Document:

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                                                                   Exhibit 10.15

                               IWO HOLDINGS, INC.
                              STOCK INCENTIVE PLAN
                          (AS AMENDED ON MAY 31, 2001)

   1. Establishment and Purpose of the Plan. This Management Stock Incentive
Plan (the "Plan") is established by IWO Holdings, Inc., a Delaware corporation
("Holdings"), as of December 20, 1999. The Plan is designed to enable Holdings
to attract, retain and motivate directors, members of the management and
certain other officers and key employees of Holdings and its subsidiaries, by
providing for or increasing their proprietary interest in Holdings. The Plan
provides for the grant of options ("Options") that qualify as incentive stock
options ("Incentive Stock Options") under Section 422 of the Internal Revenue
Code of 1986, as amended (the "Code"), as well as Options that do not so
qualify ("Non-Qualified Options"), for the grant of stock appreciation rights
("Stock Appreciation Rights") and for the sale or grant of restricted stock
("Restricted Stock").

   2. Stock Subject to Plan. The number of shares of stock that may be subject
to Options or Stock Appreciation Rights granted hereunder plus the number of
shares of stock that may be granted or sold as Restricted Stock hereunder shall
not in the aggregate exceed 2,500,000.0000 shares of Holdings' Class B Common
Stock (the "Shares"), subject to adjustment under Section 13 hereof; provided
further that the number of Shares that a Participant (as hereinafter defined)
may receive pursuant to the Plan shall in no event exceed 750,000.0000 in any
year. The Shares that may be subject to Options granted and Restricted Stock
sold or granted under the Plan may be authorized and unissued Shares or Shares
reacquired by Holdings and held as treasury stock.

   Shares that are subject to the unexercised portions of any Options that
expire, terminate or are canceled, and Shares that are subject to any Stock
Appreciation Rights that expire, terminated or are canceled, and Shares of
Restricted Stock that are reacquired by Holdings pursuant to the restrictions
thereon, shall again be available for the grant of Options or Stock
Appreciation Rights and the sale or grant of Restricted Stock under the Plan.
If a Stock Appreciation Right is exercised, any Option or portion thereof that
is surrendered in connection with such exercise shall terminate and the Shares
theretofore subject to the Option or portion thereof shall not be available for
further use under the Plan.

   3. Shares Subject to Certificate of Incorporation. All Shares issuable under
Options or Stock Appreciation Rights and all Shares of Restricted Stock sold or
granted pursuant to this Plan shall be subject to the terms and restrictions
contained in the Certificate of Incorporation of Holdings. A copy of the
Certificate of Incorporation shall be delivered to the recipient of an Option,
Stock Appreciation Right or Restricted Stock at the time of grant or issuance.

   4. Administration of the Plan. The Plan shall be administered by a committee
(the "Committee") appointed by the Board of Directors (the "Board") of
Holdings. If no persons are a designated by the Board to serve on the
Committee, the Plan shall be administered by the Board and all references
herein to the Committee shall refer to the Board. The Board shall have the
discretion to add, remove or replace members of the Committee, and shall have
the sole authority to fill vacancies on the Committee.

   All actions of the Committee shall be authorized by a majority vote thereof
at a duly called meeting. The Committee shall have the sole authority, in its
absolute discretion, to adopt, amend, and rescind such rules and regulations
as, in its opinion, may be advisable in the administration of the Plan, to
construe and interpret the Plan, the rules and regulations, and the agreements
and other instruments evidencing Options and Stock Appreciation Rights granted
and Restricted Stock sold or granted under the Plan, and to make all other
determinations deemed necessary or advisable for the administration of the
Plan. All decisions, determinations, and interpretations of the Committee shall
be final and conclusive upon the Participants, as hereinafter defined

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provided such determinations and interpretations shall not adversely effect the
terms of any outstanding Option without the consent of the holder thereof.
Notwithstanding the foregoing, any dispute arising under any Agreement (as
defined below) shall be resolved pursuant to the dispute resolution mechanism
set forth in such Agreement.

   Subject to the express provisions of the Plan, the Committee shall determine
the number of Shares subject to grants or sales and the terms thereof,
including the provisions relating to the exercisability of Options and Stock
Appreciation Rights, lapse and non-lapse restrictions upon the Shares obtained
or obtainable under the Plan and the termination and/or forfeiture of Options
and Stock Appreciation Rights and Restricted Stock under the Plan. The terms
upon which Options and Stock Appreciation Rights are granted and Restricted
Stock is sold or granted shall be evidenced by a written agreement, executed by
Holdings and the Participant (each, an "Agreement"), containing such terms and
conditions as may be approved by the Committee; provided that such terms and
conditions are not inconsistent with the express conditions of the Plan.

   5. Eligibility. Persons who shall be eligible for grants of Options or Stock
Appreciation Rights or sales or grants of Restricted Stock hereunder shall be
those directors, officers and employees of Holdings or a subsidiary of Holdings
who are members of a select group of directors, management and other key
employees that the Committee may from time to time designate to participate
under the Plan ("Participants") through grants of Non-Qualified Options,
Incentive Stock Options and, if applicable, Stock Appreciation Rights, and/or
through sales or grants of Restricted Stock.

