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  Exhibit 10.13    
    

 
 

  DIRECTOR UNIT SUBSCRIPTION AGREEMENT    
    

(Preferred
Units, Class A Units and Class E Units) 

        THIS
DIRECTOR UNIT SUBSCRIPTION AGREEMENT (this "Agreement") is made as of  [            ], 2008,
between NMH Investment, LLC, a Delaware limited liability company (the
"Company") and [            ] (the
"Director"). 

        WHEREAS,
on the terms and subject to the conditions hereof, Director desires to subscribe for and the Company desires to issue and sell to Director, the Company's Participating Preferred
Units (the "Preferred Units"), Class A Common Units (the "Class A Units") and
Class E Common Units (the "Class E Units", and together with the Preferred Units and the Class A Units, the
"Units"), in each case in the amounts set forth on Schedule I, as hereinafter set forth; and 

        WHEREAS,
this Agreement is one of several agreements entered into or being entered into by the Company with certain persons who are or will be key employees and/or directors of the
Company or one or more of its subsidiaries as part of an equity purchase plan designed to comply with Rule 701 promulgated under the Securities Act (as defined below); 

        NOW,
THEREFORE, in order to implement the foregoing and in consideration of the mutual representations, warranties, covenants and agreements contained herein, the parties hereto agree as
follows: 

1.    Definitions.    

        1.1    Agreement.    The term "Agreement" shall have the meaning set forth in the preface. 

        1.2    Applicable Percentage.    The term "Applicable Percentage" shall mean, with respect to Director's
Class E Units, the percentage set forth in the applicable table under the heading "Applicable Percentage," as more specifically determined in accordance with the schedule set forth as
Exhibit 1.2, attached hereto and incorporated herein by this reference. 

        1.3    Board.    The "Board" shall mean the Company's Management Committee. 

        1.4    Cause.    The term "Cause" shall mean a termination of Director's service as a member of the Board due to
(i) the commission by Director of an act of fraud or embezzlement, (ii) the indictment or conviction of Director for (x) a felony or (y) a crime involving moral turpitude
or a plea by Director of guilty or nolo contendere involving such a crime (to the extent it gives rise to an adverse effect on the business or reputation of the Company or any of its subsidiaries),
(iii) the willful misconduct by Director in the performance of Director's duties, including any willful misrepresentation or willful concealment by Director on any report submitted to the
Company (or any of its securityholders or subsidiaries) which is not of a de minimis nature, (iv) the willful failure of Director to render services to the Company or any of its subsidiaries in
accordance with Director's service which failure amounts to a material neglect of Director's duties to the Company or any of its subsidiaries or (v) the material breach by Director of any of
the provisions of any agreement between Director, on the one hand, and the Company or a securityholder or an affiliate of the Company, on the other hand. 

        1.5    Closing.    The term "Closing" shall have the meaning set forth in Section 2.2. 

        1.6    Closing Date.    The term "Closing Date" shall have the meaning set forth in Section 2.2. 

        1.7    Company.    The term "Company" shall have the meaning set forth in the preface. 

        1.8    Cost.    The term "Cost" shall mean the price per Unit paid by Director as proportionately adjusted for all
subsequent distributions of Units and other recapitalizations and less the amount of any distributions made with respect to the Units pursuant to Section 4.4 of the LLC Agreement (other
than tax distributions pursuant to Section 4.4(j) of the LLC Agreement). 

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        1.9    Disability.    The term "Disability" of Director shall mean the inability of Director to perform the essential
functions of Director's job, with or without reasonable accommodation, by reason of a physical or mental infirmity, for a continuous period of six months. The period of six months shall be deemed
continuous unless Director returns to work for at least 30 consecutive business days during such period and performs during such period at the level and competence that existed prior to the beginning
of the six-month period. The date of such Disability shall be on the first day of such six-month period. 

        1.10    Director.    The term "Director" shall have the meaning set forth in the preface. 

        1.11    Director Group.    The term "Director Group" shall have the meaning set forth in Section 4.1(a). 

        1.12    Fair Market Value.    The term "Fair Market Value" used in connection with the value of Units shall mean the
average of the closing prices of the sales of the Company's Units on all securities exchanges on which the Units may at the time be listed, or, if there have been no sales on any such exchange on any
day, the average of the highest bid and lowest asked prices on all such exchanges at the end of such day or, if on any day the Units are not so listed, the average of the representative bid and asked
prices quoted in the NASDAQ System as of 4:00 P.M., New York time, or, if on any day the Units are not quoted in the NASDAQ System, the average of the highest bid and lowest asked prices on
such day in the domestic over-the-counter market as reported by the National Quotation Bureau Incorporated or any similar successor organization, in each such case averaged
over a period of 21 days consisting of the day as of which the Fair Market Value is being determined and the 20 consecutive business days prior to such day. If at any time the Units are not
listed on any securities exchange or quoted in the NASDAQ System or the over-the-counter market, the Fair Market Value shall be the fair value of the Units determined in good
faith by the Board using its reasonable business judgment (valuing the Company and its subsidiaries as a going concern; disregarding any discount for minority interest or marketability of the Units,
whether due to transfer restrictions or the lack of a public market for the Units; taking into account the Preferred Priority Return (as defined in the LLC Agreement); without taking into
account the effect of any
contemporaneous repurchase of Units at less than Fair Market Value under Section 4) after consultation with an independent appraiser, accountant or investment banking firm (the
"Valuation Expert"); provided that (i) the Board shall only be obligated to consult a Valuation Expert once annually absent special circumstances
(as determined in good faith by the Board) and (ii) if Director disagrees in good faith with the Board's determination and such dispute involves an amount in excess of $250,000, Director shall
notify the Company in writing of such disagreement within ten (10) business days of receipt of the Board's determination of the fair market value of such Units, in which event a second
Valuation Expert (the "Arbiter") selected by mutual agreement of Director and the Board shall make a determination of the fair market value thereof
(valuing the Company and its subsidiaries as set forth above) solely by (i) reviewing a single written presentation timely made by each of the Company and Director setting forth their
respective resolutions of the dispute and the bases therefor and (ii) accepting either Director's or the Company's proposed resolution of the dispute. For the avoidance of doubt, the
determination of Fair Market Value of any Unit shall be based on the amounts distributable in respect of such Unit under the terms of the LLC Agreement, including any adjustments necessary to
reflect the portion of any tax distributions that were previously made in respect of such Unit but not charged against other distributions in respect of such Unit. 

        Within
five (5) business days after the Company's receipt of Director's written notice of disagreement, the Company shall make available to Director all data (including reports of
employees and outside advisors) relied upon by the Board in making its determination. Director's and the Company's written presentations must be submitted to the Arbiter within 30 days of the
Arbiter's engagement, written notice of which shall be delivered by the Company to Director. The Arbiter shall notify Director and the Company of its decision within 40 days of its engagement.
If Director's 

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proposed
resolution is accepted, the Company also shall pay all of Director's reasonable out-of-pocket fees and expenses (including reasonable fees and expenses of counsel and
one Valuation Expert) incurred in connection with the arbitration. Each of the Company and Director agrees to execute, if requested by the Arbiter, a reasonable engagement letter with the Arbiter. 

        1.13    Financing Default.    The term "Financing Default" shall mean an event which would constitute (or with notice
or lapse of time or both would constitute) an event of default under any of the following as they may be amended from time to time: (i) the Credit Agreement dated as of June 29, 2006
among National Mentor Holdings, Inc. ("NMH"), NMH Holdings, LLC, the lenders party thereto and JPMorgan Chase Bank, N.A. as sole
administrative agent for such lenders, as amended, and the Indenture, dated as June 29, 2006, among NMH, the Guarantors (as defined in the Indenture), and U.S. Bank National Association, as
trustee, as amended, and the Senior Subordinated Notes issued by NMH pursuant to the Indenture (collectively, the "Financing Agreements"), and any
extensions, renewals, refinancings or refundings thereof in whole or in part; (ii) any other agreement under which an amount of indebtedness of the Company or any of its subsidiaries in excess
of $5,000,000 is outstanding as of the time of the aforementioned event, and any extensions, renewals, refinancings or refundings thereof in whole or in part; (iii) restrictive financial
covenants contained in the LLC Agreement of the Company or NMH's organizational documents; (iv) any amendment of, supplement to or other modification of any of the instruments referred
to in clauses (i) through (iii) above; and (v) any of the securities issued pursuant to or whose terms are governed by the terms of any of the agreements set forth in
clauses (i) through (iv) above, and any extensions, renewals, refinancings or refundings thereof in whole or in part. 

