Document:

<PAGE>

                                                                [EXECUTION COPY]

                                CREDIT AGREEMENT,

                         dated as of November 17, 1999,

                                      among

                            WEEKLY READER CORPORATION
                                       and
                            JLC LEARNING CORPORATION,
                                as the Borrowers,

                WRC MEDIA INC. (formerly known as EAC II, INC.),
                                 as a Guarantor,

                VARIOUS FINANCIAL INSTITUTIONS FROM TIME TO TIME
                                 PARTIES HERETO,
                                 as the Lenders,

                           DLJ CAPITAL FUNDING, INC.,
                 as the Syndication Agent, the Lead Arranger and
                         the Sole Book Running Manager,

                             BANK OF AMERICA, N.A.,
                  as the Administrative Agent for the Lenders,

                                       and

           GENERAL ELECTRIC CAPITAL CORPORATION, as the Documentation
                             Agent for the Lenders.

<PAGE>

<TABLE>
<CAPTION>
SECTION                                                                                               PAGE

                                TABLE OF CONTENTS

SECTION                                                                                               PAGE

                                    ARTICLE I
                        DEFINITIONS AND ACCOUNTING TERMS
<S>   <C>                                                                                              <C>
1.1.  Defined Terms......................................................................................4
1.2.  Use of Defined Terms..............................................................................41
1.3.  Cross-References..................................................................................41
1.4.  Accounting and Financial Determinations...........................................................41

                                   ARTICLE II
                       COMMITMENTS, BORROWING AND ISSUANCE
                     PROCEDURES, NOTES AND LETTERS OF CREDIT

2.1.  Commitments.......................................................................................41
2.1.1.  Revolving Loan Commitment and Swing Line
           Loan Commitment..............................................................................41
2.1.2.  Letter of Credit Commitment.....................................................................42
2.1.3.  Term Loan Commitment............................................................................43
2.2.  Reduction of the Commitment Amounts...............................................................43
2.2.1.  Optional........................................................................................43
2.2.2.  Mandatory.......................................................................................43
2.3.  Borrowing Procedures..............................................................................44
2.3.1.  Borrowing Procedure.............................................................................44
2.3.2.  Swing Line Loans................................................................................44
2.4.  Continuation and Conversion Elections.............................................................45
2.5.  Funding...........................................................................................46
2.6.  Issuance Procedures...............................................................................46
2.6.1.  Other Lenders' Participation....................................................................47
2.6.2.  Disbursements; Conversion to Revolving
           Loans........................................................................................47
2.6.3.  Reimbursement...................................................................................48
2.6.4.  Deemed Disbursements............................................................................48
2.6.5.  Nature of Reimbursement Obligations.............................................................48
2.7.  Register; Notes...................................................................................49
</TABLE>

                                      -ii-
<PAGE>

<TABLE>
<CAPTION>
SECTION                                                                                               PAGE

                                   ARTICLE III
                   REPAYMENTS, PREPAYMENTS, INTEREST AND FEES
<S>   <C>                                                                                              <C>
3.1.  Repayments and Prepayments; Application...........................................................51
3.1.1.  Repayments and Prepayments......................................................................51
3.1.2.  Application.....................................................................................56
3.1.3.  Prepayment of Term B Loans......................................................................56
3.2.  Interest Provisions...............................................................................57
3.2.1.  Rates...........................................................................................57
3.2.2.  Post-Default Rates..............................................................................57
3.2.3.  Payment Dates...................................................................................57
3.3.  Fees .............................................................................................58
3.3.1.  Commitment Fee..................................................................................58
3.3.2.  Agents' Fees....................................................................................59
3.3.3.  Letter of Credit Fee............................................................................59

                                   ARTICLE IV
                     CERTAIN LIBO RATE AND OTHER PROVISIONS

4.1.  LIBO Rate Lending Unlawful........................................................................59
4.2.  Deposits Unavailable..............................................................................59
4.3.  Increased LIBO Rate Loan Costs, etc...............................................................60
4.4.  Funding Losses....................................................................................60
4.5.  Increased Capital Costs...........................................................................61
4.6.  Taxes.............................................................................................61
4.7.  Payments, Computations, etc.......................................................................65
4.8.  Sharing of Payments...............................................................................65
4.9.  Setoff............................................................................................66
4.10.  Replacement of Lenders...........................................................................66

                                    ARTICLE V
                         CONDITIONS TO CREDIT EXTENSIONS

5.1.  Initial Credit Extension..........................................................................67
5.1.1.  Resolutions, etc................................................................................67
5.1.2.  Transaction Consummated.........................................................................68
5.1.3.  Transaction Documents...........................................................................69
5.1.4.  Closing Date Certificate........................................................................69
5.1.5.  Delivery of Notes...............................................................................69
</TABLE>

                                     -iii-
<PAGE>

<TABLE>
<CAPTION>
SECTION                                                                                               PAGE

<S>   <C>                                                                                              <C>
5.1.6.  Payment of Outstanding Indebtedness, etc........................................................69
5.1.7.  Closing Fees, Expenses, etc.....................................................................70
5.1.8.  Financial Information, Material Adverse
           Change.......................................................................................70
5.1.9.  Opinions of Counsel; Reliance Letters...........................................................71
5.1.10.  Filing Agent, etc..............................................................................71
5.1.11.  Subsidiary Guaranty............................................................................71
5.1.12.  Solvency, etc..................................................................................71
5.1.13.  Security and Pledge Agreement; Seller
           Pledge Agreement.............................................................................72
5.1.14.  Patent Security Agreement, Trademark
           Security Agreement, and Copyright Security
           Agreement....................................................................................73
5.1.15.  Perfection Certificate.........................................................................73
5.1.16.  Mortgage.......................................................................................73
5.1.17.  Insurance......................................................................................74
5.1.18.  Litigation.....................................................................................74
5.1.19.  Minimum EBITDA.................................................................................74
5.1.20.  Corporate, Tax and Capital Structure...........................................................74
5.1.21.  Approvals......................................................................................74
5.1.22.  Satisfactory Legal Form........................................................................75
5.2.     All Credit Extensions..........................................................................75
5.2.1.  Compliance with Warranties, No Default,
           etc..........................................................................................75
5.2.2.  Credit Extension Request, etc...................................................................75

                                   ARTICLE VI
                         REPRESENTATIONS AND WARRANTIES

6.1.  Organization, etc.................................................................................76
6.2.  Due Authorization, Non-Contravention, etc.........................................................76
6.3.  Government Approval, Regulation, etc..............................................................76
6.4.  Validity, etc.....................................................................................77
6.5.  Financial Information.............................................................................77
6.6.  No Material Adverse Change........................................................................77
6.7.  Litigation, Labor Controversies, etc..............................................................78
6.8.  Subsidiaries......................................................................................78
6.9.  Ownership of Properties...........................................................................78
6.10.  Taxes............................................................................................78
6.11.  Pension and Welfare Plans........................................................................78
</TABLE>

                                      -iv-
<PAGE>

<TABLE>
<CAPTION>
SECTION                                                                                               PAGE

<S>   <C>                                                                                              <C>
6.12.  Environmental Warranties.........................................................................79
6.13.  Accuracy of Information..........................................................................80
6.14.  Regulations U and X..............................................................................80
6.15.  Year 2000........................................................................................80
6.16.  Issuance of Subordinated Debt; Status of
           Obligations as Senior Debt, etc..............................................................80
6.17.  Solvency.........................................................................................81
6.18.  Capitalization...................................................................................81

                                   ARTICLE VII
                                    COVENANTS

7.1.    Affirmative Covenants...........................................................................82
7.1.1.  Financial Information, Reports, Notices,
           etc..........................................................................................82
7.1.2.  Maintenance of Existence; Compliance with
           Laws, etc....................................................................................84
7.1.3.  Maintenance of Properties.......................................................................85
7.1.4.  Insurance.......................................................................................85
7.1.5.  Books and Records...............................................................................85
7.1.6.  Environmental Law Covenant......................................................................86
7.1.7.  Use of Proceeds.................................................................................86
7.1.8.  Future Subsidiary Guarantors, Security,
           etc..........................................................................................87
7.1.9.  Rate Protection Agreements......................................................................87
7.1.10. Undertaking.....................................................................................87
7.1.11.  Leased Property................................................................................88
7.1.12.  Year 2000......................................................................................88
7.1.13.  Additional Opinions............................................................................88
7.2.    Negative Covenants..............................................................................88
7.2.1.  Business Activities.............................................................................88
7.2.2.  Indebtedness....................................................................................89
7.2.3.  Liens...........................................................................................91
7.2.4.  Financial Condition and Operations..............................................................93
7.2.5.  Investments.....................................................................................94
7.2.6.  Restricted Payments, etc........................................................................95
7.2.7.  Capital Expenditures, etc.......................................................................97
7.2.8.  No Prepayment of Subordinated Debt..............................................................98
7.2.9.  Capital Securities..............................................................................99
7.2.10.  Consolidation, Merger, etc.....................................................................99
7.2.11.  Permitted Dispositions........................................................................100
</TABLE>

                                      -v-
<PAGE>

<TABLE>
<CAPTION>
SECTION                                                                                               PAGE

<S>    <C>                                                                                              <C>
7.2.12.   Modification of Certain Agreements............................................................100
7.2.13.   Transactions with Affiliates..................................................................101
7.2.14.   Restrictive Agreements, etc...................................................................101
7.2.15.   Sale and Leaseback............................................................................102
7.2.16.   Designation of Senior Debt....................................................................102

                                  ARTICLE VIII
                                EVENTS OF DEFAULT

8.1.   Listing of Events of Default....................................................................102
8.1.1.   Non-Payment of Obligations....................................................................102
8.1.2.   Breach of Warranty............................................................................102
8.1.3.   Non-Performance of Certain Covenants and
            Obligations................................................................................102
8.1.4.   Non-Performance of Other Covenants and
            Obligations................................................................................102
8.1.5.   Default on Other Indebtedness.................................................................103
8.1.6.   Judgments.....................................................................................103
8.1.7.   Pension Plans.................................................................................103
8.1.8.   Change in Control.............................................................................103
8.1.9.   Bankruptcy, Insolvency, etc...................................................................103
8.1.10.   Impairment of Security, etc..................................................................104
8.1.11.   Failure of Subordination.....................................................................104
8.2.   Action if Bankruptcy............................................................................105
8.3.   Action if Other Event of Default................................................................105

                                   ARTICLE IX
                            THE ADMINISTRATIVE AGENT

9.1.   Actions.........................................................................................105
9.2.   Funding Reliance, etc...........................................................................106
9.3.   Exculpation.....................................................................................106
9.4.   Successor.......................................................................................107
9.5.   Credit Extensions by each Agent.................................................................107
9.6.   Credit Decisions................................................................................107
9.7.   Copies, etc.....................................................................................108
9.8.   Reliance by Agents..............................................................................108
9.9.   Defaults........................................................................................108
9.10.   Documentation Agent............................................................................109
</TABLE>

                                      -vi-
<PAGE>

<TABLE>
<CAPTION>
                                    ARTICLE X

                                HOLDINGS GUARANTY
<S>    <C>                                                                                              <C>
10.1.   Guaranty........................................................................................109
10.2.   Acceleration of Holdings Guaranty...............................................................110
10.3.   Guaranty Absolute, etc..........................................................................110
10.4.   Reinstatement, etc..............................................................................111
10.5.   Waiver, etc.....................................................................................111
10.6.   Postponement of Subrogation, etc................................................................111
10.7.   Successors, Transferees and Assigns;
            Transfers of Notes, etc.....................................................................112

                                    ARTICLE XI
                             MISCELLANEOUS PROVISIONS

11.1.   Waivers, Amendments, etc.......................................................................113
11.2.   Notices; Time..................................................................................114
11.3.   Payment of Costs and Expenses..................................................................115
11.4.   Indemnification................................................................................115
11.5.   Survival.......................................................................................117
11.6.   Severability...................................................................................117
11.7.   Headings.......................................................................................117
11.8.   Execution in Counterparts, Effectiveness,
            etc........................................................................................117
11.9.   Governing Law; Entire Agreement................................................................118
11.10.   Successors and Assigns........................................................................118
11.11.   Sale and Transfer of Credit Extensions;
            Participations in Credit Extensions Notes..................................................118
11.11.1.   Assignments.................................................................................118
11.11.2.   Participations..............................................................................121
11.12.   Reorganization Transaction....................................................................122
11.13.   Confidentiality...............................................................................123
11.14.   Other Transactions............................................................................124
11.15.   Independence of Covenants.....................................................................124
11.16.   Forum Selection and Consent to Jurisdiction...................................................124
11.17.   Waiver of Jury Trial..........................................................................125
</TABLE>

SCHEDULE I                 -        Disclosure Schedule
SCHEDULE II                -        Percentages and Administrative
Information

EXHIBIT A-1                -        Form of Revolving Note

                                     -vii-
<PAGE>

EXHIBIT A-2                -        Form of Term A Note
EXHIBIT A-3                -        Form of Term B Note
EXHIBIT A-4                -        Form of Swing Line Note
EXHIBIT B-1                -        Form of Borrowing Request
EXHIBIT B-2                -        Form of Issuance Request
EXHIBIT C                  -        Form of Continuation/Conversion Notice
EXHIBIT D                  -        Form of Closing Date Certificate
EXHIBIT E                  -        Form of Compliance Certificate
EXHIBIT F                  -        Form of Officer's Solvency Certificate
EXHIBIT G-1                -        Form of Security and Pledge Agreement
EXHIBIT G-2                -        Form of Seller Pledge Agreement
EXHIBIT H                  -        Form of Perfection Certificate
EXHIBIT I-1                -        Form of Mortgage
EXHIBIT I-2                -        Form of Deed of Trust
EXHIBIT J                  -        Form of Subsidiary Guaranty
EXHIBIT K                  -        Form of Interco Subordination
                                       Agreement
EXHIBIT L                  -        Form of Lender Assignment Agreement
EXHIBIT M                  -        Form of Opinion of New York Counsel
                                      to the Obligors

                                     -viii-
<PAGE>

                                CREDIT AGREEMENT

     THIS CREDIT AGREEMENT, dated as of November 17, 1999, is made by and among
WEEKLY READER CORPORATION, a Delaware corporation ("WRC"), and JLC LEARNING
CORPORATION, a Delaware corporation ("JLC" and, together with WRC, the
"BORROWERS"), WRC MEDIA INC. (formerly known as EAC II, Inc.), a Delaware
corporation and the parent of JLC ("HOLDINGS"), as a guarantor, the various
financial institutions and other Persons from time to time parties hereto (the
"LENDERS"), DLJ CAPITAL FUNDING, INC. ("DLJ"), as the Syndication Agent (in such
capacity, the "SYNDICATION AGENT"), the Lead Arranger and the Sole Book Running
Manager, BANK OF AMERICA, N.A. ("BOFA"), as administrative agent (in such
capacity, the "ADMINISTRATIVE AGENT") for the Lenders, and GENERAL ELECTRIC
CAPITAL CORPORATION, as the documentation agent (in such capacity, the
"DOCUMENTATION AGENT") for the Lenders.

                              W I T N E S S E T H:

     WHEREAS, Holdings intends on acquiring (the "FINANCED ACQUISITION") 94.9%
of the outstanding common stock of WRC pursuant to a Redemption, Stock Purchase
and Recapitalization Agreement, dated as of August 13, 1999, as amended by
Amendment No. 1 thereto, dated as of October 26, 1999 and Amendment No. 2
thereto, dated as of November 10, 1999 (the "PURCHASE AGREEMENT"), between
Holdings and Primedia Inc., a Delaware corporation (the "SELLER"), for an
aggregate purchase price of $396,054,500;

     WHEREAS, in connection with the Financed Acquisition,

          (a) Holdings will obtain the ownership (either directly or indirectly)
     of WRC, Primedia Reference Inc., a Delaware corporation ("PRI"), American
     Guidance Service Inc., a Delaware corporation ("AGS"), and Lifetime
     Learning Systems, Inc., a Delaware corporation ("LIFETIME") and their
     respective direct and indirect Subsidiaries;

          (b) shares of common stock of WRC equal to 5.1% of the outstanding
     shares of such common stock (the "ROLLOVER EQUITY") will be retained by the
     Seller; and

          (c) the Borrowers will (i) refinance approximately $27,000,000 of
     existing Indebtedness of JLC (the "REFINANCING"), (ii) pay estimated fees
     and

                                      -1-
<PAGE>

     expenses in connection with the Financed Acquisition, the Refinancing and
     related transactions (the Financed Acquisition, the Refinancing and such
     transactions related thereto, including those described in the recitals
     hereto, being herein collectively referred to as the "TRANSACTION") of
     approximately $22,800,000, and (iii) obtain $7,000,000 in excess cash for
     general corporate purposes;

     WHEREAS, in order to finance the consummation of Financed Acquisition and
the Refinancing,

          (a) Ripplewood Partners, L.P., a Delaware limited partnership
     ("RIPPLEWOOD"), its Affiliates and co-investors (including SG Capital
     Partners and Lexington Partners or such co-investors satisfactory in all
     respects to the Syndication Agent) (collectively, the "COMMON EQUITY
     SECURITIES INVESTORS") will purchase membership interests of EAC III L.L.C.
     ("EAC III"), the parent of Holdings, for not less than $65,000,000 in cash
     (the "EAC III PURCHASE");

          (b) Holdings, JLC and WRC will issue jointly (the "SUBORDINATED NOTE
     ISSUANCE") $152,000,000 face amount of their 12-3/4% Senior Subordinated
     Notes due 2009 (its "SUBORDINATED NOTES") and in connection therewith
     Holdings will issue 205,656 shares of its common stock (the "HOLDINGS
     (UNIT) COMMON STOCK") representing 3% of its common stock on a
     fully-diluted basis (but without giving effect to management options) for
     aggregate gross cash proceeds of at least $149,900,000;