   6. Terms and Conditions of Options. No Incentive Stock Option shall be
granted for a term of more than ten years and no Non-Qualified Option shall be
granted for a term of more than ten (10) years and thirty (30) days. Options
may, in the discretion of the Committee, be granted with associated Stock
Appreciation Rights or be amended so as to provide for associated Stock
Appreciation Rights. The Agreement may contain such other terms, provisions,
and conditions as may be determined by the Committee as long as such terms,
conditions and provisions are not inconsistent with the Plan. The Committee
shall designate as such those Options intended to be eligible to qualify and be
treated as Incentive Stock Options and, correspondingly, those Options not
intended to be eligible to qualify and be treated as Incentive Stock Options.

   7. Exercise Price of Options. The exercise price for each Non-Qualified
Option granted hereunder shall be set forth in the Agreement. For so long as
required under Section 422 of the Code and the regulations promulgated
thereunder (or any successor statute or rules), the exercise price of any
Option intended to be eligible to qualify and be treated as an Incentive Stock
Option shall not be less than the fair market value of the Shares on the date
such Incentive Stock Option is granted, except that if such Incentive Stock
Option is granted to a Participant who on the date of grant is treated under
Section 424(d) of the Code as owning stock (not including stock purchasable
under outstanding options) possessing more than ten percent of the total
combined voting power of all classes of Holdings' stock, the exercise price
shall not be less than one hundred ten percent (110%) of the fair market value
of the Shares on the date such Incentive Stock Option is granted.

   Unless otherwise provided by the Agreement, the fair market value of Shares
for the purposes of this Plan shall be determined by the Board, whose valuation
shall be binding upon each Optionee.

   Payment for Shares purchased upon exercise of any Option granted hereunder
shall be in cash at the time of exercise, except that, if either the Agreement
so provides or the Committee so permits, and if Holdings is not then prohibited
from doing so, such payment may be made in whole or in part with surrendered or
withheld shares of stock of the same class as the stock then subject to the
Option provided that Optionee has owned such shares for at least six (6)
months. The Committee also may on an individual basis permit payment or agree
to permit payment by such other alternative means as may be lawful, including
by delivery of an execute exercise notice together with irrevocable
instructions to a broker promptly to deliver to Holdings the amount of sale or
loan proceeds required to pay the exercise price.

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   8. Non-transferability. Unless provided otherwise in the Agreement, any
Option granted under this Plan shall by its terms be nontransferable by the
Participant other than by will or the laws of descent and distribution (in
which case such descendant or beneficiary shall be subject to all terms of the
Plan applicable to Participants) and is exercisable during the Participant's
lifetime only by the Participant or by the Participant's guardian or legal
representative.

   9. Incentive Stock Options. The provisions of the Plan are intended to
satisfy the requirements set forth in Section 422 of the Code and the
regulations promulgated thereunder (including the aggregate fair market value
limits set forth in Section 422(d) of the Code) with respect of Incentive Stock
Options granted under the Plan. For so long as required under Section 422 of
the Code and the regulations promulgated thereunder (or any successor statute
or rules), during the term of the Plan, the aggregate fair market value of the
Shares with respect to which Incentive Stock Options are first exercisable by a
Participant during any calendar year shall not exceed $100,000. For the purpose
of this Section 9, the fair market value of the Shares shall be determined at
the time the Incentive Stock Option is granted.

   10. Stock Appreciation Rights. The Committee may, under such terms and
conditions as it deems appropriate, grant to any Participant selected by the
Committee Stock Appreciation Rights, which may or may not be associated with
Options. Upon exercise of a Stock Appreciation Right, the Participant shall be
entitled to receive payment of an amount equal to the excess of the fair market
value, as defined by the Committee, of the underlying Shares on the date of
exercise over the Stock Appreciation Right's exercise price. Such payment may
be made in additional Shares valued at their fair market value on the date of
exercise or in cash, or partly in Shares and partly in cash, as the Committee
may designate. The Committee may require that any Stock Appreciation Right
shall be subject to the condition that the Committee may at any time in its
absolute discretion not allow the exercise of such Stock Appreciation Right.

   11. Restricted Stock. The Committee may sell or grant Restricted Stock under
the Plan (either independently or in connection with the exercise of Options or
Stock Appreciation Rights under the Plan) to Participants selected by the
Committee. The Committee shall in each case terminate the number of Shares of
Restricted Stock to be sold or granted, the price at which such Shares are
sold, if applicable, and the terms and duration of the restrictions to be
imposed upon those Shares.

   12. Investment Representation. Each Agreement may contain an agreement that,
upon demand by the Committee for such a representation, the Optionee shall
deliver to the Committee at the time of any exercise of an Option a written
representation that the Shares to be acquired upon such exercise are to be
acquired for investment and not for resale or with a view to distribution
thereof. Upon such demand, delivery of such representation prior to the
delivery of any Shares issued upon exercise of an Option and prior to the
expiration of the option period shall be a condition precedent to the right of
the optionee or such other person to purchase any Shares.

