Document:

EX-10.1

 Exhibit 10.1 

TRANSITION SERVICES AGREEMENT 

between 
 BARNES & NOBLE,
INC. 
 and 
 BARNES &
NOBLE EDUCATION, INC. 
 Dated as of [●], 2015 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	ARTICLE I	  
	
	Definitions	  
			
	 SECTION 1.01.
	 	 Defined Terms
	  	 	1	  
	
	ARTICLE II	  
	
	Services to be Provided	  
			
	 SECTION 2.01.
	 	 Provision of Services
	  	 	2	  
	 SECTION 2.02.
	 	 Agreement Coordinators
	  	 	2	  
	 SECTION 2.03.
	 	 Performance Standard
	  	 	3	  
	 SECTION 2.04.
	 	 Warranty Disclaimer
	  	 	3	  
	 SECTION 2.05.
	 	 Consents
	  	 	3	  
	
	ARTICLE III	  
	
	Term; Fees Reports	  
			
	 SECTION 3.01.
	 	 Service Term
	  	 	3	  
	 SECTION 3.02.
	 	 Early Termination
	  	 	4	  
	 SECTION 3.03.
	 	 Fees and Costs
	  	 	4	  
	
	ARTICLE IV	  
	
	Monthly Statements; Audits; Disagreements; Taxes	  
			
	 SECTION 4.01.
	 	 Monthly Statements
	  	 	4	  
	 SECTION 4.02.
	 	 Books and Records; Audits
	  	 	4	  
	 SECTION 4.03.
	 	 Disagreements
	  	 	5	  
	 SECTION 4.04.
	 	 Taxes
	  	 	6	  
	
	ARTICLE V	  
	
	Recipient Assistance	  
			
	 SECTION 5.01.
	 	 Recipient Assistance
	  	 	7	  
	
	ARTICLE VI	  
	
	Limitation on Liability	  
			
	 SECTION 6.01.
	 	 Limitation on Liability
	  	 	7	  

  
 i 

							
	
	ARTICLE VII	  
	
	Force Majeure	  
			
	 SECTION 7.01.
		 Force Majeure
		 	8	  
	
	ARTICLE VIII	  
	
	Miscellaneous	  
			
	 SECTION 8.01.
		 Entire Agreement; Third Party Beneficiaries
		 	8	  
	 SECTION 8.02.
		 Notices
		 	8	  
	 SECTION 8.03.
		 Successors and Assignment
		 	9	  
	 SECTION 8.04.
		 Amendment
		 	9	  
	 SECTION 8.05.
		 Waivers
		 	9	  
	 SECTION 8.06.
		 Books and Records
		 	9	  
	 SECTION 8.07.
		 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial
		 	10	  
	 SECTION 8.08.
		 Severability
		 	11	  
	 SECTION 8.09.
		 Counterparts
		 	11	  
	 SECTION 8.10.
		 Headings
		 	11	  
	 SECTION 8.11.
		 Interpretation
		 	11	  

 EXHIBITS 
  

			
	Exhibit A		 Transitional Services

  
 ii 

 TRANSITION SERVICES AGREEMENT (this “Agreement”) dated as of
[●], 2015, is between Barnes & Noble, Inc., a Delaware corporation (“B&N”), and Barnes & Noble Education, Inc., a Delaware corporation (“BNED” or “Recipient”, together with
B&N, the “Parties” and each, a “Party”). 
 WHEREAS, in connection with a spin-off of BNED by B&N
and concurrently with the execution of this Agreement, B&N and BNED are entering into a Separation and Distribution Agreement (the “Separation Agreement”); 

WHEREAS, BNED desires to obtain certain of the transition services pursuant to the terms and conditions hereunder from B&N and any of
B&N’s Affiliates or third parties (B&N and each such Affiliate of B&N and third party providing such services are hereinafter sometimes referred to as a “Service Provider”); and 

WHEREAS, B&N is willing to provide to BNED the Services (as defined herein) in order to facilitate BNED’s operation of BNED Business
after the date of this Agreement. 
 NOW, THEREFORE, in consideration of the mutual covenants and undertakings contained herein, and subject
to and on the terms and conditions herein set forth, the Parties hereto agree as follows: 
 ARTICLE I 

Definitions 
 SECTION
1.01. Defined Terms. Each capitalized term used and not defined in this Agreement shall have the meaning assigned to it in the Separation Agreement. For purposes of this Agreement, the following words and phrases shall have the following
meanings: 
 “Damages” means losses, liabilities, damages, deficiencies, costs and expenses directly incurred or suffered
(and, if applicable, reasonable attorneys’ fees associated therewith), but shall not include indirect, incidental, consequential or special damages, or punitive damages of any kind, whether or not foreseen, in each case, whether or not based on
contract, tort, warranty claims or otherwise (unless any such damages are components of any third-party claim), in connection with this Agreement. 

“Field of Use” has the meaning set forth in the Separation Agreement. 

“Pass-Through Cost”, with respect to any Service provided by a Service Provider, means the sum of (i) the direct cost to
such Service Provider of providing such Service plus (ii) an allocation of the related employee overhead (including compensation and benefit costs) calculated in good faith based on reasonable and rational methodologies chosen by the
Service Provider, which methodologies shall be provided to the Recipient upon such request from the Recipient. 

 “Service Fee”, with respect to a Service, means (a) the fee specified on
Exhibit A with respect to such Service or (b) if no such fee is specified, the Pass-Through Cost with respect to such Service. 

“Taxes” means all goods and services, value added, sales, use, gross receipts, business, consumption and other similar taxes,
levies and charges (other than income taxes), including interest and penalties, imposed by applicable taxing authorities. 
 ARTICLE II 

Services to be Provided 

SECTION 2.01. Provision of Services. (a) Pursuant to the terms and conditions of this Agreement (including the Exhibit and
Schedule hereto), B&N hereby agrees to furnish BNED, directly or through one or more Subsidiaries, certain services relating to the BNED Business (the “Services” as set forth in Exhibit A). 

(b) In the event that Recipient reasonably requests upon reasonable advance notice, and Service Provider elects to provide, any support or
service not identified in Exhibit A (including in respect of any increase in the scope of any Service), such support or service shall be provided at the Pass-Through Cost. If Recipient requests that Exhibit A be amended so
that the level or volume of any Service be increased or that the manner in which any Service is provided be changed such that an amendment to such Exhibit would be required, Service Provider will not be required to increase the level or volume of
such Service or change the manner in which such Service is provided unless and until such an amendment is agreed to by Service Provider. If Service Provider agrees to amend the applicable Exhibit to increase the level or volume of such Service or
change the manner in which such Service is provided as contemplated by the immediately preceding sentence, such support or service shall be provided at the Pass-Through Cost. 

(c) Designation of Subsidiaries. Recipient may designate, with the consent of Service Provider (such consent to not be unreasonably
withheld, conditioned or delayed), one or more Subsidiaries to receive Services, in which event all references herein to Recipient will be deemed to refer to such Subsidiaries, as appropriate; provided, however, that no such
designation will in any event limit or affect the obligations of Recipient under this Agreement to the extent not performed by such Subsidiaries. 

SECTION 2.02. Agreement Coordinators. Each Party shall designate in writing a representative to act as the primary contact person with
respect to all issues relating to the provision of Services pursuant to this Agreement (each, an “Agreement Coordinator”) and may determine to designate from time to time additional functional experts for each of Recipient and
Service Provider for specific Services to facilitate knowledge transfer and act as contact persons. The Agreement Coordinators and any functional experts so designated shall hold review meetings with each other by telephone or in person, as mutually
agreed upon, on a semi-annual basis to discuss (i) issues relating to the provision of the Services, (ii) any problems identified with the provision of 

  
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Services and (iii) to the extent Service changes are agreed upon, the implementation of such changes. Each Party may replace its appointed Agreement Coordinator at any time upon written
notice to the other Party; provided, however, that each Party shall use commercially reasonable efforts to preserve continuity of such Party’s Agreement Coordinator. 

SECTION 2.03. Performance Standard. Service Provider shall perform, or shall cause one or more of its Service Providers to perform,
each Service to be provided by such Service Provider in compliance with applicable Law and (a) if such Service has been provided by B&N or a Subsidiary thereof prior to the date of this Agreement, at a quality level and in the same manner
as such Service has been provided in the 12-month period prior to the date hereof and (b) if such Service has not been so provided, at a quality level and in a manner that is commercially reasonable, unless, in each case under this
Section 2.03, a different or additional standard of performance is specified in Exhibit A, with respect to such Service. 

SECTION 2.04. Warranty Disclaimer. EXCEPT AS SET FORTH IN SECTION 2.03, SERVICE PROVIDER MAKES NO IMPLIED REPRESENTATION OR
WARRANTY CONCERNING THE SERVICES, INCLUDING ANY APPLICABLE IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND SERVICE PROVIDER HEREBY EXPRESSLY DISCLAIMS ANY APPLICABLE IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE WITH RESPECT TO THE SERVICES. 
 SECTION 2.05. Consents. Recipient shall pay any reasonable fee, cost or expense
incurred by Service Provider in connection with Service Provider’s obtaining any consent, approval, permit, license or authorization required for the provision of any Service. To the extent reasonably practical, Service Provider shall provide
advance notice to Recipient prior to Service Provider incurring any such cost, fee or expense; it being understood that such Service Provider’s obligation to provide any such Service is conditioned upon it obtaining such required consent,
approval, permit, license or authorization. If any such consent, approval or authorization is not obtained promptly after the date of this Agreement, Service Provider shall notify Recipient and the Parties shall cooperate in good faith to devise an
alternative arrangement for the provision of such Service. Service Provider shall perform such mutually satisfactory alternative arrangement and Recipient shall bear any reasonable additional costs and expenses incurred in the performance of such
alternative arrangement. 
 ARTICLE III 

Term; Fees Reports 

SECTION 3.01. Service Term. The term of provision of each Service is as set forth in Exhibit A (the “Service
Period”). At least 30 days prior to the end of any applicable Service Period, Recipient may request and Service Provider, in its sole discretion may agree to provide, an additional extension for the provision of any Service beyond the
applicable Service Period. If Service Provider agrees, in its sole discretion, to grant such an additional extension, such agreement must be in writing. 

  
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 SECTION 3.02. Early Termination. (a) Either Party may immediately terminate this
Agreement upon the material breach of this Agreement by the other Party if such material breach is not cured within 30 days after written notice thereof to the Party in material breach. 

(b) Except as otherwise agreed to by the Parties or as otherwise provided in Exhibit A, Recipient may terminate any Service in whole
but not in part, as long as Recipient provides Service Provider written notice of such termination at least 30 days prior to any such termination. 

