Document:

Mark Thimmig Separation Agreement

 Exhibit 10.1 
 SEPARATION AGREEMENT 
 This Separation Agreement (the “Agreement”) is made
effective as of November 21, 2006 (the “Effective Date”), by and between Mark Thimmig (“Employee”) and Varsity Group Inc., a Delaware corporation (the “Company”), with reference to the
following facts: 
 A. Employee and the Company are parties to that certain letter agreement, dated as of February 13, 2006 (the
“Employment Agreement”). 
 B. Employee’s status as an employee of the Company ended due to a voluntary resignation
from such office effective on November 16, 2006. 
 C. Employee and the Company desire to assure a smooth and effective transition of
Employee’s duties to his successor and to wind-up their employment relationship amicably. 
 NOW, THEREFORE, in consideration of the
mutual covenants and agreements hereinafter set forth, the parties agree as follows: 
 1. Resignation from Board. Employee
acknowledges and agrees that he shall and hereby does resign as a member of the board of directors of the Company and any of its subsidiaries, including any committees of which Employee is a member, effective as of the Effective Date. 
 2. Termination Date. Employee acknowledges that his status as an employee and/or officer of the Company and any subsidiary or other affiliate of
the Company ended due to his voluntary resignation from such office on November 16, 2006 (the “Termination Date”). 
 3. Separation Payments and Benefits. Without admission of any liability, fact or claim, the Company hereby agrees, subject to the execution hereof by both parties and Employee’s continuing performance of his continuing
obligations pursuant to this Agreement, to provide Employee the severance benefits as follows: 
 (a) Base Salary and
Severance Benefit. The Company shall continue to pay to Employee his base salary at the rate of $260,000 per annum (“Base Salary”) through the Termination Date in accordance with the Company’s normal payroll practices.
The Company shall also pay to Employee his accrued and unpaid vacation time as of the Termination Date. In addition, the Company shall pay to Employee, as a severance benefit, (i) the balance of the Base Salary otherwise payable for the payroll
period during which the Termination Date occurred, payable consistent with the Company’s standard payroll practices, plus (ii) a cash lump sum in the amount of $50,000 on, or as soon as administratively practicable following,
October 1, 2007. 
 (b) Business Expenses. The Company shall reimburse Employee for all outstanding expenses
incurred prior to the Termination Date and in the course of performing Employee’s duties as an employee of the Company which are appropriate and consistent with the Company’s policies in effect from time to time with respect to travel,
entertainment and other proper business expenses, subject to the Company’s requirements with respect to reporting and documenting such expenses. Employee submitted all such business expenses to the Company for reimbursement on or prior to the
Effective Date. 
  

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 (c) Stock Options. The Company and Employee acknowledge that they are parties to
that certain Incentive Stock Option Agreement dated February 17, 2006 pursuant to which Employee was granted the right to purchase an aggregate of 100,000 shares of the Company’s common stock as summarized on Exhibit A to this
Agreement (the “Stock Option Agreement”). The Company and Employee acknowledge that the Stock Option Agreement remains in full force and effect in accordance with its terms and the related plan documents and agree that (i) any
such options which were granted under the Stock Option Agreement and were not vested on or before the Termination Date shall terminate on the Termination Date and (ii) the vested options to acquire 11,666 shares of the Company’s common
stock shall expire on February 16, 2007 and Employee agrees to exercise such options, if at all, on or before February 16, 2007, whereupon any unexercised options shall immediately terminate and be of no further force and effect.

