Document:

exv10w40

Exhibit 10.40

VOTING AGREEMENT

     THIS VOTING AGREEMENT is made and entered into as of this [___] day of November, 2009, by and
among Providence Equity Partners V L.P. (“PEP V”), Providence Equity Partners V-A L.P.
(“PEP V-A”, and together with PEP V, the “Providence Stockholders”), Cameron
Chalmers and David Muzzo (collectively, the “Founder Stockholders”) and MHT-SI, L.P.
(“MHT”, and together with the Founder Stockholders, the “Stockholders”), and
Archipelago Learning, Inc., a Delaware corporation (the “Company”).

RECITALS

     WHEREAS, the Company is proposing to sell shares of common stock of the Company, par value
$0.001 per share (the “Common Stock”), to the public in an initial public offering; and

     WHEREAS, subject to the terms and conditions herein, the Stockholders and the Company desire
to enter into this Voting Agreement to set forth their agreements and understandings with respect
to how certain shares of Common Stock to be held by them will be voted with respect to the election
of certain members of the Board of Directors (the “Board”).

     NOW, THEREFORE, in consideration of the foregoing and the mutual promises, covenants and
agreements of the parties hereto, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

     1. Voting Provisions Regarding Board of Directors. Each Stockholder agrees to vote,
or cause to be voted, at least fifty percent (50%) of all Common Stock owned by such Stockholder,
or over which such Stockholder has voting control, from time to time and at all times (such
percentage of Common Stock, the “Designated Voting Stock”), for the election of David
Phillips, Michael Powell, Peter Wilde, Brian Hall and Timothy McEwen to the Board at each annual or
special meeting of stockholders at which an election of directors is held or pursuant to any
written consent of the stockholders in which an election of directors is made.

     2. Remedies.

          2.1 Irrevocable Proxy. Each Stockholder hereby constitutes and appoints each of the
Providence Stockholders with full power of substitution, as the proxies of the Stockholder with
respect to the matters set forth herein, including without limitation, election of persons as
members of the Board in accordance with Section 1 hereto, and hereby authorizes each of
them to represent and to vote the Designated Voting Stock for the election of David Phillips,
Michael Powell, Peter Wilde, Brian Hall and Timothy McEwen to the Board, if and only if the
Stockholder (i) fails to vote or (ii) attempts to vote (whether by proxy, in person or by written
consent), in a manner that is inconsistent with the terms of this Voting Agreement. The proxy
granted pursuant to the immediately preceding sentence is given in consideration of the agreements
and covenants of the Company and the parties in connection with the transactions contemplated by
this Voting Agreement and, as such, is coupled with an interest and shall be irrevocable unless and
until this Voting Agreement terminates or expires pursuant to Section 3 hereof. Each
Stockholder hereby revokes any and all previous proxies with respect to such the

 

 

Designated Voting Stock and shall not hereafter, unless and until this Voting Agreement
terminates or expires pursuant to Section 3 hereof, purport to grant any other proxy or
power of attorney with respect to any of the Designated Voting Stock, deposit any of the Designated
Voting Stock into a voting trust or enter into any agreement (other than this Voting Agreement),
arrangement or understanding with any person, directly or indirectly, to vote, grant any proxy or
give instructions with respect to the voting of any of the Designated Voting Stock, in each case,
with respect to any of the matters set forth herein.

          2.2 Remedies Cumulative. All remedies, either under this Voting Agreement or by law
or otherwise afforded to any party, shall be cumulative and not alternative.

     3. Term. This Voting Agreement shall be effective as of the date hereof and shall
continue in effect until, and automatically terminate upon, the six-month anniversary of the date
hereof.

     4. General Provisions.

          4.1 Assignment; Benefit. The rights and obligations hereunder shall not be assignable
without the prior written consent of the other parties hereto. Any assignment of rights or
obligations in violation of this Section 4.1 shall be null and void. This Voting Agreement
shall be binding upon and shall inure to the benefit of the parties hereto, and their respective
successors and permitted assigns.

