Document:

Exhibit 10.1 

SCHOLASTIC
CORPORATION 2007 OUTSIDE DIRECTORS

STOCK INCENTIVE PLAN

Amended and Restated Effective July 18, 2012

	
  

 	
  

 
	
 1.

 	
 Name and General Purpose

 

          The
name of this plan is the Scholastic Corporation 2007 Outside Directors Stock
Incentive Plan (the “Plan”). The purpose of the Plan is to attract and retain
the services, for the benefit of Scholastic Corporation, a Delaware corporation
(the “Company”), of experienced and knowledgeable directors who are not
employees of the Company (the “Outside Directors”) and to provide an additional
incentive for such Outside Directors through ownership of the common stock, par
value $.01 per share, of the Company (the “Common Stock”).

	
  

 	
  

 
	
 2.

 	
 Grants to Outside Directors

 

          The
board of directors of the Company (the “Board”) shall determine the amount and
form of compensation to be paid to Outside Directors for serving as a member of
the Board. The compensation to be paid in stock options or “Restricted Stock
Units” (as hereinafter defined) under the Plan shall be determined by the Board
from time to time. For the fiscal year of the Company beginning June 1, 2012,
the Board has determined that it will award stock options and Restricted Stock
Units to each Outside Director having a combined value, as determined by the
Board, of $70,000, with sixty percent (60%) of such award to be awarded as
Restricted Stock Units and forty percent (40%) of such award to be awarded as
stock options.

          Subject
to the provisions of Section 13 hereof, each individual (other than any
director electing not to participate hereunder) who is, at the conclusion of
each annual meeting of the Company’s stockholders occurring after the effective
date of the Plan, an incumbent Outside Director, shall automatically be
granted, as of each such date (or, if applicable, the next succeeding business
day), (i) an option to purchase such number of shares of Common Stock as shall
be determined by the Board at an exercise price per share equal to 100% of the
Fair Market Value of the Common Stock on such date, and (ii) such number of
Restricted Stock Units as shall be determined by the Board.

          For
purposes of this Section 2, “Fair Market Value” shall mean the average of the
high and low selling prices of the Common Stock on the date on which the Common
Stock is to be valued hereunder, or, if none, on the last preceding date prior
to such date on which such prices were quoted, as reported on the NASDAQ Stock
Market, Inc. L.L.C. (“NASDAQ”). All options granted under the Plan shall be
non-qualified stock options.

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          “Restricted
Stock Unit” or “RSU” represents an unfunded, unsecured right to receive in the
future, if the conditions of an RSU award are met, one share of Common Stock
for each RSU awarded. No shares of Common Stock shall be issued to an Outside
Director on the date of the RSU grant.

	
  

 	
  

 
	
 3.

 	
 Exercise of Options

 

          Subject
to the provisions of Section 5 hereof, an option granted hereunder may not be
exercised until the earlier of (i) twelve (12) months from the date of grant,
and (ii) the date of the Annual Meeting of Stockholders next following the date
of grant.

          Except
as provided in Section 5 below or an applicable award agreement, an option may
be exercised, in whole or in part, at any time and from time to time during the
period beginning with the earlier of (i) twelve (12) months from the date of
grant, and (ii) the date of the Annual Meeting of Stockholders next following
the date of grant and ending on the option expiration date, by following the
procedures established by the Company and its designated record keeper at the
time of exercise specifying the number of shares of Common Stock to be
purchased upon any such exercise.

          No
shares of Common Stock shall be issued until full payment therefor has been
made as provided in the applicable award agreement. An Outside Director shall
have no rights as a stockholder of the Company with respect to any shares of
Common Stock subject to an option until such time as the Outside Director has
properly exercised his or her option, paid in full for the shares subject to
such option, and executed any representations required by the Company.

          Each
option granted hereunder shall expire on the tenth anniversary of the date on
which it was granted, if not sooner terminated as provided herein.

	
  

 	
  

 
	
 4.

