Document:

Senior Preferred Redemption and Repurchase Agreement

    

    EXHIBIT
      10.2

     

     

     

     

     

     

     

    WRC
      MEDIA
      INC. 

     

     

    REDEMPTION
      AND REPURCHASE AGREEMENT

     

     

     

     

    dated
      as
      of

     

    
    

    June
      22,
      2005

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    
      	
              TABLE
                OF CONTENTS

            	 Page
	 	 

    

    
      
        
          	
                  ARTICLE
                    I

                	 
	 	 
	
                  Definitions

                	 
	 	 
	
                  Section
                    1.01. Definitions

                	
                  2

                
	 	 
	
                  ARTICLE
                    II

                	 
	 	 
	
                  Redemption
                    and Repurchase

                	 
	 	 
	
                  Section
                    2.01. Redemption and Repurchase

                	
                  5

                
	
                  Section
                    2.02. Closing

                	
                  5

                
	
                  Section
                    2.03. Call Savings

                	
                  6

                
	 	 
	
                  ARTICLE
                    III

                	 
	 	 
	
                  Representations
                    and Warranties of WRC

                	 
	 	 
	
                  Section
                    3.01. Corporate Existence and Power

                	
                  6

                
	
                  Section
                    3.02. Corporate Authorization

                	
                  7

                
	
                  Section
                    3.03. Governmental Authorization

                	
                  7

                
	
                  Section
                    3.04. Noncontravention

                	
                  7

                
	
                  Section
                    3.05. Capitalization and Voting Rights of WRC

                	
                  7

                
	
                  Section
                    3.06. Valid Issuance of Exchange Shares

                	
                  8

                
	
                  Section
                    3.07. Litigation

                	
                  8

                
	
                  Section
                    3.08. Shareholder Arrangements

                	
                  9

                
	 	 
	
                  ARTICLE
                    IV

                	 
	 	 
	
                  Representations
                    and Warranties of the Exchangers

                	 
	 	 
	
                  Section
                    4.01. Existence and Power

                	
                  9

                
	
                  Section
                    4.02. Authorization

                	
                  9

                
	
                  Section
                    4.03. Governmental Authorization

                	
                  9

                
	
                  Section
                    4.04. Acquisition For Investment

                	
                  10

                
	
                  Section
                    4.05. Private Placement

                	
                  10

                
	
                  Section
                    4.06. Litigation

                	
                  10

                
	
                  Section
                    4.07. Brokers’ or Finders’ Fees

                	
                  10

                

        

         

         

        
          
            i

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

         

        
          
            	 	 
	
                    ARTICLE
                      V

                  	 
	 	 
	
                    Covenants
                      of WRC

                  	 
	 	 
	
                    Section
                      5.01. Covenants of WRC

                  	
                    10

                  
	 	 
	
                    ARTICLE
                      VI

                  	 
	 	 
	
                    Conditions
                      to Closing

                  	 
	 	 
	
                    Section
                      6.01. Conditions to Obligations of the Exchangers

                  	
                    12

                  
	
                    Section
                      6.02. Conditions to Obligation of WRC

                  	
                    13

                  
	
                    Section
                      6.03. Conditions to Obligations of Each Party

                  	
                    13

                  
	 	 
	
                    ARTICLE
                      VII

                  	 
	 	 
	
                    Survival;
                      Indemnification

                  	 
	 	 
	
                    Section
                      7.01. Survival

                  	
                    14

                  
	
                    Section
                      7.02. Indemnification

                  	
                    14

                  
	
                    Section
                      7.03. Exclusivity

                  	
                    14

                  
	 	 
	
                    ARTICLE
                      VIII

                  	 
	 	 
	
                    Termination

                  	 
	 	 
	
                    Section
                      8.01. Grounds For Termination

                  	
                    15

                  
	
                    Section
                      8.02. Effect of Termination

                  	
                    15

                  
	 	 
	
                    ARTICLE
                      IX

                  	 
	 	 
	
                    Standstill

                  	 
	 	 
	
                    Section
                      9.01. Standstill

                  	
                    16

                  
	 	 
	
                    ARTICLE
                      X

                  	 
	 	 
	
                    Miscellaneous

                  	 
	 	 
	
                    Section
                      10.01. Notices

                  	
                    16

                  
	
                    Section
                      10.02. Amendments and Waivers

                  	
                    17

                  
	
                    Section
                      10.03. Expenses; Other Payments

                  	
                    17

                  
	
                    Section
                      10.04. Consent and Waiver

                  	
                    17

                  
	
                    Section
                      10.05. Successors and Assigns

                  	
                    18

                  

          

           

           

          
            
              ii

            

            
              
              

              
                

              

            

            
              
              

            

          

           

           

           

          
            	
                    Section
                      10.06. Governing Law

                  	
                    18

                  
	
                    Section
                      10.07. Jurisdiction

                  	
                    18

                  
	
                    Section
                      10.08. WAIVER OF JURY TRIAL

                  	
                    18

                  
	
                    Section
                      10.09. Counterparts; Third Party Beneficiaries

                  	
                    18

                  
	
                    Section
                      10.10. Entire Agreement

                  	
                    19

                  
	
                    Section
                      10.11. Captions

                  	
                    19

                  
	
                    Section
                      10.12. Severability

                  	
                    19

                  

          

        

      

    

    
 

    
      
        iii

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    
      
        	Schedules 	 
	
                Schedule
                  A

              	
                Schedule
                  of Exchangers

              
	
                Schedule
                  2.01

              	
                Second
                  Lien Term Loans 

              
	
                Schedule
                  3.04

              	
                Noncontravention

              
	
                Schedule
                  3.05(d)

              	
                Existing
                  Outstanding Shares and Repurchase Obligations

              
	
                Schedule
                  3.07

              	
                Litigation

              
	
                Schedule
                  3.08

              	
                Shareholder
                  Agreements

              
	 	 
	Exhibits 	 
	
                Exhibit
                  A

              	
                Form
                  of New Stockholders Agreement

              
	
                Exhibit
                  B

              	
                Form
                  of Legal Opinion of Cravath, Swaine & Moore LLP

              
	
                Exhibit
                  C

              	
                Form
                  of Transferee Undertaking

              
	
                Exhibit
                  D

              	
                Copy
                  of Agreement for New Equity Investment 

              
	
                Exhibit
                  E

              	
                Form
                  of Amendment to WRC Certificate of
                  Incorporation

              

      

    

     

    

    
      
        iv

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
 

     

    REDEMPTION
      AND REPURCHASE AGREEMENT (as the same may hereafter be amended, supplemented
      or
      modified, this “Agreement”),
      dated
      as of June 22, 2005, among WRC MEDIA INC., a Delaware corporation (together
      with
      its successors and permitted assigns, “WRC”),
      THE
      NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY, a Wisconsin corporation (together
      with its successors and permitted assigns, “NML”);
      ARES
      LEVERAGED INVESTMENT FUND, L.P., a Delaware limited partnership, ARES LEVERAGED
      INVESTMENT FUND II, L.P., a Delaware limited partnership (collectively,
      with their respective successors and permitted assigns, the “Ares
      Funds”);
      TCW/CRESCENT MEZZANINE PARTNERS II, L.P., a Delaware limited partnership,
      TCW/CRESCENT MEZZANINE TRUST II, a Delaware business trust, SHARED
      OPPORTUNITY FUND IIB, L.L.C., a Delaware limited liability company, TCW SHARED
      OPPORTUNITY FUND III, L.P., a Delaware limited liability company, TCW LEVERAGED
      INCOME TRUST II, L.P., a Delaware limited partnership, TCW LEVERAGED INCOME
      TRUST, L.P., a Delaware limited partnership (collectively, with their respective
      successors and permitted assigns, the “TCW
      Funds”);
      DLJ
      INVESTMENT PARTNERS II, L.P., a Delaware limited partnership, DLJ INVESTMENT
      PARTNERS, L.P., a Delaware limited partnership, and DLJIP II HOLDINGS, L.P.,
      a
      Delaware limited partnership (collectively, with their respective successors
      and
      permitted assigns, the “DLJ
      IP Funds”
      and
      collectively, with NML, the Ares Funds and the TCW Funds, the “Other
      Exchangers”);
      and
      DLJ MERCHANT BANKING PARTNERS II, L.P., a Delaware limited partnership, DLJ
      MERCHANT BANKING PARTNERS II-A, L.P., a Delaware limited
      partnership,
      DLJ
      MERCHANT BANKING II, INC., a
      Delaware corporation, as Advisory General Partner on behalf of DLJ
      OFFSHORE PARTNERS II, C.V.,
      a
      Netherlands Antilles limited partnership, DLJ DIVERSIFIED PARTNERS, L.P., a
      Delaware limited partnership, DLJ DIVERSIFIED PARTNERS-A, L.P., a Delaware
      limited partnership, DLJMB FUNDING II, INC., a Delaware corporation, DLJ
      MILLENNIUM PARTNERS, L.P., a Delaware limited partnership, DLJ MILLENNIUM
      PARTNERS-A, L.P., a Delaware limited partnership, DLJ EAB PARTNERS, L.P., a
      Delaware limited partnership, DLJ ESC II, L.P., a Delaware limited partnership,
      and DLJ FIRST ESC, L.P., a Delaware limited partnership (each, together with
      its
      successors and permitted assigns, a “DLJMB
      Entity”,
      collectively, the “DLJMB
      Entities”
      and
      collectively, with the Other Exchangers, the “Exchangers”).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2

     

    RECITALS

    

    WHEREAS
      WRC desires to redeem and repurchase all of the Exchangers’ shares of 15% Senior
      Preferred Stock due 2011, par value $0.01 per share (the “Senior
      Preferred Stock”),
      of
      WRC, and warrants (the “Warrants”)
      to
      purchase common stock of WRC’s Subsidiaries Weekly Reader Corporation, a
      Delaware corporation (“Weekly
      Reader”),
      and
      CompassLearning, Inc., a Delaware corporation (“CompassLearning”),
      from
      each of the Exchangers, and each of the Exchangers desires to have redeemed
      and
      to sell all of its shares of Senior Preferred Stock and Warrants (collectively,
      the “Securities”)
      to
      WRC, upon the terms and subject to the conditions hereinafter set forth (such
      transactions, collectively, the “Redemption
      and Repurchase”).

     

    NOW
      THEREFORE, in consideration of the foregoing and the mutual promises herein
      contained, WRC, the DLJMB Entities and the Other Exchangers mutually agree
      as
      follows:

     

    ARTICLE
      I

     

    Definitions

     

    SECTION
      1.01.   Definitions.
      The
      following terms, as used herein, have the following meanings:

     

    “Affiliate”
      means,
      with respect to any Person, any other Person directly or indirectly controlling,
      controlled by, or under common control with such Person.

     

    “Agreement”
      has the
      meaning set forth in the introductory paragraph.

     

    “AGS”
      means
      American Guidance Service, Inc., a Minnesota corporation.

     

    “Board
      of Directors”
      means
      the board of directors of WRC or any committee thereof that, in the instance,
      shall have the lawful power to exercise the power and authority of such board
      of
      directors.

     

    “Call
      Savings”
      means
      the amount by which (1) the aggregate amount (principal, accrued but unpaid
      interest and the applicable repurchase or redemption premium) actually paid
      by
      WRC, the Purchaser or any of their respective Affiliates to purchase or redeem
      all outstanding Senior Subordinated Notes in the Note Redemption is less than
      (2) the aggregate amount (principal, accrued but unpaid interest and a 6.375%
      redemption premium) that would have been required to be paid to redeem all
      outstanding Senior Subordinated Notes at a 106.375% redemption price, assuming
      the Senior Subordinated Notes are redeemed on the date or dates when the actual
      purchases and/or redemptions occur.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3

     

    
      “Closing”
        has the
        meaning set forth in Section 2.01.

       

      “Closing
        Date”
        means
        the date of the Closing.

       

    

    “Common
      Stock”
      has the
      meaning set forth in Section 2.01.

     

    “CompassLearning”
      has the
      meaning set forth in the recitals hereto.

     

    “Consideration”
      has the
      meaning set forth in Section 2.01.

     

    “Credit
      Agreement”
      means
      the Credit Agreement, dated as of March 29, 2004, among Weekly Reader,
      CompassLearning, WRC, Credit Suisse First Boston, Bank of America, N.A. and
      General Electric Capital Corporation.

     

    “Damages”
      has the
      meaning set forth in Section 7.02.

     

    “DLJMB”
      means
      DLJ Merchant Banking II, L.P., together with its successors and permitted
      assigns.

     

    “DLJMB
      Designee”
      has the
      meaning set forth in Section 8.01.

     

    “DLJMB
      Entity”
      has the
      meaning set forth in the introductory paragraph.

     

    “Exchange
      Shares”
      has the
      meaning set forth in Section 2.01.

     

    “Exchangers”
      has the
      meaning set forth in the introductory paragraph.

     

    “Existing
      Management Options”
      means
      the options to purchase shares of Common Stock held by management of WRC and
      its
      Subsidiaries as of May 31,
      2005.

     

    “Lien”
      means,
      with respect to any property or asset, any mortgage, lien, pledge, charge,
      security interest or encumbrance in respect of such property or
      asset.

     

    “New
      Equity Investment”
      has the
      meaning set forth in Section 5.01(a).

     

    “New
      Management Options”
      has the
      meaning set forth in Section 3.05(d). 

     

    “New
      Stockholders Agreement”
      means
      the Stockholders Agreement dated the date hereof among WRC, EAC III L.L.C.,
      SGC
      Partners I L.L.C. and the Exchangers, in the form of Exhibit A
      hereto.

     

    “Note
      Agreement”
      means
      the agreement relating to the Second Lien Term Loans reflecting the terms set
      forth on Schedule 2.01.

     

    “Note
      Redemption”
      has the
      meaning set forth in Section 6.01(e). 

     

    “Notes”
      has the
      meaning set forth in Section 2.02(b). 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4

     

    
      “1934
        Act”
        means
        the Securities Exchange Act of 1934, as amended, and the rules and regulations
        promulgated thereunder.

       

      “1933
        Act”
        means
        the Securities Act of 1933, as amended, and the rules and regulations
        promulgated thereunder.

       

    

    “Other
      Exchangers”
      has the
      meaning set forth in the introductory paragraph.

     

    “Person”
      means
      an individual, corporation, partnership, limited liability company, association,
      trust or other entity or organization, including a government or political
      subdivision or an agency or instrumentality thereof.

     

    “Preferred
      Stock”
      has the
      meaning set forth in Section 3.05(a).

     

    “Pro
      Rata Share”
      means,
      for each Exchanger, such Exchanger’s Pro Rata Share as set forth opposite such
      Exchanger’s name on Schedule A.

     

    “Purchaser”
      means
      Pearson Education, Inc.

     

    “Redemption
      and Repurchase”
      has the
      meaning set forth in the recitals hereto.

     

    “Refinancing”
      means
      the refinancing of (i) the Credit Agreement, dated as of March 29, 2004,
      among Weekly Reader, CompassLearning, WRC, Credit Suisse First Boston, Bank
      of
      America, N.A. and General Electric Capital Corporation and (ii) the Second
      Lien
      Credit Agreement, dated as of March 29, 2004, among Weekly Reader,
      CompassLearning, WRC, Credit Suisse First Boston, Banc of America Securities
      LLC, General Electric Capital Corporation and Bank of America, N.A.

     

    “Ripplewood”
      has the
      meaning set forth in Section 9.02.

     

    “Sale”
      means
      the sale of all or substantially all of the capital stock of AGS.

     

    “Sale
      Agreement”
      means
      the Stock Purchase Agreement dated as of June 22, 2005 between Weekly
      Reader and the Purchaser, providing for the Sale, to be entered into
      contemporaneously with the execution of this Agreement. 

     

    “Sale
      Transaction”
      has the
      meaning set forth in Section 8.01.

     

    “Second
      Lien Term Loans”
      has the
      meaning set forth in Section
      2.01. 

     

    “Securities”
      has the
      meaning set forth in the recitals hereto.

     

    “Senior
      Preferred Stock”
      has the
      meaning set forth in the recitals hereto.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5

     

    
      “Senior
        Subordinated Notes”
        means
        the 12 3/4% Senior Subordinated Notes due 2009 issued pursuant to the Indenture
        dated as of November 17, 1999 among WRC, Weekly Reader, CompassLearning and
        the
        Note Guarantors signatories thereto.

       

      “Subsidiary”
        means
        any entity of which securities or other ownership interests having ordinary
        voting power to elect a majority of the board of directors or other persons
        performing similar functions are directly or indirectly owned by
        WRC.

       

      “Transactions”
        means,
        collectively, the Sale, the Refinancing, the New Equity Investment and the
        Redemption and Repurchase.

       

    

    “Warrants”
      has the
      meaning set forth in the recitals hereto.

     

    “Weekly
      Reader”
      has the
      meaning set forth in the recitals hereto.

     

    “WRC”
      has the
      meaning set forth in the introductory paragraph.

     

     

    ARTICLE
      II

     

    Redemption
      and Repurchase

     

    SECTION
      2.01.   Redemption
      and Repurchase.
      Upon the
      terms and subject to the conditions of this Agreement, WRC agrees to redeem
      and
      repurchase from each Exchanger, and each Exchanger severally agrees to surrender
      for redemption and sell to WRC, all of the Securities set forth opposite such
      Exchanger’s name on Schedule A hereto at the closing of the Redemption and
      Repurchase (the “Closing”).
      The
      aggregate consideration for the Securities to be paid or delivered to the
      Exchangers (the “Consideration”)
      is
      (a) at the Closing: (i) cash in an aggregate amount equal to $55,000,000,
      plus
      50%
      of
      the Call Savings realized at or prior to the Closing, if any,
      (ii) $30,000,000 in principal amount of second lien term indebtedness
      having the terms set forth in Schedule 2.01 (“Second
      Lien Term Loans”)
      and
      (iii) a number of shares (the “Exchange
      Shares”)
      of
      common stock, par value $0.01 per share, of WRC (the “Common
      Stock”)
      to be
      determined such that upon the closing of the Sale, after giving effect to the
      Transactions and all related transactions (including the Note Redemption),
      the
      Exchange Shares would constitute an aggregate of 30% of the outstanding Common
      Stock, calculated on a fully diluted basis prior to the issuance of New
      Management Options and (b) thereafter, promptly following any purchase
      or
      redemption of any Senior Subordinated Notes by WRC, the Purchaser or any of
      their respective Affiliates, 50% of the Call Savings attributable, to such
      purchase or redemption. The Consideration shall be allocated to the Securities
      and each Exchanger as set forth on Schedule A hereto. The Consideration shall
      be
      paid or delivered, as applicable, as provided in Section 2.02 and Section
      2.03.

     

    SECTION
      2.02.   Closing.
      The
      Closing shall take place at the offices of Cravath, Swaine & Moore LLP,
      Worldwide Plaza, 825 Eighth Avenue, New York,  

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6

     

    New York,
      concurrently with the consummation of the Sale, or at such other time or place
      as WRC and the Exchangers may agree. At the Closing:

     

    
      (a)
          WRC
        shall
        deliver, or cause to be delivered, to each Exchanger, in immediately available
        funds, the cash portion of the Consideration set forth opposite such Exchanger’s
        name on Schedule A hereto (plus such Exchanger’s Pro Rata Share of 50% of
        the Call Savings realized at or prior to the Closing), by wire transfer (or
        other means acceptable to each Exchanger) to an account of such Exchanger
        with a
        bank in New York City designated by such Exchanger by notice to WRC prior
        to the
        Closing; 

       

      (b)
          WRC
        shall
        deliver, or cause to be delivered, to each Exchanger, a definitive note
        evidencing the Second Lien Term Loans (the “Notes”)
        executed by WRC and in the principal amount set forth opposite such Exchanger’s
        name on Schedule A hereto, registered in the name of such Exchanger and bearing
        appropriate legends;

       

    

    (c)
        WRC
      shall
      issue and deliver, or cause to be delivered, to each Exchanger, certificates
      or
      other appropriate documentation for the number of Exchange Shares set forth
      opposite such Exchanger’s name on Schedule A hereto, registered in the name of
      such Exchanger and bearing appropriate legends; and

     

    (d)
        Each
      Exchanger shall deliver, or cause to be delivered, to WRC, certificates or
      other
      appropriate documentation for the Securities set forth opposite such Exchanger’s
      name on Schedule A hereto, duly endorsed in blank or accompanied by instruments
      of transfer executed in blank.

     

    SECTION
      2.03.   Call
      Savings.
      If WRC,
      the Purchaser or any of their respective Affiliates purchases or redeems any
      Senior Subordinated Notes, WRC shall deliver, or cause to be delivered, to
      each
      Exchanger, in immediately available funds, such Exchanger’s Pro Rata Share of
      50% of the portion of any Call Savings attributable to such purchase or
      redemption, by wire transfer (or other means acceptable to each Exchanger)
      to
      the account of such Exchanger with a bank in New York City designated by such
      Exchanger by notice to WRC prior to the Closing, it being understood that none
      of WRC, the Purchaser or any of their respective Affiliates shall have any
      obligation to take any action to realize any Call Savings in connection with
      such purchase or redemption.

     

     

    ARTICLE
      III

     

    Representations
      and Warranties of WRC

     

    WRC
      represents and warrants to each Exchanger as of the date hereof and as of the
      time of Closing that:

     

    SECTION
      3.01.   Corporate
      Existence and Power.
      WRC is a
      corporation duly incorporated, validly existing and in good standing under
      the
      laws of Delaware and has all corporate powers and all material governmental
      licenses, authorizations, permits, 

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    7

     

    consents
      and approvals required to carry on its business as now conducted and as proposed
      to be conducted.

     

    SECTION
      3.02.   Corporate
      Authorization.
      The
      execution, delivery and performance by WRC of each of this Agreement, the Notes,
      the Note Agreement and the New Stockholders Agreement and the consummation
      by
      WRC of the transactions contemplated hereby and thereby (including the issuance
      of the Exchange Shares and the Note Redemption) are within the corporate powers
      of WRC and have been duly authorized by all necessary corporate action on the
      part of WRC. This Agreement and the New Stockholder Agreement each constitutes,
      and each Note and the Note Agreement when executed will constitute, a valid
      and
      binding agreement of WRC, each enforceable against WRC in accordance with its
      terms, except (i) as limited by applicable bankruptcy, insolvency,
      reorganization, moratorium, fraudulent transfer and other laws of general
      application affecting enforcement or creditors’ rights generally; (ii) as
      limited by laws relating to the availability of specific performance, injunctive
      relief or other equitable remedies; or (iii) as limited by general principles
      of
      equity, including without limitation, concepts of materiality, reasonableness,
      good faith and fair dealing, regardless of whether considered in a proceeding
      in
      equity or at law.

     

    SECTION
      3.03.   Governmental Authorization. The execution, delivery and
      performance by WRC of each of this Agreement, the Notes, the Note Agreement
      and
      the New Stockholders Agreement and the consummation of the transactions
      contemplated hereby and thereby require no order, license, consent,
      authorization or approval of, or exemption by, or action by or in respect of,
      or
      notice to, or filing or registration with, any governmental body, agency or
      official to be obtained or made by, or with respect to, WRC, except (i) as
      have
      been obtained or made (or are not required to be obtained or made until after
      the Closing), (ii) as required pursuant to the Securities Exchange Act
      of
      1934 and (iii) filings of termination statements, mortgage releases,
      financing statements, mortgages and other notices in connection with the
      Refinancing and the Second Lien Term Loans.

     

    SECTION
      3.04.   Noncontravention.
      Except
      as set forth on Schedule 3.04 hereto, the execution, delivery and
      performance by WRC of each of this Agreement, the Notes, the Note Agreement
      and
      the New Stockholders Agreement and the consummation of the transactions
      contemplated hereby and thereby do not and will not (i) violate WRC’s
      certificate of incorporation or bylaws, (ii) violate any applicable law, rule,
      regulation, judgment, injunction, order or decree, (iii) require any
      consent or other action by any Person under, constitute a default under (with
      due notice or lapse of time or both), or give rise to any right of termination,
      cancellation or acceleration of any right or obligation of WRC or to a loss
      of
      any benefit to which WRC is entitled under any provision of any material
      agreement or other instrument binding upon WRC or any of WRC’s assets or
      properties or (iv) result in the creation or imposition of any material
      Lien on any of WRC’s properties or assets.

     

    SECTION
      3.05.   Capitalization
      and Voting Rights of WRC. (a)
      The
      authorized capital stock of WRC as of May 31, 2005 consists of 20,000,000
      shares of Common Stock and 20,000,000 shares of preferred stock, par value
      $0.01
      per share (the 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    8

     

     “Preferred
      Stock”),
      and
      the outstanding capital stock of WRC as of May
      31,
      2005 consists of 7,008,406 shares of Common Stock and 3,547,980 shares of
      Preferred Stock. 
       

      (b)
          Immediately
        following the Closing and after giving effect to the transactions contemplated
        by this Agreement, the Exchange Shares will in the aggregate constitute 30%
        of
        the outstanding Common Stock, calculated on a fully diluted basis prior to
        the
        issuance of New Management Options, and WRC will have no outstanding shares
        of
        Preferred Stock.

       

      (c)
          As
        of May
        31, 2005, EAC III L.L.C. owned 4,870,494 shares of Common Stock representing
        69.5% of the outstanding Common Stock and SGC Partners II L.L.C. owned 1,694,039
        shares of Common Stock representing 24.2% of the outstanding Common
        Stock.

