Document:

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                                                                   EXHIBIT 10.24

                AMENDED AND RESTATED SUBSIDIARY PLEDGE AGREEMENT

      THIS AMENDED AND RESTATED SUBSIDIARY PLEDGE AGREEMENT, dated as of June
27, 2002 (as modified from time to time, this ("PLEDGE AGREEMENT") made by
AMERICAN EDUCATIONAL PRODUCTS LLC a Colorado limited liability company (the
"PLEDGOR"), in favor of BANK OF AMERICA N.A.(together with any successor(s)
thereto in such capacity, the "AGENT") for the various financial institutions
(individually a "LENDER" and collectively the "LENDERS") which are or may from
time to time become, parties to the Credit Agreements referred below.

                              W I T N E S S E T H:

      WHEREAS, the parties or their predecessors have entered into that certain
First Amendment to Amended and Restated Credit Agreement (Five Year) and
Consent, dated as of June 17, 2002 which amends the Amended and Restated Credit
Agreement (Five Year), dated as of May 29, 2001 (as amended, supplemented and
otherwise modified, the "CREDIT AGREEMENT (FIVE YEAR)"), among Nasco
International, Inc., a Wisconsin corporation (the "PARENT"), the lenders parties
thereto and the Agent; and

      WHEREAS, the parties or their predecessors have entered into that certain
Second Amendment to Amended and Restated Credit Agreement (364 Days) and
Consent, dated as of June 17, 2002 which amends the Amended and Restated Credit
Agreement (364 Days), dated as of May 29, 2001 (as amended, supplemented and
otherwise modified, the "CREDIT AGREEMENT (364 DAYS)" and together with the
Credit Agreement (Five Year), the "CREDIT AGREEMENTS"), among the Parent, the
lenders party thereto and the Agent; and

      WHEREAS, the parties or their predecessors have entered into that certain
Subsidiary Pledge Agreement, dated as of August 20, 2001 (the "EXISTING
SUBSIDIARY PLEDGE AGREEMENT"), and the parties hereto wish to amend and restate
such Existing Subsidiary Pledge Agreement as set forth in this Pledge Agreement;
and

      WHEREAS, it is a condition precedent to the extensions of credit under the
Credit Agreements that the Pledgor enter into this Pledge Agreement to, among
other things, grant to the Agent a continuing security interest in the
Collateral;

      NOW, THEREFORE, for good and valuable consideration the receipt of which
is hereby acknowledged, in order to induce the Lenders to make Loans (including
the initial Loans) to the Pledgor from time to time pursuant to the Credit
Agreements and in order to amend and restate the Existing Subsidiary Pledge
Agreement, the Pledgor hereby agrees with the Agent, for its benefit and the
ratable benefit of each Lender Party, as follows:

                                    ARTICLE I

                                   DEFINITIONS

      SECTION 1.1. CERTAIN TERMS. The following terms (whether or not
underscored) when used in this Pledge Agreement, including its preamble and
recitals, shall have the following meanings (such definitions to be equally
applicable to the singular and plural forms thereof):

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      "ADDITIONAL RIGHTS" means, with respect to the Pledgor, any membership
interest, other ownership interest, dividend or other distribution and any other
right or property which the Pledgor shall receive or shall become entitled to
receive for any reason whatsoever with respect to, in substitution for or in
exchange for any portion of the Membership Interest and any membership interest,
ownership interest or right to receive any membership interest, ownership
interest or dividend or distribution in which the Pledgor now has or hereafter
acquires any right, issued by any Pledged Membership Interest Company.

      "AGENT" is defined in the PREAMBLE.

      "COLLATERAL" is defined in SECTION 2.1.

      "COLLATERAL DOCUMENTS" means the "Collateral Documents" defined in the
Credit Agreement (5 Year) and "Collateral Documents," as defined in the Credit
Agreement (364 Days).

      "CREDIT AGREEMENTS" is defined in the RECITALS.

      "DEFAULT" means "Default" as defined in the Credit Agreement (5 Year) and
"Default" as defined in the Credit Agreement (364 Days).

      "DISTRIBUTIONS" means all stock dividends, liquidating dividends, shares
of stock resulting from (or in connection with the exercise of) stock splits,
reclassifications, warrants, options, non-cash dividends, mergers,
consolidations, and all other distributions (whether similar or dissimilar to
the foregoing) on or with respect to any Pledged Shares (or other shares of
capital stock constituting Collateral) or any Pledged Membership Interests, but
shall not include Dividends.

      "DIVIDENDS" means cash dividends and cash distributions with respect to
any Pledged Shares, any Pledged Membership Interests or other Pledged Property
made in the ordinary course of business and not a liquidating dividend.

      "EVENT OF DEFAULT" means an "Event of Default" as defined in the Credit
Agreement (Five Year) and "Event of Default" as defined in the Credit Agreement
(364 Days).

      "EXISTING CREDIT AGREEMENT" is defined in the PREAMBLE.

      "EXISTING SUBSIDIARY PLEDGE AGREEMENT" is defined in the PREAMBLE.

      "LENDER" is defined in the PREAMBLE.

      "LENDER PARTY" means, as the context may require, any Lender or the Agent
and each of their respective successors, transferees and assigns.

      "LENDERS" is defined in the PREAMBLE.

      "LOAN DOCUMENTS" means "Loan Documents" as defined in the Credit Agreement
(Five Year) and "Loan Documents" as defined in the Credit Agreement (364 Days).

      "MEMBERSHIP INTERESTS" means, with respect to the Pledgor, the Pledgor's
entire membership interest in each Pledged Membership Interest Company
including, without limitation, all of the Pledgor's rights in and to all
profits, proceeds and distributions of every kind and nature whatsoever due to
the Pledgor.

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      "NOTES" mean "Notes" as defined in the Credit Agreement (Five Year) and
"Notes" as defined in the Credit Agreement (364 Days).

      "OBLIGATIONS" means "Obligations" as defined in the Credit Agreement (Five
Year) and "Obligations" as defined in the Credit Agreement (364 Days).

      "PLEDGE AGREEMENT" is defined in the PREAMBLE.

      "PLEDGED MEMBERSHIP INTEREST COMPANY" means each Person identified in ITEM
A of ATTACHMENT 1 hereto as the issuer of the Pledged Membership Interests
identified opposite the name of such Person.

      "PLEDGED MEMBERSHIP INTERESTS" means all Membership Interests of any
Pledged Membership Interest Company.

      "PLEDGED NOTE ISSUER" means each Person identified in ITEM C of ATTACHMENT
1 hereto as the issuer of the Pledged Note identified opposite the name of such
Person.

      "PLEDGED NOTES" means all promissory notes of any Pledged Note Issuer in
the form or substantially the form of EXHIBIT A hereto which are delivered by
the Pledgor to the Agent as Pledged Property hereunder, as such promissory
notes, in accordance with SECTION 4.5, are amended, modified or supplemented
from time to time and together with any promissory note of any Pledged Note
Issuer taken in extension or renewal thereof or substitution therefor.

      "PLEDGED PROPERTY" means all Pledged Shares, all Pledged Membership
Interests, all Pledged Notes, all Additional Rights, all other pledged shares of
capital stock or promissory notes, all other securities, all assignments of any
amounts due or to become due, and all other instruments which are now being
delivered by the Pledgor to the Agent or may from time to time hereafter be
delivered by the Pledgor to the Agent for the purpose of pledge under this
Pledge Agreement or any other Loan Document, and all proceeds of any of the
foregoing.

      "PLEDGED SHARE ISSUER" means each Person identified in ITEM B of
ATTACHMENT 1 hereto as the issuer of the Pledged Shares identified opposite the
name of such Person.

      "PLEDGED SHARES" means all shares of capital stock of any Pledged Share
Issuer.

      "PLEDGOR" is defined in the PREAMBLE.

      "SECURED OBLIGATIONS" is defined in SECTION 2.2.

      "UCC" means the Uniform Commercial Code as in effect in the State of
Illinois.

      SECTION 1.2. UCC DEFINITIONS. Unless otherwise defined herein or the
context otherwise requires, terms for which meanings are provided in the UCC are
used in this Pledge Agreement, including its preamble and recitals, with such
meanings.

                                   ARTICLE II

                                     PLEDGE

      SECTION 2.1. CONFIRMATION AND GRANT OF SECURITY INTEREST AND PLEDGE. The
Pledgor hereby pledges, hypothecates, assigns, charges, mortgages, delivers, and
transfers to the Agent,

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for its benefit and the ratable benefit of the Lender Parties, and hereby grants
to the Agent, for its benefit and the ratable benefit of the Lender Parties, a
continuing pledge and security interest in and to, all of the following property
(the "COLLATERAL"):

            (a)   all Membership Interests identified in ITEM A of ATTACHMENT 1
                  hereto;

            (b)   all Additional Rights;

            (c)   all issued and outstanding shares of capital stock of each
      Pledged Share Issuer identified in ITEM B of ATTACHMENT 1 hereto;

            (d)   all other Pledged Shares issued from time to time;

            (e)   all promissory notes of each Pledged Note Issuer identified in
      ITEM C of ATTACHMENT 1 hereto;

            (f)   all other Pledged Notes issued from time to time;

            (g)   all other Pledged Property, whether now or hereafter delivered
      to the Agent in connection with this Pledge Agreement;

            (h)   all Dividends, Distributions, interest, and other payments and
      rights with respect to any Pledged Property; and

            (i)   all proceeds of any and all of the foregoing.

      SECTION 2.2. SECURITY FOR OBLIGATIONS. This Pledge Agreement secures the
payment in full of all Obligations now or hereafter existing under the Credit
Agreements, the Notes, the Collateral Documents and each other Loan Document
(including this Pledge Agreement) to which the Pledgor is or may become a party,
whether for principal, interest, costs, fees, expenses or otherwise.

      SECTION 2.3. DELIVERY OF PLEDGED PROPERTY. All certificates or instruments
representing or evidencing any Collateral, including all Pledged Shares, all
Pledged Membership Interests and all Pledged Notes, shall be delivered to and
held by or on behalf of (and, in the case of the Pledged Notes, endorsed to the
order of) the Agent pursuant hereto, shall be in suitable form for transfer by
delivery, and shall be accompanied by all necessary instruments of transfer or
assignment, duly executed in blank, and all other necessary and appropriate
action and approvals shall have been taken or received to grant to the Agent a
first priority fully perfected security interest in such Collateral.

      SECTION 2.4. DIVIDENDS ON PLEDGED SHARES, PLEDGED MEMBERSHIP INTERESTS AND
PAYMENTS ON PLEDGED NOTES. In the event that any Dividend is to be paid on any
Pledged Share, any Pledged Membership Interest or any payment of principal or
interest is to be made on any Pledged Note at a time when (x) no Default of the
nature referred to in Section 8.1.9 of the Credit Agreement has occurred and is
continuing, and no (y) Event of Default has occurred

and is continuing, such Dividend or payment may be paid directly to and retained
by the Pledgor. If any such Default or Event of Default has occurred and is
continuing, then any such Dividend or payment shall be paid directly to the
Agent (and if for any reason the Pledgor shall receive such Dividend or payment
in such circumstances, the Pledgor shall hold the same segregated and in trust
for the Agent until paid to the Agent in accordance with SECTION 4.4).

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      SECTION 2.5. CONTINUING SECURITY INTEREST; TRANSFER OF NOTE. This Pledge
Agreement shall create a continuing security interest in the Collateral and
shall

            (a)   remain in full force and effect until payment in full of all
      Obligations,

            (b)   be binding upon the Pledgor and its successors, transferees
      and assigns, and

            (c)   inure, together with the rights and remedies of the Agent
      hereunder, to the benefit of the Agent and each other Lender Party.

Without limiting the foregoing clause (c), any Lender may assign or otherwise
transfer (in whole or in part) any Note or Loan held by it to any other Person
or entity, and such other Person or entity shall thereupon become vested with
all the rights and benefits in respect thereof granted to such Lender under any
Loan Document (including this Pledge Agreement) or otherwise, subject, however,
to any contrary provisions in such assignment or transfer, and to the provisions
of Section 10.11 and Article IX of each Credit Agreement. Upon the final payment
in full of all Obligations, the security interest granted herein shall terminate
and all rights to the Collateral shall revert to the Pledgor. Upon any such
termination, the Agent will, at the Pledgor's sole expense, deliver to the
Pledgor, without any representations, warranties or recourse of any kind
whatsoever, all certificates and instruments representing or evidencing all
Pledged Shares, all Pledged Membership Interests and all Pledged Notes, together
with all other Collateral held by the Agent hereunder, and execute and deliver
to the Pledgor such documents as the Pledgor shall reasonably request to
evidence such termination.

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

      SECTION 3.1. WARRANTIES, ETC. The Pledgor represents and warrants unto
each Lender Party, as at the date of each pledge and delivery hereunder
(including each pledge and delivery of Pledged Shares, Pledged Membership
Interests and each pledge and delivery of a Pledged Note) by the Pledgor to the
Agent of any Collateral, as set forth in this Article.

