Document:

ex10-9.htm

 

Exhibit 10.9

 

 

FINANCIAL SERVICES VEHICLE TRUST,

 

BMW MANUFACTURING L.P.,

 

BMW AUTO LEASING LLC,

 

BMW VEHICLE LEASE TRUST 20[__]-[__],

 

 

and

 

 

[__________],

as Indenture Trustee

 

 

____________________________________________________

 

BACK-UP SECURITY AGREEMENT

Dated as of [________], 20[__]

____________________________________________________

 

 

 

  

  

  

TABLE OF CONTENTS

 

	 	 	
Page

 

	
ARTICLE ONE

 

	
DEFINITIONS

	
2

	
Section 1.01.

	
Definitions

	
2

	
Section 1.02.

	
Interpretive Provisions

	
3

	
 

ARTICLE TWO

 

	
 

SECURITY INTEREST

	
 

3

	
Section 2.01.

	
Grant of Security Interest.

	
3

	
Section 2.02.

	
Certificate of Title

	
4

	
Section 2.03.

	
Filing of Financing Statements.

	
4

	
Section 2.04.

	
Use of Collateral

	
5

	
Section 2.05.

	
Further Description of the Collateral

	
5

	
Section 2.06.

	
Back-Up Rights of Issuer

	
5

 

	
ARTICLE THREE

 

	
MISCELLANEOUS

	
5

	
Section 3.01.

	
Amendments

	
5

	
Section 3.02.

	
Governing Law

	
5

	
Section 3.03.

	
Severability of Provisions

	
5

	
Section 3.04.

	
Counterparts

	
5

	
Section 3.05.

	
Successors and Assigns

	
6

	
Section 3.06.

	
Further Assurances

	
6

	
Section 3.07.

	
Limitation of Liability of Owner Trustee, the Trustee and the Indenture Trustee.

	
6

	
Section 3.08.

	
Notices

	
6

	
Section 3.09.

	
Series Disclaimer and Acknowledgment

	
7

	  	  	  
	
SCHEDULES

 

	  	  
	
Schedule A — Schedule of 20[__]-[__] Leases

	
A-1

  

  

  

BACK-UP SECURITY AGREEMENT

 

This Back-Up Security Agreement, dated as of [________], 20[__], is among Financial Services Vehicle Trust, a Delaware statutory trust (the “Vehicle Trust”), BMW Manufacturing L.P., an Indiana limited partnership (“BMW LP”), BMW Auto Leasing LLC, a Delaware limited liability company (the “Transferor”), BMW Vehicle Lease Trust 20[__]-[__], a Delaware statutory trust (the “Issuer”), and [__________], a [__________], not in its individual capacity, but solely as indenture trustee (the “Indenture Trustee”) under the Indenture, dated as of [________], 20[__] (the “Indenture”), from the Issuer to the Indenture Trustee.

 

RECITALS

 

WHEREAS, the Vehicle Trust is governed by the Amended and Restated Trust Agreement, dated as of September 27, 1996, as further amended as of May 25, 2000 and December 1, 2006 (the “Vehicle Trust Agreement”), between BMW LP and BNY Mellon Trust of Delaware, formerly known as The Bank of New York (Delaware), a Delaware banking corporation, as Trustee (the “Trustee”);

 

WHEREAS, the Vehicle Trust was formed for the purposes of taking assignments and conveyances of, holding in trust and releasing its ownership interest in, various trust assets, including lease contracts (insofar as such lease contracts pertain to particular passenger cars, motorcycles or light trucks) and the related passenger cars, motorcycles or light trucks;

 

WHEREAS, the parties to the Vehicle Trust Agreement supplemented the Vehicle Trust Agreement with a supplement, dated as of [________], 20[__] (the “20[__]-[__] Vehicle Trust Supplement” and together with the Vehicle Trust Agreement, the “SUBI Trust Agreement”), to establish one special unit of beneficial interest (the “20[__]-[__] SUBI”);

 

WHEREAS, in connection with the SUBI Trust Agreement, a separate portfolio of Leases (the “20[__]-[__] Leases”), the Leased Vehicles that are leased under the 20[__]-[__] Leases (the “20[__]-[__] Vehicles”) and certain other related assets of the Vehicle Trust have been allocated to the 20[__]-[__] SUBI;

 

WHEREAS, the Vehicle Trust has issued to BMW LP a certificate evidencing a beneficial interest in the 20[__]-[__] SUBI (the “20[__]-[__] SUBI Certificate”);

 

WHEREAS, the Issuer was formed pursuant to that certain trust agreement, dated as of [________], 20[__], as amended and restated as of [________], 20[__], between the Transferor and [__________], a [__________], as owner trustee (the “Trust Agreement”);

 