        1.14    LLC Agreement.    The term "LLC Agreement" means the Third Amended and Restated Limited Liability Company
Agreement, dated as of July 31, 2008, by and among the Company, Vestar and the other Members of the Company a party thereto, as amended from time to time in accordance with the provisions
thereof. 

        1.15    Permitted Transferee.    The term "Permitted Transferee" means any transferee of Units pursuant to
clauses (f) or (g) of the definition of "Exempt Employee Transfer" as defined in the Securityholders Agreement. 

        1.16    Person.    The term "Person" shall mean any individual, corporation, partnership, limited liability company,
trust, joint stock company, business trust, unincorporated association, joint venture, governmental authority or other entity of any nature whatsoever. 

        1.17    Public Offering.    The term "Public Offering" shall have the meaning set forth in the Securityholders
Agreement. 

        1.18    Preferred Units.    The term "Preferred Units" shall have the meaning set forth in the recitals. 

        1.19    Purchase Price.    The term "Purchase Price" shall have the meaning set forth in Section 2.1. 

        1.20    Sale of the Company.    The term "Sale of the Company" shall have the meaning set forth in the Securityholders
Agreement, except that transactions with a Person or Persons that are a wholly owned Subsidiary (as defined in the Securityholders Agreement) of Vestar and/or Vestar/NMH Investors, LLC or NMH
Investment, LLC shall be excluded. 

        1.21    Securities Act.    The term "Securities Act" shall mean the Securities Act of 1933, as amended, and all rules
and regulations promulgated thereunder, as the same may be amended from time to time. 

        1.22    Securityholders Agreement.    The term "Securityholders Agreement" shall mean the Securityholders Agreement
dated as of June 29, 2006 among Vestar, the Management Investors and the Company, as it may be amended or supplemented thereafter from time to time. For purposes of the Securityholders
Agreement, the Units are "Employee Securities," as that term is defined in the Securityholders Agreement. 

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        1.23    Termination Date.    The term "Termination Date" means the date upon which Director's service as a member of
the Board is terminated. 

        1.24    Vestar.    The term "Vestar" means Vestar Capital Partners V, L.P., a Cayman Islands exempted limited
partnership. 

2.    Subscription for and Purchase of Units.    

        2.1    Purchase of Units.    Pursuant to the terms and subject to the conditions set forth in this Agreement, Director
hereby subscribes for and agrees to purchase, and the Company hereby agrees to issue and sell to Director, on the Closing Date the number of Preferred Units, Class A Units and Class E
Units set forth in Schedule I attached hereto at the applicable prices per unit and for the aggregate amounts (the "Purchase Price") set forth in
Schedule I attached hereto. 

        2.2    The Closing.    The closing (the "Closing") of the purchase of
Units hereunder shall take place simultaneously with the execution hereof (the "Closing Date"). At the Closing, Director shall deliver to the Company
(i) the Purchase Price, payable by delivery of the amount in cash set forth on Schedule I attached hereto, by delivery of a cashier's or certified check or by wire transfer in
immediately available funds and (ii) a writing satisfactory to the Company and executed by Director that evidences Director's acceptance and adoption of all of the terms and provisions of each
of the LLC Agreement and the Securityholders Agreement. 

        2.3    Section 83(b) Election.    Within 10 days after the Closing, Director shall provide the Company
with a completed election under Section 83(b) of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder in the form of Exhibit A attached hereto. The
Company shall timely file (via certified mail, return receipt requested) such election with the Internal Revenue Service ("IRS"), and shall
provide Director with proof of such timely filing. 

        2.4    Closing Conditions.    Notwithstanding anything in this Agreement to the contrary, the Company shall be under
no obligation to issue and sell to Director any Units unless (i) Director is a member of the Board on the Closing Date; (ii) the representations of Director contained in Section 3
hereof are true and correct in all material respects as of the Closing Date and (iii) Director is not in breach of any agreement, obligation or covenant herein required to be performed or
observed by Director on or prior to the Closing Date. 

3.    Investment Representations and Covenants of Director.    

        3.1    Units Unregistered.    Director acknowledges and represents that Director has been advised by the Company that: 

        (a)   the
offer and sale of the Units have not been registered under the Securities Act; 

        (b)   the
Units must be held indefinitely and Director must continue to bear the economic risk of the investment in the Units unless the offer and sale of such Units are
subsequently registered under the Securities Act and all applicable state securities laws or an exemption from such registration is available; 

        (c)   there
is no established market for the Units and it is not anticipated that there will be any public market for the Units in the foreseeable future; 

        (d)   a
notation shall be made in the appropriate records of the Company indicating that the Units are subject to restrictions on transfer and, if the Company should at some
time in the future engage the services of a securities transfer agent, appropriate stop-transfer instructions will be issued to such transfer agent with respect to the Units. 

        3.2    Additional Investment Representations.    Director represents and warrants that: 

        (a)   Director's
financial situation is such that Director can afford to bear the economic risk of holding the Units for an indefinite period of time, has adequate means for
providing for Director's 

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current
needs and contingencies, and can afford to suffer a complete loss of Director's investment in the Units; 

        (b)   Director's
knowledge and experience in financial and business matters are such that Director is capable of evaluating the merits and risks of the investment in the
Units; 

        (c)   Director
understands that the Units are a speculative investment which involves a high degree of risk of loss of Director's investment therein, there are substantial
restrictions on the transferability of the Units and, on the Closing Date and for an indefinite period following the Closing, there will be no public market for the Units and, accordingly, it may not
be possible for Director to liquidate Director's investment in case of emergency, if at all; 

        (d)   the
terms of this Agreement provide that if Director ceases to be a member of the Board, the Company and its affiliates have the right to repurchase the Units at a price
which may, under certain circumstances, be less than the Fair Market Value thereof; 

        (e)   Director
understands and has taken cognizance of all the risk factors related to the purchase of the Units and, other than as set forth in this Agreement, no
representations or warranties have been made to Director or Director's representatives concerning the Units or the Company or their prospects or other matters; 

        (f)    Director
has been given the opportunity to examine all documents and to ask questions of, and to receive answers from, the Company and its representatives concerning the
Company and its subsidiaries, the Securityholders Agreement, the Company's organizational documents and the terms and conditions of the purchase of the Units and to obtain any additional information
which Director deems necessary; 

        (g)   all
information which Director has provided to the Company and the Company's representatives concerning Director and Director's financial position is complete and
correct as of the date of this Agreement; 

        (h)   Director
is an "accredited investor" within the meaning of Rule 501(a) under the Securities Act. 

4.    Certain Sales and Forfeitures Upon Termination of Employment.    

        4.1    Put Option.    

        (a)   If
Director's service as a member of the Board terminates due to the Disability or death of Director prior to the earlier of (i) a Public Offering or
(ii) a Sale of the Company, Director and Director's Permitted Transferees (hereinafter sometimes collectively referred to as the "Director
Group") shall have the right, subject to the provisions of Section 5 hereof, for 90 days following the date that is six (6) months after the date of such
termination of employment of Director, to sell to the Company, and the Company shall be required to purchase (subject to the provisions of Section 5 hereof), on one
occasion from each member of Director Group, all (but not less than all) of the number of Units then held by Director Group that equals the sum of (i) the total number of Class A Units
collectively held by Director Group, at a price per Unit equal to the applicable purchase price determined pursuant to Section 4.1(c), (ii) the total number of Preferred Units
collectively held by Director Group, at a price per Unit equal to the applicable purchase price determined pursuant to Section 4.1(c) and (iii) the product of (x) the total number
of Class E Units collectively held by Director Group and (y) the Applicable Percentage (measured as of the Termination Date), at a price per Unit equal to the applicable purchase price
determined pursuant to Section 4.1(c). In order to exercise its rights with respect to the Units pursuant to this Section 4.1(a), Director Group shall also be required to simultaneously
exercise any similar rights it may have with respect to any other units of the Company held by Director Group in accordance with the terms of the agreements pursuant to which such other units were
purchased from the Company. 

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        (b)   If
Director Group desires to exercise its option to require the Company to repurchase Units pursuant to Section 4.1(a), the members of Director Group shall send
one written notice to the Company setting forth such members' intention to collectively sell all of their Units pursuant to Section 4.1(a), which notice shall include the signature of each
member of Director Group. Subject to the provisions of Section 5.1, the closing of the purchase shall take place at the principal office of the Company on a date specified by the Company no
later than the 60th day after the giving of such notice. 