      SECTION 3.1.1. OWNERSHIP, NO LIENS, ETC. The Pledgor is the legal and
beneficial owner of, and has good and marketable title to (and has full right
and authority to pledge and assign) such Collateral, free and clear of all
liens, security interests, options, or other charges or encumbrances, except any
lien or security interest granted pursuant hereto in favor of the Agent.

      SECTION 3.1.2. VALID SECURITY INTEREST. The delivery of such Collateral to
the Agent is effective to create a valid, perfected, first priority security
interest in such Collateral and all proceeds thereof, securing the Obligations.
No filing or other action will be necessary to perfect or protect such security
interest.

      SECTION 3.1.3. AS TO PLEDGED SHARES AND PLEDGED MEMBERSHIP INTERESTS. In
the case of any Pledged Membership Interests constituting such Collateral, all
of such Pledged Membership Interests are duly authorized and validly issued,
fully paid, and non-assessable, and constitute all of the Membership Interests
of each Pledged Membership Interest Company.

      In the case of any Pledged Shares constituting such Collateral, all of
such Pledged Shares are duly authorized and validly issued, fully paid, and
non-assessable, and constitute all of the

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issued and outstanding shares of capital stock of each Pledged Share Issuer. The
Pledgor has no Subsidiary other than the Pledged Share Issuers.

      SECTION 3.1.4. AS TO PLEDGED NOTES. In the case of each Pledged Note, all
of such Pledged Notes have been duly authorized, executed, endorsed, issued and
delivered, and are the legal, valid and binding obligation of the issuers
thereof, and are not in default.

      SECTION 3.1.5. AUTHORIZATION, APPROVAL, ETC. No authorization, approval,
or other action by, and no notice to or filing with, any governmental authority,
regulatory body or any other Person is required either

            (a)   for the pledge by the Pledgor of any Collateral pursuant to
      this Pledge Agreement or for the execution, delivery, and performance of
      this Pledge Agreement by the Pledgor, or

            (b)   for the exercise by the Agent of the voting or other rights
      provided for in this Pledge Agreement, or, except with respect to any
      Pledged Shares or any Pledged Membership Interests, as may be required in
      connection with a disposition of such Pledged Shares or Pledged Membership
      Interests by laws affecting the offering and sale of securities and
      membership interests in limited liability companies generally, the
      remedies in respect of the Collateral pursuant to this Pledge Agreement.

      SECTION 3.1.6. COMPLIANCE WITH LAWS. The Pledgor is in compliance with the
requirements of all applicable laws, rules, regulations and orders of every
governmental authority, the non-compliance with which might materially adversely
affect the business, properties, assets, operations, condition (financial or
otherwise) or prospects of the Pledgor or the value of the Collateral or the
worth of the Collateral as collateral security.

      SECTION 3.1.7. NOT SECURITES. The Collateral hereunder is not a "Security"
under Article 8 of the UCC.

                                   ARTICLE IV

                                    COVENANTS

      SECTION 4.1. PROTECT COLLATERAL; FURTHER ASSURANCES, ETC. The Pledgor will
not sell, assign, transfer, pledge or encumber in any other manner the
Collateral (except in favor of the Agent hereunder). The Pledgor will warrant
and defend the right and title herein granted unto the Agent in and to the
Collateral (and all right, title and interest represented by the Collateral)
against the claims and demands of all Persons whomsoever. The Pledgor agrees
that at any time, and from time to time, at the expense of the Pledgor, the
Pledgor will promptly execute and deliver all further instruments, and take all
further action, that may be necessary or desirable, or that the Agent may
reasonably request, in order to perfect and protect any security interest
granted or purported to be granted hereby or to enable the Agent to exercise and
enforce its rights and remedies hereunder with respect to any Collateral.

      SECTION 4.2. STOCK POWERS, ETC. The Pledgor agrees that all Pledged Shares
(and all other shares of capital stock constituting Collateral) and any
applicable Pledged Membership Interests delivered by the Pledgor pursuant to
this Pledge Agreement will be accompanied by duly executed undated blank stock
powers, or other equivalent instruments of transfer acceptable to the Agent. The
Pledgor will, from time to time upon the request of the Agent, promptly

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deliver to the Agent such stock powers, instruments, and similar documents,
satisfactory in form and substance to the Agent, with respect to the Collateral
as the Agent may reasonably request and will, from time to time upon the request
of the Agent after the occurrence of any Event of Default, promptly transfer any
Pledged Shares (or other shares of common stock constituting Collateral) or any
Pledged Membership Interests into the name of any nominee designated by the
Agent.

      SECTION 4.3. CONTINUOUS PLEDGE. Subject to SECTION 2.4, the Pledgor will,
at all times, keep pledged to the Agent pursuant hereto all Pledged Shares (and
all other shares of capital stock constituting Collateral), all Pledged
Membership Interests all Dividends and Distributions with respect thereto, all
Pledged Notes, all interest, principal and other proceeds received by the Agent
with respect to the Pledged Notes, and all other Collateral and other
securities, instruments, proceeds, and rights from time to time received by or
distributable to the Pledgor in respect of any Collateral, and will not permit
any Pledged Share Issuer to issue any capital stock which shall not have been
immediately duly pledged hereunder on a first perfected basis or permit any
Pledged Membership Interest Company to issue any Membership Interests which
shall not have been immediately duly pledged hereunder on a first perfected
basis.

      SECTION 4.4. VOTING RIGHTS; DIVIDENDS, ETC. The Pledgor agrees:

            (a)   after any Default of the nature referred to in Section 8.1.9
      of either Credit Agreement or an Event of Default shall have occurred and
      be continuing, promptly upon receipt thereof by the Pledgor and without
      any request therefor by the Agent, to deliver (properly endorsed where
      required hereby or requested by the Agent) to the Agent all Dividends,
      Distributions, all interest, all principal, all other cash payments, and
      all proceeds of the Collateral, all of which shall be held by the Agent
      as additional Collateral for use in accordance with SECTION 6.3; and

            (b)   after any Event of Default shall have occurred and be
      continuing and the Agent has notified the Pledgor of the Agent's intention
      to exercise its voting power under this clause (b) of SECTION 4.4

                  (i)   the Agent may exercise (to the exclusion of the Pledgor)
            the voting power and all other incidental rights of ownership with
            respect to any Pledged Shares (or other shares of capital stock
            constituting Collateral) or Pledged Membership Interests and the
            Pledgor hereby grants the Agent an irrevocable proxy, exercisable
            under such circumstances, to vote the Pledged Shares or the Pledged
            Membership Interests and such other Collateral; and

                  (ii)  promptly to deliver to the Agent such additional proxies
            and other documents as may be necessary to allow the Agent to
            exercise such voting power.

All Dividends, Distributions, interest, principal, cash payments and proceeds
which may at any time and from time to time be held by the Pledgor but which the
Pledgor is then obligated to deliver to the Agent, shall, until delivery to the
Agent, be held by the Pledgor separate and apart from its other property in
trust for the Agent. The Agent agrees that unless an Event of Default shall have
occurred and be continuing and the Agent shall have given the notice referred to
in clause (b) of SECTION 4.4, the Pledgor shall have the exclusive voting power
with respect to any shares of capital stock or membership interests (including
any of the Pledged Shares or Pledged Membership Interests) constituting
Collateral and the Agent shall, upon the written request of the Pledgor,
promptly deliver such proxies and other documents, if any, as shall be
reasonably

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requested by the Pledgor which are necessary to allow the Pledgor to exercise
voting power with respect to any such share of capital stock or membership
interests (including any of the Pledged Shares or Pledged Membership Interests)
constituting Collateral; provided, however, that no vote shall be cast, or
consent, waiver or ratification given, or action taken by the Pledgor that would
impair any Collateral or be inconsistent with or violate any provision of the
Credit Agreement or any other Loan Document (including this Pledge Agreement).

      SECTION 4.5. ADDITIONAL UNDERTAKINGS. The Pledgor will not, without the
prior written consent of the Agent:

            (a)   enter into any agreement amending, supplementing, or waiving
      any provision of any Pledged Note (including any underlying instrument
      pursuant to which such Pledged Note is issued) or compromising or
      releasing or extending the time for payment of any obligation of the maker
      thereof;

            (b)   take or omit to take any action the taking or the omission of
      which would result in any impairment or alteration of any obligation of
      the maker of any Pledged Note or other instrument constituting Collateral;
      or

            (c)   make any demand under any Pledged Note at any time when a
      Default of the nature referred to in Section 8.1.9 of either Credit
      Agreement, or any Event of Default, has occurred and is continuing; or

            (d)   take any action which would cause the Collateral to be treated
      as a "Security" under Article 8 of the UCC.

                                   ARTICLE V

                                    THE AGENT

      SECTION 5.1. AGENT APPOINTED ATTORNEY-IN-FACT. The Pledgor hereby
irrevocably appoints the Agent the Pledgor's attorney-in-fact, with full
authority in the place and stead of the Pledgor and in the name of the Pledgor
or otherwise, from time to time in the Agent's discretion, to take any action
and to execute any instrument which the Agent may deem necessary or advisable to
accomplish the purposes of this Pledge Agreement, including without limitation:

            (a)   to ask, demand, collect, sue for, recover, compromise, receive
      and give acquittance and receipts for moneys due and to become due under
      or in respect of any of the Collateral;

            (b)   to receive, endorse and collect any drafts or other
      instruments, documents and chattel paper, in connection with clause (a)
      above; and

            (c)   to file any claims or take any action or institute any
      proceedings which the Agent may deem necessary or desirable for the
      collection of any of the Collateral or otherwise to enforce the rights of
      the Agent with respect to any of the Collateral.

The Pledgor hereby acknowledges, consents and agrees that the power of attorney
granted pursuant to this Section is irrevocable and coupled with an interest.

      SECTION 5.2. AGENT MAY PERFORM. If the Pledgor fails to perform any
agreement contained herein, the Agent may itself perform, or cause performance
of, such agreement, and

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the expenses of the Agent incurred in connection therewith shall be payable by
the Pledgor pursuant to SECTION 6.4.

      SECTION 5.3. AGENT HAS NO DUTY. The powers conferred on the Agent
hereunder are solely to protect its interest (on behalf of the Lender Parties)
in the Collateral and shall not impose any duty on it to exercise any such
powers. Except for reasonable care of any Collateral in its possession and the
accounting for moneys actually received by it hereunder, the Agent shall have no
duty as to any Collateral or responsibility for (a) ascertaining or taking
action with respect to calls, conversions, exchanges, maturities, tenders or
other matters relative to any Pledged Property, whether or not the Agent has or
is deemed to have knowledge of such matters, or (b) taking any necessary steps
to preserve rights against prior parties or any other rights pertaining to any
Collateral.

      SECTION 5.4. REASONABLE CARE. The Agent is required to exercise reasonable
care in the custody and preservation of any of the Collateral in its possession;
provided, however, the Agent shall be deemed to have exercised reasonable care
in the custody and preservation of any of the Collateral, if it takes such
action for that purpose as the Pledgor reasonably requests in writing at times
other than upon the occurrence and during the continuance of any Event of
Default, but failure of the Agent to comply with any such request at any time
shall not in itself be deemed a failure to exercise reasonable care.

                                   ARTICLE VI

                                    REMEDIES

      SECTION 6.1. CERTAIN REMEDIES. If any Event of Default shall have occurred
and be continuing:

            (a)   The Agent may exercise in respect of the Collateral, in
      addition to other rights and remedies provided for herein or otherwise
      available to it, all the rights and remedies of a secured party on default
      under the UCC (whether or not the UCC applies to the affected Collateral)
      and also may, without notice except as specified below, sell the
      Collateral or any part thereof in one or more parcels at public or private
      sale, at any of the Agent's offices or elsewhere, for cash, on credit or
      for future delivery, and upon such other terms as the Agent may deem
      commercially reasonable. The Pledgor agrees that, to the extent notice of
      sale shall be required by law, at least ten days' prior notice to the
      Pledgor of the time and place of any public sale or the time after which
      any private sale is to be made shall constitute reasonable notification.
      The Agent shall not be obligated to make any sale of Collateral regardless
      of notice of sale having been given. The Agent may adjourn any public or
      private sale from time to time by announcement at the time and place fixed
      therefor, and such sale may, without further notice, be made at the time
      and place to which it was so adjourned.

            (b)   The Agent may

                  (i)   transfer all or any part of the Collateral into the name
            of the Agent or its nominee, with or without disclosing that such
            Collateral is subject to the lien and security interest hereunder,

                  (ii)  notify the parties obligated on any of the Collateral to
            make payment to the Agent of any amount due or to become due
            thereunder,

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                  (iii) enforce collection of any of the Collateral by suit or
            otherwise, and surrender, release or exchange all or any part
            thereof, or compromise or extend or renew for any period (whether or
            not longer than the original period) any obligations of any nature
            of any party with respect thereto,

                  (iv)  endorse any checks, drafts or other writings in the
            Pledgor's name to allow collection of the Collateral,

                  (v)   take control of any proceeds of the Collateral, and

                  (vi)  execute (in the name, place and stead of the Pledgor)
            endorsements, assignments, stock powers and other instruments of
            conveyance or transfer with respect to all or any of the Collateral.