WHEREAS, pursuant to the SUBI certificate transfer agreement, dated as of [________], 20[__] (the “SUBI Certificate Transfer Agreement”), between BMW LP and the Transferor, BMW LP has transferred and assigned, without recourse, to the Transferor, all of BMW LP’s interest in the 20[__]-[__] SUBI Certificate and certain other rights in consideration of the Transfer Price (as defined therein);

 

  

  

  

WHEREAS, pursuant to the Issuer SUBI certificate transfer agreement, dated as of [________], 20[__] (the “Issuer SUBI Certificate Transfer Agreement”), between the Transferor and the Issuer, the Transferor has transferred and assigned, without recourse, to the Issuer, all of the Transferor’s interest in the 20[__]-[__] SUBI Certificate and certain other rights in consideration of the Transfer Price (as defined therein);

 

WHEREAS, pursuant to the Indenture, the Issuer has granted a security interest in the 20[__]-[__] SUBI Certificate to the Indenture Trustee to secure payment of the Notes; and

 

WHEREAS, the parties hereto desire to provide that if, for any reason, the form of any of the transactions contemplated by the SUBI Trust Agreement, the 20[__]-[__] SUBI Certificate, the Trust Agreement or the Indenture (collectively, the “Transfer Documents”) are deemed to constitute a loan by any or all of the Securityholders (as defined in the Trust Agreement), secured by a pledge of the 20[__]-[__] SUBI Assets or any interest therein (rather than by the 20[__]-[__] SUBI Certificate), each of the Vehicle Trust, BMW LP and the Transferor shall be deemed to have granted to the Issuer a first priority security interest in the Collateral (as defined herein) to secure the Securities, which security interest the Issuer shall have assigned to the Indenture Trustee to secure the Notes.

 

NOW, THEREFORE, in consideration of the mutual agreements herein contained, and of other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE ONE

 

DEFINITIONS

 

Section 1.01.      Definitions.  Whenever used herein, unless the context otherwise requires, (i) capitalized terms not otherwise defined herein have the meanings ascribed thereto in the SUBI Trust Agreement, and if not defined therein, in the Servicing Agreement, (ii) capitalized terms defined in the Preamble and the Recitals have the meanings set forth therein and (iii) the following words and phrases shall have the following meanings:

 

“Agreement” means this Back-Up Security Agreement, as amended or supplemented from time to time.

 

“Back-Up Event” means that a court of competent jurisdiction has made a determination or ruling that has the effect of allowing realization on the security intended to be provided to the Issuer by the Transfer Documents only if such transactions are deemed to constitute a loan by the Issuer, secured directly by a pledge of the 20[__]-[__] SUBI Assets or any interest therein (rather than by the 20[__]-[__] SUBI Certificate and the beneficial interest in the 20[__]-[__] SUBI Assets represented thereby).

 

  

2

  

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

 

“Pledgors” means the Vehicle Trust, BMW LP and the Transferor.

 

“Servicing Agreement” means the Basic Servicing Agreement, dated as of August 30, 1995, between the Vehicle Trust, BMW LP and BMW Financial Services NA, LLC (“BMW FS”), as servicer, as supplemented by the Servicing Supplement, dated as of [________], 20[__], among the Vehicle Trust, BMW LP, and BMW FS, as servicer.

 

“Trust Assets” has the meaning set forth in the SUBI Trust Agreement.

 

“UCC” means the Uniform Commercial Code as in effect in the applicable jurisdiction.

 

Section 1.02.      Interpretive Provisions.  For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires, (i) terms used herein include, as appropriate, all genders and the plural as well as the singular, (ii) references to words such as “herein”, “hereof” and the like shall refer to this Agreement as a whole and not to any particular part, Article or Section herein, (iii) references to an Article or Section such as “Article One” or “Section 1.01” shall refer to the applicable Article or Section of this Agreement, (iv) the term “include” and all variations thereof shall mean “include without limitation” and (v) the term “proceeds” shall have the meaning ascribed to such term in the UCC.

 

ARTICLE TWO

 

SECURITY INTEREST

 

Section 2.01.      Grant of Security Interest.

 

(a)      Each of the Vehicle Trust, BMW LP and the Transferor hereby grants to the Issuer a security interest in all of its present and future right, title and interest, if any, in, to and under (but not, except to the extent required by law, any obligations with respect to) the following collateral (the “Collateral”):  (i) a 100% interest in (A) all rights under the 20[__]-[__] Leases; (B) all other 20[__]-[__] SUBI Assets, including the 20[__]-[__] SUBI Collection Account but excluding the 20[__]-[__] Vehicles except to the extent permitted by law and (C) all proceeds of the items described in (i) (A) and (i) (B), including insurance proceeds payable by reason of loss or damage to the 20[__]-[__] Vehicles to the extent not applied to making repairs to the related 20[__]-[__] Vehicle or otherwise paid by the Servicer to the Lessee, a third person or 

 

 

3

 

governmental authority as required by law or pursuant to its normal servicing practices and (ii) all proceeds of the foregoing.  Such grant is made to secure (i) the payment of all amounts due on the Securities in accordance with their terms in the priorities of payment set forth in the Indenture, (ii) the payment of all other sums payable under the Trust Agreement or the Indenture and (iii) compliance with the provisions of the Trust Agreement and the Indenture.