        (c)   In
the event of a purchase by the Company pursuant to Section 4.1(a), the purchase price of any Unit subject to purchase under Section 4.1(a) shall be Fair
Market Value (measured as of the purchase date); provided that in any case the Board shall have the right, in its sole discretion, to increase any of the foregoing purchase prices. 

4.2    Call Options.    

        (a)   If
Director's service as a member of the Board terminates for any of the reasons set forth in clauses (i), (ii) or (iii) below prior to a Sale of
the Company, the Company shall have the right and option to purchase for a period of 90 days following the Termination Date, and each member of Director Group shall be required to sell to the
Company, any or all of such Units then held by such member of Director Group (it being understood that if Units of any class subject to repurchase hereunder may be repurchased at different prices, the
Company may elect to repurchase only the portion of the Units of such class subject to repurchase hereunder at the lower price), at a price per unit equal to the applicable purchase price determined
pursuant to Section 4.2(c): 

        (i)    if
Director's service as a member of the Board is terminated due to the Disability or death of Director; 

        (ii)   if
Director's service as a member of the Board is terminated by the Company and its subsidiaries without Cause or by Director for any reason when none of the
circumstances set forth in clauses (i) and (iii) apply; 

        (iii)  if
Director's service as a member of the Board is terminated by the Company or any of its subsidiaries for Cause. 

        (b)   If
the Company desires to exercise one of its options to purchase Units pursuant to this Section 4.2, the Company shall, not later than 90 days after the
Termination Date, send written notice to each member of Director Group of its intention to purchase Units, specifying the number of Units to be purchased (the "Call
Notice"). Subject to the provisions of Section 5, the closing of the purchase shall take place at the principal office of the Company on a date specified by the Company
no later than the 30th day after the giving of the later of the Call Notice. 

        (c)   In
the event of a purchase by the Company pursuant to Section 4.2(a), the purchase price shall be: 

        (i)    with
respect to a purchase of all Units, in the case of a termination of Director's service as a member of the Board described in Section 4.2(a)(iii), a price per
Unit equal to the lesser of (A) Fair Market Value (measured as of the Termination Date) and (B) Cost; 

        (ii)   with
respect to a purchase of Preferred Units or Class A Units, in the case of a termination of Director's service as a member of the Board described in
Sections 4.2(a)(i) or Section 4.2(a)(ii), a price per Unit equal to Fair Market Value (measured as of the Termination Date); and 

        (iii)  with
respect to a purchase of Class E Units, in the case of a termination of Director's service as a member of the Board described in Section 4.2(a)(i)
or Section 4.2(a)(ii), with respect to the number of Units being purchased which is the product 

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of
(x) the total number of Units being purchased and (y) the Applicable Percentage (measured as of the Termination Date), a price per Unit equal to Fair Market Value (measured as of the
Termination Date), and (if the Applicable Percentage (measured as of the Termination Date) is less than 100%) the purchase price with respect to the remaining Units being sold shall be a price per
Unit equal to the lesser of (A) Fair Market Value (measured as of the Termination Date) and (B) Cost; 

provided that in any case the Board shall have the right, in its sole discretion, to increase any purchase price set forth above. 

        4.3    Obligation to Sell Several.    If there is more than one member of Director Group, the failure of any one
member thereof to perform its obligations hereunder shall not excuse or affect the obligations of any other member thereof, and the closing of the purchases from such other members by the Company
shall not excuse, or constitute a waiver of its rights against, the defaulting member. 

5.    Certain Limitations on the Company's Obligations to Purchase Units.    

        5.1    Deferral of Purchases.    

        (a)   Notwithstanding
anything to the contrary contained herein, the Company shall not be obligated to purchase any Units at any time pursuant to Section 4, regardless
of whether it has delivered a notice of its election to purchase any such Units, (i) to the extent that the purchase of such Units or the payment to the Company or one of its subsidiaries of a
cash dividend or distribution by a subsidiary of the Company to fund such purchase (together with any other purchases of Units pursuant to Section 4 or pursuant to similar provisions in
agreements with other employees of the Company and its subsidiaries of which the Company has at such time been given or has given notice and together with cash dividends and distributions to fund such
other purchases) would result (A) in a violation of any law, statute, rule, regulation, policy, order, writ, injunction, decree or judgment promulgated or entered by any federal, state, local
or foreign court or governmental authority applicable to the Company or any of its subsidiaries or any of its or their property, (B) after giving effect thereto, in a Financing Default or
(C) adverse accounting treatment for the Company, or (ii) if immediately prior to such purchase there exists a Financing Default which prohibits such purchase, dividend or distribution.
The Company shall within fifteen days of learning of any such fact so notify the members of Director Group that it is not obligated to purchase units hereunder. 

        (b)   Notwithstanding
anything to the contrary contained in Section 4, any Units which a member of Director Group has elected to sell to the Company or which the
Company has elected to purchase from members of Director Group, but which in accordance with Section 5.1(a) are not purchased at the applicable time provided in Section 4, shall be
purchased by the Company for the applicable purchase price, together with interest thereon at the Applicable Federal Rate as in effect on the date such purchase is so deferred on or prior to the
fifteenth day after such date or dates that (after taking into account any purchases (and related dividends and distributions) to be made at such time pursuant to agreements with other employees of
the Company and its subsidiaries) the purchase of such Units (and related dividends and distributions) are no longer prohibited under Section 5.1(a), and the Company shall give the members of
Director Group five days prior notice of any such purchase. 

        5.2    Payment for Units.    If at any time the Company elects or is required to purchase any Units pursuant to
Section 4, the Company shall pay the purchase price for the Units it purchases (i) first, by the cancellation of any indebtedness, if any, owing from Director to the Company or any of
its subsidiaries (which indebtedness shall be applied pro rata against the proceeds receivable by each member of Director Group receiving consideration in such repurchase) and (ii) then, by the
Company's delivery of a check or wire transfer of immediately available funds for the remainder of the purchase price, if any, against delivery of the certificates or other instruments representing
the Units so 

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purchased,
duly endorsed; provided that if any of the conditions set forth in Section 5.1(a) exists which prohibits such cash payment (either directly or indirectly as a result of the
prohibition of a related cash dividend or distribution), the portion of the cash payment so prohibited may be made, to the extent such payment is not prohibited, by the Company's delivery of a junior
subordinated promissory note (which shall be subordinated and subject in right of payment to the prior payment of any debt outstanding under the Financing Agreements and any modifications, renewals,
extensions, replacements and refunding of all such indebtedness) of the Company (a "Junior Subordinated Note") in a principal amount equal to the
balance of the purchase price, payable (x) in the event of a termination of employment referenced in Section 4.2(a)(i) and (ii), as soon as the conditions set forth in
Section 5.1(a) no longer exist or (x) in the event of a termination of Director's service as a member of the Board referenced in Section 4.2(a)(iii), on the fifth anniversary of
the issuance thereof, and bearing interest payable annually at the Applicable Federal Rate on the date of issuance; provided further that if any of the conditions set forth in Section 5.1(a)
exists which prohibits such payment (or the payment described in the next proviso) by delivery of a Junior Subordinated Note, the portion of the payment so prohibited may be made, to the extent such
payment is not prohibited, by the Company's delivery of preferred units of the Company having an aggregate liquidation preference equal to the balance of the purchase price; provided further that in
the case of a purchase pursuant to Section 4.2(a)(iii) the Company may elect at any time to deliver a Junior Subordinated Note in a principal amount equal to all or a portion of the cash
purchase price (in lieu of paying such portion of the purchase price in cash), which Junior Subordinated Note shall mature on the fifth anniversary of its issuance and accrue interest annually at the
Applicable Federal Rate on the date of issuance, which interest shall be payable at maturity. The Company shall use its reasonable efforts to repurchase Units pursuant to Section 4.1(a) or
Section 4.2(a)(i) or Section 4.2(a)(ii) with cash and/or to prepay any Junior Subordinated Notes or redeem any preferred units issued in connection with a repurchase of Units pursuant to
Section 4.1(a) or Section 4.2(a)(i) or Section 4.2(a)(ii). The Company shall have the right set forth in clause (i) of the first sentence of this Section 5.2 whether
or not the member of Director Group selling such units is an obligor of the Company. Any Junior Subordinated Note (or preferred units issued in lieu thereof) shall become prepayable (or redeemable)
upon a Sale of the Company from net cash proceeds, if any, payable to the Company or its unitholders; to the extent that sufficient net cash proceeds are not so payable, the Junior Subordinated Note
(or preferred units issued in lieu thereof) shall be cancelled in exchange for such other non-cash consideration received by unitholders in the Sale of the Company having a fair market
value equal to the principal of and accrued interest on the note. Any Junior Subordinated Note (or preferred units issued in lieu thereof) also shall become prepayable upon the consummation of an
initial Public Offering. The principal of and accrued interest on any such note may be prepaid (and preferred units issued in lieu thereof may be redeemed) in whole or in part at any time at the
option of the Company. If interest (or cash dividends) is required to be paid on any Junior Subordinated Note (or preferred units issued in lieu thereof) prior to maturity and any of the conditions
set forth in Section 5.1(a) exists or if any such cash payment would result in adverse accounting treatment for the Company which prohibits the payment of such interest (or dividends) in cash,
such interest may be cumulated and accrued until and to the extent that such prohibition no longer exists. 