      SECTION 6.2. COMPLIANCE WITH RESTRICTIONS. The Pledgor agrees that in any
sale of any of the Collateral whenever an Event of Default shall have occurred
and be continuing, the Agent is hereby authorized to comply with any limitation
or restriction in connection with such sale as it may be advised by counsel is
necessary in order to avoid any violation of applicable law (including
compliance with such procedures as may restrict the number of prospective
bidders and purchasers, require that such prospective bidders and purchasers
have certain qualifications, and restrict such prospective bidders and
purchasers to persons who will represent and agree that they are purchasing for
their own account for investment and not with a view to the distribution or
resale of such Collateral), or in order to obtain any required approval of the
sale or of the purchaser by any governmental regulatory authority or official,
and the Pledgor further agrees that such compliance shall not result in such
sale being considered or deemed not to have been made in a commercially
reasonable manner, nor shall the Agent be liable nor accountable to the Pledgor
for any discount allowed by the reason of the fact that such Collateral is sold
in compliance with any such limitation or restriction.

      SECTION 6.3. APPLICATION OF PROCEEDS. All cash proceeds received by the
Agent in respect of any sale of, collection from, or other realization upon, all
or any part of the Collateral may, in the discretion of the Agent, be held by
the Agent as additional collateral security for, or then or at any time
thereafter be applied (after payment of any amounts payable to the Agent
pursuant to Section 10.3 of either Credit Agreement and SECTION 6.4) in whole or
in part by the Agent against, all or any part of the Obligations in such order
as the Agent shall elect.

      Any surplus of such cash or cash proceeds held by the Agent and remaining
after final payment in full of all the Obligations, and the termination of all
Commitments, shall be paid over to the Pledgor or to whomsoever may be lawfully
entitled to receive such surplus.

      SECTION 6.4. INDEMNITY AND EXPENSES. The Pledgor hereby indemnifies and
holds harmless the Agent from and against any and all claims, losses and
liabilities arising out of or resulting from this Pledge Agreement (including
enforcement of this Pledge Agreement), except claims, losses or liabilities
resulting from the Agent's gross negligence or wilful misconduct. Upon demand,
the Pledgor will pay to the Agent the amount of any and all reasonable expenses,
including the reasonable fees and disbursements of its counsel (including the
reasonable allocated cost of internal legal services and all disbursements of
internal counsel) and of any experts and agents, which the Agent may incur in
connection with:

            (a)   the administration of this Pledge Agreement, the Credit
      Agreement and each other Loan Document;

                                       10

<PAGE>

            (b)   the custody, preservation, use or operation of, or the sale
      of, collection from or other realization upon, any of the Collateral;

            (c)   the exercise or enforcement of any of the rights of the Agent
      hereunder; or

            (d)   the failure by the Pledgor to perform or observe any of the
      provisions hereof.

                                  ARTICLE VII

                            MISCELLANEOUS PROVISIONS

      SECTION 7.1. LOAN DOCUMENT. This Pledge Agreement is a Loan Document
executed pursuant to the Credit Agreements and shall (unless otherwise expressly
indicated herein) be construed, administered and applied in accordance with the
terms and provisions thereof (including as to the WAIVER OF ANY JURY TRIAL with
respect to any litigation relating to or arising out of any matter herein).

      SECTION 7.2. CONTINUATION OF SECURITY INTEREST. This Pledge Agreement is
an amendment and restatement of the Existing Subsidiary Pledge Agreement and the
security interest granted thereunder shall be deemed continued hereunder.

      SECTION 7.3. AMENDMENTS, ETC. No amendment to or waiver of any provision
of this Pledge Agreement nor consent to any departure by the Pledgor herefrom
shall in any event be effective unless the same shall be in writing and signed
by the Agent, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which it is given.

      SECTION 7.4. SUBSIDIARIES. The parties agree that the entities listed on
ATTACHMENT I are "Subsidiaries" under the Credit Agreements.

      SECTION 7.5. PROTECTION OF COLLATERAL. The Agent may from time to time, at
its option, perform any act which the Pledgor agrees hereunder to perform and
which the Pledgor shall fail to perform after being requested in writing so to
perform (it being understood that no such request need be given after the
occurrence and during the continuance of an Event of Default) and the Agent may
from time to time take any other action which the Agent reasonably deems
necessary for the maintenance, preservation or protection of any of the
Collateral or of its security interest therein.

      SECTION 7.6. ADDRESSES FOR NOTICES. All notices and other communications
provided for hereunder shall be in writing (including telegraphic communication)
and, if to the Pledgor, mailed or telegraphed or delivered to it at the address
set forth below its signature hereto, if to the Agent, mailed or delivered to
it, addressed to it at the address of the Agent specified in the Credit
Agreement or, as to either party, at such other address as shall be designated
by such party in a written notice to each other party complying as to delivery
with the terms of this Section. All such notices and other communications shall,
when mailed or telegraphed, respectively, be effective when deposited in the
mails or delivered to the telegraph company, respectively, addressed as
aforesaid.

      SECTION 7.7. SECTION CAPTIONS. Section captions used in this Pledge
Agreement are for convenience of reference only, and shall not affect the
construction of this Pledge Agreement.

                                       11

<PAGE>

      SECTION 7.8. SEVERABILITY. Wherever possible each provision of this Pledge
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Pledge Agreement shall be
prohibited by or invalid under such law, such provision shall be ineffective to
the extent of such prohibition or invalidity, without invalidating the remainder
of such provision or the remaining provisions of this Pledge Agreement.

      SECTION 7.9. GOVERNING LAW, ENTIRE AGREEMENT, ETC. THIS PLEDGE AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE
STATE OF ILLINOIS, EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF THE
SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR
COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF
NEW YORK. THIS PLEDGE AGREEMENT AND THE OTHER LOAN DOCUMENTS CONSTITUTE THE
ENTIRE UNDERSTANDING AMONG THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER
HEREOF AND SUPERSEDE ANY PRIOR AGREEMENTS, WRITTEN OR ORAL, WITH RESPECT
THERETO.

                             [SIGNATURES TO FOLLOW]

                                       12

<PAGE>

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

                              AMERICAN EDUCATIONAL PRODUCTS LLC

                              By: /s/ Steven B. Lapin
                                  -------------------
                                   Title: Vice President

                                   Address:         401 Hickory Street
                                                    Fort Collins, Colorado 80522

                                   Attention:       Michael Anderson
                                                    General Manager

                                   Telecopier No.:  970-484-3733

                                   Copy to:         The Aristotle Corporation
                                                    96 Cummings Point Road
                                                    Stamford, Connecticut
                                                    06902

                                   Attention:       Paul McDonald
                                                    Chief Financial Officer

                                   Telecopier No.:  203-348-3103

                                   Copy to:         Nasco Division
                                                    901 Janesville Avenue
                                                    Fort Atkinson, Wisconsin
                                                    53538-0901

                                   Attention:       Dean T. Johnson
                                                    Chief Financial Officer

                                   Telecopier No.:  414-563-0234

                               S-1        AMENDED AND RESTATED SUBSIDIARY PLEDGE
                                                                       AGREEMENT

<PAGE>

                                    ACCEPTED:

                                    BANK OF AMERICA, N.A., as Agent

                                    By: /s/ David Johanson
                                        ------------------
                                        Title:  Vice President

                                         Address:     231 South LaSalle Street
                                                      Chicago, Illinois  60697

                                         Telecopier No.:  877-206-8410

                                         Attention:       David Johanson

                               S-2        AMENDED AND RESTATED SUBSIDIARY PLEDGE
                                                                       AGREEMENT
<PAGE>

                                  ATTACHMENT I
                               to Pledge Agreement

                                   Description

Item A.  Pledged Membership Interests
         ----------------------------

Pledged Membership Interest Company             % of Membership Interest Pledged
-----------------------------------             --------------------------------

Scott Resources LLC                                                 100%

Hubbard Scientific LLC                                          100%

Item B.  Pledged Shares
         --------------

Pledged Share Issuer                                   Common Stock
--------------------                             -----------------------

                                         Authorized   Outstanding   % of Shares
                                           Shares       Shares         Pledged
                                         ----------   -----------   -----------

None

Item C.  Pledged Notes
         -------------
None

                                      I-1

<PAGE>

                                    EXHIBIT A
                               to Pledge Agreement

                             FORM OF PROMISSORY NOTE

$                                                                         , 200_

      FOR VALUE RECEIVED, the undersigned, ______________, a ______________
corporation (the "MAKER"), promises to pay to the order of
_________________________, a _________ limited liability company (the "PAYEE"),
on demand, the principal sum of _________ DOLLARS ($ ), or, if less, the
aggregate outstanding principal amount of all intercompany loans made by the
Payee to the Maker.

      The unpaid principal amount of this promissory note (this "NOTE") from
time to time outstanding shall bear interest at a rate of interest equal to the
rate of interest payable on the Loans outstanding under the Credit Agreement
hereinafter referred to, which the Maker represents to be a lawful and
commercially reasonable rate, payable on demand or on payment of the principal
amount outstanding under this Note, and all payments of principal of and
interest on this Note shall be payable in lawful currency of the United States
of America. All such payments shall be made by the Maker to the Payee and shall
be recorded on the grid attached hereto by the holder hereof (including the
Agent as pledgee). Upon notice from the Agent (hereinafter defined) that a
Default (as defined in the Credit Agreement hereinafter referred to) of the
nature referred to in Section 8.1.9 of the Credit Agreement or an Event of
Default (as defined in the Credit Agreement) has occurred and is continuing
under the Credit Agreement, the Maker shall make such payments, in same day
funds, to such other account as the Agent shall direct in such notice.

      This Note is one of the Pledged Notes referred to in the Amended and
Restated Subsidiary Pledge Agreement, dated as of June 27, 2002 (together with
all amendments and other modifications, if any, from time to time hereafter made
thereto, the "PLEDGE AGREEMENT"), by the Payee in favor of Bank of America,
N.A., which has been executed and delivered pursuant to the Credit Agreement.
Upon the occurrence and continuance of an Event of Default under the Credit
Agreement, and notice thereof by the Agent to the Maker, the Agent shall have
all rights of the Payee to collect and accelerate, and enforce all rights with
respect to, the indebtedness evidenced by this Note.

         Reference is made to the Pledge Agreement for a description of the
terms under which this Note has been pledged to the Agent as security for the
Obligations (as defined in the Pledge Agreement) outstanding from time to time
under the Credit Agreement and each other Loan Document (as defined in the
Pledge Agreement).

         In addition to, but not in limitation of, the foregoing, the Maker
further agrees to pay all expenses, including reasonable attorneys' fees and
legal expenses, incurred by the holder

                                      A-1

<PAGE>

(including the Agent as pledgee) of this Note endeavoring to collect any amounts
payable hereunder which are not paid when due, whether by acceleration or
otherwise.

      THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
INTERNAL LAWS OF THE STATE OF ILLINOIS.

      THE MAKER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY
RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON THIS
NOTE. THE MAKER ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT
CONSIDERATION FOR THIS PROVISION AND THAT THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE PAYEE TO ACCEPT THIS NOTE.

                                   [Name of Maker]

                                   By
                                      ------------------------------------------
                                      Title:

                                   Pay to the order of Bank of America, N.A.,
                                   as Agent

                                   [Name of Payee]

                                   By
                                      ------------------------------------------
                                        Title:

                                      A-2

<PAGE>

                                      GRID

      Intercompany Loans made by _________________________ to ________________
and payments of principal of such Loans.

    Date        Amount of         Amount of        Outstanding       Notation
              Intercompany        Principal         Principal         Made By
                 Loans             Payment           Balance

                                      A-3

<PAGE>

                                    EXHIBIT B
                               to Pledge Agreement

                                 FORM OF JOINDER

      Reference is made to the Subsidiary Pledge Agreement, dated as of ________
__, 2001 (as amended and restated, modified, supplemented or renewed from time
to time the "PLEDGE AGREEMENT") made by _______________, a __________
corporation, in favor of Bank of America, N.A., as agent.

      All capitalized terms used in this Joinder which are defined in the Pledge
Agreement shall have the meanings set forth therein unless otherwise defined or
the context otherwise requires.

      Each of the undersigned hereby agrees that effective the date hereof, it
shall be a Pledgor under the Pledge Agreement. Each of the undersigned agrees to
be bound by the terms and conditions of the Pledge Agreement as a Pledgor and by
executing this Joinder, each of the undersigned hereby make the representations
and warranties and covenants set forth in the Pledge Agreement.

      In connection herewith, each of the undersigned shall deliver all of its
Pledged Property and provide all of the information required to update
Attachment 1 to the Pledge Agreement.

      IN WITNESS WHEREOF, the undersigned have executed this Joinder this ___
day of ____________, _____.

                                         [NAME OF SUBSIDIARY]

                                          By:
                                             -----------------------------------
                                          Title:
                                                --------------------------------

ACKNOWLEDGED AND
CONSENTED TO:

BANK OF AMERICA, N.A.

