 
  
 6. This Agreement shall be construed and enforced in accordance with the internal laws of the State of New York, without regard to principles of conflict
of laws. Any litigation arising hereunder or related thereto shall be tried by the United States District Court for the Southern District of New York, provided that if such litigation shall not be permitted to be tried by such court then such
litigation shall be held in the state courts of New York sitting in New York City. Each party irrevocably consents to and confers personal jurisdiction on the United States District Court for the Southern District of New York, or, if (but only if)
the litigation in question shall not be permitted to be tried by such court, on the state courts of New York sitting in New York City, and expressly waives any objection to the venue of such court, as the case may be. 
  
 7. This Agreement sets forth the entire understanding of the parties hereto
in respect of the subject matter hereof and may not be modified or amended except by a written agreement specifically referring to this Agreement signed by all of the parties hereto. This Agreement supersedes all prior agreements and understandings
among the parties hereto with respect to such subject matter. 
  
 8. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement. 
  
 9. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original but all of which shall constitute one and the same agreement. 
  
 [SIGNATURES ARE ON THE FOLLOWING PAGE] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed the date and year
first above written. 
  

							
	Wicks Communications & Media Partners, L.P.
	
	By: Wicks Capital Management, L.P., its General Partner
		
	 	 	By: Wicks Apex, Inc., its General Partner
				
	 	 	 	 	By:	 	 /s/ Craig Klosk

	 	 	 	 	Name:	 	Craig Klosk
	 	 	 	 	Title:	 	Co-President
	
	Wicks Parallel (Limited) Partnership I, L.P.
	
	By: Wicks Capital Management, L.P., its General Partner
		
	 	 	By: Wicks Apex, Inc., its General Partner
				
	 	 	 	 	By:	 	 /s/ Craig Klosk

	 	 	 	 	Name:	 	Craig Klosk
	 	 	 	 	Title:	 	Co-President
	
	Gary Facente 2005 Irrevocable Trust
		
	By:	 	 /s/ Joseph F. McDonald, III

	 	 	Joseph F. McDonald, III, Trustee
	
	 /s/ David Cruise

	David Cruise
	
	 /s/ Steven Korte

	Steven Korte

  

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	SCHOOL SPECIALTY, INC.
		
	By:	 	 /s/ Mary M. Kabacinski

	Name:	 	Mary M. Kabacinski
	Title:	 	CFO

  

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 SCHEDULE A 
  
 Percentage Share 
  

						
	 Wicks Communications & Media Partners, L.P.:
	  	81.31	%	 	 
			
	 Wicks Parallel (Limited) Partnership I, L.P.:
	  	2.11	%	 	 
			
	 Gary Facente 2005 Irrevocable Trust:
	  	10.39	%	 	 
			
	 David Cruise:
	  	4.19	%	 	 
			
	 Steven Korte:
	  	2.00	%	 	 

  

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 SCHEDULE B 
  
 Addresses 
  

			
	 Wicks Communications &
 Media Partners,
L.P.:
	    	c/o The Wicks Group of Companies, L.L.C.
	 	    	405 Park Avenue
	 	    	New York, NY 10022
		
	 Wicks Parallel (Limited)
 Partnership I,
L.P.:
	    	c/o The Wicks Group of Companies, L.L.C.
	 	    	405 Park Avenue
	 	    	New York, NY 10022
		
	 Gary Facente 2005
 Irrevocable Trust:
	    	c/o McDonald & Kanyuk, PLLC
	 	    	7 Hills Avenue
	 	    	Concord, NH 03301
	 	    	Attn: Joseph F. McDonald III, Trustee
		
	David Cruise:	    	113 Tahanto Trail
	 	    	Harvard, MA 01451
		
	Steven Korte:	    	4 Durango Court
	 	    	Hawthorn Woods, IL 60047
		
	School Specialty, Inc.:	    	P.O. Box 1579
	 	    	Appleton, WI 54912-1579
	 	    	Attn: David J. Zanden, Chief Executive Officer
		
	 	    	with a copy to:
		
	 	    	Franzoi & Franzoi, S.C.
	 	    	514 Racine Street
	 	    	Menasha, WI 54952
	 	    	Attn: Joseph Franzoi IV, Esq.Consent and Amendment No. 1 to Agreement and Plan of Merger

 Exhibit 10.3 
  
 CONSENT AND AMENDMENT NO. 1 
 TO 
 AGREEMENT AND PLAN OF MERGER 
  
 CONSENT AND AMENDMENT NO. 1 TO AGREEMENT AND PLAN OF MERGER (this “Consent and Amendment”) dated as of August 19, 2005, by and among LBW
Holdings, Inc., a Delaware corporation (“Buyer”), LBW Acquisition, Inc., a Delaware corporation and a wholly owned subsidiary of Buyer (“Merger Sub”), and School Specialty, Inc., a Wisconsin corporation (the “Company”).