   13. Adjustments. In the event of any one or more reorganizations,
recapitalizations, stock splits, reverse stock splits, stock dividends,
extraordinary dividends, or distributions, or similar events, an appropriate
adjustment shall be made in the number, exercise or sale price and/or type of
shares or securities for which Options or Stock Appreciation Rights may
thereafter be granted and Restricted Stock may thereafter be sold or granted
under the Plan. The Committee also shall designate the appropriate changes that
shall be made in Options or Stock Appreciation Rights, or rights to purchase
Restricted Stock under the Plan, so as to preserve the value of any such
Options, Stock Appreciation Rights or Restricted Stock. Any such adjustment in
outstanding Options shall be made without changing the aggregate exercise price
applicable to the unexercised portions of such Options. Any such adjustments in
outstanding rights to purchase Restricted Stock shall be made without changing
the aggregate purchase price of such Restricted Stock.

   14. Duration of Plan. Options may not be granted and Restricted Stock may
not be sold or granted under the Plan after December 20, 2009.

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   15. Amendment and Termination of the Plan. The Committee may amend the Plan
or any Agreement issued hereunder to the extent necessary for any Option or
Stock Appreciation Right granted or Restricted Stock sold or granted under the
Plan to comply with applicable tax or securities laws. If the Board determines
that the approval of such action by the stockholders of Holdings is advisable
or necessary for compliance with applicable securities law, tax law, stock
exchange requirement or other applicable federal or state law, no such action
of the Board or the Committee shall be permitted unless taken with or ratified
by such approval.

   No Option or Stock Appreciation Right may be granted or Restricted Stock
sold or granted during any suspension of the Plan or after the termination of
the Plan. No amendment, suspension or termination of the Plan or of any
Agreement issued hereunder shall, without the consent of the affected holder of
such Option or Stock Appreciation Right or Restricted Stock, adversely alter or
otherwise impair any rights or obligations in any Option or Stock Appreciation
Right or Restricted Stock theretofore granted or sold to such holder under the
Plan.

   16. Nature of Plan. This Plan is intended to qualify as a compensatory
benefit plan within the meaning of Rule 701 under the Act. This Plan is
intended to constitute an unfunded arrangement for a select group of directors,
management and other key employees.

   17. Cancellation of Options. Any Option granted under the Plan may be
canceled at any time with the consent of the holder and a new Option may be
granted to such holder in lieu thereof.

   18. Withholding Taxes. Whenever Shares are to be issued with respect to the
exercise of Options or amounts are to be paid or income earned with respect to
Stock Appreciation Rights or Restricted Stock under the Plan, the Committee in
its discretion may require the Participant to remit to Holdings, prior to the
delivery of any certificate or certificates for such Shares or the payment of
any such amounts, all or any part of the amount determined in the Committee's
discretion to be sufficient to satisfy federal, state and local withholding tax
obligations (the "Withholding Obligation") that Holdings or its counsel
determines may arise with respect to such exercise, issuance or payment.
Pursuant to a procedure established by the Committee or as set forth in the
Agreement, the Participant may (i) request Holdings to withhold delivery of a
sufficient number of Shares or a sufficient amount of the Participant's
compensation or (ii) deliver a sufficient number of previously-issued Shares,
to satisfy the Withholding Obligation, which shares have been owned by the
Optionee for at least six (6) months with an aggregate Fair Market Value equal
to the minimum statutory amount of the federal, state, local and other taxes
required to be withheld.

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                                                                     EXHIBIT 4.2

                     AMENDED AND RESTATED PLEDGE AGREEMENT
                     -------------------------------------

     THIS AMENDED AND RESTATED PLEDGE AGREEMENT dated as of September 30, 1998
(as amended and modified, the "Pledge Agreement" or this "Agreement") amends and
                               ----------------           ---------
restates that certain Pledge Agreement dated as of June 9, 1998 by and among the
Administrative Agent and the Pledgors identified therein, and is made by those
parties identified as "Pledgors" on the signature pages and such other parties
as may become Pledgors hereunder after the date hereof (the "Pledgors") in favor
                                                             --------
of NATIONSBANK, N.A., as Administrative Agent (in such capacity, the
"Administrative Agent") for the Lenders under the Credit Agreement described
---------------------
below and any Affiliates of Lenders which provide interest rate or currency
protection agreements as hereafter provided (collectively, the "Lenders").
                                                                -------

                                   WITNESSETH

     WHEREAS, the Lenders have severally agreed to make loans and extensions of
credit to School Specialty, Inc., a Delaware corporation (the "Borrower") upon
                                                               --------
the terms and conditions provided in the terms of that Amended and Restated
Credit Agreement dated as of the date hereof (as amended and modified, the
"Credit Agreement") among the Borrower, the Guarantors and Lenders identified
-----------------
therein and NationsBank, N.A., as Administrative Agent;

     WHEREAS, it is a condition precedent to the effectiveness of the Credit
Agreement and the obligations of the Lenders to make their respective loans and
extensions of credit to the Borrower thereunder that the Credit Parties shall
have executed and delivered this Pledge Agreement to the Administrative Agent
for the ratable benefit of the Lenders;

     NOW, THEREFORE, in consideration of the premises and to induce the
Administrative Agent and the Lenders to enter into the Credit Agreement and to
induce the Lenders to make their respective loans and extensions of credit
thereunder, the Pledgors hereby agree with the Administrative Agent, for the
ratable benefit of the Lenders, as follows:

     1.  Defined Terms.  (a) Unless otherwise defined herein, terms defined in
         -------------
the Credit Agreement and used herein shall have the meanings given to them in
the Credit Agreement.  For purposes of this Agreement, the term "Lender" shall
                                                                 ------
include any Affiliate of any Lender which has entered into a Hedging Agreement
with a Credit Party to the extent permitted by the Credit Agreement.