       

      (d)
          All
        of
        the outstanding shares of capital stock of WRC have been duly authorized
        and
        validly issued and are fully paid and non-assessable. Except for (1) the
        Existing Management Options and options to be issued to management of WRC
        and
        its Subsidiaries representing the right to purchase up to 15% of the outstanding
        shares of Common Stock after giving effect to the transactions contemplated
        hereby at an exercise price that is no less than the fair market value of
        one
        share of Common Stock at the time of issuance of such options as determined
        in
        good faith by the Board of Directors (the “New
        Management Options”),
        (2) the 7,008,406 shares of Common Stock outstanding on the date hereof,
        (3) the shares of Common Stock to be issued in connection with the
        Redemption and Repurchase, (4) the shares of Common
        Stock to be issued pursuant to the Redemption and Repurchase Agreement, dated
        the date hereof, among WRC, SGC
        Capital Partners I L.L.C. and EAC III L.L.C., (5) the shares of Common
        Stock to be issued in connection with the New Equity Investment and (6) as
        set forth in Schedule 3.05(d) hereto, there are, and immediately after
        the
        Closing and after giving effect to the transactions contemplated hereby there
        will be, no (i) outstanding shares of capital stock or voting securities
        of WRC,
        (ii) securities of WRC convertible into or exchangeable for shares of capital
        stock or voting securities of WRC, (iii) options or other rights to acquire
        from
        WRC, or other obligation of WRC to issue, any capital stock, voting securities
        or securities convertible into or exchangeable for capital stock or voting
        securities of WRC or (iv) other than as expressly permitted in this
        Agreement or the New Stockholders Agreement, obligations of WRC to repurchase
        or
        otherwise acquire or retire any shares of capital stock or voting securities
        or
        any convertible or exchangeable securities, options or other rights of the
        type
        described in (i), (ii), or (iii).

    

     

    SECTION
      3.06.   Valid
      Issuance of Exchange Shares.
      The
      Exchange Shares have been duly and validly authorized and, when issued, sold
      and
      delivered in accordance with the terms hereof for the consideration expressed
      herein, will be fully paid and non-assessable.

     

    SECTION
      3.07.   Litigation. Except as set forth in Schedule 3.07, as of
      the date of this Agreement, there is no action, suit, investigation or
      proceeding pending against or, to the knowledge of WRC, threatened against
      or
      affecting WRC or any of its properties before any court or arbitrator or any
      governmental body, agency or official

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    9

     

    which
      in
      any manner challenges or seeks to prevent, enjoin, alter or materially delay
      the
      transactions contemplated by this Agreement or the New Stockholders Agreement
      or
      which could
      reasonably be expected to have a material adverse effect on the business,
      financial condition, properties or operations of WRC.

     

    SECTION
      3.08.   Shareholder
      Arrangements.
      Other
      than the New Stockholders Agreement, the Amended and Restated Stockholders
      Agreement dated as of November 17, 1999 among WRC, SGC Partners II LLC and
      EAC
      III, L.L.C., the agreements listed on Schedule 3.08 and this Agreement,
      WRC
      is not party to or bound by any agreement with any of its stockholders or any
      of
      their respective Affiliates.

     

    ARTICLE
      IV

     

    Representations
      and Warranties of the Exchangers

     

    Each
      Exchanger represents and warrants to WRC, severally as to itself only and not
      jointly or as to any other Exchanger, as of the date hereof and as of the time
      of Closing that:

     

    SECTION
      4.01.   Existence
      and Power.
      Such
      Exchanger is duly organized, validly existing and in good standing under the
      laws of its jurisdiction of organization and has all powers (corporate,
      partnership or otherwise) and all material governmental licenses,
      authorizations, permits, consents and approvals required to carry on its
      business as now conducted.

     

    SECTION
      4.02.   Authorization.
      The
      execution, delivery and performance by such Exchanger of each of this Agreement
      and, when executed, the New Stockholders Agreement and the consummation of
      the
      transactions contemplated hereby and thereby are within the powers (corporate,
      partnership or otherwise) of such Exchanger and have been duly authorized by
      all
      necessary action (corporate, partnership or otherwise) on the part of such
      Exchanger. This Agreement constitutes, and the New Stockholders Agreement when
      executed will constitute, a valid and binding agreement of such Exchanger,
      each
      enforceable in accordance with its terms, except (i) as limited by
      applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
      transfer and other laws of general application affecting enforcement or
      creditors’ rights generally; (ii) as limited by laws relating to the
      availability of specific performance, injunctive relief or other equitable
      remedies; or (iii) as limited by general principles of equity, including without
      limitation, concepts of materiality, reasonableness, good faith and fair
      dealing, regardless of whether considered in a proceeding in equity or at
      law.

     

    SECTION
      4.03.   Governmental Authorization. The execution, delivery and
      performance by such Exchanger of each of this Agreement and the New Stockholders
      Agreement, and the consummation of the transactions contemplated hereby and
      thereby, require no order, license, consent, authorization or approval of,
      or
      exemption by, or action by or in respect of, or notice to, or filing or
      registration with, any  

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10

     

    governmental
      body, agency or official to be obtained or made by, or with respect to, such
      Exchanger other than routine regulatory filings in the ordinary course. 
       

      SECTION
        4.04.   Acquisition For Investment. Such Exchanger is acquiring
        the Exchange Shares and the Notes it is receiving pursuant to this Agreement
        for
        investment for its own account and not with a view to, or for sale in connection
        with, any distribution thereof.

       

      SECTION
        4.05.   Private Placement. (a) Such Exchanger understands
        that (i) the offering and sale of the Exchange Shares and the Notes
        hereby
        is intended to be exempt from registration under the 1933 Act and
        (ii) there is no market for the Exchange Shares or the Notes, and
        there can
        be no assurance that any Exchanger will be able to sell or dispose of the
        Exchange Shares or the Notes to be acquired by such Exchanger.

       

      (b)
          Such Exchanger’s financial situation is such that such Exchanger can
        afford to bear the economic risk of holding the Exchange Shares and the Notes
        acquired hereunder for an indefinite period of time, and such Exchanger can
        afford to suffer the complete loss of the investment in the Exchange Shares
        and
        the Notes.

       

      SECTION
        4.06.   Litigation. There is no action, suit, investigation or
        proceeding pending against or, to the knowledge of such Exchanger, threatened
        against or affecting such Exchanger before any court or arbitrator or any
        governmental body, agency or official which in any manner challenges or seeks
        to
        prevent, enjoin, alter or materially delay the transactions contemplated
        by this
        Agreement or the New Stockholders Agreement.

       

      SECTION
        4.07.   Brokers’ or Finders’ Fees. There is no investment
        banker, broker, finder or other intermediary which has been retained by,
        will be
        retained by or is authorized to act on behalf of such Exchanger who might
        be
        entitled to any fee or commission from WRC or such Exchanger upon consummation
        of the transactions contemplated by this Agreement.

    

     

    ARTICLE
      V

     

    Covenants
      of WRC

     

    SECTION
      5.01.   Covenants
      of WRC.
      In
      further consideration of the agreements of the Exchangers contained in this
      Agreement, WRC covenants with each of the Exchangers as follows:

     

    (a)
        (i) WRC
      shall not, and shall not permit any of its Subsidiaries to, amend or waive
      any
      of the provisions of the letter agreement relating to the purchase of Common
      Stock (the “New
      Equity Investment”)
      by
      EAC III L.L.C., a copy of which is attached hereto as Exhibit D, without
      the prior written consent of the DLJMB Designee on behalf of the Exchangers
      and
      (ii) WRC shall not, and shall not permit any of its Subsidiaries to,
      amend
      or waive any material term of the Sale Agreement that would have 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    11

     

    
    

    
      an
        adverse effect on the interests of the Exchangers (it being understood that
        any
        reduction in the purchase price payable under the Sale Agreement would be
        a
        change of a material term that would have an adverse effect on the interests
        of
        the Exchangers) without the prior written consent of the DLJMB Designee on
        behalf of the Exchangers;

       

      (b)
          WRC
        shall
        comply with its obligations under the Sale Agreement, if any, to cause the
        consummation of the Sale to occur;

       

      (c)
          WRC
        agrees to use its reasonable commercial efforts (x) to obtain all
        consents
        and to take all other actions necessary to ensure that the consummation of
        the
        Transactions does not violate or result in a default under any of the agreements
        or instruments listed on Schedule 3.04 and (y) to take all other actions
        necessary or desirable under applicable laws and regulations to consummate
        the
        transactions contemplated by this Agreement; 

       

      (d)
          WRC
        shall
        comply with its obligation under the Sale Agreement, if any, to obtain, and
        cooperate in obtaining, consents from third parties in connection with
        consummating the Sale;

       

      (e)
          During
        the period commencing on the date hereof and ending upon the earlier of the
        Closing or the termination of this Agreement, WRC shall not permit the exercise
        price of the Existing Management Options or New Management Options to be
        reduced
        and shall not permit the exercise price of any New Management Options issued
        after the date hereof to be less than the fair market value of one share
        of
        Common Stock at the time of issuance of such New Management Options as
        determined in good faith by the Board of Directors; 

       

      
        (f)
            Promptly following the Closing, WRC shall deliver to the
          Exchangers
          a good faith estimate of the portion of the Consideration consisting of
          cash
          that (assuming such cash has the effect of the distribution of a dividend
          under
          section 356(a)(2) of the Internal Revenue Code) should be treated for U.S.
          Federal income tax purposes as a distribution out of WRC’s undistributed
          earnings and 

      

    

     

    (g)
        If,
      at
      any time after the Closing, any Exchanger determines to sell any Notes in a
      private placement not subject to the registration requirements of the Securities
      Act of 1933, WRC shall (i) provide all information reasonably requested by
      such
      Exchanger, (ii) provide reasonable assistance to such Exchanger in the
      preparation of offering materials relating to such sale, (iii) participate
      at
      reasonable times upon reasonable notice in due diligence sessions and bank
      and
      rating agency presentations relating to such sale and (iv) otherwise reasonably
      cooperate with such Exchanger to effect such sale.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    12

     

    ARTICLE
      VI

     

    Conditions
      to Closing

     

    SECTION
      6.01.   Conditions
      to Obligations of the Exchangers.
      The
      obligations of each Exchanger to consummate the Closing are subject to the
      satisfaction of the following conditions:

     

    (a)
        WRC
      shall
      have received at least $26,000,000 in aggregate gross cash proceeds from the
      New
      Equity Investment;

     

    (b)
        WRC’s
      18%
      Junior Participating Cumulative Convertible Preferred Stock shall have been
      converted into Common Stock;

     

    (c)
        WRC
      shall
      own 100% of the outstanding common stock of Weekly Reader (other than the
      5.1% of outstanding common stock of Weekly Reader held by PRIMEDIA Inc.)
      and CompassLearning;

     

    (d)
        Immediately
      following the Closing, WRC shall have no outstanding equity securities other
      than its Common Stock, the Existing Management Options and the New Management
      Options;

     

    (e)
        Either
      (i) WRC shall have issued a notice of redemption or offered to purchase all
      outstanding Senior Subordinated Notes pursuant to the terms on the indenture
      therefor, and deposited with the trustee therefor a sum sufficient to pay all
      accrued but unpaid interest and the applicable redemption or purchase price
      for
      such notes on the redemption or purchase date or (ii) the Purchaser
      shall
      have become the “Issuer” of the outstanding Senior Subordinated Notes pursuant
      to Section 5.02 of the indenture therefor (the “Note
      Redemption”);

     

    (f)
        Upon
      the
      closing of the Transactions (and after giving effect to the Note Redemption),
      the total indebtedness of WRC (excluding the Second Lien Term Loans) shall
      not
      exceed $82,500,000 of term debt plus
      a
      revolving credit facility with loan commitments not to exceed $25,000,000 in
      the
      aggregate;

     

    (g)
        The
      terms
      contained in the definitive agreements for the Refinancing shall be
      substantially the terms reflected in the term sheets therefor, except for
      additions or deviations that do not materially and adversely affect the
      interests of the Exchangers;

     

    (h)
        WRC
      shall
      have performed in all material respects all of its obligations hereunder
      required to be performed by it on or prior to the Closing Date, the
      representations and warranties of WRC contained in this Agreement not qualified
      as to materiality shall be true in all material respects when made and at and
      as
      of the time of Closing, as if made at and as of such time, and the
      representations and warranties of WRC contained in this Agreement containing
      a
      materiality exception shall be true when made and at and as of the time of
      Closing, as if made at and as of such time;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    13

     

    (i)
        The
      Exchangers shall have received an opinion from Cravath, Swaine & Moore LLP,
      counsel for WRC, in form and substance substantially as set forth in Exhibit
      B;

     

    (j)
        WRC
      shall
      have paid in full all costs and expenses, including any out-of-pocket expenses,
      of the DLJMB Entities then due and required to be paid by WRC pursuant to
      Section 10.03 hereof;

     

    (k)
        The
      Exchangers shall have received all documents they may reasonably request
      relating to the existence of WRC and the authority of WRC to enter into this
      Agreement, the Note Agreement and the New Stockholders Agreement, all in form
      and substance reasonable satisfactory to the Exchangers; 

     

    (l)
        All
      material actions by or in respect of, or filings with, any governmental body,
      agency, official or authority required to permit the consummation of the Closing
      shall have been taken, made or obtained;

     

    (m)
        The
      Sale
      shall have been consummated (or shall be consummated concurrently with the
      Closing); and

     

    (n)
        There
      is
      no action, suit, investigation or proceeding pending against or affecting WRC
      or
      any of its properties before any court or arbitrator or any governmental body,
      agency or official which in any manner challenges or seeks to prevent, enjoin,
      alter or materially delay the transactions contemplated by this Agreement or
      the
      New Stockholders Agreement.

     

    SECTION
      6.02.   Conditions
      to Obligation of WRC.
      The
      obligation of WRC to consummate the Closing is subject to the satisfaction
      of
      the following conditions:

     

    (a)
        The
      Sale
      shall have been consummated (or shall be consummated concurrently with the
      Closing);

     

    (b)
        Each
      Exchanger shall have performed in all material respects all of its obligations
      hereunder required to be performed by it at or prior to the Closing Date, the
      representations and warranties of each Exchanger contained in this Agreement
      not
      qualified as to materiality shall be true in all material respects when made
      and
      at and as of the time of Closing, as if made at and as of such time, and the
      representations and warranties of each Exchanger contained
      in this Agreement containing a materiality exception shall be true when made
      and
      at
      and as of the time of Closing, as if made at and as of such time; and

       

      (c)
          Each
        Exchanger shall have executed and delivered a transferee letter in form and
        substance substantially as set forth in Exhibit C.

       

      SECTION
        6.03.   Conditions
        to Obligations of Each Party.
        The
        obligation of each party to consummate the Closing is subject to the
        satisfaction of the following conditions:

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    14

     

    (a)
        The
      first
      lien term loan as contemplated by the term sheet dated June 22, 2005
      shall
      have been funded and the revolving credit facility contemplated therein shall
      be
      available for drawdown; 

     

    (b)
        WRC
      and
      each Exchanger shall have executed and delivered the Note Agreement, and the
      conditions to closing set forth in such documentation shall have been satisfied
      (or waived by the party entitled to the benefit thereof); and

     

    (c)
        A
      duly
      authorized and adopted amendment in the form of Exhibit E attached hereto to
      the
      Certificate of Incorporation of WRC shall have been filed with the Secretary
      of
      State of the State of Delaware and be effective.

     

     

    ARTICLE
      VII

     

    Survival;
      Indemnification

     

    SECTION
      7.01.   Survival.
      The
      representations and warranties of the parties hereto contained in this Agreement
      or in any certificate delivered pursuant hereto or in connection herewith shall
      survive the Closing (for the purpose of Section 7.02 only). A breach of any
      representation or warranty made in this Agreement shall not affect in any manner
      whatsoever the relative rights and obligations of the parties to and under
      the
      New Stockholders Agreement.

     

    SECTION
      7.02.   Indemnification. (a)
      WRC
      hereby indemnifies each Exchanger and its Affiliates, limited partners, general
      partners, members, directors, officers and employees against, and agrees to
      hold
      each of them harmless from, any and all damage, loss, liability and expense
      (including, without limitation, reasonable expenses of investigation and
      reasonable attorneys’ fees and expenses in connection with any action, suit or
      proceeding) (“Damages”)
      incurred or suffered by any such party arising out of any misrepresentation
      or
      breach of warranty, covenant or agreement made or to be performed by WRC
      pursuant to this Agreement.

     

    (b)
        Each
      Exchanger hereby indemnifies, severally and not jointly, WRC and its Affiliates,
      limited partners, general partners, members, directors, officers and employees
      against, and agrees to hold each of them harmless from, any and all Damages
      incurred or suffered by any such party arising out of any misrepresentation
      or
      breach of warranty, covenant or agreement made or to be performed by such
      Exchanger pursuant to this Agreement.

     

    
      SECTION
        7.03.   Exclusivity.
        After
        the Closing, Section 7.02 will provide the exclusive remedy for any
        misrepresentation or breach of warranty or other claim arising out of this
        Agreement or the transactions contemplated hereby.

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    15

     

     

    ARTICLE
      VIII

     

    Termination

     

    SECTION
      8.01.   Grounds
      For Termination.
      This
      Agreement may be terminated at any time prior to the Closing:

     

    (a)
        by
      mutual
      written agreement of WRC and the DLJMB Designee on behalf of the Exchangers;
      

     

    (b)
        by
      the
      DLJMB Designee on behalf of the Exchangers if WRC shall be in material breach
      of
      any of its representations, warranties or covenants contained in this
      Agreement;

     

    (c)
        by
      WRC if
      the Sale Agreement is terminated in accordance with its terms; 

     

    (d)
        by
      WRC or
      the DLJMB Designee on behalf of the Exchangers if consummation of the
      transactions contemplated hereby would violate any non-appealable final order,
      decree or judgment of any court or governmental body having competent
      jurisdiction; or

     

    (e)
        by
      any
      party hereto, if the Closing does not occur on or prior to August 15,
      2005.

     

    Each
      Exchanger hereby appoints DLJMB as its designee (in such capacity, the
“DLJMB
      Designee”)
      for
      purposes of determining whether to waive or exercise the rights of the
      Exchangers to terminate this Agreement pursuant to clause (a), (b) or (d) of
      this Section 8.01. This Agreement shall terminate (i) in the case of
      termination pursuant to clause (a) above, upon the execution and delivery of
      the
      written agreement referred to in such clause or (ii) in the case of
      termination pursuant to clause (b), (c), (d) or (e) above, upon notice by the
      party desiring to terminate this Agreement to the other parties
      hereto.

     

    SECTION
      8.02.   Effect
      of Termination.
      If this
      Agreement is terminated as permitted by Section 8.01, such termination shall
      be
      without liability of any party (or any Affiliate, stockholder, general partner,
      limited partner, member, director, officer, employee, agent, consultant or
      representative of such party) to the other parties to this Agreement;
provided,
      that if
      such termination shall result from the willful (i) failure of any party
      to
      fulfill a condition to the performance of the obligations of another party,
      (ii) failure to perform a covenant of this Agreement or (iii) breach
      by any party hereto of any representation or warranty or agreement contained
      herein, such party shall be fully liable for any and all Damages incurred or
      suffered by each other party as a result of such failure or breach. The
      provisions of Sections 10.03, 10.05, 10.06, 10.07 and 10.08 shall survive any
      termination hereof pursuant to Section 8.01.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    16

     

    ARTICLE
      IX

     

    Standstill

     

    SECTION
      9.01.   Standstill.
      Each
      Exchanger agrees that, unless this Agreement is terminated pursuant to
      Section 8.01, it shall not, directly or indirectly, (1) transfer,
      sell, convey, assign, gift, hypothecate, pledge or otherwise dispose of, whether
      voluntarily or by operation of law, any shares of Senior Preferred Stock or
      Warrants or enter into any swap or other arrangement that transfers to another,
      in whole or in part, any of the economic consequences of ownership of any shares
      of Senior Preferred Stock or Warrants, whether any such transaction is to be
      settled by delivery of shares of Senior Preferred Stock or Warrants, in cash
      or
      otherwise (any such transaction, a “Sale
      Transaction”),
      (2) solicit, initiate or encourage the submission of, any proposal for
      a
      Sale Transaction or (3) offer or agree to enter into any agreement with
      respect to a Sale Transaction. Any transfer, sale, conveyance, assignment,
      gift,
      hypothecation, pledge or other disposition, whether voluntary or by operation
      of
      law, or transfer of economic consequences of ownership, of any share,
      partnership interest, membership interest or any other ownership interest in
      any
      entity that is a direct or indirect beneficial or record owner of any share
      of
      Senior Preferred Stock or any Warrant (including any disposition by means of
      a
      merger, consolidation or similar transaction) or any other transaction that
      has
      the economic effect of any of the foregoing (including the designation of any
      beneficiary of any trust that is a direct or indirect beneficial or record
      owner
      of any share of Senior Preferred Stock or any Warrant) shall be deemed to be
      a
      Sale Transaction subject to this Section 9.01.

     

     

    ARTICLE
      X

     

    Miscellaneous

     

    SECTION
      10.01.   Notices.
      All
      notices, requests and other communications to any party hereunder shall be
      in
      writing (including facsimile transmission) and shall be given, if to any
      Exchanger, to such Exchanger at the address specified by such Exchanger on
      the
      signature pages of this Agreement or in a notice given by such Exchanger to
      WRC
      for such purpose, with a copy to:

     

    Davis
      Polk & Wardwell

    450
      Lexington Avenue

    New
      York,
      New York 10017

    Attention:
       Nancy L. Sanborn, Esq.

    Facsimile:
       (212) 450-3800

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    17

     

              if
      to WRC, to:

     

              WRC
      Media Inc.

              c/o
      Ripplewood Holdings L.L.C.

              One
      Rockefeller Plaza, 32nd Floor

              New
      York, New York 10020

              Attention:
       Christopher Minnetian

              Facsimile: (212)
      218-4699

     

              with
      a copy to:

     

              Cravath,
      Swaine & Moore LLP

              Worldwide
      Plaza

              825
      Eighth Avenue

              New
      York, New York 10019

              Attention: Peter
      S. Wilson, Esq.

              Facsimile: (212)
      474-3700

     

    or
      to
      such other address or telecopy number and with such other copies as such party
      may hereafter specify for the purpose of notice.

     

    All
      such
      notices, requests and other communications shall be deemed received on the
      date
      of receipt by the recipient thereof if received prior to 5 p.m. in the
      place of receipt and such day is a business day in the place of receipt.
      Otherwise, any such notice, request or communication shall be deemed not to
      have
      been received until the next succeeding business day in the place of
      receipt.

     

    SECTION
      10.02.   Amendments
      and Waivers. (a)
      Except
      as
      expressly provided in Section 8.01, any provision of this Agreement may be
      amended or waived if, but only if, such amendment or waiver is in writing and
      is
      signed, in the case of an amendment, by each party to this Agreement, or in
      the
      case of a waiver, by the party against whom the waiver is to be
      effective.

     

    (b)
        No
      failure or delay by any party in exercising any right, power or privilege
      hereunder shall operate as a waiver thereof nor shall any single or partial
      exercise thereof preclude any other or further exercise thereof or the exercise
      of any other right, power or privilege. The rights and remedies herein provided
      shall be cumulative and not exclusive of any rights or remedies provided by
      law.

     

    SECTION
      10.03.   Expenses;
      Other Payments.
      All
      costs and expenses incurred in connection with this Agreement shall be paid
      by
      the party incurring such cost or expense; provided
      that WRC
      shall pay, on a timely basis as billed, the fees and expenses of DLJMB’s counsel
      in connection with the Transactions, whether or not consummated.

     

    SECTION
      10.04.   Consent
      and Waiver.
      Subject
      to the satisfaction of the conditions set forth in Section 6.01, pursuant to
      Section 7(d) of the certificate of designations for the Senior Preferred Stock,
      each Exchanger hereby (a) consents to the

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    18

     

     Sale,
      (b) agrees to waive the application of Section 5(b) of the certificate of
      designations for the Senior Preferred Stock to the Sale so that no change of
      control redemption with respect to the Senior Preferred Stock will be required
      as a result of the Sale and (c) agrees to provide any other approvals required
      for consummation of the Sale and the Redemption and Repurchase. The consent
      and
      waiver contained in clauses (a) and (b) of the foregoing sentence shall
      constitute the written consent of holders of Senior Preferred Stock contemplated
      by Section 7(d) of the certificate of designations for the Senior Preferred
      Stock.

     

    SECTION
      10.05.   Successors
      and Assigns.
      The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the parties hereto and their respective successors and assigns; provided,
      that no
      party may assign, delegate or otherwise transfer any of its rights or
      obligations under this Agreement without the consent of each other party
      hereto.

     

    SECTION
      10.06.   Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the law of
      the
      State of New York, without regard to the conflict of law rules of such
      state.

     

    SECTION
      10.07.   Jurisdiction.
      The
      parties hereto agree that any suit, action or proceeding seeking to enforce
      any
      provision of, or based on any matter arising out of or in connection with,
      this
      Agreement or the transactions contemplated hereby may only be brought in the
      United States District Court for the Southern District of New York or any New
      York State court sitting in New York City, and each of the parties hereby
      consents to the jurisdiction of such courts (and of the appropriate appellate
      courts therefrom) in any such suit, action or proceeding and irrevocably waives,
      to the fullest extent permitted by law, any objection which it may now or
      hereafter have to the laying of the venue of any such suit, action or proceeding
      in any such court or that any such suit, action or proceeding which is brought
      in any such court has been brought in an inconvenient forum. Process in any
      such
      suit, action or proceeding may be served on any party anywhere in the world,
      whether within or without the jurisdiction of any such court. Without limiting
      the foregoing, each party agrees that service of process on such party as
      provided in Section
      10.01. shall
      be
      deemed effective service of process on such party.