 

(b)      The Issuer hereby assigns to the Indenture Trustee its security interests in the Collateral granted to the Issuer pursuant to Section 2.01(a) hereof to secure (i) the payment of all amounts due on the Notes, (ii) the payment of all other sums payable under the Indenture and (iii) compliance with the provisions of the Indenture.

 

(c)      Each of the Issuer and the Indenture Trustee acknowledges such grant and assignment, but all parties hereto acknowledge and agree that (i) such grant and assignment are made solely for protective purposes and without representation or warranty as to the nature of any of parties’ rights in and to the Collateral; and (ii) none of the parties hereto intends to imply in any way that any of the Transfer Documents should not be interpreted or enforced in accordance with its respective terms.  Each of the Trustee and the Indenture Trustee also acknowledges that it shall have no claim to any proceeds or assets of the Vehicle Trust or to any of the Trust Assets other than the Collateral.

 

Section 2.02.      Certificate of Title.  None of the parties hereto, including the Vehicle Trust, shall be required to make notation on, or cause to be taken any other action with respect to, any Certificate of Title for any 20[__]-[__] Vehicle to reflect the back-up Lien created hereby.

 

Section 2.03.      Filing of Financing Statements.

 

(a)      Each of the Vehicle Trust, BMW LP, the Transferor and the Issuer, will from time to time execute, deliver and file all UCC financing statements and continuation statements reasonably required or necessary to maintain, perfect or continue the perfection of the back-up Lien created hereby with respect to the 20[__]-[__] Leases and the proceeds thereof and any other Collateral, the perfection of a security interest in which may be accomplished and continued by the same filings.  Each of BMW LP, the Transferor and the Issuer acknowledge and agree that the UCC-1 financing statement filed against BMW LP in connection with the transactions contemplated by the SUBI Certificate Transfer Agreement shall be assigned directly by the Transferor to the Indenture Trustee as secured party of record. The obligations of the Issuer hereunder will be performed by the Administrator.

 

(b)      Upon release of the lien of the Indenture, the Indenture Trustee shall execute and file such partial or full releases or partial or full assignments of financing statements and other documents and instruments as may be prepared and reasonably requested by the Issuer to assign the Indenture Trustee’s interests hereunder back to the Issuer.

 

  

4

  

Section 2.04.      Use of Collateral.  Each of the parties granting a security interest hereunder may continue to use and deal with its interest in the Collateral in any lawful manner and may sell items of Collateral in the ordinary course of its business, subject only to the requirements of the Transfer Documents, the Servicing Agreement or any other Basic Document, as appropriate.

 

Section 2.05.      Further Description of the Collateral.  Schedule A attached hereto contains a description of the 20[__]-[__] Leases.

 

Section 2.06.      Back-Up Rights of Issuer.  If a Back-Up Event shall have occurred and be continuing, the Issuer may exercise the rights and remedies with respect to the Collateral of a secured party under the UCC to the extent permitted by applicable law.  Notwithstanding any other provision hereof, the Issuer shall have recourse only against the Collateral and not against any Pledgor hereunder.

 

ARTICLE THREE

 

MISCELLANEOUS

 

Section 3.01.      Amendments.  This Agreement may be amended by written agreement among the parties hereto; provided, however, that it may only be amended under the same circumstances the Trust Agreement could be amended pursuant to Section 12.01 thereof and the Indenture could be amended pursuant to Article Nine thereof.

 

Section 3.02.      Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY OTHERWISE APPLICABLE PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

Section 3.03.      Severability of Provisions.  If any one or more of the covenants, agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid or unenforceable, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions and terms of this Agreement, as the same may be amended or supplemented, and shall in no way affect the validity or enforceability of the other covenants, agreements, provisions or terms of this Agreement.

 

Section 3.04.      Counterparts.  This Agreement may be executed in any number of counterparts, each of which so executed and delivered shall be deemed to be an original, but all of which counterparts shall together constitute but one and the same instrument.

 

  

5

  

Section 3.05.      Successors and Assigns.  All covenants and agreements contained in this Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective permitted successors and assigns.

 

Section 3.06.      Further Assurances.  Each party will perform such acts and execute and deliver to any other party such additional documents or instruments as may be reasonably requested in order to effect the purposes of this Agreement and to better assure and confirm unto the requesting party its rights, powers and remedies hereunder.