     (b) The following terms shall have the following meanings:

          "Agreement":  this Pledge Agreement, as the same may be amended,
           ---------
     modified or otherwise supplemented from time to time.

          "Code":  the Uniform Commercial Code from time to time in effect in
           ----
     the State of New York.

          "Collateral":  the Pledged Stock and all Proceeds thereof.
           ----------

          "Collateral Account":  any account established to hold money Proceeds,
           ------------------
     maintained under the sole dominion and control of the Administrative Agent,
     subject to

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     withdrawal by the Administrative Agent for the account of the Lenders as
     provided in Section 8(a).

          "Issuers":  the collective reference to the companies identified on
           -------
     Schedule 1 attached hereto as the issuers of the Pledged Stock;
     ----------
     individually, each an "Issuer."

          "Pledged Stock":  the shares of capital stock or membership units, as
           -------------
     applicable, listed on Schedule 1 hereto, together with all stock
                           ----------
     certificates or membership certificates, as applicable, and all options or
     rights of any nature whatsoever that may be issued or granted by any Issuer
     to a Pledgor in respect of the Pledged Stock while this Agreement is in
     effect.

          "Proceeds":  all "proceeds" as such term is defined in Section 9-
           --------
     306(1) of the Uniform Commercial Code in effect in the State of New York on
     the date hereof and, in any event, shall include, without limitation, all
     dividends or other income from the Pledged Stock, collections thereon or
     distributions with respect thereto.

          "Secured Obligations":  the collective reference to the following:
           -------------------

               (a) All unpaid principal of and interest on (including, without
          limitation, interest accruing at the then applicable rate provided in
          the Credit Agreement after the maturity of the Loans and other
          obligations owing under the Credit Agreement and interest accruing at
          the then applicable rate provided in the Credit Agreement after the
          filing of any petition in bankruptcy, or the commencement of any
          insolvency, reorganization or like proceeding, relating to the
          Borrower, whether or not a claim for post-filing or post-petition
          interest is allowed in such proceeding) the Loans and all other
          obligations and liabilities of the Borrower to the Agent and the
          Lenders, whether direct or indirect, absolute or contingent, due or to
          become due, or now existing or hereafter incurred, which may arise
          under, out of, or in connection with, the Credit Agreement, any Notes,
          the other Credit Documents, any Hedging Agreements with a Lender or an
          Affiliate of a Lender to the extent permitted under the Credit
          Agreement or any other document made, delivered or given in connection
          therewith, in each case whether on account of principal, interest,
          reimbursement obligations, fees, indemnities, costs, expenses or
          otherwise (including, without limitation, all fees and disbursements
          of counsel to the Agent or to the Lenders that are required to be paid
          by the Borrower pursuant to the terms of the Credit Agreement, any
          other Credit Document or any Hedging Agreements with a Lender or an
          Affiliate of a Lender to the extent permitted under the Credit
          Agreement); and

               (b) the prompt payment, performance and observance by the
          Guarantors under the Credit Agreement of all obligations of the
          Guarantors thereunder and under the other Credit Documents to which
          the Guarantors are a party (including, without limitation, payment of
          their guaranty obligations under the Credit Agreement), or under any
          Hedging Agreement with a Lender or an Affiliate of a Lender to the
          extent permitted under the Credit Agreement, to which

<PAGE>

          such Guarantor is a party or any guaranty is given by it in connection
          therewith; and

               (c) All other indebtedness, liabilities and obligations of any
          kind or nature, now existing or hereafter arising, owing by the
          Pledgors to any Lender or the Administrative Agent, arising under this
          Pledge Agreement or any of the other Credit Documents, whether
          primary, secondary, direct, contingent, or joint and several; and

               (d) All liabilities and obligations, now existing or hereafter
          arising, owing by the Borrower to any Lender or any Affiliate of a
          Lender arising under Hedging Agreements with a Lender or an Affiliate
          of a Lender to the extent permitted under the Credit Agreement.

          "Securities Act":  the Securities Act of 1933, as amended.
           --------------

          (c) 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, and section and
     paragraph references are to this Agreement unless otherwise specified.

          (d) The meanings given to terms defined herein shall be equally
     applicable to both the singular and plural forms of such terms.

     2.  Pledge; Grant of Security Interest.  Each of the Pledgors hereby
         ----------------------------------
delivers to the Administrative Agent, for the ratable benefit of the Lenders,
all the Pledged Stock and hereby grants to the Administrative Agent, for the
ratable benefit of the Lenders, a first security interest in the Collateral, as
collateral security for the prompt and complete payment and performance when due
(whether at the stated maturity, by acceleration or otherwise) of the Secured
Obligations.

     3.  Stock Powers.  Concurrently with the delivery to the Administrative
         ------------
Agent of each certificate representing one or more shares of Pledged Stock to
the Administrative Agent, each of the Pledgors shall deliver an undated stock
power covering such certificate, duly executed in blank with, if the
Administrative Agent so requests, signature guaranteed.

     4.  Representations and Warranties.  Each of the Pledgors represents and
         ------------------------------
warrants that:

          (a) The shares of Pledged Stock constitute the percentage of capital
     stock or membership units, as applicable, of the Issuer set forth on
     Schedule 1.
     ----------

          (b) All the shares of the Pledged Stock have been duly and validly
     issued and are fully paid and nonassessable.