  
 WHEREAS, Buyer, Merger Sub and the Company are parties to that
certain Agreement and Plan of Merger, dated as of May 31, 2005, and as the same is amended hereby and may be further amended, modified or supplemented from time to time (the “Merger Agreement”). Capitalized terms not otherwise defined
herein shall have the meaning set forth in the Merger Agreement; 
  
 WHEREAS, the Company desires to enter into an Acquisition Agreement with Wicks Learning Group, LLC, substantially in the form provided to Buyer and Merger Sub (the “Acquisition Agreement”) which provides, among other things, for
the acquisition by the Company of all of the outstanding membership interests of Delta Education, LLC, a Delaware limited liability company (“Delta”), subject to the terms and conditions set forth in the Acquisition Agreement; 

 
 WHEREAS, in connection with transactions contemplated by the Acquisition
Agreement, the Company and certain of its subsidiaries and affiliates desire to enter into a Fourth Amendment to Credit Agreement with Bank of America, N.A. and the lenders named therein, and a Term Loan Credit Agreement with Bank of America, N.A.
(together, the “Financing Agreements”) which provide, among other things, for certain additional loans to be made to the Company in an aggregate amount not to exceed $100 million, the proceeds of which will be used to finance the
transactions contemplated by the Acquisition Agreement (the Acquisition Agreement, the Financing Agreements and the other agreements, certificates and documents to be executed in connection therewith, the “Delta Transaction Documents” and
the transactions contemplated by the Delta Transaction Documents, the “Delta Transactions”); 
  
 WHEREAS, pursuant to Section 5.01 of the Merger Agreement, Buyer and Merger Sub desire to consent to the execution of the Delta Transaction Documents
and the consummation of the Delta Transactions; and 
  
 WHEREAS,
pursuant to Section 10.06 of the Merger Agreement, the parties desire to amend the Merger Agreement as provided in this Consent and Amendment. 
  
 NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby,
Buyer, Merger Sub and the Company hereby agree as follows: 

 Section 1. Consent. Pursuant to Section 5.01 of the Merger Agreement, Buyer and Merger Sub hereby
consent to and approve the execution of the Delta Transaction Documents by the Company and the consummation by the Company of the Delta Transactions in accordance with the terms of the Delta Transaction Documents, without waiver, amendment or
modification of the provisions thereof. 
  
 Section 2. Amendment to the
Merger Agreement. (a) The parties hereby agree that none of the representations and warranties set forth in Article III of the Merger Agreement shall be rendered untrue or incorrect in any respect (including, without limitation, for
purposes of Section 7.01 of the Merger Agreement) as a result of the execution by the Company of the Delta Transaction Documents, the consummation of the Delta Transactions or any fact or circumstance solely to the extent attributable to the
business, operations, condition (financial or otherwise), assets (tangible or intangible), liabilities and results of operations of Delta (the “Delta Business”). Without limiting the generality of the foregoing, for purposes of
Section 7.01 of the Merger Agreement, each such representation and warranty shall be deemed to be true and correct if such representation or warranty would have been true or correct but for the execution by the Company of the Delta Transaction
Documents and the consummation of the Delta Transactions. 
  
 (b)
The parties hereby agree that the definition of “Company Material Adverse Effect” set forth in the Merger Agreement is hereby amended to specifically exclude any event, circumstance, change or effect solely to the extent resulting from or
solely to the extent such event, circumstance, change or effect relates to, the Delta Transaction Documents, the Delta Transactions or the Delta Business. 
  
 Section 4. Adjournment of the Company Shareholders’ Meeting. The parties hereby acknowledge and agree that as a result of the execution of the Delta
Transaction Documents and in order to permit the Company to circulate a supplement to the Proxy Statement for consideration by the Company’s shareholders, the Company intends to convene the Company Shareholders’ Meeting on August 23,
2005 as originally scheduled and, following a determination that a quorum exists, adjourn the Company Shareholders’ Meeting until September 12, 2005. The parties hereby agree that such adjournment for the purposes and the time period set
forth in the preceding sentence shall not constitute a violation of Section 5.04(b) of the Merger Agreement; provided, however, that the foregoing shall not constitute a waiver of any prior or subsequent breaches or violations of
Section 5.04(b) of the Merger Agreement. 
  