By:
   -----------------------------------
Title:
      --------------------------------

BANK ONE, WISCONSIN

By:
   -----------------------------------
Title:
      --------------------------------

                                      B-1<PAGE>

                                                                   EXHIBIT 10.25

               AMENDED AND RESTATED SUBSIDIARY SECURITY AGREEMENT

     THIS AMENDED AND RESTATED SUBSIDIARY SECURITY AGREEMENT, dated as of June
27, 2002 (as modified from time to time, this "SECURITY AGREEMENT"), made by
AMERICAN EDUCATIONAL PRODUCTS LLC, a Colorado limited liability company (the
"COMPANY"), EACH SUBSIDIARY OF THE COMPANY LISTED ON THE SIGNATURE PAGES HEREOF,
EACH OTHER PERSON OR ENTITY WHICH FROM TIME TO TIME BECOMES A PARTY HERETO
(collectively, including the Company, the "GRANTORS" and individually each a
"GRANTOR"), in favor of BANK OF AMERICA, N.A., as administrative agent (together
with any successor(s) thereto in such capacity, the "AGENT") for each of the
various financial institutions (individually a "LENDER" and collectively the
"LENDERS") which are or may from time to time become, parties to the Credit
Agreements (as defined below).

                              W I T N E S S E T H:

     WHEREAS, the parties or their predecessors have entered into that certain
First Amendment to Amended and Restated Credit Agreement (Five Year) and
Consent, dated as of June 17, 2002 which amends the Amended and Restated Credit
Agreement (Five Year), dated as of May 29, 2001 (as amended, supplemented and
otherwise modified, the "CREDIT AGREEMENT (FIVE YEAR)"), among Nasco
International, Inc., a Wisconsin corporation (the "PARENT"), the lenders parties
thereto and the Agent; and

     WHEREAS, the parties or their predecessors have entered into that certain
Second Amendment to Amended and Restated Credit Agreement (364 Days) and
Consent, dated as of June 17, 2002 which amends the Amended and Restated Credit
Agreement (364 Days), dated as of May 29, 2001 (as amended, supplemented and
otherwise modified, the "CREDIT AGREEMENT (364 DAYS)" and together with the
Credit Agreement (Five Year), the "CREDIT AGREEMENTS"), among the Parent, the
lenders party thereto and the Agent; and

     WHEREAS, the parties or their predecessors have entered into that certain
Subsidiary Security Agreement, dated as of August 20, 2001 (the "EXISTING
SUBSIDIARY SECURITY AGREEMENT"), and wish to amend and restate such Existing
Subsidiary Security Agreement as set forth in this Security Agreement.

     WHEREAS, in connection with the extension of credit under the Credit
Agreements, the parties or their predecessors have agreed that the Grantors
shall enter into this Security Agreement to grant to the Agent a continuing
security interest in all of the "Collateral" identified herein, and, in
connection with and to supplement this Security Agreement, enter into the
Agreement (Trademark) (the "SUPPLEMENT");

     NOW, THEREFORE, for good and valuable consideration the receipt of which is
hereby acknowledged, in order to induce the Lenders to make Loans (including the
initial Loans) to the Parent from time to time pursuant to the Credit Agreements
and in order to amend and restate the Existing Security Agreement, the Grantors
hereby agree with the Agent, for its benefit and the ratable benefit of each
Lender Party, as follows:

<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

     CERTAIN TERMS. When used herein, (a) capitalized terms used but not defined
herein shall have the meanings given to them in the Credit Agreements and (b)
the following terms shall have the following meanings (such definitions to be
equally applicable to the singular and plural forms thereof):

     "AGENT" is defined in the PREAMBLE.

     "COLLATERAL" is defined in SECTION 2.1.

     "COLLATERAL ACCOUNT" is defined in CLAUSE (C) of SECTION 4.1.2.

     "COMMITMENTS" means the "Commitments", as defined in the Credit Agreement
(Five Year) and the Credit Agreement (364 Day).

     "COMPUTER HARDWARE AND SOFTWARE COLLATERAL" means, with respect to any
Grantor:

          (a)    all computer and other electronic data processing hardware,
     integrated computer systems, central processing units, memory units,
     display terminals, printers, features, computer elements, card readers,
     tape drives, hard and soft disk drives, cables, electrical supply hardware,
     generators, power equalizers, accessories and all peripheral devices and
     other related computer hardware;

          (b)    all software programs, data and databases (including both
     source code, object code and all related applications and data files),
     whether now owned, licensed or leased or hereafter acquired by such
     Grantor, designed for use on the computers and electronic data processing
     hardware described in CLAUSE (A) above;

          (c)    all firmware associated therewith;

          (d)    all documentation (including flow charts, logic diagrams,
     manuals, guides and specifications) with respect to such hardware, software
     and firmware described in the preceding CLAUSES (A) through (C); and

          (e)    all rights with respect to all of the foregoing, including,
     without limitation, any and all copyrights, licenses, options, warranties,
     service contracts, program services, test rights, maintenance rights,
     support rights, improvement rights, renewal rights and indemnifications and
     any substitutions, replacements, additions or model conversions of any of
     the foregoing.

     "COPYRIGHT COLLATERAL" means, with respect to any Grantor, all copyrights
and all semi-conductor chip product mask works of such Grantor, whether
statutory or common law, registered or unregistered, now or hereafter in force
throughout the world including, without limitation, all of such Grantor's right,
title and interest in and to all copyrights and mask works registered in the
United States Copyright Office or anywhere else in the world and also

                                        2
<PAGE>

including, without limitation, the copyrights and mask works referred to in ITEM
A of SCHEDULE IV attached hereto, and all applications for registration thereof,
whether pending or in preparation, all copyright and mask work licenses,
including each copyright and mask work license referred to in ITEM B of SCHEDULE
IV attached hereto, the right to sue for past, present and future infringements
of any thereof, all rights corresponding thereto throughout the world, all
extensions and renewals of any thereof and all proceeds of the foregoing,
including, without limitation, licenses, royalties, income, payments, claims,
damages and proceeds of suit.

     "CREDIT AGREEMENTS" is defined in the RECITALS.

     "GRANTOR" is defined in the PREAMBLE.

     "INTELLECTUAL PROPERTY COLLATERAL" means, collectively, with respect to any
Grantor, the Computer Hardware and Software Collateral, the Copyright
Collateral, the Patent Collateral, the Trademark Collateral and the Trade
Secrets Collateral.

     "LENDER" is defined in the PREAMBLE.

     "LENDER PARTY" means, as the context may require, any Lender or the Agent
and each of its respective successors, transferees and assigns.

     "LENDERS" is defined in the PREAMBLE.

     "LOAN DOCUMENTS" means "Loan Documents" as defined in the Credit Agreement
(Five Year) and "Loan Documents" as defined in the Credit Agreement (364 Day).

     "NOTES" means the "Notes" as defined in the Credit Agreement (Five Year)
and "Notes" as defined in the Credit Agreement (364 Day).

     "OBLIGATIONS" means "Obligations" as defined in the Credit Agreement (Five
Year) and "Obligations" as defined in the Credit Agreement (364 Day).

     "PATENT COLLATERAL" means, with respect to any Grantor:

          (a)    all letters patent and applications for letters patent
     throughout the world, including all patent applications in preparation for
     filing anywhere in the world and including each patent and patent
     application referred to in ITEM A of SCHEDULE II attached hereto;

          (b)    all patent licenses, including each patent license referred to
     in ITEM B of SCHEDULE II attached hereto;

          (c)    all reissues, divisions, continuations, continuations-in-part,
     extensions, renewals and reexaminations of any of the items described in
     clauses (a) and (b); and

          (d)    all proceeds of, and rights associated with, the foregoing
     (including license royalties and proceeds of infringement suits), the right
     to sue third parties for past, present or future infringements of any
     patent or patent application, including any patent

                                       3
<PAGE>

     or patent application referred to in ITEM A of SCHEDULE II attached hereto,
     and for breach or enforcement of any patent license, including any patent
     license referred to in ITEM B of SCHEDULE II attached hereto, and all
     rights corresponding thereto throughout the world.

     "RECEIVABLE" means, with respect to any Grantor, any and all Accounts,
Chattel Paper, Commercial Tort Claims, Documents, General Intangibles,
Instruments and Letter of Credit Rights of such Grantor.

     "RELATED CONTRACT" means, with respect to any Grantor, all rights of such
Grantor now or hereafter existing in and to all security agreements, guaranties,
leases and other contracts securing or otherwise relating to any Collateral.

     "SECURITY AGREEMENT" is defined in the PREAMBLE.

     "SUPPLEMENTS" is defined in the RECITALS.

     "TRADEMARK COLLATERAL" means, with respect to any Grantor:

          (a)    all trademarks, trade names, corporate names, company names,
     business names, fictitious business names, trade styles, service marks,
     certification marks, collective marks, logos, other source of business
     identifiers, prints and labels on which any of the foregoing have appeared
     or appear, designs and general intangibles of a like nature (all of the
     foregoing items in this CLAUSE (A) being collectively called a
     "TRADEMARK"), now existing anywhere in the world or hereafter adopted or
     acquired, whether currently in use or not, all registrations and recordings
     thereof and all applications in connection therewith, whether pending or in
     preparation for filing, including registrations, recordings and
     applications in the United States Patent and Trademark Office or in any
     office or agency of the United States of America or any State thereof or
     any foreign country, including those referred to in ITEM A of SCHEDULE III
     attached hereto;

          (b)    all Trademark licenses, including each Trademark license
     referred to in ITEM B of SCHEDULE III attached hereto;

          (c)    all reissues, extensions or renewals of any of the items
     described in CLAUSES (A) and (B);

          (d)    all of the goodwill of the business connected with the use of,
     and symbolized by the items described in, CLAUSES (A) and (B); and

          (e)    all proceeds of, and rights associated with, the foregoing,
     including any claim by such Grantor against third parties for past, present
     or future infringement or dilution of any Trademark, Trademark registration
     or Trademark license, including any Trademark, Trademark registration or
     Trademark license referred to in ITEM A and ITEM B of SCHEDULE III attached
     hereto, or for any injury to the goodwill associated with the use of any
     such Trademark or for breach or enforcement of any Trademark license.

                                       4
<PAGE>

     "TRADE SECRETS COLLATERAL" means, with respect to any Grantor, common law
and statutory trade secrets and all other confidential or proprietary or useful
information and all know-how obtained by or used in or contemplated at any time
for use in the business of such Grantor (all of the foregoing being collectively
called a "TRADE SECRET"), whether or not such Trade Secret has been reduced to a
writing or other tangible form, including all documents and things embodying,
incorporating or referring in any way to such Trade Secret, all Trade Secret
licenses, including each Trade Secret license referred to in SCHEDULE V attached
hereto, and including the right to sue for and to enjoin and to collect damages
for the actual or threatened misappropriation of any Trade Secret and for the
breach or enforcement of any such Trade Secret license.

     "UCC" means the Uniform Commercial Code, as in effect in the State of
Illinois.

     SECTION 1.2. UCC DEFINITIONS. Unless otherwise defined herein or the
context otherwise requires, terms for which meanings are provided in the UCC are
used in this Security Agreement, including its preamble and recitals, with such
meanings.

                                   ARTICLE II

                                SECURITY INTEREST

     SECTION 2.1. CONFIRMATION AND GRANT OF SECURITY INTEREST. Each Grantor
hereby pledges, assigns and grants, to the Agent for its benefit and the ratable
benefit of each of the Lender Parties, and hereby grants to the Agent for its
benefit and the ratable benefit of each of the Lender Parties, a continuing
security interest in, whether now or hereafter existing or acquired all of such
Grantor's (with respect to any Grantor, the "COLLATERAL"):

          (a)    Accounts;

          (b)    Chattel Paper;

          (c)    Commercial Tort Claims;

          (d)    Deposit Accounts;

          (e)    Documents;

          (f)    General Intangibles;

          (g)    Goods (including all Equipment, Fixtures and Inventory), and
     all accessions, additions, attachments, improvements, substitutions and
     replacements thereto and therefore;

          (h)    Instruments;

          (i)    Intellectual Property Collateral;

          (j)    Investment Property;

                                       5
<PAGE>

          (k)    Letter of Credit Rights and letters of credit (as such term is
     defined in Article 5 of the UCC);

          (l)    to the extent not included in the foregoing, all books,
     records, writings, data bases, information and other property relating to,
     used or useful in connection with, evidencing, embodying, incorporating or
     referring to, any of the foregoing in this SECTION 2.1;

          (m)    other property and rights of every kind and description and
     interests therein, including all rights in any bank or other accounts and
     in all monies from time to time therein; and

          (n)    to the extent not included in the foregoing, all Proceeds,
     products, offspring, rents, issues, profits, returns, and income of and
     from any and all of the foregoing Collateral (including proceeds which
     constitute property of the types described in CLAUSES (A) through (M)
     above, proceeds deposited from time to time in the Collateral Account and
     in any lock boxes of such Grantor, and, to the extent not otherwise
     included, all payments under insurance (whether or not the Agent is the
     loss payee thereof), or any indemnity, warranty or guaranty, payable by
     reason of loss or damage to or otherwise with respect to any of the
     foregoing Collateral).

Notwithstanding the foregoing, the Agent shall not enforce the security interest
granted pursuant to this Security Agreement in rights arising under contracts as
to which such enforcement would constitute a violation of a valid and
enforceable restriction thereon, unless any required consents shall have been
obtained or such restriction shall have become or be rendered ineffective by
reason of law, court proceedings or otherwise. Each Grantor agrees to use its
best efforts to obtain any such required consent.