     

    SECTION
      10.08.   WAIVER
      OF JURY TRIAL.
      EACH OF
      THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY
      JURY
      IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE
      TRANSACTIONS CONTEMPLATED HEREBY.

     

    SECTION
      10.09.   Counterparts;
      Third Party Beneficiaries.
      This
      Agreement may be signed in any number of counterparts, each of which shall
      be an
      original, with the same effect as if the signatures thereto and hereto were
      upon
      the same instrument. This Agreement shall become effective when each party
      hereto shall have received a counterpart hereof signed by the other party
      hereto. No provision of this Agreement shall confer upon any Person other than
      the parties hereto any rights or remedies hereunder.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    19

     

    
      SECTION
        10.10.   Entire
        Agreement.
        This
        Agreement along with the New Stockholders Agreement, the Note Agreement and
        the
        Notes (including the documents, schedules and exhibits referred to herein
        and
        therein) constitutes the entire agreement between the parties with respect
        to
        the subject matter of this Agreement and supersede all prior agreements
        and understandings, both oral and written, between the parties with respect
        to
        the subject matter of this Agreement.

    

     

    SECTION
      10.11.   Captions.
      The
      captions herein are included for convenience of reference only and shall be
      ignored in the construction or interpretation hereof.

              

               SECTION
      10.12.   Severability. 
      If
      one or more provisions of this Agreement are held to be unenforceable under
      applicable law, such provision shall be excluded from this Agreement and the
      balance of this Agreement shall be interpreted as if such provision were so
      excluded and shall be enforced in accordance with its terms to the maximum
      extent permitted by law.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed by their respective authorized officers, partners or representatives
      as
      of the day and year first above written.

     

    
      	 	 	 
	 	WRC
              MEDIA INC.
	 
 	 
 	 
 
	 	By:  	 /s/
	 	Name:
              Richard Nota
	  	Title:  
              EVP, Operations

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	 	 	 
	 	
                THE
                  NORTHWESTERN MUTUAL LIFE

                INSURANCE
                  COMPANY

              
	 	 	 
	 	By:  	 /s/
	 	Name: 
                David A. Barras
	  	
                Title: 
                  Its Authorized Representative

                Address: 
                  The Northwestern Mutual Life

                Insurance
                  Company

                720
                  East Wisconsin Avenue

                Milwaukee,
                  WI  53202

                Attention: 
                  Derek Tyus 

              

      

       

    

    
      
        
          	 	 	 
	 	
                  ARES
                    LEVERAGED INVESTMENT

                  FUND,
                    L.P., a Delaware Limited

                  Partnership

                
	 
 	 
 	 
 
	 	By:	
                  ARES
                    Management, L.P., its
                    General

                  Partner

                   

                
	 	By:  	
                   /s/ 

                
	 	Name: 
                  Bennett Rosenthal
	  	
                  Title: 
                    Vice President

                  Address: 
                    c/o Bennett Rosenthal

                  Ares
                    Leveraged Investment Fund, L.P.

                  1999
                    Avenue of the Stars, Suite 1900

                  Los
                    Angeles, CA 
                    90067 

                

        

      

    

    
       

      
        
          	 	 	 
	 	
                  ARES
                    LEVERAGED INVESTMENT

                  FUND
                    II, L.P., a Delaware Limited

                  Partnership

                
	 
 	 
 	 
 
	 	By:	
                  ARES
                    Agreement II, L.P., its
                    General

                  Partner

                   

                
	 	By:  	
                   /s/

                
	 	Name: 
                  Bennett Rosenthal
	  	
                  Title: 
                    Vice President

                  Address: 
                    c/o Bennett Rosenthal

                  Ares
                    Leveraged Investment Fund, L.P.

                  1999
                    Avenue of the Stars, Suite 1900

                  Los
                    Angeles, CA  90067 

                

        

        
 

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

      
        
          	 	 	 
	 	
                  TCW/CRESCENT
                    MEZZANINE PARTNERS II,  L.P.,

                  a
                    Delaware Limited Partnership

                
	 
 	 
 	 
 
	 	By:  	
                   /s/

                
	 	Name: 
                  John C. Rocchio
	  	
                  Title: 
                    Managing Director

                  Address: 
                    c/o TCW/Crescent Mezzanine, L.L.C.

                  11100
                    Santa Monica Boulevard, Suite 2000

                  Los
                    Angeles, CA  90025 

                

        

         

      

    

    
      
        
          	 	 	 
	 	
                  SHARED
                    OPPORTUNITY FUND IIB, L.L.C., a

                  Delaware
                    Limited Partnership

                
	 	 	
                   

                
	 	By: 	
                  TCW
                    Asset Management Company, 

                  as
                    Investment Advisor

                
	 	 	 
	 	By: 	
                   /s/ 
                    
                    
Name: 
                    John C. Rocchio

                  Title: 
                    Managing Director

                   

                
	 	By:  	
                   /s/ 

                
	 	
                  
Name: 
                  James M. Hassett
	  	
                  Title: 
                    Managing Director

                  Address: 
                    c/o TCW/Crescent Mezzanine, L.L.C.

                  11100
                    Santa Monica Boulevard, Suite 2000

                  Los
                    Angeles, CA  90025 

                

        

         

      

    

    
      
        
          
            
              
                	 	 	 
	 	
                        TCW
                          SHARED OPPORTUNITY FUND III, L.L.C., a

                        Delaware
                          Limited Partnership

                      
	 	 	
                         

                      
	 	By: 	
                        TCW
                          Asset Management Company, 

                        as
                          Investment Advisor

                      
	 	 	 
	 	By: 	
                         /s/
                          
                          
Name: 
                          John C. Rocchio

                        Title: 
                          Managing Director

                         

                      
	 	By:  	
                         /s/

                      
	 	
                        
Name: 
                        James M. Hassett
	  	
                        Title: 
                          Managing Director

                        Address: 
                          c/o TCW/Crescent Mezzanine, L.L.C.

                        11100
                          Santa Monica Boulevard, Suite 2000

                        Los
                          Angeles, CA  90025 

                      

              

               

              
 

              
                
                  
                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

            

          

          
             

             

          

        

        
          
            
              	 	 	 
	 	
                      TCW
                        LEVERAGED INCOME TRUST II, L.P., a

                      Delaware
                        Limited Partnership

                    
	 	 	
                       

                    
	 	By: 	TCW
                      (LINCII), L.P., as General Partner
	 	 	 
	 	By: 	
                      TCW
                        Advisors (Bermuda), LTD., as General

                      Partner

                    
	 	 	 
	 	By: 	
                       
                        /s/ 

                      
                        

                      

                      Name: 
                        James M. Hassett

                      Title:
                        Managing Director

                       

                    
	 	By: 	
                      
                        TCW
                          Investment Management Company,

                        as
                          Investment Advisor

                      

                       

                    
	 	By:  	
                       
                        /s/

                    
	 	
                      
Name: 
                      John C. Rocchio
	  	
                      Title: 
                        Managing Director

                      Address: 
                        c/o TCW/Crescent Mezzanine, L.L.C.

                      11100
                        Santa Monica Boulevard, Suite 2000

                      Los
                        Angeles, CA  90025 

                    

            

             

          

        

      

      
        
          
            
              	 	 	 
	 	
                      TCW
                        LEVERAGED INCOME TRUST, L.P., a

                      Delaware
                        Limited Partnership

                    
	 	 	
                       

                    
	 	By: 	
                      TCW
                        Asset Management Company, 

                      as
                        Investment Advisor

                    
	 	 	 
	 	By: 	
                       /s/ 
                        
                        
Name: 
                        John C. Rocchio

                      Title: 
                        Managing Director

                       

                    
	 	By:	 TCW
                      Advisors (Bermuda), LTD., as General Partner 
	 	 	 
	 	By:  	
                       /s/ 

                    
	 	
                      
Name: 
                      James M. Hassett
	  	
                      Title: 
                        Managing Director

                      Address: 
                        c/o TCW/Crescent Mezzanine, L.L.C.

                      11100
                        Santa Monica Boulevard, Suite 2000

                      Los
                        Angeles, CA  90025 

                    

            

             

            
 

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

          

        

        
           

        

      

       

      
        
          	 	 	 
	 	
                  DLJ
                    INVESTMENT PARTNERS II, L.P., a

                  Delaware
                    Limited Partnership

                
	 	 	 
	 	 	
                  By:
                    DLJ Investment Partners II, Inc., as

                  Managing
                    General Partner

                   

                
	 	By:	
                   /s/  

                  
                    

                  

                  Name: 
                    John M. Moriarty, Jr.

                  Title: 
                    Managing Director

                  Address: 
                    DLJ Investment Partners II, L.P.

                  Eleven
                    Madison Avenue

                  New
                    York, NY  10010

                

        

      

    

    
      
         

        
          
            	 	 	 
	 	
                    DLJ
                      INVESTMENT PARTNERS, L.P., a

                    Delaware
                      Limited Partnership

                  
	 	 	 
	 	 	
                    By:
                      DLJ Investment Partners, Inc., as

                    Managing
                      General Partner

                     

                  
	 	By: 	 /s/ 
	 	 	
                    
                      

                    

                    Name: 
                      John M. Moriarty, Jr.

                    Title: 
                      Managing Director

                    Address: 
                      DLJ Investment Partners II, L.P.

                    Eleven
                      Madison Avenue

                    New
                      York, NY  10010

                  

          

           

        

      

    

    
      
        
          
            
              
                	 	 	 
	 	
                        DLJIP
                          II HOLDINGS, L.P., a Delaware
                          

                        Limited
                          Partnership

                      
	 	 	 
	 	 	
                        By:
                          DLJ Investment Partners, Inc., as

                        General
                          Partner

                         

                      
	 	By: 	 /s/ 
	 	 	
                        
                          

                        

                        Name: 
                          John M. Moriarty, Jr.

                        Title: 
                          Managing Director

                        Address: 
                          DLJ Investment Partners II, L.P.

                        Eleven
                          Madison Avenue

                        New
                          York, NY  10010

                      

              

              
 

              
                
                  
                  

                

                
                  
                  

                  
                    

                  

                

                
                  
                  

                

              

            

          

           

        

      

       

       

      
        
          	 	 	 
	 	
                  DLJ
                    MERCHANT BANKING PARTNERS

                  II,
                    L.P., a Delaware Limited Partnership

                
	 	 	 
	 	 	
                  By: 
                    DL Merchant Banking II, Inc., its

                  Managing
                    General Partner

                
	 	 	 
	 	
                  DLJ
                    MERCHANT BANKING PARTNERS II-A, L.P., a

                  Delaware
                    Limited Partnership

                
	 	 	 
	 	 	By: 
                  DL Merchant Banking II, Inc., its 
                  Managing
                    General Partner

                
	 	 	 
	 	
                  DLJ
                    MILLENNIUM PARTNERS, L.P., a

                  Delaware
                    Limited Partnership 

                
	 	 
	 	 	
                  By: 
                    DLJ Merchant Banking II, Inc., as

                  Managing
                    General Partner

                
	 	 	 
	 	
                  DLJ
                    MILLENNIUM PARTNERS-A, L.P., a

                  Delaware
                    Limited Partnership 

                
	 	 	 
	 	 	
                  By: 
                    DLJ Merchant Banking II, Inc., as

                  Managing
                    General Partner

                
	 	 	 
	 	DLJ
                  MERCHANT BANKING II, INC., as 
                  Advisory
                    General Partner on behalf of DLJ

                  OFFSHORE
                    PARTNERS II, C.V.

                
	 	 	 
	 	 	
                  Signed
                    By or on Behalf of the Foregoing

                  Entities:

                
	 	 	 
	 	By: 	
                   /s/
                    
                    

                  

                  Name:

                  Title:

                

        

        
 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

    
       

       

      
        	
              	 	 
	 	
                DLJ
                  DIVERSIFIED PARTNERS, L.P.,

                a
                  Delaware Limited Partnership

              
	 	 	 
	 	 	
                By: 
                  DLJ Diversified Partners, Inc., as

                Managing
                  General Partner

              
	 	 	 
	 	
                DLJ
                  DIVERSIFIED PARTNERS-A, L.P., a

                Delaware
                  Limited Partnership

              
	 	 	 
	 	 	
                By: 
                  DLJ Diversified Partners, Inc., as

                Managing
                  General Partner

                 

                Signed
                  By or on Behalf of the Foregoing

                Entities:

                 

              
	 	 By:	
                 
                  /s/ 

                
                  

                

                Name:

                Title:

              

      

      
         

        
          	 	 	 
	 	
                  DLJMB
                    FUNDING II, INC., a Delaware

                  corporation

                
	 	 	 
	 	By:  	 /s/
                  
	 	
                  
Name:
	  	Title: 

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

    

     

    
       

      
        
          	 	 	 
	 	
                  DLJ
                    EAB PARTNERS, L.P., a
                    Delaware Limited

                  Partnership

                
	 	 	 
	 	 	
                  By: 
                    DLJ LBO Plans Management

                  Corporation,
                    as General Partner

                
	 	 	 
	 	
                  DLJ
                    ESC II, L.P.,  a Delaware Limited

                  Partnership

                
	 	 	 
	 	 	
                  By: 
                    DLJ LBO Plans Management

                  Corporation,
                    as General Partner

                
	 	 	 
	 	
                  DLJ
                    FIRST ESC, L.P., a Delaware Limited

                  Partnership 

                
	 	 	 
	 	 	
                  By: 
                    DLJ LBO Plans Management

                  corporation,
                    as General Partner

                   

                  Signed
                    By or on Behalf of the Foregoing

                  Entities:

                
	 	 	 
	 	By: 	
                   /s/
                    

                  
                    

                  

                  Name:

                  Title:Stockholders Agreement

     

     

    

       

      EXHIBIT
        10.3

      
        
          

        

      

       

       

      WRC
        MEDIA INC.

       

      _____________

       

      STOCKHOLDERS AGREEMENT

       

      _____________

       

       

       

       

       

      Dated
        as of June 22,
        2005

       

       

       

      
        
          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      TABLE
        OF CONTENTS

    

     

    Page

     

    ARTICLE
      I

     

    Information,
      Voting and Observation Rights

     

    
      
        	
                SECTION
                  1.01.

              	
                Financial
                  and Business Information

              	
                 2

              
	
                SECTION
                  1.02.

              	
                Amendments
                  to Charter; Other Actions

              	
                 4

              
	
                SECTION
                  1.03.

              	
                Board
                  Designees

              	
                 4

              
	
                SECTION
                  1.04.

              	
                Approval
                  Right 

              	
                 6

              
	SECTION
                1.05.	
                Remedies 

              	
                 6

              

      

    

     

     

    ARTICLE
      II

     

    Registration
      Rights

     

    
      
        
          	
                  SECTION
                    2.01.

                	Required
                  Registration	
                   6

                
	
                  SECTION
                    2.02.

                	
                  Incidental
                    Registration

                	
                   9

                
	
                  SECTION
                    2.03.

                	Registration
                  Procedures	
                   11

                
	
                  SECTION
                    2.04.

                	Reasonable
                  Expenses	
                   15

                
	SECTION 2.05.	Registration
                  Expenses	
                   16

                
	SECTION
                  2.06.	Indemnification;
                  Contribution 	
                  16

                
	SECTION
                  2.07. 	Holdback
                  Agreements; Registration Rights to Others 	
                  20

                
	SECTION
                  2.08. 	Availability
                  of Information 	
                  21

                
	SECTION
                  2.09. 	Tag-Along
                  Rights 	
                  21

                
	SECTION
                  2.10. 	Drag-Along
                  Rights	
                  23

                

        

      

       

       

      ARTICLE
        III

       

      Subscription
        Rights

       

      
        
          
            
              	
                      SECTION
                        3.01.

                    	Right
                      To Elect Purchase of Additional Shares	
                       24

                    
	
                      SECTION
                        3.02.

                    	
                      Notice
                        of Sale of Issuable Shares

                    	
                       25

                    
	
                      SECTION
                        3.03.

                    	Notice
                      of Election To Purchase Additional Issuable Shares	
                       25

                    
	
                      SECTION
                        3.04.

                    	Confirmation
                      Notice	
                       25

                    
	SECTION 3.05.	Closing
                      of Sale	
                       26

                    

            

          

           

        

      

       

      ARTICLE
        IV

       

      Restrictions
        on Transfer, Termination and Other Agreements

       

      
        
          	
                  SECTION
                    4.01.

                	Restrictions
                  on Transfer to Transferees	
                   26

                

        

      

       

       

    

     

    

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    

    
       

      
        
          	
                  SECTION
                    4.02.

                	
                  Cooperation
                    by WRC

                	
                   27

                
	
                  SECTION
                    4.03.

                	Legending
                  of Certificates	
                   27

                
	
                  SECTION
                    4.04.

                	Securities
                  Act Restrictions; Legend	
                   27

                
	SECTION 4.05.	Termination
                  of Restrictions	
                   27

                

        

      

       

       

      ARTICLE
        V

       

      Defined
        Terms

       

      
        
          	
                  SECTION
                    5.01.

                	Terms
                  Defined	
                   28

                
	
                  SECTION
                    5.02.

                	
                  Section
                    Headings and Table of Contents and Construction

                	
                   38

                
	
                  SECTION
                    5.03.

                	GOVERNING
                  LAW	
                   38

                

        

      

       

       

      ARTICLE
        VI

       

      Miscellaneous

       

      
        
          
            	
                    SECTION
                      6.01.

                  	Communications	
                    38

                  
	
                    SECTION
                      6.02.

                  	
                    Survival

                  	
                    39

                  
	
                    SECTION
                      6.03.

                  	Successors
                    and Assigns	
                     39

                  
	
                    SECTION
                      6.04.

                  	Amendments
                    and Waivers	
                     39

                  
	SECTION 6.05.	Expenses	
                     40

                  
	SECTION
                    6.06.	Waiver
                    of Jury Trial; Consent to Jurisdiction; etc.	
                    41

                  
	SECTION
                    6.07. 	Indemnification	
                    42

                  
	SECTION
                    6.08. 	Entire
                    Agreement	
                    43

                  
	SECTION
                    6.09. 	Execution
                    in Counterpart	
                    43

                  
	SECTION
                    6.10. 	Reproduction
                    of Documents	
                    43

                  
	SECTION
                    6.11.	Effectiveness
                    of this Agreement 	
                     43

                  

          

        

      

       

       

      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    STOCKHOLDERS
      AGREEMENT

     

    STOCKHOLDERS
      AGREEMENT (as the same may hereafter be amended, supplemented or modified,
      this
“Agreement”),
      dated
      as of June 22, 2005, among WRC MEDIA INC., a Delaware corporation (together
      with
      its successors and permitted assigns, “WRC”);
      EAC
      III L.L.C., a Delaware limited liability company (together with its successors
      and permitted assigns, the “Initial
      Stockholder”);
      THE
      NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY, a Wisconsin corporation (together
      with its successors and permitted assigns, “NML”);
      ARES
      LEVERAGED INVESTMENT FUND, L.P., a Delaware limited partnership, ARES LEVERAGED
      INVESTMENT FUND II, L.P., a Delaware limited partnership (collectively, with
      their respective successors and permitted assigns, the “Ares
      Funds”);
      TCW/CRESCENT MEZZANINE PARTNERS II, L.P., a Delaware limited partnership,
      TCW/CRESCENT MEZZANINE TRUST II, a Delaware business trust, SHARED
      OPPORTUNITY FUND IIB, L.L.C., a Delaware limited liability company,
      TCW
      SHARED OPPORTUNITY FUND III, L.P., a Delaware limited liability company, TCW
      LEVERAGED INCOME TRUST II, L.P., a Delaware limited partnership, TCW
      LEVERAGED INCOME TRUST, L.P., a Delaware limited partnership (collectively,
      with
      their respective successors and permitted assigns, the “TCW
      Funds”);
      DLJ
      INVESTMENT PARTNERS II, L.P.,
      a
      Delaware limited partnership, DLJ
      INVESTMENT PARTNERS, L.P.,
      a
      Delaware limited partnership, and DLJIP
      II
      HOLDINGS, L.P.,
      a
      Delaware limited partnership (collectively, with their respective successors
      and
      permitted assigns, the “DLJ
      IP Funds”
      and
      collectively, with NML, the Ares Funds and the TCW Funds, the “Other
      Exchangers”);
      and
DLJ
      MERCHANT BANKING PARTNERS II, L.P.,
      a
      Delaware limited partnership, DLJ
      MERCHANT BANKING PARTNERS II-A, L.P.,
      a
      Delaware limited partnership, DLJ
      MERCHANT BANKING II, INC., a
      Delaware corporation, as Advisory General Partner on behalf of DLJ
      OFFSHORE PARTNERS II, C.V.,
      a
      Netherlands Antilles limited partnership, DLJ
      DIVERSIFIED PARTNERS, L.P.,
      a
      Delaware limited partnership, DLJ
      DIVERSIFIED PARTNERS-A, L.P.,
      a
      Delaware limited partnership, DLJMB
      FUNDING II, INC.,
      a
      Delaware corporation, DLJ
      MILLENNIUM PARTNERS, L.P.,
      a
      Delaware limited partnership, DLJ
      MILLENNIUM PARTNERS-A, L.P.,
      a
      Delaware limited partnership, DLJ
      EAB
      PARTNERS, L.P.,
      a
      Delaware limited partnership, DLJ ESC II, L.P., a Delaware limited partnership,
      and DLJ
      FIRST
      ESC, L.P.,
      a
      Delaware limited partnership (each, together with its successors and permitted
      assigns, a “DLJMB
      Entity”,
      collectively, the “DLJMB
      Entities”
      and
      collectively, with the Other Exchangers, the “Exchangers”).

     

     

    RECITALS

     

    WHEREAS
      pursuant to a Redemption and Repurchase Agreement dated as of June 22, 2005
      (the
“Redemption
      and Repurchase Agreement”)
      among
      WRC and the Exchangers, WRC has agreed, among other things, to redeem and
      repurchase all of 

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    the
      Exchangers’ shares of 15% Senior Preferred Stock due 2011, par value $0.01 per
      share, of WRC, and warrants to purchase common stock of WRC’s Subsidiaries
      Weekly Reader Corporation, a Delaware corporation (“Weekly
      Reader”),
      and
      CompassLearning, Inc., a Delaware corporation (“CompassLearning”)
      (the
“Redemption
      and Repurchase”)
      in
      exchange for cash, certain indebtedness and a number of shares (the
“Exchange
      Shares”)
      of
      common stock, par value $0.01 per share, of WRC (the “Common
      Stock”)
      to be
      determined such that upon the closing of the Sale, after giving effect to the
      Transactions
      (as
      defined in the Redemption and Repurchase Agreement) and all related transactions
      (including the Note Redemption (as defined in the Redemption and Repurchase
      Agreement)),
      the
      Exchange Shares held by the Exchangers would constitute an aggregate of 30%
      of
      the outstanding Common Stock, calculated on a fully diluted basis prior to
      the
      issuance of New Management Options (as defined in the Redemption and Repurchase
      Agreement).

     

    WHEREAS
      WRC, the Initial Stockholder and the Exchangers wish to define certain of their
      respective rights and obligations with regard to the Exchange Shares (certain
      capitalized terms used in this Agreement are defined in Section 5.01);
      and

     

    WHEREAS
      this Agreement shall become effective if and only if the Closing (as defined
      in
      the Redemption and Repurchase Agreement) shall occur.

     

     

    AGREEMENT

     

    NOW,
      THEREFORE, in consideration of the foregoing and the mutual promises herein
      contained, WRC, the Initial Stockholder and the Exchangers mutually agree as
      follows:

     

    ARTICLE
      I 

     

    Information,
      Voting and Observation Rights

     

    SECTION
      1.01.  Financial
      and Business Information.
      WRC
      shall deliver to each holder of Exchange Shares:

     

    (a) Quarterly
      Financial Statements. 
      As
      soon as practicable after the end of each quarterly fiscal period in each fiscal
      year of WRC (other than the last quarterly fiscal period of each such fiscal
      year), and in any event within 50 days thereafter:

     

     (i) a
      balance
      sheet as at the end of such quarter; and

     

            
      (ii) an
      income
      statement and statement of cash flows for such quarter, and, in the case of
      the
      second and third fiscal quarters of WRC, the comparable information for the
      portion of the fiscal year ending with such quarter and a comparison to relevant
      budget amounts for such quarter;

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    for
      WRC
      and its Subsidiaries (on a consolidated basis), setting forth in each case,
      in
      comparative form, the financial statement for the corresponding period in the
      previous fiscal year, all in reasonable detail, prepared in accordance with
      GAAP
      applicable to quarterly financial statements generally, and certified as
      complete and correct by a Senior Financial Officer; provided
      that,
      should WRC be subject to, or agree with any Person or volunteer to comply with,
      the provisions of Section 13 of the Exchange Act, the filing of WRC’s
      Quarterly Report on Form 10-Q with the SEC within the time period required
      by
      SEC rules after the end of such quarterly fiscal period shall be deemed to
      satisfy the requirements of this Section 1.01(a).