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6.    Miscellaneous.    

        6.1    Transfers to Permitted Transferees.    Prior to the transfer of Units to a Permitted Transferee (other than a
transfer subsequent to a Sale of the Company), Director shall deliver to the Company a written agreement of the proposed transferee (a) evidencing such Person's undertaking to be bound by the
terms of this Agreement and (b) acknowledging that the Units transferred to such Person will continue to be Units for purposes of this Agreement in the hands of such Person. Any transfer or
attempted transfer of Units in violation of any provision of this Agreement or the Securityholders Agreement shall be void, and the Company shall not record such transfer on its books or treat any
purported transferee of such Units as the owner of such Units for any purpose. 

        6.2    Recapitalizations, Exchanges, Etc., Affecting Units.    The provisions of this Agreement shall apply, to the
full extent set forth herein with respect to Units, to any and all securities of the Company or any successor or assign of the Company (whether by merger, consolidation, sale of assets or otherwise)
which may be issued in respect of, in exchange for, or in substitution of the Units, by reason of any dividend payable in units, issuance of units, combination, recapitalization, reclassification,
merger, consolidation or otherwise. 

        6.3    Director's Employment by the Company.    Nothing contained in this Agreement shall be deemed to
(i) obligate the Company or any subsidiary of the Company to employ Director in any capacity whatsoever or to prohibit or restrict the Company (or any such subsidiary) from terminating the
employment of Director at any time or for any reason whatsoever, with or without Cause, or (ii) require Director to remain a member of the Board. 

        6.4    Cooperation.    Director agrees to cooperate with the Company in taking action reasonably necessary to
consummate the transactions contemplated by this Agreement. 

        6.5    Binding Effect.    The provisions of this Agreement shall be binding upon and accrue to the benefit of the
parties hereto and their respective heirs, legal representatives, successors and assigns; provided, however, that no Transferee shall derive any rights under this Agreement unless and until such
Transferee has executed and delivered to the Company a valid undertaking and becomes bound by the terms of this Agreement; and provided further that Vestar is a third party beneficiary of this
Agreement and shall have the right to enforce the provisions hereof. 

        6.6    Amendment; Waiver.    This Agreement may be amended only by a written instrument signed by the parties hereto.
No waiver by any party hereto of any of the provisions hereof shall be effective unless set forth in a writing executed by the party so waiving. 

        6.7    Governing Law.    This Agreement shall be governed by and construed and enforced in accordance with the laws of
the State of Delaware applicable to contracts made and to be performed therein. 

        6.8    Jurisdiction.    Any suit, action or proceeding with respect to this Agreement, or any judgment entered by any
court in respect of any thereof, shall be brought in any court of competent jurisdiction in the State of Delaware, and each of the Company and the members of Director Group hereby submits to the
exclusive jurisdiction of such courts for the purpose of any such suit, action, proceeding or judgment. Each of the members of Director Group and the Company hereby irrevocably waives (i) any
objections which it may now or hereafter have to the laying of the venue of any suit, action or proceeding arising out of or relating to this Agreement brought in any court of competent jurisdiction
in the State of Delaware, (ii) any claim that any such suit, action or proceeding brought in any such court has been brought in any inconvenient forum and (iii) any right to a jury
trial. 

        6.9    Notices.    All notices and other communications hereunder shall be in writing and shall be deemed to have been
duly given when personally delivered, telecopied (with confirmation of receipt), one day after deposit with a reputable overnight delivery service (charges prepaid) and three days after 

9

 

deposit
in the U.S. Mail (postage prepaid and return receipt requested) to the address set forth below or such other address as the recipient party has previously delivered notice to the sending
party. 

(a)    If
to the Company: 

NMH
Investment, LLC

c/o Vestar Capital Partners

245 Park Avenue, 41st Floor 

New York, NY 10167 

Attn: General Counsel 

Telecopy: (212) 808-4922 

with
copies to: 

National
Mentor Holdings, Inc. 

313 Congress Street 

6th Floor 

Boston, Massachusetts 02210 

Attn: Linda DeRenzo 

Telecopy: (617) 790-4271 

and

Kirkland &
Ellis LLP 

200 East Randolph Drive 

Chicago, IL 60601 

Attn:  Sanford E. Perl 

            Mark A. Fennell 

Telecopy: (312) 861-2200 

        (b)   If
to Director, to the address as shown on the unit register of the Company. 

        6.10    Integration.    This Agreement and the documents referred to herein or delivered pursuant hereto which
form a part hereof contain the entire understanding of the parties with respect to the subject matter hereof and thereof. There are no restrictions, agreements, promises, representations,
warranties, covenants or undertakings with respect to the subject matter hereof other than those expressly set forth herein and therein. This Agreement supersedes all prior agreements and
understandings between the parties with respect to such subject matter. 

        6.11    Counterparts.    This Agreement may be executed in separate counterparts, and by different parties on separate
counterparts each of which shall be deemed an original, but all of which shall constitute one and the same instrument. 

        6.12    Injunctive Relief.    Director and Director's Permitted Transferees each acknowledges and agrees that a
violation of any of the terms of this Agreement will cause the Company irreparable injury for which
adequate remedy at law is not available. Accordingly, it is agreed that the Company shall be entitled to an injunction, restraining order or other equitable relief to prevent breaches of the
provisions of this Agreement and to enforce specifically the terms and provisions hereof in any court of competent jurisdiction in the United States or any state thereof, in addition to any other
remedy to which it may be entitled at law or equity. 

        6.13    Rights Cumulative; Waiver.    The rights and remedies of Director and the Company under this Agreement shall
be cumulative and not exclusive of any rights or remedies which each would otherwise have hereunder or at law or in equity or by statute, and no failure or delay by any party in exercising any right
or remedy shall impair any such right or remedy or operate as a waiver of such right or remedy, nor shall any single or partial exercise of any power or right preclude such party's 

10

 

other
or further exercise or the exercise of any other power or right. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a waiver of
any preceding or succeeding breach and no failure by any party to exercise any right or privilege hereunder shall be deemed a waiver of such party's rights or privileges hereunder or shall be deemed a
waiver of such party's rights to exercise the same at any subsequent time or times hereunder. 

*    *    *    *    *

11

 

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

					
	

 	
 	
NMH INVESTMENT, LLC,

a Delaware limited liability company
	

 	
 	
By:	
 	
 

 
	 	 	 	 	Name:
	 	 	 	 	Title:
	

 	
 	
By:	
 	
  

 
	 	 	 	 	[            ]

SCHEDULE
I 

								
	Purchased Units

 
	 	Number 	 	Price per Unit 	 	Aggregate Amount 
	 Preferred Units:
	 	[        ]	 	[        ]	 	[        ]
	 Class A Units:
	 	[        ]	 	[        ]	 	[        ]
	 Class E Units:
	 	[        ]	 	[        ]	 	[        ]
	 	 	 	 	 	 	 
	 	 Total
	 	 	 	 	 	[        ]
	 	 	 	 	 	 	 

Exhibit 1.2
to Director Unit Subscription Agreement 

 Class E Units  

        With respect to a purchase of Class E Units pursuant to Section 4.2 in the case of a termination of Director's service as
a member of the Board described in Section 4.2(a)(i) or Section 4.2(a)(ii), the Applicable Percentage shall be determined in accordance with the following table attached to this
Exhibit 1.2 as Annex A based on the Month (as defined below) during which the service of Director is terminated: 

        For
purposes of this Exhibit 1.2, "Month" means (i) in the case of Month 1, the period commencing on  [            ] (the "Measurement
Date") and ending on the calendar day immediately preceding the one-month
anniversary of the Measurement Date, (ii) for Month 2, the period commencing on the one-month anniversary of the Measurement Date and ending on the calendar day immediately
preceding the two-month anniversary of the Measurement Date and (iii) for each other Month, the period determined in the manner in
which Month 2 was determined, substituting the number of the month minus one for "one" in the preceding clause (ii) and substituting the number of the month for "two" in the preceding
clause (ii). 