          (c) Holdings will issue (the "PIK PREFERRED EQUITY ISSUANCE")
     3,000,000 shares of its 15% Senior Preferred Stock redeemable in 2011, par
     value $0.01 per share (the "PIK PREFERRED EQUITY") for not less than
     $75,000,000 in net cash proceeds to DLJ Merchant Banking Partners II, L.P.
     ("DLJMB"), certain of the DLJMB Related Parties and other third parties
     that are satisfactory in all respects to the Syndication Agent (the "PIK
     PREFERRED EQUITY HOLDERS"), which PIK Preferred Equity will be exchangeable
     (i) at the option of the holders thereof, for an equal amount of
     pay-in-kind preferred stock of WRC (the "WRC PIK I PREFERRED EQUITY")
     and/or pay-in-kind preferred stock of JLC (the "JLC PIK PREFERRED EQUITY")
     and (ii) at the election of Holdings under certain circumstances, into
     pay-in-kind preferred stock of WRC (the "WRC PIK II PREFERRED EQUITY") as
     permitted under SECTION 11.12(d) herein, in

                                      -2-
<PAGE>

     each case having terms substantially the same as the PIK Preferred Equity,
     and in connection therewith the PIK Preferred Equity Holders will also
     receive warrants (the "WRC WARRANTS") to acquire not more than 13.1% of the
     common stock of WRC on a fully-diluted basis, and warrants (the "JLC
     WARRANTS") to acquire not more than 13.1% of the common stock of JLC on a
     fully-diluted basis pursuant to a preferred stockholders agreement, dated
     as of the date hereof (the "PREFERRED STOCKHOLDERS AGREEMENT"), among
     Holdings, WRC, JLC and the PIK Preferred Equity Holders, which includes,
     among other things, the irrevocable agreement by the PIK Preferred Equity
     Holders for the benefit of the holders of the common stock of JLC and WRC
     (and for the benefit of the Administrative Agent, as pledgee (for the
     benefit of the Secured Parties), upon any exercise of its rights under the
     Security and Pledge Agreement to sell such common stock) that such holders
     will have drag-along rights in form and substance satisfactory to the
     Agents with respect to the Capital Securities of each Borrower (other than
     the WRC PIK Preferred Equity and the JLC PIK Preferred Equity, if any) that
     are held by the PIK Preferred Equity Holders (and their transferees);

          (d) Holdings will issue (the "COMMON EQUITY ISSUANCE", and together
     with the PIK Preferred Equity Issuance, the "EQUITY ISSUANCES") 6,855,853
     shares of its common stock ("COMMON EQUITY SECURITIES", and together with
     PIK Preferred Equity Securities, the "EQUITY SECURITIES") and EAC III will
     purchase the Common Equity Securities using all of the cash proceeds
     received by EAC III from the EAC III Purchase (and additional amounts to be
     provided by various co-investors) for an aggregate amount of not less than
     $95,000,000; and

          (e) WRC will issue to Holdings pay-in- kind preferred stock (the "WRC
MIRROR PIK PREFERRED EQUITY") for not less than $75,000,000, which WRC Mirror
PIK Preferred Equity will have terms substantially the same as the PIK Preferred
Equity, except that the issuer of such stock will be WRC and such stock will
have no exchange rights;

          (f) the Seller will maintain the Rollover Equity in WRC;

     WHEREAS, in connection with the Transaction and the post-closing ongoing
working capital and general corporate

                                      -3-
<PAGE>

needs of the Borrowers and their respective Subsidiaries, the Borrowers desire
to obtain the following financing facilities from the Lenders:

          (a) a Term A Loan Commitment and a Term B Loan Commitment pursuant to
     which Borrowings of Term Loans will be made to the Borrowers on the Closing
     Date in a maximum, original principal amount of $31,000,000 (in the case of
     Term A Loans) and $100,000,000 (in the case of Term B Loans);

          (b) a Revolving Loan Commitment (to include availability for Revolving
     Loans, Swing Line Loans and Letters of Credit) pursuant to which Borrowings
     of Revolving Loans, in a maximum aggregate principal amount (together with
     all Swing Line Loans and Letter of Credit Outstandings) not to exceed
     $30,000,000 will be made to the Borrowers from time to time on and
     subsequent to the Closing Date but prior to the Revolving Loan Commitment
     Termination Date;

          (c) a Letter of Credit Commitment pursuant to which each Issuer will
     issue Letters of Credit for the account of the Borrowers and the Subsidiary
     Guarantors from time to time on and subsequent to the Closing Date but
     prior to the Revolving Loan Commitment Termination Date in a maximum
     aggregate Stated Amount at any one time outstanding not to exceed
     $5,000,000 (PROVIDED, that the aggregate outstanding principal amount of
     Revolving Loans, Swing Line Loans and Letter of Credit Outstandings at any
     time shall not exceed the then existing Revolving Loan Commitment Amount);
     and

          (d) a Swing Line Loan Commitment pursuant to which Borrowings of Swing
     Line Loans in an aggregate outstanding principal amount not to exceed
     $5,000,000 will be made on and subsequent to the Closing Date but prior to
     the Revolving Loan Commitment Termination Date (PROVIDED, that the
     aggregate outstanding principal amount of such Swing Line Loans, together
     with Revolving Loans and Letter of Credit Outstandings, at any time shall
     not exceed the then existing Revolving Loan Commitment Amount); and

     WHEREAS, the Lenders and the Issuers are willing, on the terms and subject
to the conditions hereinafter set forth, to extend the Commitments and make
Loans to the Borrowers and issue (or participate in) Letters of Credit;

     NOW, THEREFORE, the parties hereto agree as follows:

                                      -4-
<PAGE>

                                    ARTICLE I
                        DEFINITIONS AND ACCOUNTING TERMS

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

     "ACQUISITION" means any transaction or series of related transactions for
the purpose of or resulting, directly or indirectly, in (a) the acquisition of
all or substantially all of the assets of a Person, or of any business or
division of a Person, (b) the acquisition of in excess of 50% of the Capital
Securities of any Person, or otherwise causing any Person to become a
Subsidiary, or (c) a merger or consolidation or any other combination with
another Person (PROVIDED that a Borrower or one of its Subsidiaries is the
surviving entity).

     "ADMINISTRATIVE AGENT" is defined in the PREAMBLE and includes each other
Person appointed as the successor Administrative Agent pursuant to SECTION 9.4.

     "AFFECTED LENDER" is defined in SECTION 4.10.

     "AFFILIATE" of any Person means any other Person which, directly or
indirectly, controls, is controlled by or is under common control with such
Person. "Control" of a Person means the power, directly or indirectly,

          (a) to vote 10% or more of the Capital Securities (on a fully diluted
     basis) of such Person, having ordinary voting power for the election of
     directors, managing members or general partners (as applicable); or

          (b) to direct or cause the direction of the management and policies of
     such Person (whether by contract or otherwise).

     "AGREEMENT" means, on any date, this Credit Agreement as originally in
effect on the Effective Date and as thereafter from time to time amended,
supplemented, amended and restated or otherwise modified from time to time and
in effect on such date.

     "AGS" is defined in CLAUSE (a) of the SECOND RECITAL.

                                      -5-
<PAGE>

     "ALTERNATE BASE RATE" means, on any date and with respect to all Base Rate
Loans, a fluctuating rate of interest per annum (rounded upward, if necessary,
to the next highest 1/16 of 1%) equal to the higher of

          (a) the Base Rate in effect on such day; and

          (b) the Federal Funds Rate in effect on such day plus 1/2 of 1%.

Changes in the rate of interest on that portion of any Loans maintained as Base
Rate Loans will take effect simultaneously with each change in the Alternate
Base Rate. The Administrative Agent will give notice promptly to the Borrowers
and the Lenders of changes in the Alternate Base Rate; PROVIDED, that the
failure to give such notice shall not affect the Alternate Base Rate in effect
after such change.

     "APPLICABLE COMMITMENT FEE" means, (a) for each day from the Effective Date
to (but excluding) the date five (5) Business Days after the date upon which the
Compliance Certificate for the second full Fiscal Quarter ending after the
Effective Date is required to be delivered by Holdings to the Agents pursuant to
CLAUSE (c) of SECTION 7.1.1, a fee which shall accrue at a rate of 1/2 of 1% per
annum, and (b) at all times from the date five (5) Business Days after the date
the Compliance Certificate described in CLAUSE (a) above is required to be
delivered, a fee which shall accrue at the applicable rate per annum set forth
below under the column entitled "APPLICABLE COMMITMENT FEE", determined by
reference to the applicable Leverage Ratio referred to below:

<TABLE>
<CAPTION>
                     Leverage         Applicable Commitment
                      Ratio           ---------------------
                   -----------            Fee
                                          ----
                   <S>                <C>
                    greater               .500%
                    than
                    5.00:1.0

                    greater               .375%
                    than
                    4.00:1.0
                    and less
                    than or
                    equal to
                    5.00:1.0

                                      -6-
<PAGE>

                     Leverage         Applicable Commitment
                      Ratio           ---------------------
                   -----------            Fee
                                          ----
                   <S>                <C>

                    less than             .250%
                    or equal
                    to
                    4.00:1.0
</TABLE>

The Leverage Ratio used to compute the Applicable Commitment Fee shall be that
set forth in the Compliance Certificate most recently delivered by Holdings to
the Agents; changes in the Applicable Commitment Fee resulting from a change in
the Leverage Ratio shall become effective upon delivery by Holdings to the
Agents of a new Compliance Certificate pursuant to CLAUSE (c) of SECTION 7.1.1.
If Holdings shall fail to deliver a Compliance Certificate by the delivery due
date specified in such clause, the Applicable Commitment Fee from and including
the day immediately following such delivery due date to (but excluding) the date
five (5) Business Days after the date Holdings delivers to the Agents a
Compliance Certificate shall conclusively be equal to the highest Applicable
Commitment Fee set forth above.

     "APPLICABLE MARGIN" means, at all times during the applicable periods set
forth below,

          (a) on any date, with respect to the unpaid principal amount of each
     Term B Loan maintained as a (i) Base Rate Loan, 3.00% per annum and (ii)
     LIBO Rate Loan, 4.00% per annum;

          (b) from the Effective Date to (but excluding) the date five (5)
     Business Days after the date upon which the Compliance Certificate for the
     second full Fiscal Quarter ending after the Effective Date is required to
     be delivered by Holdings to the Agents pursuant to CLAUSE (c) of SECTION
     7.1.1, with respect to the unpaid principal amount of each (i) Swing Line
     Loan (which shall be borrowed and maintained only as a Base Rate Loan),
     Revolving Loan and Term A Loan maintained as a Base Rate Loan, 2.25% per
     annum, and (ii) Revolving Loan and Term A Loan maintained as a LIBO Rate
     Loan, 3.25% per annum; and

          (c) at all times from the date five (5) Business Days after the date
     the Compliance Certificate described in CLAUSE (b) above is required to be
     delivered, with respect to the unpaid principal amount of each Swing Line
     Loan (which shall be borrowed and maintained only as a Base Rate Loan),
     Revolving Loan and Term A Loan, the rate determined by reference to

                                      -7-
<PAGE>

     the applicable Leverage Ratio and at the applicable percentage per annum
     set forth below under the column entitled "APPLICABLE MARGIN FOR BASE RATE
     LOANS", in the case of such Loans made or maintained as Base Rate Loans, or
     by reference to the applicable Leverage Ratio and at the applicable
     percentage per annum set forth below under the column entitled "APPLICABLE
     MARGIN FOR LIBO RATE LOANS", in the case of such Loans made or maintained
     as LIBO Rate Loans:

<TABLE>
<CAPTION>
                                                          Applicable
                                                          Margin For
                              Applicable                  LIBO Rate
        Leverage              Margin For                  ---------
         Ratio              Base Rate Loans               Loans
         -----              ---------------               -----
<S>                         <C>                           <C>
greater than
5.50:1.0                         2.25%                         3.25%

greater than
5.00:1.0 and less
than or equal to
5.50:1.0                         2.00%                         3.00%

greater than
4.50:1.0 and less
than or equal to
5.00:1.0                         1.75%                         2.75%

greater than
4.00:1.0 and less
than or equal to
4.50:1.0                         1.50%                         2.50%

greater than
3.50:1.0 and less
than or equal to
4.00:1.0                         1.25%                         2.25%

less than or
equal to 3.50:1.0                1.00%                         2.00%
</TABLE>

The Leverage Ratio used to compute the Applicable Margin shall be the Leverage
Ratio set forth in the Compliance Certificate most recently delivered by
Holdings to the Agents; changes in the Applicable Margin resulting from a change
in the Leverage Ratio shall become effective upon the date five (5) Business
Days after the date by which delivery by the Borrowers to the Agents of a new
Compliance Certificate is required pursuant to CLAUSE (c) of SECTION 7.1.1. If
Holdings shall fail to deliver a Compliance Certificate by the delivery due date
specified in such clause, the Applicable Margin from and including the day

                                      -8-
<PAGE>

immediately following such delivery due date to (but excluding) the date five
(5) Business Days after the date Holdings delivers to the Agents a Compliance
Certificate shall conclusively be equal to the highest Applicable Margin set
forth above.

          "ASSIGNEE LENDER" is defined in SECTION 11.11.1.

          "ASSIGNOR LENDER" is defined in SECTION 11.11.1.

     "AUTHORIZED OFFICER" means, relative to any Obligor or the Seller, those of
its officers, general parties or managing members (as applicable) whose
signatures and incumbency shall have been certified to the Agents, the Lenders
and the Issuers pursuant to SECTION 5.1.1.

     "BASE RATE" means, at any time, the rate of interest then most recently
established by the Administrative Agent in Charlotte, North Carolina as its base
rate for U.S. dollars loaned in the United States. The Base Rate is not
necessarily intended to be the lowest rate of interest determined by the
Administrative Agent in connection with extensions of credit.

     "BASE RATE LOAN" means a Loan bearing interest at a fluctuating rate
determined by reference to the Alternate Base Rate.

     "BOFA" is defined in the PREAMBLE.

     "BORROWERS" is defined in the PREAMBLE.

     "BORROWING" means the Loans of the same type and, in the case of LIBO Rate
Loans, having the same Interest Period made by all Lenders required to make such
Loans on the same Business Day and pursuant to the same Borrowing Request in
accordance with SECTION 2.1.

     "BORROWING REQUEST" means a Loan request and certificate duly executed by
an Authorized Officer of the applicable Borrower, substantially in the form of
EXHIBIT B-1 hereto.

     "BUSINESS DAY" means

          (a) any day which is neither a Saturday or Sunday nor a legal holiday
     on which banks are authorized or required to be closed in Charlotte, North
     Carolina or New York, New York; and

                                      -9-
<PAGE>

          (b) relative to the making, continuing, prepaying or repaying of any
     LIBO Rate Loans, any day which is a Business Day described in CLAUSE (a)
     above and which is also a day on which dealings in Dollars are carried on
     in the London interbank eurodollar market.

     "CAPITAL EXPENDITURES" means, for any period, the aggregate amount of all
expenditures of Holdings, the Borrowers and their respective Subsidiaries for
fixed or capital assets made during such period which, in accordance with GAAP,
would be classified as capital expenditures. It is further agreed and understood
by the parties hereto that capital expenditures made by acquisition of all the
Capital Securities of an entity that owns fixed or capital assets will also be
considered to constitute "Capital Expenditures".

     "CAPITAL SECURITIES" means, with respect to any Person, any and all shares,
interests, participations or other equivalents (however designated, whether
voting or non-voting) of such Person's capital, whether now outstanding or
issued after the Effective Date.

     "CAPITALIZED LEASE LIABILITIES" means all monetary obligations of Holdings,
either Borrower or any of their respective Subsidiaries under any leasing or
similar arrangement which have been (or, in accordance with GAAP, should be)
classified as capitalized leases, and for purposes of each Loan Document the
amount of such obligations shall be the capitalized amount thereof, determined
in accordance with GAAP, and the stated maturity thereof shall be the date of
the last payment of rent or any other amount due under such lease prior to the
first date upon which such lease may be terminated by the lessee without payment
of a premium or a penalty.

     "CASH COLLATERALIZE" means, with respect to a Letter of Credit, the deposit
of immediately available funds into a cash collateral account maintained with
(or on behalf of) the Administrative Agent on terms satisfactory to the
Administrative Agent in an amount equal to the Stated Amount of such Letter of
Credit.

     "CASH EQUIVALENT INVESTMENT" means, at any time:

          (a) any direct obligation of (or unconditionally guaranteed by) the
     United States of America or a State thereof (or any agency or political
     subdivision thereof, to the extent such obligations are supported by the
     full faith and credit of the United States of

                                      -10-
<PAGE>

America or a State thereof) maturing not more than six months after such time;

          (b) commercial paper maturing not more than 180 days from the date of
     issue, which is issued by

               (i) a corporation (other than an Affiliate of any Obligor)
          organized under the laws of any State of the United States or of the
          District of Columbia and rated A-1 or higher by S&P or P-1 or higher
          by Moody's, or

               (ii) any Lender (or its holding company);

          (c) any certificate of deposit, time deposit or bankers acceptance,
     maturing not more than six months after its date of issuance, which is
     issued by either

               (i) any domestic office of any bank organized under the laws of
          (A) the United States (or any State thereof) or (B) any other member
          of the OECD, and, in each case, which has (x) a credit rating of A2 or
          higher from Moody's or A or higher from S&P and (y) a combined capital
          and surplus greater than $500,000,000, or

               (ii) any Lender;

          (d) any repurchase agreement having a term of 7 days or less entered
     into with any Lender or any commercial banking institution satisfying the
     criteria set forth in CLAUSE (c)(i) which

               (i) is secured by a fully perfected security interest in any
          obligation of the type described in CLAUSE (a), and

               (ii) has a market value at the time such repurchase agreement is
          entered into of not less than 100% of the repurchase obligation of
          such commercial banking institution thereunder; or

          (e) shares of investment companies that are registered under the
     Investment Company Act of 1940, as amended, and that invest solely in one
     or more of the types of securities described in CLAUSES (a) through (c)
     above.