          4.2 Severability. In the event that any provision of this Voting Agreement shall be
invalid, illegal or unenforceable, such provision shall be construed by limiting it so as to be
valid, legal and enforceable to the maximum extent provided by law and the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

          4.3 Entire Agreement. This Voting Agreement constitutes the entire agreement among
the parties hereto with respect to the subject matter hereof, and supersedes any prior agreement or
understanding among them with respect to the matters referred to herein. There are no
representations, warranties, promises, inducements, covenants or undertakings relating to Common
Stock, other than those expressly set forth or referred to herein.

          4.4 Amendment. This Voting Agreement may not be amended, modified, supplemented or
waived except by the unanimous written approval of the parties hereto.

          4.5 Waiver. No waiver of any breach of any of the terms of this Voting Agreement
shall be effective unless such waiver is expressly made in writing and executed and delivered by
the party against whom such waiver is claimed. Waiver by any party hereto of any breach or
default by any other party of any of the terms of this Voting Agreement shall not operate as a
waiver of any other breach or default, whether similar to or different from the breach or default
waived. No waiver of any provision of this Voting Agreement shall be implied from any course of
dealing between the parties hereto or from any failure by any party to assert its or his or her
rights hereunder on any occasion or series of occasions.

2

 

          4.6 Counterparts. This Voting Agreement may be executed in any number of separate
counterparts each of which when so executed shall be deemed to be an original and all of which
together shall constitute one and the same agreement.

          4.7 Notices. Unless otherwise specified herein, all notices, consents, approvals,
reports, designations, requests, waivers, elections and other communications authorized or required
to be given pursuant to this Voting Agreement shall be in writing and shall be given, made or
delivered (and shall be deemed to have been duly given, made or delivered upon receipt) by personal
hand-delivery, by facsimile transmission, by electronic mail, by mailing the same in a sealed
envelope, registered first-class mail, postage prepaid, return receipt requested, or by air courier
guaranteeing overnight delivery, addressed to the Stockholder at the address set forth in the
records of the Company or at such other address as such Stockholder shall have furnished to the
Company in writing as the address to which notice are to be sent hereunder.

	 	 	 	 	 
	 	 	If to Company, to:
	 
	 	 	 	 
	 	 	Archipelago Learning, Inc.
	 	 	3400 Carlisle Street, Suite 345
	 	 	Dallas, Texas 75204
	 

	 	Attention:
	 	Tim McEwen
	 

	 	Telephone:
	 	(800) 419-3191
	 

	 	Facsimile:
	 	(866) 515-9145
	 

	 	Email:
	 	tim.mcewen@archlearning.com
	 
	 	 	 	 
	 	 	with a copy (which shall not constitute notice) to:
	 
	 	 	 	 
	 	 	Weil, Gotshal & Manges LLP
	 	 	100 Federal Street, 34th Floor
	 	 	Boston, Massachusetts 02110
	 

	 	Attention:
	 	Kevin J. Sullivan
	 

	 	Telephone:
	 	(617) 772-8348
	 

	 	Facsimile:
	 	(617) 772-8333
	 

	 	Email:
	 	kevin.sullivan@weil.com

          4.8 Governing Law. THIS VOTING AGREEMENT AND ANY CLAIM OR DISPUTE ARISING OUT OF OR
RELATED TO THIS VOTING AGREEMENT (WHETHER IN CONTRACT, TORT OR OTHERWISE) OR THE SUBJECT MATTER
HEREOF SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS LAW.

          4.9 Jurisdiction. ANY ACTION OR PROCEEDING AGAINST THE PARTIES RELATING IN ANY WAY TO
THIS VOTING AGREEMENT MAY BE BROUGHT EXCLUSIVELY IN THE COURTS OF THE STATE OF NEW YORK IN THE
BOROUGH OF MANHATTAN OR (TO THE EXTENT SUBJECT MATTER JURISDICTION EXISTS THEREFORE) THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN

3

 

DISTRICT OF NEW YORK, AND THE PARTIES IRREVOCABLY SUBMIT TO THE JURISDICTION OF BOTH SUCH
COURTS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING. ANY ACTIONS OR PROCEEDINGS TO ENFORCE A
JUDGMENT ISSUED BY ONE OF THE FOREGOING COURTS MAY BE ENFORCED IN ANY JURISDICTION.