 (d) Restricted Stock. The Company and Employee acknowledge that they are parties to that certain Restricted Stock
Agreement dated February 17, 2006 (the “Restricted Stock Agreement”) pursuant to which the Company granted Employee 300,000 shares of the Company’s common stock subject to certain restrictions and a right of repurchase in
favor of the Company (the “Restricted Stock”). The Company and Employee acknowledge that as of the Termination Date 56,250 shares of Restricted Stock have vested and are no longer subject to restrictions or a right of repurchase in
favor of the Company (including the 6,250 shares otherwise scheduled to vest on November 17, 2006). The Company agrees that on the eighth (8th) day following the date Employee signs this Agreement (the “Eighth Day”), the number of shares of Restricted Stock calculated by dividing $150,000 by the average closing price of
the Company’s common stock for the three (3) trading days prior to the Eighth Day shall vest and any restriction or right of repurchase with respect to such shares shall immediately lapse, thereby resulting in Employee having unrestricted
ownership of such shares, subject to Employee paying to the Company any federal, state and local withholding and other employment taxes applicable to Employee upon such event. Such payment shall be in cash or through the delivery of a notice to the
Company that Employee has placed a market sell order with a broker with respect to shares of the Company’s common stock, including shares that vest pursuant to the preceding sentence, and that the broker has been directed to pay a sufficient
portion of the net proceeds of the sale to the Company in satisfaction of such withholding and employment taxes with the Company as an intended third party beneficiary of such direction. Employee agrees that the Company shall be entitled to deduct
such withholding and employment taxes from any other amounts payable under this Agreement if the broker fails to pay such proceeds in such an amount to the Company prior to the market close of the trading day immediately following the Eighth Day.
After giving effect to the foregoing, the Company’s repurchase right with respect to any Restricted Stock which remains subject to right of repurchase in favor of the Company shall be deemed exercised immediately following the Eighth Day and
the repurchase price therefor shall be deemed paid through the consideration provided by the Company in this Agreement, the sufficiency of which is hereby acknowledged by Employee and the Company. Shares deemed repurchased shall thereupon be
cancelled and shall be considered redeemed, retired and returned to the status of unissued shares reserved under the applicable Company equity incentive plan. 
 (e) SEC Reporting. Employee further acknowledges that to the extent required by the Securities Exchange Act of 1934, as amended, he
will have continuing obligations under Section 16(a) and 16(b) of such act to report his transactions in Company common stock for six months subject to the termination of his status as an officer of the Company (it being agreed Employee shall
be solely responsible for such forms). Employee 
  

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 shall be released from the Company’s insider trading policy effective on the Termination Date in
reliance on the representation by Employee that he does not presently possess material non-public information regarding the Company, it being acknowledged by the parties that the federal securities laws prohibit the purchase or sale of securities
while in the possession of material non-public information. 
 (f) Bonus and Other Compensation Arrangements. For the
avoidance of doubt, the Company and Employee acknowledge and agree that Employee will not be eligible to receive any bonus compensation or any other award under Company bonus, stock or other compensation plan except as set forth herein. 

(g) Taxes. Employee understands and agrees that all payments under this Agreement will be subject to appropriate tax withholding
and other deductions, as and to the extent required by law. To the extent any taxes may be payable by the Employee for the benefits provided to him by this Agreement beyond those withheld by the Company, the Employee agrees to pay them himself and
to indemnify and hold the Company and the other entities released herein harmless for any tax claims or penalties, and associated attorneys’ fees and costs, resulting from any failure by him to make required payments 
 (h) Sole Separation Benefit. Employee agrees that the payments provided by this Agreement are not required under the Company’s
normal policies and procedures and are provided as a severance solely in connection with this Agreement and the Employment Agreement. Employee further acknowledges and agrees that the payments referenced in this Agreement constitute adequate and
valuable consideration, in and of themselves, for the promises contained in this Agreement. 
 4. Full Payment; Termination of Employment
Agreement; Survival. Employee acknowledges that the payment and arrangements herein shall constitute full and complete satisfaction of any and all amounts properly due and owing to Employee as a result of his employment with the Company and any
subsidiary or affiliate thereof, and the termination thereof, and upon satisfaction of the Company’s obligations hereunder the Employment Agreement shall be terminated without any further obligation of the Company. As of the date of this
Agreement, the Chief Financial Officer of the Company is unaware of any amounts owed by Employee to the Company. Employee represents that he did not approve any retention agreement with MCK Consulting which is not terminable by the Company at will
without the payment of a penalty. 
 5. General Release. As a material inducement for the Company to enter into this Agreement, and in
exchange for the performance of the Company’s obligations under this Agreement provided for herein, Employee knowingly and voluntarily waives and releases all rights and claims, known and unknown, which Employee may have against the Company
and/or any of the Company’s related or affiliated entities or successors, or any of their current or former officers, directors, managers, employees, agents, insurance carriers, auditors, accountants, attorneys or representatives, including any
and all charges, complaints, claims, liabilities, obligations, promises, agreements, contracts, controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, debts and expenses of any kind. This includes, but is not
limited to, claims for employment discrimination, harassment, wrongful termination, constructive termination, violation of public policy, breach of any express or implied contract, breach of any implied covenant, fraud, intentional or negligent
misrepresentation, emotional distress, defamation, or any other claims relating to Employee’s relationship with the Company. This also includes a release of any claims under any federal, state or local laws or regulations, including, but not
limited to: (1) Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000(e) et seq. (race, color, religion, sex, and national origin discrimination); (2) the Age 
  