    
       

    

    (b)  Annual
      Financial Statements.
      As soon
      as practicable after the end of each fiscal year of WRC, and in any event within
      95 days thereafter:

     

    (i)  
      a
      consolidated balance sheet as at the end of such year; and

     

    (ii) 
      a
      consolidated income statement and statement of cash flows for such
      year;

     

    for
      WRC
      and its Subsidiaries, together with the notes thereto, setting forth in each
      case, in comparative form, the financial statement for the previous fiscal
      year,
      all in reasonable detail, prepared in accordance with GAAP, and accompanied
      by:

     

    (A) 
      an
      audit
      report thereon of independent certified public accountants of recognized
      national standing, which report shall state that such financial statements
      fairly present in all material respects the consolidated financial condition
      of
      WRC and its Subsidiaries as at such date and the consolidated results of its
      operations and cash flows for such period in conformity with GAAP;
      and

     

    (B)
       a
      certification by a Senior Financial Officer that such financial statements
      are
      complete and correct;

     

    provided
      that,
      should WRC be subject to, or agree with any Person or volunteer to comply with,
      the provisions of Section 13 of the Exchange Act, the filing of WRC’s Annual
      Report on Form 10-K for such fiscal year with the SEC within the time period
      required by SEC rules after the end of such fiscal year shall be deemed to
      satisfy the requirements of this Section 1.01(b).

     

    (c)  SEC
      and Other Reports.
      Promptly
      upon their becoming available:

     

    (i) each
      financial statement, report, notice or proxy statement sent by WRC to
      stockholders generally;

     

    (ii) each
      regular or periodic report (including, without limitation, each Form 10-K,
      Form
      10-Q and Form 8-K), any registration statement which shall have become effective
      (other than any registration statement on Form S-4 or S-8 or any successor
      forms thereto) and each final prospectus and all amendments thereto (other
      than
      any prospectus or amendment relating to a registration 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

    statement
      on Form S-4 or S-8 or any successor forms thereto) filed by WRC with
      the
      SEC or on a publicly available basis with any securities exchange (including,
      without limitation, any electronic stock quotation system); and

     

    (iii)  each
      press release or other statement made available by WRC to the public concerning
      material developments in the business of WRC; 

     

    provided
      that,
      should WRC be subject to, or agree with any Person or volunteer to comply with,
      the provisions of Section 13 of the Exchange Act, the filing with or furnishment
      to the SEC of any report, registration statement, final prospectus or amendment
      thereto or any press release or other statement described in the foregoing
      clause (ii) or (iii) within the time period required by SEC rules for such
      filing shall be deemed to satisfy the requirements of clause (ii) or (iii),
      as
      applicable, of this Section 1.01(c).

    

    (d)  Requested
      Information.
      Prior to
      the Public Market Date, with reasonable promptness, such other data and
      information as from time to time may be reasonably requested by any holder
      of
      Exchange Shares.

     

    SECTION
      1.02. Amendments
      to Charter; Other Actions. 
      (a)  The
      Initial Stockholder and WRC shall not cause or permit:

     

    (i) any
      amendment to the Charter as in effect on the Closing Date;

     

    (ii) any
      voluntary reorganization, transfer of substantial assets, consolidation, merger,
      dissolution, liquidation, issuance or sale of Securities of WRC or any of its
      Subsidiaries; or

     

    (iii) any
      other
      voluntary action;

     

    in
      each
      case that is intended to avoid, or would have the effect of avoiding, the
      observance or performance of any of the terms to be observed or performed
      hereunder by WRC or the Initial Stockholder, but shall at all times in good
      faith assist in the carrying out of all the provisions of this Agreement and
      in
      the taking of all such actions as may be necessary or appropriate in order
      to
      protect the rights of the holders of Exchange Shares against
      impairment.

     

    (b)  The
      Initial Stockholder and WRC shall not, directly or indirectly, cause or permit
      any amendment to the SGC Stockholders Agreement after the Closing (as defined
      in
      the Redemption and Repurchase Agreement) or enter into any other agreement
      or
      arrangement after the Closing that entitles SGC Capital Partners I L.L.C. to
      any
      rights that are more favorable than the rights granted to the Exchangers
      hereunder.

     

    SECTION
      1.03.  Board
      Designees. 
      (a) 
      For
      so
      long as the DLJMB Entities shall collectively hold 5% or more of the outstanding
      shares of Common Stock, the Initial Stockholder and each Exchanger shall vote
      all of their shares of Common Stock, at each regular or special meeting of
      the
      shareholders of WRC called for the purpose of filling positions on the Board
      of
      Directors, or in any written consent executed 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    in
      lieu
      of such a meeting of shareholders, and shall take all actions necessary to
      ensure the election to the Board of Directors of one individual designated
      by
      DLJMB (the “DLJMB
      Board Designee”).

     

    (b) If
      a
      DLJMB Board Designee shall cease to serve as a director of WRC for any reason
      at
      a time when the DLJMB Entities collectively hold 5% or more of the outstanding
      shares of Common Stock, the Initial Shareholder and each Exchanger shall vote
      all of their shares of Common Stock, and WRC shall take all actions necessary,
      to ensure the vacancy resulting thereby shall be filled by another individual
      designated by DLJMB. Once serving on the Board of Directors, a DLJMB Board
      Designee shall not be removed from office without the consent of the DLJMB
      Entities other than for cause. In the event that a DLJMB Board Designee is
      unable to attend a meeting of the Board of Directors, DLJMB may designate a
      representative to attend such meeting as a non-voting observer
      only.

     

    (c)  WRC
      shall
      take all actions necessary to cause the DLJMB Board Designee to be appointed
      to
      the compensation committee and the audit committee of the Board of Directors.
      For so long as DLJMB has the right to appoint a DLJMB Board Designee, the Board
      of Directors shall not generally delegate its authority to conduct the business
      of WRC to a committee of such Board of Directors; provided,
      that
      the foregoing shall not prohibit delegation of authority to a committee for
      a
      specific purpose. 

     

    (d)  WRC
      shall
      reimburse the DLJMB Board Designee, so long as the DLJMB Board Designee is
      serving on the Board of Directors, for all reasonable out-of-pocket expenses
      incurred in connection with the DLJMB Board Designee’s services as a
      director.

     

    (e)  WRC
      shall
      obtain and cause to be maintained in effect so long as a DLJMB Board Designee
      is
      serving on the Board of Directors, with financially sound insurers, a policy
      of
      directors’ and officers’ liability insurance covering each of the members of the
      Board of Directors (including, without limitation, each DLJMB Board Designee)
      in
      an amount of at least $5,000,000 per occurrence.

     

    (f)  The
      Charter and the by-laws of WRC and other organizational documents of WRC shall
      at all times, to the fullest extent permitted by law, provide for
      indemnification of, advancement of expenses to, and limitation of the personal
      liability of, the members of the Board of Directors and such other persons,
      if
      any, who, pursuant to a provision of such Charter, by-laws or other
      organizational documents, exercise or perform any of the powers or duties
      otherwise conferred or imposed upon members of the Board of Directors. Except
      as
      required pursuant to applicable law or regulation, such provisions may not
      be
      amended, repealed or otherwise modified in any manner adverse to any member
      of
      the Board of Directors until at least six years following the date on which
      DLJMB is entitled to nominate a DLJMB Board Designee.

     

    (g) The
      Board
      of Directors shall meet in person at least quarterly, and shall meet at such
      other times as called by any two directors.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    SECTION
      1.04.  Approval Right. Without the written approval of the
      DLJMB Entities, WRC shall not, and shall not cause or permit any Subsidiary
      to,
      undertake any of the following:

     

    (a) the
      entry
      into or amendment of any transaction or arrangement (excluding compensation
      and
      benefit arrangements of employees in the ordinary course of business) between
      WRC or any Subsidiary, on the one hand, and any Affiliate (other than a
      Subsidiary) of WRC, or any partner, shareholder, director or officer of WRC
      or
      any such Affiliate, including any entity affiliated with Ripplewood Partners,
      on
      the other hand, such approval not to be unreasonably withheld or delayed;
      or

     

    (b) the
      entry
      into of any agreement with Ripplewood Partners or any of its Affiliates or
      the
      amendment, modification or replacement of:

     

    (i) the
      Management Agreement, dated as of November 17, 1999, between
      CompassLearning and Ripplewood Partners, or

     

    (ii) the
      Management Agreement, dated as of November 17, 1999, between Weekly Reader
      and
      Ripplewood Partners, if any such agreement, amendment, modification or
      replacement would result in Ripplewood Partners or any of its Affiliates
      receiving any management or similar fees from WRC or any of its
      Subsidiaries.

     

    SECTION
      1.05. Remedies.
      WRC, the
      Initial Stockholder and the Exchangers agree that the remedies of the holders
      of
      Exchange Shares at law in respect of any breach by WRC or the Initial
      Stockholder of their obligations pursuant to Article I would be inadequate
      and that, upon any finding by any court of competent jurisdiction that WRC
      or
      the Initial Stockholder has breached any such obligation, the holders of
      Exchange Shares shall be entitled to, and WRC and the Initial Stockholder agree
      that they will not contest, upon any such finding of any such breach, the award
      of specific performance and injunctive relief in favor of such holders of
      Exchange Shares and compelling WRC and the Initial Stockholder to comply with
      such obligations.

     

    ARTICLE
      II 

     

    Registration
      Rights

     

    SECTION
      2.01.  Required
      Registration. 
      (a)
       Filing
      of Registration Statement. 
      Subject to Section 2.01(f), WRC will, upon the written request of the DLJMB
      Entities or the Initial Stockholder (the Person so requesting, the “Initiating
      Holder”)
      given
      at any time following 12 months after the Initial Public Offering Date
      (provided,
      that if
      any other holder of Common Stock is granted a demand registration right with
      respect to such Common Stock applicable commencing on an earlier date, the
      DLJMB
      Entities’ and the Initial Stockholder’s demand registration rights shall be
      applicable commencing on such earlier date), requesting that WRC effect the
      registration under the Securities Act of all or part of such Initiating Holder’s
      Registrable Securities and specifying the Registrable Securities to be sold
      and
      the intended method of disposition 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

    thereof,
      promptly give written notice of such requested registration to all holders
      of
      Registrable Securities, and thereupon will use its reasonable best efforts
      to
      effect the registration (the “Required
      Registration”)
      under
      the Securities Act of:

     

    (i) the
      Registrable Securities that WRC has been so requested to register by the
      Initiating Holder; and

     

    (ii) subject
      to Section 2.01(d), all other Registrable Securities that WRC has been requested
      to register by the holders thereof by written request given to WRC by the
      holders which have the right to request such registration within 30 days after
      the giving of such written notice by WRC (which request shall specify the
      Registrable Securities to be sold and the intended method of disposition of
      such
      Registrable Securities);

     

    all
      to
      the extent required to permit the disposition (in accordance with the intended
      method thereof as aforesaid) of the Registrable Securities of the Initiating
      Holder so to be registered.

     

    (b)
       Time
      for Filing and Effectiveness. 
      On
      or before the date which is 90 days after the request for such registration,
      WRC
      shall file, or cause to be filed, with the SEC all documents and materials
      necessary to effect the Required Registration with respect to all Registrable
      Securities to be so registered, and shall use its reasonable best efforts to
      cause such Required Registration to become effective as promptly as practicable
      after the filing thereof, but in no event later than the day which is 180 days
      after the request for such registration; provided,
      however,
      that
      WRC may delay filing or effecting any Required Registration or suspend any
      effective registration statement for not more than an aggregate of 60 days
      in
      any 12 month period if in the good faith judgment of the Board of Directors
      such
      Required Registration or registration statement being filed, effected or
      effective, as applicable, at such time would impair or interfere with in any
      material respect any contemplated financing, acquisition, disposition, corporate
      reorganization or other similar, material, corporate transaction or development
      involving WRC or any Subsidiary or any of its or their Affiliates or would
      require premature disclosure thereof.

     

    (c)
       Selection
      of Underwriters. 
      If
      Registrable Securities that WRC has been requested to register pursuant to
      a
      Required Registration are to be disposed of in an underwritten public offering,
      the underwriters (including, without limitation, the lead and managing
      underwriters) of such offering shall be one or more underwriting firms of
      recognized standing selected by the Initiating Holder and reasonably acceptable
      to WRC (it being agreed by the parties that Credit Suisse First Boston LLC
      shall
      be acceptable to WRC). For the avoidance of doubt, the holders of Registrable
      Securities other than the Initiating Holder shall have no right to select the
      underwriters of any Required Registration.

     

    (d)  Priority
      on Required Registrations. 
      If
      the managing underwriter shall advise WRC in writing (with a copy to each holder
      of Registrable Securities requesting sale) that, in such underwriter’s opinion,
      the number of Registrable Securities requested 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    to
      be
      included in such Required Registration exceeds the number that can be sold
      in
      such offering within the price range acceptable to the Initiating Holder that
      the Initiating Holder shall furnish to such underwriter upon request (such
      writing to state the basis of such opinion and the approximate number of
      Registrable Securities that may be included in such offering without such
      effect), WRC will include in such Required Registration, to the extent of the
      number of Registrable Securities that WRC is so advised by the managing
      underwriter can be sold in such offering:

     

    (i)
       first,
      Registrable Securities requested to be sold by the Initiating Holder;
provided,
      however,
      that if
      the Initial Stockholder is the Initiating Holder then Registrable Securities
      requested to be sold by the Exchangers shall be included with the Registrable
      Securities requested to be sold by the Initial Stockholder (pro
      rata
      based on
      the number of Registrable Securities requested to be sold by the Initial
      Stockholder and the DLJMB Entities;
      and
provided,
      however,
      that
      with respect to any such registration, to the extent that SGC holds Securities
      of the same class as the Registrable Securities being sold by the Initial
      Stockholder and SGC has requested, pursuant to the SGC Stockholders Agreement,
      any of such Securities to be included in such registration, the Registrable
      Securities requested to be sold by the Exchangers shall be included pro
      rata
      based on
      the number of Registrable Securities requested be sold by the Initial
      Stockholder, the DLJMB Entities and SGC);

     

    (ii)
       second,
      subject
      to the first proviso in Section 2.01(d)(i) above, Registrable Securities
      requested to be sold by the holders thereof other than the Initiating Holder
      (pro
      rata
      based on
      the number of Registrable Securities so requested to be sold by such holders);
      and

     

    (iii)
       third,
      all
      other Securities proposed to be registered by WRC and any Other Stockholders,
      in
      such proportions as WRC and such Other Stockholders shall agree.

     

    (e)  When
      Required Registration Is Deemed Effected.
      A
      Required Registration pursuant to this Section 2.01 shall not be deemed to
      have
      been effected for purposes of Section 2.01(f) hereof if:

     

    (i) the
      registration statement related thereto does not become effective and remain
      effective for a period of at least 180 days (not counting any days during which
      a stop order or a suspension pursuant to Section 2.01(b) was in effect
      with
      respect to such registration statement) after the date such registration
      statement becomes effective; provided,
      however,
      that
      WRC shall have no obligation to keep effective such registration statement
      at
      any time after all Registrable Securities included in such offering have been
      sold;

     

    (ii) the
      Initiating Holder withdraws its request for registration in its entirety at
      any
      time because the Initiating Holder reasonably believes that the registration
      statement or any prospectus related thereto contained an untrue statement of
      a
      material fact or omitted to state a material fact required to be stated

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    therein
      or necessary to make the statements made therein (in the case of any prospectus,
      in light of the circumstances under which they were made) not misleading,
      notified WRC of such fact and requested that WRC correct such alleged
      misstatement or omission, and WRC has refused to correct such alleged
      misstatement or omission;

     

    (iii) any
      customary conditions to closing specified in the purchase agreement or
      underwriting agreement entered into in connection with such Required
      Registration are not satisfied, other than by reason of any breach by any holder
      of any Registrable Securities that were to have been registered and sold of
      its
      obligations thereunder or hereunder; or

     

    (iv) if,
      after
      it has become effective, such registration is interfered with for any reason
      by
      any stop order, injunction or other order or requirement of the SEC or any
      other
      governmental agency or any court, and the result of such interference is to
      prevent the Initiating Holder from disposing of at least 75% of the Registrable
      Securities included in such registration pursuant to Section 2.01(a) in
      accordance with the intended methods of distribution.

     

    (f)  Limitation
      on Number and Size of Required Registrations.
      WRC
      shall be required to effect only two Required Registrations requested by the
      DLJMB Entities, as Initiating Holder pursuant to this Agreement. WRC shall
      be
      required to effect any number of Required Registrations requested by the Initial
      Stockholder pursuant to this Section 2.01. WRC shall not be required to effect
      any Required Registration pursuant to this Agreement during the period starting
      with the date of the decision by the Board of Directors to register shares
      of
      Common Stock on behalf of WRC (provided that a registration statement is filed
      within 30 days of such decision and becomes effective within 120 days of such
      filing) or the receipt by WRC of a request for a Required Registration and
      ending on a date 180 days following the effective date of a registration
      statement related to a Required Registration or an Incidental Registration.
      WRC
      shall not be required to effect any “shelf” registration under Rule 415 under
      the Securities Act (or any successor to such rule) pursuant to a Required
      Registration. WRC shall also not be required to effect any Required Registration
      unless either:

     

    (i)
       the
      gross
      aggregate offering price of all Securities to be included in such Required
      Registration (including, without limitation, Securities offered by the holders
      of Registrable Securities, WRC and any Other Stockholders proposed to be
      registered under such Required Registration) shall exceed $30,000,000;
      or

     

    (ii)
       such
      Required Registration includes all Registrable Securities held by the Initiating
      Holder of the class of such Registrable Securities proposed to be sold in such
      Required Registration.

     

    SECTION
      2.02.  Incidental
      Registration. 
      (a)
       Filing
      of Registration Statement. 
      If
      WRC at any time proposes to register any of its Capital Stock or Rights (an
      “Incidental
      Registration”)
      under
      the Securities Act (other than pursuant to Section 2.01 or pursuant
      to a
      registration statement on Form S-4 or Form S-8 or any successor
      forms

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    thereto),
      for sale in a Public Offering, including, without limitation, in connection
      with
      its Initial Public Offering, it will each such time give prompt written notice
      to all holders of Registrable Securities of its intention to do so, which notice
      shall be given to all such holders at least 20 Business Days prior to the date
      that a registration statement relating to such registration is proposed to
      be
      filed with the SEC. Upon the written request of any such holder to include
      its
      Registrable Securities under such registration statement (which request shall
      be
      made within ten Business Days after the receipt of any such notice and shall
      specify the Registrable Securities intended to be disposed of by such holder),
      WRC will use its reasonable best efforts to effect the registration of all
      Registrable Securities that WRC has been so requested to register by such
      holder; provided,
      however,
      that
      if, at any time after giving written notice of its intention to register any
      Capital Stock or Rights and prior to the effective date of the registration
      statement filed in connection with such registration, WRC shall determine for
      any reason not to register such Capital Stock or Rights, WRC may, at its
      election, give written notice of such determination to each such holder and,
      thereupon, shall be relieved of its obligation to register any Registrable
      Securities of such holders in connection with such registration.

     

    (b)  Selection
      of Underwriters.
      Notice
      of WRC’s intention to register such Capital Stock or Rights shall designate the
      proposed underwriters of such offering (which shall be one or more underwriting
      firms of established reputation reasonably acceptable to the Requisite Holders)
      and shall contain WRC’s agreement to use its reasonable best efforts, if
      requested to do so, to arrange for such underwriters to include in such
      underwriting the Registrable Securities that WRC has been so requested to
      register pursuant to this Section 2.02, it being understood that such
      holders of Registrable Securities shall have no right to select different
      underwriters for the disposition of their Registrable Securities.

     

    (c)  Priority
      on Incidental Registrations.
      If the
      managing underwriter shall advise WRC in writing (with a copy to each holder
      of
      Registrable Securities requesting sale) that, in such underwriter’s opinion, the
      number of Registrable Securities requested to be included in such Incidental
      Registration by such holders of Registrable Securities exceeds the number that
      can be sold in such offering within a price range acceptable to WRC (such
      writing to state the basis of such opinion and the approximate number of
      Registrable Securities that may be included in such offering without such
      effect), WRC will include in such Incidental Registration, to the extent of
      the
      number of Registrable Securities that WRC is so advised by the managing
      underwriter can be sold in such offering:

     

    (i) in
      the
      case of any registration initiated by WRC for the purpose of selling Capital
      Stock or Rights for its own account:

     

    (A) first,
      Securities that WRC proposes to issue and sell for its own account;
      and

     

    (B) second,
      all
      Registrable Securities requested to be sold by the holders thereof pursuant
      to
      this Section 2.02 and all Securities proposed to be registered by the
      Other
      Stockholders which have the right to request 

     

     

    
      
        
        

      

      
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    such
      registration, pro
      rata
      among
      such holders on the basis of the number of Securities requested to be so
      registered by such holders; and

     

    (ii) in
      the
      case of a registration initiated by any Other Stockholder pursuant to demand
      or
      Required Registration rights in favor of such Other Stockholder and provided
      to
      such Other Stockholder in compliance with Section 2.07(b):

     

    (A) first,
      Securities requested to be sold by the Other Stockholders requesting such
      Incidental Registration;

     

    (B) second,
      Registrable Securities requested to be sold by the holders thereof pursuant
      to
      this Section 2.02 and all Securities proposed to be registered by Other
      Stockholders which have the right to request such registration other than those
      requesting such Incidental Registration, pro
      rata
      among
      such holders on the basis of the number of Securities requested to be so
      registered by such holders; and

     

    (C) third,
      Securities that WRC proposes to issue and sell for its own account.

     

    SECTION
      2.03.  Registration
      Procedures. 
      WRC will use its reasonable best efforts to effect each Registration, and to
      cooperate with the sale of such Registrable Securities in accordance with the
      intended method of disposition thereof as quickly as practicable, and WRC will,
      as expeditiously as reasonably possible:

     

    (a) subject,
      in the case of an Incidental Registration, to the proviso to
      Section 2.02(a), prepare and file with the SEC the registration statement
      and use its reasonable best efforts to cause the Registration to become
      effective; provided,
      however,
      that:

     

    (i) before
      filing any original registration statement, WRC will furnish to the holders
      of
      the Registrable Securities covered by such registration statement, their
      counsel, and the underwriters, if any, and their counsel, copies of reasonably
      complete drafts of all such documents proposed to be filed at least 15 days
      prior thereto, which drafts will be subject to the reasonable review, within
      such 15 day period, of such holders, their counsel and the underwriters;
      and

     

    (ii) within
      a
      reasonable time (giving effect to the nature of such document and, in the case
      of any amendment or supplement, the extent of the changes thereto) before filing
      any amendment to any registration statement or any prospectus or supplement
      thereto, WRC will furnish to the holders of the Registrable Securities covered
      by such registration statement or prospectus, their counsel, and the
      underwriters, if any, and their counsel, copies of all such documents proposed
      to be filed, which documents will be subject to the reasonable review, within
      such period, of such holders, their counsel and the underwriters;

     

     

     

    
      
        
        

      

      
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    and
      WRC
      will not file any registration statement or amendment thereto or any prospectus
      or any supplement thereto to which the Requisite Holders shall reasonably object
      within the applicable review period (the reasonableness of any such objection
      by
      any holder or its counsel to be viewed, in the case of an Incidental
      Registration, in light of the potential liability of such holder in respect
      of
      misstatements in and omissions from the registration statement or prospectus
      and
      the holder’s potential obligations under Section 2.06);

     

    (b) subject,
      in the case of an Incidental Registration, to the proviso to
      Section 2.02(a), prepare and file with the SEC such amendments and
      post-effective amendments to any registration statement and any prospectus
      used
      in connection therewith as may be necessary to keep such registration statement
      continuously effective until the earlier of:

     

    (i) such
      time
      as all Registrable Securities registered thereby have been disposed of in
      accordance with the intended method of distribution; and

     

    (ii) the
      date
      180 days after the date such registration statement becomes
      effective;

     

    (but
      in
      any event not before the expiration of any longer period required under the
      Securities Act, including the rules and regulations promulgated thereunder)
      and
      to comply with the provisions of the Securities Act with respect to the
      disposition of all Registrable Securities covered by such registration
      statement; and cause the prospectus to be supplemented by any required
      prospectus supplement, and as so supplemented to be filed pursuant to Rule
      424
      under the Securities Act;

     

    (c) furnish
      to each holder of Registrable Securities included in such Registration and
      the
      underwriter or underwriters, if any, without charge, at least one signed copy
      of
      the registration statement and any post-effective amendment thereto, upon
      request, and such number of conformed copies thereof and such number of copies
      of the prospectus (including, without limitation, each preliminary prospectus
      and each prospectus filed under Rule 424 under the Securities Act), any
      amendments or supplements thereto and any documents incorporated by reference
      therein, as such holder or underwriter may reasonably request in order to
      facilitate the disposition of the Registrable Securities being sold by such
      holder (it being understood that WRC consents to the use of the prospectus
      and
      any amendment or supplement thereto by each holder of Registrable Securities
      covered by such registration statement and the underwriter or underwriters,
      if
      any, in connection with the offering and sale of the Registrable Securities
      covered by the prospectus or any amendment or supplement thereto);

     

    (d) notify
      each holder of the Registrable Securities of any stop order or other order
      suspending the effectiveness of any registration statement, issued or threatened
      by the SEC in connection therewith, and use commercially reasonable efforts
      to
      attempt to prevent the entry of such stop order or to remove it or obtain
      withdrawal of it at the earliest possible moment if entered;

     

     

    
      
        
        

      