          (c) The Pledgor is the record and beneficial owner of, and has good
     and marketable title to, the Pledged Stock, free of any and all Liens or
     options in favor of, or claims of, any other Person, except the security
     interests created by this Agreement.

<PAGE>

         (d) Upon delivery to the Administrative Agent of the stock certificates
     or membership certificates, as applicable, evidencing the Pledged Stock,
     the security interest created by this Agreement will constitute a valid,
     perfected first priority security interest in the Collateral, enforceable
     in accordance with its terms against all creditors of the Pledgor and any
     Persons purporting to purchase any Collateral from the Pledgor, except as
     affected by bankruptcy, insolvency, fraudulent conveyance, reorganization,
     moratorium and other similar laws relating to or affecting creditors'
     rights generally, general equitable principles (whether considered in a
     proceeding in equity or at law) and an implied covenant of good faith and
     fair dealing.

     5.  Covenants.  Each of the Pledgors covenants and agrees with the
         ---------
Administrative Agent and the Lenders that, from and after the date of this
Agreement until this Agreement is terminated and the security interests created
hereby are released:

         (a) If the Pledgor shall, as a result of its ownership of the Pledged
     Stock, become entitled to receive or shall receive any stock certificate or
     membership certificate, as applicable (including, without limitation, any
     certificate representing a stock dividend or a distribution in connection
     with any reclassification, increase or reduction of capital or any
     certificate issued in connection with any reorganization), option or
     rights, whether in addition to, in substitution of, as a conversion of, or
     in exchange for any shares of the Pledged Stock, or otherwise in respect
     thereof, the Pledgor shall accept the same as the agent of the
     Administrative Agent and the Lenders, hold the same in trust for the
     Administrative Agent and the Lenders and deliver the same forthwith to the
     Administrative Agent in the exact form received, duly indorsed by the
     Pledgor to the Administrative Agent, if required, together with an undated
     stock power covering such certificate duly executed in blank by the Pledgor
     and with, if the Administrative Agent so requests, signature guaranteed, to
     be held by the Administrative Agent, subject to the terms hereof, as
     additional collateral security for the Secured Obligations.  Except in
     connection with any transaction permitted under Section 8.5 of the Credit
     Agreement, any sums paid upon or in respect of the Pledged Stock upon the
     liquidation or dissolution of any issuer shall be paid over to the
     Administrative Agent to be held by it hereunder as additional collateral
     security for the Secured Obligations, and in case any distribution of
     capital shall be made on or in respect of the Pledged Stock or any property
     shall be distributed upon or with respect to the Pledged Stock pursuant to
     the recapitalization or reclassification of the capital of the Issuer or
     pursuant to the reorganization thereof, the property so distributed shall
     be delivered to the Administrative Agent to be held by it hereunder as
     additional collateral security for the Secured Obligations.  If any sums of
     money or property so paid or distributed in respect of the Pledged Stock
     shall be received by the Pledgor, the Pledgor shall, until such money or
     property is paid or delivered to the Administrative Agent, hold such money
     or property in trust for the Lenders, segregated from other funds of the
     Pledgor, as additional collateral security for the Secured Obligations.

         (b) Without the prior written consent of the Administrative Agent, the
     Pledgor will not (i) vote to enable, or take any other action to permit,
     any Issuer to issue any stock or other equity securities of any nature or
     to issue any other securities convertible into or granting the right to
     purchase or exchange for any stock or equity securities of any nature

<PAGE>

     of any Issuer, (ii) sell, assign, transfer, exchange, or otherwise dispose
     of, or grant any option with respect to, the Collateral, (iii) create,
     incur or permit to exist any Lien or option in favor of, or any claim of
     any Person with respect to, any of the Collateral, or any interest therein,
     except for the security interests created by this Agreement or (iv) enter
     into any agreement or undertaking restricting the right or ability of the
     Pledgor or the Administrative Agent to sell, assign or transfer any of the
     Collateral.

          (c) The Pledgor shall maintain the security interest created by this
     Agreement as a first, perfected security interest and shall defend such
     security interest against claims and demands of all Persons whomsoever.  At
     any time and from time to time, upon the written request of the
     Administrative Agent, and at the sole expense of the Pledgor, the Pledgor
     will promptly and duly execute and deliver such further instruments and
     documents and take such further actions as the Administrative Agent may
     reasonably request for the purposes of obtaining or preserving the full
     benefits of this Agreement and of the rights and powers herein granted.  If
     any amount payable under or in connection with any of the Collateral shall
     be or become evidenced by any promissory note, other instrument or chattel
     paper, such note, instrument or chattel paper shall be immediately
     delivered to the Administrative Agent, duly endorsed in a manner
     satisfactory to the Administrative Agent, to be held as Collateral pursuant
     to this Agreement.

          (d) The Pledgor shall pay, and save the Administrative Agent and the
     Lenders harmless from, any and all liabilities with respect to, or
     resulting from any delay in paying, any and all stamp, excise, sales or
     other taxes which may be payable or determined to be payable with respect
     to any of the Collateral or in connection with any of the transactions
     contemplated by this Agreement, except for any such liabilities which
     result from the gross negligence or willful misconduct of the
     Administrative Agent.