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 Discrimination in Employment Act, 29 U.S.C. § 621 et seq. (age discrimination);
(3) Section 1981 of the Civil Rights Act of 1866, 42 U.S.C. 1981 (race discrimination); (4) the Equal Pay Act of 1963, 29 U.S.C. § 206 (equal pay); (5) the Fair Labor Standards Act, 29 U.S.C. § 201, et
seq. (wage and hour matters, including overtime pay); (6) COBRA; (7) Executive Order 11141 (age discrimination); (8) Section 503 of the Rehabilitation Act of 1973, 29 U.S.C. § 701, et seq. (disability
discrimination); (9) the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1001, et seq. (employee benefits); (10) Title I of the Americans with Disabilities Act (disability discrimination); and
(11) any applicable state law counterpart of any of the foregoing, including under the laws of Maryland or the District of Columbia, as and if applicable. Further, Employee expressly waives the benefits of any statutory provision or common
law rule that provides, in sum and substance, that a release does not extend to claims which the party does not know or suspect to exist in its favor at the time of executing the release, which if known by it would have materially affected it
settlement with the other party. The matters that are the subject of the releases referred to in this Section 5 of this Agreement shall be referred to collectively as the “Released Matters”; provided, however,
that notwithstanding the foregoing, it is expressly agreed that Employee does not hereby release, and the term Released Matters shall not include: (a) any rights or claims based solely on events which first arose after the Effective Date of
this Agreement; (b) any breach by the Company of the terms of this Agreement; (c) any rights Employee may have regarding the enforcement of this Agreement; (d) any obligation of the Company under the indemnification provisions of its
Certificate of Incorporation or Bylaws applicable to the Employee and relating to any event occurring on or before the Termination Date; and (e) any rights Employee may have under the Consolidated Omnibus Budget Reconciliation Act of 1985.

 6. OWBPA Notice. In accordance with the Older Workers Benefit Protection Act of 1990, Employee agrees and expressly acknowledge
that Employee is aware that this Agreement includes a waiver and release of all claims which Employee has or may have had under the ADEA. The following terms and conditions apply to and are part of the waiver and release of the ADEA claims under
this Agreement: 
 (a) This paragraph, and this Agreement are written in a manner calculated to be understood by Employee.

 (b) The waiver and release of claims under the ADEA contained in this Agreement does not cover rights or claims that may
arise after the date on which Employee signs this Agreement. 
 (c) This Agreement provides for consideration in addition to
anything of value to which Employee is already entitled. 
 (d) Employee has been advised to consult an attorney before
signing this Agreement. 
 (e) Employee has been granted twenty-one (21) days after Employee was presented with this
Agreement to decide whether or not to sign this Agreement. If Employee executes this Agreement prior to the expiration of such period, Employee does so voluntarily and after having had the opportunity to consult with an attorney, and hereby waives
the remainder of the twenty-one (21) day period. 
 (f) Employee has the right to revoke this general release within
seven (7) days of signing this Agreement. In the event this general release is revoked, this 
  

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 Agreement will be null and void in its entirety, and Employee will not receive any of its benefits.