 	
 Restricted Stock Units

 

          An
RSU award shall not vest prior to the earlier of (i) twelve (12) months from
the date of grant, and (ii) the date of the Annual Meeting of Stockholders next
following the date of grant. Shares of Common Stock in respect of a vested RSU
award shall be issued to an Outside Director within thirty (30) days from the
vesting of an RSU as provided in an award agreement.

          The
record established by the Company of the Restricted Stock Units awarded to an
Outside Director does not constitute any stock or property of the Company. No
funds or shares of Common Stock shall be placed in trust or set aside to assure
payment of an award of Restricted Stock Units. Restricted Stock Units are an
unfunded, unsecured promise of the Company to issue Common Stock in the future,
subject to vesting and other conditions in the Plan or an applicable award
agreement. The right of an Outside Director to receive shares of

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Common Stock
in settlement of an RSU shall be no greater than any general unsecured creditor
of the Company. An Outside Director shall have no rights as a stockholder with
respect to shares of Common Stock which may be issued in settlement of an RSU
until the date of issuance of a certificate for such shares (as evidenced by
the appropriate entry on the books of the Company or a duly authorized transfer
agent). No adjustment shall be made for dividends, distributions or other
rights for which the record date is prior to the date such certificate is
issued.

	
  

 	
  

 
	
 5.

 	
 Termination of Services of Outside Directors

 

          (a)      In
the event that an Outside Director to whom an option has been granted under the
Plan shall cease to serve on the Board of Directors, otherwise than by reason
of death or disability, such option may be exercised (to the extent that the
Outside Director is entitled to do so at the time of such option exercise) at
any time and from time to time within six (6) months after such cessation of
service, but not thereafter, and in no event after the date on which, except
for such cessation of service, the option would otherwise expire; provided,
however, that, in the event an Outside Director to whom an option has been
granted under the Plan shall cease to serve on the Board of Directors but shall
have been designated as a Director Emeritus, his or her option shall continue
to be exercisable (to the extent his or her option has become exercisable at
the time of such exercise) until six (6) months after termination of his or her
Director Emeritus status or expiration of the option, whichever occurs first.

          (b)      In
the event that an Outside Director to whom an option has been granted under the
Plan shall cease to serve on the Board of Directors by reason of disability (as
determined by the Board of Directors on the basis of all the facts and
circumstances), such option may be exercised, in full or in part, by the
Outside Director or his or her legally appointed representative (notwithstanding
that the option may not yet otherwise have become exercisable with respect to
all or part of such shares as of the date of disability) at any time and from
time to time within twelve (12) months after such cessation of service, but not
thereafter, and in no event after the date on which, except for such
disability, the option would otherwise expire.

          (c)      If
an Outside Director to whom an option has been granted under the Plan dies (i)
while he or she is serving on the Board of Directors, (ii) within three (3)
months after cessation of service on the Board of Directors other than by
reason of disability, or (iii) within twelve (12) months after cessation of
service on the Board of Directors by reason of disability, such option may be exercised:

                    1)         in
the case of death while serving on the Board of Directors, as to all or any
part of the remaining unexercised portion of the option, notwithstanding that
the option may not yet otherwise have become exercisable with respect to all or
part of such shares as of the date of death;

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                    2)         in
the case of death after cessation of service on the Board of Directors or death
after termination of such service by reason of disability, to the extent that
the Outside Director was entitled to do so at the date of his or her death,
giving effect to the provisions of subsections (a) and (b) above of this
Section 5; and

                    3)         in
each case by the person who acquired the right to exercise such option by
bequest or inheritance or by reason of the death of the Outside Director, but
in no event after the date on which the option would otherwise expire under
Section 3 of the Plan.

                    4)         Notwithstanding
the provisions of subsections (b) and (c) above of this Section 5, in no event
shall any option granted under the Plan be exercised within six (6) months of
the date of grant.