      
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    (e) 
      if
      requested by the managing underwriter or underwriters, if any, or any holder
      of
      Registrable Securities in connection with any sale pursuant to a registration
      statement, promptly incorporate in the prospectus supplement or post-effective
      amendment for such sale information relating to such underwriting as the
      managing underwriter or underwriters, if any, or such holder reasonably requests
      to be included therein; and make all required filings of such prospectus
      supplement or post-effective amendment as soon as practicable after being
      notified of the matters incorporated in such prospectus supplement or
      post-effective amendment; 

     

    (f)  on
      or
      prior to the date on which a Registration is declared effective, use its
      reasonable best efforts to register or qualify, and cooperate with the holders
      of Registrable Securities included in such Registration, the underwriter or
      underwriters, if any, and their counsel, in connection with the registration
      or
      qualification of the Registrable Securities covered by such Registration for
      offer and sale under the securities or “blue sky” laws of each state and other
      jurisdiction of the United States as any such holder or the managing
      underwriter, if any, reasonably requests in writing; use commercially reasonable
      efforts to keep each such registration or qualification effective, including,
      without limitation, through new filings, or amendments or renewals, during
      the
      period such registration statement is effective (in the case of an Incidental
      Registration) or required to be kept effective (in the case of a Required
      Registration); and to do all other acts or things necessary or advisable to
      enable the disposition in all such jurisdictions reasonably requested of the
      Registrable Securities covered by such Registration; provided,
      however,
      that
      WRC will not be required to qualify generally to do business in any jurisdiction
      where it is not then so qualified or to take any action which would subject
      it
      to taxation or general service of process in any such jurisdiction where it
      is
      not then so subject;

     

    (g)
       in
      connection with any sale pursuant to a Registration, cooperate with the holders
      of Registrable Securities and the managing underwriter or underwriters, if
      any,
      to facilitate the timely preparation and delivery of certificates (not bearing
      any restrictive legends) representing Securities to be sold under such
      Registration, and enable such Securities to be in such denominations and
      registered in such names as the managing underwriter or underwriters, if any,
      or
      such holders may request;

     

    (h)  use
      its
      reasonable best efforts to cause the Registrable Securities to be registered
      with or approved by such other governmental agencies or authorities within
      the
      United States and having jurisdiction over WRC as may be reasonably necessary
      to
      enable each holder thereof or the underwriter or underwriters, if any, to
      consummate the disposition of such Registrable Securities;

     

    (i)  enter
      into underwriting agreements in customary form and take such other customary
      actions as are reasonably necessary in order to expedite or facilitate the
      disposition of such Registrable Securities;

     

    (j)  use
      its
      reasonable best efforts to obtain:

     

    
      
        
        

      

      
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    (i) at
      the
      time of effectiveness of each Registration, a “comfort letter” from WRC’s
      independent certified public accountants covering such matters of the type
      customarily covered by “cold comfort letters” as the underwriters in an
      underwritten offering reasonably request; and

     

    (ii) at
      the
      time of any underwritten sale pursuant to the registration statement, a
“bring-down comfort letter”, dated as of the date of such sale, from WRC’s
      independent certified public accountants covering such matters of the type
      customarily covered by comfort letters as the underwriters reasonably
      request;

     

    (k)
       use
      its
      reasonable best efforts to obtain, at the time of effectiveness of each
      Registration and at the time of any sale pursuant to each Registration, such
      opinion or opinions, addressed to the underwriters in an underwritten offering
      as they may reasonably request, from counsel for WRC in customary
      form;

     

    (l)  promptly
      notify each seller of Registrable Securities covered by such Registration,
      upon
      discovery that the prospectus included in such Registration, as then in effect,
      includes an untrue statement of a material fact or omits to state any material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not misleading, and
      promptly prepare, file with the SEC and furnish to such seller or holder a
      reasonable number of copies of a supplement to or an amendment of such
      prospectus as may be necessary so that, as thereafter delivered to the
      purchasers or prospective purchasers of such Securities, such prospectus shall
      not include an untrue statement of a material fact or omit to state a material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not
      misleading;

     

    (m)  otherwise
      use its reasonable best efforts to comply with all applicable rules and
      regulations of the SEC, and make generally available to its security holders
      (as
      contemplated by Section 11(a) under the Securities Act) an earnings
      statement satisfying the provisions of Rule 158 under the Securities
      Act no
      later than 90 days after the end of the 12-month period beginning with the
      first
      month of WRC’s first fiscal quarter commencing after the effective date of the
      registration statement, which statement shall cover said 12-month
      period;

     

    (n)  provide
      and cause to be maintained a transfer agent and registrar for all Registrable
      Securities covered by each Registration from and after a date not later than
      the
      effective date of such Registration; and

     

    (o)  use
      its
      reasonable best efforts to cause all Registrable Securities that are shares
      of
      Common Stock covered by each Registration to be listed subject to notice of
      issuance, prior to the date of first sale of such Registrable Securities
      pursuant to such Registration, on each securities exchange on which the Common
      Stock is then listed; and, if the Common Stock is not so listed, to use its
      reasonable best efforts to cause all such Registrable Securities covered by
      each
      Registration to be designated as National Market System Securities, if the
      Common Stock is so designated (and, if the Common Stock is listed on the Nasdaq
      National Market or the Nasdaq SmallCap Market, to cause all such 

     

     

    
      
        
        

      

      
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    Registrable
      Securities covered by each Registration to be so listed); and, if the Common
      Stock is not so designated, to arrange for at least two market makers to
      register with the NASD as such with respect to such Registrable
      Securities.

     

    WRC
      may
      require each holder of Registrable Securities that will be included in such
      Registration to furnish WRC with such information in respect of such holder
      of
      Registrable Securities that will be included in such Registration as WRC may
      reasonably request in writing and as is required by applicable laws or
      regulations. If a holder of Registrable Securities fails to provide such
      information, WRC shall be entitled to exclude the Registrable Securities of
      such
      holder from any Registration thereunder. If the offering of the Registrable
      Securities is to be underwritten, WRC may require that the holders of the
      Registrable Securities participating in such Registration Statement enter into
      a
      reasonable underwriting agreement in customary form; provided,
      however,
      that
      the holders of the Registrable Securities shall not be required to make any
      representation, warranty or covenant other than customary representations and
      warranties concerning the due authority of such holder of Registrable Securities
      to sell such Registrable Securities and execute and deliver such underwriting
      agreement, the holder’s good title to the Registrable Securities and the
      warranties implied in connection with such transfer under Section 8-108(a)
      of the Uniform Commercial Code of the State of New York, and shall not be
      required to provide any indemnity or contribution rights to any underwriter
      on
      terms any more favorable than those provided for in
      Section 2.06.

     

    SECTION
      2.04.  Reasonable
      Investigation. 
      WRC shall:

     

    (a)  give
      the
      holders of Registrable Securities, their underwriters, if any, and their
      respective counsel and accountants the opportunity to participate in the
      preparation of the registration statement, each prospectus included therein
      or
      filed with the SEC and each amendment thereof or supplement
      thereto;

     

    (b)  give
      each
      such holder and underwriter reasonable opportunities to discuss the business
      of
      WRC and its Subsidiaries with its officers, counsel and the independent public
      accountants who have certified its financial statements;

     

    (c)  make
      available for inspection by any holder of Registrable Securities included in
      any
      Registration, any underwriter participating in any disposition pursuant to
      any
      Registration, and any attorney, accountant or other agent retained by any such
      holder or underwriter, all financial and other records, pertinent corporate
      documents and Properties of WRC and its Subsidiaries; and

     

    (d)  cause
      each of WRC’s and its Subsidiaries’ officers, directors and employees to supply
      all information reasonably requested by any such Person in connection with
      such
      Registration;

     

    in
      each
      such case, as shall be reasonably necessary (in light of the potential liability
      of such holder or underwriter in respect of misstatements in and omissions
      from
      the registration statement or prospectus and any holder’s obligations under
      Section 2.06) to enable it to conduct a “reasonable investigation” within
      the meaning of Section 11(b)(3) 

     

     

    
      
        
        

      

      
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    of
      the
      Securities Act and to satisfy the requirement of reasonable care imposed by
      Section 12(a)(2) of the Securities Act.

     

    WRC
      agrees to include in the registration statement and each amendment thereto,
      and
      in each preliminary prospectus, prospectus or prospectus supplement, all
      material information requested to be included by any holder of Registrable
      Securities or underwriter, in each case, to the extent required to be contained
      therein or necessary to correct any misstatement of fact or necessary to make
      any statement contained therein, in light of the circumstances under which
      it
      was made, not misleading. Each holder of Registrable Securities agrees to keep
      confidential and not disclose (other than in connection with disclosure by
      WRC
      pursuant to the foregoing sentence) to any Person (other than its officers,
      directors, employees and trustees who need to know such information and other
      than any attorney, agent, adviser or accountant who makes the agreement set
      forth in this paragraph) any information WRC reasonably determines to be
      confidential and so notifies in writing such holder, unless:

     

    (i)
       the
      release of such information is necessary to avoid or correct a misstatement
      of a
      fact or omission of a fact required to be stated in any such registration
      statement or any amendment thereto, or in any preliminary prospectus, prospectus
      or prospectus supplement, or necessary to make the statements made therein,
      in
      light of the circumstances under which they were made, not
      misleading;

     

    (ii)
       the
      release of such records is ordered pursuant to a subpoena or other order from
      a
      court of competent jurisdiction;

     

    (iii)
       such
      disclosure is requested by any governmental authority or self-regulatory
      organization having or alleging jurisdiction over such holder of Registrable
      Securities, and either such governmental authority or self-regulatory
      organization agrees to maintain the confidentiality of such information or
      such
      holder gives WRC reasonable advance written notice of such intended disclosure,
      so as to permit WRC to seek a protective order or similar relief;

     

    (iv)
       WRC
      otherwise consents; or

     

    (v)
       such
      information becomes generally available to the public other than through a
      breach of this Agreement by such holder.

     

    SECTION
      2.05.  Registration
      Expenses. 
      WRC shall pay all Registration Expenses in connection with each Registration
      of
      Registrable Securities, including, without limitation, any such registration
      not
      effected by WRC.

     

    SECTION
      2.06.  Indemnification;
      Contribution. 
      (a)
       Indemnification
      by WRC. 
      In connection with any registration statement or any offering of Securities
      pursuant thereto, WRC shall indemnify, to the fullest extent permitted by law,
      each holder of Registrable Securities, its Affiliates, officers, directors,
      partners, employees, trustees and agents, if any, and each Person, if any,
      who
      controls such holder within the meaning of Section 15 of the Securities
      Act
      or Section 20 of the Exchange Act, against 

     

     

    
      
        
        

      

      
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    all
      losses, claims, damages, liabilities (or proceedings in respect thereof) and
      expenses (under the Securities Act or common law or otherwise), joint or
      several, resulting from any violation by WRC of the provisions of the Securities
      Act or the Exchange Act or any untrue statement or alleged untrue statement
      of a
      material fact contained in any registration statement or prospectus (and as
      amended or supplemented if amended or supplemented) or any preliminary
      prospectus or caused by any omission or alleged omission to state therein a
      material fact required to be stated therein or necessary to make the statements
      therein (in the case of any prospectus, in light of the circumstances under
      which they were made) not misleading, except to the extent that such losses,
      claims, damages, liabilities (or proceedings in respect thereof) or expenses
      are
      caused by any such untrue statement or alleged untrue statement contained in
      or
      by any omission or alleged omission from information concerning any holder
      furnished in writing to WRC by such holder expressly for use therein. If the
      offering pursuant to any registration statement provided for under this
      Agreement is made through underwriters, no action or failure to act on the
      part
      of such underwriters (whether or not such underwriter is an Affiliate of any
      holder of Registrable Securities) shall affect the obligations of WRC to
      indemnify any holder of Registrable Securities or any other Person pursuant
      to
      the preceding sentence. If the offering pursuant to any registration statement
      provided for under this Agreement is made through underwriters, WRC agrees,
      to
      the extent required by such underwriters, to enter into an underwriting or
      other
      agreement providing for indemnity of such underwriters, their officers,
      directors and agents, if any, and each Person, if any, who controls such
      underwriters within the meaning of Section 15 of the Securities Act
      or
      Section 20 of the Exchange Act to the same extent as hereinbefore provided
      with
      respect to the indemnification of the holders of Registrable Securities;
provided,
      however,
      that
      WRC shall not be required to indemnify any such underwriter, or any officer
      or
      director of such underwriter or any Person who controls such underwriter within
      the meaning of Section 15 of the Securities Act or Section 20 of the
      Exchange Act, to the extent that the loss, claim, damage, liability (or
      proceedings in respect thereof) or expense for which indemnification is claimed
      results from such underwriter’s failure to send or give a copy of a final
      prospectus or an amended or supplemented final prospectus to the Person
      asserting an untrue statement or alleged untrue statement or omission or alleged
      omission at or prior to the written confirmation of the sale of Registrable
      Securities to such Person if such statement or omission was corrected in such
      final prospectus or amended or supplemented final prospectus prior to such
      written confirmation and the underwriter was provided with such final prospectus
      or amended or supplemented final prospectus.

     

    (b)
       Indemnification
      for Controlling Person Liability. 
      In
      addition to the indemnification provided for in Section 2.06(a), WRC
      shall
      indemnify each holder of Registrable Securities, its Affiliates, officers,
      directors, partners, employees, trustees and agents, if any, and each Person,
      if
      any, who controls such holder within the meaning of Section 15 of the
      Securities Act or Section 20 of the Exchange Act, against all losses,
      claims, damages, liabilities (or proceedings in respect thereof) and expenses,
      joint or several, in each case, under the Securities Act, the Exchange Act,
      common law or otherwise, resulting from:

     

     

    
      
        
        

      

      
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    (i) any
      violation by WRC of the provisions of the Securities Act or the Exchange
      Act;

     

    (ii)
       any
      untrue statement or alleged untrue statement of a material fact contained in
      any
      registration statement or amendment thereto or prospectus (and as amended or
      supplemented if amended or supplemented) or any preliminary prospectus or caused
      by any omission or alleged omission to state therein a material fact required
      to
      be stated therein or necessary to make the statements therein (in the case
      of
      any prospectus, in light of the circumstances under which they were made) not
      misleading, whether or not, in each such case, the registration statement or
      amendment thereto or prospectus (or amendment or supplement thereto) or
      preliminary prospectus related or relates to any offering or sale of Registrable
      Securities by any holder; and

     

    (iii)
       any
      other
      untrue statement or alleged untrue statement of a material fact or omission
      or
      alleged omission to state a material fact necessary to make the statements
      in
      any document issued or delivered to any purchaser or potential purchaser or
      filed with the SEC pursuant to Section 13 or Section 15(d) of
      the
      Exchange Act (in light of the circumstances under which they were made) not
      misleading, in each case, in connection with any offering or sale of Securities
      of WRC by any Person, whether or not such Securities offered or sold are or
      were
      registered or required to be registered under the Securities Act;

     

    in
      each
      such case, to the extent that such losses, claims, damages, liabilities (or
      proceedings in respect thereof) and expenses, joint or several, are alleged
      to
      result from or exist by virtue of the fact that any holder of Registrable
      Securities controls or is alleged to control (within the meaning of
      Section 15 of the Securities Act or Section 20 of the Exchange
      Act)
      WRC or any Subsidiary, whether such claim or allegation arises under
      Section 15 of the Securities Act or Section 20 of the Exchange
      Act or
      otherwise; provided,
      however,
      that
      such indemnification shall not extend to losses, claims, damages, liabilities
      (or proceedings in respect thereof) or expenses caused by any untrue statement
      or alleged untrue statement contained in or by any omission or alleged omission
      from information furnished in writing to WRC by such holder expressly for use
      therein, or from any such information provided by an underwriter selected by
      the
      holders or any of them.

     

    (c)  Indemnification
      by the Holders. 
      In
      connection with any registration statement in which a holder of Registrable
      Securities is participating, each such holder, severally and not jointly, shall
      indemnify, to the fullest extent permitted by law, WRC, each underwriter (if
      the
      underwriter so requires) and their respective officers, directors and agents,
      if
      any, and each Person, if any, who controls WRC or such underwriter within the
      meaning of Section 15 of the Securities Act or Section 20 of
      the
      Exchange Act, against any losses, claims, damages, liabilities (or proceedings
      in respect thereof) and expenses resulting from any untrue statement or alleged
      untrue statement of a material fact or any omission or alleged omission of
      a
      material fact required to be stated in the registration statement or prospectus
      or preliminary prospectus or any amendment thereof or supplement thereto or
      necessary to make the statements therein (in the case of any 

     

    
      
        
        

      

      
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    prospectus,
      in light of the circumstances under which they were made) not misleading, but
      only to the extent that such untrue statement is contained in or such omission
      is from information concerning a holder furnished in writing by such holder
      expressly for use therein; provided,
      however,
      that
      such holder’s obligations hereunder shall be limited to an amount equal to the
      proceeds to such holder of the Registrable Securities sold pursuant to such
      registration statement.

     

    (d)
       Control
      of Defense. 
      Any Person entitled to indemnification under the provisions of this
      Section 2.06 shall give prompt notice to the indemnifying party of any
      claim with respect to which it seeks indemnification (the failure of any
      indemnified party so to notify the indemnifying party shall not relieve the
      indemnifying party of its obligations hereunder except to the extent that the
      indemnifying party is materially prejudiced by such failure to notify) and
      unless in such indemnified party’s reasonable judgment a conflict of interest
      between such indemnified and indemnifying parties may exist in respect of such
      claim, permit such indemnifying party to assume the defense of such claim,
      with
      counsel reasonably satisfactory to the indemnified party; and if such defense
      is
      so assumed, such indemnifying party shall not enter into any settlement without
      the consent of the indemnified party; and any underwriting agreement entered
      into with respect to any registration statement provided for under this Article
      II shall so provide. In the event an indemnifying party shall not be entitled,
      or elects not, to assume the defense of a claim, such indemnifying party shall
      be obligated to pay the fees and expenses of only one counsel or firm of counsel
      for all parties indemnified by such indemnifying party in respect of such claim,
      unless in the reasonable judgment of any such indemnified party a conflict
      of
      interest may exist between such indemnified party and any other of such
      indemnified parties in respect to such claim (in which case the indemnifying
      party shall pay the fees and expenses of an additional counsel for the
      indemnified party).

     

    (e)  Contribution. 
      If
      for any reason the foregoing indemnity is unavailable, then the indemnifying
      party, in lieu of indemnifying the indemnified party, shall contribute to the
      amount paid or payable by the indemnified party as a result of such losses,
      claims, damages, liabilities or expenses:

     

    (i)
       in
      such
      proportion as is appropriate to reflect the relative benefits received by the
      indemnifying party on the one hand and the indemnified party on the other;
      or

     

    (ii)
       if
      the
      allocation provided by clause (i) above is not permitted by applicable law
      or
      provides a lesser sum to the indemnified party than the amount hereinafter
      calculated, in such proportion as is appropriate to reflect not only the
      relative benefits received by the indemnifying party on the one hand and the
      indemnified party on the other but also the relative fault of the indemnifying
      party and the indemnified party as well as any other relevant equitable
      considerations.

     

    Notwithstanding
      the foregoing, no holder of Registrable Securities shall be required to
      contribute any amount in excess of the amount such holder would have been
      required to pay to an indemnified party if the indemnity under
      Section 2.06(c) hereof was available. 

     

    
      
        
        

      

      
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    No
      Person
      guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
      of the Securities Act) shall be entitled to contribution from any Person who
      was
      not guilty of such fraudulent misrepresentation. The obligation of any Person
      to
      contribute pursuant to this Section 2.06 shall be several and not
      joint.

     

    (f)
       Timing
      of Payments.  
      An indemnifying party shall make payments of all amounts required to be made
      pursuant to the foregoing provisions of this Section 2.06 to or for
      the
      account of the indemnified party from time to time promptly upon receipt of
      bills or invoices relating thereto or when otherwise due or payable. Without
      limiting the generality of the foregoing, each indemnifying party, as an interim
      measure during the pendency of any claim, action, investigation, inquiry or
      proceeding arising out of or based upon any matter or subject for which
      indemnity (or contribution in lieu thereof) may be available to any indemnified
      party under this Section 2.06, will promptly reimburse each indemnified
      party, as often as invoiced therefor (but in no event more often than monthly)
      for all reasonable legal or other expenses incurred in connection with the
      investigation or defense of any such claim, action, investigation, inquiry
      or
      proceeding, notwithstanding the absence of any judicial determination as to
      the
      propriety or enforceability of the indemnifying party’s obligation to reimburse
      the indemnified party for such expenses and notwithstanding the possibility
      that
      the obligations to pay such expenses might later have been held to be improper
      by a court of competent jurisdiction. To the extent that any such interim
      reimbursement is held to be improper, the indemnified party agrees to promptly
      return the amount so advanced to the indemnifying party.

     

    (g)  Survival. 
      The indemnity and contribution agreements contained in this Section 2.06
      shall remain in full force and effect regardless of any investigation made
      by or
      on behalf of a participating holder of Registrable Securities, its officers,
      directors, agents or any Person, if any, who controls such holder as aforesaid,
      and shall survive the transfer of such Securities by such holder.

     

    SECTION
      2.07.  Holdback
      Agreements; Registration Rights to Others. 
      (a)
       In
      connection with each underwritten sale of Registrable Securities, WRC agrees,
      and each holder of Registrable Securities by acquisition of such Registrable
      Securities severally and not jointly agrees, to enter into customary holdback
      agreements for a period not to exceed 180 days concerning the sale or
      distribution of Registrable Securities, except, in the case of any holder of
      Registrable Securities, such holder shall only be required to make such
      agreement to the extent that WRC and the Initial Stockholder shall make similar
      agreements.

     

    (b)  If
      WRC
      shall at any time after the date hereof provide to any holder of any of its
      Securities rights with respect to the registration of such Securities under
      the
      Securities Act:

     

    (i)
       such
      rights shall not be in conflict with or adversely affect any of the rights
      provided in this Agreement to the Exchangers; and

     

     

    
      
        
        

      

      
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    (ii) if
      such rights are provided on terms or conditions more favorable to such holder
      than the terms and conditions provided in this Agreement or if rights
      (including, without limitation, rights to demand or request a registration
      of
      similar Securities of WRC) in addition to those granted pursuant to this
      Agreement are provided, WRC will provide (by way of amendment to this Agreement
      or otherwise) such additional more favorable terms or conditions to the
      Exchangers, so long as at such time, the Exchangers have not disposed of more
      than 66 2/3% of the aggregate number of Exchange Shares originally received
      by
      the Exchangers.

     

    SECTION
      2.08.  Availability
      of Information. 
      At
      any time that any class of Capital Stock of WRC is registered under
      Section 12(b) or Section 12(g) of the Exchange Act, WRC will
      comply
      with the reporting requirements of Sections 13 and 15(d) of the Exchange
      Act (whether or not it shall be required to do so pursuant to such Sections)
      and
      will comply with all other public information reporting requirements of the
      SEC
      from time to time in effect. In addition, WRC, if the Capital Stock of WRC
      is so
      registered, shall at all times after the Initial Public Offering Date, file
      such
      reports and information, and shall make available to the public and to the
      holders of Exchange Shares such information, as shall be necessary to permit
      such holders to offer and sell Registrable Securities pursuant to the provisions
      of Rule 144 promulgated under the Securities Act. 

     

    WRC,
      if
      the Capital Stock of WRC is so registered, will also cooperate with each such
      holder in supplying such information as may be necessary for such holder to
      complete and file any information reporting forms presently or hereafter
      required by the SEC as a condition to the availability of an exemption from
      the
      registration provisions of the Securities Act in connection with the sale of
      any
      Common Stock. 

     

    SECTION
      2.09.  Tag-Along
      Rights. 
      (a)
        Initial
      Stockholder Tag-Along Rights. 
      If the Initial Stockholder and/or, to the extent that such Person has received
      Common Stock transferred from the Initial Stockholder, Ripplewood Partners,
      any
      Affiliate of Ripplewood Partners and/or any shareholder, partner, member or
      employee of Ripplewood Partners or any Affiliate of Ripplewood Partners
      (collectively, the “Selling
      Stockholder”)
      proposes to transfer (other than transfers (i) in a Public Offering, (ii) to
      Ripplewood Partners or any Affiliate of Ripplewood Partners, (iii) to any
      shareholder, partner, member or employee of Ripplewood Partners or any Affiliate
      of Ripplewood Partners, (iv) to any employee of the Initial Stockholder, WRC
      or
      any of their Subsidiaries, (v) to any member of the Initial Stockholder or
      any
      Affiliate of such member or (vi) pursuant to the Redemption and Repurchase
      Agreement, dated the date hereof, among WRC, SGC and the Initial Stockholder)
      any shares of Common Stock in a single transaction or in a series of related
      transactions (a “Tag-Along
      Sale”),
      each
      Exchanger may, at its option, elect to exercise its rights under this Section
      2.09. In the event of a Tag-Along Sale, the Selling Stockholder shall deliver
      to
      each Exchanger a written notice of the terms and conditions of such Tag-Along
      Sale (a “Tag-Along
      Notice”)
      and
      offer each Exchanger the opportunity to participate in such Tag-Along Sale
      on
      the same terms and conditions, subject to the same agreements and for the same
      per share consideration as the Selling Stockholder. The Tag-Along Notice shall
      identify the number of shares of Common Stock held by such Exchanger subject
      to
      the offer (a 

     

     

    
      
        
        

      

      
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    “Tag-Along
      Offer”),
      the
      per share consideration at which the Tag-Along Sale is proposed to be made,
      all
      other material terms and conditions of the Tag-Along Sale (including the form
      of
      the proposed agreement, if any) and the date on which the Tag-Along Sale is
      proposed to be consummated. From the date of the Tag-Along Notice until the
      date
      that is ten days thereafter (the “Tag-Along
      Notice Period”),
      each
      Exchanger shall have the right (a “Tag-Along
      Right”),
      exercisable by written notice delivered to the Initial Stockholder, to request
      that the Selling Stockholder include in the Tag-Along Sale the number of shares
      of Common Stock held by such Exchanger as is specified in such notice (each
      Exchanger so requesting, a “Tagging
      Person”);
      provided,
      however,
      that,
      if the aggregate number of shares of Common Stock proposed to be sold by the
      Selling Stockholder and all Tagging Persons in the Tag-Along Sale exceeds the
      number of shares of Common Stock which can be sold on the terms and conditions
      set forth in the Tag-Along Notice, then (x) only the Tag-Along Portion of Common
      Stock of each Tagging Person and the Selling Stockholder shall be sold pursuant
      to the Tag-Along Offer and (y) the Selling Stockholder shall also be entitled
      to
      sell such additional shares of Common Stock as is permitted by Section
      2.09(d).