(c) B&N may terminate this Agreement immediately in the event BNED (i) no longer continues to operate as a going concern,
(ii) no longer continues to operate in the Field of Use, (iii) changes its name such that it no longer includes “Barnes & Noble” or the abbreviation “B&N”, or otherwise ceases to use the Licensed Marks (as
defined in the TLA) or (iv) upon a termination of the TLA in connection with a BNED Fundamental Change (as defined in the TLA) (each event described in this paragraph, a “Termination Event”). Upon the occurrence of a
Termination Event described in clause (i), (ii) or (iii) hereof, B&N shall continue to provide each Service to BNED until the earlier of (A) the end of the Service Period and (B) the 180th day after the occurrence of such
Termination Event. Upon the occurrence of a Termination Event described in clause (iv) hereof, B&N and BNED shall cooperate in good faith with respect to the transition. 

SECTION 3.03. Fees and Costs. In consideration for rendering the applicable Services, Service Provider shall be entitled to receive a
service fee equal to the Service Fee. In the event that the Service Fee for a Service is not based on Pass-Through Cost and the cost to Service Provider of providing such Service increases, the Parties will discuss in good faith whether an
adjustment to such Service Fee is appropriate under the circumstances, unless a review and adjustment mechanism is specified in the Exhibit in which such Service is described. 

ARTICLE IV 
 Monthly
Statements; Audits; Disagreements; Taxes 
 SECTION 4.01. Monthly Statements. Within 15 days following the end of each calendar
month, Service Provider shall provide to Recipient (x) an invoice (the “Monthly Statement”) setting forth the Service Fees, relating to the immediately preceding calendar month. Recipient shall remit the amount set forth on the
Monthly Statement within 45 days of receipt thereof. 
 SECTION 4.02. Books and Records; Audits. (a) During the Term and for a
period of at least seven years thereafter, each of the parties will keep and maintain, and will require each of its Affiliates to keep and maintain, complete and accurate books and records related to its compliance with all terms and conditions of
this Agreement (collectively, “Audit Information”). 

  
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 (b) For the purpose of ensuring the accuracy and completeness of the amounts charged hereunder
for any monthly period during the Term (including the calculation of Service Fees and Pass-Through Costs), upon not less than 30 days’ advance written notice from a party desiring to conduct an audit (“Auditing Party”) of
another party’s (the “Audited Party”) Audit Information, the Audited Party will make such Audit Information available for audit by an independent certified public accounting firm (together with independent technical personnel
if and as reasonably required for such accountant to perform the audit) designated by the Auditing Party and approved by the Audited Party, which approval will not be unreasonably withheld. Unless otherwise agreed by the Auditing Party and the
Audited Party, any such audit will be conducted during regular business hours, at the Audited Party’s principal place of business, not more frequently than once in any period of 12 consecutive months and in a manner that does not unreasonably
interfere with the Audited Party’s normal course of business. Notwithstanding the foregoing, the Auditing Party may conduct more than one audit within a 12-month period if, in the Auditing Party’s good faith judgment, the Auditing Party
has a bona fide basis for any failure of the Audited Party to comply with its obligations under this Agreement. If any audit reveals an overpayment by the Audited Party, then the Audited Party will receive a credit, in the amount of such
overpayment, that will be applied only against future amounts owing by the Audited Party under this Agreement. If any audit reveals an underpayment by the Audited Party, then the Audited Party will pay the amount of the underpayment within 45 days
after the date of the auditor’s report. Further, if any audit reveals an underpayment of more than 5% of the total amount subject to the audit, then the Audited Party will reimburse the Auditing Party within 30 days after the Auditing
Party’s request, for all costs and expenses reasonably incurred by the Auditing Party to conduct the audit. 
 SECTION 4.03.
Disagreements. (a) In the event it disagrees with any Monthly Statement, Recipient shall give Service Provider written notice thereof (the “Notice of Disagreement”) as to any of the Monthly Statements or amounts set
forth therein. The Notice of Disagreement shall specify in reasonable detail the nature and amount of any disagreement so asserted. If a timely Notice of Disagreement is received by Service Provider, then the Monthly Statement(s) (as revised in
accordance with clause (x) or (y) below), as the case may be, shall become final and binding upon the Parties on the earlier of (x) the date the Parties hereto resolve any differences they have with respect to any matter specified in
the Notice of Disagreement or (y) the date any matters in dispute are resolved by an accounting firm (in accordance with the procedure set forth in this Section 4.03) selected by Service Provider and Recipient in writing or, if the Parties
are unable to agree, an independent accounting firm selected by Service Provider’s and Recipient’s independent accounting firms (such firm, the “Accounting Firm”). 

(b) Recipient and Service Provider acknowledge and agree that, so long as both Parties are in compliance with the provisions of this
Section 4.03, Sections 9.05 and 9.07 of the Separation Agreement and the provisions of Article VI of this Agreement shall not apply to any dispute described in this Section 4.03. During the 30-day period

  
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immediately following the delivery of the Notice of Disagreement, Service Provider and Recipient shall seek in good faith to resolve in writing any differences they may have with respect to any
matter specified in the Notice of Disagreement. At the end of such 30-day period, Service Provider and Recipient shall submit for review and resolution by the Accounting Firm any and all matters which remain in dispute and which were included in the
Notice of Disagreement, and the Accounting Firm shall make a final determination of the amounts set forth on the Monthly Statement(s) and shall use such determination to prepare the revised Monthly Statement(s), which determination shall be binding
on the Parties, it being understood that any such values shall be only within the range of the amounts proposed by Recipient and Service Provider; provided, however, the scope of such determination by the Accounting Firm shall be
limited to: (i) those matters that remain in dispute and that were included in the Notice of Disagreement, (ii) whether, for each calculation on the Monthly Statement(s), such calculation was prepared in accordance with this Agreement, and
(iii) whether there were mathematical errors in the Monthly Statement(s), and the Accounting Firm is not authorized or permitted to make any other determination. Without limiting the generality of the foregoing, the Accounting Firm is not
authorized or permitted to make any determination as to compliance by Service Provider with any of the covenants in this Agreement or any Transaction Agreement (other than this Section 4.03). 

(c) Any revised Monthly Statement(s) shall become final and binding on Recipient and Service Provider on the date the Accounting Firm delivers
such revised Monthly Statement(s) to the Parties. If the amount shown on any such revised Monthly Statement(s) indicates that a Party has overpaid or underpaid the other Party for the applicable period, then the applicable Party shall promptly
reimburse such overpaid or underpaid amount, or, in the case of an overpayment, receive a credit against future amounts owing by such overpaying Party, at such Party’s option. The fees and expenses of the Accounting Firm pursuant to this
Section 4.03 with respect to any Monthly Statement shall be paid by Recipient unless the amount shown on any Monthly Statement exceeds the amount paid pursuant to such Monthly Statement by 5%, in which case Service Provider will pay the
reasonable fees and expenses of the Accounting Firm. 
 SECTION 4.04. Taxes. (a) Recipient shall be responsible for Taxes
attributable to the supply of Services to Recipient or any payment hereunder. If Service Provider is required to pay any part of such Taxes, Recipient shall reimburse Service Provider for such Taxes. In the event that applicable Law requires that an
amount in respect of any taxes, levies or charges be withheld from any payment by Recipient to Service Provider under this Agreement, the amount payable to Service Provider shall be increased as may be necessary so that, after Recipient has withheld
amounts required by applicable Law, Service Provider receives an amount equal to the amount it would have received had no such withholding been applicable, and Recipient shall withhold such adjusted amounts and pay such withheld amounts over to the
applicable taxing authority in accordance with the requirements of the applicable Law. 
 (b) In the event applicable Law requires the
charging of any Tax in connection with the Services hereunder, invoices issued with respect to such Services may include additional amounts charging such Taxes. If sums invoiced without Taxes 

  
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become subject to Taxes, then those invoices shall be deemed to be exclusive of Taxes and the party receiving the invoice shall, in addition to the sums payable, pay the invoicing party the full
amount of Taxes chargeable thereon. 
 ARTICLE V 

Recipient Assistance 

SECTION 5.01. Recipient Assistance. The timely completion of Services by Service Provider may depend upon the provision of certain
materials and information and the taking of certain actions by Recipient, and Service Provider shall not be responsible for the failure to provide Services to the extent that such failure results from the failure of Recipient to provide such
materials or information or take such actions. Recipient shall provide to Service Provider (a) information reasonably necessary to the performance of the Services by Service Provider hereunder, (b) any necessary specific written
authorizations and consents and (c) reasonable access to Recipient’s books and records necessary in Recipient’s reasonable opinion for the performance of the Services by Service Provider hereunder. Recipient will execute such
documents evidencing the authority for Service Provider and its Affiliates to represent Recipient and its Affiliates as may be reasonably necessary to the performance of the Services hereunder. 

ARTICLE VI 
 Limitation on
Liability 
 SECTION 6.01. Limitation on Liability. (a) Except as contemplated by Section 4.03, Service Provider’s
maximum liability (including any liability for the acts and omissions of any of its Affiliates or any of its or their respective directors, officers, employees, Affiliates, agents, consultants, subcontractors or representatives) to the Recipient for
matters arising out of this Agreement shall be limited to the aggregate amount of the Service Fees received; provided that the foregoing shall not (i) impair the ability of the Recipient to seek any remedy of injunctive relief or
specific performance against Service Provider or (ii) limit any claim of fraud or intentional or willful misrepresentation by Service Provider. In no event shall any Party or any of its Affiliates have any liability for special, punitive,
exemplary, multiplied, indirect, incidental or consequential damages, including loss of profit damages, or for attorneys’ fees and costs and prejudgment interest, in each case as a result of provision of or failure to provide the Services under
the terms of this Agreement; provided, however, that the foregoing shall not be construed to preclude recovery of any such Damages that are actually recovered by third parties in connection with losses indemnified hereunder. 

(b) Notwithstanding anything to the contrary contained herein, (i) nothing herein shall limit or exclude any damages or claims to the
extent resulting from a Party’s gross negligence, fraud, intentional breach or willful misconduct and (ii) neither Service Provider nor any of its Affiliates shall have any liability relating to the implementation, execution or use by
Recipient or any of its Affiliates of the Services provided under the terms of this Agreement, except in the case of any gross negligence, fraud, intentional misrepresentation or willful misconduct. 

  
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 ARTICLE VII 

Force Majeure 
 SECTION
7.01. Force Majeure. The Parties shall be relieved of their obligations hereunder, if and to the extent that any of the following events hinder, limit or make impracticable the performance by any Party of any of its obligations hereunder:
war, terrorist act, riot, fire, explosion, accident, flood, sabotage, compliance with Law, orders or actions, national defense requirements, labor strike, lockout or injunction, or any other event beyond the reasonable control and without the fault
or negligence of such Party. The Party thus hindered or whose performance is otherwise affected shall promptly give the other Party written notice thereof and shall use commercially reasonable efforts to remove or otherwise address the impediment to
action and to resume performance of its affected obligations as soon as practicable; provided that neither Party shall be required to settle a labor dispute other than as it may determine in its sole judgment. 