     "CASUALTY EVENT" means the damage, destruction or condemnation, as the case
may be, of any property of

                                      -11-
<PAGE>

Holdings, either Borrower or any of their respective Subsidiaries.

     "CASUALTY PROCEEDS" means, with respect to any Casualty Event, the amount
of any insurance proceeds or condemnation awards received by Holdings, either
Borrower or any of their respective Subsidiaries in connection therewith, but
excluding any proceeds or awards required to be paid to a creditor (other than
any Secured Party) which holds a first-priority Lien permitted by SECTION 7.2.3
on the property which is the subject of such Casualty Event.

     "CERCLA" means the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended.

     "CERCLIS" means the Comprehensive Environmental Response Compensation
Liability Information System List.

     "CERTIFICATES OF DESIGNATION" means, collectively, the Holdings Certificate
of Designation, the WRC Certificate of Designation and the JLC Certificate of
Designation.

     "CHANGE IN CONTROL" means

          (a) the failure of Ripplewood to directly or indirectly own
     beneficially and of record on a fully diluted basis 51% of the outstanding
     Capital Securities of EAC III, such Capital Securities to be held free and
     clear of all Liens; or

          (b) at any time prior to the creation of a Public Market, the failure
     of EAC III to directly or indirectly own beneficially and of record on a
     fully diluted basis prior to a Permitted Common Stock Exchange, at least
     51% of the outstanding Capital Securities of Holdings (other than the PIK
     Preferred Equity, if any (and any preferred stock having identical terms
     thereto that is issued by Holdings to the holders thereof)) such Capital
     Securities to be held free and clear of all Liens; or

          (c) at any time after the creation of a Public Market relating to
     Holdings or WRC, any person or group (within the meaning of Sections 13(d)
     and 14(d) under the Exchange Act), other than Ripplewood or any other
     Common Equity Investor, shall become the ultimate "beneficial owner" (as
     defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or
     indirectly, of Capital Securities representing more than 20% of the

                                      -12-
<PAGE>

     Capital Securities of Holdings (other than the PIK Preferred Equity, if any
     (and any preferred stock having identical terms thereto that is issued by
     Holdings to the holders thereof)) or WRC (other than the WRC Mirror PIK
     Preferred Equity, if any, and the WRC PIK Preferred Equity, if any (and any
     preferred stock having identical terms thereto that is issued by WRC to the
     holders thereof)), as the case may be; or

          (d) the first day on which a majority of the members of the Board of
     Directors of Holdings or either Borrower are not Continuing Directors; or

          (e) at any time prior to the creation of a Public Market, (i) prior to
     the Permitted Common Stock Exchange, the failure of Holdings at any time to
     directly own beneficially and of record on a fully diluted basis at least
     78.80% and (ii) following the Permitted Common Stock Exchange, the failure
     of Holdings at any time to directly own beneficially and of record on a
     fully diluted basis at least 74.78%, in each case, of the outstanding
     Capital Securities of WRC (other than the WRC Mirror PIK Preferred Equity,
     if any, and the WRC PIK Preferred Equity, if any (and any preferred stock
     having identical terms thereto that is issued by WRC to the holders thereof
     in exchange therefor)), such Capital Securities to be held free and clear
     of all Liens (other than Liens granted under a Loan Document); or

          (f) the failure of Holdings and WRC, individually or collectively, at
     any time to directly own beneficially and of record on a fully diluted
     basis 83.90% of the outstanding Capital Securities of JLC (other than the
     JLC PIK Preferred Equity, if any (and any preferred stock having identical
     terms thereto that is issued by JLC to the holders thereof in exchange
     therefor)), such Capital Securities to be held free and clear of all Liens
     (other than Liens granted under a Loan Document); or

          (g) (i) prior to the Permitted Common Stock Exchange, the failure of
     (A) prior to the third anniversary of the Closing Date, at least 83.90% and
     (B) on and subsequent to the third anniversary of the Closing Date, at
     least 78.80%, and (ii) following the Permitted Common Stock Exchange, the
     failure of (A) prior to the third anniversary of the Closing Date, at least
     79.62% and (B) on and subsequent to the third anniversary of the Closing
     Date, at least 74.78%, in

                                      -13-
<PAGE>

     each case, of the outstanding Capital Securities of WRC (other than the WRC
     Mirror PIK Preferred Equity, if any, and the WRC PIK Preferred Equity, if
     any (and any preferred stock having identical terms thereto that is issued
     by WRC to the holders thereof in exchange therefor)) to be pledged by the
     holder(s) thereof to the Administrative Agent under the Security and Pledge
     Agreement, provided, however, that after the creation of a Public Market of
     WRC, each such percentage of WRC's Capital Securities shall be equitably
     adjusted based upon the amount of Capital Securities issued in connection
     with a Public Offering of WRC; or

          (h) the failure of the holders thereof to pledge at least 83.90% of
     the outstanding Capital Securities of JLC (other than the JLC PIK Preferred
     Equity, if any (and any preferred stock having identical terms thereto that
     is issued by JLC to the holders thereof in exchange therefor)) to the
     Administrative Agent under the Security and Pledge Agreement; or

          (i) the occurrence of any "Change of Control" (or similar term) under
     (and as defined in) any Sub Debt Document.

     "CLOSING DATE" means the date of the initial Credit Extension, which shall
be a Business Day.

     "CLOSING DATE CERTIFICATE" means, collectively, the officer's certificate
executed and delivered by an authorized officer of each of Holdings, each
Borrower and each Subsidiary Guarantor pursuant to the terms of this Agreement,
substantially in the form of EXHIBIT D hereto.

     "CODE" means the Internal Revenue Code of 1986, and the regulations
thereunder, in each case as amended, reformed or otherwise modified from time to
time.

     "COMMITMENT" means, as the context may require, a Lender's Term A Loan
Commitment, Term B Loan Commitment, Revolving Loan Commitment or Letter of
Credit Commitment, or the Swing Line Lender's Swing Line Loan Commitment.

     "COMMITMENT AMOUNT" means, as the context may require, the Term A Loan
Commitment Amount, the Term B Loan Commitment Amount, the Revolving Loan
Commitment Amount, the Letter of Credit Commitment Amount or the Swing Line Loan
Commitment Amount.

                                      -14-
<PAGE>

     "COMMITMENT TERMINATION DATE" means, as the context may require, the Term A
Loan Commitment Termination Date, the Term B Loan Commitment Termination Date or
the Revolving Loan Commitment Termination Date.

     "COMMITMENT TERMINATION EVENT" means

               (a) the occurrence of any Event of Default described in CLAUSES
          (a) through (d) of SECTION 8.1.9; or

               (b) the occurrence and continuance of any other Event of Default
          and either

                         (i) the declaration of all or any portion of the Loans
                    to be due and payable pursuant to SECTION 8.3, or

                         (ii) the giving of notice by the Administrative Agent,
                    acting at the direction of the Required Lenders, to the
                    Borrowers that the Commitments have been terminated.

     "COMMON EQUITY ISSUANCE" is defined in CLAUSE (d) of the THIRD RECITAL.

     "COMMON EQUITY SECURITIES" is defined in CLAUSE (d) of the THIRD RECITAL.

     "COMMON EQUITY SECURITIES INVESTORS" is defined in CLAUSE (a) of the THIRD
RECITAL.

     "COMPLIANCE CERTIFICATE" means a certificate duly completed and executed by
the chief financial or accounting Authorized Officer of Holdings, substantially
in the form of EXHIBIT E hereto, together with such changes thereto as the
Agents may from time to time request for the purpose of monitoring Holdings' and
the Borrowers' compliance with the financial covenants contained herein.

     "CONTINGENT LIABILITY" means any agreement, undertaking or arrangement by
which any Person guarantees, endorses or otherwise becomes or is contingently
liable upon (by direct or indirect agreement, contingent or otherwise, to
provide funds for payment, to supply funds to, or otherwise to invest in, a
debtor, or otherwise to assure a creditor against loss) the Indebtedness of any
other Person (other than by endorsements of instruments in the course of
collection), or guarantees the payment of dividends or other distributions upon
the Capital Securities of any other

                                      -15-
<PAGE>

Person. The amount of any Person's obligation under any Contingent Liability
shall (subject to any limitation set forth therein) be deemed to be the
outstanding principal amount of the debt, obligation or other liability
guaranteed thereby.

     "CONTINUATION/CONVERSION NOTICE" means a notice of continuation or
conversion and certificate duly executed by an Authorized Officer of the
applicable Borrower, substantially in the form of EXHIBIT C hereto.

     "CONTINUING DIRECTOR" means, as of any date of determination, any member of
the Board of Directors of Holdings or either Borrower who (i) was a member of
the Board of Directors of such Obligor on the Closing Date or (ii) was nominated
for election or elected to the Board of Directors of such Obligor with the
approval of a majority of the Continuing Directors who were members of the Board
of Directors of such Obligor at the time of such nomination or election.

     "CONTROLLED GROUP" means all members of a controlled group of corporations
and all members of a controlled group of trades or businesses (whether or not
incorporated) under common control which, together with Holdings or either
Borrower, are treated as a single employer under Section 414(b) or 414(c) of the
Code or Section 4001 of ERISA.

     "COPYRIGHT SECURITY AGREEMENT" means any Copyright Security Agreement
executed and delivered by any Obligor in substantially the form of Exhibit D to
the Security and Pledge Agreement, as amended, supplemented, amended and
restated or otherwise modified from time to time.

     "CREDIT EXTENSION" means, as the context may require,

          (a) the making of a Loan by a Lender; or

          (b) the issuance of any Letter of Credit, or the extension of any
     Stated Expiry Date of any existing Letter of Credit, by an Issuer.

     "CREDIT EXTENSION REQUEST" means, as the context may require, any Borrowing
Request or Issuance Request.

     "CURRENT ASSETS" means, on any date, without duplication, all assets which,
in accordance with GAAP, would be included as current assets on a consolidated
balance sheet of Holdings and its Subsidiaries at such date as current assets
(excluding, however, amounts due and to

                                      -16-
<PAGE>

become due from Affiliates of the Borrowers which have arisen from transactions
which are other than arm's-length and in the ordinary course of its business).

     "CURRENT LIABILITIES" means, on any date, without duplication, all amounts
which, in accordance with GAAP, would be included as current liabilities on a
consolidated balance sheet of Holdings and its Subsidiaries at such date,
excluding current maturities of Indebtedness.

     "DEFAULT" means any Event of Default or any condition, occurrence or event
which, after notice or lapse of time or both, would constitute an Event of
Default.

     "DEFAULTING LENDER" means any Lender which defaults in its obligation to
make any Credit Extension hereunder in accordance with SECTION 2.1.1 or 2.1.2 as
a result of the appointment of a receiver or conservator with respect to such
Lender at the direction or request of any regulatory agency or authority.

     "DISBURSEMENT" is defined in SECTION 2.6.2.

     "DISBURSEMENT DATE" is defined in SECTION 2.6.2.

     "DISBURSEMENT DUE DATE" is defined in SECTION 2.6.2.

     "DISCLOSURE SCHEDULE" means the Disclosure Schedule attached hereto as
SCHEDULE I, as it may be amended, supplemented, amended and restated or
otherwise modified from time to time by the Borrowers with the written consent
of the Required Lenders.

     "DISPOSITION" (or similar words such as "DISPOSE") means any sale,
transfer, lease, contribution or other conveyance (including by way of merger)
of, or the granting of options, warrants or other rights to, either of the
Borrower's or their respective Subsidiaries' assets (including accounts
receivables and Capital Securities of Subsidiaries) to any other Person in a
single transaction or series of transactions; PROVIDED that the term
"Disposition" shall not include any Permitted Equity Exchange.

     "DLJ" is defined in the PREAMBLE.

     "DLJMB" is defined in CLAUSE (c) of the THIRD RECITAL.

     "DLJMB RELATED PARTY" means (i) any controlling stockholder, majority (or
more) owned Subsidiary, or immediate family member (in the case of an
individual) of

                                      -17-
<PAGE>

DLJMB; or (ii) any trust, corporation, partnership or other entity, the
beneficiaries, stockholders, partners, owners or Persons beneficially holding a
majority or more controlling interest of which consist of DLJMB and/or such
other Persons referred to in the immediately preceding CLAUSE (i).

     "DOCUMENTATION AGENT" is defined in the PREAMBLE.

     "DOLLAR" and the sign "$" mean lawful money of the United States.

     "DOMESTIC OFFICE" means the office of a Lender designated as its "Domestic
Office" on its signature page hereto or in a Lender Assignment Agreement, or
such other office within the United States as may be designated from time to
time by notice from such Lender to the Agents and the Borrowers.

     "DOMESTIC SUBSIDIARY" means any Subsidiary that is not a Foreign
Subsidiary.

     "EAC III" is defined in CLAUSE (a) of the THIRD RECITAL.

     "EBITDA" means, for any applicable period, the sum of

          (a) the excess of (i) Net Income (excluding any non-cash revenues
     included in the computation of Net Income) OVER (ii) Restricted Payments
     permitted under CLAUSES (c) and (d) of SECTION 7.2.6,
PLUS

          (b) to the extent deducted in determining Net Income, the sum of (i)
     amounts attributable to amortization, (ii) income tax expense, (iii)
     Interest Expense, (iv) depreciation of assets and (v) other non-cash,
     non-recurring charges.

          "EFFECTIVE DATE" means the date this Agreement becomes effective
     pursuant to SECTION 11.8.

          "ENVIRONMENTAL LAWS" means all applicable federal, state or local
     statutes, laws, ordinances, codes, rules and regulations (including consent
     decrees and administrative orders) relating to the protection of the
     environment.

          "EQUITY ISSUANCES" is defined in CLAUSE (d) of the THIRD RECITAL.

                                      -18-
<PAGE>

          "EQUITY SECURITIES" is defined in CLAUSE (d) of the THIRD RECITAL.

          "ERISA" means the Employee Retirement Income Security Act of 1974, as
     amended, and any successor statute thereto of similar import, together with
     the regulations thereunder, in each case as in effect from time to time.
     References to Sections of ERISA also refer to any successor Sections
     thereto.

          "EVENT OF DEFAULT" is defined in SECTION 8.1.

          "EXCESS CASH FLOW" means, for any Fiscal Year, the excess (if any), of

               (a) EBITDA for such Fiscal Year OVER

               (b) the sum (for such Fiscal Year), without duplication, of (i)
          Interest Expense actually paid in cash by Holdings, the Borrowers and
          their respective Subsidiaries, (ii) scheduled principal repayments, to
          the extent actually made, of Term Loans pursuant to CLAUSES (c) and
          (d) of SECTION 3.1.1, and other voluntary or mandatory prepayments of
          Term Loans or repayments of Revolving Loans (accompanied by a
          permanent commitment reduction), (iii) all income taxes actually paid
          in cash by Holdings, the Borrowers and their respective Subsidiaries,
          (iv) Capital Expenditures actually made by the Borrowers and their
          respective Subsidiaries in such Fiscal Year, (v) Investments permitted
          to be made and actually made in cash pursuant to CLAUSE (d), (g) or
          (i) of SECTION 7.2.5, by the Borrowers and their respective
          Subsidiaries in such Fiscal Year, (vi) Restricted Payments of the
          types described in CLAUSES (b), (c), (d), and (f) (other than
          Restricted Payments made by WRC in respect of the WRC Mirror PIK
          Preferred Equity that are used by Holdings to make scheduled payments
          of dividends on the PIK Preferred Equity to WRC) of SECTION 7.2.6 that
          are permitted to be made and actually made in cash during such Fiscal
          Year and (vii) payments of interest described in SECTION 7.2.8(a)(i)
          that are permitted to be made and actually made in cash during such
          Fiscal Year;

PLUS (MINUS)

                                      -19-
<PAGE>

               (c) the amount of the net increase (decrease) of Current Assets,
          other than cash and Cash Equivalent Investments, over Current
          Liabilities of Holdings, the Borrowers and their respective
          Subsidiaries for such applicable period.

     "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

     "EXEMPTION CERTIFICATE" is defined in CLAUSE (e) of SECTION 4.6.

     "FEDERAL FUNDS RATE" means, for any period, a fluctuating interest rate per
annum equal for each day during such period to

               (a) the weighted average of the rates on overnight federal funds
          transactions with members of the Federal Reserve System arranged by
          federal funds brokers, as published for such day (or, if such day is
          not a Business Day, for the next preceding Business Day) by the
          Federal Reserve Bank of New York; or

               (b) if such rate is not so published for any day which is a
          Business Day, the average of the quotations for such day on such
          transactions received by the Administrative Agent from three federal
          funds brokers of recognized standing selected by it.

     "FEE LETTER" means the confidential letter, dated October 26, 1999, among
DLJ, BofA and Ripplewood.

     "FILING AGENT" is defined in SECTION 5.1.10.

     "FILING STATEMENTS" is defined in SECTION 5.1.10.

     "FINANCED ACQUISITION" is defined in the FIRST RECITAL.

     "FISCAL QUARTER" means a quarter ending on the last day of March, June,
September or December.

     "FISCAL YEAR" means any period of twelve consecutive calendar months ending
on December 31; references to a Fiscal Year with a number corresponding to any
calendar year (E.G., the "2000 Fiscal Year") refer to the Fiscal Year ending on
December 31 of such calendar year.

     "FIXED CHARGE COVERAGE RATIO" means, as of the close of any Fiscal Quarter,
the ratio computed for the period

                                      -20-
<PAGE>

consisting of such Fiscal Quarter and each of the three immediately preceding
Fiscal Quarters of:

          (a) EBITDA (for all such Fiscal Quarters);

TO

          (b) the sum (for all such Fiscal Quarters), without duplication, of
     (i) Interest Expense, (ii) Capital Expenditures of the Borrowers and their
     respective Subsidiaries made during such Fiscal Quarters, (iii) scheduled
     principal repayments of Indebtedness made during such period (including
     repayments of the Term Loans pursuant to CLAUSES (c) and (d) of SECTION
     3.1.1, after giving effect to any reductions in such scheduled principal
     repayments attributable to any optional or mandatory prepayments of the
     Term Loans), (iv) all income taxes actually paid in cash by Holdings, the
     Borrowers and their respective Subsidiaries, (v) Restricted Payments of the
     types described in CLAUSES (b) and (f) (other than Restricted Payments made
     by WRC in respect of the WRC Mirror PIK Preferred Equity that are used by
     Holdings to make scheduled payments of dividends on the PIK Preferred
     Equity to WRC) of SECTION 7.2.6 actually made during such applicable period
     and (vi) payments of interest described in SECTION 7.2.8(a)(i) that are
     actually made during such applicable period.