          4.10 Waiver of Jury Trial. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT
BE WAIVED, EACH STOCKHOLDER WAIVES, AND COVENANTS THAT SUCH PARTY WILL NOT ASSERT (WHETHER AS
PLAINTIFF, DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY
ISSUE, CLAIM OR PROCEEDING ARISING OUT OF THIS VOTING AGREEMENT OR THE SUBJECT MATTER HEREOF OR IN
ANY WAY CONNECTED WITH THE DEALINGS OF ANY STOCKHOLDER OR THE COMPANY IN CONNECTION WITH ANY OF THE
ABOVE, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER IN CONTRACT, TORT OR
OTHERWISE. The Company or any Stockholder may file an original counterpart or a copy of this
Section 4.10 with any court as written evidence of the consent of the Stockholders to the
waiver of their rights to trial by jury.

          4.11 Specific Performance. It is hereby agreed and acknowledged that it will be
impossible to measure the money damages that would be suffered if the parties fail to comply with
any of the obligations herein imposed on them by this Voting Agreement and that, in the event of
any such failure, an aggrieved party will be irreparably damaged and will not have an adequate
remedy at law. Any such party shall, therefore, be entitled (in addition to any other remedy to
which such party may be entitled at law or in equity) to injunctive relief, including specific
performance, to enforce such obligations, without the posting of any bond, and if any action should
be brought in equity to enforce any of the provisions of this Voting Agreement, none of the parties
hereto shall raise the defense that there is an adequate remedy at law.

          4.12 No Third Party Beneficiaries. Except as otherwise provided herein, this Voting
Agreement is not intended to confer upon any Person, except for the parties hereto, any rights or
remedies hereunder.

[Signature Page Follows]

4

 

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

	 	 	 	 	 	 
	 	 	ARCHIPELAGO LEARNING, INC.	 
	 
	 	 	 	 	 
	 

	 	By:	 	 	 
	 

	 	 	 	 	 
	 

	 	Name:

Title:
	 	Tim McEwen

Chief Executive Officer	 
	 
	 	 	 	 	 
	 	 	PROVIDENCE EQUITY PARTNERS V L.P.	 
	 
	 	 	 	 	 
	 

	 	By:
	 	Providence Equity Partners GP V L.P.,	 
	 

	 	 	 	Its General Partner	 
	 
	 	 	 	 	 
	 

	 	By:
	 	Providence Equity Partners V L.L.C.,	 
	 

	 	 	 	Its General Partner	 
	 
	 	 	 	 	 
	 

	 	By:	 	 	 
	 

	 	 	 	 	 
	 

	 	Name:	 	 	 
	 

	 	Title:	 	 	 
	 
	 	 	 	 	 
	 	 	PROVIDENCE EQUITY PARTNERS V-A L.P.	 
	 
	 	 	 	 	 
	 

	 	By:
	 	Providence Equity Partners GP V L.P.,	 
	 

	 	 	 	Its General Partner	 
	 
	 	 	 	 	 
	 

	 	By:
	 	Providence Equity Partners V L.L.C.,	 
	 

	 	 	 	Its General Partner	 
	 
	 	 	 	 	 
	 

	 	By:	 	 	 
	 

	 	 	 	 	 
	 

	 	Name:	 	 	 
	 

	 	Title:	 	 	 

[SIGNATURE PAGES – VOTING AGREEMENT]

 

 

	 	 	 	 	 
	 

	 	 
	 

	 	Cameron Chalmers
	 
	 	 	 	 
	 

	 	 
	 

	 	David Muzzo
	 
	 	 	 	 
	 	 	MHT-SI, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	MHT-SI GP, LLC,
	 

	 	 	 	Its General Partner
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:
	 	Shawn D. Terry
	 

	 	Title:
	 	Manager

[SIGNATURE PAGES – VOTING AGREEMENT]exv10w41

Exhibit 10.41

Archipelago Learning, Inc.

2009 Omnibus Incentive Plan

NONQUALIFIED STOCK OPTION AWARD AGREEMENT

     THIS NONQUALIFIED STOCK OPTION AWARD AGREEMENT (this “Award Agreement”), is made effective as
[Date] (the “Date of Grant”), by and between Archipelago Learning, Inc., a Delaware corporation
(with any successor, the “Company”), and [Participant] (the “Participant”).