 
 

  Annex A to Exhibit 1.2    
    

								
	 
	 	Month During Which Service is Terminated 	 	Applicable Percentage 	 
	 
	 	 	1	 	 	0.00	%
	 
	 	 	2	 	 	0.00	%
	 
	 	 	3	 	 	0.00	%
	 
	 	 	4	 	 	0.00	%
	 
	 	 	5	 	 	0.00	%
	 
	 	 	6	 	 	0.00	%
	 
	 	 	7	 	 	0.00	%
	 
	 	 	8	 	 	0.00	%
	 
	 	 	9	 	 	0.00	%
	 
	 	 	10	 	 	0.00	%
	 
	 	 	11	 	 	0.00	%
	 End of 1st year
	 	 	12	 	 	0.00	%
	 
	 	 	13	 	 	20.00	%
	 
	 	 	14	 	 	21.70	%
	 
	 	 	15	 	 	23.40	%
	 
	 	 	16	 	 	25.10	%
	 
	 	 	17	 	 	26.80	%
	 
	 	 	18	 	 	28.50	%
	 
	 	 	19	 	 	30.20	%
	 
	 	 	20	 	 	31.90	%
	 
	 	 	21	 	 	33.60	%
	 
	 	 	22	 	 	35.30	%
	 
	 	 	23	 	 	37.00	%
	 End of 2nd year
	 	 	24	 	 	38.70	%
	 
	 	 	25	 	 	40.40	%
	 
	 	 	26	 	 	42.10	%
	 
	 	 	27	 	 	43.80	%
	 
	 	 	28	 	 	45.50	%
	 
	 	 	29	 	 	47.20	%
	 
	 	 	30	 	 	48.90	%
	 
	 	 	31	 	 	50.60	%
	 
	 	 	32	 	 	52.30	%
	 
	 	 	33	 	 	54.00	%
	 
	 	 	34	 	 	55.70	%
	 
	 	 	35	 	 	57.40	%
	 End of 3rd year
	 	 	36	 	 	59.10	%
	 
	 	 	37	 	 	60.80	%
	 
	 	 	38	 	 	62.50	%
	 
	 	 	39	 	 	64.20	%
	 
	 	 	40	 	 	65.90	%
	 
	 	 	41	 	 	67.60	%
	 
	 	 	42	 	 	69.30	%
	 
	 	 	43	 	 	71.00	%
	 
	 	 	44	 	 	72.70	%
	 
	 	 	45	 	 	74.40	%
	 
	 	 	46	 	 	76.10	%
	 
	 	 	47	 	 	77.80	%
	 End of 4th year
	 	 	48	 	 	79.50	%
	 
	 	 	49	 	 	81.20	%
	 
	 	 	50	 	 	82.90	%
	 
	 	 	51	 	 	84.60	%
	 
	 	 	52	 	 	86.30	%
	 
	 	 	53	 	 	88.00	%
	 
	 	 	54	 	 	89.70	%
	 
	 	 	55	 	 	91.40	%
	 
	 	 	56	 	 	93.10	%
	 
	 	 	57	 	 	94.80	%
	 
	 	 	58	 	 	96.50	%
	 
	 	 	59	 	 	98.20	%
	 End of 5th year
	 	 	60	 	 	99.90	%
	 
	 	 	61 and thereafter	 	 	100.00	%

QuickLinks

Exhibit 10.13

DIRECTOR UNIT SUBSCRIPTION AGREEMENT

Annex A to Exhibit 1.2QuickLinks
 -- Click here to rapidly navigate through this document
 

 
 

  Exhibit 4.2    
    

 
 

  TELEUNIVERSITY, INC.
  REGISTRATION RIGHTS AGREEMENT    
    

        REGISTRATION RIGHTS AGREEMENT ("Agreement"), dated as of November 26, 2003, among Warburg Pincus Private Equity
VIII, L.P., a Delaware limited partnership, and its successors and assigns ("Warburg Pincus"), the Persons who appear on Schedule I hereto (the "Other Holders", and together with Warburg
Pincus, the "Holders") and TeleUniversity, Inc., a Delaware corporation (d/b/a Chatter Learning) (the "Company"). 

 
 

  R E C I T A L S    
    

        WHEREAS, Warburg Pincus has, pursuant to the terms of the Securities Purchase Agreement, dated as of November 26, 2003, with the
Company (the "Purchase Agreement"), agreed to purchase shares of Series A Convertible Preferred Stock, par value $0.01 per share, of the Company (the "Series A Preferred Stock"); 

        WHEREAS,
the shares of Series A Preferred Stock are convertible into shares of common stock, par value $0.01 per share, of the Company (the "Common Stock"); 

        WHEREAS,
the Other Holders, pursuant to the terms of certain agreements (collectively, the "Prior Agreements") have acquired shares of Common Stock or were granted rights to acquire
shares of Common Stock and were granted certain registration rights with respect to such shares; 

        WHEREAS,
it is a condition to the obligations of Warburg Pincus under the Purchase Agreement that the parties hereto enter into this Agreement in its entirety; and 

        WHEREAS,
the Company and the Holders desire to define the registration rights of the Holders on the terms and subject to the conditions herein set forth. 

        NOW,
THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the parties hereby agree as follows: 

 
 

  SECTION 1. DEFINITIONS    
    

        As used in this Agreement, the following terms have the respective meaning set forth below: 

        
Commission:    shall mean the Securities and Exchange Commission or any other federal agency at the time administering the Securities Act; 

         
Exchange Act:    shall mean the Securities Exchange Act of 1934, as amended; 

         
Initial Public Offering:    shall mean the initial public offering of shares of Common Stock pursuant to a registration under the Securities Act; 

        
Person:    shall mean an individual, partnership, joint-stock company, corporation, trust or unincorporated organization, and a government or agency or political
subdivision thereof; 

         
Register, Registered and Registration:    shall mean a registration effected by preparing and filing a registration statement in compliance with the Securities Act
(and any post-effective amendments filed or required to be filed) and the declaration or ordering of effectiveness of such registration statement; 

        
Registrable Securities:    shall mean (A) shares of Common Stock issuable upon conversion of the shares of Series A Preferred Stock, (B) any
shares of Common Stock acquired by the Holders, other than those acquired upon the exercise of employee stock options, and (C) any stock of the Company 

1

 

issued
as a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares of Series A Preferred Stock or Common Stock referred to in clause (A) or
(B) above; 

        
Registration Expenses:    shall mean all expenses incurred by the Company in compliance with Section 2(A), (B) and (C) hereof, including, without
limitation, all registration and filing fees, printing expenses, fees and disbursements of counsel for the Company, fees and expenses of one counsel for all the Holders in an amount not to exceed
$25,000, blue sky fees and expenses and the expense of any special audits incident to or required by any such registration (but excluding the compensation of regular employees of the Company, which
shall be paid in any event by the Company); 

         
security, securities:    shall have the meaning set forth in Section 2(1) of the Securities Act; 

         
Securities Act:    shall mean the Securities Act of 1933, as amended; and 

        
Selling Expenses:    shall mean all underwriting discounts and selling commissions applicable to the sale of Registrable Securities and all fees and disbursements of
counsel for each of the Holders other than fees and expenses of one counsel for all the Holders in an amount not to exceed $25,000. 