 If Employee wishes to revoke this Agreement, Employee must deliver written notice stating the intent to revoke this Agreement to Jim Craig, 1300 19th
Street NW, 8th Floor, Washington D.C. 20036, fax: 202-332-5498 on or before 5:00 p.m. on the seventh (7th) Day
after the date on which Employee signs this Agreement. 
 7. Transition and Consulting; Other Agreements. The parties further agree
that: 
 (a) Transition. Each of the Company and the Employee shall use their respective reasonable commercial efforts
to cooperate with each other in good faith to facilitate a smooth transition of Employee’s duties to other employees of the Company. 
 (b) Consulting. Employee shall be available, on a non-exclusive basis, as a consultant to respond to, and shall respond with reasonable promptness and completeness to, e-mail and telephone inquiries from the
Company regarding transitional matters provided that such inquiries would not interfere in any significant manner with other business pursuits (including other employment) by Employee. The parties agree that the consideration provided for in this
Agreement shall be sufficient to constitute adequate consideration for the fair value of the foregoing consulting undertakings for all inquiries made during the period from the Termination Date through December 31, 2006 and that, thereafter,
should the Company be desirous of Employee’s continued assistance, Employee shall be entitled to be compensated as an independent consultant at the rate of $125 per hour. It is understood and agreed that Employee shall not provide assistance
requested after December 31, 2006, nor shall the Company be obligated to pay for such assistance, unless it is preceded by a written engagement agreement signed on behalf of the Company by its CEO or CFO. 
 (c) Mutual Non-Disparagement. Employee agrees that he shall not disparage, defame or criticize the Company, its affiliates and
their respective affiliates, directors, officers, agents, partners, shareholders or employees in a non-constructive manner, either publicly or privately. The Company shall not, and shall cause its officers and directors not to, disparage, defame or
criticize Employee in a non-constructive manner, either publicly or privately. The only statement that the Company will make regarding Employee’s separation is that Employee resigned for personal reasons. Nothing in this Section 7(c) shall
have application to any evidence or testimony requested by any court, arbitrator or government agency. 
 (d)
Cooperation. Subject to Employee’s other business pursuits, including other employment, Employee agrees to cooperate fully and promptly with the Company in its efforts to engage in any internal investigation or prosecute or defend itself
against any claim, suit, demand or cause of action (not brought by the Company against Employee or by Employee against the Company); provided that the Company shall be responsible for any reasonable and documented out-of-pocket costs or
expenses associated with such cooperation (including reasonable attorneys’ fees). 
 (e) Personal Expenses. Any
personal expenses incurred by the Company on the Employee’s behalf, including personal charges to any Company credit card (if any), shall promptly be reimbursed by Employee upon presentation by the Company. 
  

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 (f) Transfer of Company Property. On or before the Termination Date, Employee
agrees to turn over to the Company any and all property, tangible or intangible, relating to its business, which he possessed or had control over at any time (including, but not limited to, Company-provided credit cards, building or office access
cards, keys, computer or other business equipment, manuals, files, documents, records, software, customer data base and other data), and that he shall not retain any copies, compilations, extracts, excerpts, summaries or other notes of any such
manuals, files, documents, records, software, customer data base or other datafiles, memoranda, records, and other documents, and any other physical or personal property which are the property of the Company and which he had in his possession,
custody or control, including any computers or similar business equipment, with the exception of Employee’s cellular telephone and PDA which Employee may keep, provided, that the Company shall not be responsible for the provision of any service
related thereto. 
 8. Employee Representations. Employee warrants and represents that (a) he has not filed or authorized the
filing of any complaints, charges or lawsuits against the Company with any governmental agency or court, and that if, unbeknownst to Employee, such a complaint, charge or lawsuit has been filed on his behalf, he will immediately cause it to be
withdrawn and dismissed, (b) he has reported all hours worked as of the date of this Agreement and has been paid all compensation, wages, bonuses, commissions, and/or benefits to which he may be entitled and no other compensation, wages,
bonuses, commissions and/or benefits are due to him, except as provided in this Agreement, (c) he has no known workplace injuries or occupational diseases and has been provided and/or has not been denied any leave requested under the Family and
Medical Leave Act or any state law counterpart, (d) the execution, delivery and performance of this Agreement by the Employee does not and will not conflict with, breach, violate or cause a default under any agreement, contract or instrument to
which the Employee is a party or any judgment, order or decree to which the Employee is subject, and (e) upon the execution and delivery of this Agreement by the Company and the Employee, this Agreement will be a valid and binding obligation of
the Employee, enforceable in accordance with its terms. 
 9. No Assignment. Employee warrants and represents that no portion of any
of the Released Matters, and no portion of any recovery or settlement to which Employee might be entitled, has been assigned or transferred to any other person, firm or corporation not a party to this Agreement, in any manner, including by way of
subrogation or operation of law or otherwise. If any claim, action, demand or suit should be made or instituted against the Company because of any such purported assignment, subrogation or transfer, Employee agrees to indemnify and hold harmless the
Company against such claim, action, suit or demand, including necessary expenses of investigation, attorneys’ fees and costs. 
 10.
Company Representations. The Company warrants and represents that (a) the execution, delivery and performance of this Agreement by the Company has been duly authorized and that this Agreement constitutes the valid and binding obligation
of the Company, enforceable in accordance with its terms and (b) no director or executive officer of the Company is, as of the date hereof, aware of any legal claim the Company has against Employee relating in any manner to his employment by
the Company or service as an officer thereof. 
 11. Section 409A. Notwithstanding anything in this Agreement to the contrary, if
payment of any amount or other benefit that is “deferred compensation” subject to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), at the time otherwise specified in this Agreement would subject
such compensation to additional tax pursuant to Section 409A(a)(1) of the Code, the payment thereof shall be postponed to the earliest commencement date on which such 
  