R E C I T A L S:

     WHEREAS, the Company has adopted the Archipelago Learning, Inc. 2009 Omnibus Incentive Plan
(the “Plan”), which Plan is incorporated herein by reference and made a part of this Agreement.
Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan; and

     WHEREAS, the Committee has determined that it would be in the best interests of the Company
and its stockholders to grant the option provided for herein to the Participant pursuant to the
Plan and the terms set forth herein.

     NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties
agree as follows:

     1. Grant of the Option. The Company hereby grants to the Participant the right and
option (the “Option”) to purchase, on the terms and conditions hereinafter set forth, all or any
part of an aggregate of [Number of Shares] Shares, subject to adjustment as set forth in the Plan.
The Option is intended to be a Nonqualified Stock Option.

     2. Option Price. The purchase price of the Shares subject to the Option shall be
$[Exercise Price] per Share (the “Option Price”), subject to adjustment as set forth in the Plan.

     3. Option Term. The term of the Option shall be ten (10) years, commencing on the
Date of Grant (the “Option Term”). The Option shall expire on the tenth (10th)
anniversary of the Date of Grant, unless the Option is terminated at an earlier date in accordance
with the terms of Plan or this Award Agreement.

     4. Vesting of the Option. Subject to the Participant’s continued service to the
Company, the Option shall vest in equal installments on each of the first four (4) anniversaries of
the Date of Grant; provided, that, the Option shall vest in full upon the
consummation of a Change of Control. At any time, the portion of the Option which has become
vested in accordance with the terms hereof shall be called the “Vested Portion”.

     5. Termination of Service.

          (a) Termination of Service for Cause. The Option, including any exercised portion of
the Option for which Shares have not been delivered to the Participant shall

 

 

be forfeited without consideration on the date the Participant’s service terminates (the
“Termination Date”) if such termination is for Cause or Cause exists on such date, and the Company
shall return to the Grantee the price (if any) paid for such exercised but undelivered Shares.

          (b) Termination of Service For Reason Other Than Cause. If the Participant’s service
is terminated for any reason other than a termination for Cause (or Cause exists on such date), the
unvested portion of the Option shall be forfeited without consideration on the Termination Date and
the Vested Portion shall terminate on the earlier of (i) the expiration the Option Term and (ii)
the ninetieth (90th) day following the Termination Date.

     6. Exercise Procedures.

          (a) Method of Exercise. The Participant or the Participant’s representative may
exercise the Vested Portion or any part thereof prior to the expiration of the Option Term by
giving written notice to the Company in a form provided by the Company (the “Notice of Exercise”).
The Notice of Exercise shall
be signed by the person exercising such Option. In the event that
such Option is being exercised by the Participant’s representative, the Notice of Exercise shall be
accompanied by proof (satisfactory to the Company) of such representative’s right to exercise such
Option. The Participant or the Participant’s representative shall deliver to the Company, at the
time the Notice of Exercise is given, payment for the full amount of the aggregate Option Price for
the exercised Option (i) in cash or its equivalent (e.g., by cashier’s check) or (ii) through the
delivery of irrevocable instructions to a broker to sell Shares obtained upon the exercise of the
Option and to deliver promptly to the Company an amount out of the proceeds of such sale equal to
the aggregate Option Price for the Shares being purchased.

          (b) Issuance of Shares. Provided the Company receives a properly completed and
executed Notice of Exercise and payment for the full amount of the aggregate Option Price, the
Company shall cause to be issued certificates for the Shares underlying the exercised Option,
registered in the name of the Person exercising the Option.

     7. Restrictive Covenants.

          (a) Applicability. This Section 7 will survive the termination of this Award
Agreement and the Participant’s service to the Company. As used in this Section 7, the
“Company” shall mean the Company and the Company’s Subsidiaries.

          (b) Restricted Period. As used in this Section 7, the “Restricted Period”
means the period commencing on the Date of Grant and ending six (6) months following the date upon
which the Participant’s service to the Company ceases.

          (c) Non-Competition. During the Restricted Period, the Participant will not engage in
any business in any manner, directly or indirectly, individually or as a consultant to, or as an
employee, officer, director, stockholder, partner or other owner or participant of, any entity that
(i) is in competition with any business of the Company or any business in which, to the
Participant’s knowledge, the Company had plans to engage or was considering engaging as of the
Termination Date, or (ii) inevitably will result in the disclosure or use of the Company’s
Confidential Information (defined below), in either case in any state in the United States where
the Company does business as of the Termination Date or where, to the

2

 

Participant’s knowledge, the Company had plans to engage or was considering engaging as of the
Termination Date.