     6.   Cash Dividends; Voting Rights.  Unless an Event of Default shall have
          -----------------------------
occurred and the Administrative Agent shall have given notice to the Pledgor of
the Administrative Agent's intent to exercise its corresponding rights pursuant
to Section 7 below, the Pledgor shall be permitted to receive all cash dividends
paid in the normal course of business of the Issuers and consistent with past
practice or otherwise to enable the partners or shareholders of the Pledgor to
pay taxes, to the extent permitted in the Credit Agreement, in respect of the
Pledged Stock and to exercise all voting and corporate rights with respect to
the Pledged Stock; provided, however, that no vote shall be cast or corporate
                   -------- --------
right exercised or other action taken which, in the Administrative Agent's
reasonable judgment, would impair the Collateral or which would be inconsistent
with or result in any violation of any provision of the Credit Agreement, this
Agreement or any other Credit Document.

     7.   Rights of the Lenders and the Administrative Agent.  (a) All money
          --------------------------------------------------
Proceeds received by the Administrative Agent hereunder shall be held by the
Administrative Agent for the benefit of the Lenders in a Collateral Account.
All Proceeds while held by the, Administrative Agent in a Collateral Account (or
by the Pledgors in trust for the Administrative Agent and the Lenders) shall
continue to be held as collateral security for all the Secured Obligations and
shall not constitute payment thereof until applied as provided in Section 8(a).

<PAGE>

     (b) At any time after an Event of Default shall have occurred and be
continuing and the Administrative Agent shall give notice of its intent to
exercise such rights to the Pledgor, (i) the Administrative Agent shall have the
right to receive any and all cash dividends paid in respect of the Pledged Stock
and make application thereof to the Secured Obligations in such order as the
Administrative Agent may determine, and (ii) all shares of the Pledged Stock
shall be registered in the name of the Administrative Agent or its nominee, and
the Administrative Agent or its nominee may thereafter exercise (A) all voting,
corporate and other rights pertaining to such shares of the Pledged Stock at any
meeting of shareholders of any Issuer or otherwise and (B) any and all rights of
conversion, exchange, subscription and any other rights, privileges or options
pertaining to such shares of the Pledged Stock as if it were the absolute owner
thereof (including, without limitation, the right to exchange at its discretion
any and all of the Pledged Stock upon the merger, consolidation, reorganization,
recapitalization or other fundamental change in the corporate structure of any
Issuer, or upon the exercise by the Pledgor or the Administrative Agent of any
right, privilege or option pertaining to such shares of the Pledged Stock, and
in connection therewith, the right to deposit and deliver any and all of the
Pledged Stock with any committee, depositary, transfer agent, registrar or other
designated agency upon such terms and conditions as the Administrative Agent may
determine), all without liability except to account for property actually
received by it, but the Administrative Agent shall have no duty to the Pledgor
to exercise any such right, privilege or option and shall not be responsible for
any failure to do so or delay in so doing.

     8.  Remedies.  (a) At any time after an Event of Default shall have
         --------
occurred, at the Administrative Agent's election, the Administrative Agent's
election, the Administrative Agent may apply all or any part of Proceeds held in
any Collateral Account in payment of the Secured Obligations in such order as
the Administrative Agent may elect.

     (b) At any time after an Event of Default shall have occurred, the
Administrative Agent, on behalf of the Lenders, may exercise, in addition to all
other rights and remedies granted in this Agreement and in any other instrument
or agreement securing, evidencing or relating to the Secured Obligations, all
rights and remedies of a secured party under the Code.  Without limiting the
generality of the foregoing, the Administrative Agent, without demand of
performance or other demand, presentment, protest, advertisement or notice of
any kind (except any notice required by law referred to below) to or upon the
Pledgor or any other Person (all and each of which demands, defenses,
advertisements and notices are hereby waived), may in such circumstances
forthwith collect, receive, appropriate and realize upon the Collateral, or any
part thereof, and/or may forthwith sell, assign, given an option or options to
purchase or otherwise dispose of and deliver the Collateral or any part thereof
(or contract to do any of the foregoing), in one or more parcels at public or
private sale or sales, in the over-the-counter market, at any exchange, broker's
board or office of the Administrative Agent or any Lender or elsewhere upon such
terms and conditions as it may deem advisable and at such prices as it may deem
best, for cash or on credit or for future delivery without assumption of any
credit risk.  The Administrative Agent or any Lender shall have the right upon
any such public sale or sales, and, to the extent permitted by law, upon any
such private sale or sales, to purchase the whole or any part of the Collateral
so sold, free of any right or equity of redemption in the Pledgor, which right
or equity of redemption is hereby waived or released.  The Administrative Agent
shall apply any Proceeds from time to time held by it and the net proceeds of
any such collection, recovery, receipt, appropriation, realization or sale,
after deducting all reasonable costs and expenses of

<PAGE>

every kind incurred in respect thereof or incidental to the care or safekeeping
of any of the Collateral or in any way relating to the Collateral or the rights
of the Administrative Agent and the Lenders hereunder, including, without
limitation, reasonable attorneys' fees and disbursements of counsel to the
Administrative Agent, to the payment in whole or in part of the Secured
Obligations, in such order as the Administrative Agent may elect, and only after
such application and after the payment by the Administrative Agent of any other
amount required by any provision of law, including, without limitation, Section
9-504(1)(c) of the Code, need the Administrative Agent account for the surplus,
if any, to the Pledgor. To the extent permitted by applicable law, the Pledgor
waives all claims, damages and demands it may acquire against the Administrative
Agent or any Lender arising out of the exercise by them of any rights hereunder.
If any notice of a proposed sale or other disposition of Collateral shall be
required by law, such notice shall be deemed reasonable and proper if given at
least 20 days before such sale or other disposition. The Pledgor shall remain
liable for any deficiency if the proceeds of any sale or other disposition of
Collateral are insufficient to pay the Secured Obligations and the fees and
disbursements of any attorneys employed by the Administrative Agent or any
Lender to collect such deficiency.