          (d)      In
the event that an Outside Director to whom an RSU has been granted under the
Plan for a year shall cease to serve as an Outside Director prior to the
earlier of (i) twelve (12) months from the date of grant, and (ii) the date of
the Annual Meeting of Stockholders next following the date of grant otherwise
than by reason of death or disability, the RSU award for such year shall be
forfeited upon such cessation of services. In the event that an Outside
Director to whom an RSU has been granted shall cease to serve on the Board of
Directors but shall have been designated as a Director Emeritus, such director
shall be deemed to continue in service as an Outside Director until termination
of his or her Director Emeritus status for purposes of determining the vesting
of an RSU award and cessation of services as a director. In the event that an
Outside Director to whom an RSU has been granted under the Plan shall cease to
serve as an Outside Director prior to the earlier of (i) twelve (12) months
from the date of grant, and (ii) the date of the Annual Meeting of Stockholders
next following the date of grant on account of death or (as determined by the
Board of Directors on the basis of all the facts and circumstances) disability,
the RSU award shall become immediately vested and non-forfeitable and shares of
Common Stock in respect of such RSU award shall be distributed within thirty
(30) days after such cessation of services. In the event that an Outside
Director ceases to serve as an Outside Director, any shares of Common Stock in
respect of a vested undistributed RSU award shall be distributed within thirty
(30) days after such cessation of services.

	
  

 	
  

 
	
 6.

 	
 Transferability

 

          No
option or Restricted Stock Unit granted under the Plan may be sold,
transferred, pledged, assigned, or otherwise alienated, other than by will or
by the laws of descent and distribution.

	
  

 	
  

 
	
 7.

 	
 Shares Reserved

 

          The
aggregate number of shares reserved for issuance pursuant to the Plan shall be
500,000 shares of Common Stock, or the number and kind of shares of stock or
other

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securities
which shall be substituted for such shares or to which such shares shall be
adjusted as provided in Section 8.

          Such
number of shares may be set aside out of the authorized but unissued shares of
Common Stock not reserved for any other purpose, or out of issued shares of
Common Stock acquired for and held in the treasury of the Company.

          Shares
subject to, but not sold or issued under, any option or Restricted Stock Unit
terminating, expiring or cancelled for any reason prior to its exercise in full
will again be available for awards thereafter granted during the balance of the
term of the Plan.

	
  

 	
  

 
	
 8.

 	
 Adjustments Due to Stock Splits, Mergers, Consolidations, etc.

 

          If,
at any time, the Company shall take any action, whether by stock dividend,
stock split, combination of shares, or otherwise, which results in a
proportionate increase or decrease in the number of shares of Common Stock
theretofore issued and outstanding, the number of shares which are reserved
under the Plan shall be automatically adjusted, and both the number of shares
which, at such time, are subject to outstanding option or Restricted Stock Unit
awards and the number of shares to be awarded in the future to Outside
Directors shall be adjusted in the same proportion (with appropriate adjustment
to the option price); provided, however, that the Company shall not be
obligated to issue fractional shares.

          In
the event of any increase, reduction, or change or exchange of Common Stock for
a different number or kind of shares or other securities of the Company by
reason of a reclassification, recapitalization, merger, consolidation,
reorganization, stock dividend, stock split or reverse stock split, combination
or exchange of shares, repurchase of shares, change in corporate structure or
otherwise, the Board of Directors shall conclusively determine the appropriate
equitable adjustments, if any, to be made under the Plan, including without
limitation adjustments to the number or type of shares which have been
authorized for issuance under the Plan but have not yet been placed under
option or RSU, the number or type of shares which are subject to outstanding
awards or may be awarded in the future as grants to Outside Directors, as well
as the price per share covered by each option outstanding under the Plan which
has not yet been exercised.

	
  

 	
  

 
	
 9.