 
 

  SECTION 2. REGISTRATION RIGHTS    
    

        A.    Requested Registration.    

        1.    Request for Registration.    If the Company shall receive from Warburg Pincus, at any time, a written request
that the Company effect any registration with respect to all or a part of the Registrable Securities, the Company will: 

        (a)   promptly
give written notice of the proposed registration, qualification or compliance to all Other Holders; and 

        (b)   as
soon as practicable, use its diligent best efforts to effect such registration (including, without limitation, the execution of an undertaking to file
post-effective amendments, appropriate qualification under applicable blue sky or other state securities laws and appropriate compliance with applicable regulations issued under the
Securities Act) as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Registrable Securities as are specified in such request, together with
all or such portion of the Registrable Securities of any Holder or Holders joining in such request as are specified in a written request received by the Company within 10 business days after written
notice from the Company is given under Section 2(A)(1)(a) above; provided that the Company shall not be obligated to effect, or take any action
to effect, any such registration pursuant to this Section 2(A): 

          (i)  In
any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such registration, qualification
or compliance, unless the Company is
already subject to service in such jurisdiction and except as may be required by the Securities Act or applicable rules or regulations thereunder; 

         (ii)  After
the Company has effected two (2) such registrations pursuant to this Section 2(A) and such registrations have been declared or ordered effective and
the sales of such Registrable Securities shall have closed; 

        (iii)  If
the Registrable Securities requested by all Holders to be registered pursuant to such request do not have an anticipated aggregate public offering price (before any
underwriting discounts and commissions) of not less than $7,500,000 (or $15,000,000 if such requested registration is the Initial Public Offering); 

        (iv)  During
the period starting with the date sixty (60) days prior to the Company's good faith estimate of the date of filing of, and ending on the date one hundred
eighty (180) days 

2

 

immediately
following the effective date of, any registration statement filed pursuant to Section 2(B) pertaining to securities of the Company (other than a registration of securities in a
Rule 145 transaction, with respect to an employee benefit plan), provided that during the 60-day period prior to such filing the Company is actively employing in good faith all
reasonable efforts to cause such registration statement to become effective; provided, however, that the
Company may only delay an offering pursuant to this Section 2(A)(1)(b)(iv) for a period of not more than ninety (90) days, if a filing of any other registration statement is not made
within that period and the Company may only exercise this right once in any twelve (12)-month period; or 

         (v)  If
the Company shall furnish to Warburg Pincus a certificate signed by the President of the Company stating that in the good faith judgment of the Board of Directors it
would be seriously detrimental to the Company or its stockholders for a registration statement to be filed in the near future, in which case the Company's obligation to use its best efforts to comply
with this Section 2 shall be deferred for a period not to exceed one hundred eighty (180) days from the date of receipt of written request from Warburg Pincus;  provided, however, that the Company shall not exercise such right more than once in any twelve
(12)-month period. 

        The
registration statement filed pursuant to the request of Warburg Pincus may, subject to the provisions of Section 2(A)(2) below, include (i) other securities of the
Company which are held by Persons who, by virtue of agreements with the Company, are entitled to include their securities in any such registration ("Other Stockholders") and (ii) Registrable
Securities held by the Other Holders. In the event any Holder requests a registration pursuant to this Section 2(A) in connection with a distribution of Registrable Securities to its partners,
the registration shall provide for the resale by such partners, if requested by such Holder. 

        The
registration rights set forth in this Section 2 may be assigned, in whole or in part, to any transferee of Registrable Securities (who shall be bound by all obligations of
this Agreement). 

        2.    Underwriting.    If Warburg Pincus intends to distribute the Registrable Securities covered by its request by
means of an underwriting, it shall so advise the Company as a part of its request made pursuant to Section 2(A). 

        If
Other Stockholders or Other Holders request inclusion of their securities in the underwriting, Warburg Pincus shall offer to include the securities of such Persons in the underwriting
and may condition such offer on their acceptance of the further applicable provisions of this Section 2. The Holders whose shares are to be included in such registration and the Company shall
(together with all Other Stockholders proposing to distribute their securities through such underwriting) enter into an underwriting agreement in customary form with the representative of the
underwriter or underwriters selected for such underwriting by Warburg Pincus and reasonably acceptable to the Company. Notwithstanding any other provision of this Section 2(A), if the
representative advises the Holders in writing that marketing factors require a limitation on the number of shares to be underwritten, the securities of the Company held by Other Stockholders shall be
excluded from such registration to the extent so required by such limitation. If, after the exclusion of such shares, further reductions are still required, the number of shares included in the
registration by each Other Holder shall be reduced on a pro rata basis (based on the number of shares held by such Other Holder), by such minimum number of shares as is necessary to comply with such
request. If, after the exclusion of such Other Holder shares, further reductions are still required, the number of shares included in the registration by Warburg Pincus shall be reduced, by such
minimum number of shares as is necessary to comply with such request. No Registrable Securities or any other securities excluded from the underwriting by reason of the underwriter's marketing
limitation shall be included in such registration. If any Other Stockholder or Holder who has requested inclusion in such registration as provided above disapproves 

3

 

of
the terms of the underwriting, such Person may elect to withdraw therefrom by written notice to the Company, the underwriter and Warburg Pincus. The securities so withdrawn shall also be withdrawn
from registration. If the underwriter has not limited the number of Registrable Securities or other securities to be underwritten, the Company and officers and directors of the Company may include its
or their securities for its or their own account in such registration if the representative so agrees and if the number of Registrable Securities and other securities which would otherwise have been
included in such registration and underwriting will not thereby be limited. 

        B.    Company Registration.    

        1.     If
the Company shall determine to register any of its equity securities either for its own account or for the account of Other Stockholders, other than a registration
relating solely to employee benefit plans, or a registration relating solely to a Commission Rule 145 transaction, or a registration on any registration form which does not permit secondary
sales or does not include substantially the same information as would be required to be included in a registration statement covering the sale of Registrable Securities, the Company will: 

        (a)   promptly
give to each of the Holders a written notice thereof (which shall include a list of the jurisdictions in which the Company intends to attempt to qualify such
securities under the applicable blue sky or other state securities laws); and 

        (b)   include
in such registration (and any related qualification under blue sky laws or other compliance), and in any underwriting involved therein, all the Registrable
Securities specified in a written request or requests, made by the Holders within 15 days after receipt of the written notice from the Company described in clause (a) above, except as
set forth in Section 2(B)(2) below. Such written request may specify all or a part of the Holders' Registrable Securities. In the event any Holder requests inclusion in a registration pursuant
to this Section 2(B) in connection with a distribution of Registrable Securities to its partners, the registration shall provide for the resale by such partners, if requested by such Holder. 

        2.    Underwriting.    If the registration of which the Company gives notice is for a registered public offering
involving an underwriting, the Company shall so advise each of the Holders as a part of the written notice given pursuant to Section 2(B)(1)(a). In such event, the right of each of the Holders
to registration pursuant to this Section 2(B) shall be conditioned upon such Holders' participation in such underwriting and the inclusion of such Holders' Registrable Securities in the
underwriting to the extent provided herein. The Holders whose shares are to be included in such registration shall (together with the Company and the Other Stockholders distributing their securities
through such underwriting) enter into an underwriting agreement in customary form with the representative of the underwriter or underwriters selected for underwriting by the Company. Notwithstanding
any other provision of this Section 2(B), if the representative determines that marketing factors require a limitation on the number of shares to be underwritten, and (x) if such
registration is the Initial Public Offering, the representative may (subject to the allocation priority set forth below) exclude from such registration and underwriting some or all of the Registrable
Securities which would otherwise be underwritten pursuant hereto, and (y) if such registration is other than the Initial Public Offering, the representative may (subject to the allocation
priority set forth below) limit the number of Registrable Securities to be included in the registration and underwriting to not less than twenty five percent (25%) of the shares included therein
(based on the number of shares). The Company shall so advise all holders of securities requesting registration, and the number of shares of securities that are entitled to be included in the
registration and underwriting shall be allocated in the following manner: the securities of the Company held by officers, directors and Other Stockholders of the Company (other than Registrable
Securities and other than securities held by holders who by contractual right demanded such registration ("Demanding Holders")) shall be excluded from such registration and underwriting to the extent
required by such limitation, and, if a limitation on the number of shares is still required, the number of 

4

 

shares
that may be included in the registration and underwriting by each of the Holders and Demanding Holders shall be reduced, on a pro rata basis (based on the number of shares held by such holder),
by such minimum number of shares as is necessary to comply with such limitation. If any of the participating equity holders of the Company disapprove of the terms of any such underwriting, he may
elect to withdraw therefrom by written notice to the Company and the underwriter. Any Registrable Securities or other securities excluded or withdrawn from such underwriting shall be withdrawn from
such registration. 

        C.    Form S-3.    

        Following
the Initial Public Offering, the Company shall use its best efforts to qualify for registration on Form S-3 for secondary sales. After the Company has
qualified for the use of Form S-3, Warburg Pincus shall have the right to request an unlimited number of registrations on Form S-3 (such requests shall be in
writing and shall state the number of shares of Registrable Securities to be disposed of and the intended method of disposition of shares by such holders), provided that the Company shall not be
obligated to effect, or take any action to effect, any such registration pursuant to this Section 2(C): 

        1.     Unless
the Holder or Holders requesting registration propose to dispose of shares of Registrable Securities having an aggregate price to the public (before deduction of
Selling Expenses) of more than $5,000,000; 

        2.     Within
180 days of the effective date of the most recent registration pursuant to this Section 2(C) in which securities held by the requesting Holder could
have been included for sale or distribution; or 

        3.     In
any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such registration, qualification or
compliance, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act or applicable rules or regulations thereunder. 