     SECTION 2.2. SECURITY FOR OBLIGATIONS. This Security Agreement secures the
payment of all Obligations now or hereafter existing under the Credit
Agreements, the Notes and each other Loan Document (including this Security
Agreement) to which the Parent is or may become a party, whether for principal,
interest, costs, fees, expenses or otherwise.

     SECTION 2.3. CONTINUING SECURITY INTEREST; TRANSFER OF NOTES. This Security
Agreement shall create a continuing security interest in the Collateral and
shall

          (a)    remain in full force and effect until payment in full of all
     Obligations and the termination of all Commitments,

          (b)    be binding upon each Grantor, its successors, transferees and
     assigns, and

          (c)    inure, together with the rights and remedies of the Agent
     hereunder, to the benefit of the Agent and each other Lender Party.

Without limiting the generality of the foregoing CLAUSE (C), any Lender may
assign or otherwise transfer (in whole or in part) any Note or Loan held by it
to any other Person or entity, and such other Person or entity shall thereupon
become vested with all the rights and benefits in respect thereof granted to
such Lender under any Loan Document (including this Security Agreement) or

                                       6
<PAGE>

otherwise, subject, however, to any contrary provisions in such assignment or
transfer, and to the provisions of Section 10.11 and Article IX of either Credit
Agreement. Upon the final payment in full of all Obligations, the security
interest granted herein by each Grantor shall terminate and all rights to the
Collateral shall revert to the Grantors. Upon any such termination, the Agent
will, execute and deliver to any Grantor such documents as such Grantor shall
reasonably request to evidence such termination at such Grantor's sole expense.

     SECTION 2.4. GRANTORS REMAINS LIABLE. Anything herein to the contrary
notwithstanding, each Grantor agrees that:

          (a)    such Grantor shall remain liable under the contracts and
     agreements included in the Collateral to the extent set forth therein, and
     shall perform all of its duties and obligations under such contracts and
     agreements to the same extent as if this Security Agreement had not been
     executed,

          (b)    the exercise by the Agent of any of its rights hereunder shall
     not release such Grantor from any of its duties or obligations under any
     such contracts or agreements included in the Collateral, and

          (c)    neither the Agent nor any other Lender Party shall have any
     obligation or liability under any such contracts or agreements included in
     the Collateral by reason of this Security Agreement, nor shall the Agent or
     any other Lender Party be obligated to perform any of the obligations or
     duties of such Grantor thereunder or to take any action to collect or
     enforce any claim for payment assigned hereunder.

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

     SECTION 3.1. REPRESENTATIONS AND WARRANTIES. Each Grantor represents and
warrants unto each Lender Party as set forth in this Article.

     SECTION 3.1.1. LOCATION OF COLLATERAL, ETC. All of the Equipment and
Inventory of such Grantor are located at the places specified in ITEM A and ITEM
B, respectively, of SCHEDULE I hereto. None of the Equipment and Inventory has,
within the four months preceding the date of this Security Agreement, been
located at any place other than the places specified in ITEM A and ITEM B,
respectively, of SCHEDULE I hereto. The place(s) of business and chief executive
office of such Grantor and the offices) where such Grantor keeps its records
concerning the Receivables, and all originals of all chattel paper which
evidence Receivables, are located at the address set forth below the name of
such Grantor on the signature page hereof. Such Grantor does not operate under a
trade name that is different from its legal name. None of the Receivables is
evidenced by a promissory note or other instrument. Such Grantor is not a party
to any Federal, state or local government contract, although it does sell
materials to various municipalities from time to time on ordinary trade terms.

     SECTION 3.1.2. OWNERSHIP, NO LIENS, ETC. Such Grantor owns the Collateral
free and clear of any Lien, security interest, charge or encumbrance except for
the security interest created by this Security Agreement and except as permitted
by the Credit Agreements. No effective

                                       7
<PAGE>

financing statement or other instrument similar in effect covering all or any
part of the Collateral is on file in any recording office, except such as may
have been filed in favor of the Agent relating to this Security Agreement and
the Credit Agreements.

     SECTION 3.1.3. POSSESSION AND CONTROL. Such Grantor has exclusive
possession and control of the Equipment and Inventory.

     SECTION 3.1.4. NEGOTIABLE DOCUMENTS, INSTRUMENTS AND CHATTEL PAPER. Such
Grantor has previously delivered to the Agent possession of all originals of all
negotiable documents, instruments and chattel paper currently owned or held by
such Grantor (duly endorsed in blank, if requested by the Agent).

     SECTION 3.1.5. INTELLECTUAL PROPERTY COLLATERAL. With respect to any
Intellectual Property Collateral the loss, impairment or infringement of which
might have a materially adverse effect on the financial condition, operation,
assets, business, properties or prospects of such Grantor:

          (a)    such Intellectual Property Collateral is subsisting and has not
     been adjudged invalid or unenforceable, in whole or in part;

          (b)    such Intellectual Property Collateral is valid and enforceable;

          (c)    such Grantor has made all necessary filings and recordations to
     protect its interest in such Intellectual Property Collateral, including,
     without limitation, recordations of all of its interests in the Patent
     Collateral and Trademark Collateral in the United States Patent and
     Trademark Office and in corresponding offices throughout the world and its
     claims to the Copyright Collateral in the United States Copyright Office
     and in corresponding offices throughout the world;

          (d)    such Grantor is the exclusive owner of the entire and
     unencumbered right, title and interest in and to such Intellectual Property
     Collateral and no claim has been made that the use of such Intellectual
     Property Collateral does or may violate the asserted rights of any third
     party; and

          (e)    such Grantor has performed and will continue to perform all
     acts and has paid and will continue to pay all required fees and taxes to
     maintain each and every item of Intellectual Property Collateral in full
     force and effect throughout the world, as applicable.

Such Grantor owns directly or is entitled to use by license or otherwise, all
patents, Trademarks, Trade Secrets, copyrights, mask works, licenses,
technology, know-how, processes and rights with respect to any of the foregoing
used in, necessary for or of importance to the conduct of such Grantor's
business. The Schedules hereto contain true and complete listings and
descriptions of all of such Grantor's trademarks, trademark licenses, patents,
patent licenses, copyrights, copyright licenses and trade secrets.

     SECTION 3.1.6. VALIDITY, ETC. This Security Agreement creates a valid first
priority security interest in the Collateral, securing the payment of the
Obligations, and all filings and

                                       8
<PAGE>

other actions necessary or desirable to perfect and protect such security
interest have been duly taken.

     SECTION 3.1.7. AUTHORIZATION, APPROVAL, ETC. No authorization, approval or
other action by, and no notice to or filing with, any governmental authority or
regulatory body is required either

          (a)    for the grant by such Grantor of the security interest granted
     hereby or for the execution, delivery and performance of this Security
     Agreement by such Grantor, or

          (b)  for the perfection of or the exercise by the Agent of its rights
     and remedies hereunder.

     SECTION 3.1.8. COMPLIANCE WITH LAWS. Such Grantor is in compliance with the
requirements of all applicable laws, rules, regulations and orders of every
governmental authority, the non-compliance with which might materially adversely
affect the business, properties, assets, operations, condition (financial or
otherwise) or prospects of such Grantor or the value of the Collateral or the
worth of the Collateral as collateral security.

                                   ARTICLE IV

                                    COVENANTS

     SECTION 4.1. CERTAIN COVENANTS. Each Grantor covenants and agrees that, so
long as any portion of the Obligations shall remain unpaid, such Grantor will,
unless the Required Lenders shall otherwise consent in writing, perform the
obligations set forth in this Section.

     SECTION 4.1.1. AS TO EQUIPMENT AND INVENTORY. Such Grantor hereby agrees
that it shall

          (a)    keep all the Equipment and Inventory (other than Inventory sold
     in the ordinary course of business) at the places therefor specified in
     Section 3.1.1 or, upon 30 days' prior written notice to the Agent, at such
     other places in a jurisdiction where all representations and warranties set
     forth in ARTICLE III (including SECTION 3.1.6) shall be true and correct,
     and all action required pursuant to the FIRST SENTENCE of SECTION 4.1.7
     shall have been taken with respect to the Equipment and Inventory;

          (b)    cause the Equipment to be maintained and preserved in the same
     condition, repair and working order as when new, ordinary wear and tear
     excepted, and in accordance with any manufacturer's manual; and forthwith,
     or in the case of any loss or damage to any of the Equipment, as quickly as
     practicable after the occurrence thereof, make or cause to be made all
     repairs, replacements and other improvements in connection therewith which
     are necessary or desirable to such end; and promptly furnish to the Agent a
     statement respecting any loss or damage to any of the Equipment; and

          (c)    pay promptly when due all property and other taxes, assessments
     and governmental charges or levies imposed upon, and all claims (including
     claims for labor, materials and supplies) against, the Equipment and
     Inventory, except to the extent the

                                       9
<PAGE>

     validity thereof is being contested in good faith by appropriate
     proceedings and for which adequate reserves in accordance with GAAP have
     been set aside.

     SECTION 4.1.2. AS TO RECEIVABLES AND INVESTMENT PROPERTY.

          (a)    Such Grantor shall keep its place(s) of business and chief
     executive office and the offices) where it keeps its records concerning the
     Receivables, and all originals of all chattel paper which evidenced
     Receivables, located at the address set forth in SECTION 3.1.1, or, upon 30
     days' prior written notice to the Agent, at such other locations in a
     jurisdiction where all actions required by the first sentence of SECTION
     4.1.7 shall have been taken with respect to the Receivables; not change its
     name except upon 30 days' prior written notice to the Agent; hold and
     preserve such records and chattel paper; and permit representatives of the
     Agent at any time during normal business hours to inspect and make
     abstracts from such records and chattel paper.

          (b)    Promptly upon the written request of the Agent, such Grantor
     will direct all obligors under any Receivables to make all payments to one
     or more lock boxes. Each lock box will be maintained only pursuant to a
     lock box agreement which is in all respects satisfactory to the Agent and
     which provides, among other things, that (i) until the lock box bank shall
     have received written notice to the contrary from the Agent, the lock box
     bank will make all payments from the lock box to those accounts of such
     Grantor designated by such Grantor, and, after any such notice, the lock
     box bank will make all payments from the lock box to the Agent for credit
     to the Collateral Account, (ii) the lock box bank (if other than the Agent
     or a Lender) waives all set off rights, and (iii) such lock box agreement
     may not be amended without the written consent of the Agent. The Agent will
     not give the notice referred to in the preceding CLAUSE (I) unless it has
     given, or is contemporaneously giving, notice pursuant to CLAUSE (C) of
     this SECTION 4.1.2. No funds, other than proceeds of Collateral, will be
     paid to the lock boxes. Such Grantor will not open any new lock box, or
     terminate any existing lock box, except upon 10 days' prior written notice
     to the Agent.

          (c)    Upon written notice by the Agent to such Grantor pursuant to
     this CLAUSE (C) of this SECTION 4.1.2, all proceeds of Collateral received
     by such Grantor shall be delivered in kind to the Agent for deposit to a
     deposit account (the "COLLATERAL ACCOUNT") of such Grantor maintained with
     the Agent, and such Grantor shall not commingle any such proceeds, and
     shall hold separate and apart from all other property, all such proceeds in
     express trust for the benefit of the Agent until delivery thereof is made
     to the Agent. The Agent will not give the notice referred to in the
     preceding sentence unless there shall have occurred and be continuing a
     Default. No funds, other than proceeds of Collateral, will be deposited in
     the Collateral Account.

          (d)    The Agent shall have the right to apply any amount in the
     Collateral Account to the payment of any Obligations which are due and
     payable or payable upon demand, or to the payment of any Obligations at any
     time that an Event of Default shall exist. Subject to the rights of the
     Agent, such Grantor shall have the right, with respect to and to the extent
     of collected funds in the Collateral Account, as long as there shall be no
     Default, to require the Agent to permit to be transferred upon the
     direction of such

                                       10
<PAGE>

     Grantor any or all of such collected funds. The Agent may at any time
     transfer to such Grantor's general demand deposit accounts any or all of
     the collected funds in the Collateral Account; PROVIDED, HOWEVER, that any
     such transfer shall not be deemed to be a waiver or modification of any of
     the Agent's rights under CLAUSE (D) of this SECTION 4.1.2.

          (e)    Such Grantor will, at the Agent's request, enter into such
     agreements and cause any securities intermediary to enter into such
     agreements as may be necessary to provide the Agent control of all
     investment property.

     SECTION 4.1.3. AS TO COLLATERAL.