 	
 Withholding or Deduction of Taxes

 

          If,
at any time, the Company is required under applicable laws or regulations to
withhold, or to make any deduction for, any taxes or take any other action in
connection with the exercise of any option hereunder or the vesting or delivery
of Common Stock in respect of a Restricted Stock Unit, the Company shall have
the right to deduct from all amounts payable in cash any taxes required by law
to be withheld therefrom, and, in the case of payments in the form of Common
Stock, the Outside Director to whom such payments are to be made shall be
required to pay to the Company the amount of any taxes required to be

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withheld, or,
in lieu thereof, the Company shall have the right to retain, or sell without
notice, a sufficient number of shares of Common Stock to cover the minimum
amount required to be withheld.

	
  

 	
  

 
	
 10.

 	
 Administration

 

          The
Plan shall be administered by the Board of Directors. Subject to the provisions
of the Plan, the Board of Directors shall have the sole and complete
discretionary authority to:

          (a)          adopt,
revise, and repeal such administrative rules, guidelines and practices
governing the Plan as it shall from time to time deem advisable;

          (b)          construe
and interpret the terms of the Plan and any option, RSU or other award issued
under the Plan (and any agreements relating thereto), to resolve any doubtful
or disputed terms, and otherwise settle all claims and disputes arising under
the Plan;

          (c)          correct
any defect, supply any omission or reconcile any inconsistency in the Plan or
in any award agreement relating thereto in the manner and to the extent it
shall deem necessary to effectuate the purposes and intent of the Plan;

          (d)          determine
the amount and form of compensation to be paid to Outside Directors from time
to time, the allocation of such compensation among the awards to be made under
the Plan, the terms and conditions of each award, the number of shares of
Common Stock to be covered by each award, and the value or method of
determining the value of each type of award under the Plan;

          (e)          delegate
responsibility and authority for the operation and administration of the Plan,
including delegation of all or any portion of the authority invested in the
Board pursuant to this Section 10 or otherwise in the Plan to a committee of
the Board of Directors, and appoint employees and officers of the Company and
its affiliates to act on its behalf and employ persons to assist in fulfilling
its responsibilities under the Plan, including authorizing employees and
officers to execute on behalf of the Company any instrument required to effect
the grant of an award made by the Board under the Plan;

          (f)          make
all other decisions and determinations as may be required or appropriate under
the terms of the Plan or an award agreement as the Board may deem necessary or
advisable for the administration of the Plan; and otherwise supervise the
administration of the Plan.

          All
decisions by the Board or a committee thereof shall be final and binding on all
Outside Directors and shall be given the maximum deference permitted by law.

          The
entire expense of administering the Plan shall be borne by the Company.

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 11.

 	
 Compliance with Applicable Law

 

          Notwithstanding
any other provision of the Plan, the Company shall not be obligated to issue
any shares of Common Stock, or grant any option or RSU with respect thereto,
unless it is advised by counsel of its selection that it may do so without
violation of the applicable federal and state laws pertaining to the issuance
of securities or the provisions of any national securities exchange or NASDAQ,
and the Company may require any securities so issued to bear a legend, may give
its transfer agent instructions, and may take such other steps as in its
judgment are reasonably required to prevent any such violation.

          All
awards and transactions under the Plan are intended to comply with any
applicable exemptive conditions under Rule 16b-3 promulgated by the US
Securities and Exchange Commission under the Securities Exchange Act of 1934,
as amended (“Rule 16b-3”) and the Board shall interpret and administer the
Plan, award agreements, and any Plan guidelines in a manner consistent
therewith. All awards under the Plan shall be deemed approved by the Board and
shall be deemed an exempt purchase under Rule 16b-3. Any provisions in the Plan
or an award agreement inconsistent with Rule 16b-3 shall be inoperative.

	
  

 	
  

 
	
 12.