          (d) Non-Solicitation. As used in this Section 7, “Solicitation” means,
directly or indirectly, individually or as a consultant to, or as an employee, officer, director,
stockholder, partner or other owner or participant of, any entity, (i) the solicitation of,
inducement of, or attempt to induce, any employee, agent or consultant (including freelance writers
and content providers) of the Company to leave the employ of, or stop providing services to, the
Company; (ii) the offering or aiding another to offer employment to, or interfering or attempting
to interfere with the Company’s relationship with, any employees or consultants (including
freelance writers and content providers) of the Company; (iii) the solicitation of, or assistance
to any entity or person in solicitation of, any customers or suppliers (including freelance writers
and content providers) of the Company to discontinue doing business with the Company; or (iv)
interfering with any relationship between the Company and any of its customers or suppliers
(including freelance writers and content providers). During the Restricted Period, the Participant
will not engage in or attempt to engage in any Solicitation, provided that Solicitation will not be
considered to have occurred by the general advertising for or hiring of any employee by entities
with which the Participant is associated, as long as he does not directly or indirectly (A) induce
such employee to leave the Company, (B) contact such employee prior to his departure from the
Company regarding employment, or (C) in the case of hiring such employee, control such entity or
have any input in the decision to hire such employee.

          (e) Confidentiality. As used in this Agreement, “Confidential Information” means all
information that relates to the business, technology, manner of operation, suppliers, customers,
finances, employees, plans, proposals or practices of the Company or of any third parties doing
business with the Company, and includes, without limitation, the identities of and other
information regarding the Company’s suppliers, customers and prospects, supplier lists, employee
information, business plans and proposals, software programs, marketing plans and proposals,
technical plans and proposals, research and development, budgets and projections, nonpublic
financial information, and all other information the Company designates as “confidential” or
intends to keep as confidential or proprietary. Excluded from the definition of Confidential
Information is information that is or becomes generally known to the public, other than through the
breach of this Award Agreement by the Participant. For this purpose, information known or
available generally within the trade or industry of the Company shall be deemed to be generally
known to the public.

     The Participant understands and agrees that Confidential Information will be considered the
trade secrets of the Company and the Company will be entitled to all protections given by law to
trade secrets and that the provisions of this Award Agreement apply to every form in which
Confidential Information exists, including, without limitation, written or printed information,
films, tapes, computer disks or data, or any other form of memory device, media or method by which
information is stored or maintained. The Participant acknowledges that in the course of service
with the Company, he has received and may receive Confidential Information. The Participant
further acknowledges that Confidential Information is a valuable, unique and special asset
belonging to the Company. For these reasons, and except as otherwise directed by the Company, the
Participant agrees, during his employment, and at all times after the termination of his employment
with the Company, that he will not disclose or disseminate to anyone outside the Company, nor use
for any purpose other than as required by his work for the Company, nor assist anyone else in any
such disclosure or use of, any Confidential Information. Upon the

3

 

Company’s request at any time and for any reason, the Participant shall immediately deliver to
the Company all materials (including all soft and hard copies) in the Participant’s possession
which contain or relate to Confidential Information.

          (f) Ownership of Intellectual Property. All inventions, modifications, discoveries,
designs, developments, improvements, processes, software programs, works of authorship,
documentation, formulae, data, techniques, know-how, trade secrets or intellectual property rights
or any interest therein (for purposes of this Section 7, the “Developments”) made by the
Participant, either alone or in conjunction with others, at anytime or at any place during the
Participant’s employment with the Company, whether or not reduced to writing or practice during
such period of employment, which relate to the business in which the Company is engaged or, to the
knowledge of the Participant, in which the Company intends to engage, shall be and hereby are the
exclusive property of the Company without any further compensation to the Participant. In
addition, without limiting the generality of the prior sentence, all Developments which are
copyrightable work by the Participant are intended to be “work made for hire” as defined in Section
101 of the Copyright Act of 1976, and shall be and hereby are the property of the Company. The
Participant shall promptly disclose any Developments to the Company. If any Development is not the
property of the Company by operation of law, other provisions of this Agreement or otherwise, the
Participant will, and hereby does, assign to the Company all right, title and interest in such
Development, without further consideration, and will assist the Company and its nominees in every
way, at the Company’s expense, to secure, maintain and defend the Company’s rights in such
Development. The Participant shall sign all instruments necessary for the filing and prosecution
of any applications for, or extension or renewals of, letters patent (or other intellectual
property registrations or filings) of the United States or any foreign country which the Company
desires to file and relates to any Development. The Participant hereby irrevocably designates and
appoints the Company and its duly authorized officers and agents as such Participant’s agent and
attorney-in-fact (which designation and appointment shall be deemed coupled with an interest and
shall survive the Participant’s death or incapacity), to act for and in the Participant’s behalf to
execute and file any such applications, extensions or renewals and to do all other lawfully
permitted acts to further the prosecution and issuance of such letters patent, other intellectual
property registrations or filings, or such other similar documents with the same legal force and
effect as if executed by the Participant.