          (a)    Until such time as the Agent shall notify such Grantor of the
     revocation of such power and authority such Grantor (i) may in the ordinary
     course of its business, at its own expense, sell, lease or furnish under
     the contracts of service any of the Inventory normally held by such Grantor
     for such purpose, and use and consume, in the ordinary course of its
     business, any raw materials, work in process or materials normally held by
     such Grantor for such purpose, (ii) will, at its own expense, endeavor to
     collect, as and when due, all amounts due with respect to any of the
     Collateral, including the taking of such action with respect to such
     collection as the Agent may reasonably request or, in the absence of such
     request, as such Grantor may deem advisable, and (iii) may grant, in the
     ordinary course of business, to any party obligated on any of the
     Collateral, any rebate, refund or allowance to which such party may be
     lawfully entitled, and may accept, in connection therewith, the return of
     goods, the sale or lease of which shall have given rise to such Collateral.
     The Agent, however, may, at any time, after the occurrence and during the
     continuance of a Default, whether before or after any revocation of such
     power and authority or the maturity of any of the Obligations, notify any
     parties obligated on any of the Collateral to make payment to the Agent of
     any amounts due or to become due thereunder and enforce collection of any
     of the Collateral by suit or otherwise and surrender, release or exchange
     all or any part thereof, or compromise or extend or renew for any period
     (whether or not longer than the original period) any indebtedness
     thereunder or evidenced thereby. Upon request of the Agent, such Grantor
     will, at its own expense, notify any parties obligated on any of the
     Collateral to make payment to the Agent of any amounts due or to become due
     thereunder.

          (b)    The Agent is authorized to endorse, in the name of such
     Grantor, any item, howsoever received by the Agent, representing any
     payment on or other proceeds of any of the Collateral.

     SECTION 4.1.4. AS TO INTELLECTUAL PROPERTY COLLATERAL.

          (a)    Such Grantor shall not, unless such Grantor shall either (i)
     reasonably and in good faith determine (and notice of such determination
     shall have been delivered to the Agent) that any of the Patent Collateral
     is of negligible economic value to such Grantor, or (ii) have a valid
     business purpose to do otherwise, do any act, or omit to do any act,
     whereby any of the Patent Collateral may lapse or become abandoned or
     dedicated to the public or unenforceable.

                                       11
<PAGE>

          (b)    Such Grantor shall not, and such Grantor shall not permit any
     of its licensees to, unless such Grantor shall either (i) reasonably and in
     good faith determine (and notice of such determination shall have been
     delivered to the Agent) that any of the Trademark Collateral is of
     negligible economic value to such Grantor, or (ii) have a valid business
     purpose to do otherwise,

                 (i)    fail to continue to use any of the Trademark Collateral
          in order to maintain all of the Trademark Collateral in full force
          free from any claim of abandonment for non-use,

                 (ii)   fail to maintain as in the past the quality of products
          and services offered under all of the Trademark Collateral,

                 (iii)  fail to employ all of the Trademark Collateral
          registered with any Federal or state or foreign authority with an
          appropriate notice of such registration,

                 (iv)   adopt or use any other Trademark which is confusingly
          similar or a colorable imitation of any of the Trademark Collateral,

                 (v)    use any of the Trademark Collateral registered with any
          Federal or state or foreign authority except for the uses for which
          registration or application for registration of all of the Trademark
          Collateral has been made, and

                 (vi)   do or permit any act or knowingly omit to do any act
          whereby any of the Trademark Collateral may lapse or become invalid or
          unenforceable.

          (c)    Such Grantor shall not, unless such Grantor shall either

                 (i)    reasonably and in good faith determine (and notice of
          such determination shall have been delivered to the Agent) that any of
          the Copyright Collateral or any of the Trade Secrets Collateral is of
          negligible economic value to such Grantor, or

                 (ii)   have a valid business purpose to do otherwise, do or
          permit any act or knowingly omit to do any act whereby any of the
          Copyright Collateral or any of the Trade Secrets Collateral may lapse
          or become invalid or unenforceable or placed in the public domain
          except upon expiration of the end of an unrenewable term of a
          registration thereof.

          (d)    Such Grantor shall notify the Agent immediately if it knows, or
     has reason to know, that any application or registration relating to any
     material item of the Intellectual Property Collateral may become abandoned
     or dedicated to the public or placed in the public domain or invalid or
     unenforceable, or of any adverse determination or development (including
     the institution of, or any such determination or development in, any
     proceeding in the United States Patent and Trademark Office, the United
     States Copyright Office or any foreign counterpart thereof or any court)
     regarding such

                                       12
<PAGE>

     Grantor's ownership of any of the Intellectual Property Collateral, its
     right to register the same or to keep and maintain and enforce the same.

          (e)    In no event shall such Grantor or any of its agents, employees,
     designees or licensees file an application for the registration of any
     Intellectual Property Collateral with the United States Patent and
     Trademark Office, the United States Copyright Office or any similar office
     or agency in any other country or any political subdivision thereof, unless
     it informs the Agent in writing at least 30 days prior to the intended
     making of such filing, and upon request of the Agent, executes and delivers
     any and all agreements, instruments, documents and papers as the Agent may
     reasonably request to evidence the Agent's security interest in such
     Intellectual Property Collateral and the goodwill and general intangibles
     of such Grantor relating thereto or represented thereby.

          (f)    Such Grantor shall take all necessary steps, including in any
     proceeding before the United States Patent and Trademark Office, the United
     States Copyright Office or any similar office or agency in any other
     country or any political subdivision thereof, to maintain and pursue any
     application (and to obtain the relevant registration) filed with respect
     to, and to maintain any registration of, the Intellectual Property
     Collateral, including the filing of applications for renewal, affidavits of
     use, affidavits of incontestability and opposition, interference and
     cancellation proceedings and the payment of fees and taxes (except to the
     extent that dedication, abandonment or invalidation is permitted under the
     foregoing CLAUSES (A), (B) and (C)).

          (g)    Such Grantor shall, contemporaneously herewith, execute and
     deliver to the Agent an Agreement (Trademark) in the form of EXHIBIT A
     hereto, amending and restating, in its entirety, the Supplement, and shall
     execute and deliver to the Agent any other document required to acknowledge
     or register or perfect the Agent's interest in any part of the Intellectual
     Property Collateral.

     SECTION 4.1.5. INSURANCE. Such Grantor will maintain or cause to be
maintained with responsible insurance companies insurance with respect to the
Equipment and Inventory against such casualties and contingencies and of such
types and in such amounts as is customary in the case of similar businesses and
will, upon the request of the Agent, furnish a certificate of a reputable
insurance broker setting forth the nature and extent of all insurance maintained
by such Grantor in accordance with this Section. Without limiting the foregoing,
such Grantor further agrees as follows:

          (a)    Each policy for property insurance shall show the Agent as a
     loss payee.

          (b)    Each policy for liability insurance shall show the Agent as an
     additional insured.

          (c)    With respect to each life insurance policy, such Grantor shall
     execute and deliver to the Agent a collateral assignment, notice of which
     has been acknowledged in writing by the insurer.

          (d)    Each insurance policy shall provide that at least 30 days'
     prior written notice of cancellation or of lapse shall be given to the
     Agent by the insured.

                                       13
<PAGE>

          (e)    Such Grantor shall, if so requested by the Agent, deliver to
     the Agent a copy of each insurance policy.

          (f)    All payments in respect of property insurance and life
     insurance shall be deposited to the Collateral Account of such Grantor and
     if there shall be no Collateral Account of such Grantor shall be paid to
     such Grantor.

     SECTION 4.1.6. TRANSFERS AND OTHER LIENS. Such Grantor shall not:

          (a)    sell, assign (by operation of law or otherwise) or otherwise
     dispose of any of the Collateral, except Inventory in the ordinary course
     of business or as permitted by the Credit Agreements; or

          (b)    create or suffer to exist any Lien or other charge or
     encumbrance upon or with respect to any of the Collateral to secure
     Indebtedness of any Person or entity, except for the security interest
     created by this Security Agreement and except as permitted by the Credit
     Agreements.

          (c)    Such Grantor will defend the right, title and interest of the
     Agent in and to any of such Grantor's rights under the Related Contracts
     and to the Inventory and Equipment and all other Collateral and in and to
     the Proceeds and products thereof against the claims and demands of all
     persons whomsoever.

     SECTION 4.1.7. NOTICES. Such Grantor will, upon obtaining knowledge
thereof, advise the Agent promptly, in reasonable detail, (a) of any lien,
security interest, encumbrance or claims made or asserted against any of the
Collateral, (b) of any material change in the value of the Collateral, and (c)
of the occurrence of any other event which would have a Materially Adverse
Effect on the aggregate value of the Collateral or on the security interests
created hereunder.

     SECTION 4.1.8. CONTINUOUS PERFECTION. Such Grantor will not change its
name, identity or corporate structure in any manner which might make any
financing or continuation statement filed hereunder seriously misleading within
the meaning of Section 9-506 of the UCC (or any other then applicable provision
of the UCC) unless such Grantor shall have given the Agent at least 90 days'
prior written notice thereof or shall have delivered to the Agent (i)
acknowledgment copies of UCC-3 financing statements duly executed and duly filed
in each jurisdiction in which UCC filings were required in order to perfect the
security interest granted by this Agreement in the Collateral and shall have
taken all action (or made arrangements to take such action substantially
simultaneously with such change if it is impossible to take such action in
advance) necessary or reasonably requested by the Agent to amend such financing
statement or continuation statement so that it is not seriously misleading, and
(ii), with respect to the Patent Collateral, Trademark Collateral and Copyright
Collateral, make all filings necessary in the United States Patent and Trademark
Office and the United States Copyright Office, as applicable necessary to
reflect such name change.

     SECTION 4.1.9. FURTHER ASSURANCES, ETC. Such Grantor agrees that, from time
to time at its own expense, such Grantor will promptly execute and deliver all
further instruments and documents, and take all further action, that may be
necessary or desirable, or that the Agent may request, in order to perfect,
preserve and protect any security interest granted or purported to be

                                       14
<PAGE>

granted hereby or to enable the Agent to exercise and enforce its rights and
remedies hereunder with respect to any Collateral. Without limiting the
generality of the foregoing, such Grantor will

          (a)    mark conspicuously each document included in the Inventory,
     each chattel paper included in the Receivables and each Related Contract
     and, at the request of the Agent, each of its records pertaining to the
     Collateral with a legend, in form and substance satisfactory to the Agent,
     indicating that such document, chattel paper, Related Contract or
     Collateral is subject to the security interest granted hereby;

          (b)    if any Receivable shall be evidenced by a promissory note or
     other instrument, negotiable document or chattel paper, deliver and pledge
     to the Agent hereunder such promissory note, instrument, negotiable
     document or chattel paper duly endorsed and accompanied by duly executed
     instruments of transfer or assignment, all in form and substance
     satisfactory to the Agent;

          (c)    execute and file such financing or continuation statements, or
     amendments thereto, and such other instruments or notices, as may be
     necessary or desirable, or as the Agent may request, in order to perfect
     and preserve the security interests and other rights granted or purported
     to be granted to the Agent hereby; and

          (d)    furnish to the Agent, from time to time at the Agent's request,
     statements and schedules further identifying and describing the Collateral
     and such other reports in connection with the Collateral as the Agent may
     reasonably request, all in reasonable detail.

With respect to the foregoing and the grant of the security interest hereunder,
such Grantor hereby authorizes the Agent to file one or more financing or
continuation statements, and amendments thereto, relative to all or any part of
the Collateral without the signature of such Grantor where permitted by law. A
carbon, photographic or other reproduction of this Security Agreement or any
financing statement covering the Collateral or any part thereof shall be
sufficient as a financing statement where permitted by law.

                                    ARTICLE V

                                    THE AGENT

     SECTION 5.1. AGENT APPOINTED ATTORNEY-IN-FACT. Each Grantor hereby
irrevocably appoints the Agent as such Grantor's attorney-in-fact, with full
authority in the place and stead of such Grantor and in the name of such Grantor
or otherwise, from time to time in the Agent's discretion, to take any action
and to execute any instrument which the Agent may deem necessary or advisable to
accomplish the purposes of this Security Agreement, including, without
limitation:

          (a)    to ask, demand, collect, sue for, recover, compromise, receive
     and give acquittance and receipts for moneys due and to become due under or
     in respect of any of the Collateral;

                                       15
<PAGE>

          (b)    to receive, endorse, and collect any drafts or other
     instruments, documents and chattel paper, in connection with CLAUSE (A
     above;

          (c)    to file any claims or take any action or institute any
     proceedings which the Agent may deem necessary or desirable for the
     collection of any of the Collateral or otherwise to enforce the rights of
     the Agent with respect to any of the Collateral; and

          (d)    to perform the affirmative obligations of such Grantor
     hereunder (including all obligations of such Grantor pursuant to SECTION
     4.1.7).

Each Grantor hereby acknowledges, consents and agrees that the power of attorney
granted pursuant to this Section is irrevocable and coupled with an interest.

     SECTION 5.2. AGENT MAY PERFORM. If any of the Grantors fail to perform any
agreement contained herein, the Agent may itself perform, or cause performance
of, such agreement, and the expenses of the Agent incurred in connection
therewith shall be payable by the applicable Grantor pursuant to SECTION 6.2.

     SECTION 5.3. AGENT HAS NO DUTY. In addition to, and not in limitation of,
SECTION 2.4, the powers conferred on the Agent hereunder are solely to protect
its interest (on behalf of the Lender Parties) in the Collateral and shall not
impose any duty on it to exercise any such powers. Except for reasonable care of
any Collateral in its possession and the accounting for moneys actually received
by it hereunder, the Agent shall have no duty as to any Collateral or as to the
taking of any necessary steps to preserve rights against prior parties or any
other rights pertaining to any Collateral.