     "FOREIGN PLEDGE AGREEMENT" means any supplemental pledge agreement governed
by the laws of a jurisdiction other than the United States or a State thereof
executed and delivered by either Borrower or any of its Subsidiaries pursuant to
the terms of this Agreement, in form and substance satisfactory to the Agents,
as may be necessary or desirable under the laws of organization or incorporation
of a Subsidiary to further protect or perfect the Lien on and security interest
in any Collateral (as defined in the Security and Pledge Agreement).

     "FOREIGN SUBSIDIARY" means any Subsidiary of Holdings (a) which is
organized under the laws of any jurisdiction outside of the United States of
America, (b) which conducts the major portion of its business outside of the
United States of America and (c) all or substantially all of the property and
assets of which are located outside of the United States of America.

     "F.R.S. BOARD" means the Board of Governors of the Federal Reserve System
or any successor thereto.

                                      -21-
<PAGE>

     "GAAP" is defined in SECTION 1.4.

     "GOVERNMENTAL AUTHORITY" means the government of the United States of
America, any other nation or any political subdivision thereof, whether state or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

     "GUARANTOR" means, as the context may require, Holdings and/or each
Subsidiary Guarantor.

     "HAZARDOUS MATERIAL" means

               (a) any "hazardous substance", as defined by CERCLA;

               (b) any "hazardous waste", as defined by the Resource
          Conservation and Recovery Act, as amended; or

               (c) any pollutant or contaminant or hazardous, dangerous or toxic
          chemical, material or substance (including any petroleum product)
          within the meaning of any other applicable Environmental Law.

     "HEDGING OBLIGATIONS" means, with respect to any Person, all liabilities of
such Person under currency exchange agreements, interest rate swap agreements,
interest rate cap agreements and interest rate collar agreements, and all other
agreements or arrangements designed to protect such Person against fluctuations
in interest rates or currency exchange rates.

     "HEREIN", "HEREOF", "HERETO", "HEREUNDER" and similar terms contained in
any Loan Document refer to such Loan Document as a whole and not to any
particular Section, paragraph or provision of such Loan Document.

     "HOLDINGS" is defined in the PREAMBLE.

     "HOLDINGS CERTIFICATE OF DESIGNATION" means that certain Certificate of
Designation, Performance and Rights of 15% Senior Preferred Stock due 2011 of
Holdings, dated November 16, 1999 and made pursuant to Section 151 of the
General Corporation Law of the State of Delaware.

     "HOLDINGS (UNIT) COMMON STOCK" is defined in CLAUSE (b) of the THIRD
RECITAL.

                                      -22-
<PAGE>

     "IMPERMISSIBLE QUALIFICATION" means any qualification or exception to the
opinion or certification of any independent public accountant as to any
financial statement of Holdings or either Borrower

          (a) which is of a "going concern" or similar nature;

          (b) which relates to the limited scope of examination of matters
     relevant to such financial statement; or

          (c) which relates to the treatment or classification of any item in
     such financial statement and which, as a condition to its removal, would
     require an adjustment to such item the effect of which would be to cause
     Holdings or such Borrower to be in Default.

     "INCLUDING" and "INCLUDE" means including without limiting the generality
of any description preceding such term, and, for purposes of each Loan Document,
the parties hereto agree that the rule of ejusdem generis shall not be
applicable to limit a general statement, which is followed by or referable to an
enumeration of specific matters, to matters similar to the matters specifically
mentioned.

     "INDEBTEDNESS" of any Person means, without duplication:

          (a) all obligations of such Person for borrowed money or advances and
     all obligations of such Person evidenced by bonds, debentures, notes or
     similar instruments;

          (b) all obligations, contingent or otherwise, relative to the face
     amount of all letters of credit, whether or not drawn, and banker's
     acceptances issued for the account of such Person;

          (c) all Capitalized Lease Liabilities of such Person;

          (d) net termination value of such Person under all of its Hedging
     Obligations as if such Hedging Obligations were terminated on the date of
     the determination of the amount of Indebtedness;

          (e) whether or not so included as liabilities in accordance with GAAP,
     all obligations of such Person to pay the deferred purchase price of
     property or services

                                      -23-
<PAGE>

     excluding trade accounts payable in the ordinary course of business which
     are not overdue for a period of more than 90 days or, if overdue for more
     than 90 days, as to which a dispute exists and adequate reserves in
     conformity with GAAP have been established on the books of such Person, and
     indebtedness secured by (or for which the holder of such indebtedness has
     an existing right, contingent or otherwise, to be secured by) a Lien on
     property owned or being acquired by such Person (including indebtedness
     arising under conditional sales or other title retention agreements),
     whether or not such indebtedness shall have been assumed by such Person or
     is limited in recourse;

          (f) obligations of such Person arising under Synthetic Leases;

          (g) Redeemable Capital Stock of such Person; and

          (h) all Contingent Liabilities of such Person in respect of any of the
     foregoing.

The Indebtedness of any Person shall include the Indebtedness of any other
entity (including any partnership in which such Person is a general partner) to
the extent such Person is liable therefor as a result of such Person's ownership
interest in or other relationship with such entity, except to the extent the
terms of such Indebtedness provide that such Person is not liable therefor.

          "INDEMNIFIED LIABILITIES" is defined in SECTION 11.4.

          "INDEMNIFIED PARTIES" is defined in SECTION 11.4.

     "INTERCO SUBORDINATION AGREEMENT" means the Intercompany Subordination
Agreement, substantially in the form of EXHIBIT K hereto, executed and delivered
by two or more Obligors pursuant to the terms of this Agreement, as amended,
supplemented, amended and restated or otherwise modified from time to time.

     "INTERCOMPANY NOTE" means, with respect to Holdings, either Borrower or any
of their respective Subsidiaries, as the maker thereof, a promissory note
substantially in the form of Exhibit A to the Security and Pledge Agreement
(with such modifications as the Administrative Agent may consent to, such
consent not to be unreasonably withheld), which promissory note shall evidence
all intercompany loans which may be made from time to time by the payee
thereunder to

                                      -24-
<PAGE>

such maker and shall be duly endorsed and pledged by the payee in favor of the
Administrative Agent.

     "INTEREST EXPENSE" means, for any Fiscal Quarter, the aggregate interest
expense (both accrued and paid) of Holdings, the Borrowers and their respective
Subsidiaries for such Fiscal Quarter, including the portion of any payments made
in respect of Capitalized Lease Liabilities allocable to interest expense (net
of interest income and net payments under Hedging Obligations relating to
interest rate swaps, caps or collars paid during such period to the Borrowers
and their respective Subsidiaries) or made in respect of Hedging Obligations
relating to interest rates swaps, caps or collars.

     "INTEREST PERIOD" means, relative to any LIBO Rate Loan, the period
beginning on (and including) the date on which such LIBO Rate Loan is made or
continued as, or converted into, a LIBO Rate Loan pursuant to SECTIONS 2.3 or
2.4 and shall end on (but exclude) the day which numerically corresponds to such
date one, two, three, six months or, if then generally available to each
applicable Lender, nine or twelve months thereafter (or, if such month has no
numerically corresponding day, on the last Business Day of such month), as the
applicable Borrower may select in its relevant notice pursuant to SECTIONS 2.3
or 2.4; PROVIDED, HOWEVER, that

          (a) such Borrower shall not be permitted to select Interest Periods to
     be in effect at any one time which have expiration dates occurring on more
     than ten different dates;

          (b) if such Interest Period would otherwise end on a day which is not
     a Business Day, such Interest Period shall end on the next following
     Business Day (unless such next following Business Day is the first Business
     Day of a calendar month, in which case such Interest Period shall end on
     the Business Day next preceding such numerically corresponding day); and

          (c) no Interest Period for any Loan may end later than the Stated
     Maturity Date for such Loan.

     "INVESTMENT" means, relative to any Person,

          (a) any loan, advance or extension of credit made by such Person to
     any other Person, including the purchase by such Person of any bonds,
     notes, debentures or other debt securities of any other Person; and

                                      -25-
<PAGE>

          (b) any Capital Securities held by such Person in any other Person.

The amount of any Investment shall be the original principal or capital amount
thereof less all returns of principal or equity thereon and shall, if made by
the transfer or exchange of property other than cash, be deemed to have been
made in an original principal or capital amount equal to the fair market value
of such property at the time of such Investment.

     "ISP RULES" is defined in SECTION 11.9.

     "ISSUANCE REQUEST" means a Letter of Credit request and certificate duly
executed by an Authorized Officer of the applicable Borrower, substantially in
the form of EXHIBIT B-2 hereto.

     "ISSUER" means the Administrative Agent in its capacity as Issuer of the
Letters of Credit. At the request of the Administrative Agent and with the
Borrowers' consent (not to be unreasonably withheld), another Lender or an
Affiliate of the Administrative Agent may issue one or more Letters of Credit
hereunder.

     "JLC" is defined in the PREAMBLE.

     "JLC CERTIFICATE OF DESIGNATION" means a certificate of designation
substantially in the form of the certificate of designation described in clause
(i) of the definition of the term "WRC Certificate of Designation" and relating
to the JLC PIK Preferred Equity.

     "JLC PIK PREFERRED EQUITY" is defined in CLAUSE (c) of the THIRD RECITAL.

     "JLC WARRANTS" is defined in CLAUSE (c) of the THIRD RECITAL.

     "LANDLORD WAIVER" means an agreement in favor of the Administrative Agent,
for the benefit of the Secured Parties, in form and substance reasonably
satisfactory to the Agents.

     "LENDER ASSIGNMENT AGREEMENT" means an assignment agreement substantially
in the form of EXHIBIT L hereto.

     "LENDERS" is defined in the PREAMBLE and includes each Person that becomes
a Lender pursuant to SECTION 11.11.1.

                                      -26-
<PAGE>

     "LENDER'S ENVIRONMENTAL LIABILITY" means any and all losses, liabilities,
obligations, penalties, claims, litigation, demands, defenses, costs, judgments,
suits, proceedings, damages (including consequential damages), disbursements or
expenses of any kind or nature whatsoever (including reasonable attorneys' fees
at trial and appellate levels and experts' fees and disbursements and expenses
incurred in investigating, defending against or prosecuting any litigation,
claim or proceeding) which may at any time be imposed upon, incurred by or
asserted or awarded against either Agent, any Lender or any Issuer or any of
such Person's Affiliates, shareholders, directors, officers, employees, and
agents in connection with or arising from:

          (a) any Hazardous Material on, in, under or affecting all or any
     portion of any property of Holdings, either Borrower or any of their
     respective Subsidiaries, the groundwater thereunder, or any surrounding
     areas thereof to the extent caused by Releases from Holdings', either
     Borrower's or any of their respective Subsidiaries' or any of their
     respective predecessors' properties;

          (b) any misrepresentation, inaccuracy or breach of any warranty,
     contained or referred to in SECTION 6.12;

          (c) any violation or claim of violation by Holdings, either Borrower
     or any of their respective Subsidiaries of any Environmental Laws; or

          (d) the imposition of any lien for damages caused by or the recovery
     of any costs for the cleanup, release or threatened release of Hazardous
     Material by Holdings, either Borrower or any of their respective
     Subsidiaries, or in connection with any property owned or formerly owned by
     Holdings, either Borrower or any of their respective Subsidiaries.

     "LETTER OF CREDIT" is defined in SECTION 2.1.2.

     "LETTER OF CREDIT COMMITMENT" means, with respect to an Issuer, such
Issuer's obligation to issue Letters of Credit pursuant to SECTION 2.1.2 and,
with respect to each Revolving Loan Lender, the obligations of each such Lender
to participate in such Letters of Credit pursuant to SECTION 2.6.1.

     "LETTER OF CREDIT COMMITMENT AMOUNT" means, on any date, a maximum amount
of $5,000,000, as such amount may be

                                      -27-
<PAGE>

permanently reduced from time to time pursuant to SECTION 2.2.

     "LETTER OF CREDIT OUTSTANDINGS" means, on any date, an amount equal to the
sum of (i) the then aggregate amount which is undrawn and available under all
issued and outstanding Letters of Credit, and (ii) the then aggregate amount of
all unpaid and outstanding Reimbursement Obligations.

     "LEVERAGE RATIO" means, as of the last day of any Fiscal Quarter, the ratio
of

          (a) Total Debt outstanding on the last day of such Fiscal Quarter
TO

          (b) EBITDA computed for the period consisting of such Fiscal Quarter
     and each of the three immediately preceding Fiscal Quarters.

     "LIBO RATE" means, relative to any Interest Period for LIBO Rate Loans, the
interest rate per annum for deposits in Dollars, if any, for a period equal to
the relevant Interest Period which appears on Telerate Page 3750 at
approximately 11:00 a.m., London time, prior to the commencement of such
Interest Period. If such a rate does not appear on Telerate Page 3750, the LIBO
Rate shall be the rate of interest equal to the average (rounded, if necessary,
to the nearest 1/100 of 1%) of the rates per annum at which Dollar deposits in
immediately available funds are offered to the Administrative Agent's LIBOR
Office in the London interbank market as at or about 11:00 a.m. London, England
time two Business Days prior to the beginning of such Interest Period for
delivery on the first day of such Interest Period, and in an amount
approximately equal to the amount of the Administrative Agent's LIBO Rate Loan
and for a period approximately equal to such Interest Period.

     "LIBO RATE LOAN" means a Loan bearing interest, at all times during an
Interest Period applicable to such Loan, at a rate of interest determined by
reference to the LIBO Rate (Reserve Adjusted).

     "LIBO RATE (RESERVE ADJUSTED)" means, relative to any Loan to be made,
continued or maintained as, or converted into, a LIBO Rate Loan for any Interest
Period, a rate per annum (rounded, if necessary, to the nearest 1/100 of 1%)
determined pursuant to the following formula:

                                      -28-
<PAGE>

         LIBO Rate         =            LIBO
RATE
  (Reserve Adjusted)              1.00 - LIBOR Reserve Percentage

The LIBO Rate (Reserve Adjusted) for any Interest Period for LIBO Rate Loans
will be determined by the Administrative Agent on the basis of the LIBOR Reserve
Percentage in effect two Business Days before the first day of such Interest
Period.

     "LIBOR OFFICE" means the office of a Lender designated as its "LIBOR
Office" on SCHEDULE II hereto or in a Lender Assignment Agreement, or such other
office designated from time to time by notice from such Lender to the Borrowers
and the Agents, whether or not outside the United States, which shall be making
or maintaining the LIBO Rate Loans of such Lender.

     "LIBOR RESERVE PERCENTAGE" means, relative to any Interest Period for LIBO
Rate Loans, the reserve percentage (expressed as a decimal) equal to the maximum
aggregate reserve requirements (including all basic, emergency, supplemental,
marginal and other reserves and taking into account any transitional adjustments
or other scheduled changes in reserve requirements) specified under regulations
issued from time to time by the F.R.S. Board and then applicable to assets or
liabilities consisting of or including "Eurocurrency Liabilities", as currently
defined in Regulation D of the F.R.S. Board, having a term approximately equal
or comparable to such Interest Period.

     "LIEN" means any security interest, mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or otherwise),
charge against or interest in property, or other priority or preferential
arrangement of any kind or nature whatsoever, to secure payment of a debt or
performance of an obligation.

     "LIFETIME" is defined in CLAUSE (a) of the SECOND RECITAL.

     "LOAN" means, as the context may require, a Revolving Loan, a Term Loan or
a Swing Line Loan of any type.

     "LOAN DOCUMENTS" collectively means this Agreement, the Letters of Credit,
each Secured Hedging Agreement, the Interco Subordination Agreement, the Fee
Letter, each agreement pursuant to which the Administrative Agent is granted a
Lien to secure the Obligations, each Credit Extension Request and each other
agreement which specifies

                                      -29-
<PAGE>

that it is a Loan Document and to which Holdings, either Borrower or any
Subsidiary Guarantor is a signatory.

     "MANAGEMENT FEES" means all management and similar fees payable to any
Person (including Ripplewood) by Holdings, either Borrower or any Subsidiary.

     "MATERIAL ADVERSE EFFECT" means a material adverse effect on (i) the
business, assets, condition (financial or otherwise), operations, performance,
properties or Projections of Holdings, the Borrowers and their respective
Subsidiaries, taken as a whole, (ii) the rights and remedies of any Secured
Party under any Loan Document or (iii) the ability of any Obligor to perform its
material Obligations under any Loan Document.

     "MOODY'S" means Moody's Investors Service, Inc.

     "MORTGAGE" means each mortgage, deed of trust or agreement executed and
delivered by any Obligor in favor of the Administrative Agent for the benefit of
the Secured Parties pursuant to the requirements of this Agreement in
substantially the form of EXHIBIT I-1 or EXHIBIT I-2 hereto, as applicable,
under which a Lien is granted on the real property and fixtures described
therein, in each case as amended, supplemented, amended and restated or
otherwise modified from time to time.

     "NET DEBT PROCEEDS" means, with respect to the incurrence, sale or issuance
by Holdings, either Borrower or any of their respective Subsidiaries of any
Indebtedness (other than Indebtedness permitted by SECTION 7.2.2), the EXCESS
of:

          (a) the gross cash proceeds received by Holdings, such Borrower or
     such Subsidiaries from such incurrence, sale or issuance,
OVER

          (b) all reasonable and customary underwriting commissions and legal,
     investment banking, brokerage and accounting and other professional fees,
     sales commissions and disbursements actually incurred in connection with
     such incurrence, sale or issuance which have not been paid to Affiliates of
     Holdings or either Borrower in connection therewith.