     

    (b)
       Closing
      of Tag-Along Sale. 
      If any Tagging Person exercises its Tag-Along Right hereunder with respect
      to a
      Tag-Along Sale, on the closing date for such Tag-Along Sale such Tagging Person
      shall deliver (i) to the purchaser specified in the Tag-Along Notice
      for
      such Tag-Along Sale a certificate or certificates representing the shares of
      Common Stock which it has elected to sell (net of any reduction pursuant to
      Section 2.09(a)), together with appropriate instruments of transfer
      duly
      endorsed in blank, against payment by such purchaser of the aggregate
      consideration payable for such shares at the per share consideration specified
      in such Tag-Along Notice, and (ii) to the Selling Stockholder all costs,
      expenses and other amounts to be paid by such Tagging Person in connection
      with
      such Tag-Along Sale pursuant to Section 2.09(g).

     

    (c)
       Non-Participants. 
      If at the termination of the Tag-Along Notice Period any Tagging Person shall
      not have delivered written notice to the Selling Stockholder of its election
      to
      participate in the Tag-Along Sale, such Tagging Person will have waived its
      Tag-Along Right with respect to such Tag-Along Sale.

     

    (d)  Certain
      Allocations. 
      If any Tagging Person (i) declines to exercise or waives its Tag-Along Right
      with respect to any Tag-Along Sale or (ii) elects to exercise its Tag-Along
      Right with respect to less than its Tag-Along Portion with respect to any
      Tag-Along Sale, the Selling Stockholder shall be entitled to transfer in such
      Tag-Along Sale, in addition to its Tag-Along Portion with respect to such
      Tag-Along Sale, a number of shares of Common Stock equal to the number of shares
      of Common Stock constituting the portion of such Tagging Person’s Tag-Along
      Portion with respect to which such Tagging Person’s Tag-Along Right was not
      exercised.

     

    (e)
       Permitted
      Sale. 
      The Selling Stockholder and any Tagging Person who exercises its Tag-Along
      Right
      with respect to a proposed Tag-Along Sale pursuant to this Section 2.09
      may
      sell the shares of Common Stock subject to the Tag-Along Offer with respect
      to
      such Tag-Along Sale on the terms and conditions set forth in such Tag-Along 

     

    
      
        
        

      

      
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    Notice
      within 120 days of the date on which the Tag-Along Rights with respect to such
      Tag-Along Sale shall have been waived, exercised or expire.

     

    (f) 
       Certain
      Other Matters. 
      For purposes of this Section 2.09 and all definitions used in this
      Section 2.09, a Right to acquire one share of Common Stock shall constitute
      one share of Common Stock and a Person shall be deemed to own a share of Common
      Stock if such Person has a Right to acquire such share whether or not such
      Right
      is exercisable at such time; provided,
      however,
      that
      any payments to be made to any Exchanger in connection with the exercise of
      any
      Tag-Along Right with respect to any Right shall be reduced by an amount equal
      to
      the then applicable exercise price of such Right.

     

    (g)  Expense
      of Sale. 
      All out-of-pocket costs and expenses incurred by the Exchangers in connection
      with a Tag-Along Sale (including, without limitation, fees and disbursement
      of
      any counsel retained by the Exchangers) shall be paid by the Exchangers. All
      direct selling expenses, discounts or commissions of brokers paid to any Person
      on a per share basis in connection with such Tag-Along Sale shall be paid
      ratably by the Exchanger and the Selling Stockholder (in proportion to each
      Selling Stockholder’s and each Exchanger’s and the Selling Stockholder’s
      Tag-Along Portion). All other fees and expenses in connection with such
      Tag-Along Sale shall be paid by WRC.

     

    SECTION
      2.10.  Drag-Along
      Rights. 
      (a) 
      If,
      at
      any time prior to the Drag-Along Termination Date, (A) the Selling Stockholder
      proposes to transfer in a Bona Fide Sale (other than any transfer (i) in
      a
      Public Offering, (ii) to Ripplewood Partners or any Affiliate of Ripplewood
      Partners, (iii) to any shareholder, partner, member or employee of
      Ripplewood Partners or any Affiliate of Ripplewood Partners, (iv) to
      any
      employee of the Initial Stockholder, WRC or any of their Subsidiaries or
      (v) to any member of the Initial Stockholder or any Affiliate of such
      member) not less than 75% of the aggregate number of shares of Common Stock
      owned by the Selling Stockholder at such time and (B) such transfer constitutes
      a “Drag-Along Sale” (as such term is defined in the SGC Stockholders Agreement)
      and each holder of “Purchaser Shares” (as such term is defined in the SGC
      Stockholders Agreement) shall be required to participate in such Drag-Along
      Sale
      pursuant to Article II of the SGC Stockholders Agreement (a "Drag-Along
      Sale"),
      then
      the Selling Stockholder may at its option require all, but not less than all,
      of
      the holders of Exchange Shares to sell in such Drag-Along Sale their respective
      Drag-Along Portions of the Exchange Shares then held by such holders
      (“Drag-Along
      Rights”).
      The
      Selling Stockholder shall provide written notice of such Drag-Along Sale to
      each
      such holder (a “Drag-Along
      Notice”)
      not
      later than the tenth day prior to the proposed Drag-Along Sale. The Drag-Along
      Notice shall identify, with respect to the Drag-Along Sale, the transferee,
      the
      number of shares of Common Stock to be sold, the consideration for which a
      transfer is proposed to be made, which shall also be stated on a per share
      basis
      (the “Drag-Along
      Sale Price”),
      the
      date on which such Drag-Along Sale is proposed to be consummated and, in
      reasonable detail, all other material terms and conditions of such Drag-Along
      Sale.

     

     

     

    
      
        
        

      

      
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    (b)
       Subject
      to this Section 2.10, each holder of Exchange Shares shall be required
      to
      participate in the Drag-Along Sale on the terms and conditions set forth in
      the
      Drag-Along Notice, so long as such terms and conditions constitute a Bona Fide
      Sale, and to transfer the Drag-Along Portion of its Exchange Shares as set
      forth
      below. The price payable per share in such Drag-Along Sale to each holder of
      Exchange Shares shall be the Drag-Along Sale Price.

     

    (c)  The
      Selling Stockholder shall have a period of 90 days from the date of receipt
      of
      the Drag-Along Notice to consummate the Drag-Along Sale on the terms and
      conditions set forth in such Drag-Along Notice, so long as such terms and
      conditions constitute a Bona Fide Sale.

     

    (d)  On
      the
      closing date for a Drag-Along Sale, each holder of Exchange Shares shall deliver
      to the purchaser specified in the Drag-Along Notice for such Drag-Along Sale
      a
      certificate or certificates representing such holder’s Drag-Along Portion of the
      Exchange Shares, together with appropriate instruments of transfer duly endorsed
      in blank, against payment by such purchaser of the total purchase price for
      such
      shares at the Drag-Along Sale Price per share.

     

    (e)  All
      expenses and costs of any Drag-Along Sale, including the fees of one counsel
      to
      the holders of Exchange Shares related to such sale, shall be for the account
      of
      and paid by the Selling Stockholder.

     

    (f)  For
      purposes of this Section 2.10 and all definitions used in this
      Section 2.10, a Right to acquire one share of Common Stock shall constitute
      one share of Common Stock and a Person shall be deemed to own a share of Common
      Stock if such Person has a Right to acquire such share whether or not such
      Right
      is exercisable at such time; provided,
      however,
      that
      any payments to be made to any holder of Exchange Shares in connection with
      the
      exercise of any Drag-Along Sale with respect to any Right shall be reduced
      by an
      amount equal to the then applicable exercise price of such Right.

     

    ARTICLE
      III 

     

    Subscription
      Rights

     

    SECTION
      3.01.  Right
      To Elect Purchase of Additional Shares. 
      In the event that WRC shall at any time offer to sell any Issuable Shares then
      WRC shall offer to each Exchanger the right to subscribe for and purchase a
      portion of the total number of the Issuable Shares to be so sold equal to the
      Additional Issuable Shares Number with respect to such Exchanger at such time,
      at the same price, on the same date and on the same terms offered to the
      proposed purchasers, on the terms set forth in this Article III. Notwithstanding
      any other provision of this Agreement, this Article III shall not apply to
      (a)
      any offer to sell Issuable Shares in a Public Offering, (b) any issuance of
      Issuable Shares pursuant to any employee stock option plan, management option
      plan or 

     

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    agreement
      or any other compensatory or incentive stock grant or option plan or agreement
      or (c) any issuance of Issuable Shares in connection with any
      acquisition.

     

    SECTION
      3.02. Notice
      of Sale of Issuable Shares. 
      WRC shall give not less than 20 Business Days written notice to each Exchanger
      of any sale of Issuable Shares described in Section 3.01, which notice
      shall specify:

     

    (a)
       the
      number of Issuable Shares and the type of Issuable Shares to be
      offered;

     

    (b) 
      the
      purchase price per share to be paid by the purchasers of such Issuable
      Shares;

     

    (c) 
      if
      any of
      such Issuable Shares consist of Rights, a detailed description of the terms
      of
      such Rights, including the exercise price and expiration date;

     

    (d)  the
      date
      on which such proposed sale is to be consummated (the “Additional
      Sale Closing Date”);

     

    (e)  the
      Additional Issuable Shares Number with respect to such Exchanger;
      and

     

    (f)  that
      such
      Exchanger shall have the right to purchase a number of the Issuable Shares
      so
      offered equal to the Additional Issuable Shares Number with respect to such
      Exchanger by following the procedure set forth in Section 3.03.

     

    SECTION
      3.03.  Notice
      of Election To Purchase Additional Issuable Shares. 
      Each Exchanger may elect to purchase a number of the Issuable Shares so offered
      equal to the Additional Issuable Shares Number with respect to such Exchanger
      by
      delivering notice to WRC on or before the date which is five Business Days
      prior
      to the date of such proposed sale (the “Additional
      Issuable Shares Election Date”).
      Such
      notice shall constitute an irrevocable subscription to purchase such number
      of
      Issuable Shares at the purchase price set forth by WRC pursuant to Section
      3.02.

     

    SECTION
      3.04.  Confirmation
      Notice. 
      WRC shall notify each Exchanger electing to purchase additional Issuable Shares
      within three Business Days after the Additional Issuable Shares Election Date
      of:

     

    (a)  the
      aggregate consideration to be paid by such Exchanger, which shall equal the
      product of the Additional Issuable Shares Number with respect to such Exchanger
      times the purchase price per Issuable Share and, in the event that a sale to
      the
      buyer of such Issuable Shares giving rise to such right on the part of the
      Exchangers is to be made for consideration other than cash, such purchase price
      per Issuable Share shall be deemed to be the quotient of the aggregate fair
      market value of the consideration paid, as determined by the Valuation Agent,
      divided by the number of Issuable Shares so purchased by such buyer);
      and

     

     

    
      
        
        

      

      
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    (b) wire
      instructions for the account to which WRC wishes Exchangers electing to
      participate in the sale to transfer funds pursuant to Section 3.05.

     

    SECTION
      3.05.  Closing
      of Sale. 
      Each Exchanger electing to participate in a sale pursuant to this Article III
      shall deliver to WRC by wire transfer in immediately available funds on the
      Additional Sale Closing Date the aggregate consideration (as set forth in
      Section 3.04(b)) for the Additional Issuable Shares Number of Issuable Shares
      to
      be purchased by such holder; provided,
      however,
      that
      the consideration paid by such Exchanger shall be paid in cash by wire transfer.
      WRC shall deliver to each Exchanger electing to participate in a sale pursuant
      to this Article III, against such wire transfer, a certificate or certificates
      evidencing a number of Issuable Shares of the applicable type or types equal
      in
      the aggregate to the Additional Issuable Shares Number with respect to such
      Exchanger.

     

    ARTICLE
      IV

     

    Restrictions
      on Transfer, 

    Termination
      and Other Agreements

     

    SECTION
      4.01.  Restrictions
      on Transfer to Transferees. 
      (a)
        Generally. 
      WRC shall neither issue nor sell any additional shares of Common Stock or Rights
      (other than in a Public Offering) to any purchaser (other than the Initial
      Stockholder, SGC or the Exchangers) unless such purchaser shall have
      acknowledged that such purchaser has notice of the provisions of this Agreement
      and is an “Other
      Stockholder”
      as
      defined herein and such purchaser shall have agreed, in writing, to be bound
      by
      each of the terms and provisions of this Agreement applicable to an
“Other
      Stockholder”
      pursuant to an undertaking substantially in the form set forth as Exhibit A
      hereto. Except for a transaction that causes the termination of the provisions
      of this Agreement (other than Section 2.05, Section 2.06, Section 2.08 and
      Section 6.07) pursuant to Section 4.05, no other party hereto shall sell,
      assign, transfer or otherwise dispose of any Common Stock or any Rights to
      any
      transferee unless such transferee shall have assumed in writing all of the
      obligations of its transferor imposed by this Agreement with respect to such
      Common Stock or Rights and shall have agreed to be bound by each of the terms
      and provisions of this Agreement to which such transferor was bound with respect
      to such Common Stock and Rights pursuant to an undertaking substantially in
      the
      form set forth as Exhibit A hereto. 

     

    (b)  Restrictions
      on Transfers by Holders of Exchange Shares. 
      Each of the holders of Exchange Shares agrees that it will not transfer any
      Common Stock or Rights it holds at any time prior to the Initial Public Offering
      Date to any Person that is an Adverse Party; provided,
      however,
      that
      this Section 4.01(b) shall not prohibit or restrict transfers of Common
      Stock or Rights pursuant to Section 2.09 or 2.10 hereof or pursuant to Rule
      144.

     

     

    
      
        
        

      

      
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    SECTION
      4.02. Cooperation
      by WRC. 
      WRC shall refuse to register any transfer of any Common Stock or Rights to
      any
      transferee unless WRC shall have received from the prospective transferee a
      written agreement to be bound by the provisions of this Agreement if required
      by
      Section 4.01 hereof, and such other evidence as WRC may reasonably require
      to establish compliance with such Section 4.01. WRC shall be protected
      in,
      and shall have no liability to any Person for, and no party hereto shall assert
      any claim against WRC for, failing to register any transfer of any Common Stock
      or Rights if such transfer is not in compliance with the provisions of this
      Agreement.

     

    SECTION
      4.03.  Legending
      of Certificates. 
      Each certificate representing any Common Stock or Rights shall bear the
      following legend:

     

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS OF A
      STOCKHOLDERS AGREEMENT, DATED AS OF JUNE 22, 2005, THE PROVISIONS OF WHICH
      ARE
      INCORPORATED HEREIN BY REFERENCE. SUCH STOCKHOLDERS AGREEMENT PROVIDES, AMONG
      OTHER THINGS, THAT THIS SECURITY MAY NOT BE SOLD OR TRANSFERRED TO ANY PERSON
      WHO HAS NOT EXPRESSLY ASSUMED THE OBLIGATIONS OF SUCH AGREEMENT (EXCEPT AS
      OTHERWISE PERMITTED THEREBY) AND CONTAINS, AMONG OTHER PROVISIONS, PROVISIONS
      WHICH LIMIT THE TRANSFER OF THIS SECURITY. A COPY OF SUCH STOCKHOLDERS AGREEMENT
      IS AVAILABLE FROM THE SECRETARY OF WRC MEDIA INC. UPON REQUEST.”

     

    SECTION
      4.04.  Securities
      Act Restrictions; Legend. 
      WRC shall not register any transfer of Common Stock or Rights if it has reason
      to believe that such transfer is being requested in violation of the
      registration requirements of Section 5 of the Securities Act. Except
      as
      otherwise permitted by Section 4.05 hereof, each certificate representing
      a
      share of Common Stock or a Right shall be stamped or otherwise imprinted with
      a
      legend in substantially the following form:

     

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD EXCEPT IN
      A
      TRANSACTION REGISTERED UNDER SUCH ACT OR PURSUANT TO AN EXEMPTION FROM THE
      REGISTRATION REQUIREMENTS OF SUCH ACT.”

     

    SECTION
      4.05.  Termination
      of Restrictions. 
      Each and all of the provisions of this Agreement (other than Section 2.05,
      Section 2.06, Section 2.08 and Section 6.07) shall terminate immediately
      as
      to any Common Stock or Rights (but this Agreement shall remain in force with
      respect to any remaining Common Stock or Rights):

     

     

     

    
      
        
        

      

      
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    (a)  when
      such
      Common Stock or Rights have been effectively registered under the Securities
      Act
      and disposed of in accordance with the registration statement covering such
      Common Stock or Rights; or

     

    (b)  when
      they
      shall have been distributed pursuant to Rule 144; or

     

    (c)  when
      they
      shall have been otherwise transferred and subsequent disposition of them shall
      not require registration or qualification under the Securities Act or any
      similar state law then in force.

     

    Notwithstanding
      anything to the contrary contained in Section 4.05(b) or (c), shares
      of
      Common Stock or Rights distributed or transferred thereunder shall, until the
      Public Market Date, remain subject to the provisions of Section 2.10.
      Whenever such restrictions shall terminate as to any Common Stock or Rights,
      the
      holder thereof shall be entitled to receive from WRC, without expenses (other
      than transfer taxes, if any), new certificates for such Common Stock or Rights
      not bearing the applicable legends set forth in Section 4.03 or
      Section 4.04 hereof.

     

    ARTICLE
      V 

     

    Defined
      Terms

     

    SECTION
      5.01.  Terms
      Defined. 
      As
      used herein, the following terms have the respective meanings set forth below
      or
      set forth in the Section hereof following such term:

     

    “Additional
      Issuable Shares Number”
      with
      respect to any holder of Exchange Shares electing to purchase Issuable Shares
      pursuant to Article III hereof, means the product of:

     

    (a)  the
      aggregate number of Issuable Shares offered to be sold by WRC multiplied
      by

     

    (b)  the
      quotient of:

     

    
      	 (i)	
                
                the aggregate number of Issuable Shares held on the Additional Issuable
                Shares Election Date by such holder; divided
                by

            

    

     

    
      	(ii)	
                
                the aggregate number of Issuable Shares outstanding on the Additional
                Issuable Shares Election Date;

            

    

     

    in
      each
      case, prior to giving effect to the offering of such Issuable Shares, giving
      rise to the rights of such holders to purchase additional Issuable Shares
      pursuant to Article III hereof. 

     

    “Additional
      Issuable Shares Election Date”
      shall
      have the meaning set forth in Section 3.03. 

     

     

    
      
        
        

      

      
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    “Additional
      Sale Closing Date”
      shall
      have the meaning set forth in Section 3.02(d). 

     

    “Adverse
      Party”
      means
      any Person whose ownership interest in WRC would be reasonably expected to
      be
      detrimental to the interest of WRC (including, without limitation, its
      Subsidiaries), including, without limitation, a competitor of WRC (including,
      without limitation, any of its Subsidiaries); provided,
      however,
      that:

     

    (a)  no
      Person
      described in Rule 501(a)(1) under the Securities Act; and

     

    (b)  no
      dealer
      registered under Section 15 of the Exchange Act or investment adviser registered
      under the Investment Advisers Act of 1940, as amended, which, in either case,
      owns or invests on a discretionary basis at least $10,000,000 in securities
      of
      unaffiliated issuers

     

    shall
      be
      an “Adverse Party” unless such Person is controlled by, controls or is under
      common control with a competitor of WRC (including, without limitation, any
      of
      its Subsidiaries).

     

    “Affiliate”
      means,
      with respect to any Person, any other Person that directly or indirectly through
      one or more intermediaries controls, or is controlled by, or is under common
      control with, such Person; provided,
      that
      with respect to WRC and its Subsidiaries only:

     

    (a)  no
      Subsidiary, holder of Exchange Shares or any Affiliate of such holder shall
      be
      an Affiliate of WRC or any Subsidiary;

     

    (b)  neither
      the “Purchaser” (as defined in the SGC Stockholders Agreement), nor any
      Affiliate of such “Purchaser” shall be an Affiliate of WRC or any
      Subsidiary;

     

    (c)  any
      Person other than those specified in clauses (a) and (b) of this definition
      that
      beneficially owns or holds 10% or more of any class of the Voting Stock of
      WRC
      shall be an Affiliate of WRC or any Subsidiary; and

     

    (d)  any
      Person other than those specified in clauses (a) and (b) of this definition,
      10%
      or more of the Voting Stock (or in the case of a Person that is not a
      corporation, 10% or more of the equity interest) of which is beneficially owned
      or held by WRC or a Subsidiary shall be an Affiliate of WRC or any
      Subsidiary.

     

    As
      used
      in this definition and in the definition of “Adverse Party”, “control”
      means
      the possession, directly or indirectly, of the power to direct or cause the
      direction of the management and policies of a Person, whether through the
      ownership of voting securities, by contract or otherwise.

     

    “Agreement”
      has the
      meaning set forth in the introductory paragraph hereof.

     

     

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

     

    “Board
      of Directors”
      means
      the board of directors of WRC or any committee thereof that, in the instance,
      shall have the lawful power to exercise the power and authority of such board
      of
      directors.

     

    “Bona
      Fide Sale”
      means a
      sale in which (i) the sale by each holder of Exchange Shares would be on the
      same terms and conditions and for the same type of consideration as is to be
      received by the Selling Stockholder, (ii) the consideration to be paid to each
      holder of Exchange Shares in connection with such transaction consists solely
      of
      cash, Freely Tradeable Securities or cash and Freely Tradeable Securities,
      (iii) no holder of Exchange Shares shall be required to make any
      representations or warranties (except as to its title to and authority to convey
      the shares of Common Stock to be sold by it and the warranties implied in
      connection with such transfer under Section 8-108(a) of the Uniform
      Commercial Code of the State of Delaware) and (iv) the prospective purchaser
      is
      purchasing in an arm’s-length transaction from the Selling Stockholder and is
      not an Affiliate of WRC, the Initial Stockholder or Ripplewood
      Partners.

     

    “Broker-Dealer”
      means
      any broker or dealer registered under the Exchange Act.

     

    “Business
      Day”
      means a
      day other than a Saturday, a Sunday or a day on which banks in the State of
      New
      York are required or permitted by law to be closed.

     

    “Capital
      Stock”
      means:

     

    (a)  with
      respect to any corporation, any class of preferred, common or other capital
      stock;

     

    (b)  with
      respect to any partnership, any limited, general or other partnership interests;
      and

     

    (c)  with
      respect to any limited liability company, membership interests or units or
      any
      similar interests;

     

    or,
      in
      each such case or in the case of any other Person, all share capital or similar
      equity interest of a Person.

     

    “Charter”
      means
      the Certificate of Incorporation of WRC, as filed with the Secretary of State
      of
      the State of Delaware on May 14, 1999, as amended and filed with the Secretary
      of State of the State of Delaware on July 6, 1999, as amended and filed with
      the
      Secretary of State of the State of Delaware on October 28, 1999, as amended
      and
      filed with the Secretary of State of the State of Delaware on November 16,
      1999, as amended and filed with the Secretary of State of the State of Delaware
      on June 12, 2000 and as thereafter amended in compliance with the provisions
      thereof and hereof. 

     

    “Closing
      Date”
      means
      the date upon which the Exchange Shares are issued to the
      Exchangers.

     

     

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    “Common
      Stock”
      has the
      meaning set forth in the first whereas clause.

     

    “CompassLearning”
      has the
      meaning set forth in the first whereas clause.

     

    “DLJMB”
      means
      DLJ Merchant Banking Partners II, L.P., together with its successors and
      permitted assigns.

     

    “DLJMB
      Board Designee”
      has the
      meaning set forth in Section 1.03(a).

     

    “DLJMB
      Entities”
      has the
      meaning set forth in the introductory paragraph.

     

    “Drag-Along
      Notice”
      has the
      meaning set forth in Section 2.10(a). 

     

    “Drag-Along
      Portion”
      means,
      with respect to any holder of Exchange Shares, the number of shares of Common
      Stock owned by such holder on a Fully Diluted basis (but without duplication)
      multiplied by a fraction, the numerator of which is the number of shares of
      Common Stock proposed to be sold by the Selling Stockholder and the denominator
      of which is the total number of shares of Common Stock owned by the Selling
      Stockholder.

     

    “Drag-Along
      Rights”
      has the
      meaning set forth in Section 2.10(a).