 

Section 3.07.      Limitation of Liability of the Owner Trustee, the Trustee and the Indenture Trustee.

 

(a)      Notwithstanding anything contained herein to the contrary, this instrument has been countersigned by [__________] not in its individual capacity but solely in its capacity as Owner Trustee of the Issuer and in no event shall [__________] in its individual capacity or, except as expressly provided in the Trust Agreement, as Owner Trustee of the Issuer, have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuer hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the Issuer in accordance with the priorities set forth in the Indenture.  For all purposes of this Agreement, in the performance of any duties or obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Articles Six, Seven and Eight of the Trust Agreement.

 

(b)      Notwithstanding anything contained herein to the contrary, this instrument has been countersigned by BNY Mellon Trust of Delaware not in its individual capacity but solely in its capacity as Trustee of the Vehicle Trust and in no event shall BNY Mellon Trust of Delaware in its individual capacity have any liability for the representations, warranties, covenants, agreements or other obligations of the Vehicle Trust hereunder, as to all of which recourse shall be had solely to the assets of the Vehicle Trust.  For all purposes of this Agreement, in the performance of any duties or obligations of the Vehicle Trust hereunder, the Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Part VI of the SUBI Trust Agreement.

 

(c)      Notwithstanding anything contained herein to the contrary, this instrument has been countersigned by [__________] not in its individual capacity but solely in its capacity as Indenture Trustee and in no event shall [__________] in its individual capacity have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuer hereunder or in any of the certificates, notices or agreements delivered pursuant hereto.

 

Section 3.08.      Notices.  All notices, requests and demands under this Agreement shall be given in accordance with Section 11.04 of the Indenture.  The address for such purpose of (i) the Vehicle Trust shall be c/o BNY Mellon Trust of Delaware, 100 White Clay Center, Suite 102, P.O. Box 6995, Newark, DE 19711; (ii) BMW LP shall be 300 Chestnut Ridge Road, Woodcliff Lake, NJ 07677 (telecopier no. (201) 307-9286), Attention: General Counsel; and (iii) the Transferor shall be 300 Chestnut Ridge Road, Woodcliff Lake, NJ 07677 (telecopier no. (201) 307-9286), Attention: General Counsel.

 

  

6

  

Section 3.09.      Series Disclaimer and Acknowledgment.  The parties hereto acknowledge and agree that the Vehicle Trust is organized in series pursuant to Section 3804(a) and 3806(b)(2) of the Statutory Trust Statute.  As such, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to each series of the Vehicle Trust shall be enforceable against the assets of such series of the Vehicle Trust only, and not against the assets of the Vehicle Trust generally or the assets of any other series of the Vehicle Trust or against the Trustee of the Vehicle Trust.  There may be several series of the Vehicle Trust created pursuant to the Vehicle Trust Agreement.

 

[SIGNATURE PAGE FOLLOWS]

  

7

  

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

 

FINANCIAL SERVICES VEHICLE TRUST, with respect to the 20[__]-[__] SUBI

 

	
  

	
By:

	
BNY MELLON TRUST OF DELAWARE, not in its individual capacity but solely as Trustee

 

By: ________________________________

       Name:

       Title:

BMW MANUFACTURING L.P.

	
  

	
By:

	
BMW FACILITY PARTNERS, LLC, as General Partner

By: ________________________________

       Name:

       Title:

By: ________________________________

       Name:

       Title:

  

  

  

BMW AUTO LEASING LLC

By: ________________________________

       Name:

       Title:

By: ________________________________

       Name:

       Title:

BMW VEHICLE LEASE TRUST 20[__]-[__]

	
  

	
By:

	
[__________], not in its individual capacity but solely as Owner Trustee

By: ________________________________

       Name:

       Title:

[__________], not in its individual capacity but solely as Indenture Trustee

By: ________________________________

       Name:

       Title:

  

  

  

SCHEDULE A

 

Schedule of 20[__]-[__] Leases

 

 [Omitted. Copies on file with the Servicer, the Trustee and the Owner Trustee.]

 

 

A-1Exhibit 4.1

EXECUTION
COPY

AMENDMENT NO. 3

Dated as of
December 5, 2012

to

CREDIT AGREEMENT

Dated as of June
1, 2007

                    THIS
AMENDMENT NO. 3 (“Amendment”) is made as of December 5, 2012 by and
among Scholastic Corporation (the “Holding Company”), Scholastic Inc.
(the “Operating Company”; the Holding Company and the Operating Company
are, collectively, the “Borrowers” and, individually, each a “Borrower”),
the financial institutions listed on the signature pages hereof and JPMorgan
Chase Bank, N.A., as Administrative Agent (the “Agent”), under that
certain Credit Agreement dated as of June 1, 2007 and as amended to date by and among the Borrowers, the financial
institutions party thereto (the “Lenders”) and the Agent (the “Credit
Agreement”). Capitalized terms used herein and not otherwise defined herein
shall have the respective meanings given to them in the Credit Agreement.