                                      -30-
<PAGE>

     "NET DISPOSITION PROCEEDS" means, with respect to any Disposition of any
assets of Holdings, either Borrower or any of their respective Subsidiaries
(other than pursuant to a Permitted Asset Disposition of the type not described
in clause (f) of the definition thereof), the EXCESS of

          (a) the gross cash proceeds received by Holdings, such Borrower or
     such Subsidiaries from any such Disposition and any cash payments received
     in respect of promissory notes or other non-cash consideration delivered to
     such Person in respect thereof,
OVER

          (b) the sum (without duplication) of (i) all reasonable and customary
     legal, investment banking, brokerage and accounting and other professional
     fees and disbursements actually incurred in connection with such
     Disposition which have not been paid to Affiliates of Holdings or either
     Borrower in connection therewith, (ii) all taxes and other governmental
     costs and expenses actually paid or estimated by such Person (in good
     faith) to be payable in cash in connection with such Disposition, (iii)
     payments made by such Person to retire Indebtedness (other than the Credit
     Extensions) of such Person where payment of such Indebtedness is required
     in connection with such Disposition and (iv) reserves for purchase price
     adjustments and retained fixed liabilities that are payable by such
     Borrower or such Subsidiary in cash to the extent required under GAAP in
     connection with such Disposition;

PROVIDED, HOWEVER, that if, after the payment of all taxes, purchase price
adjustments and retained fixed liabilities with respect to such Disposition, the
amount of estimated taxes, if any, pursuant to CLAUSE (b)(ii) above exceeded the
amount of taxes, purchase price adjustments and retained fixed liabilities
actually paid in cash in respect of such Disposition, the aggregate amount of
such excess shall, at such time, constitute Net Disposition Proceeds.

     "NET EQUITY PROCEEDS" means with respect to the sale or issuance by
Holdings, either Borrower or any of their respective Subsidiaries to any Person
(other than Holdings, either Borrower or any of their respective Subsidiaries)
of any Capital Securities, warrants or options or the exercise of any such
warrants or options (other than pursuant to a Permitted Equity Exchange), the
EXCESS of:

                                      -31-
<PAGE>

          (a) the gross cash proceeds received by Holdings, such Borrower or
     such Subsidiaries from such sale, exercise or issuance,
OVER

          (b) all reasonable and customary underwriting commissions and legal,
     investment banking, brokerage and accounting and other professional fees,
     sales commissions and disbursements actually incurred in connection with
     such sale or issuance which have not been paid to Affiliates of Holdings or
     either Borrower in connection therewith.

     "NET INCOME" means, for any period, the aggregate of all amounts (exclusive
of all amounts in respect of any extraordinary gains but including extraordinary
losses) which would be included as net income on the consolidated financial
statements of Holdings for such period.

     "NON-DEFAULTING LENDER" means a Lender that is not a Defaulting Lender.

     "NON-DOMESTIC LENDER" means any Lender that is not a "United States
person", as defined under Section 7701(a)(30) of the Code.

     "NON-EXCLUDED TAXES" means any Taxes other than income, franchise or
similar Taxes imposed on, or measured by, the net income of a Secured Party by a
Governmental Authority in the country or political subdivision therein in which
such Secured Party is organized or in which it maintains its applicable lending
office or in any other jurisdiction to which a Secured Party has any contact
constituting a basis for the imposition of such Taxes, other than a contact
arising solely from the Secured Party having executed, delivered, or performed
its obligations under, or received a payment under, or enforced this Agreement
or any other Loan Document.

     "NOTE" means, as the context may require, a Revolving Note, a Term A Note,
a Term B Note or a Swing Line Note.

     "OBLIGATIONS" means all obligations (monetary or otherwise, whether
absolute or contingent, matured or unmatured) of Holdings, each Borrower and
each other Obligor arising under or in connection with a Loan Document,
including the principal of and premium, if any, and interest (including interest
accruing during the pendency of any proceeding of the type described in SECTION
8.1.9, whether

                                      -32-
<PAGE>

or not allowed in such proceeding) on the Loans and all Reimbursement
Obligations.

     "OBLIGOR" means, as the context may require, Holdings, each Borrower and
each other Person (other than a Secured Party and the Seller) obligated under
any Loan Document and their permitted successors and assigns.

     "OECD" means the Organization for Economic Cooperation and Development.

     "OFFERING MEMORANDUM" means the Offering Memorandum, dated November 10,
1999, captioned "$152,000,000, WRC Media Inc., 152,000 Units Consisting of
12 3/4% Senior Subordinated Notes due 2009 of WRC Media Inc., Weekly Reader
Corporation and JLC Learning Corporation, and 205,656 Shares of common Stock of
WRC Media Inc."

     "ORGANIC DOCUMENT" means, relative to any Obligor or the Seller, as
applicable, its certificate of incorporation, by-laws, certificate of
partnership, partnership agreement, certificate of formation, limited liability
agreement and all certificates of designation, shareholder agreements, voting
trusts and similar arrangements applicable to any of such Obligor's or the
Seller's partnership interests, limited liability company interests or
authorized shares of Capital Securities.

     "OTHER TAXES" means any and all stamp, documentary or similar taxes, or any
other excise or property taxes or similar levies that arise on account of the
execution, delivery, registration, recording or enforcement of any Loan
Document.

     "PARTICIPANT" is defined in SECTION 11.11.2.

     "PATENT SECURITY AGREEMENT" means any Patent Security Agreement executed
and delivered by any Obligor in substantially the form of Exhibit B to the
Security and Pledge Agreement, as amended, supplemented, amended and restated or
otherwise modified from time to time.

     "PBGC" means the Pension Benefit Guaranty Corporation and any entity
succeeding to any or all of its functions under ERISA.

     "PENSION PLAN" means a "pension plan", as such term is defined in Section
3(2) of ERISA, which is subject to Title IV of ERISA (other than a multiemployer
plan as defined in Section 4001(a)(3) of ERISA), and to which

                                      -33-
<PAGE>

Holdings, either Borrower or any corporation, trade or business that is, along
with Holdings or such Borrower, a member of a Controlled Group, may have
liability, including any liability by reason of having been a substantial
employer within the meaning of Section 4063 of ERISA at any time during the
preceding five years, or by reason of being deemed to be a contributing sponsor
under Section 4069 of ERISA.

     "PERCENTAGE" means, as the context may require, any Lender's RL Percentage,
Term A Percentage or Term B Percentage.

     "PERFECTION CERTIFICATE" means the Perfection Certificate executed and
delivered by an Authorized Officer of each Obligor that is a party to the
Security and Pledge Agreement pursuant to SECTION 5.1.15 or 7.1.8, substantially
in the form of EXHIBIT H hereto, as amended, supplemented, amended and restated
or otherwise modified from time to time.

     "PERMITTED ACQUISITION" means an Acquisition by either Borrower or any of
its Subsidiaries in which the following conditions are satisfied:

          (a) immediately before and after giving effect to such Acquisition no
     Specified Default shall have occurred and be continuing or would result
     therefrom (including under SECTION 7.2.1); and

          (b) Holdings shall have delivered to the Agents a Compliance
     Certificate for the period of four full Fiscal Quarters immediately
     preceding such Acquisition (prepared in good faith and in a manner and
     using such methodology which is consistent with the most recent financial
     statements delivered pursuant to SECTION 7.1.1) giving PRO FORMA effect to
     the consummation of such Acquisition and evidencing compliance with the
     covenants set forth in SECTION 7.2.4.

     "PERMITTED ASSET DISPOSITION" means any Disposition consisting of (a)
Dispositions of inventory in the ordinary course of business, (b) Dispositions
of equipment which, in the aggregate during any Fiscal Year, have a fair market
value or book value, whichever is greater, of not more than $1,500,000, (c)
Dispositions of property that is substantially worn, damaged, obsolete or, in
the judgment of either Borrower, no longer best used or useful in its respective
business or that of any of its respective Subsidiaries, (d) leases or subleases
of real property and

                                      -34-
<PAGE>

the licensing of intellectual property in the ordinary course of business, (e)
Dispositions of property to either of the Borrowers or any of their respective
Subsidiaries or (f) Restricted Asset Dispositions in a single transaction or
series of transactions.

     "PERMITTED COMMON STOCK EXCHANGE" means a Permitted Equity Exchange of the
type set forth in (i) CLAUSE (iv) of the definition thereof or (ii) CLAUSE (v)
of the definition thereof.

     "PERMITTED EQUITY EXCHANGE" means (i) the issuance by JLC or WRC of common
stock upon the exercise of the JLC Warrants or the WRC Warrants, respectively,
(ii) the issuance by JLC and/or WRC of JLC PIK Preferred Equity and/or WRC PIK I
Preferred Equity in exchange for all of the PIK Preferred Equity, (iii) the
issuance by JLC and/or WRC of preferred stock to the holders of the JLC PIK
Preferred Equity and/or the WRC PIK Preferred Equity that is identical to such
JLC PIK Preferred Equity and/or such WRC PIK Preferred Equity, except that such
preferred stock is not subject to restrictions upon transfer under the federal
securities laws, (iv) the issuance of common stock of WRC and WRC PIK II
Preferred Equity to Holdings pursuant to a transaction permitted under SECTION
11.12, (v) the issuance of common stock of WRC in exchange for the Holdings
(Unit) Common Stock (A) in connection with (1) a Public Offering relating to WRC
or (2) to the extent permitted hereunder, the sale of all or substantially all
of the assets of WRC or (B) in connection with a transaction permitted under
SECTION 11.12 or (vi) in connection with a Public Offering relating to Holdings,
the issuance of common stock of Holdings in exchange for JLC Warrants (or
warrant shares issued by JLC in connection with the exchange of such JLC
Warrants) and/or WRC Warrants (or warrant shares issued by WRC in connection
with the exchange of such WRC Warrants), in each case to the holders of such
Capital Securities so being exchanged.

     "PERSON" means any natural person, corporation, limited liability company,
partnership, joint venture, association, trust or unincorporated organization,
Governmental Authority or any other legal entity, whether acting in an
individual, fiduciary or other capacity.

     "PIK PREFERRED EQUITY" is defined in CLAUSE (c) of the THIRD RECITAL.

     "PIK PREFERRED EQUITY HOLDERS" is defined in CLAUSE (c) of the THIRD
RECITAL.

                                      -35-
<PAGE>

     "PIK PREFERRED EQUITY ISSUANCE" is defined in CLAUSE (c) of the THIRD
RECITAL.

     "PLEDGED SUBSIDIARY" means each Subsidiary in respect of which the
Administrative Agent has been granted a security interest in or a pledge of (i)
any of the Capital Securities of such Subsidiary or (ii) any intercompany notes
of such Subsidiary owing to either Borrower or another Subsidiary.

     "PREFERRED STOCKHOLDERS AGREEMENT" is defined in CLAUSE (c) of the THIRD
RECITAL.

     "PRI" is defined in CLAUSE (a) of the SECOND RECITAL.

     "PROJECTIONS" is defined in CLAUSE (a)(iii) of SECTION 5.1.8.

     "PUBLIC MARKET" shall exist if (i) a Public Offering has been consummated
and (ii) any Capital Securities of Holdings has been distributed by means of an
effective registration statement under the Securities Act of 1933, as amended.

     "PUBLIC OFFERING" means a public offering of the outstanding Capital
Securities of Holdings or WRC pursuant to an effective registration statement
under the Securities Act of 1933, as amended, resulting in Net Equity Proceeds
of at least $60,000,000..

     "PURCHASE AGREEMENT" is defined in the FIRST RECITAL.

     "QUARTERLY PAYMENT DATE" means the last Business Day of March, June,
September and December.

     "REDEEMABLE CAPITAL STOCK" means, with respect to any Person, any class of
Capital Securities of such Person or any of its Subsidiaries which, either by
its terms, by the terms of any security into which it is convertible or
exchangeable or otherwise, (a) is or upon the happening of an event or passage
of time would be required to be redeemed on or prior to the first anniversary of
the Stated Maturity Date for the Term Loans, (b) is redeemable at the option of
the holder thereof at any time prior to such anniversary or (c) is convertible
into or exchangeable for debt securities of such Person or any of its
Subsidiaries at any time prior to such anniversary.

     "REFINANCING" is defined in CLAUSE (c) of the SECOND RECITAL.

                                      -36-
<PAGE>

     "REFUNDED SWING LINE LOANS" is defined in CLAUSE (b) of SECTION 2.3.2.

     "REGISTER" is defined in SECTION 2.7(b).

     "REIMBURSEMENT OBLIGATION" is defined in SECTION 2.6.3.

     "RELATED FUND" means, with respect to any Lender that is a fund that
invests in commercial loans, any other fund that invests in commercial loans and
is managed or advised by the same investment advisor as such Lender or by an
Affiliate of such investment advisor.

     "RELEASE" means a "RELEASE", as such term is defined in CERCLA.

     "REPLACEMENT LENDER" is defined in SECTION 4.9.

     "REPLACEMENT NOTICE" is defined in SECTION 4.9.

     "REQUIRED LENDERS" means, at any time,

          (a) prior to the Closing Date, Lenders having at least 51% of the Term
     Loan Commitments and the Revolving Loan Commitments; and

          (b) on and after the Closing Date, Non-Defaulting Lenders holding at
     least 51% of (i) the Total Exposure Amount of Non- Defaulting Lenders or
     (ii) if the Revolving Loan Commitments shall have been terminated or
     expired or for purposes of acceleration pursuant to SECTION 8.3, the
     aggregate principal amount of the then outstanding Loans and Letter of
     Credit Outstandings of Non-Defaulting Lenders.

     "RESOURCE CONSERVATION AND RECOVERY ACT" means the Resource Conservation
and Recovery Act, 42 U.S.C. Section 6901, ET SEQ., as amended.

     "RESPONSIBLE OFFICER" means, with respect to any Person, its chief
executive officer, president or any vice president, managing director, chief
operating officer, chief financial or accounting officer, treasurer, controller
or other officer thereof having substantially the same authority and
responsibility; or, with respect to compliance with financial covenants, the
chief financial or accounting officer, treasurer or controller of such Person,
or any other officer having substantially the same authority and responsibility.

                                      -37-
<PAGE>

     "RESTRICTED ASSET DISPOSITION" means any Disposition other than a
Disposition referred to in CLAUSES (a) through (e) of the definition of
Permitted Asset Disposition having an aggregate fair market value or book value,
whichever is greater, of not more than $2,500,000; PROVIDED that the proceeds
therefrom shall be applied as provided in SECTION 3.1.1(e).

     "RESTRICTED PAYMENT" means (a) the declaration or payment of any dividend
(other than dividends payable solely in Capital Securities of either Borrower)
on, or the making of any payment or distribution on account of, or setting apart
assets for a sinking or other analogous fund for, the purchase, redemption,
defeasance, retirement or other acquisition of any class of Capital Securities
of either Borrower or any Subsidiary or any warrants or options to purchase any
such Capital Securities, whether now or hereafter outstanding, or the making of
any other distribution in respect thereof, either directly or indirectly,
whether in cash or property, obligations of either Borrower or any Subsidiary or
otherwise, (b) the exchange of the Capital Securities of either Borrower for the
Capital Securities of Holdings other than in connection with a Permitted Equity
Exchange, (c) the making of any Investment in Holdings by any of its
Subsidiaries, or (d) the payment of any Management Fee.

     "REVOLVING LOAN" is defined in SECTION 2.1.1.

     "REVOLVING LOAN COMMITMENT" means, relative to any Lender, such Lender's
obligation (if any) to make Revolving Loans pursuant to CLAUSE (a) of SECTION
2.1.1. A Lender shall not have a Revolving Loan Commitment if its RL Percentage
is zero.

     "REVOLVING LOAN COMMITMENT AMOUNT" means, on any date, $30,000,000, as such
amount may be reduced from time to time pursuant to SECTION 2.2.

     "REVOLVING LOAN COMMITMENT TERMINATION DATE" means the earliest of

          (a) December 31, 1999 (if the initial Credit Extension has not
     occurred on or prior to such date);

          (b) November 17, 2005;

          (c) the date on which the Revolving Loan Commitment Amount is
     terminated in full or reduced to zero pursuant to the terms of this
     Agreement; and

                                      -38-
<PAGE>

          (d) the date on which any Commitment Termination Event occurs.

Upon the occurrence of any event described in the preceding CLAUSE (c) or (d),
the Revolving Loan Commitments shall terminate automatically and without any
further action.

     "REVOLVING LOAN LENDER" is defined in CLAUSE (a) of SECTION 2.1.1.

     "REVOLVING NOTE" means a joint and several promissory note of the Borrowers
payable to any Revolving Loan Lender, in the form of EXHIBIT A-1 hereto (as such
promissory note may be amended, endorsed or otherwise modified from time to
time), evidencing the aggregate Indebtedness of the Borrowers to such Revolving
Loan Lender resulting from outstanding Revolving Loans, and also means all other
promissory notes accepted from time to time in substitution therefor or renewal
thereof.

     "RIPPLEWOOD" is defined in CLAUSE (a) of the THIRD RECITAL.

     "RL PERCENTAGE" means, relative to any Lender, the applicable percentage
relating to Revolving Loans set forth on SCHEDULE II hereto under the Revolving
Loan Commitment column or set forth in a Lender Assignment Agreement under the
Revolving Loan Commitment column, as such percentage may be adjusted from time
to time pursuant to Lender Assignment Agreements executed by such Lender and its
Assignee Lender and delivered pursuant to SECTION 11.11.1.

     "ROLLOVER EQUITY" is defined in CLAUSE (b) of the SECOND RECITAL.

     "S&P" means Standard & Poor's Rating Services, a division of McGraw-Hill,
Inc.

     "SEC" means the Securities and Exchange Commission.