 	
 Amendment and Termination

 

          It
is the intention of the Company that no payment or entitlement pursuant to the
Plan will give rise to any adverse tax consequences to an Outside Director
under Section 409A of the Internal Revenue Code and Department of Treasury
regulations and other interpretive guidance issued thereunder, including those
issued after the date hereof (collectively, “Section 409A”). The Plan shall be
interpreted to that end and, consistent with that objective and notwithstanding
any provision herein to the contrary, the Company may unilaterally take any
action it deems necessary or desirable to amend any provision herein to avoid the
application of or excise tax or other penalties under Section 409A, including
any actions to exempt an award from Section 409A or comply with the
requirements of Section 409A. Further, no effect shall be given to any
provision herein in a manner that reasonably could be expected to give rise to
adverse tax consequences under Section 409A. Neither the Company nor its
current or former employees, officers, directors, representatives or agents
shall have any liability to any current or former Outside Director with respect
to any accelerated taxation, additional taxes, penalties or interest for which
any current or former Outside Director may become liable in the event that any
amounts payable under the Plan are determined to violate Section 409A.

          The
Board of Directors may amend or discontinue the Plan at any time and from time
to time; provided, however, that (a) unless otherwise required by law, no
amendment, alteration or discontinuation shall be made which would impair the
rights of an Outside Director with respect to any outstanding option or RSU
which has been granted under the Plan without such individual’s consent and (b)
no amendment shall be effective without the approval of the stockholders of the
Company if stockholder approval of the amendment is

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then required
pursuant to Rule 16b-3, the applicable rules of any national securities
exchange or NASDAQ, or the Delaware corporation law or other applicable laws.

          Except
in connection with a corporate transaction involving the Company (including
without limitation a transaction described in Section 8 or a change in control
of the Company), without the approval of the Company’s stockholders, the Board
cannot approve either (i) the cancellation of outstanding options in exchange
for the grant in substitution therefor of new options having a lower exercise
price, (ii) the amendment of outstanding options to reduce the exercise price
thereof, or (iii) the cancellation of outstanding options with an exercise
price above the current stock price in exchange for cash or other securities.
This limitation shall not be construed to apply to “issuing or assuming an
option in a transaction to which Section 424(a) applies,” within the meaning of
Section 424 of the Code.

	
  

 	
  

 
	
 13.

 	
 Effective Date

 

          The
effective date of the Plan as originally adopted is July 18, 2007, the date on
which it was originally adopted by the Board of Directors, having subsequently
received the requisite stockholder approval from the holders of the Company’s
Class A Stock, per value $.01 per share (the “Class A Holders”). The Plan shall
terminate on July 18, 2017. The effective date of this Amended and Restated
Plan is July 18, 2012, the date it was adopted by the Board of Directors;
provided, however, that this Amended and Restated Plan is also subject to the
approval of the Class A Holders at the Annual Meeting of Stockholders to be
held in September 2012.

	
  

 	
  

 
	
 14.

 	
 Governing Law

 

          The
Plan shall be governed by, and construed in accordance with, the laws of the State
of Delaware.

8Exhibit 10.2

SCHOLASTIC CORPORATION

2007 OUTSIDE DIRECTORS' STOCK INCENTIVE
PLAN

Stock Option Agreement

 

 

SCHOLASTIC CORPORATION,
a Delaware corporation (the "Company"), hereby grants to ______________________ (the "Outside Director") an
option (the "Option") to purchase ____ (__) shares of common stock, par value $.01 per share, of the Company (the "Common
Stock"), at the price and on the terms set forth herein, and in all respects subject to the terms and provisions of the Scholastic
Corporation 2007 Outside Directors' Stock Incentive Plan (the "Plan"), which terms and provisions are incorporated by
reference herein. Unless the context herein otherwise requires, the terms defined in the Plan shall have the same meanings in this
Agreement.

 

1.Date of Grant; Term of Option.
The Option is granted effective as of September __ , 20__. The term of the Option is ten years from the date of grant, subject
to earlier expiration of the Option as provided in this Agreement.

 

2.Option Exercise Price.
The exercise price of the Option is $____ per share, which price is the Fair Market Value per share on the date of grant.

 

3.Exercise of Option. The
Option shall be exercisable only during its term and only in accordance with the terms and provisions of the Plan and this Agreement
as follows:

 

(a)Right to Exercise. The
Option shall not be exercisable until the earlier of (i) September __, 20__, the expiration of the twelve (12)-month period beginning
on the date of grant, and (ii) the date of the Annual Meeting of Stockholders next following the date of grant.