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 amounts could be paid without incurring such additional tax; provided, however, that the parties expressly acknowledge
that they have in good faith determined that the payments and benefits specified in this Agreement do not so constitute “deferred compensation” subject to Section 409A. In the event a deferral of payment should be required, any
payments that would have been made prior to such earliest commencement date but for Section 409A of the Code shall be accumulated and paid in a single lump sum on such earliest commencement date. If any benefits permitted or required under this
Agreement are otherwise reasonably determined by the Company or Employee to be subject for any reason to a material risk of additional tax pursuant to Section 409A(a)(1) of the Code, the Company and Employee agree to negotiate in good faith
appropriate provisions to avoid such risk without materially changing the economic value of this Agreement to Employee or the economic value or financial effect of this Agreement on the Company. 
 12. Indemnification. To the extent permitted by law, the Company will indemnify Employee pursuant to the terms of any indemnification agreement by
and between the Company and Employee (if any) and the Company’s Certificate of Incorporation and Bylaws. In addition, for six years after the Termination Date, the Company will cause Employee to be covered by any directors’ and
officers’ liability insurance policy that it obtains at least to the same extent as other persons then serving as directors or executive officers of the Company. 
 13. Beneficiaries. Employee may designate one or more persons or entities as the primary and/or contingent beneficiaries of any amounts to be received under this Agreement that are unpaid if Employee dies prior
to payment thereof, which obligation to render payment shall survive Employee’s death. This designation must be written and presented in a form acceptable to the Company. Employee may make or change his designation at any time, provided that
such designation is written and presented in a form acceptable to the Company. 
 14. Miscellaneous. This Agreement is the entire
agreement between the parties with regard to the subject matter hereof. This Agreement shall be interpreted in accordance with the laws of the District of Columbia and federal law where applicable. Whenever possible, each provision of this Agreement
shall be interpreted in a manner as to be effective and valid under applicable law, but if any provision shall be held to be prohibited or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or
invalidity, without invalidating or affecting the remainder of such provision or any of the remaining provisions of this Agreement. Employee acknowledges that there are no other agreements, written, oral or implied, and that he may not rely on any
prior negotiations, discussions, representations or agreements. This Agreement may be modified only in writing, and such writing must be signed by both parties and recited that it is intended to modify this Agreement. This Agreement may be executed
in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement. In the event of any material breach of this Agreement, not cured within ten (10) days after written
notice, the non-defaulting party shall have all rights and remedies available under law. Each party shall be solely responsible for and shall bear all of its own costs and expenses incident to its obligations under and in respect of this Agreement,
including, but not limited to, any such costs and expenses incurred by such party in connection with the negotiation, preparation, performance of and compliance with the terms of this Agreement (including, without limitation, the fees and expenses
of legal counsel or other representatives). 
 (Signature page(s) follow) 
  

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 IN WITNESS WHEREOF, the undersigned have caused this Separation Agreement to be duly executed and
delivered as of the date indicated next to their respective signatures below. 
  

					
	DATED: November 21, 2006	 	
			
		 	By:	 	 /s/ Mark Thimmig

		 		 	Mark Thimmig
		
		 	VARSITY GROUP, INC.
		