 
 ARTICLE VIII 

Miscellaneous 
 SECTION
8.01. Entire Agreement; Third Party Beneficiaries. This Agreement constitutes the entire agreement among the Parties with respect to the subject matter hereof and supersedes all prior agreements, understandings and negotiations, both written
and oral, between the Parties with respect to the subject matter hereof. This Agreement is not intended to confer upon any Person, other than the Parties to this Agreement, any rights or remedies hereunder. 

SECTION 8.02. Notices. Any notice, instruction, direction or demand under the terms of this Agreement will be duly given upon delivery,
if delivered by hand, facsimile transmission or mail, to the following addresses: 
  

	 	(a)	If to BNED, to: 

 Barnes & Noble Education, Inc. 

120 Mountain View Blvd 
 Basking
Ridge, NJ 07920 
 Attention: General Counsel 

  
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	 	(b)	If to B&N, to: 

 Barnes & Noble, Inc. 

122 Fifth Avenue 
 New York, NY
10011 
 Attention: General Counsel 

Facsimile: (212) 463-5683 
 or to such other
address as any person shall specify by written notice so given, and such notice shall be deemed to have been delivered as of the date so telecommunicated, personally delivered or scheduled to be received if sent by overnight delivery service. Any
party to this Agreement may notify any other party of any changes to the address or any of the other details specified in this paragraph; provided, however, that such notification shall only be effective on the date specified in such notice or five
Business Days after the notice is given, whichever is later. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to be receipt of the notice as of the date of such
rejection, refusal or inability to deliver. 
 SECTION 8.03. Successors and Assignment. This Agreement shall be binding upon and
inure to the benefit of the Parties and their respective successors and permitted assigns. This Agreement may not be assigned by either Party by operation of law or otherwise without the express written consent of the other Party, which consent may
be granted or withheld by such Party in its sole discretion. Any such assignment made without such consent shall be null and void for all purposes. 

SECTION 8.04. Amendment. This Agreement may only be amended by a written agreement executed by both Parties. 

SECTION 8.05. Waivers. The observance of any term of this Agreement may be waived (either generally or in a particular instance and
either retroactively or prospectively) by the Party entitled to enforce such term, but such waiver shall be effective only if it is in writing signed by a duly authorized officer of the Party against which such waiver is to be asserted. Unless
otherwise expressly provided in this Agreement, no delay or omission on the part of any Party in exercising any right or privilege under this Agreement shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any right or
privilege under the Agreement operate as a waiver of any other right or privilege under this Agreement, nor shall any single or partial exercise of any right or privilege preclude any other or future exercise thereof or the exercise of any other
right or privilege under this Agreement. No failure by either Party to take any action or assert any right or privilege hereunder shall be deemed to be a waiver of such right or privilege in the event of the continuation or repetition of the
circumstances giving rise to such right unless expressly waived in writing by the Party against whom the existence of such waiver is asserted. 

SECTION 8.06. Books and Records. Upon the expiration of the Agreement or upon the termination of a Service or Services with respect to
which Service Provider holds books, records, files or any other documents of Recipient, Service Provider will return such books, records, files and any other documents of Recipient that Service Provider has in its possession as soon as reasonably
practicable. 

  
 9 

 SECTION 8.07. Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.
(a) This Agreement shall be construed in accordance with and governed by the substantive internal laws of the State of New York. 

(b) Each of the Parties hereto irrevocably agrees that any legal action or proceeding with respect to this Agreement and the rights and
obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder, brought by the other Party hereto or its successors or assigns shall be brought and
determined exclusively in any state or federal court in the City of New York, Borough of Manhattan, so long as one of such courts shall have subject matter jurisdiction over such legal action or proceeding, and that any cause of action arising out
of this Agreement shall be deemed to have arisen from a transaction of business in the state of New York. Each of the parties hereto hereby irrevocably submits with regard to any such action or proceeding for itself and in respect of its property,
generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any action relating to this Agreement or any of the transactions contemplated by this Agreement in any court other than the
aforesaid courts. Each of the Parties hereto hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in any action or proceeding with respect to this Agreement, (1) any claim that it is
not personally subject to the jurisdiction of the above-named courts for any reason, (2) any claim that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether
through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (3) to the fullest extent permitted by the applicable law, any claim that (a) the suit, action or
proceeding in such court is brought in an inconvenient forum, (b) the venue of such suit, action or proceeding is improper or (c) this Agreement, or the subject matter hereof, may not be enforced in or by such courts. Each Party hereto
hereby irrevocably consents to the service of process in any action, suit or other proceeding arising out of or relating to this Agreement or any of the transactions contemplated by this Agreement, on behalf of itself or its property, by U.S.
registered mail to such party’s respective address set forth below, and nothing in this Section 8.07(b) shall affect the right of any Party to serve legal process in any other manner permitted by law. 

(c) EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
ANY SUIT, ACTION, CLAIM OR OTHER PROCEEDING ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY HERETO (1) CERTIFIES THAT NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF ANY ACTION, SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (2) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVER
AND CERTIFICATIONS IN THIS SECTION 8.07(c). 

  
 10 

 SECTION 8.08. Severability. If any provision of this Agreement shall be invalid or
unenforceable, such invalidity or unenforceability shall not render the entire Agreement invalid. Rather, the Agreement shall be construed as if not containing the particular invalid or unenforceable provision, and the rights and obligations of each
Party shall be construed and enforced accordingly. 
 SECTION 8.09. Counterparts. This Agreement may be executed in separate
counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute one agreement. 
 SECTION
8.10. Headings. The article, section and other headings contained in this Agreement are inserted for the convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement. 

SECTION 8.11. Interpretation. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an
ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any
of the provisions of this Agreement. Any reference to any federal, state, local or foreign Law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. When a reference is made in this
Agreement to a Party or to a Section or Exhibit, such reference shall be to a Party to, a Section of, or an Exhibit to, this Agreement, unless otherwise indicated. All terms defined in this Agreement shall have their defined meanings when used in
any Exhibit to this Agreement or any certificate or other document made or delivered pursuant hereto, unless otherwise defined therein. Whenever the words “include”, “includes”, “including” or “such as” are
used in this Agreement, they shall be deemed to be followed by the words “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. The words “hereof”,
“herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The word “or” when used in this Agreement
is not exclusive. The word “extent” in the phrase “to the extent” means the degree to which a subject or other thing extends, and such phrase shall not mean simply “if”. Whenever used in this Agreement, any noun or
pronoun shall be deemed to include the plural as well as the singular and to cover all genders. Any agreement, instrument or statute defined or referred to herein means such agreement, instrument or statute as from time to time amended, supplemented
or modified, including (i) (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and (ii) all attachments thereto and instruments incorporated therein.
The words “asset” and “property” shall be construed to have the same meaning and effect. References to a Person are also to its permitted successors and permitted assigns. 

  
 11 

 IN WITNESS WHEREOF, the Parties have each caused this Agreement to be executed by its duly
authorized representative as of the day and year first above written. 
  

					
	BARNES & NOBLE, INC.,
			
			by		  

					Name:
					Title:
	
	BARNES & NOBLE EDUCATION, INC.
			
			by		  

					Name:
					Title:

 [Signature Page to the Transition Services Agreement] 

  
 12 

 EXHIBIT A 

Human Resources 
  

					
	 Description of Service:
	  	 End Date:
	  	 Fee:

	HR Administration: B&N shall provide BNED general advice, consultation for benefits administration, timekeeping and processing for payroll services.	  	 December 31, 2016.
  

BNED has the option to extend the end date of payroll processing service to December 31, 2017.
	  	 Pro rata share of HR service center costs (based upon average employee count).

 
 Pass-Through Cost for all other HR Administration services.

	Learning and Development (Navex Global): B&N shall provide BNED access to the Preventing Workplace Harassment course from the Navex Global, provided such vendors consent to B&N’s provision of such access to
BNED.	  	February 4, 2017	  	No cost.
	Learning and Development (Trivantis): B&N shall provide BNED access to the LMS by Trivantis, provided such vendors consent to B&N’s provision of such access to BNED.	  	The first anniversary of the date of this Agreement.	  	20% of B&N’s Annual payment to Trivantis.

  
 A-1 

 Finance and Travel 

 

					
	 Description of Service:
	  	 End Date:
	  	 Fee:

	Expenses: B&N shall continue to make available to BNED its expense payment services provided by Concur under contract. 	  	The first anniversary of the date of this Agreement.	  	Pass-Through Cost.
	Travel Services: B&N shall continue to make available to BNED its travel services provided by American Express Company under contract, provided such vendor permits B&N’s provision of such services to BNED. 	  	The second anniversary of the date of this Agreement.	  	Pass-Through Cost.

  
 A-2 

 Digital Content Services 

 

					
	 Description of Service:
	  	 End Date:
	  	 Fee:

	Metadata Feed for Digital Trade Books: B&N will make available metadata relating to digital trade books.	  	The six-month anniversary of the date of this Agreement.	  	$30,000 per month.
	Customer Service: B&N will provide staffing oversight of third party customer service agents, review and analyze consolidated reports from third party and audit third party invoicing. B&N will also host and maintain
the customer service toll-free lines staffed by third party.	  	The two-year anniversary of the date of this Agreement.	  	$2,000 per month plus Pass-Through Costs.

  
 A-3 

 General Oversight and Consultation 

 

					
	 Description of Service:
	  	 End Date:
	  	 Fee:

	Legal: General legal advice and services.	  	The six-month anniversary of the date of this Agreement.	  	 For services provided by B&N employees: Pass-Through Cost.

 
 For outside Service Providers, all direct costs to B&N relating to such Service
directly attributable to BNED.

	Treasury: General advice and consultation in the areas of cash management, management of bank lines, and management of cash investments.	  	The six-month anniversary of the date of this Agreement.	  
	Investor Relations: General advice and consultation in the areas of investor relations, investor website management, investor webcast and quarterly conference call preparation, Annual Report preparation and press release
preparation and dissemination.	  	The 60th day after the date of this Agreement.	  
	PR: Assistance with public relations and media strategy, issuing press releases, organizing and holding briefings, author launch events, device launch events and other launch events and general media and public relations
services, including through the use of and provision of access to outside public relations firms and other relevant external service providers.	  	The 60th day after the date of this Agreement.	  
	SEC Reporting: General advice and consultation relating to SEC reporting obligations, including advice on filing through EDGAR. 	  	The 90th day after the date of this Agreement.	  
	Tax: General advice and consultation in the areas of federal and state tax planning and compliance, management of open audits, tax accounting, general advice on audit dispute resolution, calculation of estimated tax payments,
tax compliance software selection, and preparation, review and filing of all tax returns.	  	The 18-month anniversary of the date of this Agreement.	  