 

(b)Method
of Exercise. Once exercisable, subject to the provisions of the Plan and this Agreement, the Option may be exercised,
in whole or in part, pursuant to the notice and payment procedures then in effect as established by the Company, in its sole discretion,
which procedures may be electronic and may require providing notice to a broker or recordkeeper designated by the Company. Any
written or electronic notice of exercise by an Outside Director shall be irrevocable. Shares of Common
Stock as to which the Option shall be exercised shall be registered in the name of the Outside Director.

 

(c)Restrictions
on Exercise. The Option may not be exercised if the issuance of the Common Stock upon such exercise would constitute a violation
of any applicable federal or state securities laws or other laws or regulations. As a condition to the exercise of the Option,
the Company may require the Outside Director to make any representation and warranty to the Company as may be required by any applicable
law or regulation. The Option may not be exercised during any period prohibited by the Company’s stock trading policies
or applicable securities laws. The Option may not be exercised with respect to a fractional share of Common Stock.

 

(d)No Shareholder Rights before
Exercise and Issuance. No rights as a shareholder shall exist with respect to the Common Stock subject to the Option as a result
of the grant of the Option. Such rights shall exist only after shares of Common Stock are registered in the name of an Outside
Director following the exercise of the Option as provided in this Agreement and the Plan.

 

4.Termination of Services as
an Outside Director.

 

(a)If
the Outside Director ceases to serve as a member of the Board of Directors of the Company (the "Board") for any reason
other than death or disability, the Outside Director shall have the right to exercise the Option at any time within six (6) months
after the date of such cessation to the extent that the Outside Director was entitled to exercise the Option at the date of such
cessation of services as provided in Section 3(a) above (subject to any earlier expiration of the Option as provided under this
Agreement). In the event that an Outside Director shall cease to serve as an Outside Director prior to the earlier of (i)
the twelve (12) month period beginning on the Grant Date, and (ii) the date of the Annual Meeting of the Stockholders next following
the date of grant for any reason other than death or disability, the Option shall be forfeited immediately upon such cessation
of services. Notwithstanding the foregoing, in the event
that an Outside Director shall cease to serve on the Board but shall be designated as a Director Emeritus, his or her Option shall
continue to be exercisable as though the Outside Director continued to serve as a Director until six (6) months after termination
of his or her Director Emeritus status or, if earlier, expiration of the Option under this Agreement. 

 

(b)If the Outside Director
ceases to serve as a Director on the Board by reason of his or her disability (as determined by the Board), the Option may be exercised
in full or in part (even though the Option may not yet have become exercisable as provided in Section 3(a)) by the Outside Director
or his or her legally appointed representative, at any time within the twelve (12) months after the date of such cessation of services
(subject to any earlier expiration of the Option as provided under this Agreement).

 

(c)If the Outside Director
ceases to serve as a Director on the Board by reason of his or her death, or if the Outside Director dies within three (3) months
after ceasing to serve as a Director other than by reason of his or her disability or within twelve (12) months after ceasing to
serve as a Director by reason of his or her disability, the Option may be exercised by the Outside Director's heir or representative
at any time [within twelve (12) months after the Outside Director's death] [Note: the Plan does not impose a 12-month post-death
time limit for exercise; the Committee can set a shorter time for exercise per 10(d) of the Plan] (subject to any earlier expiration
of the Option as provided under this Agreement) to the following extent: (i) in the case of the Outside Director's death while
serving as a Director, as to all or any part of the remaining unexercised portion of the Option, notwithstanding that the Option
may not have been exercisable as of the date of the Outside Director's death as provided in Section 3(a) above, and (ii) in the
case of the Outside Director's death after he or she ceased to serve as a Director as a result of disability or otherwise, to the
extent that the Outside Director was entitled to exercise the Option as of the date of his or her death, giving effect to the provisions
of the preceding subsections (a) and (b).