	DATED: November 21, 2006	 	
			
		 	By:	 	 /s/ Eric J. Kuhn

		 	Name:	 	Eric J. Kuhn
		 	Title:	 	Chairman of the Board of Directors

  

 S-1 

 Exhibit A 
 Summary of Stock Options 
  

			
	Number of stock options:	    	100,000 shares of common stock
		
	Original issue date:	    	February 17, 2006
		
	Exercise price:	    	$3.80 per share
		
	Vesting status:	    	11,666 shares vested, as of November 16, 2006James Craig Employment Offer Letter

 Exhibit 10.2 
 Employment Offer 
 THIS Offer (the “Offer”) made as of the 16th day of May 2006 by and between
VARSITY GROUP INC., a Delaware corporation (the “Company”), and James M. Craig (the “Executive”). 
 The Executive has been offered a position by the Company as the Chief Financial Officer, Varsity Group, Inc. 
 The Company
desires to set forth the nature and amount of compensation and other benefits to be provided to the Executive and any of the rights of the Executive in the event of his termination of employment with the Company. The Executive is willing to commit
himself to serve the Company, on the terms and conditions herein provided. 
 In order to effect the foregoing, the Company and the Executive wish to enter
into an Agreement under the terms and conditions set forth below. Accordingly, in consideration of the promises and the respective covenants and agreements of the parties herein contained, and intending to be legally bound hereby, the parties hereto
agree as follows: 
 1. Employment. The Company hereby agrees to employ the Executive, and the Executive hereby agrees to serve the Company, on the
terms and conditions set forth herein. 
 2. Term. The term of Executive’s employment under Section 1 will commence on the date (the
“Commencement Date”) May 16, 2006. The employment commencement date further sets forth the termination of any prior consulting agreements. 
 3. Position and Duties. The Executive shall serve as Chief Financial Officer, Varsity Group, Inc., reporting to Company’s Chief Executive Officer (the “CEO”) and shall have responsibility for the development of
the Financial Operations of Varsity Group working together with the Board of Directors and entire executive team as well as all other duties that are consistent with a public company CFO. 
 4. Place of Performance. The Executive shall report to the current headquarters of the Company. The Executive will be required to provide weekly, monthly
financial reports to the CEO as well as any other reports that may be requested by the Board of Directors or the Chairman of the Audit Committee. The CFO will further set a goal for rapid development of real time on-line operating information
available to appropriate executives throughout the company. 
 5. At-Will Employment. The parties agree that the Executive’s employment with the
Company will be “at-will” employment and may be terminated at any time with or without cause or notice. The Executive understands and agrees that neither the Executive’s job performance nor promotions, commendations, commissions,
bonuses or the like from the Company give rise to or in any way serve as the basis for modification, 

 amendment, or extension, by implication or otherwise, of the Executive’s employment
with the Company. 
 6. Compensation and Related Matters. 
 (a) Base Salary. Commencing on the Commencement Date, the Company shall pay to the Executive a salary at a rate of not less than Two Hundred Ten Thousand Dollars
($210,000) per annum in equal installments as nearly as practicable on the normal payroll periods for employees of the Company generally (the “Base Salary”). The Base Salary may be increased from time to time and, if so increased,
shall not thereafter be decreased during the term of this Agreement. 
 (b) Bonus. The CEO, in conjunction with the Board of Directors will establish
appropriate bonus goals and objectives which will serve as the basis for the determination of a Bonus of up to 30% to be paid by the Company on an annual basis. 
 (c) Stock Options. In connection with the commencement of your employment, the Company the Board of Directors will grant you an option to purchase 100,000 shares of the Company’s Common Stock (“Shares”). These
option shares will vest over five years monthly. Vesting will, of course, depend on your continued employment with the Company. The option will be an incentive stock option to the maximum extent allowed by the tax code and will be subject to the
terms of the Company’s Second Amended and Restated 1998 Stock Option Plan and the Stock Option Agreement between you and the Company. [See Appendix B: Incentive Stock Option Agreement] The CEO and the Board of Directors will review your option
compensation annually and may recommend to the Board of Directors a grant of additional options to purchase shares based upon your performance and the performance of the company over the prior year and or future projections. 
 (d) Expenses. During the term of the Executive’s employment hereunder, the Executive shall be entitled to receive prompt reimbursement for all reasonable
business expenses incurred by the Executive in performing services hereunder, in each case with the prior approval of the CEO, including all expenses of mobile phone, travel, entertainment and living expenses while away from home on business or at
the request of and in the service of the Company, provided that such expenses are incurred and accounted for in accordance with the policies and procedures established by the Company. 
 (e) Benefits. During the Term, the Executive shall be entitled to participate in employee benefit plans, 401-K and such other programs the Company may offer or to be amended from time to time, which are
applicable to the senior officers of the Company. 
 7. Termination and Definitions. 
 (a) Company obligations upon Termination: Upon termination of the Executive’s employment, the Executive (or the Executive’s estate) shall be entitled to
receive the sum of the Executive’s Base Salary through the date of termination not theretofore paid, any Commission earned through the date of termination, any expenses owed to the Executive 
  