  
 A-4 

					
	Insurance/Risk Management: General advice, consultation and performance of duties in the areas of broker selection, review of bids, selection and monitoring of insurers/underwriters, communications with brokers and
underwriters, claims management and reporting, and interpretation of reports inclusive of Worker’s Compensation plans and vendors.		The six-month anniversary of the date of this Agreement.		 For services provided by B&N employees: Pass-Through Cost.
  

For outside Service Providers, all direct costs to B&N relating to such Service directly attributable to BNED.

			
	Payments Administration under Certain Insurance Policies: B&N shall manage and administer payments on Pre-Separation Insurance Claims under the insurance policies identified in Section 8.01(c) of the Separation
Agreement on behalf of BNED in accordance with the Separation Agreement. BNED shall pay B&N for such management and administration on a monthly basis. 		Until such Pre-Separation Insurance Claims are resolved.		Pass-Through Cost.
			
	Internal Audit: General advice and consultation regarding internal audit procedures.		The six-month anniversary of the date of this Agreement.		Pass-Through Cost.

  
 A-5 

 IT Systems Infrastructure 

 

					
	 Description of Service:
	  	 End Date:
	  	 Fee:

	Reflexis Eplanner System: The hosting of the Reflexis eplanner system, provided such vendor permits B&N’s provision of such services to BNED. 	  	The first anniversary of the date of this Agreement.	  	$1,667 per month.
	Datacenter Monitoring: B&N will monitor the uptime and performance of the datacenter during off-hours when BNED does not have staff to undertake such monitoring. 	  	The first anniversary of the date of this Agreement.	  	$1,667 per month.
	Payroll Processing: B&N will provide BNED with continued access to and use of the Payroll and HR/Benefits System provided by Peoplesoft’s online self-service system. The services provided include printing payroll
checks, direct deposit advices, and W-2s. Incremental vendor costs, if any, shall be borne by BNED.	  	 December 31, 2016.
  

BNED has the option to extend the end date to December 31, 2017.
	  	$2.50 per BNED employee per month.

  
 A-6 

 Freight Claims 

 

					
	 Description of Service:
	  	 End Date:
	  	 Fee:

	Freight Claims: B&N shall process the freight claims arising out of or relating to the daily operation of BNED Business on behalf of BNED.	  	The first anniversary of the date of this Agreement.	  	Pass-Through Cost.

  
 A-7EX-10.3

 Exhibit 10.3 

EMPLOYEE MATTERS AGREEMENT 
 By
and Between 
 BARNES & NOBLE, INC. 

and 
 BARNES & NOBLE
EDUCATION, INC. 
 Dated as of [•] 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
	ARTICLE I	  
	
	Definitions	  
			
	 SECTION 1.01.
	 	Definitions	  	 	1	  
	 SECTION 1.02.
	 	Glossary of Defined Terms	  	 	4	  
	
	ARTICLE II	  
	
	General Principles	  
			
	 SECTION 2.01.
	 	BNED Employees	  	 	4	  
	 SECTION 2.02.
	 	Transferred to BNED Employees	  	 	5	  
	 SECTION 2.03.
	 	Collectively Bargained Employees	  	 	5	  
	 SECTION 2.04.
	 	Liabilities	  	 	5	  
	 SECTION 2.05.
	 	Benefit Plans	  	 	6	  
	 SECTION 2.06.
	 	Payroll Services	  	 	6	  
	
	ARTICLE III	  
	
	Bonuses	  
			
	 SECTION 3.01.
	 	BNED Employee Annual Bonuses	  	 	6	  
	 SECTION 3.02.
	 	BNED Employee Retention Bonuses	  	 	6	  
	
	ARTICLE IV	  
	
	Service Credit	  
			
	 SECTION 4.01.
	 	B&N Benefit Plans	  	 	6	  
	 SECTION 4.02.
	 	BNED Benefit Plans	  	 	6	  
	
	ARTICLE V	  
	
	Severance	  
			
	 SECTION 5.01.
	 	Post-Distribution Severance	  	 	7	  
	 SECTION 5.02.
	 	Transferred To BNED Employees	  	 	7	  

							
	
	ARTICLE VI	  
	
	Certain Welfare Benefit Plan Matters	  
			
	 SECTION 6.01.
		BNED Welfare Plans		 	7	  
	 SECTION 6.02.
		Allocation of Welfare Benefit Claims		 	8	  
	 SECTION 6.03.
		Workers’ Compensation Claims		 	8	  
	 SECTION 6.04.
		COBRA		 	8	  
	
	ARTICLE VII	  
	
	Defined Benefit Pension Plan	  
			
	 SECTION 7.01.
		B&N Defined Benefit Pension Plan		 	9	  
	
	ARTICLE VIII	  
	
	Defined Contribution Plan	  
			
	 SECTION 8.01.
		BNED 401(k) Plan		 	9	  
	 SECTION 8.02.
		Trust-to-Trust Transfer		 	9	  
	 SECTION 8.03.
		Employer 401(k) Plan Contributions		 	10	  
	 SECTION 8.04.
		Limitation of Liability		 	10	  
	
	ARTICLE IX	  
	
	Nonqualified Deferred Compensation	  
			
	 SECTION 9.01.
		B&N Deferred Compensation Plan		 	10	  
	 SECTION 9.02.
		Section 409A		 	11	  
	
	ARTICLE X	  
	
	Flexible Spending Arrangements; Transportation Reimbursement Arrangements	  
			
	 SECTION 10.01.
		Flexible Spending Arrangements		 	11	  
	 SECTION 10.02.
		Transportation Reimbursement Arrangements		 	11	  
	
	ARTICLE XI	  
	
	Vacation	  
			
	 SECTION 11.01.
		Vacation		 	12	  

  
 ii 

							
	
	ARTICLE XII	  
	
	B&N Equity Compensation Awards	  
			
	 SECTION 12.01.
		Treatment of Outstanding B&N Stock Options		 	13	  
	 SECTION 12.02.
		Treatment of Outstanding B&N Restricted Stock Units		 	13	  
	 SECTION 12.03.
		Treatment of Outstanding B&N Restricted Shares		 	13	  
	
	ARTICLE XIII	  
	
	Benefit Plan Reimbursements	  
			
	 SECTION 13.01.
		Pre-Separation Benefit Plan Matters		 	14	  
	
	ARTICLE XIV	  
	
	Cooperation; Access to Information; Litigation; Confidentiality	  
			
	 SECTION 14.01.
		Cooperation		 	14	  
	 SECTION 14.02.
		Access to Information; Litigation; Confidentiality		 	15	  
	
	ARTICLE XV	  
	
	Reimbursements	  
			
	 SECTION 15.01.
		Reimbursements by the BNED Group		 	15	  
	 SECTION 15.02.
		Invoices		 	15	  
	
	ARTICLE XVI	  
	
	Termination	  
			
	 SECTION 16.01.
		Termination		 	15	  
	 SECTION 16.02.
		Effect of Termination		 	15	  
	
	ARTICLE XVII	  
	
	Indemnification	  
			
	 SECTION 17.01.
		Incorporation of Indemnification Provisions of Separation Agreement		 	15	  

  
 iii 

							
	
	ARTICLE XVIII	  
	
	Further Assurances; Tax Treatment of Certain Amounts Paid Pursuant to this Agreement	  
			
	 SECTION 18.01.
		Further Assurances		 	15	  
	 SECTION 18.02.
		Tax Treatment of Certain Amounts Paid Pursuant to this Agreement		 	16	  
	
	ARTICLE XIX	  
	
	Miscellaneous	  
			
	 SECTION 19.01.
		Administration		 	17	  
	 SECTION 19.02.
		Employment Tax Reporting Responsibility		 	17	  
	 SECTION 19.03.
		Confidentiality		 	17	  
	 SECTION 19.04.
		Additional Provisions		 	18	  

  
 iv 

 EMPLOYEE MATTERS AGREEMENT (this “Agreement”), dated as of [•], by and
between BARNES & NOBLE, INC., a Delaware corporation (“B&N”), and BARNES & NOBLE EDUCATION, INC., a Delaware corporation (“BNED”, and together with B&N, the “Parties”).

 R E C I T A L S 
 WHEREAS
the Parties have entered into the Separation and Distribution Agreement (the “Separation Agreement”) dated as of July [            ], 2015, pursuant to which B&N
intends to effect the Distribution; and 
 WHEREAS the Parties wish to set forth their agreements as to certain matters regarding
employment, compensation and employee benefits as well as arrangements with certain non-employee service providers. 
 NOW, THEREFORE, in
consideration of the mutual agreements, provisions and covenants contained in this Agreement, the Parties, intending to be legally bound, hereby agree as follows: 

ARTICLE I 
 Definitions

 SECTION 1.01. Definitions. For purposes of this Agreement, the following terms shall have the following meanings. All capitalized
terms used but not defined herein shall have the meanings assigned to them in the Separation Agreement unless otherwise indicated. 

“Benefit Plan” shall mean any plan, program, policy, agreement, arrangement or understanding that is an employment,
consulting, deferred compensation, executive compensation, incentive bonus or other bonus, employee pension, profit sharing, savings, retirement, supplemental retirement, stock option, stock purchase, stock appreciation right, restricted stock,
restricted stock unit, deferred stock unit, other equity-based compensation, severance pay, retention, change in control, salary continuation, life, death benefit, health, hospitalization, workers’ compensation, sick leave, vacation pay,
disability or accident insurance or other employee benefit plan, program, agreement or arrangement, including any “employee benefit plan” (as defined in Section 3(3) of ERISA) (whether or not subject to ERISA) sponsored or maintained
by such entity or to which such entity is a party. 
 “BNED Benefit Plan” shall mean any Benefit Plan sponsored or
maintained by any member of the BNED Group or to which any member of the BNED Group is a party. 

 “BNED Employee” shall mean, as of any applicable date, each Employee employed by
a member of the BNED Group, including any individual who is not actively at work due to a leave of absence (including vacation, holiday, illness, injury, short-term disability or long-term disability) from which such employee is permitted to return
to active employment in accordance with the BNED Group’s personnel policies, but excluding any Former BNED Employee. 
 “BNED
Service Provider” shall mean, as of an applicable date, each Service Provider providing services to a member of the BNED Group. 