     "SECURED HEDGING AGREEMENTS" means, collectively, all currency exchange
agreements, interest rate swap agreements, interest rate cap agreements and
interest rate collar agreements, and all other agreements or arrangements
designed to protect either Borrower or any of its Subsidiaries against
fluctuations in interest rates or currency exchange rates that are entered into
in the ordinary course of business to limit risks of currency or interest rate
fluctuations and not for speculative purposes by such Borrower or any such
Subsidiary and under which the

                                      -39-
<PAGE>

counterparty of such agreement is (or at the time such agreement was entered
into, was) a Lender or an Affiliate of a Lender.

     "SECURED PARTIES" means, collectively, the Lenders, the Issuers, the
Agents, each counterparty to a Secured Hedging Agreement that is (or at the time
such Secured Hedging Agreement was entered into, was) a Lender or an Affiliate
thereof and (in each case), each of their respective successors, transferees and
assigns.

     "SECURITY AND PLEDGE AGREEMENT" means the Security and Pledge Agreement
executed and delivered by an Authorized Officer of Holdings, each Borrower and
each Subsidiary Guarantor pursuant to SECTION 5.1.13 or 7.1.8, substantially in
the form of EXHIBIT G-1 hereto, as amended, supplemented, amended and restated
or otherwise modified from time to time.

     "SELLER PLEDGE AGREEMENT" means the Pledge Agreement executed and delivered
by an Authorized Officer of Seller pursuant to SECTION 5.1.13, substantially in
the form of EXHIBIT G-2 hereto, as amended, supplemented, amended and restated
or otherwise modified from time to time

     "SELLER" is defined in the FIRST RECITAL.

     "SOLVENT" means, with respect to any Person and its Subsidiaries on a
particular date, that on such date (a) the fair value of the property of such
Person and its Subsidiaries on a consolidated basis is greater than the total
amount of liabilities, including contingent liabilities, of such Person and its
Subsidiaries on a consolidated basis, (b) the present fair salable value of the
assets of such Person and its Subsidiaries on a consolidated basis is not less
than the amount that will be required to pay the probable liability of such
Person and its Subsidiaries on a consolidated basis on its debts as they become
absolute and matured, (c) such Person does not intend to, and does not believe
that it or its Subsidiaries will, incur debts or liabilities beyond the ability
of such Person and its Subsidiaries to pay as such debts and liabilities mature,
and (d) such Person and its Subsidiaries on a consolidated basis is not engaged
in business or a transaction, and such Person and its Subsidiaries on a
consolidated basis is not about to engage in business or a transaction, for
which the property of such Person and its Subsidiaries on a consolidated basis
would constitute an unreasonably small capital. The amount of Contingent
Liabilities at any time shall be computed as the amount

                                      -40-
<PAGE>

that, in light of all the facts and circumstances existing at such time, can
reasonably be expected to become an actual or matured liability.

     "SPECIFIED DEFAULT" means the occurrence and continuance of (a) a Default
under SECTION 8.1.1 or SECTION 8.1.9 or (b) any Event of Default.

     "STATED AMOUNT" means, on any date and with respect to a particular Letter
of Credit, the total amount then available to be drawn under such Letter of
Credit.

     "STATED EXPIRY DATE" is defined in SECTION 2.6.

     "STATED MATURITY DATE" means

          (a) with respect to all Term A Loans, November 17, 2005;

          (b) with respect to all Term B Loans, November 17, 2006; and

          (c) with respect to all Revolving Loans and Swing Line Loans, November
     17, 2005.

     "SUB DEBT DOCUMENTS" means, collectively, the loan agreements, indentures,
note purchase agreements, promissory notes, guarantees, and other instruments
(including the Subordinated Notes) and agreements evidencing the terms of
Subordinated Debt, as amended, supplemented, amended and restated or otherwise
modified in accordance with SECTION 7.2.12.

     "SUBORDINATED DEBT" means unsecured Indebtedness of each Obligor (including
the Indebtedness evidenced by the Subordinated Notes) subordinated in right of
payment to the monetary Obligations pursuant to documentation containing
redemption and other prepayment events, maturities, amortization schedules,
covenants, events of default, remedies, acceleration rights, subordination
provisions and other material terms satisfactory to the Required Lenders.

     "SUBORDINATED NOTE ISSUANCE" is defined in CLAUSE (b) of the THIRD RECITAL.

     "SUBORDINATED NOTES" is defined in CLAUSE (b) of the THIRD RECITAL.

                                      -41-
<PAGE>

     "SUBSCRIPTION AGREEMENT" means that certain Preferred Stock and Warrants
Subscription Agreement, dated as of November 17, 1999, among Holdings, WRC, JLC
and the buyers named therein.

     "SUBSIDIARY" means, with respect to any Person, any corporation, limited
liability company, partnership or other entity of which more than 50% of the
outstanding Voting Securities (irrespective of whether at the time Capital
Securities of any other class or classes of such corporation, limited liability
company, partnership or other entity shall or might have voting power upon the
occurrence of any contingency) is at the time directly or indirectly owned or
controlled by such Person, by such Person and one or more other Subsidiaries of
such Person, or by one or more other Subsidiaries of such Person. Unless the
context otherwise specifically requires, the term "Subsidiary" shall be a
reference to a Subsidiary of the applicable Borrower.

     "SUBSIDIARY GUARANTOR" means each Domestic Subsidiary that has executed and
delivered to the Administrative Agent the Subsidiary Guaranty (or a supplement
thereto).

     "SUBSIDIARY GUARANTY" means the subsidiary guaranty executed and delivered
by each Subsidiary Guarantor pursuant to the terms of this Agreement,
substantially in the form of EXHIBIT J hereto, as amended, supplemented, amended
and restated or otherwise modified from time to time.

     "SWING LINE LENDER" means, subject to the terms of this Agreement, the
Administrative Agent.

     "SWING LINE LOAN" is defined in CLAUSE (b) of SECTION 2.1.1.

     "SWING LINE LOAN COMMITMENT" is defined in CLAUSE (b) of SECTION 2.1.1.

     "SWING LINE LOAN COMMITMENT AMOUNT" means, on any date, $5,000,000, as such
amount may be reduced from time to time pursuant to SECTION 2.2.

     "SWING LINE NOTE" means a joint and several promissory note of the
Borrowers payable to the Swing Line Lender, in the form of EXHIBIT A-4 hereto
(as such promissory note may be amended, endorsed or otherwise modified from
time to time), evidencing the aggregate Indebtedness of the Borrowers to the
Swing Line Lender resulting from outstanding Swing Line Loans, and also means
all other

                                      -42-
<PAGE>

promissory notes accepted from time to time in substitution therefor or renewal
thereof.

     "SYNDICATION AGENT" is defined in the PREAMBLE.

     "SYNTHETIC LEASE" means, as applied to any Person, any lease (including
leases that may be terminated by the lessee at any time) of any property
(whether real, personal or mixed) (i) that is not a capital lease in accordance
with GAAP and (ii) in respect of which the lessee retains or obtains ownership
of the property so leased for federal income tax purposes, other than any such
lease under which that Person is the lessor.

     "TAX SHARING AGREEMENT" means the Tax Sharing Agreement, dated November 17,
1999, among Holdings and each of its Subsidiaries, as the same may be amended,
supplemented, amended and restated or otherwise modified from time to time in
accordance with the terms thereof.

     "TAXES" means any and all income, stamp or other taxes, duties, levies,
imposts, charges, fees, deductions or withholdings, now or hereafter imposed,
levied, collected, withheld or assessed by any Governmental Authority, and all
interest, penalties or similar liabilities with respect thereto.

     "TELERATE PAGE 3750" means the display designated as "Page 3750" on the
Telerate Service (or such other page as may replace Page 3750 on the service or
such other service as may be nominated by the British Bankers' Association as
the information vendor for the purpose of displaying British Bankers'
Association interest settlement rates for Dollar deposits).

     "TERM A LOAN" is defined in CLAUSE (a) of SECTION 2.1.3.

     "TERM A LOAN COMMITMENT" means, relative to any Lender, such Lender's
obligation (if any) to make Term A Loans pursuant to CLAUSE (a) of SECTION
2.1.3.

     "TERM A LOAN COMMITMENT AMOUNT" means, on any date, $31,000,000.

     "TERM A LOAN COMMITMENT TERMINATION DATE" means the earliest of

          (a) December 31, 1999 (if the Term A Loans have not been made on or
     prior to such date);

                                      -43-
<PAGE>

          (b) the Closing Date (immediately after the making of the Term A Loans
     on such date); and

          (c) the date on which any Commitment Termination Event occurs.

Upon the occurrence of any event described in CLAUSE (b) or (c), the Term A Loan
Commitments shall terminate automatically and without any further action.

     "TERM A NOTE" means a joint and several promissory note of the Borrowers
payable to any Lender, in the form of EXHIBIT A-2 hereto (as such promissory
note may be amended, endorsed or otherwise modified from time to time),
evidencing the aggregate Indebtedness of the Borrowers to such Lender resulting
from outstanding Term A Loans, and also means all other promissory notes
accepted from time to time in substitution therefor or renewal thereof.

     "TERM A PERCENTAGE" means, relative to any Lender, the applicable
percentage relating to Term A Loans set forth on SCHEDULE II hereto under the
Term A Loan Commitment column or set forth in a Lender Assignment Agreement
under the Term A Loan Commitment column, as such percentage may be adjusted from
time to time pursuant to Lender Assignment Agreements executed by such Lender
and its Assignee Lender and delivered pursuant to SECTION 11.11.1. A Lender
shall not have any Term A Loan Commitment if its percentage under the Term A
Loan Commitment column is zero.

     "TERM B LOAN" is defined in CLAUSE (b) of SECTION 2.1.3.

     "TERM B LOAN COMMITMENT" means, relative to any Lender, such Lender's
obligation (if any) to make Term B Loans pursuant to CLAUSE (b) of SECTION
2.1.3.

     "TERM B LOAN COMMITMENT AMOUNT" means, on any date, $100,000,000.

     "TERM B LOAN COMMITMENT TERMINATION DATE" means the earliest of

          (a) December 31, 1999 (if the Term B Loans have not been made on or
     prior to such date);

          (b) the Closing Date (immediately after the making of the Term B Loans
     on such date); and

                                      -44-
<PAGE>

          (c) the date on which any Commitment Termination Event occurs.

Upon the occurrence of any event described in CLAUSE (b) or (c), the Term B Loan
Commitments shall terminate automatically and without any further action.

     "TERM B NOTE" means a joint and several promissory note of the Borrowers
payable to any Lender, in the form of EXHIBIT A-3 hereto (as such promissory
note may be amended, endorsed or otherwise modified from time to time),
evidencing the aggregate Indebtedness of the Borrowers to such Lender resulting
from outstanding Term B Loans, and also means all other promissory notes
accepted from time to time in substitution therefor or renewal thereof.

     "TERM B PERCENTAGE" means, relative to any Lender, the applicable
percentage relating to Term B Loans set forth on SCHEDULE II hereto under the
Term B Loan Commitment column or set forth in a Lender Assignment Agreement
under the Term B Loan Commitment column, as such percentage may be adjusted from
time to time pursuant to Lender Assignment Agreements executed by such Lender
and its Assignee Lender and delivered pursuant to SECTION 11.11.1. A Lender
shall not have any Term B Loan Commitment if its percentage under the Term B
Loan Commitment column is zero.

     "TERM LOANS" means, collectively, the Term A Loans and the Term B Loans.

     "TERMINATION DATE" means the date on which all monetary Obligations have
been paid in full in cash, all Letters of Credit have been terminated or expired
(or the Administrative Agent shall have received immediately available funds in
an amount equal to all Letter of Credit Outstandings, deposited in a cash
collateral account with the Administrative Agent or its designee on terms
satisfactory to the Administrative Agent), all Secured Hedging Agreements have
been terminated and all Commitments shall have terminated.

     "TOTAL DEBT" means, on any date, the outstanding principal amount of all
Indebtedness of Holdings, the Borrowers and their respective Subsidiaries of the
type referred to in CLAUSE (a), CLAUSE (b), CLAUSE (c), CLAUSE (f) and CLAUSE
(g), in each case of the definition of "Indebtedness" and any Contingent
Liability in respect of any of the foregoing.

                                      -45-
<PAGE>

     "TOTAL EXPOSURE AMOUNT" means, on any date of determination (and without
duplication), the outstanding principal amount of all Loans, the aggregate
amount of all Letter of Credit Outstandings and the unfunded amount of the
Commitments.

     "TRADEMARK SECURITY AGREEMENT" means any Trademark Security Agreement
executed and delivered by any Obligor substantially in the form of Exhibit C to
the Security and Pledge Agreement, as amended, supplemented, amended and
restated or otherwise modified from time to time.

     "TRANCHE" means, as the context may require, the Loans constituting Term A
Loans, Term B Loans, Revolving Loans or Swing Line Loans.

     "TRANSACTION" is defined in CLAUSE (c) of the SECOND RECITAL.

     "TRANSACTION DOCUMENTS" means the Purchase Agreement, the Organic Documents
of each Borrower and Holdings, the Sub Debt Documents, the Preferred
Stockholders Agreement, the Subscription Agreement, the Certificates of
Designation, the Units Shareholders Agreement and the Tax Sharing Agreement, in
each case as amended, supplemented, amended and restated or otherwise modified
from time to time in accordance with SECTION 7.2.12.

     "TYPE" means, relative to any Loan, the portion thereof, if any, being
maintained as a Base Rate Loan or a LIBO Rate Loan.

     "U.C.C." means the Uniform Commercial Code as in effect from time to time
in the State of New York; PROVIDED, that if, with respect to any Filing
Statement or by reason of any provisions of law, the perfection or the effect of
perfection or non-perfection of the security interests granted to the
Administrative Agent pursuant to the applicable Loan Document is governed by the
Uniform Commercial Code as in effect in a jurisdiction of the United States
other than New York, U.C.C. means the Uniform Commercial Code as in effect from
time to time in such other jurisdiction for purposes of the provisions of this
Agreement, each Loan Document and any Filing Statement relating to such
perfection or effect of perfection or non-perfection.

     "UNIFORM CUSTOMS" is defined in SECTION 11.9.

                                      -46-
<PAGE>

     "UNITED STATES" or "U.S." means the United States of America, its fifty
states and the District of Columbia.

     "UNITS SHAREHOLDERS AGREEMENT" means the Stockholders Agreement, dated as
of November 17, 1999, among Holdings, the Borrowers, EAC III, Donaldson, Lufkin
& Jenrette Securities Corporation and Bank of America Securities LLC, as the
same may be amended, supplemented, amended and restated or otherwise in
accordance with the terms hereof.

     "VOTING SECURITIES" means, with respect to any Person, Capital Securities
of any class or kind ordinarily having the power to vote for the election of
directors, managers or other voting members of the governing body of such
Person.

     "WELFARE PLAN" means a "WELFARE PLAN", as such term is defined in Section
3(1) of ERISA.

     "WHOLLY OWNED" means any Subsidiary all of the outstanding common stock (or
similar equity interest) of which (other than any director's qualifying shares
or investments by foreign nationals mandated by applicable laws) is owned
directly or indirectly by either Borrower.

     "WRC" is defined in the PREAMBLE.

     "WRC CERTIFICATE DESIGNATION" means (i) that certain Certificate of
Designation of 15% Senior Preferred Stock due 2011 of WRC, dated November 16,
1999 and made pursuant to Section 151 of the General Corporation Law of the
State of Delaware and (ii) each other certificate of designation in
substantially the same form as the certificate of designation described in
CLAUSE (i) above and relating to the WRC PIK Preferred Equity.

     "WRC MIRROR PIK PREFERRED EQUITY" is defined in CLAUSE (e) of the THIRD
RECITAL.

     "WRC PIK PREFERRED EQUITY" means, as the context may require, the WRC PIK I
Preferred Equity and/or the WRC PIK II Preferred Equity, which shall not have an
aggregate liquidation preference exceeding an amount equal to the sum of (x)
$75,000,000, (y) any accrued but unpaid dividends on the PIK Preferred Equity
and (z) the aggregate liquidation preference of additional PIK Preferred Equity
issued in lieu of cash dividends on the PIK Preferred Equity.

     "WRC PIK I PREFERRED EQUITY" is defined in CLAUSE (c) of the THIRD RECITAL.

                                      -47-
<PAGE>

     "WRC PIK II PREFERRED EQUITY" is defined in CLAUSE (c) of the THIRD
RECITAL.

     "WRC WARRANTS" is defined in CLAUSE (c) of the THIRD RECITAL.

     SECTION 1.2. USE OF DEFINED TERMS. Unless otherwise defined or the context
otherwise requires, terms for which meanings are provided in this Agreement
shall have such meanings when used in each other Loan Document and the
Disclosure Schedule.

     SECTION 1.3. CROSS-REFERENCES. Unless otherwise specified, references in a
Loan Document to any Article or Section are references to such Article or
Section of such Loan Document, and references in any Article, Section or
definition to any clause are references to such clause of such Article, Section
or definition.

     SECTION 1.4. ACCOUNTING AND FINANCIAL DETERMINATIONS. Unless otherwise
specified, all accounting terms used in each Loan Document shall be interpreted,
and all accounting determinations and computations thereunder (including under
SECTION 7.2.4 and the definitions used in such calculations) shall be made, in
accordance with those generally accepted accounting principles ("GAAP") applied
in the preparation of the financial statements referred to in CLAUSE (a) of
SECTION 5.1.8. Unless otherwise expressly provided, all financial covenants and
defined financial terms shall be computed on a consolidated basis for Holdings,
the Borrowers and their respective Subsidiaries, in each case without
duplication.

                                   ARTICLE II
                       COMMITMENTS, BORROWING AND ISSUANCE
                     PROCEDURES, NOTES AND LETTERS OF CREDIT

     SECTION 2.1. COMMITMENTS. On the terms and subject to the conditions of
this Agreement, the Lenders and the Issuers severally agree to make Credit
Extensions as set forth below.