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 under Section 6(c), and any amount accrued and arising from the Executive’s participation in, or
benefits accrued under, any employee benefit plans, programs or arrangements under Section 6(d), which amounts shall be payable in accordance with the terms and conditions of such employee benefit plans, programs or arrangements, and
such other or additional benefits as may be, or become, due to him under the applicable terms of applicable plans, programs, agreements, corporate governance documents and other arrangements of the Company and its subsidiaries. 
 (b) Termination by the Company for Cause or by the Executive for any reason. If the Executive’s employment shall terminate by the Company for
“Cause” (as defined below) or by the Executive for any reason (including death or disability), the Executive shall not be entitled to any severance payment or benefits (other than as required by law or expressly provided for under any
benefit plan). 
 (c) Termination by the Company without Cause. If the Executive’s employment shall terminate by the Company without Cause (which
shall not include termination due to the Executive’s Disability), the Company shall, subject to the Executive signing and not revoking a release of claims in the form provided to the Executive by the Company at the time of termination, pay to
the Executive an amount equal to the Base Salary that the Executive would have been entitled to receive if the Executive had continued his employment hereunder for a period of six months following the date of termination. 
 (d) Notice of Termination. Any termination of the Executive’s employment by the Company or by the Executive shall be communicated by written Notice of
Termination to the other party hereto. 
 (e) Definitions 
 (i) For purposes of this Agreement, termination “for Cause” shall arise where termination results from (A) conviction of, or the pleading
of nolo contendere to, a felony; (B) a material breach of this Agreement which materially and adversely affects the Company’s business and operations; (C) solicitation by the Executive of other Company employees, customers or
contractors to provide consulting or fee-based work to the Executive in connection with any outside business run by the Executive; (D) the failure of Executive for any reason, within twenty (20) days after receipt by Executive of written
notice thereof from the Company, to correct, cease or otherwise alter any failure to comply with instructions or other action or omission to act which will materially or adversely affect its business or operations. 
 (ii) For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in
this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated. 
  

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 (iii) For purposes of this Agreement, “Disability” shall mean, at any time the Company or any
of its affiliates sponsors a long-term disability plan for the Company’s employees, “disability” as defined in such long-term disability plan for the purpose of determining a participant’s eligibility for benefits, provided,
however, if the long-term disability plan contains multiple definitions of disability, “Disability” shall refer to that definition of disability which, if the Executive qualified for such disability benefits, would provide coverage for the
longest period of time. The determination of whether the Executive has a Disability shall be made by the person or persons required to make disability determinations under the long-term disability plan. 
 8. Non Compete; Non Solicitation. During the period commencing on the Commencement Date, and during the one (1) year following the date of the
Executive’s termination or resignation (other than a termination by the Company without Cause), the Executive agrees that, without the prior written consent of the Company or its successors (i) he will not, directly or indirectly, either
as principal, manager, agent, consultant, officer, partner, or employee or in any other capacity, carry on, be engaged in any Competing Business (provided that nothing in this Section 8 shall prohibit the ownership of less than one percent
(1%) of the stock of a publicly-held corporation whose stock is traded on a national securities exchange or listed with the Nasdaq Stock Market), and (ii) he shall not, on his own behalf or on behalf of any person or company, directly or
indirectly, communicate with any person who is employed by the Company and/or its subsidiaries, affiliates or successors at any time in order to encourage, solicit or suggest that such person terminate his or her employment with the Company, or to
solicit or offer employment to such person. For purposes of this Section 8, a “Competing Business” shall mean a business that is planning or operating a company whose business is marketing, distributing, servicing and selling to or on
behalf of public or private schools such items as school uniforms and related accessories and equipment or textbooks or other educational supplies, accessories, equipment or services in any market served by the Company at the time of such
termination, including through web portals. 
 9. Successors; Binding Agreement. 
 (a) Successors. The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company, by agreement in form and substance satisfactory to the Executive, to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which executes and delivers the agreement
provided for in this Section 9 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law. 
  