          (g) Repayment of Proceeds. If the Participant violates any provision of this
Section 7, then the Participant shall be required to pay to the Company, within ten (10)
business days following the date on which Participant commits such violation, an amount equal to
the aggregate proceeds, if any, the Participant received upon the sale or other disposition of
Participant’s Shares.

          (h) Equitable Relief. The Participant acknowledges that (i) the provisions of this
Section 7 are essential to the Company; (ii) that the Company would not enter into this
Award Agreement if it did not include this Section 7; and (iii) that damages sustained by
the Company as a result of a breach of this Section 7 cannot be adequately remedied by
monetary damages. Furthermore, the Participant agrees that the Company, notwithstanding any other
provision of this Award Agreement, and in addition to any other remedy it may have under this Award
Agreement, or at law, will be entitled to injunctive and other equitable relief to prevent or
curtail any breach of this Section 7.

     8. Adjustment of Shares. In the event of any corporate event or transaction described
in Section 13.1 of the Plan, the terms of this Award Agreement (including, without

4

 

limitation, the number and kind of Shares subject to this Award Agreement and the Option
Price) shall be adjusted as set forth in Section 13.1 of the Plan.

     9. No Right to Continued Service. The granting of the Option evidenced hereby and
this Award Agreement shall impose no obligation on the Company or any Affiliate to continue the
Service of the Participant and shall not lessen or affect any right that the Company or any
Affiliate may have to terminate the Service of such Participant.

     10. Securities Laws/Legend on Certificates. The issuance and delivery of Shares shall
comply with all applicable requirements of law, including (without limitation) the Securities Act
of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and
regulations, and the regulations of any stock exchange or other securities market on which the
Company’s securities may then be traded. If the Company deems it necessary to ensure that the
issuance of securities under the Plan is not required to be registered under any applicable
securities laws, the Participant shall deliver to the Company an agreement or certificate
containing such representations, warranties and covenants as the Company which satisfies such
requirements. The certificates representing the Shares shall be subject to such stop transfer
orders and other restrictions as the Committee may deem reasonably advisable, and the Committee may
cause a legend or legends to be put on any such certificates to make appropriate reference to such
restrictions.

     11. Transferability. The Option may not be assigned, alienated, pledged, attached,
sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of
descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale,
transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate;
provided, that, the designation of a beneficiary shall not constitute an
assignment, alienation, pledge, attachment, sale, transfer or encumbrance. No such permitted
transfer of the Option to heirs or legatees of the Participant shall be effective to bind the
Company unless the Committee shall have been furnished with written notice thereof and a copy of
such evidence as the Committee may deem necessary to establish the validity of the transfer and the
acceptance by the transferee or transferees of the terms and conditions hereof. During the
Participant’s lifetime, the Option is exercisable only by the Participant.

     12. Conditions and Restrictions on Shares. The Committee may impose such other
conditions or restrictions on any Shares received in connection with the Option as it may deem
advisable or desirable. These restrictions may include, but shall not be limited to, requirements
that the Participant: (a) hold the Shares received for a specified period of time or (b) represent
and warrant in writing that the Participant is acquiring the Shares for investment and without any
present intention to sell or distribute such Shares. The certificates for Shares may include any
legend which the Committee deems appropriate to reflect any conditions and restrictions applicable
to such Shares.