     SECTION 2.1.1. REVOLVING LOAN COMMITMENT AND SWING LINE LOAN COMMITMENT.
From time to time on any Business Day occurring from and after the Effective
Date but prior to the Revolving Loan Commitment Termination Date,

          (a) each Lender that has a Revolving Loan Commitment (referred to as a
     "REVOLVING LOAN LENDER")

                                      -48-
<PAGE>

     agrees that it will make loans (relative to such Lender, its "REVOLVING
     LOANS") to the applicable Borrower equal to such Lender's RL Percentage of
     the aggregate amount of each Borrowing of the Revolving Loans requested by
     such Borrower to be made on such day; and

          (b) the Swing Line Lender agrees that it will make loans (its "SWING
     LINE LOANS") to the applicable Borrower equal to the principal amount of
     the Swing Line Loan requested by such Borrower to be made on such day. The
     Commitment of the Swing Line Lender described in this clause is herein
     referred to as its "SWING LINE LOAN COMMITMENT".

On the terms and subject to the conditions hereof, each Borrower may from time
to time borrow, prepay and reborrow Revolving Loans and Swing Line Loans. No
Revolving Loan Lender shall be permitted or required to make any Revolving Loan
if, after giving effect thereto, the aggregate outstanding principal amount of
all Revolving Loans of such Revolving Loan Lender, together with such Lender's
RL Percentage of the aggregate amount of all Swing Line Loans and Letter of
Credit Outstandings, would exceed such Lender's RL Percentage of the then
existing Revolving Loan Commitment Amount. Furthermore, the Swing Line Lender
shall not be permitted or required to make Swing Line Loans if, after giving
effect thereto, (i) the aggregate outstanding principal amount of all Swing Line
Loans would exceed the then existing Swing Line Loan Commitment Amount (ii) the
sum of the aggregate amount of all outstanding Swing Line Loans PLUS the
aggregate amount of all Revolving Loans and Letter of Credit Outstandings would
exceed the Revolving Loan Commitment Amount or (iii) unless otherwise agreed to
by the Swing Line Lender, in its sole discretion, the sum of all Swing Line
Loans and Revolving Loans made by the Swing Line Lender PLUS the Swing Line
Lender's RL Percentage of the aggregate amount of Letter of Credit Outstandings
would exceed the Swing Line Lender's RL Percentage of the then existing
Revolving Loan Commitment Amount.

     SECTION 2.1.2. LETTER OF CREDIT COMMITMENT. From time to time on any
Business Day occurring from and after the Effective Date but prior to the
Revolving Loan Commitment Termination Date, the relevant Issuer agrees that it
will

          (a) issue one or more letters of credit (relative to such Issuer, its
     "LETTER OF CREDIT") for the account of the applicable Borrower or any of
     its Subsidiaries

                                      -49-
<PAGE>

     in the Stated Amount requested by such Borrower on such day; or

          (b) extend the Stated Expiry Date of an existing standby Letter of
     Credit previously issued hereunder.

No Stated Expiry Date shall be scheduled to occur beyond the earlier of (i) the
Revolving Loan Commitment Termination Date and (ii) unless otherwise agreed to
by the Issuer in its sole discretion, one year from the date of such issuance or
extension. No Issuer shall be permitted or required to issue any Letter of
Credit if, after giving effect thereto, (i) the aggregate amount of all Letter
of Credit Outstandings would exceed the Letter of Credit Commitment Amount or
(ii) the sum of the aggregate amount of all Letter of Credit Outstandings plus
the aggregate principal amount of all Revolving Loans and Swing Line Loans then
outstanding would exceed the Revolving Loan Commitment Amount.

     SECTION 2.1.3. TERM LOAN COMMITMENT. On the same day (which shall be a
Business Day) on or prior to the applicable Commitment Termination Date, each
Lender that has a Term A Loan Commitment or a Term B Loan Commitment, as
applicable, agrees that it will

          (a) make loans (relative to such Lender, its "TERM A LOANS") to the
     applicable Borrower equal to such Lender's Term A Percentage of the
     aggregate amount of the Borrowing of Term A Loans requested by such
     Borrower to be made on such day; and

          (b) make loans (relative to such Lender, its "TERM B LOANS") to the
     applicable Borrower equal to such Lender's Term B Percentage of the
     aggregate amount of the Borrowing of Term B Loans requested by such
     Borrower to be made on such day.

No amounts paid or prepaid with respect to Term Loans may be reborrowed.

     SECTION 2.2. REDUCTION OF THE COMMITMENT AMOUNTS. The Commitment Amounts
are subject to reduction from time to time pursuant to this SECTION 2.2.

     SECTION 2.2.1. OPTIONAL. The Borrowers may, from time to time on any
Business Day, voluntarily reduce the amount of the Revolving Loan Commitment
Amount, the Swing Line Loan Commitment Amount or the Letter of Credit Commitment
Amount on the Business Day so specified by the Borrowers; PROVIDED, HOWEVER,
that all such reductions shall require at least one

                                      -50-
<PAGE>

Business Day's prior notice to the Administrative Agent and be permanent, and
any partial reduction of any Commitment Amount shall be in a minimum amount of
$1,000,000 and in an integral multiple of $500,000. Any optional or mandatory
reduction of the Revolving Loan Commitment Amount pursuant to the terms of this
Agreement which reduces the Revolving Loan Commitment Amount below the sum of
(i) the Swing Line Loan Commitment Amount and (ii) the Letter of Credit
Commitment Amount shall result in an automatic and corresponding reduction of
the Swing Line Loan Commitment Amount and/or Letter of Credit Commitment Amount
(as directed by the Borrowers in a notice to the Administrative Agent delivered
together with the notice of such voluntary reduction in the Revolving Loan
Commitment Amount) to an aggregate amount not in excess of the Revolving Loan
Commitment Amount, as so reduced, without any further action on the part of the
Swing Line Lender or any Issuer.

     SECTION 2.2.2. MANDATORY. Following the prepayment in full of the Term
Loans, the Revolving Loan Commitment Amount shall, without any further action,
automatically and permanently be reduced on the date the Term Loans would
otherwise have been required to be prepaid on account of CLAUSE (e), (f), (g) or
(h) of SECTION 3.1.1, in an amount equal to the amount by which the Term Loans
would otherwise be required to be prepaid if Term Loans had been outstanding.

     SECTION 2.3. BORROWING PROCEDURES. Loans (other than Swing Line Loans)
shall be made by the Lenders in accordance with SECTION 2.3.1, and Swing Line
Loans shall be made by the Swing Line Lender in accordance with SECTION 2.3.2.

     SECTION 2.3.1. BORROWING PROCEDURE. In the case of Loans other than Swing
Line Loans, by delivering a Borrowing Request to the Administrative Agent on or
before 12:00 noon on a Business Day, each Borrower may from time to time
irrevocably request, on not less than one Business Day's notice in the case of
Base Rate Loans, or three Business Days' notice in the case of LIBO Rate Loans,
and in either case not more than five Business Days' notice, that a Borrowing be
made, in the case of LIBO Rate Loans, in a minimum amount of $2,000,000 and an
integral multiple of $1,000,000, in the case of Base Rate Loans, in a minimum
amount of $1,000,000 and an integral multiple of $500,000 or, in either case, in
the unused amount of the applicable Commitment; provided, however, that all of
the initial Loans shall be made as Base Rate Loans. On the terms and subject to
the conditions of this Agreement, each Borrowing shall be comprised of the type
of Loans, and shall be made on the

                                      -51-
<PAGE>

Business Day, specified in such Borrowing Request. In the case of Loans other
than Swing Line Loans, on or before 1:00 p.m. on such Business Day each Lender
that has a Commitment to make the Loans being requested shall deposit with the
Administrative Agent same day funds in an amount equal to such Lender's
Percentage of the requested Borrowing. Such deposit will be made to an account
which the Administrative Agent shall specify from time to time by notice to the
Lenders. To the extent funds are received from the Lenders, the Administrative
Agent shall make such funds available to the applicable Borrower by wire
transfer to the accounts such Borrower shall have specified in its Borrowing
Request. No Lender's obligation to make any Loan shall be affected by any other
Lender's failure to make any Loan.

     SECTION 2.3.2. SWING LINE LOANS. (a) By telephonic notice to the Swing Line
Lender on or before 2:00 p.m. on a Business Day (followed (within one Business
Day) by the delivery of a confirming Borrowing Request), each Borrower may from
time to time prior to the Revolving Loan Commitment Termination Date irrevocably
request that Swing Line Loans be made by the Swing Line Lender in an aggregate
minimum principal amount of $100,000 and an integral multiple of $50,000. All
Swing Line Loans shall be made as Base Rate Loans and shall not be entitled to
be converted into LIBO Rate Loans. The proceeds of each Swing Line Loan shall be
made available by the Swing Line Lender to the applicable Borrower by wire
transfer to the account such Borrower shall have specified in its notice
therefor by the close of business on the Business Day telephonic notice is
received by the Swing Line Lender.

     (b) If (i) any Swing Line Loan shall be outstanding for more than four
Business Days, (ii) any Swing Line Loan is or will be outstanding on a date when
either Borrower requests that a Revolving Loan be made, or (iii) any Default
shall occur and be continuing, then each Revolving Loan Lender (other than the
Swing Line Lender) irrevocably agrees that it will, at the request of the Swing
Line Lender, make a Revolving Loan (which shall initially be funded as a Base
Rate Loan) in an amount equal to such Lender's Revolving Loan Percentage of the
aggregate principal amount of all such Swing Line Loans then outstanding (such
outstanding Swing Line Loans hereinafter referred to as the "REFUNDED SWING LINE
LOANS"). On or before 11:00 a.m. on the first Business Day following receipt by
each Revolving Loan Lender of a request to make Revolving Loans as provided in
the preceding sentence, each Revolving Loan Lender shall deposit in an account
specified by the Swing Line Lender the amount

                                      -52-
<PAGE>

so requested in same day funds and such funds shall be applied by the Swing Line
Lender to repay the Refunded Swing Line Loans. At the time the Revolving Loan
Lenders make the above referenced Revolving Loans the Swing Line Lender shall be
deemed to have made, in consideration of the making of the Refunded Swing Line
Loans, Revolving Loans in an amount equal to the Swing Line Lender's RL
Percentage of the aggregate principal amount of the Refunded Swing Line Loans.
Upon the making (or deemed making, in the case of the Swing Line Lender) of any
Revolving Loans pursuant to this clause, the amount so funded shall become
outstanding under such Revolving Loan Lender's Revolving Note, if any, and shall
be recorded as an outstanding Revolving Loan of such Lender in the Register and
shall no longer be owed under the Swing Line Note, if any, and the Register
shall be revised to reflect that such Swing Line Loan was repaid. All interest
payable with respect to any Revolving Loans made (or deemed made, in the case of
the Swing Line Lender) pursuant to this clause shall be appropriately adjusted
to reflect the period of time during which the Swing Line Lender had outstanding
Swing Line Loans in respect of which such Revolving Loans were made. Each
Revolving Loan Lender's obligation to make the Revolving Loans referred to in
this clause shall be absolute and unconditional and shall not be affected by any
circumstance, including (i) any set-off, counterclaim, recoupment, defense or
other right which such Lender may have against the Swing Line Lender, any
Obligor or any Person for any reason whatsoever; (ii) the occurrence or
continuance of any Default; (iii) any adverse change in the condition (financial
or otherwise) of any Obligor; (iv) the acceleration or maturity of any monetary
Obligations or the termination of any Commitment after the making of any Swing
Line Loan; (v) any breach of any Loan Document by any Person; or (vi) any other
circumstance, happening or event whatsoever, whether or not similar to any of
the foregoing.

     SECTION 2.4. CONTINUATION AND CONVERSION ELECTIONS. By delivering a
Continuation/Conversion Notice to the Administrative Agent on or before 10:00
a.m. on a Business Day, each Borrower may from time to time irrevocably elect,
on not less than one Business Day's notice in the case of Base Rate Loans, or
three Business Days' notice in the case of LIBO Rate Loans, and in either case
not more than five Business Days' notice, that all, or any portion in an
aggregate minimum amount of $2,000,000 and an integral multiple of $1,000,000
be, in the case of Base Rate Loans, converted into LIBO Rate Loans or be, in the
case of LIBO Rate Loans, converted into Base Rate Loans or continued as LIBO
Rate Loans (in the absence of delivery of a Continuation/Conversion Notice with
respect to any LIBO Rate

                                      -53-
<PAGE>

Loan at least three Business Days (but not more than five Business Days) before
the last day of the then current Interest Period with respect thereto, such LIBO
Rate Loan shall, on such last day, automatically convert to a Base Rate Loan);
PROVIDED, HOWEVER, that (x) each such conversion or continuation shall be pro
rated among the applicable outstanding Loans of all Lenders that have made such
Loans, and (y) no portion of the outstanding principal amount of any Loans may
be continued as, or be converted into, LIBO Rate Loans when any Default has
occurred and is continuing.

     SECTION 2.5. FUNDING. Each Lender may, if it so elects, fulfill its
obligation to make, continue or convert LIBO Rate Loans hereunder by causing one
of its foreign branches or Affiliates (or an international banking facility
created by such Lender) to make or maintain such LIBO Rate Loan; PROVIDED,
HOWEVER, that such LIBO Rate Loan shall nonetheless be deemed to have been made
and to be held by such Lender, and the obligation of the applicable Borrower to
repay such LIBO Rate Loan shall nevertheless be to such Lender for the account
of such foreign branch, Affiliate or international banking facility. In
addition, each Borrower hereby consents and agrees that, for purposes of any
determination to be made for purposes of SECTIONS 4.1, 4.2, 4.3 or 4.4, it shall
be conclusively assumed that each Lender elected to fund all LIBO Rate Loans by
purchasing Dollar deposits in its LIBOR Office's interbank eurodollar market.

     SECTION 2.6. ISSUANCE PROCEDURES. By delivering to the Administrative Agent
an Issuance Request on or before 10:00 a.m. on a Business Day, each Borrower may
from time to time irrevocably request on not less than three nor more than ten
Business Days' notice, in the case of an initial issuance of a Letter of Credit
and not less than three Business Days' prior notice, in the case of a request
for the extension of the Stated Expiry Date of a standby Letter of Credit (in
each case, unless a shorter notice period is agreed to by the applicable Issuer,
in its sole discretion), that such Issuer issue, or extend (in the case of a
standby Letter of Credit) the Stated Expiry Date of, a Letter of Credit on
behalf of such Borrower (whether issued for the account of or on behalf of such
Borrower or any Subsidiary Guarantor) in such form as may be requested by such
Borrower and approved by such Issuer, solely for the purposes described in
SECTION 7.1.7. Notwithstanding anything to the contrary contained herein or in
any separate application for any Letter of Credit, such Borrower hereby
acknowledges and agrees that it shall be jointly and severally obligated to
reimburse the applicable Issuer upon each Disbursement paid

                                      -54-
<PAGE>

under a Letter of Credit, and it shall be deemed to be the obligor for purposes
of each such Letter of Credit issued hereunder (whether the account party on
such Letter of Credit is such Borrower, the other Borrower or a Subsidiary
Guarantor). Each Letter of Credit shall by its terms be stated to expire on a
date (its "STATED EXPIRY DATE") no later than the earlier to occur of (i) the
Revolving Loan Commitment Termination Date or (ii) (unless otherwise agreed to
by an Issuer, in its sole discretion) one year from the date of its issuance or
extension. Each Issuer will make available to the beneficiary thereof the
original of the Letter of Credit which it issues. It is understood and agreed
that Letters of Credit issued hereunder need not be issued in any minimum
amount.

     SECTION 2.6.1. OTHER LENDERS' PARTICIPATION. Upon the issuance of each
Letter of Credit, and without further action, each Revolving Loan Lender (other
than such Issuer) shall be deemed to have irrevocably purchased, to the extent
of its Percentage to make Revolving Loans, a participation interest in such
Letter of Credit (including the Contingent Liability and any Reimbursement
Obligation with respect thereto), and such Revolving Loan Lender shall, to the
extent of its Percentage to make Revolving Loans, be responsible for reimbursing
within one Business Day the Issuer for Reimbursement Obligations which have not
been reimbursed by the applicable Borrower in accordance with SECTION 2.6.3. In
addition, such Revolving Loan Lender shall, to the extent of its Percentage to
make Revolving Loans, be entitled to receive a ratable portion of the Letter of
Credit fees payable pursuant to SECTION 3.3.3 with respect to each Letter of
Credit (other than the issuance fees payable to an Issuer of such Letter of
Credit pursuant to the last sentence of SECTION 3.3.3) and of interest payable
pursuant to SECTION 3.2 with respect to any Reimbursement Obligation. To the
extent that any Revolving Loan Lender has reimbursed any Issuer for a
Disbursement, such Lender shall be entitled to receive its ratable portion of
any amounts subsequently received (from such Borrower or otherwise) in respect
of such Disbursement.

     SECTION 2.6.2. DISBURSEMENTS; CONVERSION TO REVOLVING LOANS. An Issuer will
notify the applicable Borrower and the Administrative Agent promptly of the
presentment for payment of any Letter of Credit issued by such Issuer, together
with notice of the date (the "DISBURSEMENT DATE") such payment shall be made
(each such payment, a "DISBURSEMENT"). Subject to the terms and provisions of
such Letter of Credit, the applicable Issuer shall make such payment to the
beneficiary (or its designee) of such Letter

                                      -55-
<PAGE>

of Credit. Prior to 11:00 a.m. on the first Business Day following the later of
the receipt of such notice by such Borrower and the Administrative Agent and the
Disbursement Date (the "DISBURSEMENT DUE DATE"), the applicable Borrower will
reimburse the Administrative Agent, for the account of the applicable Issuer,
for all amounts which such Issuer has disbursed under such Letter of Credit,
together with interest thereon at a rate per annum equal to the rate per annum
then in effect for Base Rate Loans (with the then Applicable Margin for
Revolving Loans accruing on such amount) pursuant to SECTION 3.2 for the period
from the Disbursement Date through the date of such reimbursement; PROVIDED,
HOWEVER, that, if no Specified Default shall have then occurred and be
continuing, unless the applicable Borrower has notified the Administrative Agent
no later than one Business Day prior to the Disbursement Due Date that it will
reimburse such Issuer for the applicable Disbursement, then the making of such
Disbursement shall be deemed to be a Borrowing of Revolving Loans constituting
Base Rate Loans and following the giving of notice thereof by the Administrative
Agent to the Lenders, each Lender with a Revolving Loan Commitment (other than
the Issuer) will deliver to the Issuer on the Disbursement Due Date immediately
available funds in an amount equal to such Lender's Percentage of such
Borrowing. Without limiting in any way the foregoing and notwithstanding
anything to the contrary contained herein or in any separate application for any
Letter of Credit, each Borrower hereby acknowledges and agrees that it shall be
obligated to reimburse the applicable Issuer upon each Disbursement of a Letter
of Credit, and it shall be deemed to be the obligor for purposes of each such
Letter of Credit issued hereunder (whether the account party on such Letter of
Credit is such Borrower, the other Borrower or a Subsidiary of either such
Borrower).