“B&N Benefit Plan” shall mean any Benefit Plan sponsored or maintained by any member of the B&N Group or to which any
member of the B&N Group is a party. 
 “B&N Benefit Plan Costs Reimbursement Amounts” shall mean, with respect to
any calendar month ending at or after the Distribution, the amount, if any, of the B&N Benefit Plan Costs plus the B&N COBRA Costs incurred by the members of the B&N Group during such calendar month (in each case, as set forth in
Section 13.01), which amount shall be paid pursuant to Section 15.01. 
 “B&N Service Provider”
shall mean, as of an applicable date, each Service Provider providing services to a member of the B&N Group. 
 “B&N Welfare
Plan” shall mean each Welfare Plan sponsored or maintained by a member of the B&N Group. 
 “COBRA” shall mean
the U.S. Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and any applicable similar state or local laws. 

“Code” shall mean the U.S. Internal Revenue Code of 1986, as amended. 

“Employee” shall mean any individual employed by another Person. 

“Employment Taxes” shall mean all fees, Taxes, social insurance payments or similar contributions to a fund of a Governmental
Authority with respect to wages or other compensation of an Employee or Service Provider. 
 “ERISA” shall mean the U.S.
Employee Retirement Income Security Act of 1974, as amended. 
 “Fair Market Value” of a share of B&N Common Stock or
BNED Common Stock shall mean, with respect to any given date, the per share closing price of the shares of B&N Common Stock or BNED Common Stock, respectively, as reported on the New York Stock Exchange on that date (or if there was no reported
closing price on such date, on the last preceding date on which the closing price was reported) or, if such stock is not then listed on the New York Stock Exchange, the per share closing price of such stock as reported on an established securities
market (within the meaning of Treasury Regulations Section 1.897-1(m)) on which the shares of such stock are traded. If the B&N Common Stock or BNED Common Stock on any such date is not listed on an established securities market (within the
meaning of Treasury Regulations Section 1.897-1(m)), the Fair Market Value of a share of such stock shall be determined by the Compensation Committee of B&N or BNED, as applicable, in its sole discretion using appropriate criteria.
Notwithstanding the foregoing, the Fair Market Value of shares of B&N Common Stock or BNED Common Stock shall, in all events, be determined in accordance with Code Section 409A. 

  
 2 

 “Former BNED Employee” shall mean, as of any applicable date, each individual
who (a) as of immediately prior to such individual’s termination of employment with a member of the B&N Group or the BNED Group was an Employee of the BNED Group and (b) as of such applicable date, is not an Employee of any member
of the B&N Group or the BNED Group. 
 “Former BNED Service Provider” shall mean each individual that is a former
Service Provider of a member of the BNED Group. 
 “Regular Trading Hours” shall mean the period beginning at 9:30 A.M. New
York City time and ending at 4:00 P.M. New York City time. 
 “Service Provider” shall mean any individual providing
services for another Person, whether as an independent contractor or other similar role (other than as an Employee). 

“Subsidiary” of any Person shall mean any corporation or other organization whether incorporated or unincorporated of which
at least a majority of the securities or interests having by the terms thereof ordinary voting power to elect at least a majority of the board of directors or others performing similar functions with respect to such corporation or other organization
is directly or indirectly owned or controlled by such Person or by any one or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries; provided, however, that, solely for purposes of this Agreement, BNED and its
Subsidiaries shall not be considered Subsidiaries of B&N (or members of the Barnes & Noble Group) prior to, on or following the Distribution. 

“Taxing Authority” shall have the meaning set forth in the TMA. 

“Tax Return” shall have the meaning set forth in the TMA. 

“Trading Day” shall mean the period of time during any given calendar day, commencing with the determination of the opening
price on the New York Stock Exchange and ending with the determination of the closing price on the New York Stock Exchange. 

“Welfare Plan” shall mean each Benefit Plan that provides life insurance, health care, dental care, accidental death and
dismemberment insurance, disability, severance, vacation or other group welfare or fringe benefits. 
 “Workers’ Compensation
Event” shall mean the event, injury, illness or condition giving rise to a workers compensation claim with respect to a BNED Employee. 

  
 3 

 “Workers’ Compensation Reimbursement Amounts” shall mean the amount, if
any, by which (i) the amount actually payable by the members of the B&N Group in respect of the participation of BNED Employees and Former BNED Employees in the B&N Workers Compensation Plan for any period prior to the Distribution
exceeds (ii) the amount that the B&N Group charged the members of the BNED Group in respect of such period of participation. 

SECTION 1.02. Glossary of Defined Terms. The following terms shall have the meanings set forth in the Sections set forth below: 

 

			
	Definition	  	Section
	Agreement	  	Preamble
	BNED	  	Preamble
	BNED 401(k) Plan	  	8.01
	BNED Cafeteria Plan	  	10.01(a)
	BNED Restricted Share	  	12.03
	BNED Transportation Plan	  	10.02(a)
	BNED Welfare Plans	  	6.01
	BNED Workers’ Compensation Plan	  	6.03
	B&N	  	Preamble
	B&N 401(k) Plan	  	8.01
	B&N Benefit Plan Costs	  	13.01
	B&N Cafeteria Plan	  	10.01(a)
	B&N COBRA Costs	  	13.01
	B&N Deferred Compensation Plan	  	9.01
	B&N Option	  	12.01
	B&N Pension Plan	  	7.01
	B&N Restricted Share	  	12.03
	B&N RSU	  	12.02
	B&N Transportation Plan	  	10.02(a)
	B&N Workers’ Compensation Plan	  	6.03
	Claiming Party	  	18.02(f)
	Converted BNED RSUs	  	12.02
	Other Party	  	18.02(g)
	Parties	  	Preamble
	Separation Agreement	  	Recitals
	Specified Welfare Plan Date	  	6.01
	Transferred to BNED Employee	  	2.02

 ARTICLE II 

General Principles 

SECTION 2.01. BNED Employees. All BNED Employees as of immediately prior to the Distribution shall continue to be employees of the BNED
Group immediately following the Distribution. 

  
 4 

 SECTION 2.02. Transferred to BNED Employees. Prior to the Distribution, B&N shall, or
shall cause its Subsidiaries to, transfer or cause to be transferred to a member of the BNED Group the employment of each Employee set forth on Schedule 2.02, effective as of the Distribution, such that these individuals are not Employees of the
B&N Group at the time of the Distribution. Schedule 2.02 may be updated by mutual agreement of B&N and BNED from time to time prior to the Distribution. Each Employee who is transferred to the BNED Group pursuant to this
Section 2.02 is referred to herein as a “Transferred to BNED Employee”. Following the transfer of a Transferred to BNED Employee to a member of the BNED Group, such Transferred to BNED Employee shall be deemed a BNED
Employee for purposes of this Agreement. 
 SECTION 2.03. Collectively Bargained Employees. All provisions contained in this
Agreement shall apply equally to any Employee who is covered by a collective bargaining or other labor union agreement, except to the extent that any such agreement specifically provides for the benefit contemplated by such provision and, in each
such case, the agreement shall apply rather than the terms of this Agreement. 
 SECTION 2.04. Liabilities. Except as otherwise
provided in this Agreement, the members of the BNED Group shall be responsible for all actual or potential employment Liabilities with respect to BNED Employees and Former BNED Employees arising prior to, on or following the Distribution relating to
periods during which such BNED Employees and Former BNED Employees were employed by the BNED Group. Notwithstanding the immediately preceding sentence, except as otherwise specifically provided in this Agreement, effective as of the Distribution,
(a) the members of the B&N Group shall be responsible for such Liabilities with respect to Transferred to BNED Employees arising prior to the Distribution during which such Transferred to BNED Employees were employed by the B&N Group
and (b) the members of the BNED Group shall be responsible for all such Liabilities arising at or after the Distribution during which such Transferred to BNED Employees were employed by the BNED Group. Except as otherwise specifically provided
in this Agreement, the provisions of this Agreement do not apply to BNED Service Providers and Former BNED Service Providers and the members of the BNED Group shall be responsible for all actual or potential Liabilities relating to services provided
by BNED Service Providers and Former BNED Service Providers to members of the BNED Group during any period, including (i) Liabilities relating to the misclassification of any Person as a Service Provider and not as an Employee of a member of
the BNED Group, (ii) Liabilities for Taxes (including any Employment Taxes) with respect to services provided by such BNED Service Provider or Former BNED Service Provider to any member of the BNED Group, (iii) accounts payable owed to any
BNED Service Provider or Former BNED Service Provider by any member of the BNED Group and (iv) any claims made by any BNED Service Provider or Former BNED Service Provider with respect to benefits under any Benefit Plan accrued with respect to
services provided to any member of the BNED Group. 

  
 5 

 SECTION 2.05. Benefit Plans. Except as otherwise specifically provided in this Agreement,
as of the Distribution, each BNED Employee (and each of their respective dependents and beneficiaries) shall cease active participation in, and each member of the BNED Group shall cease to be a participating employer in, all B&N Benefit Plans,
including the B&N Benefit Plans listed on Schedule 2.05, and, as of such time, BNED shall, or shall cause its Subsidiaries to, have in effect such corresponding BNED Benefit Plans as are necessary to comply with its obligations pursuant to this
Agreement. As of immediately following the Distribution, except as otherwise specifically provided in this Agreement, (a) B&N shall, or shall cause one or more members of the B&N Group to, retain, pay, perform, fulfill and discharge all
Liabilities arising out of or relating to all B&N Benefit Plans, and (b) BNED shall, or shall cause one of the members of the BNED Group to, retain, pay, perform, fulfill and discharge all Liabilities arising out of or relating to all BNED
Benefit Plans. 
 SECTION 2.06. Payroll Services. Subject to the Transition Services Agreement, prior to, upon and after the
Distribution, the BNED Group shall be solely responsible for providing payroll services to the BNED Employees and Former BNED Employees, and BNED shall be solely responsible for any Liabilities with respect to garnishments of the salary and wages of
the BNED Employees. 
 ARTICLE III 

Bonuses 
 SECTION 3.01.
BNED Employee Annual Bonuses. On or following the Distribution, BNED shall retain all Liabilities with respect to the payment of any annual bonus awards to each eligible BNED Employee, including, for the avoidance of doubt, with respect to
the year in which the Distribution occurs. 
 SECTION 3.02. BNED Employee Retention Bonuses. On or following the Distribution, BNED
shall assume or retain all Liabilities with respect to the payment of any retention bonus awards to each eligible BNED Employee as set forth on Schedule 3.02, including, for the avoidance of doubt, with respect to any retention bonuses pursuant to
plans, agreements or arrangements sponsored by any member of the B&N Group or to which any member of the B&N Group is a party. 

ARTICLE IV 
 Service Credit

 SECTION 4.01. B&N Benefit Plans. From and after the Distribution, service of BNED Employees with any member of the BNED
Group or any other employer, as applicable, other than any member of the B&N Group shall not be taken into account for any purpose under the corresponding B&N Benefit Plan. 