     13. Withholding. The Participant may be required to pay to the Company or any
Affiliate and the Company shall have the right and is hereby authorized to withhold, any applicable
withholding taxes in respect of the Option, its exercise or any payment or transfer under or with
respect to the Option and to take such other action as may be necessary in the opinion of the
Committee to satisfy all obligations for the payment of such withholding taxes. With respect to
required withholding, the Participant may elect (subject to the Company’s automatic withholding
right set out above), subject to the approval of the Committee, to satisfy the withholding
requirement, in whole or in part, by having the Company withhold Shares having

5

 

a Fair Market Value on the date the tax is to be determined equal to the minimum statutory
total tax that could be imposed on the transaction.

     14. Notices. Any notification required by the terms of this Award Agreement shall be
given in writing and shall be deemed effective upon personal delivery or within three (3) days of
deposit with the United States Postal Service, by registered or certified mail, with postage and
fees prepaid. A notice shall be addressed to the Company, Attention: General Counsel, at its
principal executive office and to the Participant at the address that he or she most recently
provided to the Company.

     15. Entire Agreement. This Award Agreement and the Plan constitute the entire
contract between the parties hereto with regard to the subject matter hereof. They supersede any
other agreements, representations or understandings (whether oral or written and whether express or
implied) which relate to the subject matter hereof.

     16. Waiver. No waiver of any breach or condition of this Award Agreement shall be
deemed to be a waiver of any other or subsequent breach or condition whether of like or different
nature.

     17. Successors and Assigns. The provisions of this Award Agreement shall inure to the
benefit of, and be binding upon, the Company and its successors and assigns and upon the
Participant, the Participant’s assigns and the legal representatives, heirs and legatees of the
Participant’s estate, whether or not any such person shall have become a party to this Award
Agreement and have agreed in writing to be joined herein and be bound by the terms hereof.

     18. Choice of Law; Jurisdiction; Waiver of Jury Trial. This Award Agreement shall be
governed by the laws of the State of Delaware, excluding any conflicts or choice of law rule or
principle that might otherwise refer construction or interpretation of the Plan to the substantive
law of another jurisdiction.

     SUBJECT TO THE TERMS OF THIS AWARD AGREEMENT, THE PARTIES AGREE THAT ANY AND ALL ACTIONS
ARISING UNDER OR IN RESPECT OF THIS AWARD AGREEMENT SHALL BE LITIGATED IN THE FEDERAL OR STATE
COURTS IN DELAWARE. BY EXECUTING AND DELIVERING THIS AWARD AGREEMENT, EACH PARTY IRREVOCABLY
SUBMITS TO THE PERSONAL JURISDICTION OF SUCH COURTS FOR ITSELF, HIMSELF OR HERSELF AND IN RESPECT
OF ITS, HIS OR HER PROPERTY WITH RESPECT TO SUCH ACTION. EACH PARTY AGREES THAT VENUE WOULD BE
PROPER IN ANY OF SUCH COURTS, AND HEREBY WAIVES ANY OBJECTION THAT ANY SUCH COURT IS AN IMPROPER OR
INCONVENIENT FORUM FOR THE RESOLUTION OF ANY SUCH ACTION.

     EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

     19. Option Subject to Plan. By entering into this Award Agreement the Participant
agrees and acknowledges that the Participant has received and read a copy of the Plan. The Option
is subject to the Plan. The terms and provisions of the Plan as it may be amended

6

 

from time to time are hereby incorporated herein by reference. In the event of a conflict
between any term or provision contained herein and a term or provision of the Plan, the applicable
terms and provisions of the Plan will govern and prevail.

     20. Severability. The provisions of this Award Agreement are severable and if any one
or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part,
the remaining provisions shall nevertheless be binding and enforceable.

     21. Signature in Counterparts. This Award Agreement may be signed in counterparts,
each of which shall be an original, with the same effect as if the signatures thereto and hereto
were upon the same instrument.

* * *

7

 

     IN WITNESS WHEREOF, the parties hereto have executed this Nonqualified Stock Option Award
Agreement as of the date first written above.

	 	 	 	 	 
	 	Archipelago Learning, Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title 	 
	 

Agreed and acknowledged as

of the date first above written:

	 	 	 
	 
	 
[Participant]

	 	  

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}]]