                    WHEREAS,
the Borrowers, the Lenders party hereto and the Agent have agreed to amend the
Credit Agreement on the terms and conditions set forth herein;

                    NOW,
THEREFORE, in consideration of the premises set forth above, the terms and
conditions contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Borrowers, the
Lenders party hereto and the Agent have agreed to the following amendments to
the Credit Agreement.

                    1.
Amendments to Credit Agreement. Effective as of the date of satisfaction
of the conditions precedent set forth in Section 3 below (the “Amendment
Effective Date”), the Credit Agreement is hereby amended as follows:

                    (a)
Branch Banking & Trust Company, Capital One, National Association, HSBC
Bank USA, National Association and HSBC Bank plc are hereby designated as the
documentation agents, Bank of America, N.A. and Wells Fargo Bank, National
Association shall continue as syndication agents and Fifth Third Bank is hereby
designated as a syndication agent, in each case for the credit facility
evidenced by the Credit Agreement. Accordingly, the cover page of the Credit
Agreement and the introductory paragraph to the Credit Agreement are hereby
amended to (i) delete the references to SunTrust Bank and The Royal Bank of
Scotland plc as documentation agents and to replace such references with Branch
Banking & Trust Company, Capital One, National Association, HSBC Bank USA,
National Association and HSBC Bank plc as documentation agents and (ii) add a
reference to Fifth Third Bank as a syndication agent.

                    (b)
Section 1.01 of the Credit Agreement is hereby amended to insert the
following definitions in the appropriate alphabetical order:

                              “Amendment No.
3 Effective Date” means December 5, 2012.

	
  

 	
  

 
	
  

 	
           “FATCA”
 means Sections 1471 through 1474 of the Code, as of the date of this
 Agreement (or any amended or successor version that is substantively
 comparable and not materially more onerous to comply with), any current or
 future regulations or official interpretations thereof and any agreement
 entered into pursuant to Section 1471(b)(1) of the Code.

 

                    (c)
The aggregate Revolving Credit Commitments are hereby increased to
$425,000,000. The definition of “Revolving Credit Commitment” appearing in Section
1.01 of the Credit Agreement is hereby amended to delete the final sentence
thereof and to replace such sentence with the following sentence:

	
  

 	
  

 
	
  

 	
           “On
 the Amendment No. 3 Effective Date, the aggregate Revolving Credit
 Commitments of the Lenders is $425,000,000.”

 

                    (d)
The definition of “Termination Date” appearing in Section 1.01 of the
Credit Agreement is hereby amended to delete the reference to “June 1, 2014”
appearing therein and replace it with a reference to “December 5, 2017”.

                    (e)
Section 1.03 of the Credit Agreement is hereby amended to insert the
phrase “and (ii) without giving effect to any treatment of Indebtedness in
respect of convertible debt instruments under Accounting Standards Codification
470-20 (or any other Accounting Standards Codification or Financial Accounting
Standard having a similar result or effect) to value any such Indebtedness in a
reduced or bifurcated manner as described therein, and such Indebtedness shall
at all times be valued at the full stated principal amount thereof” immediately
before the period appearing at the end of the last sentence thereof.

                    (f)
Section 2.11(a) of the Credit Agreement is hereby amended to (x) insert
the parenthetical “(which term, solely for purposes of this Section 2.11(a),
includes the Agent)” immediately after the words “there shall be any increase
in the cost to any Lender” appearing therein and (y) insert the parenthetical
“(or, with respect to changes in tax law, Advances)” immediately after the
reference to “Eurodollar Rate Advances or LIBO Rate Advances” appearing
therein.

                    (g)
Section 2.14(a) of the Credit Agreement is hereby amended to (x) insert
a reference to “assessments, fees,” immediately after each reference to “taxes,
levies, imposts, deductions,” appearing therein, (y) insert a reference to
“(i)” immediately after the reference to “excluding, in the case of each
Lender and the Agent,” appearing therein and (z) insert the phrase “, and (ii)
any U.S. federal withholding taxes imposed by FATCA” immediately after the
reference to “by the jurisdiction of such Lender’s Applicable Lending Office or
any political subdivision thereof” appearing therein.

                    (h)
Section 2.14(e) of the Credit Agreement is hereby amended to delete the
word “form” appearing after the words “resulting in exemption” therein and
replace such word with the word “from”.