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 (b) Binding Agreement. This Agreement and all rights of the Executive hereunder shall inure to the benefit of and
be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive should die while any amounts would still be payable to him hereunder if he
had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the Executive’s devisee, legatee, or other designee or, if there be no such designee, to the
Executive’s estate. 
 10. Proof of Right to Work. For purposes of federal immigration law, you will be required to provide to the Company
documentary evidence of your identity and eligibility for employment in the United States. Such documentation must be provided to us within three (3) business days of your date of hire. 
 11. Confidential Information and Invention Assignment Agreement. Your acceptance of this offer and commencement of employment with the Company is contingent upon
the execution, and delivery to an officer of the Company, of the Company’s Confidential Information and Invention Assignment Agreement, a copy of which is enclosed for your review and execution (the “Confidentiality
Agreement”), prior to or on your Start Date. 
 12. Confidentiality of Terms. You agree to follow the Company’s strict policy that
employees must not disclose, either directly or indirectly, any information, including any of the terms of this agreement, regarding salary, bonuses, or stock option allocations to any person, including other employees of the Company; provided,
however, that you may discuss such terms with members of your immediate family and any legal, tax or accounting specialists who provide you with individual legal, tax or accounting advice. 
 13. Notice. For the purposes of this Agreement, notices, demands and all other communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or (unless otherwise specified) mailed by United States registered mail, return receipt requested, postage prepaid, addressed, if to the Executive, as follows: 
 [James M. Craig] 
 or
if to the Company, as follows: 
 Varsity Group Inc. 
 1300 19th Street, NW 
 Suite 800 
 Washington, DC 20036 
 or to such other address as any party may have furnished to the other in writing in accordance
herewith, except that notices of change of address shall be effective only upon receipt. 
  

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 14. Prior Agreement. All prior agreements or understandings, whether written or unwritten, between the Company and
the Executive with respect to the employment of the Executive are hereby superseded and terminated effective as of the date hereof and shall be without further force or effect. 
 15. Miscellaneous. No provisions of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by the Executive and duly authorized officer
of the Company. No waiver by either party hereto at any time of any breach by the other hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not set forth
expressly in this Agreement. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the District of Columbia. 
 16. Validity. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in
full force and effect. 
 17. Captions. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.

 18. Non-Exclusivity. Except as may otherwise be specifically provided in this Agreement, nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or practice provided by the Company or any of its affiliated companies for which the Executive may qualify. Vested benefits and other amounts that the Executive is
otherwise entitled to receive under any other plan, policy, practice, or program of, or any contract or agreement with, the Company or any of its affiliated companies on or after the date of his termination of employment shall be payable in
accordance with the terms of each such plan, policy, practice, program, contract, or agreement, as the case may be, except as explicitly modified by this Agreement. 
 19. No Mitigation. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this
Agreement, and the amount of any payment or benefit provided for in this Agreement shall not be reduced by any compensation or benefits earned by the Executive as the result of employment by another employer. 
 20. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original but which together shall constitute one and
the same instrument. 
 21. Expiration. If not fully executed by the parties on or before May 9th, 2006 this Offer will expire. 
  

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 [Signature Page Follows] 
  

 7 

 IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the date and year first above written.

  

			
	VARSITY GROUP INC.:
		
	Signature:	 	 /s/ Mark Thimmig

	Name:	 	 Mark Thimmig

	Title:	 	 Chief Executive Officer

	Date:	 	 May 10, 2006

	
	EXECUTIVE:
		
	Signature:	 	 /s/ James M. Craig

	Name:	 	James M. Craig
	Title:	 	  

	Date:	 	 May 10, 2006

 (Signature Page to James M. Craig Offer Letter)

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