        The
Company shall give written notice to all Holders of the receipt of a request for registration pursuant to this Section 2(C) and shall provide a reasonable opportunity for
other Holders to participate in the registration, provided that if the registration is for an underwritten offering, the terms of Section 2(A)(2) shall apply to all participants in such
offering. Subject to the foregoing, the Company will use its best efforts to effect promptly the registration of all shares of Registrable Securities on Form S-3 to the extent
requested by the Holder or Holders thereof for purposes of disposition. In the event any Holder requests a registration pursuant to this Section 2(C) in connection with a distribution of
Registrable Securities to its partners, the registration shall provide for the resale by such partners, if requested by such Holder. 

        D.    Expenses of Registration.    

        All
Registration Expenses incurred in connection with any registration, qualification or compliance pursuant to this Section 2 shall be borne by the Company, and all Selling
Expenses shall be borne by the Holders of the securities so registered pro rata on the basis of the number of their shares so registered. 

        E.    Registration Procedures.    

        In
the case of each registration effected by the Company pursuant to this Section 2, the Company will keep the Holders, as applicable, advised in writing as to the initiation of
each registration and as to the completion thereof. At its expense, the Company will: 

        1.     keep
such registration effective for a period of 120 days or until the Holders (or in the case of a distribution to the partners of such Holder, such partners), as
applicable, have completed the 

5

 

distribution
described in the registration statement relating thereto, whichever first occurs; provided,  however, that (A) such 120-day period shall be extended
for a period of time equal to the period during which the Holders or
partners, as applicable, refrain from selling any securities included in such registration in accordance with provisions in Section 2(l) hereof; and (B) in the case of any registration
of Registrable Securities on Form S-3 which are intended to be offered on a continuous or delayed basis, such 120-day period shall be extended until all such Registrable
Securities are sold, provided that Rule 415, or any successor rule under the Securities Act, permits an offering on a continuous or delayed basis, and provided further that applicable rules
under the Securities Act governing the obligation to file a post-effective amendment permit, in lieu of filing a post-effective amendment which (y) includes any
prospectus required by Section 10(a) of the Securities Act or (z) reflects facts or events representing a material or fundamental change in the information set forth in the registration
statement, the incorporation by reference of information required to be included in (y) and (z) above to be contained in periodic reports filed pursuant to Section 12 or 15(d) of
the Exchange Act in the registration statement; 

        2.     furnish
such number of prospectuses and other documents incident thereto as each of the Holders, as applicable, from time to time may reasonably request; 

        3.     notify
each Holder of Registrable Securities covered by such registration at any time when a prospectus relating thereto is required to be delivered under the Securities
Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing; and 

        4.     furnish,
on the date that such Registrable Securities are delivered to the underwriters for sale, if such securities are being sold through underwriters or, if such
securities are not being sold through underwriters, on the date that the registration statement with respect to such securities becomes effective, (1) an opinion, dated as of such date, of the
counsel representing the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering and reasonably satisfactory to
a majority in interest of the Holders participating in such registration, addressed to the underwriters, if any, and to the Holders participating in such registration and (2) a letter, dated as
of such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an
underwritten public offering and reasonably satisfactory to a majority in interest of the Holders participating in such registration, addressed to the underwriters, if any, and if permitted by
applicable accounting standards, to the Holders participating in such registration. 

        F.    Indemnification.    

        1.     The
Company will indemnify each of the Holders, as applicable, each of its officers, directors and partners, and each Person controlling each of the Holders, with respect
to each registration which has been effected pursuant to this Section 2, and each underwriter, if any, and each person who controls any underwriter, against all claims, losses, damages and
liabilities (or actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any prospectus, offering circular or other
document (including any related registration statement, notification or the like) incident to any such registration, qualification or compliance, or based on any omission (or alleged omission) to
state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or any violation by the Company of the Securities Act or the Exchange Act or any
rule or regulation thereunder applicable to the Company and relating to action or inaction required of the Company in connection with any such registration, qualification or compliance, and will
reimburse each of the Holders, each of its officers, 

6

 

directors
and partners, and each Person controlling each of the Holders, each such underwriter and each Person who controls any such underwriter, for any legal and any other expenses reasonably
incurred in connection with investigating and defending any such claim, loss, damage, liability or action, provided that the Company will not be liable in any such case to the extent that any such
claim, loss, damage, liability or expense arises out of or is based on any untrue statement or omission based upon written information furnished to the Company by the Holders or underwriter and stated
to be specifically for use therein. 

        2.     Each
of the Holders will, if Registrable Securities held by it are included in the securities as to which such registration, qualification or compliance is being
effected, indemnify the Company, each of its directors and officers and each underwriter, if any, of the Company's securities covered by such a registration statement, each person who controls the
Company or such underwriter, each other Holder and Other Stockholder and each of their officers, directors, and partners, and each person controlling such other Holder and Other Stockholder against
all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any such
registration statement, prospectus, offering circular or other document made by such Holder, or any omission (or alleged omission) to state therein a material fact required to be stated therein or
necessary to make the statements by such Holder therein not misleading, and will reimburse the Company and such other Holders and Other Stockholders, directors, officers, partners, persons,
underwriters or control persons for any legal or any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability or action, in each case to
the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement, prospectus, offering circular or
other document in reliance upon and in conformity with written information furnished to the Company by such Holder and stated to be specifically for use therein; provided, however, that the
obligations of each of the Holders hereunder shall be limited to an amount equal to the net proceeds to such Holder of securities sold as contemplated herein. 

        3.     Each
party entitled to indemnification under this Section 2(F) (the "Indemnified Party") shall give notice to the party required to provide indemnification (the
"Indemnifying Party") promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any
such claim or any litigation. resulting therefrom; provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall be
approved by the Indemnified Party (whose approval shall not unreasonably be withheld) and the Indemnified Party may participate in such defense at such party's expense (unless the Indemnified Party
shall have reasonably concluded that there may be a conflict of interest between the Indemnifying Party and the Indemnified Party in such action, in which case the fees and expenses of counsel shall
be at the expense of the Indemnifying Party), and provided further that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its
obligations under this Section 2(F) unless the Indemnifying Party is materially prejudiced thereby. No Indemnifying Party, in the defense of any such claim or litigation shall, except with the
consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party of a release from all liability in respect to such claim or litigation. Each Indemnified Party shall furnish such information regarding itself or the claim in question as an
Indemnifying Party may reasonably request in writing and as shall be reasonably required in connection with the defense of such claim and litigation resulting therefrom. 

        4.     If
the indemnification provided for in this Section 2(F) is held by a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to any
loss, liability, claim, damage or expense referred to herein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party hereunder, shall contribute to the amount paid or payable by
such Indemnified Party as a result 

7

 

of
such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the one hand and of the Indemnified Party on the other
in connection with the statements or omissions which resulted in such loss, liability, claim, damage or expense, as well as any other relevant equitable considerations. The relative fault of the
Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other things, whether the untrue (or alleged untrue) statement of a material fact or the omission (or alleged
omission) to state a material fact relates to information supplied by the Indemnifying Party or by the Indemnified Party and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. 

        5.     Notwithstanding
the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection
with any underwritten public offering contemplated by this Agreement are in conflict with the foregoing provisions, the provisions in such underwriting agreement shall be controlling. 

        6.     The
foregoing indemnity agreement of the Company and Holders is subject to the condition that, insofar as they relate to any loss, claim, liability or damage arising out
of a statement made in or omitted from a preliminary prospectus but eliminated or remedied in the amended prospectus on file with the Commission at the time the registration statement in question
becomes effective or the amended prospectus filed with the Commission pursuant to Commission Rule 424(b) (the "Final Prospectus"), such indemnity or contribution agreement shall not inure to
the benefit of any underwriter or Holder if a copy of the Final Prospectus was furnished to the underwriter and was not furnished to the Person asserting the loss, liability, claim or damage at or
prior to the time such action is required by the Securities Act. 

        G.    Information by the Holders.    

        1.     Each
of the Holders holding securities included in any registration shall furnish to the Company such information regarding such Holder and the distribution proposed by
such Holder as the Company may reasonably request in writing and as shall be reasonably required in connection with any registration, qualification or compliance referred to in this Section 2. 