     9.  Registration Rights; Private Sales.  (a) If the Administrative Agent
         ----------------------------------
shall determine to exercise its right to sell any or all of the Pledged Stock
pursuant to Section 8 hereof, and if in the opinion of the Administrative Agent
it is necessary or advisable to have the Pledged Stock, or that portion thereof
to be sold, registered under the provisions of the Securities Act, the Pledgor
will cause the Issuer thereof to (i) execute and deliver, and cause the
directors and officers of such Issuer to execute and deliver, all such
instruments and documents, and do or cause to be done all such other acts as may
be, in the opinion of the Administrative Agent, necessary or advisable to
register the Pledged Stock, or that portion thereof to be sold, under the
provisions of the Securities Act, (ii) to use its best efforts to cause the
registration statement relating thereto to become effective and to remain
effective for a period of one year from the date of the first public offering of
the Pledged Stock, or that portion thereof to be sold, and (iii) to make all
amendments thereto and/or to the related prospectus which, in the opinion of the
Administrative Agent, are necessary or advisable, all in conformity with the
requirements of the Securities Act and the rules and regulations of the
Securities and Exchange Commission applicable thereto.  The Pledgor acknowledges
and agrees to cause the such Issuer to comply with the provisions of the
securities or "Blue Sky" laws of any and all jurisdiction which the
Administrative Agent shall designate and to make available to its security
holders, as soon as practicable, an earnings statement (which need not be
audited) which will satisfy the provisions of Section 11(a) of the Securities
Act.

     (b) The Pledgor recognizes that the Administrative Agent may be unable to
effect a public sale of any or all the Pledged Stock, by reason of certain
prohibitions contained in the Securities Act and applicable state securities
laws or otherwise, and may be compelled to resort to one or more private sales
thereof to a restricted group of purchasers which will be obligated to agree,
among other things, to acquire such securities for their own account for
investment and not with a view to the distribution or resale thereof.  The
Pledgor agrees that any such private sale may result in prices and other terms
less favorable than if such sale were a public sale and agrees that no such
private sale shall be deemed to have been made in a commercially unreasonable
manner solely because it is a private sale.  The Administrative Agent shall be
under no obligation to delay a sale of any of the Pledged Stock for the period
of time necessary to

<PAGE>

permit the Issuer thereof to register such securities for public sale under the
Securities Act, or under applicable state securities laws, even if such Issuer
agrees to do so.

     (c) The Pledgor further agrees to use its best efforts to do or cause to be
done all such other acts as may be necessary to make such sale or sales of all
or any portion of the Pledged Stock pursuant to this Section valid and binding
and in compliance with any and all other applicable Requirements of Law.  The
Pledgor further agrees that a breach of any of the covenants contained in this
Section will cause irreparable injury to the Administrative Agent and the
Lenders, that the Administrative Agent and the Lenders have no adequate remedy
at law in respect of such breach and, as a consequence, that each and every
covenant contained in this Section shall be specifically enforceable against the
Pledgor, and the Pledgor hereby waives and agrees not to assert any defenses
against an action for specific performance of such covenants except for a
defense that no Event of Default has occurred under the Credit Agreement.

     10.  Irrevocable Authorization and Instruction to Issuer.  The Pledgor
          ---------------------------------------------------
hereby authorizes and instructs each Issuer to comply with any instruction
received by it from the Administrative Agent in writing that (a) states that an
Event of Default has occurred and (b) is otherwise in accordance with the terms
of this Agreement, without any other or further instructions from the Pledgor,
and the Pledgor agrees that each Issuer shall be fully protected in so
complying.

     11.  Administrative Agent's Appointment as Attorney-in-Fact.  (a) The
          ------------------------------------------------------
Pledgor hereby irrevocably constitutes and appoints the Administrative Agent and
any officer or agent of the Administrative Agent, with full power of
substitution, as its true and lawful attorney-in-fact with fully irrevocable
power and authority in the place and stead of the Pledgor and in the name of the
Pledgor or in the Administrative Agent's own name, from time to time in the
Administrative Agent's discretion, for the purpose of carrying out the terms of
this Agreement, to take any and all appropriate action and to execute any and
all documents and instruments which may be necessary or desirable to accomplish
the purposes of this Agreement, including, without limitation, any financing
statements, endorsement, assignment or other instruments of transfer
contemplated hereunder.

     (b) The Pledgor hereby ratifies all that said attorneys shall lawfully do
or cause to be done pursuant to the power of attorney granted in Section 11(a).
All powers, authorizations and agencies contained in this Agreement are coupled
with an interest and are irrevocable until this Agreement is terminated and the
security interests created hereby are released.