 Section 5. Representations and Warranties. 
  

	(a)	The Company represents and warrants to Buyer and Merger Sub as follows: 

  

	 	(i)	The Company is a corporation duly incorporated, validly existing and in “active status” under the Laws of the State of Wisconsin. 

  

	 	(ii)	 The Company has the corporate power and authority to enter into, execute and deliver this Consent and Amendment. The execution and delivery of this Consent and
Amendment have been duly authorized by the Company Board. This Consent and Amendment has been duly executed and delivered by the 

  

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Company and constitutes, assuming due authorization, execution and delivery of this Consent and Amendment by Buyer and Merger Sub, a valid and binding
obligation of the Company, enforceable in accordance with its terms, except to the extent that enforcement of the rights and remedies created hereby is subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws of general
application affecting the rights and remedies of creditors and to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law). 

  

	(b)	Buyer and Merger Sub jointly represent and warrant to the Company as follows: 

  

	 	(i)	Each of Buyer and Merger Sub is a corporation duly incorporated, validly existing and in good standing under the Laws of the State of Delaware. 

  

	 	(ii)	Each of Buyer and Merger Sub has the corporate power and authority to enter into, execute and deliver this Consent and Amendment. The execution and delivery of this Consent and
Amendment have been duly authorized by all necessary corporate action on the part of Buyer and Merger Sub. This Consent and Amendment has been duly executed and delivered by each of Buyer and Merger Sub and constitutes, assuming due authorization,
execution and delivery of this Consent and Amendment by the Company, a valid and binding obligation of each of Buyer and Merger Sub, enforceable in accordance with its terms, except to the extent that enforcement of the rights and remedies created
hereby is subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws of general application affecting the rights and remedies of creditors and to general principles of equity (regardless of whether enforceability is
considered in a proceeding in equity or at law). 

  
 Section 6.
No Other Change. Except as otherwise provided herein, all of the terms, covenants and other provisions of the Merger Agreement shall continue to be in full force and effect in accordance with their respective terms, except that the letter
agreement, dated June 22, 2005, and the consents thereunder granted to the Company by Buyer shall remain in full force and effect in accordance with their respective terms. After the date hereof, all references to the Merger Agreement shall
refer to the Merger Agreement as amended by this Amendment. 
  
 Section 7.
No Waiver or Consent. Except as specifically set forth herein, the execution and delivery hereof by the parties hereto shall not constitute a consent or waiver of any provisions of the Merger Agreement. No waiver by any party of any breach or
violation or, default under or inaccuracy in any representation, warranty or covenant hereunder or under the Merger Agreement, whether intentional or not, will be deemed to extend to any prior or subsequent breach, violation, default of, or
inaccuracy in, any such representation, warranty or covenant hereunder or thereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence. No delay or omission on the part of any party in exercising any right,
power or remedy under this Consent and Amendment or the Merger Agreement will operate as a waiver thereof. 
  

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 Section 8. Counterparts. This Consent and Amendment may be executed in two or more counterparts, each of
which shall be an original, and all of which together shall constitute one and the same instrument. This Consent and Amendment shall become effective when each party hereto shall have received counterparts hereof signed by all of the other parties
hereto. 
  
 Section 9. Governing Law. This Consent and Amendment and
any related disputes shall be governed by and construed in accordance with the laws of the State of New York without regard to its conflict of law provisions. 
  

[The rest of this page has intentionally been left blank] 
  

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 IN WITNESS WHEREOF, the parties have caused this Consent and Amendment No. 1 to Agreement and Plan of Merger to be
duly executed by their respective authorized officers as of the day and year first above written. 
  

	
	 SCHOOL SPECIALTY, INC.
  
 /s/ Leo C. McKenna

	 Name: Leo C. McKenna
 Title: Chairman of the
Board

  

	
	 LBW HOLDINGS, INC.
  
 /s/ Craig H. Boyce

	 Name: Craig H. Boyce
 Title: Vice
President

  

	
	 LBW ACQUISITION, INC.
  

/s/ Craig H. Boyce

	 Name: Craig H. Boyce
 Title: Vice
President

  

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