                    (i)
Section 2.14 of the Credit Agreement is hereby amended to insert the
following as a new clause (h) thereof:

	
  

 	
  

 
	
  

 	
                     “(h)
 Each Lender shall severally indemnify the Agent for any taxes, duties,
 levies, imposts, deductions, assessments, fees, charges or withholdings, and
 any and all liabilities with respect to the foregoing (but, in the case of
 any Taxes or Other Taxes, only to the extent that the Borrowers have not
 already indemnified the Agent for such Taxes or Other Taxes and without
 limiting the obligation of the Borrowers to do so) attributable to such
 Lender that are paid or payable by the Agent in connection with the 

 

2

	
  

 	
  

 
	
  

 	
 Agreement or any Note
 and any reasonable expenses arising therefrom or with respect thereto,
 whether or not such amounts were correctly or legally imposed or asserted by
 the relevant governmental authority. The indemnity under this Section 2.14(h)
 shall be paid within 30 days after the Agent delivers to the applicable
 Lender a certificate stating the amount so paid or payable by the Agent. Such
 certificate shall be conclusive of the amount so paid or payable absent
 manifest error.”

 

                    (j)
Section 2.18(a) of the Credit Agreement is hereby amended to delete the
reference to “$475,000,000” appearing therein and replace it with a reference
to “$575,000,000”.

                    (k)
Section 5.02(b) of the Credit Agreement is hereby amended to (x) insert
a reference to “(A)” immediately after the reference to “(i)” appearing therein
and (y) insert the phrase “and (B) sales, transfers and dispositions of assets
by either Borrower or any Subsidiary to any other Borrower or Subsidiary”
immediately before the comma appearing at the end of clause (i) thereof.

                    (l)
Section 5.02(e) of the Credit Agreement is hereby amended to delete the
reference to “during the remaining term of this Agreement” appearing in clause
(iv) thereof and replace it with a reference to “at such time”.

                    (m)
Section 5.02(f) of the Credit Agreement is hereby amended to (x) insert
a reference to “(i)” immediately after the reference to “other than” appearing
therein and (y) insert the phrase “and (ii) transactions between or among the
Borrowers and their wholly-owned Subsidiaries not involving any other
Affiliate” immediately before the period appearing at the end thereof.

                    (n)
The Commitment Schedule to the Credit Agreement is hereby replaced in its
entirety with the Commitment Schedule attached hereto as Annex A.

                    2.
Departing Lenders. The parties hereto hereby acknowledge and agree that:

                    (a)
Each of Deutsche Bank AG New York Branch and TD Bank, N.A. (each a “Departing
Lender” and collectively the “Departing Lenders”) is entering into
this Amendment solely to evidence its exit from the Credit Agreement and shall
have absolutely no obligation hereunder. Upon the effectiveness hereof and the
payment described in Section 2(c)(iii), each Departing Lender shall no longer
(i) constitute a “Lender” for all purposes under the Loan Documents, (ii) be a
party to the Credit Agreement and (iii) have any obligations under any of the
Loan Documents, in each case, without further action required on the part of
any Person; and

                    (b)
upon the effectiveness hereof: (i) the Agent shall be entitled to make such
reallocations, sales, assignments or other relevant actions in respect of each
Lender’s Credit Exposure, if any, under the Credit Agreement as it deems
necessary to reflect the rights and obligations of the Lenders (including the
Departing Lenders), (ii) each Departing Lender’s “Commitment” under the Credit
Agreement shall be terminated, (iii) each Departing Lender shall have received
payment in full in immediately available funds of all of its Advances, all
interest thereon and all other amounts payable to it under the Credit
Agreement, (iv) each Departing Lender shall not be a Lender hereunder as
evidenced by its execution and delivery of its signature page hereto and (v)
the defined term “Lenders” in the Credit Agreement shall exclude the Departing
Lenders; provided, however, that, as described in Section 8.04(d)
of the Credit Agreement, each Departing Lender shall continue to have the
benefit of Sections 2.11, 2.14 and 8.04 of the Credit Agreement.

                    3.
Conditions of Effectiveness. The effectiveness of this Amendment is
subject to the conditions precedent that (A) the Agent shall have received (i)
counterparts of this Amendment duly 

3

executed by the
Borrowers, the Lenders (including the Departing Lenders) and the Agent, (ii)
from the Borrowers, for the account of each Lender (other than any Departing
Lender) that executes and delivers its counterpart hereto as and by such time
as is requested by the Agent, an amendment fee in an amount equal to 0.30% of
the sum of such Lender’s Revolving Credit Commitment as of the date hereof, and
(iii) from the Borrowers, payment and/or reimbursement of the Agent’s and its
affiliates’ fees and reasonable out-of-pocket expenses (including reasonable
legal fees and expenses) in connection with this Amendment and (B) each Departing
Lender shall have received the payment owing to it as described in Section
2(c)(iii) above.