SECTION 4.02. BNED Benefit Plans. Unless prohibited by applicable law, BNED shall, and shall cause its Subsidiaries to, credit service
accrued by each BNED Employee with, or otherwise recognized for benefit plan purposes by, any member of the B&N Group or the BNED Group at the time of or prior to the Distribution 

  
 6 

 
for all purposes, including for purposes of (a) eligibility and vesting under each BNED Benefit Plan under which service is relevant in determining eligibility or vesting,
(b) determining the amount of severance payments and benefits (if any) payable under each BNED Benefit Plan that provides severance payments or benefits and (c) determining the number of vacation days to which each such Employee will be
entitled following the Distribution, in the case of clauses (a), (b) and (c), (i) to the same extent recognized by the relevant members of the B&N Group or BNED Group or the corresponding B&N Benefit Plan or BNED Benefit Plan
immediately prior to the Distribution Date and (ii) except to the extent such credit would result in a duplication of benefits for the same period of service. 

ARTICLE V 
 Severance 

SECTION 5.01. Post-Distribution Severance. The BNED Group shall be solely responsible for all severance or other separation payments
and benefits relating to the termination or alleged termination of any BNED Employee’s employment that occurs at the time of or following the Distribution. 

SECTION 5.02. Transferred To BNED Employees. Unless required by applicable law or by the terms of any individual agreement, none of the
Transferred To BNED Employees shall be deemed to have terminated employment for purposes of determining eligibility for severance or other separation payments and benefits as a result of the transfers contemplated by Section 2.02 of this
Agreement; provided, however, that in the event such transfers result in severance or other separation payments or benefits to any Transferred To BNED Employee, the B&N Group shall be solely responsible for all such Liabilities.

 ARTICLE VI 
 Certain
Welfare Benefit Plan Matters 
 SECTION 6.01. BNED Welfare Plans. Notwithstanding Section 2.05, effective as of the
end of the calendar month in which the Distribution occurs (such date, the “Specified Welfare Plan Date”), BNED will establish the Welfare Plans listed on Schedule 6.01 (collectively, the “BNED Welfare Plans”) to
provide welfare benefits to the BNED Employees (and their dependents and beneficiaries) and as of the Specified Welfare Plan Date, each BNED Employee (and his or her dependants and beneficiaries) will cease active participation in the corresponding
B&N Welfare Plan. For the avoidance of doubt, for purposes of this Article VI, BNED Employees shall include any Former BNED Employee who was receiving severance payments from a member of the B&N Group or the BNED Group as of the
Distribution. 

  
 7 

 SECTION 6.02. Allocation of Welfare Benefit Claims. Notwithstanding
Section 2.05, (a) the members of the B&N Group shall retain Liability and responsibility in accordance with the applicable B&N Welfare Plan for all reimbursement claims (such as medical and dental claims) for expenses
incurred and for all non-reimbursement claims (such as life insurance claims) incurred by BNED Employees and Former BNED Employees (and their dependents and beneficiaries) under such plans on or prior to the Specified Welfare Plan Date and
(b) the members of the BNED Group shall retain Liability and responsibility in accordance with the BNED Welfare Plans for all reimbursement claims (such as medical and dental claims) for expenses incurred and for all non-reimbursement claims
(such as life insurance claims) incurred by BNED Employees (and their dependents and beneficiaries) following the Specified Welfare Plan Date. Notwithstanding the foregoing, BNED shall be obligated to reimburse B&N for the B&N Benefit Plan
Costs as provided in Section 13.01. For purposes of this Section 6.02, a benefit claim shall be deemed to be incurred as follows: (i) health, dental, vision, employee assistance program and prescription drug benefits
(including in respect of any hospital confinement), upon provision of such services, materials or supplies; and (ii) life, accidental death and dismemberment and business travel accident insurance benefits, upon the death, cessation of
employment or other event giving rise to such benefits. 
 SECTION 6.03. Workers’ Compensation Claims. Notwithstanding
Section 2.05, in the case of any workers’ compensation claim of any BNED Employee or Former BNED Employee who participates in a workers’ compensation plan of a member of the B&N Group (a “B&N Workers’
Compensation Plan”), such claim shall be covered (a) under such B&N Workers’ Compensation Plan if the Workers’ Compensation Event occurred prior to the Distribution, and (b) under a workers’ compensation plan of
the BNED Group (each, a “BNED Workers’ Compensation Plan”) if the Workers’ Compensation Event occurs on or after the Distribution. If the Workers’ Compensation Event occurs over a period both preceding and following
the Distribution, the claim shall be covered jointly under the B&N Workers’ Compensation Plan and the BNED Workers’ Compensation Plan and shall be equitably apportioned between them based upon the relative periods of time that the
Workers’ Compensation Event transpired preceding and following the Distribution. Notwithstanding the foregoing, BNED shall be obligated to reimburse B&N for the Workers’ Compensation Reimbursement Amounts in accordance with
Section 15.01. 
 SECTION 6.04. COBRA. Notwithstanding Section 2.05, in the event that a BNED Employee or
Former BNED Employee (a) was receiving, or was eligible to receive, continuation health coverage pursuant to COBRA on or prior to the Specified Welfare Plan Date, B&N and the B&N Welfare Plans shall be responsible for all Liabilities to
such Employee (or his or her eligible dependents) in respect of COBRA; and (b) becomes eligible to receive continuation health coverage pursuant to COBRA following the Specified Welfare Plan Date, BNED and the BNED Welfare Plans shall be
responsible for all Liabilities to such Employee (or his or her eligible dependents) in respect of COBRA. Notwithstanding the foregoing, BNED shall be obligated to reimburse B&N for the B&N COBRA Costs as provided in
Section 13.01. BNED shall indemnify, defend and hold harmless the members of the B&N Group from and against any and all Liabilities relating to, arising out of or resulting from COBRA provided by BNED, or the failure of BNED to meet
its COBRA obligations, to BNED Employees, Former BNED Employees and their respective eligible dependents. 

  
 8 

 ARTICLE VII 

Defined Benefit Pension Plan 

SECTION 7.01. B&N Defined Benefit Pension Plan. Notwithstanding Section 2.05 or any other provision of this Agreement
to the contrary, following the Distribution, the B&N Group shall retain sponsorship of the B&N, Inc. Employees’ Retirement Plan (the “B&N Pension Plan”) and all assets and Liabilities arising out of or relating to
the B&N Pension Plan. The obligations of the members of the BNED Group to provide information to the members of the B&N Group in connection with the payment of benefits to the BNED Employees and Former BNED Employees pursuant to the B&N
Pension Plan are set forth in Section 14.01. 
 ARTICLE VIII 

Defined Contribution Plan 

SECTION 8.01. BNED 401(k) Plan. Effective as of the Distribution, BNED will establish a defined contribution plan that includes a
qualified cash or deferred arrangement within the meaning of Section 401(k) of the Code (the “BNED 401(k) Plan”) providing benefits to the BNED Employees participating in any tax-qualified defined contribution plan sponsored by
any member of the B&N Group (the “B&N 401(k) Plan”) as of the Distribution. 
 SECTION 8.02. Trust-to-Trust
Transfer. As of the Distribution, a member of the B&N Group shall cause to be transferred from the B&N 401(k) Plan to the BNED 401(k) Plan the assets and liabilities relating to the account balances of the BNED Employees (whether vested
or unvested) in accordance with the applicable requirements of all applicable laws, including the Code. From and after the time that the transfer is complete, as described in the immediately preceding sentence, a member of the BNED Group shall
administer the accounts of BNED Employees in the BNED 401(k) Plan in accordance with all applicable laws, including the Code. Except as otherwise provided for in this Section 8.02, such transfer of assets shall consist of cash, cash
equivalents or participant loan receivables equal to all the accrued benefit Liabilities relating to all account balances referred to in the first sentence of this Section 8.02, including such Liabilities for the beneficiaries of the
BNED Employees and including such accrued benefit Liabilities arising under any applicable qualified domestic relations order. As of the Distribution, a member of the BNED Group shall direct the trustee of the BNED 401(k) Plan to accept such
transfers of assets and Liabilities from the B&N 401(k) Plan. No later than 30 days prior to the date of the transfer of assets and Liabilities pursuant to this Section 8.02, B&N shall, to the extent necessary and with the
cooperation of BNED as necessary, file Internal Revenue Service Form 5310-A regarding such transfer of assets and Liabilities from the B&N 401(k) Plan to the BNED 401(k) Plan, as described in this Section 8.02. Following the
foregoing transfer, the BNED Group and/or the BNED 401(k) Plan shall assume all Liabilities of the B&N Group under the B&N 401(k) Plan with respect to all participants in the B&N 401(k) Plan whose balances were transferred to the BNED
401(k) Plan and their beneficiaries pursuant to such transfer, and 

  
 9 

 
the B&N Group and the B&N 401(k) Plan shall have no Liabilities to provide such participants with benefits under the B&N 401(k) Plan following such transfer. B&N and BNED shall
use reasonable efforts to minimize the duration of any “blackout period” imposed in connection with each transfer of account balances from the B&N 401(k) Plan to the BNED 401(k) Plan. BNED will cooperate with B&N in effecting a
transition of all outstanding 401(k) loans of BNED Employees in a manner designed to prevent a deemed distribution. BNED shall indemnify, defend and hold harmless the members of the B&N Group from and against any and all Liabilities relating to,
arising out of or resulting from the transfers described in this Section 8.02. For the avoidance of doubt, this Section 8.02 does not apply to the account balance of any Former BNED Employee in the B&N 401(k) Plan, and
prior to, on and following the Distribution the B&N 401(k) Plan shall retain all assets and Liabilities with respect to the account balance of any Former BNED Employee, and the B&N Group and the B&N 401(k) Plan shall retain
responsibility to provide any such Former BNED Employee with benefits under the B&N 401(k) Plan. 
 SECTION 8.03. Employer 401(k)
Plan Contributions. The B&N Group shall remain responsible for employer contributions under the B&N 401(k) Plan with respect to any BNED Employees relating to periods prior to the Distribution. On and following the Distribution, the BNED
Group will be responsible for all employer contributions under the BNED 401(k) Plan with respect to any BNED Employees. 
 SECTION 8.04.
Limitation of Liability. For the avoidance of doubt, (a) B&N shall have no responsibility for any failure of BNED to properly administer the BNED 401(k) Plan in accordance with its terms and applicable law, including any failure to
properly administer the accounts of BNED Employees and their beneficiaries in such BNED 401(k) Plan and (b) B&N shall have no responsibility for any failure of B&N to properly administer the accounts of BNED Employees and their
beneficiaries in the B&N 401(k) Plan prior to the Distribution. 
 ARTICLE IX 

Nonqualified Deferred Compensation 

SECTION 9.01. B&N Deferred Compensation Plan. Effective as of the Distribution, the participation of any BNED Employee or Former
BNED Employee in the B&N, Inc. Deferred Compensation Plan (the “B&N Deferred Compensation Plan”) will terminate, and B&N will accelerate in accordance with Treasury Regulation Section 1.409A-3(j)(4)(v) all payments
and benefits owed to the BNED Employees and Former BNED Employees pursuant to the B&N Deferred Compensation Plan. Following the payment or distribution of such amounts to the BNED Employees, the members of the B&N Group shall have no actual
or potential Liabilities relating to, arising out of or resulting from the participation of the BNED Employees and Former BNED Employees in the B&N Deferred Compensation Plan. 