     SECTION 5.4. REASONABLE CARE. The Agent is required to exercise reasonable
care in the custody and preservation of any of the Collateral in its possession;
PROVIDED, HOWEVER, the Agent shall be deemed to have exercised reasonable care
in the custody and preservation of any of the Collateral, if it takes such
action for that purpose as any of the Grantors reasonably request in writing at
times other than upon the occurrence and during the continuance of any Event of
Default, but failure of the Agent to comply with any such request at any time
shall not in itself be deemed a failure to exercise reasonable care.

                                   ARTICLE VI

                                    REMEDIES

     SECTION 6.1. CERTAIN REMEDIES. (a) If any Event of Default shall have
occurred and be continuing:

                 (i)    The Agent may exercise in respect of the Collateral, in
          addition to other rights and remedies provided for herein or otherwise
          available to it, all the rights and remedies of a secured party on
          default under the UCC (whether or not the UCC applies to the affected
          Collateral) and also may

                        (A)   require the Grantors to, and the Grantors hereby
                 agrees that it will, at its expense and upon request of the
                 Agent forthwith, assemble all

                                       16
<PAGE>

                 or part of the Collateral as directed by the Agent and make it
                 available to the Agent at a place to be designated by the Agent
                 which is reasonably convenient to both parties and

                        (B)   without notice except as specified below, sell the
                 Collateral or any part thereof in one or more parcels at public
                 or private sale, at any of the Agent's offices or elsewhere,
                 for cash, on credit or for future delivery, and upon such other
                 terms as the Agent may deem commercially reasonable. The
                 Grantors agrees that, to the extent notice of sale shall be
                 required by law, at least ten days' prior notice to the
                 Grantors of the time and place of any public sale or the time
                 after which any private sale is to be made shall constitute
                 reasonable notification. The Agent shall not be obligated to
                 make any sale of Collateral regardless of notice of sale having
                 been given. The Agent may adjourn any public or private sale
                 from time to time by announcement at the time and place fixed
                 therefor, and such sale may, without further notice, be made at
                 the time and place to which it was so adjourned.

                 (ii)   All cash proceeds received by the Agent in respect of
          any sale of, collection from, or other realization upon all or any
          part of the Collateral may, in the discretion of the Agent, be held by
          the Agent as collateral for, and/or then or at any time thereafter
          applied (after payment of any amounts payable to the Agent pursuant to
          SECTION 6.2) in whole or in part by the Agent for the ratable benefit
          of the Lender Parties against, all or any part of the Obligations in
          such order as the Agent shall elect. Any surplus of such cash or cash
          proceeds held by the Agent and remaining after final payment in full
          of all the Obligations shall be paid over to the Grantors or to
          whomsoever may be lawfully entitled to receive such surplus.

          (b)    In furtherance of, and not in limitation of, the foregoing, the
     Agent, without demand of performance or other demand, advertisements or
     notice of any kind (except the notice specified below of time and place of
     public or private sale) to or upon the Grantors or any other Person (all
     and each of which demands, advertisements and/or notices are hereby
     expressly waived), may, whenever an Event of Default shall have occurred
     and be continuing, in a commercially reasonable manner, forthwith collect,
     receive, appropriate and realize upon the Collateral, or any part thereof,
     and/or may forthwith sell, assign, give option or options to purchase,
     contract to sell or otherwise dispose of and deliver said Collateral, or
     any part thereof, in one or more parcels at public or private sale or
     sales, at any exchange, broker's board or at any of the Agent's offices 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, with the right to the Agent
     upon any such sale or sales, public or private, to purchase the whole or
     any part of said Collateral so sold, free of any right or equity of
     redemption in the Grantors, which right or equity is hereby expressly
     waived or released. The Agent shall apply the net proceeds of any such
     collection, recovery, receipt, appropriation, realization or sale, after
     deducting all reasonable costs and expenses of every kind incurred therein
     or incidental to the care, safekeeping or otherwise of any and

                                       17
<PAGE>

     all of the Collateral or in any way relating to the rights of the Agent
     hereunder, including reasonable attorneys' fees and legal expenses, to the
     payment in whole or in part of the Obligations in such order as the Agent
     may elect, the Grantors remaining liable for any deficiency remaining
     unpaid after such application and all fees and expenses incurred by the
     Agent in collecting such deficiency, and only after so paying over such net
     proceeds and after the payment by the Agent of any other amount required by
     any provision of law, including, without limitation, Section 9-615 of the
     UCC, need the Agent account for the surplus, if any, to the Grantors.
     Unless the Collateral is perishable or threatens to decline speedily in
     value or is of a type customarily sold on a recognized market, in which
     event no notification is required, the Grantors agree that the Agent need
     not give more than ten days' notice of the time and place of any public
     sale or of the time after which a private sale or other intended
     disposition is to take place and that such notice is reasonable
     notification of such matters. No notification need be given to any Grantors
     if such Grantor has signed after default a statement renouncing or
     modifying any right to notification of sale or other intended disposition.
     The Grantors further agree to waive and agree not to assert any rights or
     privileges which they may acquire under Section 9-615 of the UCC.

     For the purpose of enabling the Agent to exercise rights and remedies under
this Agreement and the Security Agreement Supplement, at such time as the Agent
shall be lawfully entitled to exercise such rights and remedies, and for no
other purpose, but as a supplement to and not in limitation of any and all other
rights and remedies available to the Agent and to the extent the Agent chooses
to avail itself of the following, the grants, to the extent not prohibited by
applicable law or existing licenses granted in the ordinary course of business
(unless and until appropriate consents have been obtained), to the Agent an
irrevocable, non-exclusive license (exercisable without payment of royalty or
other compensation to the Borrower), which license shall be exercisable by the
Agent upon and subject to the occurrence and during the continuance of an Event
of Default, to use, license or sublicense and to enhance, alter or otherwise
modify any Patent Collateral, Copyright Collateral and, subject the maintenance
of quality standards comparable to those heretofore maintained by each Grantor
in connection with the same or similar goods and services, Trademark Collateral,
now owned or hereafter acquired by such Grantor (including, in the case of a
license with respect to Copyright Collateral, reasonable access to all media in
which any of the licensed items may be recorded or stored and to all computer
hardware used for the compilation, storage or printout thereof); PROVIDED,
HOWEVER, that (i) to the extent such Patent Collateral consists of patent
licenses or other agreements that provide such Grantor with the right to use
patented technology, the non-exclusive license granted hereby to the Agent shall
be subject to the terms and conditions contained in such patent licenses or such
other agreements, including without limitation restrictions on the right to
sub-license, (ii) to the extent such Copyright Collateral consists of copyright
and/or mask work licenses or other agreements that provide such Grantor with the
right to use any of the types of items referred to in CLAUSE (I) of the
definition of "Copyright Collateral", the non-exclusive license granted hereby
to the Agent shall be subject to the terms and conditions contained in such
copyright and/or mask work licenses or such other agreements, including without
limitation restrictions on the right to sub-license, as the case may be, and
(iii) to the extent such Trademark Collateral consists of trademark licenses or
other agreements that provide such Grantor with the right to use any of the
types of items referred to in CLAUSE (I) of the definition of "Trademark
Collateral", the non-exclusive license granted hereby to the Agent shall be
subject to the terms and conditions

                                       18
<PAGE>

contained in such trademark license or other agreements, including without
limitation, restrictions on the right to sub-license, as the case may be.

     SECTION 6.1.2. INDEMNITY AND EXPENSES.

          (a)    Each Grantor agrees to indemnify the Agent from and against any
     and all claims, losses and liabilities arising out of or resulting from
     this Security Agreement (including, without limitation, enforcement of this
     Security Agreement), except claims, losses or liabilities resulting from
     the Agent's gross negligence or wilful misconduct.

          (b)    Each Grantor will upon demand pay to the Agent the amount of
     any and all reasonable expenses, including the reasonable fees and
     disbursements of its counsel and of any experts and agents, which the Agent
     may incur in connection with

                 (i)    the administration of this Security Agreement,

                 (ii)   the custody, preservation, use or operation of, or the
          sale of, collection from, or other realization upon, any of the
          Collateral,

                 (iii)  the exercise or enforcement of any of the rights of the
          Agent or the Lender Parties hereunder, and

                 (iv)   the failure by such Grantor to perform or observe any of
          the provisions hereof.

                                   ARTICLE VII

                            MISCELLANEOUS PROVISIONS

     SECTION 7.1. LOAN DOCUMENT. This Security Agreement is a Loan Document
executed pursuant to the Credit Agreements and shall (unless otherwise expressly
indicated herein) be construed, administered and applied in accordance with the
terms and provisions thereof (including as to the WAIVER OF JURY TRIAL with
respect to any litigation relating to or arising out of any matter herein).

     SECTION 7.2. CONTINUATION OF SECURITY INTEREST. This Security Agreement is
an amendment and restatement of the Existing Subsidiary Security Agreement and
the security interest granted thereunder shall be deemed to be continued
hereunder.

     SECTION 7.3. AMENDMENTS; ETC. No amendment to or waiver of any provision of
this Security Agreement nor consent to any departure by the Grantors herefrom,
shall in any event be effective unless the same shall be in writing and signed
by the Agent, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

     SECTION 7.4. ADDRESSES FOR NOTICES. All notices and other communications
provided for hereunder shall be in writing (including telegraphic communication)
and, if to the Grantors, mailed or telegraphed or delivered to each Grantor,
addressed to each Grantor at the address set

                                       19
<PAGE>

forth below each Grantor's signature hereto, if to the Agent, mailed or
delivered to it, addressed to it at the address of the Agent specified in the
Credit Agreements, or as to either party at such other address as shall be
designated by such party in a written notice to each other party complying as to
delivery with the terms of this Section. All such notices and other
communications shall, when mailed or telegraphed, respectively, be effective
when deposited in the mails or delivered to the telegraph company, respectively,
addressed as aforesaid.

     SECTION 7.5. SECTION CAPTIONS. Section captions used in this Security
Agreement are for convenience of reference only, and shall not affect the
construction of this Security Agreement.

     SECTION 7.6. SEVERABILITY. Wherever possible each provision of this
Security Agreement shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Security Agreement
shall be prohibited by or invalid under such law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Security Agreement.

     SECTION 7.7. GOVERNING LAW, ENTIRE AGREEMENT, ETC. THIS SECURITY AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE
STATE OF ILLINOIS, EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF THE
SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR
COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF
ILLINOIS. THIS SECURITY AGREEMENT AND THE OTHER LOAN DOCUMENTS CONSTITUTE THE
ENTIRE UNDERSTANDING AMONG THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER
HEREOF AND SUPERSEDE ANY PRIOR AGREEMENTS, WRITTEN OR ORAL, WITH RESPECT
THERETO.

                             [SIGNATURES TO FOLLOW]

                                       20
<PAGE>

     IN WITNESS WHEREOF, the Grantors have caused this Security Agreement to be
duly executed and delivered by its officer thereunto duly authorized as of the
date first above written.

                          AMERICAN EDUCATIONAL PRODUCTS LLC

                          By: /s/ Steven B. Lapin
                              -------------------
                              Title: Vice President

                              Address:              401 Hickory Street
                                                    Fort Collins, Colorado 80522

                              Attention:            Michael Anderson
                                                    General Manager

                              Telecopier No.:       970-484-3733

                              Copy to:              The Aristotle Corporation
                                                    96 Cummings Point Road
                                                    Stamford, Connecticut
                                                    06902

                              Attention:            Paul McDonald
                                                    Chief Financial Officer

                              Telecopier No.:       203-348-3103

                              Copy to:              Nasco Division
                                                    901 Janesville Avenue
                                                    Fort Atkinson, Wisconsin
                                                    53538-0901

                              Attention:            Dean T. Johnson
                                                    Chief Financial Officer

                              Telecopier No.:       414-563-0234

                                      S-1        AMENDED AND RESTATED SUBSIDIARY
                                                              SECURITY AGREEMENT
<PAGE>

                          SCOTT RESOURCES LLC

                          By: /s/ Steven B. Lapin
                              -------------------
                              Title: Vice President

                              Address:              401 Hickory Street
                                                    Fort Collins, Colorado 80522

                              Attention:            Michael Anderson
                                                    General Manager

                              Telecopier No.:       970-484-3733

                              Copy to:              The Aristotle Corporation
                                                    96 Cummings Point Road
                                                    Stamford, Connecticut
                                                    06902

                              Attention:            Paul McDonald
                                                    Chief Financial Officer

                              Telecopier No.:       203-348-3103

                              Copy to:              Nasco Division
                                                    901 Janesville Avenue
                                                    Fort Atkinson, Wisconsin
                                                    53538-0901

                              Attention:            Dean T. Johnson
                                                    Chief Financial Officer

                              Telecopier No.:       414-563-0234

                                      S-2        AMENDED AND RESTATED SUBSIDIARY
                                                              SECURITY AGREEMENT
<PAGE>

                          HUBBARD SCIENTIFIC LLC

                          By: /s/ Steven B. Lapin
                              -------------------
                              Title: Vice President