                    4.
Representations and Warranties of the Borrowers. Each Borrower hereby
represents and warrants as follows:

                    (a)
This Amendment and the Credit Agreement as amended hereby constitute legal,
valid and binding obligations of such Borrower and are enforceable against such
Borrower in accordance with their terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors’
rights generally and subject to general principles of equity, regardless of
whether considered in a proceeding in equity or at law.

                    (b)
As of the date hereof and giving effect to the terms of this Amendment, (i)
there exists no Default and (ii) the representations and warranties contained
in Section 4.01 of the Credit Agreement (excluding the representation
and warranty contained in Section 4.01(f)(ii)), as amended hereby, are
true and correct; provided that the Lenders hereby acknowledge that an
updated list of all Subsidiaries of each of the Borrowers (referenced in Section
4.01(i) of the Credit Agreement) was provided to the Lenders on December 3,
2012.

                    5.
Reference to and Effect on the Credit Agreement.

                    (a)
Upon the effectiveness hereof, each reference to the Credit Agreement in the
Credit Agreement or any other Loan Document shall mean and be a reference to
the Credit Agreement as amended hereby.

                    (b)
Except as specifically amended above, the Credit Agreement and all other
documents, instruments and agreements executed and/or delivered in connection
therewith shall remain in full force and effect and are hereby ratified and
confirmed.

                    (c)
The execution, delivery and effectiveness of this Amendment shall not operate
as a waiver of any right, power or remedy of the Agent or the Lenders, nor
constitute a waiver of any provision of the Credit Agreement or any other documents,
instruments and agreements executed and/or delivered in connection therewith.

                    6.
Governing Law. This Amendment shall be construed in accordance with and
governed by the law of the State of New York.

                    7.
Headings. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

4

                    8.
Counterparts. This Amendment may be executed by one or more of the
parties hereto on any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument. Signatures delivered by facsimile or PDF shall have the same force
and effect as manual signatures delivered in person.

[Signature Pages
Follow]

5

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

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SCHOLASTIC CORPORATION,

 
	
  

 	
 as a Borrower

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
 /s/ Gil A. Dickoff

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
 Gil A. Dickoff

 	
  

 
	
  

 	
 Title:

 	
 Senior Vice President and Treasurer

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SCHOLASTIC INC.,

 
	
  

 	
 as a Borrower

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
 /s/ Gil A. Dickoff

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
 Gil A. Dickoff

 	
  

 
	
  

 	
 Title:

 	
 Senior Vice President and Treasurer

 

Signature Page to
Amendment No. 3

Scholastic Corporation and Scholastic Inc.

Credit Agreement dated as of June 1, 2007

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 JPMORGAN CHASE BANK, N.A.,

 
	
  

 	
 individually as a Lender, as an Issuing Bank, as

 Swingline Lender and as Agent

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
 /s/ Devin Roccisano

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
 Devin Roccisano

 	
  

 
	
  

 	
 Title:

 	
 Vice President

 

Signature Page to
Amendment No. 3

Scholastic Corporation and Scholastic Inc.

Credit Agreement dated as of June 1, 2007

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 BANK OF AMERICA, N.A., individually as a Lender

 and as an Issuing Bank

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
 /s/ Jana L. Baker

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
 Jana L. Baker

 	
  

 
	
  

 	
 Title:

 	
 Vice President

 

Signature Page to
Amendment No. 3

Scholastic Corporation and Scholastic Inc.

Credit Agreement dated as of June 1, 2007

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 BRANCH BANKING & TRUST COMPANY

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
 /s/ Anne C. Grady

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
 Anne C. Grady

 	
  

 
	
  

 	
 Title:

 	
 Vice President

 

Signature Page to
Amendment No. 3

Scholastic Corporation and Scholastic Inc.

Credit Agreement dated as of June 1, 2007

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WELLS FARGO BANK, NATIONAL ASSOCIATION

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
 /s/ William A. DeMilt, Jr.

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
 William A. DeMilt, Jr.

 	
  

 
	
  

 	
 Title:

 	
 Senior Vice President

 

Signature Page to
Amendment No. 3

Scholastic Corporation and Scholastic Inc.

Credit Agreement dated as of June 1, 2007

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 COMMERCE BANK

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
 /s/ Joe McCaddon

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
 Joe McCaddon

 	
  

 
	
  

 	
 Title:

 	
 Senior Vice President

 

Signature Page to
Amendment No. 3

Scholastic Corporation and Scholastic Inc.

Credit Agreement dated as of June 1, 2007

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 HSBC BANK USA, NATIONAL ASSOCIATION

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
 /s/ Robert H. Rogers

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
 Robert H. Rogers

 	
  

 
	
  

 	
 Title:

 	
 Senior Relationship Manager

 

Signature Page to
Amendment No. 3

Scholastic Corporation and Scholastic Inc.