     

    “Drag-Along
      Sale”
      has the
      meaning set forth in Section 2.10(a).

     

    “Drag-Along
      Sale Price”
      has the
      meaning set forth in Section 2.10(a).

     

    “Drag-Along
      Termination Date”
      means
      the earlier of (i) the Public Market Date, (ii) if the Selling
      Stockholder owns on the Closing Date, after giving effect to the Transactions
      and all related transactions, at least 51% of the aggregate outstanding shares
      of Common Stock, the date when the Selling Stockholder ceases to own at least
      51% of the aggregate outstanding shares of Common Stock and (iii) if
      the
      Selling Stockholder does not own on the Closing Date, after giving effect to
      the
      Transactions and all related transactions, at least 51% of the aggregate
      outstanding shares of Common Stock, the date when the Selling Stockholder sells,
      assigns, disposes of, exchanges, pledges, encumbers, hypothecates or otherwise
      transfers any shares of Common Stock or any participation or interest therein,
      whether directly or indirectly, or agrees or commits to do any of the
      foregoing.

     

    “Exchange
      Act”
      means
      the Securities Exchange Act of 1934, as amended, and the rules and regulations
      of the SEC promulgated thereunder.

     

    “Exchanger”
      has the
      meaning set forth in the introductory paragraph.

     

    “Exchange
      Shares”
      means
      shares of Common Stock issued to the Exchangers pursuant to the terms of the
      Redemption and Repurchase Agreement or Article III. 

     

     

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    “Fair
      Market Value”
      means
      the fair market value of a Security, determined by the Board of Directors,
      giving due consideration to such factors as it deems appropriate, including
      the
      earnings and certain other financial and operating information of WRC and its
      Subsidiaries in recent periods, its potential value and that of its Subsidiaries
      as a whole, its future prospects and that of its Subsidiaries and the industries
      in which they compete, its history and management and that of its Subsidiaries,
      the general condition of the securities markets and the fair market value of
      securities of privately owned companies (with transfer restrictions) engaged
      in
      businesses similar to WRC and its Subsidiaries. The Fair Market Value, as
      determined by the Board of Directors in good faith shall be binding and
      conclusive upon all parties hereto.

     

    “Freely
      Tradeable Securities”
      means
      Securities:

     

    (a) which
      are
      of a class:

     

    (i) of
      Securities issued or fully guaranteed by the United States of America or any
      agency thereof and entitled to the full faith and credit of the United States
      of
      America, for which price quotations are routinely quoted and for which, in
      the
      reasonable opinion of the Exchangers, there is a ready liquid market;
      or

     

    (ii) both
      registered pursuant to either Section 12(b) or Section 12(g) of the Exchange
      Act
      and either listed on a national securities exchange or on the Nasdaq National
      Market; and

     

    (b)  which
      may
      be resold in the public markets by the Exchangers without requirement of further
      registration under the Securities Act (excluding the impact of Rule 145 under
      the Securities Act, if applicable).

     

    “Fully
      Diluted”
      means,
      with respect to Common Stock and without duplication, all outstanding shares
      of
      Common Stock and all shares of Common Stock issuable in respect of securities
      convertible into or exchangeable for shares of Common Stock, stock appreciation
      rights, options, warrants and other rights to purchase or subscribe for shares
      of Common Stock or securities convertible into or exchangeable for shares of
      Common Stock; provided
      that, to
      the extent that any of the foregoing stock appreciation rights, options,
      warrants or other rights to purchase or subscribe for shares of Common Stock
      are
      subject to vesting, such shares subject to vesting shall be included in the
      definition of “Fully
      Diluted”
      only
      upon and to the extent of such vesting.

     

    “GAAP”
      means
      generally accepted accounting principles in the United States as set forth
      in
      the statements and pronouncements of the Financial Accounting Standards Board
      or
      in such other statements by such other entity as have been approved by a
      significant segment of the accounting profession. 

     

    “Incidental
      Registration”
      has the
      meaning set forth in Section 2.02(a).

     

    “Initial
      Public Offering Date”
      means
      the first date upon which Common Stock shall have been issued or sold pursuant
      to an underwritten public offering (whether  

     

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    on
      a firm
      commitment basis or a best efforts basis if such best efforts are successful)
      thereof pursuant to an effective registration statement filed with the SEC
      pursuant to the Securities Act (an “Initial Public
      Offering”).

     

    “Initial
      Stockholder”
      has the
      meaning set forth in the introductory paragraph.

     

    “Issuable
      Share”
      means
      and includes, at any time,

     

    (a)  a
      share
      of Common Stock or other Capital Stock of WRC;

     

    (b)  a
      Right
      (including, without limitation, a warrant), and (without duplication) all shares
      of Common Stock or other Capital Stock issuable upon exercise of such Right,
      in
      each case at such time; and/or

     

    (c)  for
      purposes of Article III, any indebtedness issued by a Subsidiary to
      the
      Initial Stockholder or any of its Affiliates.

     

    For
      purposes of this definition of “Issuable
      Share”,
      a
      Right to acquire one share of Common Stock shall constitute one Issuable Share,
      and a Person shall be deemed to own an Issuable Share if such Person has a
      Right
      to acquire such share whether or not such Right is exercisable at such
      time.

     

    “NASD”
      means
      the National Association of Securities Dealers, Inc.

     

    “NASDAQ”
      means
      the NASDAQ Stock Market, Inc., a subsidiary of the NASD.

     

    “Nasdaq
      National Market”
      has the
      meaning ascribed thereto in Rule 4200(a) of the NASDAQ.

     

    “Nasdaq
      SmallCap Market”
      has the
      meaning ascribed thereto in Rule 4200(a) of the NASDAQ.

     

    “NML”
      has the
      meaning set forth in the introductory paragraph.

     

    “Other
      Exchangers”
      has the
      meaning set forth in the introductory paragraph.

     

    “Other
      Stockholders”
      means
      and includes, at any time, all holders of Issuable Shares at such time (other
      than the holders of Exchange Shares, SGC and the Initial Stockholder), other
      than holders of shares sold in any Public Offering and other than holders of
      shares as to which the provisions of this Agreement (other than those specified
      in Section 4.05) have terminated pursuant to
      Section 4.05.

     

    “Person”
      means
      an individual, partnership, corporation, limited liability company, trust,
      unincorporated organization, or a government or agency or political subdivision
      thereof.

     

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

     

    “Property”
      means
      any and all interests in any kind of property or asset whatsoever, whether
      real,
      personal or mixed and whether tangible or intangible.

     

    “Prospectus”
      means
      the prospectus included in a Registration Statement at the time such
      Registration Statement is declared effective, as amended or supplemented by
      any
      prospectus supplement and by all other amendments thereto, including
      post-effective amendments, and all material incorporated by reference into
      such
      Prospectus.

     

    “Public
      Market Date”
      means
      the first day upon which Common Stock with an aggregate market value of not
      less
      than $25,000,000 shall have been sold in one or more Public
      Offerings.

     

    “Public
      Offering”
      shall
      mean, with respect to any shares of Capital Stock of WRC, any sale in a
      transaction registered under Section 5 of the Securities Act.

     

    “Redemption
      and Repurchase Agreement”
      has the
      meaning set forth in the first whereas clause.

     

    “Registrable
      Securities”
      means,
      at any time, in the case of the Initial Stockholder, all shares of Capital
      Stock
      of WRC and, in the case of the Exchangers, all Exchange Shares and any
      Securities issued or issuable in respect of such Exchange Shares by way of
      stock
      dividend, split or combination; provided,
      however,
      that,
      any such Securities shall cease to be Registrable Securities:

     

    (a) when
      a
      registration statement with respect to the sale of such Securities shall have
      become effective under the Securities Act and such Securities shall have been
      disposed of in accordance with the registration statement covering such
      Securities;

     

    (b) when
      such
      Securities shall have been distributed pursuant to Rule 144;

     

    (c)  when
      such
      Securities shall have been otherwise transferred (except to Affiliates of the
      transferor) and subsequent disposition of them shall not require registration
      or
      qualification under the Securities Act or any similar state law then in force;
      or

     

    (d)  when
      such
      Securities shall have ceased to be outstanding or issuable upon exercise of
      any
      Rights (it being understood that the Securities for which such Rights were
      exercisable shall continue to be Registrable Securities, unless otherwise
      provided in paragraphs (a)-(c) of this definition).

     

    “Registration”
      means
      and includes each Required Registration and each Incidental
      Registration.

     

    “Registration
      Expenses”
      means
      all expenses incident to WRC’s performance of or compliance with
      Section 2.01 through Section 2.04, inclusive, including, without
      limitation:

     

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    (a)  all
      registration and filing fees;

     

    (b)  fees
      and
      expenses of compliance with securities or blue sky laws (including, without
      limitation, reasonable fees and disbursements of counsel in connection with
      blue
      sky qualifications of the Registrable Securities);

     

    (c)  all
      printing expenses, including, without limitation, expenses of printing
      certificates for the Registrable Securities in a form eligible for deposit
      with
      The Depository Trust Company;

     

    (d)  messenger
      and delivery expenses;

     

    (e)  internal
      expenses of WRC (including, without limitation, all salaries and expenses of
      its
      officers and employees performing legal or accounting duties);

     

    (f)  fees
      and
      disbursements of counsel for WRC and its independent certified public
      accountants (including, without limitation, the expenses of any management
      review, cold comfort letters or any special audits required by or incident
      to
      such performance and compliance);

     

    (g) securities
      act liability insurance (if WRC elects to obtain such insurance);

     

    (h) the
      reasonable fees and expenses of any special experts retained by WRC in
      connection with such registration;

     

    (i)  fees
      and
      expenses of other Persons retained by WRC;

     

    (j)  fees
      and
      expenses of one counsel for holders of Registrable Securities, selected by
      the
      Requisite Holders;

     

    (k) fees
      and
      expenses in connection with any review of underwriting arrangements by the
      NASD
      including, without limitation, fees and expenses of any “qualified
      independent underwriter”;
      and

     

    (l)  fees
      and
      disbursements of underwriters customarily paid by issuers;

     

    but
      not
      including any underwriting fees, discounts or commissions attributable to the
      sale of Registrable Securities or any other selling expenses, discounts,
      commissions or transfer taxes, if any, incurred in connection with the sale
      of
      Registrable Securities, which shall be severally payable by the holders
      thereof.

     

    “Required
      DLJMB Entities”
      means,
      at any time, DLJMB Entities holding at least a majority of the aggregate
      Exchange Shares then held by all DLJMB Entities.

     

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

     

    “Required
      Holders”
      means,
      at any time, the holders of Exchange Shares holding at least a majority of
      the
      aggregate Exchange Shares then held by the Exchangers. 

     

    “Required
      Registration”
      has the
      meaning set forth in Section 2.01(a).

     

    “Requisite
      Holders”
      means:

     

    (a)  with
      respect to any registration or proposed registration of Registrable Securities
      pursuant to Section 2.01, the Initiating Holder; and

     

    (b)  with
      respect to any registration or proposed registration of Registrable Securities
      pursuant to Section 2.02, any holder or holders (other than WRC, any
      Subsidiary or any Affiliate of WRC) holding at least a majority of the shares
      of
      Registrable Securities (excluding any shares of Registrable Securities directly
      or indirectly held by WRC, any Subsidiary or any Affiliate of WRC) to be so
      registered.

     

    “Right”
      means
      and includes:

     

    (a)  any
      warrant, right or other option exercisable into Common Stock or other Capital
      Stock of WRC; and

     

    (b)  any
      conversion or exchange privilege or right pursuant to any indebtedness or
      Security (including, without limitation, any share of Capital Stock) which
      is
      convertible or exchangeable into Common Stock or other Capital Stock of
      WRC.

     

    “Ripplewood
      Partners”
      means
      Ripplewood Partners L.P., a Delaware limited partnership, together with its
      successors and permitted assigns.

     

    “Rule
      144”
      means
      Rule 144 promulgated under the Securities Act or any successor
      provision.

     

    “SEC”
      means,
      at any time, the Securities and Exchange Commission or any other Federal agency
      at such time administering the Securities Act.

     

    “Second
      Lien Term Loans”
      has the
      meaning set forth in the Redemption and Repurchase Agreement.

     

    “Securities
      Act”
      means
      the Securities Act of 1933, as amended, and the rules and regulations of the
      SEC
      promulgated thereunder.

     

    “Security”
      means
“security”
      as
      defined by Section 2(1) of the Securities Act.

     

    “Selling
      Stockholder”
      has the
      meaning set forth in Section 2.09(a).

     

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    “Senior
      Financial Officer”
      means
      any one of the chief financial officer, the treasurer, the controller and the
      principal accounting officer of WRC, or any officer of WRC acting in such
      capacity.

     

    “Senior
      Preferred Stock”
      has the
      meaning set forth in the first whereas clause.

     

    “SGC”
      means
      SGC Capital Partners I L.L.C.

     

    “SGC
      Stockholders Agreement”
      means
      the Amended and Restated Stockholders Agreement, dated as of November 17,
      1999, among WRC, SGC Capital Partners II L.L.C. and the Initial Stockholder,
      as
      further amended as of the Closing Date.

     

    “Subsidiary”
      means,
      as to any Person, any other Person the financial position and results of
      operations of which would be properly consolidated with those of the first
      Person in accordance with GAAP. The term “Subsidiary”, as used herein without
      reference to any Person, shall mean a Subsidiary of WRC.

     

    “Tag-Along
      Notice”
      has the
      meaning set forth in Section 2.09(a).

     

    “Tag-Along
      Notice Period”
      has the
      meaning set forth in Section 2.09(a).

     

    “Tag-Along
      Offer”
      has the
      meaning set forth in Section 2.09(a).

     

    “Tag-Along
      Portion”
      means
      the number of shares of Common Stock owned by the Tagging Person or the Selling
      Stockholder, as the case may be, multiplied by a fraction, the numerator of
      which is the number of shares of Common Stock proposed to be sold in the
      Tag-Along Sale pursuant to Section 2.09, and the denominator of which
      is
      the aggregate number of shares of Common Stock on a Fully Diluted basis owned
      by
      all Stockholders.

     

    “Tag-Along
      Right”
      has the
      meaning set forth in Section 2.09(a).

     

    “Tag-Along
      Sale”
      has the
      meaning set forth in Section 2.09(a).

     

    “Tagging
      Person”
      has the
      meaning set forth in Section 2.09(a).

     

    “Valuation
      Agent”
      means
      the Board of Directors acting in good faith, except to the extent that any
      holders of Exchange Shares shall disagree with any relevant determination of
      the
      Board of Directors, in which case the Valuation Agent shall be a firm of
      independent certified public accountants, an investment banking firm or
      appraisal firm (which firm shall own no Securities of, and shall not be an
      Affiliate, Subsidiary or a related Person of, WRC) of recognized national
      standing retained by WRC and reasonably acceptable to such holders, and whose
      fees and disbursements shall be borne by such holders unless the determination
      by the Valuation Agent shall differ from that of the Board of Directors by
      more
      than 2%, in which case such fees and disbursements shall be borne by WRC.

     

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

     

    “Voting Stock”
      means,
      with respect to any Person, any Capital Stock of such Person whose holders
      are
      entitled under ordinary circumstances to vote for the election of directors,
      managers, trustees, the managing partner or other individuals fulfilling similar
      duties with respect to such Person (irrespective of whether at the time Capital
      Stock of any other class or classes shall have or might have voting power by
      reason of the happening of any contingency); provided,
      however,
      that,
      except for the purposes of the definition of “Affiliate”, Exchange Shares shall
      be deemed not to be Voting Stock.

     

    “Weekly
      Reader”
      has the
      meaning set forth in the first whereas clause.

     

    “WRC”
      has the
      meaning set forth in the introductory paragraph.

     

    SECTION
      5.02.  Section Headings
      and Table of Contents and Construction. 
      (a)
       Section Headings
      and Table of Contents, etc. 
      The titles of the Articles and Sections of this Agreement and the Table of
      Contents of this Agreement appear as a matter of convenience only, do not
      constitute a part hereof and shall not affect the construction hereof. The
      words
“herein”, “hereof”, “hereunder” and “hereto” refer to this Agreement as a whole
      and not to any particular Article or Section or other subdivision.
      References to Articles or Sections are, unless otherwise specified, references
      to Articles or Sections, as the case may be, of this Agreement. References
      to
      Annexes and Exhibits are, unless otherwise specified, references to Annexes
      and
      Exhibits, as the case may be, attached to this Agreement.

     

    (b)  Construction. 
      Each covenant contained herein shall be construed (absent an express contrary
      provision herein) as being independent of each other covenant contained herein,
      and compliance with any one covenant shall not (absent such an express contrary
      provision) be deemed to excuse compliance with one or more other
      covenants.

     

    SECTION
      5.03.  GOVERNING
      LAW. 
      THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE
      WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT THE
      DELAWARE GENERAL CORPORATION LAW IS MANDATORILY APPLICABLE.

     

    ARTICLE
      VI

     

    Miscellaneous

     

    SECTION
      6.01.  Communications. 
      (a)
        Method;
      Address. 
      All communications hereunder shall be in writing and shall be delivered either
      by nationwide overnight courier or by facsimile transmission (confirmed by
      delivery by nationwide overnight courier sent on the day of the sending of
      such
      facsimile transmission). Communications to WRC shall be addressed
      to:

     

    WRC
      Media
      Inc.

    In
      care
      of Ripplewood Holdings L.L.C.

     

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

     

    One
      Rockefeller Plaza, 32nd Floor

    New
      York,
      NY 10020

     

    or
      at
      such other address of which WRC shall have notified the parties hereto.
      Communications to an Exchanger shall be addressed as set forth on Annex 1,
      or at
      such other address of which such Exchanger shall have notified WRC.
      Communications to the Initial Stockholder shall be addressed as set forth on
      Annex 2, or at such other address of which the Initial Stockholder shall have
      notified WRC and each Exchanger. Communications to any Other Stockholders shall
      be delivered to such Other Stockholders at the address of WRC as provided
      herein, and WRC shall promptly deliver such communications to the Other
      Stockholders at the addresses set forth in the register of the holders of the
      Common Stock in the manner set forth in this Section 6.01.

     

    (b)  When
      Given. 
      Any communication addressed and delivered as herein provided shall be deemed
      to
      be received when actually delivered to the address of the addressee (whether
      or
      not delivery is accepted) or received by the telecopy machine of the recipient.
      Any communication not so addressed and delivered shall be
      ineffective.

     

    (c)  Service
      of Process. 
      Notwithstanding the foregoing provisions of this Section 6.01, service
      of
      process in any suit, action or proceeding arising out of or relating to this
      Agreement or any document, agreement or transaction contemplated hereby, or
      any
      action or proceeding to execute or otherwise enforce any judgment in respect
      of
      any breach hereunder or under any document or agreement contemplated hereby,
      shall be delivered in the manner provided in Section 6.06(c).

     

    SECTION
      6.02.  Survival. 
      All warranties, representations, certifications and covenants made by WRC
      herein, in the Redemption and Repurchase Agreement or in any certificate or
      other instrument delivered by WRC or on behalf of WRC hereunder shall be
      considered to have been relied upon by the applicable Exchangers to whom such
      representations or certificates were made or covenants given and shall survive
      the delivery to the Exchangers, regardless of any investigation made by the
      Exchangers or on their behalf. All statements in any certificate or other
      instrument delivered by or on behalf of WRC pursuant to the terms hereof shall
      constitute warranties and representations by WRC hereunder. All payment and
      indemnity obligations of WRC hereunder (including, without limitation,
      reimbursement obligations in respect of costs, expenses and fees of or incurred
      by the Exchangers) shall survive the termination hereof.

     

    SECTION
      6.03.  Successors
      and Assigns. 
      Subject to Section 4.05, this Agreement shall inure to the benefit of
      and
      be binding upon the successors and permitted assigns of each of the parties
      hereto. The provisions hereof are intended to be for the benefit of the
      Exchangers and their successors and permitted assigns, and shall be enforceable
      by them whether or not an express assignment of rights hereunder shall have
      been
      made by an Exchanger or its successor or permitted assign.

     

    SECTION
      6.04. Amendments
      and Waivers. 
      (a)
       The
      provisions of Article I, Article III and Article VI hereof, and of any term
      defined in Article V hereof as used in any such Article, may be amended,
      modified or supplemented, and compliance 

     

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

     

    with
      any
      provision of any such Article waived, only by a writing duly executed by or
      on
      behalf of the Required Holders and WRC; provided,
      however,
      that no
      amendment, modification or supplement of the provisions of this Section 6.04
      or
      Sections 1.02, 1.03(a), 1.05, 6.01, 6.03, 6.06, 6.08 or 6.09 hereof which
      adversely affect the rights of the Initial Stockholder shall be made without
      the
      consent of the Initial Stockholder and provided further
      that no
      amendment, modification or supplement of the provisions of this Section 6.04
      or
      Section 1.03 or 1.04 hereof that adversely affects the rights of any DLJMB
      Entity shall be made without the consent of the Required DLJMB
      Entities.

     

    (b)  The
      provisions of Article II hereof, and of any term defined in Article V
      hereof as used in Article II hereof, may be amended, modified or supplemented
      only by a writing duly executed by or on behalf of the Required Holders and
      WRC;
provided,
      however,
      that
      (i) compliance by WRC with the provisions of Article II hereof, with respect
      to
      any particular registration, may be waived by the Requisite Holders and (ii)
      no
      amendment, modification or supplement of the provisions of
      Sections 2.01(d), 2.01(f), 2.02(c), 2.07 or 2.10 hereof which adversely
      affect the rights of the Initial Stockholder shall be made without the consent
      of the Initial Stockholder. 

     

    (c)  The
      provisions of Article IV hereof, and of any term defined in Article V hereof
      as
      used in Article IV hereof, may be amended, modified or supplemented, and
      compliance with such Section hereof waived, only by a writing duly executed
      by or on behalf of the Required Holders and WRC; provided,
      however,
      that no
      amendment, modification or supplement of the provisions of Section 4.01 hereof
      which adversely affect the rights of the Initial Stockholder shall be made
      without the consent of the Initial Stockholder.

     

    (d)  Notwithstanding
      the foregoing, no provision of this Agreement may be amended in such manner
      as
      to adversely and differently affect any Other Exchanger’s rights hereunder
      without the consent of such Other Exchanger.

     

    SECTION
      6.05.  Expenses. 
      (a)
       Amendments
      and Waivers. 
      WRC shall pay when billed the reasonable costs and expenses (including, without
      limitation, reasonable attorneys’ fees) incurred by the holders of the Exchange
      Shares in connection with the consideration, negotiation, preparation or
      execution of any amendments, waivers, consents and other similar agreements
      with
      respect to this Agreement (whether or not any such amendments, waivers, consents
      or other similar agreements are executed).

     

    (b) Restructuring
      and Workout, Inspections. 
      At
      any time when WRC and the holders of Exchange Shares are conducting
      restructuring or workout negotiations in respect hereof, or if WRC shall be
      in
      violation in any material respect of any of its agreements hereunder, WRC shall
      pay when billed the reasonable costs and expenses (including, without
      limitation, reasonable attorneys’ fees and the fees of professional advisors)
      incurred by the holders of Exchange Shares in connection with the assessment,
      analysis or enforcement of any rights or remedies that are or may be available
      to the holders of Exchange Shares.

     

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

     

    SECTION
      6.06.  Waiver
      of Jury Trial; Consent to Jurisdiction; etc. 
      (a)
       WAIVER
      OF JURY TRIAL.
      THE
      PARTIES HERETO VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT ANY OF THEM MAY
      HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING OUT OF, UNDER
      OR IN
      CONNECTION WITH THIS AGREEMENT OR ANY OF THE DOCUMENTS, AGREEMENTS OR
      TRANSACTIONS CONTEMPLATED HEREBY.

     

    (b)
       CONSENT
      TO JURISDICTION. 
      ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT,
      OR
      ANY OF THE DOCUMENTS, AGREEMENTS OR TRANSACTIONS CONTEMPLATED HEREBY OR ANY
      ACTION OR PROCEEDING TO EXECUTE OR OTHERWISE ENFORCE ANY JUDGMENT IN RESPECT
      OF
      ANY BREACH UNDER THIS AGREEMENT OR ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY
      MAY BE BROUGHT BY SUCH PARTY IN ANY FEDERAL DISTRICT COURT LOCATED IN NEW YORK
      CITY, NEW YORK, OR ANY NEW YORK STATE COURT LOCATED IN NEW YORK CITY, NEW YORK
      AS SUCH PARTY MAY IN ITS SOLE DISCRETION ELECT, AND BY THE EXECUTION AND
      DELIVERY OF THIS AGREEMENT, THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
      SUBMIT TO THE NON-EXCLUSIVE IN
      PERSONAM
      JURISDICTION OF EACH SUCH COURT, AND EACH OF THE PARTIES HERETO IRREVOCABLY
      WAIVES AND AGREES NOT TO ASSERT IN ANY PROCEEDING BEFORE ANY TRIBUNAL, BY WAY
      OF
      MOTION, AS A DEFENSE OR OTHERWISE, ANY CLAIM THAT IT IS NOT SUBJECT TO THE
      IN
      PERSONAM
      JURISDICTION OF ANY SUCH COURT. IN ADDITION, EACH OF THE PARTIES HERETO
      IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION THAT
      IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE IN ANY SUIT, ACTION OR
      PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY DOCUMENT,
      AGREEMENT OR TRANSACTION CONTEMPLATED HEREBY BROUGHT IN ANY SUCH COURT, AND
      HEREBY IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING
      BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT
      FORUM.