 

2

(d)Notwithstanding the provisions
of this Section 4(b) and (c), in no event may an Option be exercised within six (6) months from the date of grant.

 

5.Nontransferability of Option.
The Option may not be sold, pledged, assigned, hypothecated, gifted, transferred or disposed of in any manner either voluntarily
or involuntarily by operation of law, other than by will or by the laws of descent and distribution or pursuant to a qualified
domestic relations order as provided by the Internal Revenue Code of 1986 or the rules thereunder, and may be exercised during
the lifetime of the Outside Director only by the Outside Director. Subject to the foregoing and the terms of the Plan, the terms
of the Option shall be binding upon the executors, administrators, heirs, successors and assigns of the Outside Director.

 

6.No Enlargement of Rights.
Neither the Plan nor the Option granted hereunder shall confer upon the Outside Director any right to continue as a Director of
the Company. The Outside Director shall have only such rights and interests as are expressly provided in this Agreement and the
Plan.

 

7.Withholding Tax Liability.
In connection with the exercise of the Option, the Company and the Outside Director may incur liability for income withholding
tax. The Outside Director understands and agrees that if the Company is required to withhold part or all of the Outside Director's
annual or meeting fees to pay any such withholding tax, and that if such fees are insufficient, the Company may require the Outside
Director, as a condition of exercise of the Option, to pay in cash the amount of any such withholding tax liability.

 

8.Effect of the Plan on Option.
The Option is subject to, and the Company and the Outside Director agree to be bound by, all of the terms and conditions of the
Plan, as such may be amended from time to time in accordance with the terms thereof, provided that no such amendment shall deprive
the Outside Director, without his or her consent, of an outstanding Option or any rights hereunder. Pursuant to the Plan, the Committee
appointed by the Board of Directors of the Company is authorized to adopt rules and regulations, consistent with the Plan and as
it shall deem appropriate and proper, with regard to the Plan. A copy of the Plan in its present form is available for inspection
during the Company's business hours by the Outside Director or the persons entitled to exercise the Option at the Company's principal
office.

 

9.Entire Agreement.The
terms of this Agreement and the Plan constitute the entire agreement between the Company and the Outside Director with respect
to the subject matter hereof and supersede any and all previous agreements between the Company and the Outside Director.

 

10.Severability.If
any provision of this Agreement, or the application of such provision to any person or circumstances, is held valid or unenforceable,
the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as to which
it is held valid or unenforceable, shall not be affected thereby.

 

3

11.Section
409A of the Code. It is the intention of the parties to this Stock Option Agreement that no payment or entitlement pursuant
to this Stock Option Agreement will give rise to any adverse tax consequences to the Outside Director under Section 409A of the
Code or the regulations and other interpretive guidance issued thereunder, including that issued after the date hereof (collectively,
“Section 409A”). The Stock Option Agreement and the Plan shall be interpreted to that end and, consistent with that
objective and notwithstanding any provision herein or the Plan to the contrary, the Company may unilaterally take any action it
deems necessary or desirable to amend any provision herein or in the Plan to avoid the application of, or the excise tax under,
Section 409A. Further, no effect shall be given to any provision in the Plan or this Agreement in a manner that reasonably could
be expected to give rise to adverse tax consequences under Section 409A. Although the Company shall consult with the Outside Director
in good faith regarding implementation of this Section 11, neither the Company nor its current or former employees, officers, directors,
agents or representatives shall have any liability to the Outside Director with respect to any additional taxes, excise taxes,
accelerated taxation, penalties or interest for which the Outside Director may become liable in the event that any amounts under
this Agreement are determined to violate Section 409A.

 

IN WITNESS WHEREOF,
this Agreement has been executed by the undersigned effective as of the day and year first set forth above.

 

	OUTSIDE
          DIRECTOR
	SCHOLASTIC
          CORPORATION 

	 	 
	_______________________________ 
	______________________________

	 	Richard
        Robinson

	 	Chairman
        of the Board,

        Chief Executive Officer &
      President

 

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