     12.  Duty of Administrative Agent.  The Administrative Agent's sole duty
          ----------------------------
with respect to the custody, safekeeping and physical preservation of the
Collateral in its possession, under Section 9-207 of the Code or otherwise,
shall be to deal with it in the same manner as the Administrative Agent deals
with similar securities and property for its own account, except that the
Administrative Agent shall have no obligation to invest funds held in any
Collateral Account and may hold the same as demand deposits.  Neither the
Administrative Agent, any Lender nor any of their respective directors,
officers, employees or agents shall be liable for failure to demand, collect or
realize upon any of the Collateral or for any delay in doing so or shall be
under any obligation to sell or otherwise dispose of any Collateral upon the
request of the

<PAGE>

Pledgor or any other Person or to take any other action whatsoever with regard
to the Collateral or any part thereof except as provided herein.

     13.  Execution of Financing Statements.  Pursuant to Section 9-402 of the
          ---------------------------------
Code, the Pledgor authorizes the Administrative Agent to file financing
statements with respect to the Collateral without the signature of the Pledgor
in such form and in such filing offices as the Administrative Agent reasonably
determines appropriate to perfect the security interests of the Administrative
Agent under this Agreement.  A carbon, photographic or other reproduction of
this Agreement shall be sufficient as a financing statement for filing in any
jurisdiction.

     14.  Authority of Administrative Agent.  The Pledgor acknowledges that the
          ---------------------------------
rights and responsibilities of the Administrative Agent under this Agreement
with respect to any action taken by the Administrative Agent or the exercise or
non-exercise by the Administrative Agent of any option, voting right, request,
judgment or other right or remedy provided for herein or resulting or arising
out of this Agreement shall, as between the Administrative Agent and the
Lenders, be governed by the Credit Agreement and by such other agreements with
respect thereto as may exist from time to time among them, but, as between the
Administrative Agent and the Pledgor, the Administrative Agent shall be
conclusively presumed to be acting as agent for the Lenders with full and valid
authority so to act or refrain from acting, and neither the Pledgor nor any
Issuer shall be under any obligation, or entitlement, to make any inquiry
respecting such authority.

     15.  Notices.  All notices shall be given or made in accordance with
          -------
Section 11.1 of the Credit Agreement.

     16.  Severability.  Any provision of this Agreement which is prohibited or
          ------------
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

     17.  Amendments in Writing, No Waiver; Cumulative Remedies.  (a) None of
          -----------------------------------------------------
the terms or provisions of this Agreement may be waived, amended, supplemented
or otherwise modified except by a written instrument executed by the Pledgor and
the Administrative Agent, provided that any provision of this Agreement may be
                          --------
waived by the Administrative Agent and the Lenders in a letter or agreement
executed by the Administrative Agent or by facsimile transmission from the
Administrative Agent.

     (b) Neither the Administrative Agent nor any Lender shall by any act
(except by a written instrument pursuant to Section 17(a) hereof), delay,
indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Default or Event of Default or in any
breach of any of the terms and conditions hereof.  No failure to exercise, nor
any delay in exercising on the part of the Administrative Agent or any Lender,
any right, power or privilege hereunder shall operate as a waiver thereof.  No
single or partial exercise of any right, power or privilege hereunder shall
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege.  A waiver by the Administrative Agent or any Lender
of any right or remedy hereunder on any one occasion shall not be

<PAGE>

construed as a bar to any right or remedy which the Administrative Agent or such
Lender would otherwise have on any future occasion.

     (c) The rights and remedies herein provided are cumulative, may be
exercised singly or concurrently and are not exclusive of any other rights or
remedies provided by law.

     18.  Section Headings.  The section headings used in this Agreement are for
          ----------------
convenience of reference only and are not to affect the construction hereof or
be taken into consideration in the interpretation hereof.

     19.  Successors and Assigns.  This Agreement shall be binding upon the
          ----------------------
successors and assigns of the Pledgor and shall inure to the benefit of the
Administrative Agent and the Lenders and their successors and assigns, provided
that the Pledgor may not assign any of its rights or obligations under this
Agreement without the prior written consent of the Agent and any such purported
assignment shall be null and void.

     21.  GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
          -------------
PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

<PAGE>

     IN WITNESS WHEREOF, the undersigned has caused this Pledge Agreement to be
duly executed and delivered as of the date first above written.

PLEDGORS:                     SCHOOL SPECIALTY, INC.,
                              a Delaware corporation

                              By: /s/ Donald J. Noskowiak
                                  -----------------------
                              Name:  Donald J. Noskowiak
                              Title:  CFO & Exec. VP

                              CHILDCRAFT EDUCATION CORP.,
                              a New York corporation

                              By: /s/ Donald J. Noskowiak
                                  -----------------------
                              Name:  Donald J. Noskowiak
                              Title:  VP

                              THE NATIONAL SCHOOL SUPPLY
                              COMPANY,
                              a Delaware corporation

                              By: /s/ Donald J. Noskowiak
                                  -----------------------
                              Name:  Donald J. Noskowiak
                              Title:  VP

ADMINISTRATIVE AGENT:         NATIONSBANK, N.A.,
                              as Administrative Agent

                              By: /s/ Michael Heredia
                                  -------------------
                              Name:  Michael R. Heredia
                              Title:  Senior Vice President

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