  
 10 

 SECTION 9.02. Section 409A. B&N and BNED shall cooperate in good faith and use
reasonable best efforts to ensure that that the transactions contemplated by this Agreement and the Separation Agreement will not result in adverse tax consequences under Section 409A of the Code to any BNED Employee or Former BNED Employee (or
any of their respective beneficiaries), in respect of their respective benefits under any Benefit Plan. 
 ARTICLE X 

Flexible Spending Arrangements; Transportation Reimbursement Arrangements 

SECTION 10.01. Flexible Spending Arrangements. (a) Effective as of the Distribution, BNED Employees will cease participation in
the flexible spending arrangements under each cafeteria plan qualifying under Section 125 of the Code sponsored by any member of the B&N Group (the “B&N Cafeteria Plan”). Effective as of the Distribution, BNED or its
Subsidiaries will establish flexible spending arrangements under a cafeteria plan qualifying under Section 125 of the Code (the “BNED Cafeteria Plan”). 

(b) Promptly following the Distribution, with respect to each BNED Employee who has a flexible spending arrangement under the B&N Cafeteria
Plan, B&N shall, or shall cause its Subsidiaries to, transfer to BNED or its Subsidiaries all relevant records relating to the flexible spending arrangements of such BNED Employee under the B&N Cafeteria Plan and any other information
necessary for the administration of the BNED Cafeteria Plan with respect to such flexible spending arrangements. Promptly following the Distribution, BNED shall, or shall cause its Subsidiaries to, cause the BNED Cafeteria Plan to accept a spin-off
with respect to the flexible spending arrangement of each individual who is a BNED Employee and who has a flexible spending arrangement under the B&N Cafeteria Plan from the account for the BNED Group in the B&N Cafeteria Plan and to honor
and continue, through the end of the plan year in which the Distribution occurs, the elections made by such employee with respect to a flexible spending arrangement under the B&N Cafeteria Plan for such plan year. For the avoidance of doubt,
neither Party shall be obligated to make any additional payment to the other Party with respect to any overfunding or underfunding of the account for the BNED Group in the B&N Cafeteria Plan at the time of the spin-off described in the
immediately preceding sentence because such account is held separate from the accounts relating to other members of the B&N Group in the B&N Cafeteria Plan. On and after the Distribution, the BNED Group shall assume and be solely responsible
for all claims by BNED Employees under the B&N Cafeteria Plan, whether incurred prior to, on or after the Distribution, that have not been paid in full as of the Distribution, and following the Distribution BNED shall indemnify, defend and hold
harmless the members of the B&N Group from and against any and all Liabilities relating to, arising out of or resulting from claims for reimbursement under the B&N Cafeteria Plan with respect to BNED Employees that are not paid in full as of
the Distribution. 
 SECTION 10.02. Transportation Reimbursement Arrangements. (a) Effective as of the Distribution, BNED
Employees will cease participation in the transportation reimbursement account plan sponsored by any member of the B&N Group (the “B&N Transportation Plan”). Effective as of the Distribution, BNED or its Subsidiaries will
establish a transportation reimbursement account plan (the “BNED Transportation Plan”). 

  
 11 

 (b) Promptly following the Distribution, with respect to each BNED Employee who has a
transportation reimbursement account under the B&N Transportation Plan, B&N shall, or shall cause its Subsidiaries to, transfer to BNED or its Subsidiaries all relevant records relating to the transportation reimbursement account of such
BNED Employee under the B&N Transportation Plan and any other information necessary for the administration of the BNED Transportation Plan with respect to such transportation reimbursement account. Promptly following the Distribution, BNED
shall, or shall cause its Subsidiaries to, cause the BNED Transportation Plan to accept a spin-off with respect to the transportation reimbursement account of each individual who is a BNED Employee and who has a transportation reimbursement account
under the B&N Transportation Plan from the account for the BNED Group in the B&N Transportation Plan and to honor and continue, through the end of the plan year in which the Distribution occurs, the elections made by such employee with
respect to a transportation reimbursement account under the B&N Transportation Plan for such plan year. For the avoidance of doubt, neither Party shall be obligated to make any additional payment to the other Party with respect to any
overfunding or underfunding of the account for the BNED Group in the B&N Transportation Plan at the time of the spin-off described in the immediately preceding sentence because such account is held separate from the accounts relating to other
members of the B&N Group in the B&N Transportation Plan. On and after the Distribution, the BNED Group shall assume and be solely responsible for all claims by BNED Employees under the B&N Transportation Plan, whether incurred prior to,
on or after the Distribution, that have not been paid in full as of the Distribution, and following the Distribution BNED shall indemnify, defend and hold harmless the members of the B&N Group from and against any and all Liabilities relating
to, arising out of or resulting from claims for reimbursement under the B&N Transportation Plan with respect to BNED Employees that are not paid in full as of the Distribution. 

ARTICLE XI 
 Vacation 

SECTION 11.01. Vacation. The BNED Group shall retain all Liability for vacation accruals and benefits with respect to each BNED
Employee and Former BNED Employee; provided, however, that with respect to each Transferred To BNED Employee, (a) for purposes of determining the number of vacation days to which such Employee shall be entitled following the
Distribution, BNED and its Subsidiaries shall assume and honor all vacation days accrued or earned but not yet taken by such Employee, if any, as of the Distribution, and (b) to the extent such Employee is entitled under any applicable law or
any policy of his or her respective employer that is a member of the B&N Group, as the case may be, to be paid for any vacation days accrued or earned but not yet taken by such Employee as of the Distribution, BNED shall discharge the Liability
for such vacation days. 

  
 12 

 ARTICLE XII 

B&N Equity Compensation Awards 

SECTION 12.01. Treatment of Outstanding B&N Stock Options. Notwithstanding any provision of this Agreement or the Separation
Agreement to the contrary, at the time of the Distribution, each outstanding option to purchase B&N Common Stock (each, a “B&N Option”) that was granted under or pursuant to any equity compensation plan of B&N, and that,
at the time of the Distribution, is held by any BNED Employee, will vest as of the Distribution, and the employment with B&N of any BNED Employee who holds any such B&N Option will be treated as terminated for purposes of exercising such
B&N Option. Each such Employee may exercise any B&N Option during the 180-day period following the Distribution (or, if earlier, until the expiration of such B&N Option), and will receive the number of shares of B&N common stock
underlying the exercised portion of such B&N Option less the number of shares having a Fair Market Value equal to the (a) applicable exercise price of such B&N Option and (b) the employee-paid portion of any Taxes (including
Employment Taxes) required to be withheld, if any, upon exercise or settlement of such B&N Option. 
 SECTION 12.02. Treatment of
Outstanding B&N Restricted Stock Units. In connection with the Distribution, all outstanding restricted stock units payable in shares of B&N Common Stock or the value of which is determined by reference to the value of shares of B&N
Common Stock that were granted under or pursuant to any equity compensation plan of B&N (each, a “B&N RSU”) held by any BNED Employee shall be adjusted as necessary to provide that, as of the Distribution, each B&N RSU
held by a BNED Employee will be converted into a restricted stock unit award on the same terms and conditions as were applicable under such B&N RSU immediately prior to the Distribution, with respect to a number of shares of BNED Common Stock
with a Fair Market Value equal to the aggregate value of such B&N RSUs as of immediately prior to the Distribution (determined based on the Fair Market Value of a share of B&N Common Stock as of the Distribution Date) (the “Converted
BNED RSUs”). As of the Distribution, the BNED Group shall assume all the obligations of B&N with respect to the Converted BNED RSUs and the agreements evidencing the grants thereof, and shall take all corporate action necessary to
reserve for issuance a sufficient number of shares of BNED Common Stock for delivery upon settlement of the Converted BNED RSUs. 
 SECTION
12.03. Treatment of Outstanding B&N Restricted Shares. In connection with the Distribution, each B&N Service Provider who holds restricted shares of B&N Common Stock (each, a “B&N Restricted Share”) will
receive, as of the time of the Distribution, restricted shares of BNED Common Stock (each, a “BNED Restricted Share”) in accordance with the terms and conditions of the award agreements for such B&N Restricted Shares, in an
amount determined in the same manner as for other shareholders of B&N Common Stock based on a distribution ratio to be determined by B&N in its sole discretion, rounded down to the nearest whole number of shares. The treatment of any
fractional shares in respect of such BNED Restricted Shares will be treated in accordance with Section 5.02 of the Separation Agreement. Such BNED Restricted Shares shall be subject to the same vesting requirements and dates and other terms and
conditions as the B&N Restricted Shares to which they relate (including the right to receive dividends or other distributions paid on B&N Common Stock). 

  
 13 

 ARTICLE XIII 

Benefit Plan Reimbursements 

SECTION 13.01. Pre-Separation Benefit Plan Matters. Following the Distribution, the members of the BNED Group shall remain responsible
for reimbursing the members of the B&N Group for costs (a) relating to compensation and benefits provided to the BNED Employees and Former BNED Employees as a result of participation in the B&N Benefit Plans set forth on Schedule 13.01
prior to the Distribution, or with respect to any B&N Welfare Plan, on or prior to the Specified Welfare Plan Date (such costs, the “B&N Benefit Plan Costs”); and (b) relating to compensation and benefits provided to
BNED Employees or Former BNED Employees pursuant to the B&N Welfare Plans in respect of COBRA (such costs, the “B&N COBRA Costs”), in each case, that are not charged directly to the members of the BNED Group in the ordinary
course of business consistent with past practice; provided, however, that, except as otherwise specifically provided in this Agreement, in no event shall any member of the BNED Group be required to reimburse any member of the B&N
Group for the cost of any Benefit Plan related Liabilities for which the B&N Group remains ultimately responsible pursuant to this Agreement. 