                              Address:              401 Hickory Street
                                                    Fort Collins, Colorado 80522

                              Attention:            Michael Anderson
                                                    General Manager

                              Telecopier No.:       970-484-3733

                              Copy to:              The Aristotle Corporation
                                                    96 Cummings Point Road
                                                    Stamford, Connecticut
                                                    06902

                              Attention:            Paul McDonald
                                                    Chief Financial Officer

                              Telecopier No.:       203-348-3103

                              Copy to:              Nasco Division
                                                    901 Janesville Avenue
                                                    Fort Atkinson, Wisconsin
                                                    53538-0901

                              Attention:            Dean T. Johnson
                                                    Chief Financial Officer

                              Telecopier No.:       414-563-0234

                                      S-3        AMENDED AND RESTATED SUBSIDIARY
                                                              SECURITY AGREEMENT
<PAGE>

                          ACCEPTED:

                          BANK OF AMERICA, N.A., as Agent

                          By: /s/ David Johanson
                              ------------------
                              Title: Vice President

                              Address:              231 South LaSalle Street
                                                    Chicago, Illinois  60697

                              Telecopier No.:  877-206-8410

                              Attention:            David Johanson

                                      S-4        AMENDED AND RESTATED SUBSIDIARY
                                                              SECURITY AGREEMENT
<PAGE>

        SCHEDULES TO AMENDED AND RESTATED SUBSIDIARY SECURITY AGREEMENT

Schedule I - Location of Collateral

Schedule II - Patenets

Schedule III - Trademarks

Schedule IV - Copyrights

Schedule V - Trade Secrets

<PAGE>

                                    EXHIBIT A
                              to Security Agreement

                   AMENDED AND RESTATED AGREEMENT (TRADEMARK)

     THIS AMENDED AND RESTATED AGREEMENT (TRADEMARK), dated as of June 27, 2002
(as modified from time to time, this "AGREEMENT"), made by AMERICAN EDUCATIONAL
PRODUCTS LLC, a Colorado limited liability company (the "COMPANY"), EACH
SUBSIDIARY OF THE COMPANY LISTED ON THE SIGNATURE PAGES HEREOF, EACH OTHER
PERSON OR ENTITY WHICH FROM TIME TO TIME BECOMES A PARTY HERETO (collectively,
including the Company, the "GRANTORS" and individually each a "GRANTOR"), in
favor of BANK OF AMERICA, N.A., as administrative agent (together with any
successor(s) thereto in such capacity, the "AGENT") for each of the financial
institutions (individually a "LENDER" and collectively the "LENDERS") which are
or may from time to time become, parties to the Credit Agreements referred to
below.

                               W I T N E S S E T H

     WHEREAS, the parties or their predecessors have entered into that certain
First Amendment to Amended and Restated Credit Agreement (Five Year) and
Consent, dated as of June 17, 2002 which amends the Amended and Restated Credit
Agreement (Five Year), dated as of May 29, 2001 (as amended, supplemented and
otherwise modified, the "CREDIT AGREEMENT (FIVE YEAR)"), among Nasco
International, Inc., a Wisconsin corporation (the "PARENT"), the lenders parties
thereto and the Agent; and

     WHEREAS, the parties or their predecessors have entered into that certain
Second Amendment to Amended and Restated Credit Agreement (364 Days) and
Consent, dated as of June 17, 2002 which amends the Amended and Restated Credit
Agreement (364 Days), dated as of May 29, 2001 (as amended, supplemented and
otherwise modified, the "CREDIT AGREEMENT (364 DAYS)" and together with the
Credit Agreement (Five Year), the "CREDIT AGREEMENTS"), among the Parent, the
lenders party thereto and the Agent; and

     WHEREAS, the parties or their predecessors have entered into that certain
Agreement (Trademark), dated as of August 20, 2001 (the "EXISTING AGREEMENT
(TRADEMARK)"), and wish to amend and restate such Existing Agreement (Trademark)
as set forth in this Agreement.

     WHEREAS, it is a condition precedent to any extension of credit under the
Credit Agreements, that the Grantors enter into the Security Agreement to grant
to the Agent a continuing security interest in all of the "Collateral"
identified therein, and, in connection with and to supplement the Security
Agreement, enter into this Agreement, to, among other things, confirm and ratify
its grant to the Agent of a continuing security interest in the Trademark
Collateral;

     NOW, THEREFORE, for good and valuable consideration the receipt of which is
hereby acknowledged, in order to induce the Lenders to make Loans (including the
initial Loans) to the Parent from time to time pursuant to the Credit Agreements
and in order to amend and restate the

                                      A-1

<PAGE>

Existing Agreement (Trademark), the Grantors hereby agrees with the Agent, for
its benefit and the ratable benefit of each Lender Party, as follows:

     SECTION 1. DEFINITIONS. Unless otherwise defined herein or the context
otherwise requires, terms used in this Agreement, including its preamble and
recitals, have the meanings provided in the Security Agreement.

     SECTION 2. _______CONFIRMATION AND GRANT OF SECURITY INTEREST. For good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, each Grantor hereby pledges and assigns to the Agent, for its
benefit and the ratable benefit of the Lender Parties, and granted to the Agent,
for its benefit and the ratable benefit of the Lender Parties, a continuing
security interest in and to, all of the Trademark Collateral, as defined
therein. Each Grantor hereby ratifies and restates such pledge, assignment and
grant, and with greater specificity hereby assigns and pledges to the Agent for
its benefit and the ratable benefit of each of the Lender Parties, and does
hereby grant, mortgage, pledge and hypothecate to the Agent for its benefit and
the ratable benefit of each of the Lender Parties, a continuing security
interest in and to all of the following, whether now or hereafter existing or
acquired (the "TRADEMARK COLLATERAL"):

          (a)    all trademarks, trade names, corporate names, company names,
     business names, fictitious business names, trade styles, service marks,
     certification marks, collective marks, logos, other source of business
     identifiers, prints and labels on which any of the foregoing have appeared
     or appear, designs and general intangibles of a like nature (all of the
     foregoing items in this CLAUSE (A) being collectively called a
     "TRADEMARK"), now existing anywhere in the world or hereafter adopted or
     acquired, whether currently in use or not, all registrations and recordings
     thereof and all applications in connection therewith, whether pending or in
     preparation for filing, including registrations, recordings and
     applications in the United States Patent and Trademark Office or in any
     office or agency of the United States of America or any State thereof or
     any foreign country, including those referred to in ITEM A of ATTACHMENT 1
     hereto;

          (b)    all Trademark licenses, including each Trademark license
     referred to in ITEM B of ATTACHMENT 1 hereto;

          (c)    all reissues, extensions or renewals of any of the items
     described in CLAUSES (A) and (B);

          (d)    all of the goodwill of the business connected with the use of,
     and symbolized by the items described in, CLAUSES (A) and (B); and

          (e)    all proceeds of, and rights associated with, the foregoing,
     including any claim by such Grantor against third parties for past,
     present, or future infringement or dilution of any Trademark, Trademark
     registration or Trademark license, including any Trademark, Trademark
     registration or Trademark license referred to in ITEM A and ITEM B of
     ATTACHMENT 1 hereto, or for any injury to the goodwill associated with the
     use of any Trademark or for breach or enforcement of any Trademark license.

                                      A-2
<PAGE>

     SECTION 3. SECURITY AGREEMENT. This Agreement has been executed and
delivered by the Grantors for the purpose of, among other things, ratifying and
confirming the grant of the Trademark Collateral to the Agent for the benefit of
the Lender Parties and registering (and confirming the recordation pursuant to
the Security Agreement of) the security interest of the Agent in the Trademark
Collateral with the United States Patent and Trademark Office and corresponding
offices in other countries of the world. The security interest confirmed and
granted hereby has been confirmed and granted as a supplement to, and not in
limitation of, the security interest confirmed and granted to the Agent for its
benefit and the benefit of each Lender Party under the Security Agreement. The
Security Agreement (and all rights and remedies of the Agent and each Lender
Party thereunder) shall remain in full force and effect in accordance with its
terms.

     SECTION 4. RELEASE OF SECURITY INTEREST. Upon payment in full of all
Obligations, the Agent shall, at the Grantors' expense, execute and deliver to
each Grantor all instruments and other documents as may be necessary or proper
to release the lien on and security interest in the Trademark Collateral which
has been granted hereunder.

     SECTION 5. ACKNOWLEDGMENT. Each Grantor does hereby further acknowledge and
affirm that the rights and remedies of the Agent with respect to the security
interest in the Trademark Collateral granted and confirmed hereby are more fully
set forth in the Security Agreement, the terms and provisions of which
(including the remedies provided for therein) are incorporated by reference
herein as if fully set forth herein.

     SECTION 6. LOAN DOCUMENT, ETC. This Agreement is a Loan Document executed
pursuant to the Credit Agreement and shall (unless otherwise expressly indicated
herein) be construed, administered and applied in accordance with the terms and
provisions of the Credit Agreement.

     SECTION 7. COUNTERPARTS. This Agreement may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original
and all of which shall constitute together but one and the same agreement.

                             [SIGNATURES TO FOLLOW]

                                      A-3
<PAGE>

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

                        AMERICAN EDUCATIONAL PRODUCTS LLC

                        By:
                            -------------------
                            Title:

                            Address:              401 Hickory Street
                                                  Fort Collins, Colorado 80522

                            Attention:            Michael Anderson
                                                  General Manager

                            Telecopier No.:       970-484-3733

                            Copy to:              The Aristotle Corporation
                                                  96 Cummings Point Road
                                                  Stamford, Connecticut
                                                  06902

                            Attention:            Paul McDonald
                                                  Chief Financial Officer

                            Telecopier No.:       203-348-3103

                            Copy to:              Nasco Division
                                                  901 Janesville Avenue
                                                  Fort Atkinson, Wisconsin
                                                  53538-0901

                            Attention:            Dean T. Johnson
                                                  Chief Financial Officer

                            Telecopier No.:       414-563-0234

                                      A-4
<PAGE>

                        SCOTT RESOURCES LLC

                        By:
                            -------------------
                            Title:

                            Address:              401 Hickory Street
                                                  Fort Collins, Colorado 80522

                            Attention:            Michael Anderson
                                                  General Manager

                            Telecopier No.:       970-484-3733

                            Copy to:              The Aristotle Corporation
                                                  96 Cummings Point Road
                                                  Stamford, Connecticut
                                                  06902

                            Attention:            Paul McDonald
                                                  Chief Financial Officer

                            Telecopier No.:       203-348-3103

                            Copy to:              Nasco Division
                                                  901 Janesville Avenue
                                                  Fort Atkinson, Wisconsin
                                                  53538-0901

                            Attention:            Dean T. Johnson
                                                  Chief Financial Officer

                            Telecopier No.:       414-563-0234

                                      A-5
<PAGE>

                        HUBBARD SCIENTIFIC LLC

                        By:
                            -------------------
                            Title:

                            Address:              401 Hickory Street
                                                  Fort Collins, Colorado 80522

                            Attention:            Michael Anderson
                                                  General Manager

                            Telecopier No.:       970-484-3733

                            Copy to:              The Aristotle Corporation
                                                  96 Cummings Point Road
                                                  Stamford, Connecticut
                                                  06902

                            Attention:            Paul McDonald
                                                  Chief Financial Officer

                            Telecopier No.:       203-348-3103

                            Copy to:              Nasco Division
                                                  901 Janesville Avenue
                                                  Fort Atkinson, Wisconsin
                                                  53538-0901

                            Attention:            Dean T. Johnson
                                                  Chief Financial Officer

                            Telecopier No.:       414-563-0234

                                       A-6
<PAGE>

                        ACCEPTED:

                        BANK OF AMERICA, N.A., as Agent

                        By:
                            ------------------
                            Title:

                            Address:              231 South LaSalle Street
                                                  Chicago, Illinois  60697

                            Telecopier No.:  877-206-8410

                            Attention:            David Johanson

                                      A-7
<PAGE>

                                  EXHIBIT A to
                              Agreement (Trademark)

                                 FORM OF JOINDER
                                 ---------------

     Reference is made to the Agreement (Trademark), dated as of _________ __,
2002 (as amended and restated, modified supplemented or renewed from time to
time the "AGREEMENT") made by __________, a corporation in favor of Bank of
America, N.A., as agent.

     All capitalized terms used in this Joinder which are defined in the
Agreement shall have the meanings set forth therein unless otherwise defined or
the context otherwise requires.

     Each of the undersigned hereby agrees that effective the date hereof, it
shall be a Grantor under the Agreement. Each of the undersigned agrees to be
bound by the terms and conditions of the Agreement as a Grantor.

     [In connection herewith, each of the undersigned shall deliver all of the
information required to update Attachment 1 to the Agreement.]

     IN WITNESS WHEREOF, the undersigned have executed this Joinder this ___ day
of __________, ___ 2002.

                                          [NAME OF SUBSIDIARY]

                                          By:  _________________________________
                                               Title:___________________________

ACKNOWLEDGED AND
     CONSENTED TO:

BANK OF AMERICA, N.A.

By:  ____________________________________
     Title:______________________________

BANK ONE, WISCONSIN

By:  ____________________________________
     Title:______________________________

                                      A-9

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