Credit Agreement dated as of June 1, 2007

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 THE GOVERNOR AND COMPANY OF THE BANK

 OF IRELAND

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
 /s/ Padraig Rushe

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
 Padraig Rushe

 	
  

 
	
  

 	
 Title:

 	
 Authorised Signatory

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
 /s/ Wendy Hobson

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
 Wendy Hobson

 	
  

 
	
  

 	
 Title:

 	
 Authorised Signatory

 

Signature Page to
Amendment No. 3

Scholastic Corporation and Scholastic Inc.

Credit Agreement dated as of June 1, 2007

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF NEW YORK MELLON

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
 /s/ Thomas J. Tarasovich, Jr.

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
 Thomas J. Tarasovich, Jr.

 	
  

 
	
  

 	
 Title:

 	
 Vice President

 

Signature Page to
Amendment No. 3

Scholastic Corporation and Scholastic Inc.

Credit Agreement dated as of June 1, 2007

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CAPITAL ONE, NATIONAL ASSOCIATION

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
 /s/ Priti Capoor-Savage

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
 Priti Capoor-Savage

 	
  

 
	
  

 	
 Title:

 	
 Senior Vice President

 

Signature Page to
Amendment No. 3

Scholastic Corporation and Scholastic Inc.

Credit Agreement dated as of June 1, 2007

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 FIFTH THIRD BANK

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
 /s/ Jordan Fragiacomo

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
 Jordan Fragiacomo

 	
  

 
	
  

 	
 Title:

 	
 Vice President

 

Signature Page to
Amendment No. 3

Scholastic Corporation and Scholastic Inc.

Credit Agreement dated as of June 1, 2007

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 HSBC BANK plc

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
 /s/ Mark Harris

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
 Mark Harris

 	
  

 
	
  

 	
 Title:

 	
 Head of Midlands Corporate Banking Centre

 

Signature Page to
Amendment No. 3

Scholastic Corporation and Scholastic Inc.

Credit Agreement dated as of June 1, 2007

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 The undersigned Departing Lender hereby acknowledges
 and agrees that, from and after the Amendment Effective Date, it is no longer
 a party to the Credit Agreement

 
	
  

 	
  

 
	
  

 	
 DEUTSCHE BANK AG NEW YORK BRANCH

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
 /s/ Yvonne Tilden

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
 Yvonne Tilden

 	
  

 
	
  

 	
 Title:

 	
 Director

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
 /s/ Andreas Neumeier

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
 Andreas Neumeier

 	
  

 
	
  

 	
 Title:

 	
 Managing Director

 

Signature Page to
Amendment No. 3

Scholastic Corporation and Scholastic Inc.

Credit Agreement dated as of June 1, 2007

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 The undersigned Departing Lender hereby acknowledges
 and agrees that, from and after the Amendment Effective Date, it is no longer
 a party to the Credit Agreement

 
	
  

 	
  

 
	
  

 	
 TD BANK, N.A.

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
 /s/ Shivani Agarwal

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
 Shivani Agarwal

 	
  

 
	
  

 	
 Title:

 	
 Senior Vice President

 

Signature Page to
Amendment No. 3

Scholastic Corporation and Scholastic Inc.

Credit Agreement dated as of June 1, 2007

Annex A 

COMMITMENTS

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Name of Initial Lender

 	
  

 	
 Revolving Credit

 Commitment

 	
  

 
	

 

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 JPMorgan Chase Bank, N.A.

 	
  

 	
 $

 	
 68,750,000

 	
  

 
	
 Bank of America, N.A.

 	
  

 	
 $

 	
 68,750,000

 	
  

 
	
 Fifth Third Bank

 	
  

 	
 $

 	
 42,500,000

 	
  

 
	
 Wells Fargo Bank, National Association

 	
  

 	
 $

 	
 42,500,000

 	
  

 
	
 Branch Banking & Trust Company

 	
  

 	
 $

 	
 42,500,000

 	
  

 
	
 Capital One, National Association

 	
  

 	
 $

 	
 42,500,000

 	
  

 
	
 HSBC Bank USA, National Association

 	
  

 	
 $

 	
 33,500,000

 	
  

 
	
 HSBC Bank plc

 	
  

 	
 $

 	
 9,000,000

 	
  

 
	
 Commerce Bank

 	
  

 	
 $

 	
 25,000,000

 	
  

 
	
 The Bank of New York Mellon

 	
  

 	
 $

 	
 25,000,000

 	
  

 
	
 The Governor and Company of the Bank of Ireland

 	
  

 	
 $

 	
 25,000,000

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Total

 	
  

 	
 $

 	
 425,000,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00215-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00215-of-00352.parquet"}]]