     

    (c)  SERVICE
      OF PROCESS. 
      EACH PARTY HERETO IRREVOCABLY AGREES THAT PROCESS PERSONALLY SERVED OR SERVED
      BY
      U.S. REGISTERED MAIL AT THE ADDRESSES PROVIDED HEREIN FOR NOTICES SHALL
      CONSTITUTE, TO THE EXTENT PERMITTED BY LAW, ADEQUATE SERVICE OF PROCESS IN
      ANY
      SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
      ANY
      DOCUMENT, AGREEMENT OR TRANSACTION CONTEMPLATED HEREBY, OR ANY ACTION OR
      PROCEEDING TO EXECUTE OR OTHERWISE ENFORCE ANY JUDGMENT IN RESPECT OF ANY BREACH
      HEREUNDER OR UNDER ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY. RECEIPT OF
      PROCESS SO SERVED SHALL BE CONCLUSIVELY PRESUMED AS EVIDENCED BY A DELIVERY
      RECEIPT FURNISHED BY THE UNITED STATES POSTAL SERVICE OR ANY COMMERCIAL DELIVERY
      SERVICE.

     

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

     

    (d)  OTHER
      FORUMS. 
      NOTHING HEREIN SHALL IN ANY WAY BE DEEMED TO LIMIT THE ABILITY OF ANY HOLDER
      OF
      EXCHANGE SHARES TO SERVE ANY WRITS, PROCESS OR SUMMONSES IN ANY MANNER PERMITTED
      BY APPLICABLE LAW OR TO OBTAIN JURISDICTION OVER WRC OR THE INITIAL STOCKHOLDER
      IN SUCH OTHER JURISDICTION, AND IN SUCH OTHER MANNER, AS MAY BE PERMITTED BY
      APPLICABLE LAW.

     

    SECTION
      6.07.  Indemnification. 
      From and at all times after the date of this Agreement, and in addition to
      all
      of the other rights and remedies of any holder of Exchange Shares against WRC,
      WRC agrees to indemnify and hold harmless each such holder and each of its
      directors, trustees, officers, employees, agents, investment advisors and
      Affiliates against any and all claims, losses, damages, liabilities, costs
      and
      expenses of any kind or nature whatsoever (including, without limitation,
      reasonable attorneys’ fees, costs and expenses), incurred by or asserted against
      such holder or any such director, trustee, officer, employee, agent, investment
      advisor or Affiliate, from and after the date hereof, whether direct or
      indirect, as a result of or arising from or in any way relating to any suit,
      action or proceeding (including, without limitation, any inquiry or
      investigation) by any Person, whether threatened or initiated, asserting a
      claim
      for any legal or equitable remedy against any Person under any statute or
      regulation, including, without limitation, any Federal or state securities
      laws,
      or under any common law or equitable cause or otherwise, arising from or in
      connection with the negotiation, preparation, execution, performance or
      enforcement of this Agreement or any transactions contemplated herein or
      hereunder, whether or not such holder or any such director, trustee, officer,
      employee, agent, investment advisor or Affiliate is a party to any such action,
      proceeding, suit or the target of any such inquiry or investigation;
provided,
      however,
      that no
      indemnified party shall have the right to be indemnified hereunder for any
      liability to the extent such liability results from the willful misconduct
      or
      gross negligence of such indemnified party or breach by such indemnified party
      of its own obligations under this Agreement or any other agreement with WRC.
      All
      of the foregoing losses, damages, liabilities, costs and expenses shall be
      payable as and when incurred upon demand by each such holder. Without limiting
      the generality of the foregoing, each holder of Exchange Shares shall be
      entitled to collect, and WRC shall be obligated to advance to each holder of
      Exchange Shares and such directors, trustees, officers, employees, agents,
      investment advisors and Affiliates, to the fullest extent permitted by
      applicable law, all expenses (including, without limitation, reasonable fees
      and
      disbursements of counsel) attendant to defending against any such claims,
      losses, damages, liabilities, costs and expenses when and as incurred,
      regardless of whether any judicial determination of entitlement to such
      indemnity has been made, until or unless a final judicial determination that
      such indemnified party is not entitled to such indemnity as a result of the
      willful misconduct or gross negligence of such indemnified party or breach
      by
      such indemnified party, in which case, such indemnified party shall promptly
      repay to WRC, with interest at the applicable statutory rate applicable to
      judgments in the relevant jurisdiction, all amounts so advanced by WRC. The
      obligations of WRC and the rights of the holders of Exchange Shares under this
      Section 6.09 shall survive the termination of this Agreement. It is
      understood that this Section 6.07 is not intended to override Section 2.06
      and
      that, with respect to any registration statement or offering of 

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    Securities
      pursuant thereto, the provisions of Section 2.06 shall govern and supersede
      this
      Section 6.07. 

     

    SECTION
      6.08.  Entire
      Agreement. 
      This Agreement, the Redemption and Repurchase Agreement and the Note Agreement
      (as defined in the Redemption and Repurchase Agreement), together with all
      exhibits and schedules thereto and hereto, constitute the final written
      expression of all of the terms hereof and is a complete and exclusive statement
      of those terms.

     

    SECTION
      6.09.  Execution
      in Counterpart. 
      This Agreement may be executed in one or more counterparts and shall be
      effective when at least one counterpart shall have been executed by each party
      hereto, and each set of counterparts that, collectively, show execution by
      each
      party hereto shall constitute one duplicate original.

     

    SECTION
      6.10.  Reproduction
      of Documents. 
      This Agreement and all documents relating hereto, including, without limitation,
      consents, waivers and modifications that may hereafter be executed, documents
      received by Exchangers at the closing of the Redemption and Repurchase (except
      the certificates representing the shares of the Exchange Shares), and financial
      statements, certificates and other information previously or hereafter furnished
      to any party may be reproduced by any party by any photographic, photostatic,
      microfilm, micro-card, miniature photographic, digital or other similar process,
      and the Exchangers may destroy any original document so reproduced. Any such
      reproduction shall be as admissible into 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 WRC, the Initial
      Stockholder or the Exchangers in the regular course of business) and any
      enlargement, facsimile or further reproduction of such reproduction shall
      likewise be as admissible into evidence as the original itself. Nothing in
      this
      Section 6.10 shall prohibit any party hereto from contesting the accuracy
      or validity of any such reproduction.

     

    SECTION
      6.11.  Effectiveness
      of this Agreement. 
      This Agreement shall become effective upon, and the rights and obligations
      of
      each party hereto shall be subject to, the consummation of the Redemption and
      Repurchase. Upon the effectiveness of this Agreement and the rights and
      obligations of each party hereto, the parties hereto agree that the Preferred
      Stockholders Agreement dated as of November 17, 1999, among WRC, JLC Learning
      Corporation, Weekly Reader, SGC Capital Partners II L.L.C., the Initial
      Stockholder, Ripplewood Partners and the Persons identified as “Purchasers”
      in
      Annex 1 thereto shall be terminated and of no further force and
      effect.

     

    

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    
 

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

     

    
      	 	 	 
	 	WRC
              MEDIA INC.
	 
 	 
 	 
 
	 	By:  	 /s/
              
	 	
              
                

              

              Name:
                Richard Nota

            
	 	Title:  
              EVP, Operations

    

     

    

    

    

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

    
      	 	 	 
	 	EAC
              III L.L.C.
	 
 	 
 	 
 
	 	By:  	EAC
              IV L.L.C., its Managing Member 
	 	 	 
	 	By:	Ripplewood
              Partners, L.P., its Sole Member
	 	 	 
	 	By:	 Ripplewood Investments L.L.C., its General
              Partner
	 	 	 
	 	By:	 /s/
              
	 	
              
Name:
	 	Title: 

    

    

    

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    
 

    
      
        	 	 	 
	 	SCG
                PARTNERS I L.L.C., with respect to the second sentence of Section
                6.11
                only
	 
 	 
 	 
 
	 	By:  	 /s/
                
	 	
                
Name:
                Christopher A. White
	 	Title:   
                Director

      

    

    

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

    
      	 	 	 
	 	THE
              NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY
	 
 	 
 	 
 
	 	By:  	 /s/
              
	 	
              
Name:
              David A. Barras
	 	Title: 
              Its Authorized Representative

    

     

    
      	 	 	 
	 	ARES
              LEVERAGED INVESTMENT FUND, L.P., a Delaware Limited
              Partnership
	 
 	 
 	 
 
	 	By:  	ARES
              Management L.P., as General Partner
	 	 	 
	 	By:	 /s/
              
	 	
              
Name:
              Bennett Rosenthal
	 	Title: 
              Vice President

    

     

    
      
        	 	 	 
	 	ARES
                LEVERAGED INVESTMENT FUND II, L.P., a Delaware Limited
                Partnership
	 
 	 
 	 
 
	 	By:  	ARES
                Management II, L.P., as General Partner
	 	 	 
	 	By: 	 /s/
                
	 	
                
Name:
                Bennett Rosenthal
	 	Title: 
                Vice President 

      

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

     

     

    
      	 	TCW/CRESCENT
              MEZZANINE PARTNERS II, L.P., a Delaware Limited Partnership 
	 	 	 
	 	TCW/CRESCENT
              MEZZANINE TRUST II
	 
 	 
 	 
 
	 	By:  	TCW/Crescent
              Mezzanine II, L.P., as General Partner or Managing Owner
	 	 	 
	 	By:	TCW/Crescent
              Mezzanine, L.L.C., as General Partner 
	 	 	 
	 	By: 	/s/
              
	 	
              
                
Name: 
                John C. Rocchio

            
	 	Title: 
              Managing
              Director

    

     

    
      	 	 	 
	 	SHARED
              OPPORTUNITY FUND IIB, L.L.C., a Delaware Limited Liability
              Company
	 
 	 
 	 
 
	 	By:  	TCW
              Asset Management Company, as Investor Advisor
	 	 	 
	 	By:	 /s/
              
	 	 	
              
Name: 
              John
              C. Rocchio
	 	 	Title: 
              Managing
              Director
	 	 	 
	 	By: 	 /s/
              
	 	
              
Name: 
              James
              M. Hassett
	 	Title: Managing
              Director

    

    
    

     

    
 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

     

     

     

    
      	 	 	 
	 	TCW
              SHARED OPPORTUNITY FUND III, L.P., a Delaware Limited
              Partnership
	 
 	 
 	 
 
	 	By:  	 TCW
              Asset Management Company, as Investor Advisor
	 	 	 
	 	By:	 /s/
              
	 	 	
              
Name:
              John
              C. Rocchio
	 	 	Title: 
              Mananging
              Director
	 	 	 
	 	By:	/s/
              
	 	
              
Name:
              James
              M. Hassett
	 	Title:  
              Managing
              Director

    

      

    
      
        	 	 	 
	 	TCW
                LEVERAGED INCOME TRUST II, L.P., a Delaware Limited
                Partnership
	 
 	 
 	 
 
	 	By:  	TCW
                (LINCII), L.P., as General Partner
	 	 	 
	 	By: 	TCW Advisors
                (Bermuda), Ltd., as General Partner
	 	 	 
	 	By:	 /s/
                
	 	 	Name: 
                James M. Hassett
	 	 	Title: 
                Managing Director
	 	 	 
	 	By:	TCW
                Investment Management Company, as Investment Advisor 
	 	 	 
	 	By: 	 /s/
                
	 	
                
Name: 
                John
                C. Rocchio
	 	Title: 
                Managing Director

      

       

    

     

    
 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

     

    
      
        	
              	 	 
	 	TCW
                LEVERAGED INCOME TRUST, L.P., a Delaware Limited Partnership
	 
 	 
 	 
 
	 	By:  	TCW
                Investment Management Company, as Investment Advisor 
	 	 	 
	 	By:	 /s/
                
	 	 	
                
Name: 
                John C. Rocchio
	 	 	Title: 
                Managing Director
	 	 	 
	 	By:	TCW
                Advisors (Bermuda), Ltd., as General Partner
	 	 	 
	 	By: 	 /s/
                
	 	
                
Name: 
                James M. Hassett
	 	Title: 
                Managing Director

      

       

    

    
      	
            	 	 
	 	DLJ
              INVESTMENT PARTNERS II, L.P., a Delaware Limited Partnership
	 
 	 
 	 
 
	 	By:  	DLJ
              Investment Partners II, Inc., as Managing General
              Partner
	 	 	 
	 	By:	 /s/
              
	 	 	
              
Name: 
              John M. Moriarty, Jr.
	 	 	Title: 
              Managing Director
	 	 	 

    

     

    
      
        	
              	 	 
	 	DLJ
                INVESTMENT PARTNERS, L.P., a Delaware Limited Partnership
	 
 	 
 	 
 
	 	By:  	DLJ
                Investment Partners, Inc., as Managing General Partner
	 	 	 
	 	By:	 /s/
                
	 	 	
                
Name: 
                John M. Moriarty, Jr.
	 	 	Title: 
                Managing Director
	 	 	 

      

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

    
      
         

        
          	
                	 	 
	 	DLJIP
                  HOLDINGS, L.P., a Delaware Limited Partnership
	 
 	 
 	 
 
	 	By:  	DLJ
                  Investment Partners II, Inc., as General Partner
	 	 	 
	 	By:	 /s/
                  
	 	 	
                  
Name: 
                  John M. Moriarty, Jr.
	 	 	Title: 
                  Managing Director
	 	 	 

        

      

    

     

     

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    
      	 	 	 
	 	DLJ
              MERCHANT BANKING PARTNERS II, L.P., a Delaware Limited
              Partnership
	 
 	 
 	 
 
	 	By:  	DLJ
              Merchant Banking II, Inc., its Managing General
              Partner 

    

     

    
      	 	 	 
	 	DLJ
              MERCHANT BANKING PARTNERS II-A, L.P., a Delaware Limited
              Partnership
	 
 	 
 	 
 
	 	By:  	DLJ
              Merchant Banking II, Inc., its Managing General
              Partner 

    

     

    
      	 	 	 
	 	DLJ
              MILLENNIUM PARTNERS, L.P., a Delaware Limited Partnership
	 
 	 
 	 
 
	 	By:  	DLJ
              Merchant Banking II, Inc., as Managing General
              Partner 

    

     

    
      
        	 	 	 
	 	DLJ
                MILLENNIUM PARTNERS-A, L.P., a Delaware Limited Partnership
	 
 	 
 	 
 
	 	By:  	DLJ
                Merchant Banking II, Inc., as Managing General
                Partner 

      

       

    

    
      	 	 	 
	 	DLJ
              MERCHANT BANKING II, INC., as Advisory General Partner on behalf of 
              DLJ OFFSHORE PARTNERS, II, C.V.
	 
 	 
 	 
 
	 	Signed
              By or on Behalf of the Foregoing Entities: 
	 	 	 
	 	By:  	 /s/
	 	
              
Name:
	 	Title 

    

     

     

     

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

     

    
      
        	
              	 	 
	 	DLJ DIVERSIFIED
                PARTNERS, L.P., a Delaware Limited Partnership
	 
 	 
 	 
 
	 	By:  	DLJ
                Diversified Partners, Inc., as Managing General
                Partner 

      

       

      
        	 	 	 
	 	DLJ
                DIVERSIFIED PARTNERS-A, L.P., a Delaware Limited Partnership
	 
 	 
 	 
 
	 	By:
                 	DLJ
                Diversified Partners, Inc., as Managing General
                Partner 
	 	 	 
	 	Signed
                By or on Behalf of the Foregoing Entities: 
	 	 	 
	 	By:  	 /s/
	 	
                
Name:
	 	Title 

      

       

    

    
      	 	 	 
	 	DLJMB
              FUNDING II, INC., a Delaware corporation
	 
 	 
 	 
 
	 	By:  	 /s/
              
	 	
              
Name:
	 	Title 

    

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    
      
        	
              	 	 
	 	DLJ
                EAB PARTNERS, L.P., a Delaware Limited Partnership
	 
 	 
 	 
 
	 	By:  	DLJ LBO
                Plans Management Corporation, as General
                Partner 

      

       

      
        	 	 	 
	 	DLJ ESC
                II, L.P., a Delaware Limited Partnership
	 
 	 
 	 
 
	 	By:  	DLJ LBO
                Plans Management Corporation, as General
                Partner

      

       

      
        	 	 	 
	 	DLJ
                FIRST ESC, L.P., a Delaware Limited Partnership
	 
 	 
 	 
 
	 	By:  	DLJ LBO
                Plans Management Corporation, as General
                Partner

      

       

      
        	 	 	 
	 
 	Signed
                By or on Behalf of the Foregoing Entities:
	 	 	 
	 	By:  	/s/ 
	 	
                
Name:
	 	Title 

      

       

    

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Annex
      1

    Name
      and
      Address of Exchangers

    

    NORTHWESTERN
      MUTUAL LIFE INSURANCE COMPANY

    720
      East
      Wisconsin Avenue

    Milwaukee,
      Wisconsin 53202

    Attention:
      Derek Tyus

    Fax:
      414-299-7124

     

    with
      a
      copy of all notices to:

    

    Bingham
      Dana LLP

    One
      State
      Street

    Hartford,
      Connecticut 06103

    Attention
      of: Gary S. Hammersmith, Esq.

    Fax:
      860-240-280

    

    ARES
      LEVERAGED INVESTMENT FUND, L.P.

    In
      care
      of Ares Leveraged Investment Fund, L.P.

    1999
      Avenue of the Stars, Suite 1900

    Los
      Angeles, CA 90067

    Attention:
      Eric Beckman

    Fax:
      310-201-4170

     

    ARES
      LEVERAGED INVESTMENT FUND II, L.P.

    In
      care
      of Ares Leveraged Investment Fund II, L.P.

    1999
      Avenue of the Stars, Suite 1900

    Los
      Angeles, CA 90067

    Attention:
      Eric Beckman

    Fax:
      310-201-4170

     

    TCW/CRESCENT
      MEZZANINE PARTNERS II, L.P.

    In
      care
      of TCW/Crescent Mezzanine, L.L.C.

    11100
      Santa Monica Blvd., Suite 2000

    Los
      Angeles, CA 90025

    Attention:
      Jean-Marc Chapus

    Fax:
      310-235-5967

     

    TCW/CRESCENT
      MEZZANINE TRUST II

    In
      care
      of TCW/Crescent Mezzanine, L.L.C.

    11100
      Santa Monica Blvd., Suite 2000

    Los
      Angeles, CA 90025

    Attention:
      Jean-Marc Chapus

    Fax:
      310-235-5967

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    SHARED
      OPPORTUNITY FUND IIB, L.L.C.

    In
      care
      of TCW/Crescent Mezzanine, L.L.C.

    11100
      Santa Monica Blvd., Suite 2000

    Los
      Angeles, CA 90025

    Attention:
      Jean-Marc Chapus

    Fax:
      310-235-5967

     

    TCW
      SHARED OPPORTUNITY FUND III, L.P.

    In
      care
      of TCW/Crescent Mezzanine, L.L.C.

    11100
      Santa Monica Blvd., Suite 2000

    Los
      Angeles, CA 90025

    Attention:
      Jean-Marc Chapus

    Fax:
      310-235-5967

     

    TCW
      LEVERAGED INCOME TRUST II, L.P.

    In
      care
      of TCW/Crescent Mezzanine, L.L.C.

    11100
      Santa Monica Blvd., Suite 2000

    Los
      Angeles, CA 90025

    Attention:
      Jean-Marc Chapus

    Fax:
      310-235-5967

    

    TCW
      LEVERAGED INCOME TRUST, L.P.

    In
      care
      of TCW/Crescent Mezzanine, L.L.C.

    11100
      Santa Monica Blvd., Suite 2000

    Los
      Angeles, CA 90025

    Attention:
      Jean-Marc Chapus

    Fax:
      310-235-5967

     

    DLJ
      INVESTMENT PARTNERS II, L.P.

    Eleven
      Madison Avenue

    New
      York,
      NY 10010

    Attention:
      John M. Moriarty, Jr.

    Fax:

    

    DLJ
      INVESTMENT PARTNERS, L.P.

    Eleven
      Madison Avenue

    New
      York,
      NY 10010

    Attention:
      John M. Moriarty, Jr.

    Fax:

    

    DLJIP
      HOLDINGS, L.P.

    Eleven Madison
      Avenue

    New
      York,
      NY 10010

    Attention:
      John M. Moriarty, Jr.

    Fax:

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
 

    DLJ
      MERCHANT BANKING PARTNERS II, L.P.,

    In
      care
      of DLJ Merchant Banking II, Inc.

    Eleven
      Madison Avenue

    New
      York,
      NY 10010

    Attention:
      Ivy Dodes

    Fax:
      646-935-7449

    

    DLJ
      MERCHANT BANKING PARTNERS II-A, L.P.

    In
      care
      of DLJ Merchant Banking II, Inc.

    Eleven
      Madison Avenue

    New
      York,
      NY 10010

    Attention:
      Ivy Dodes

    Fax:
      646-935-7449

    

    DLJ
      OFFSHORE PARTNERS II, C.V.,

    In
      care
      of DLJ Merchant Banking, II, Inc.

    Eleven
      Madison Avenue

    New
      York,
      NY 10010

    Attention:
      Ivy Dodes

    Fax:
      646-935-7449

    

    DLJ
      DIVERSIFIED PARTNERS, L.P.,

    In
      care
      of DLJ Merchant Banking, II, Inc.

    Eleven
      Madison Avenue

    New
      York,
      NY 10010

    Attention:
      Ivy Dodes

    Fax:
      646-935-7449

    

    DLJ
      DIVERSIFIED PARTNERS-A, L.P.,

    In
      care
      of DLJ Merchant Banking, II, Inc.

    Eleven
      Madison Avenue

    New
      York,
      NY 10010

    Attention:
      Ivy Dodes

    Fax:
      646-935-7449

    

    DLJMB
      FUNDING II, INC.,

    In
      care
      of DLJ Merchant Banking, II, Inc.

    Eleven
      Madison Avenue

    New
      York,
      NY 10010

    Attention:
      Ivy Dodes

    Fax:
      646-935-7449

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
 

    DLJ
      MILLENNIUM PARTNERS, L.P.,

    In
      care
      of DLJ Merchant Banking, II, Inc.

    Eleven
      Madison Avenue

    New
      York,
      NY 10010

    Attention:
      Ivy Dodes

    Fax:
      646-935-7449

    

    DLJ
      MILLENNIUM PARTNERS-A, L.P.

    In
      care
      of DLJ Merchant Banking, II, Inc.

    Eleven
      Madison Avenue

    New
      York,
      NY 10010

    Attention:
      Ivy Dodes

    Fax:
      646-935-7449

    

    DLJ
      EAB
      PARTNERS, L.P.

    In
      care
      of DLJ Merchant Banking, II, Inc.

    Eleven
      Madison Avenue

    New
      York,
      NY 10010

    Attention:
      Ivy Dodes

    Fax:
      646-935-7449

    

    DLJ
      ESC
      II, L.P.

    In
      care
      of DLJ Merchant Banking, II, Inc.

    Eleven
      Madison Avenue

    New
      York,
      NY 10010

    Attention:
      Ivy Dodes

    Fax:
      646-935-7449

    

    DLJ
      FIRST
      ESC, L.P.,

    In
      care
      of DLJ Merchant Banking, II, Inc.

    Eleven
      Madison Avenue

    New
      York,
      NY 10010

    Attention:
      Ivy Dodes

    Fax:
      646-935-7449

    

    with
      a
      copy of all notices to any DLJMB Entity to:

     

    Davis
      Polk & Wardwell

    450
      Lexington Avenue

    New
      York,
      NY 10017

    Attention:
      Nancy L. Sanborn

    Fax:
      212-450-3800

     

    

     

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

     

    Annex
      2

     

     
      
        	
                Address
                  of Initial Stockholder

                 

              
	
                EAC
                  III
                  L.L.C.                             

                In
                  care of Ripplewood Partners, L.P.

                One
                  Rockefeller Plaza, 32nd Floor

                New
                  York, NY
                  10020

              

      

    

     

     

          

                          
      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

                          
      

                  
      EXHIBIT A

     

    

       

      FORM
        OF
        TRANSFEREE UNDERTAKING

       

      [Letterhead
        of Transferee]

       

      [Dated
        ________]

      WRC
        Media
        Inc.

      c/o
        Ripplewood Partners, L.P.

      One
        Rockefeller Plaza, 32nd Floor

      New
        York,
        NY 10020

       

      Re:
        WRC
        Media Inc. Issuable Shares

       

      Ladies
        and Gentlemen:

       

      Pursuant
        to Section 4.01 of that certain Stockholders Agreement, dated as of
        June
        22, 2005 among WRC, the Exchangers (as defined therein) and the Initial
        Stockholder (as defined therein), ________ [name of transferee] (the
“Transferee”),
        as
        owner and holder of ________ shares of ________ [type of Issuable Shares],
        hereby confirms and agrees that it has assumed and is subject to the obligations
        of [a holder of Exchange Shares] [the Initial Stockholder] [an Other
        Stockholder], as provided in the Stockholders Agreement.

       

      The
        address where notices and communications pursuant to Section 6.01
        of the
        Stockholders Agreement can be delivered to the Transferee is as
        follows:

       

      [Transferee]

       

      IN
        WITNESS WHEREOF, the Transferee executes and delivers this agreement, as
        of the
        date and year first above written.

       

      
        
          	 	 	 
	 	[TRANSFEREE]
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
                  
Name:
	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]