ARTICLE XIV 
 Cooperation;
Access to Information; Litigation; Confidentiality 
 SECTION 14.01. Cooperation. Following the date of this Agreement, the
Parties shall, and shall cause their respective Subsidiaries to, use commercially reasonable efforts to cooperate with respect to any Employee compensation or benefits matters that either Party reasonably determines require the cooperation of the
other Party in order to accomplish the objectives of this Agreement. Without limiting the generality of the preceding sentence, (a) B&N and BNED shall cooperate in connection with any audits of any Benefit Plan with respect to which such
Party may have Information, (b) B&N and BNED shall cooperate in connection with any audits of their respective payroll services (whether by a Governmental Authority in the U.S. or otherwise) in connection with the services provided by one
Party to the other Party, (c) B&N and BNED shall cooperate in administering the B&N Pension Plan and (d) B&N and BNED shall cooperate in good faith in connection with the notification and consultation with labor unions and
other employee representatives of Employees of the B&N Group and the BNED Group. The obligations of the B&N Group and the BNED Group to cooperate pursuant to this Section 14.01 shall remain in effect until the later of
(i) the date all audits of all Benefit Plans with respect to which a Party may have Information have been completed or (ii) the date the applicable statute of limitations with respect to such audits has expired. 

  
 14 

 SECTION 14.02. Access to Information; Litigation; Confidentiality. Article VII of the
Separation Agreement is hereby incorporated into this Agreement mutatis mutandi. 
 ARTICLE XV 

Reimbursements 
 SECTION
15.01. Reimbursements by the BNED Group. Promptly following the last business day of each calendar month following the Distribution, B&N shall provide BNED with one or more invoices that set forth the aggregate (a) Workers’
Compensation Reimbursement Amounts and (b) B&N Benefit Plan Costs Reimbursement Amounts incurred by a member of the B&N Group during such calendar quarter. Within 30 days following BNED’s receipt of each such invoice, BNED shall
pay B&N an amount in cash equal to the aggregate amounts set forth on such invoice. 
 SECTION 15.02. Invoices. All invoices
provided pursuant to this Article XIV shall be denominated in U.S. dollars. 
 ARTICLE XVI 

Termination 
 SECTION
16.01. Termination. This Agreement may be terminated by B&N at any time, in its sole discretion, prior to the Distribution; provided, however, that this Agreement shall automatically terminate upon the termination of the
Separation Agreement in accordance with its terms. 
 SECTION 16.02. Effect of Termination. In the event of any termination of this
Agreement prior to the Distribution, none of the Parties (or any of its directors or officers) shall have any Liability or further obligation to any other Party under this Agreement. 

ARTICLE XVII 
 Indemnification

 SECTION 17.01. Incorporation of Indemnification Provisions of Separation Agreement. In addition to the specific
indemnification provisions in this Agreement, Article VI of the Separation Agreement is hereby incorporated into this Agreement mutatis mutandi. 

ARTICLE XVIII 
 Further
Assurances; Tax Treatment of Certain Amounts Paid Pursuant to this Agreement 
 SECTION 18.01. Further Assurances. Article X of
the Separation Agreement is hereby incorporated into this Agreement mutatis mutandi. 

  
 15 

 SECTION 18.02. Tax Treatment of Certain Amounts Paid Pursuant to this Agreement.
(a) With respect to any B&N Option held by BNED Employees and Former BNED Employees that is exercised or canceled after the date of the Distribution: 

(i) BNED or one of its Subsidiaries, as applicable, shall claim any U.S. Federal, state and local income Tax deduction arising
as a result of such exercise or cancellation and B&N and its Subsidiaries shall not claim such deduction; 
 (ii) Without
limiting the generality of Section 2.06, BNED or one of its Subsidiaries (as applicable) shall be responsible for remitting all Taxes required to be withheld upon such exercise, including all payroll or employment Taxes, to the appropriate
Taxing Authority and shall be responsible for all obligations relating to the reporting of income producing such Taxes to the Taxing Authority, and B&N and its Subsidiaries shall not be responsible for such withholding and reporting; 

(iii) The Parties shall cooperate to cause the proceeds of the sale of any shares of B&N Common Stock withheld pursuant to
Section 12.01 in respect of Taxes described in Section 18.02(a)(ii) above to be deposited in a bank account of BNED; and 

(iv) The intent of the Parties is for BNED and its Subsidiaries to receive the benefit of any deduction and to bear the
responsibility for all Tax withholding and reporting with respect to such B&N Options, and this Agreement shall be construed (and the Parties shall cooperate) to effect such intent. 

(b) Any U.S. Federal, state and local income Tax deduction arising as a result of the vesting and settlement of any Converted BNED RSU held by
BNED Employees and Former BNED Employees shall, in each case, be claimed (if and when permitted by applicable Law) by BNED or one of its Subsidiaries, as applicable. 

(c) Any U.S. Federal, state and local income Tax deduction arising as a result of the payment of any annual bonus award or retention bonus
award to BNED Employees and Former BNED Employees pursuant to Section 3.01 or Section 3.02, respectively, shall, in each case, be claimed (if and when permitted by applicable Law) by BNED or one of its Subsidiaries, as applicable and,
subject to Section 18.02(g), B&N shall not so claim. 
 (d) Any U.S. Federal, state and local income Tax deduction arising as a
result of the vesting of any B&N Restricted Shares or BNED Restricted Shares held by an individual who is a B&N Service Provider following the Distribution shall, in each case, be claimed (if and when permitted by applicable Law) by B&N
or one of its Subsidiaries, as applicable and, subject to Section 18.02(g), BNED shall not so claim. 
 (e) Any U.S. Federal, state and
local income Tax deduction arising as a result of the vesting of any B&N Restricted Shares or BNED Restricted Shares held by an individual who is a BNED Service Provider following the Distribution shall, in each case, be claimed (if and when
permitted by applicable Law) by BNED or one of its Subsidiaries, as applicable. 

  
 16 

 (f) B&N, if respect to an individual that is a B&N Service Provider following the
Distribution, or one of its Subsidiaries, or BNED, if respect to an individual that is a BNED Service Provider following the Distribution, or one of its Subsidiaries shall be responsible for all obligations relating to the reporting of income
resulting from the vesting of any B&N Restricted Shares or BNED Restricted Shares. 
 (g) Notwithstanding Sections 18.02(a)(i), (b), (c),
(d) and (e), if a deduction claimed by the party with the right to claim the deduction pursuant to such Section (the “Claiming Party”) or one of its Subsidiaries is disallowed by a Taxing Authority for any reason, the party
other than the Claiming Party (the “Other Party”) or one of its Subsidiaries, as applicable, shall amend its applicable Tax Return to claim such deduction and pay to the Claiming Party an amount equal to the Tax benefit actually
realized by the Other Party or any of its Subsidiaries resulting from such deduction; provided, however, that the Claiming Party, upon the request of the Other Party, shall repay any amount paid to the Claiming Party under this
Section 18.02(g) (plus any penalties, interest or other charges imposed by the relevant Taxing Authority) in the event the Other Party or its Subsidiary, as applicable, is required to surrender such Tax benefit. 

ARTICLE XIX 
 Miscellaneous

 SECTION 19.01. Administration. BNED hereby acknowledges that B&N has provided administration services for certain BNED
Benefit Plans and BNED agrees to assume responsibility for the administration and administration costs of such plans and each other BNED Benefit Plan. The Parties shall cooperate in good faith to complete such transfer of responsibility on
commercially reasonable terms and conditions effective no later than the Distribution. 
 SECTION 19.02. Employment Tax Reporting
Responsibility. To the extent applicable, the Parties hereby agree to follow the alternate procedure for U.S. employment tax withholding as provided in Section 5 of Rev. Proc. 2004-53, I.R.B. 2004-35. Accordingly, the members of the B&N
Group shall not have any employment tax reporting responsibilities, and the members of the BNED Group shall have full employment tax reporting responsibilities, for BNED Employees from and after the Distribution. 

SECTION 19.03. Confidentiality. (a) Each of B&N and BNED, on behalf of itself and each Person in its respective Group, shall,
and shall cause its respective directors, officers, Employees, agents, accountants, counsel and other advisors and representatives to, hold, in strict confidence and not release or disclose, with at least the same degree of care, but no less than a
reasonable degree of care, that it applies to its own confidential and proprietary Information pursuant to policies in effect as of the Distribution, all Information concerning the other Group or its business that is either in its

  
 17 

 
possession (including Information in its possession prior to the Distribution) or furnished by the other Group or its respective directors, officers, Employees, agents, accountants, counsel and
other advisors and representatives at any time pursuant to this Agreement and shall not use any such Information other than for such purposes as shall be expressly permitted hereunder, except, in each case, to the extent that such Information is
(i) in the public domain through no fault of any member of the B&N Group or the BNED Group, as applicable, or any of its respective directors, officers, employees, agents, accountants, counsel and other advisors and representatives,
(ii) later lawfully acquired from other sources by any of B&N, BNED or its respective Group, Employees, directors or agents, accountants, counsel and other advisors and representatives, as applicable, which sources are not themselves bound
by a confidentiality obligation to the knowledge of any of B&N, BNED or Persons in its respective Group, as applicable, (iii) independently generated without reference to any proprietary or confidential Information of the B&N Group or
the BNED Group, as applicable, or (iv) required to be disclosed by law; provided, however, that the Person required to disclose such Information gives the applicable Person prompt, and to the extent reasonably practicable, prior
notice of such disclosure and an opportunity to contest such disclosure and shall use commercially reasonable efforts to cooperate, at the expense of the requesting Person, in seeking any reasonable protective arrangements requested by such Person.
In the event that such appropriate protective order or other remedy is not obtained, the Person that is required to disclose such Information shall furnish, or cause to be furnished, only that portion of such Information that is legally required to
be disclosed and shall take commercially reasonable steps to ensure that confidential treatment is accorded such Information. Notwithstanding the foregoing, each of B&N and BNED may release or disclose, or permit to be released or disclosed, any
such Information concerning the other Group (A) to their respective directors, officers, Employees, agents, accountants, counsel and other advisors and representatives who need to know such Information (who shall be advised of the obligations
hereunder with respect to such Information) and (B) to any nationally recognized statistical rating agency as it reasonably deems necessary, solely for the purpose of obtaining a rating of securities upon normal terms and conditions;
provided, however, that the Party whose Information is being disclosed or released to such rating agency is promptly notified thereof. 

(b) Without limiting the foregoing, when any Information concerning the other Group or its business is no longer needed for the purposes
contemplated by this Agreement, each of B&N and BNED will, promptly after request of the other Party, either return all Information in a tangible form (including all copies thereof and all notes, extracts or summaries based thereon) or certify
to the other Party, as applicable, that it has destroyed such Information (and used commercially reasonable efforts to destroy all such Information electronically preserved or recorded within any computerized data storage device or component
(including any hard-drive or database)). 
 SECTION 19.04. Additional Provisions. Sections 12.01 to 12.14 of the Separation Agreement
are hereby incorporated into this Agreement mutatis mutandi. 
 [SIGNATURE PAGE TO FOLLOW] 

  
 18 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly
authorized representatives. 
  

			
	BARNES & NOBLE, INC.
		
	By		  

			Name:
			Title:
	
	BARNES & NOBLE EDUCATION, INC.
		
	By		  

			Name:
			Title:

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