        2.     In
the event that, either immediately prior to or subsequent to the effectiveness of any registration statement, any Holder shall distribute Registrable Securities to its
partners, such Holder shall so advise the Company and provide such information as shall be necessary to permit an amendment to such registration statement to provide information with respect to such
partners, as selling securityholders. Promptly following receipt of such information, the Company shall file an appropriate amendment to such registration statement reflecting the information so
provided. Any incremental expense to the Company resulting from such amendment shall be borne by such Holder. 

        H.    Rule 144 Reporting.    

        With
a view to making available the benefits of certain rules and regulations of the Commission which may permit the sale of restricted securities to the public without registration, the
Company agrees to: 

        1.     make
and keep public information available as those terms are understood and defined in Rule 144 under the Securities Act ("Rule 144"), at all times from
and after 90 days following the effective date of the first registration under the Securities Act filed by the Company for an offering of its securities to the general public; 

        2.     use
its best efforts to file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act
at any time after it has become subject to such reporting requirements; and 

8

 

        3.     so
long as the Holder owns any Registrable Securities, furnish to the Holder upon request, a written statement by the Company as to its compliance with the reporting
requirements of Rule 144 (at any time from and after 90 days following the effective date of the first registration statement filed by the Company for an offering of its securities to
the general public), and of the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), a copy of the most recent annual or quarterly report of
the Company, and such other reports and documents so filed as the Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing the Holder to sell any such
securities without registration. 

        I.    "Market Stand-off" Agreement.    

        Each
of the Holders agrees, if requested by the Company and an underwriter of equity securities of the Company, not to sell or otherwise transfer or dispose of any Registrable Securities
held by such Holder during the 180-day period following the effective date of a registration statement of the Company filed under the Securities Act, provided that: 

        1.     such
agreement only applies to the Initial Public Offering; and 

        2.     all
officers and directors of the Company enter into similar agreements. 

        If
requested by the underwriters, the Holders shall execute a separate agreement to the foregoing effect. The Company may impose stop-transfer instructions with respect to
the shares (or securities) subject to the foregoing restriction until the end of said 180-day period. The provisions of this Section 2(I) shall be binding upon any transferee who
acquires Registrable Securities. 

        J.    Termination.    

        The
registration rights set forth in this Section 2 shall not be available to any Holder if, (i) in the opinion of counsel to the Company, all of the Registrable Securities
then owned by such Holder could be sold in any 90-day period pursuant to Rule 144 (without giving effect to the provisions
of Rule 144(k)) or (ii) all of the Registrable Securities held by such Holder have been sold in a registration pursuant to the Securities Act or pursuant to Rule 144. 

 
 

  SECTION 3. COVENANTS OF THE PARTIES    
    

        Each of the Other Holders who are parties to the Prior Agreements set forth on Schedule II hereto hereby acknowledges and agrees
that this Agreement constitutes the entire understanding of the parties hereto relating to the subject matter hereof and supersedes all prior understandings relating to such subject matter, including
the Prior Agreements set forth on Schedule II, and that the provisions of such Prior Agreements related to such subject matter and set forth on Schedule II are terminated and all rights
thereunder are waived as of the date hereof, with no further liabilities or obligations relating thereto on the part of any party thereto. 

 
 

  SECTION 4. MISCELLANEOUS    
    

        A.    Directly or Indirectly.    

        Where
any provision in this Agreement refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action
is taken directly or indirectly by such Person. 

        B.    Governing Law.    

        This
Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State. 

9

 

        C.    Section Headings.    

        The
headings of the sections and subsections of this Agreement are inserted for convenience only and shall not be deemed to constitute a part thereof. 

        D.    Notices.    

        1.     All
communications under this Agreement shall be in writing and shall be delivered by hand or facsimile or mailed by overnight courier or by registered or certified mail,
postage prepaid: 

        (a)   if
to Warburg Pincus, at 466 Lexington Avenue, New York, NY 10017 (facsimile: (212) 716-5142), Attention: Ryan Craig, or at such other address or
facsimile number as Warburg Pincus may have furnished the Company in writing, with a copy to Willkie Farr & Gallagher LLP, 787 Seventh Avenue, New York, NY 10019-6099
(facsimile: (212) 728-8111), Attention: Steven J. Gartner, Esq.; 

        (b)   if
to the Other Holders, at the address or facsimile number listed on Schedule I hereto, or at such other address or facsimile number as may have been furnished
the Company and Warburg Pincus in writing; and 

        (c)   if
to the Company, at 4350 E. Camelback Road, B-240, Phoenix, AZ 85018 (facsimile: (602) 553-2728), Attention: Chief Executive Officer, or
at such other address or facsimile number as it may have furnished the Holders in writing, with a copy to Lewis and Roca LLP, 40 N. Central Ave., Phoenix, AZ 85004 (facsimile:
(602) 734-3745), Attention: Scott DeWald, Esq. 

        2.     Any
notice so addressed shall be deemed to be given: if delivered by hand or facsimile, on the date of such delivery; if mailed by overnight courier, on the first
business day following the date of such mailing; and if mailed by registered or certified mail, on the third business day after the date of such mailing. 

        E.    Reproduction of Documents.    

        This
Agreement and all documents relating thereto, including, without limitation, any consents, waivers and modifications which may hereafter be executed may be reproduced by the Holders
by any photographic, photostatic, microfilm, microcard, miniature photographic or other similar process and the Holders may destroy any original document so reproduced. The parties hereto agree and
stipulate that any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not
such reproduction was made by the Holders in the regular course of business) sand that any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence. 

        F.    Successors and Assigns.    

        This
Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties; provided, however, that a transferee or assignee of Warburg Pincus may
only be entitled to the benefits of this Agreement (i) in the event such transferee or assignee receives not less than 100,000 shares of Registrable Securities (as presently constituted and
subject to subsequent adjustments, for stock splits, stock dividends, reverse stock splits, recapitalization or similar events) and (ii) such transferee or assignee assumes in writing the
obligations of Warburg Pincus under this Agreement in respect of such shares transferred or assigned. The Company shall be given written notice at the time of or within a reasonable time after such
transfer or assignment, such notice shall state the name and address of the transferee or assignee and identify the Registrable Securities with respect to which such registration rights are being
transferred or assigned. 

10

 

        G.    Entire Agreement; Amendment and Waiver.    

        This
Agreement constitutes the entire understanding of the parties hereto relating to the subject matter hereof and supersedes all prior understanding among such parties. The provisions
of the Prior Agreements relating to such subject matter and set forth on Schedule II hereto are hereby terminated and shall have no further force or effect and all rights thereunder are hereby
waived in their entirety. This Agreement may be amended, and the observance of any term of this Agreement may be waived, with (and only with) the written consent of the Company and Warburg Pincus and,
in the case of any amendment or waiver that would adversely affect the Other Holders in a manner different than Warburg Pincus, with the consent of the Other Holders holding a majority of the then
outstanding Registrable Securities. 

        H.    Severability.    

        In
the event that any part or parts of this Agreement shall be held illegal or unenforceable by any court or administrative body of competent jurisdiction, such determination shall not
affect the remaining provisions of this Agreement which shall remain in full force and effect. 

        I.    Counterparts.    

        This
Agreement may be executed in two or more counterparts (including by facsimile), each of which shall be deemed an original and all of which together shall be considered one and the
same agreement. 

[Remainder
of Page Intentionally Left Blank] 

11

        IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set forth above. 

					
	 	 	 TELEUNIVERSITY, INC.
	

 	
 	
By:	
 	
/s/ Scott Turner

  Name: Scott Turner

Title: Chief Executive Officer

 

					
	 WARBURG PINCUS PRIVATE EQUITY VIII, L.P.
	
 By:	
 	
WARBURG PINCUS & CO.,

General Partner	
 	

 
	
 By:	
 	
/s/ MIMI H. STROUSE

  Name: Mimi H. Strouse

Title: Managing Director	
 	

 
	
OTHER HOLDERS:	
 	

 
	
 By:	
 	
/s/ Andrew Clark

  Name: Andrew Clark

Title:	
 	

 

QuickLinks

Exhibit 4.2

TELEUNIVERSITY, INC. REGISTRATION RIGHTS AGREEMENT

R E C I T A L S

SECTION 1. DEFINITIONS

SECTION 2. REGISTRATION RIGHTS

SECTION 3. COVENANTS OF THE PARTIES

SECTION 4. MISCELLANEOUS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00151-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00151-of-00352.parquet"}]]