     SECTION 2.6.3. REIMBURSEMENT. The obligation (a "REIMBURSEMENT OBLIGATION")
of each Borrower under SECTION 2.6.2 to reimburse an Issuer with respect to each
Disbursement (including interest thereon), and, upon the failure of such
Borrower to reimburse an Issuer, each Revolving Loan Lender's obligation under
SECTION 2.6.1 to reimburse an Issuer, shall be absolute and unconditional under
any and all circumstances and irrespective of any setoff, counterclaim or
defense to payment which such Borrower or such Revolving Loan Lender, as the
case may be, may have or have had against such Issuer or any Lender, including
any defense based upon the failure of any Disbursement to conform to the terms
of the applicable Letter of Credit (if, in such Issuer's good faith opinion,

                                      -56-
<PAGE>

such Disbursement is determined to be appropriate) or any nonapplication or
misapplication by the beneficiary of the proceeds of such Letter of Credit;
PROVIDED, HOWEVER, that after paying in full its Reimbursement Obligation
hereunder, nothing herein shall adversely affect the right of such Borrower or
such Lender, as the case may be, to commence any proceeding against an Issuer
for any wrongful Disbursement made by such Issuer under a Letter of Credit as a
result of acts or omissions constituting gross negligence or wilful misconduct
on the part of such Issuer.

     SECTION 2.6.4. DEEMED DISBURSEMENTS. Upon the occurrence and during the
continuation of any Default under SECTION 8.1.9 or upon notification by the
Administrative Agent (acting at the direction of the Required Lenders) to each
Borrower of its obligations under this Section, following the occurrence and
during the continuation of any other Event of Default,

          (a) the aggregate Stated Amount of all Letters of Credit shall,
     without demand upon or notice to such Borrower or any other Person, be
     deemed to have been paid or disbursed by the Issuers of such Letters of
     Credit (notwithstanding that such amount may not in fact have been paid or
     disbursed); and

          (b) such Borrower shall be immediately obligated to reimburse the
     Issuers for the amount deemed to have been so paid or disbursed by such
     Issuers.

Amounts payable by each Borrower pursuant to this Section shall be deposited in
immediately available funds with the Administrative Agent and held as collateral
security for the Reimbursement Obligations. When all Defaults giving rise to the
deemed disbursements under this Section have been cured or waived the
Administrative Agent shall return to such Borrower all amounts then on deposit
with the Administrative Agent pursuant to this Section which have not been
applied to the satisfaction of the Reimbursement Obligations.

     SECTION 2.6.5. NATURE OF REIMBURSEMENT OBLIGATIONS. Each Borrower, each
other Obligor, the Seller and, to the extent set forth in SECTION 2.6.1, each
Revolving Loan Lender shall assume all risks of the acts, omissions or misuse of
any Letter of Credit by the beneficiary thereof. No Issuer (except to the extent
of its own gross negligence or wilful misconduct) shall be responsible for:

          (a) the form, validity, sufficiency, accuracy, genuineness or legal
     effect of any Letter of Credit or

                                      -57-
<PAGE>

     any document submitted by any party in connection with the application for
     and issuance of a Letter of Credit, even if it should in fact prove to be
     in any or all respects invalid, insufficient, inaccurate, fraudulent or
     forged;

          (b) the form, validity, sufficiency, accuracy, genuineness or legal
     effect of any instrument transferring or assigning or purporting to
     transfer or assign a Letter of Credit or the rights or benefits thereunder
     or the proceeds thereof in whole or in part, which may prove to be invalid
     or ineffective for any reason;

          (c) failure of the beneficiary to comply fully with conditions
     required in order to demand payment under a Letter of Credit;

          (d) errors, omissions, interruptions or delays in transmission or
     delivery of any messages, by mail, telecopier, cable, telegraph, telex or
     otherwise; or

          (e) any loss or delay in the transmission or otherwise of any document
     or draft required in order to make a Disbursement under a Letter of Credit.

None of the foregoing shall affect, impair or prevent the vesting of any of the
rights or powers granted to any Issuer or any Revolving Loan Lender hereunder.
In furtherance and not in limitation or derogation of any of the foregoing, any
action taken or omitted to be taken by an Issuer in good faith (and not
constituting gross negligence or willful misconduct) shall be binding upon each
Obligor, the Seller and each such Secured Party, and shall not put such Issuer
under any resulting liability to any Obligor, the Seller or any Secured Party,
as the case may be. Notwithstanding the foregoing, the Lenders (other than the
applicable Issuer in its capacity as such) shall not be liable for any
obligation resulting from the gross negligence or willful misconduct (as
determined by a court of competent jurisdiction) of the applicable Issuer with
respect to any Letter of Credit.

     SECTION 2.7. REGISTER; NOTES. (a) Each Lender may maintain in accordance
with its usual practice an account or accounts evidencing the Indebtedness of
each Borrower to such Lender resulting from each Loan made by such Lender,
including the amounts of principal and interest payable and paid to such Lender
from time to time hereunder. In the case of a Lender that does not request,
pursuant to CLAUSE (c) below, execution and delivery of a Note

                                      -58-
<PAGE>

evidencing the Loans made by such Lender to the Borrowers, such account or
accounts shall, to the extent not inconsistent with the notations made by the
Administrative Agent in the Register, be conclusive and binding on each Borrower
absent manifest error; PROVIDED, HOWEVER, that the failure of any Lender to
maintain such account or accounts shall not limit or otherwise affect any
Obligations of either Borrower, any other Obligor or the Seller.

     (b) Each Borrower hereby designates the Administrative Agent to serve as
such Borrower's agent, solely for the purpose of this CLAUSE (b), to maintain a
register (the "REGISTER") in which the Administrative Agent will record each
Lender's Commitments, the Loans made by each Lender and each repayment in
respect of the principal amount of the Loans of each Lender and annexed to which
the Administrative Agent shall retain a copy of each Lender Assignment Agreement
delivered to the Administrative Agent pursuant to SECTION 11.11.1. Failure to
make any recordation, or any error in such recordation, shall not affect either
Borrower's obligation in respect of such Loans. The entries in the Register
shall be conclusive, in the absence of manifest error, and each Borrower, each
Agent and each Lender shall treat each Person in whose name a Loan (and as
provided in CLAUSE (c) below the Note evidencing such Loan, if any) is
registered as the owner thereof for all purposes of this Agreement,
notwithstanding notice or any provision herein to the contrary. A Lender's
Commitment and the Loans made pursuant thereto may be assigned or otherwise
transferred in whole or in part only by registration of such assignment or
transfer in the Register. Any assignment or transfer of a Lender's Commitment
and/or the Loans made pursuant thereto shall be registered in the Register only
upon delivery to the Administrative Agent of a Lender Assignment Agreement duly
executed by the assignor and assignee thereof. No assignment or transfer of a
Lender's Commitment or the Loans made pursuant thereto shall be effective unless
such assignment or transfer shall have been recorded in the Register by the
Administrative Agent as provided in this Section. The Administrative Agent
agrees to record in the Register any such assignment or transfer of a Lender's
Commitment or the Loans made pursuant thereto promptly upon its receipt of a
Lender Assignment Agreement duly executed by the assignor and assignee thereof
in accordance with SECTION 11.11.1.

     (c) Each Borrower agrees that, upon the request to the Administrative Agent
by any Lender, such Borrower will execute and deliver to such Lender, as
applicable, a Revolving Note, a Term A Note, a Term B Note and/or a Swing

                                      -59-
<PAGE>

Line Note evidencing the Loans made by such Lender. Each Borrower hereby
irrevocably authorizes each Lender to make (or cause to be made) appropriate
notations on the grid attached to such Lender's Notes (or on any continuation of
such grid), which notations, if made, shall evidence, INTER ALIA, the date of,
the outstanding principal amount of, and the interest rate and Interest Period
applicable to the Loans evidenced thereby. Such notations shall, to the extent
not inconsistent with the notations made by the Administrative Agent in the
Register, be conclusive and binding on each Borrower absent manifest error;
PROVIDED, HOWEVER, that the failure of any Lender to make any such notations or
any error in any such notations shall not limit or otherwise affect any
Obligations of either Borrower, any other Obligor or the Seller. The Loans
evidenced by any such Note and interest thereon shall at all times (including
after assignment pursuant to SECTION 11.11.1) be represented by one or more
Notes payable to the order of the payee named therein and its registered
assigns. A Note and the obligation evidenced thereby may be assigned or
otherwise transferred in whole or in part only by registration of such
assignment or transfer of such Note and the obligation evidenced thereby in the
Register (and each Note shall expressly so provide). Any assignment or transfer
of all or part of an obligation evidenced by a Note shall be registered in the
Register only upon surrender for registration of assignment or transfer of the
Note evidencing such obligation, accompanied by a Lender Assignment Agreement
duly executed by the assignor thereof, and thereupon, if requested by the
assignee, one or more new Notes shall be issued to the designated assignee and
the old Note shall be returned by the Administrative Agent to the Borrowers
marked "exchanged". No assignment of a Note and the obligation evidenced thereby
shall be effective unless it shall have been recorded in the Register by the
Administrative Agent as provided in this Section.

                                   ARTICLE III
                   REPAYMENTS, PREPAYMENTS, INTEREST AND FEES

     SECTION 3.1. REPAYMENTS AND PREPAYMENTS; APPLICATION. Each Borrower jointly
and severally agrees that the Loans shall be repaid and prepaid pursuant to the
following terms.

     SECTION 3.1.1. REPAYMENTS AND PREPAYMENTS. The Borrowers shall jointly and
severally repay in full the unpaid principal amount of each Loan upon the
applicable Stated Maturity Date therefor. Prior thereto, payments and

                                      -60-
<PAGE>

prepayments of Loans shall or may be made jointly and severally by the
Borrowers as set forth below.

               (a) From time to time on any Business Day, each Borrower may make
          a voluntary prepayment, in whole or in part, of the outstanding
          principal amount of any

                    (i) Loans (other than Swing Line Loans); PROVIDED, HOWEVER,
               that (A) any such prepayment of the Term Loans shall be made PRO
               RATA among Term A Loans and Term B Loans, and PRO RATA among Term
               A Loans and Term B Loans of the same type and, if applicable,
               having the same Interest Period of all Lenders that have made
               such Term A Loans or Term B Loans (to be applied as set forth in
               Section 3.1.2) and any such prepayment of Revolving Loans shall
               be made PRO RATA among the Revolving Loans of the same type and,
               if applicable, having the same Interest Period of all Lenders
               that have made such Revolving Loans; (B) all such voluntary
               prepayments shall require at least one but no more than five
               Business Days' prior written notice to the Administrative Agent;
               and (C) all such voluntary partial prepayments shall be, in the
               case of LIBO Rate Loans, in an aggregate minimum amount of
               $1,000,000 and an integral multiple of $1,000,000 and, in the
               case of Base Rate Loans, in an aggregate minimum amount of
               $500,000 and an integral multiple of $100,000; and

                    (ii) Swing Line Loans; PROVIDED, that (A) all such voluntary
               prepayments shall require prior telephonic notice to the Swing
               Line Lender on or before 1:00 p.m. on the day of such prepayment
               (such notice to be confirmed in writing within 24 hours
               thereafter); and (B) all such voluntary partial prepayments shall
               be in an aggregate minimum amount of $100,000 and an integral
               multiple of $50,000.

               (b) On each date when the sum of (i) the aggregate outstanding
          principal amount of all Revolving Loans and Swing Line Loans and (ii)
          the aggregate amount of all Letter of Credit Outstandings exceeds the
          Revolving Loan Commitment Amount (as it may be reduced from time to
          time pursuant to this Agreement), the Borrowers shall jointly and
          severally make a mandatory prepayment of Revolving Loans or Swing Line
          Loans (or both) and, if necessary, deposit cash collateral with

                                      -61-
<PAGE>

          the Administrative Agent or its designee pursuant to an agreement
          satisfactory to the Administrative Agent to collateralize Letter of
          Credit Outstandings, in an aggregate amount equal to such excess.

               (c) On the Stated Maturity Date for Term A Loans and on each
          Quarterly Payment Date occurring during any period set forth below,
          the Borrowers shall jointly and severally make a scheduled repayment
          of the aggregate outstanding principal amount, if any, of all Term A
          Loans in an amount equal to the amount set forth below opposite such
          Stated Maturity Date or such Quarterly Payment Date, as applicable:

<TABLE>
<CAPTION>
                                                         Amount of Required
                   Period                                Principal Repayment
                   ------                                -------------------
<S>                                                      <C>
            Effective Date through (and
              including) 09/30/00                        $387,500.00

            10/01/00 through (and
              including) 09/30/01                        $775,000.00

            10/01/01 through (and
              including) 09/30/02                        $1,162,500.00

            10/01/02 through (and
              including) 09/30/03                        $1,550,000.00

            10/01/03 through (and
              including) 09/30/04                        $1,937,500.00

            10/01/04 through (and
              including) 09/30/05                        $1,550,000.00

            Stated Maturity Date for                     $1,550,000.00 or the
              Term A Loans                               then outstanding
                                                         principal amount of all
                                                         Term A Loans, if
                                                         different.
</TABLE>

               (d) On the Stated Maturity Date for Term B Loans and on each
          Quarterly Payment Date occurring during any period set forth below,
          the Borrowers shall jointly and severally make a scheduled repayment
          of the aggregate outstanding principal amount, if any, of all Term B
          Loans in an amount equal to the amount set forth below opposite such
          Stated Maturity Date or such Quarterly Payment Date, as applicable:

                                      -62-
<PAGE>

<TABLE>
<CAPTION>
                                                         Amount of Required
                   Period                                Principal Repayment
                   ------                                -------------------
<S>                                                      <C>
            Effective Date through (and
              including) 09/30/00                        $250,000.00

            10/01/00 through (and
              including) 09/30/01                        $250,000.00

            10/01/01 through (and
              including) 09/30/02                        $250,000.00

            10/01/02 through (and
              including) 09/30/03                        $250,000.00

            10/01/03 through (and
              including) 09/30/04                        $250,000.00

            10/01/04 through (and
              including) 09/30/05                        $250,000.00

            10/01/05 through (and
              including) 09/30/06                        $18,800.000.00

            Stated Maturity Date for                     $18,800,000.00 or the
              Term B Loans                               then outstanding
                                                         principal amount of
                                                         all Term B Loans, if
                                                         different.
</TABLE>

               (e) The Borrowers shall, following the receipt by Holdings,
          either Borrower or any of their respective Subsidiaries of any
          Casualty Proceeds in excess of $250,000 (individually or in the
          aggregate (when taken together with all other Casualty Proceeds and
          all Net Disposition Proceeds)) over the course of a Fiscal Year,
          deliver to the Agents a calculation of the amount of such Casualty
          Proceeds and jointly and severally make a mandatory prepayment of the
          Term Loans in an amount equal to 100% of such Casualty Proceeds within
          30 days of the receipt thereof to be applied as set forth in SECTION
          3.1.2; PROVIDED, HOWEVER, that no mandatory prepayment on account of
          Casualty Proceeds shall be required under this clause if the Borrowers
          inform the Agents in writing no later than 30 days following the
          occurrence of the Casualty Event resulting in such Casualty Proceeds
          of their or such Subsidiary's good faith intention to apply such
          Casualty Proceeds to (x) the rebuilding or replacement of the damaged,
          destroyed or condemned assets or property or (y) the acquisition of
          long-term assets that are necessary or useful in the operation of the
          Borrowers' and their respective Subsidiaries' business

                                      -63-

<PAGE>

          activities in accordance with SECTION 7.2.1, and the Borrowers or such
          Subsidiary in fact uses such Casualty Proceeds to rebuild or replace
          such assets or property or acquire such long-term assets within 360
          days following the receipt of such Casualty Proceeds, with the amount
          of such Casualty Proceeds unused after such 360-day period being
          applied to the Term Loans pursuant to SECTION 3.1.2; PROVIDED,
          FURTHER, HOWEVER, that (i) at any time when any Specified Default
          shall have occurred and be continuing, all Casualty Proceeds (together
          with Net Disposition Proceeds not applied as provided in CLAUSE (f)
          below) shall be deposited in an account maintained with the
          Administrative Agent to pay for such rebuilding, replacement or
          acquisition whenever no Specified Default is then continuing or except
          as otherwise agreed to by the Agents for disbursement at the request
          of the Borrowers or such Subsidiary, as the case may be, or (ii) if
          all such Casualty Proceeds (together with Net Disposition Proceeds not
          applied as provided in CLAUSE (f) below) aggregating in excess of
          $250,000 have not yet been applied as described in the notice required
          above (or in accordance with CLAUSE (f) below), all such Casualty
          Proceeds and Net Disposition Proceeds shall be deposited in an account
          maintained with the Administrative Agent for disbursement at the
          request of the Borrowers or such Subsidiary, as the case may be, to be
          used for the purpose(s) set forth in such written notice(s).

               (f) The Borrowers shall, following the receipt by Holdings,
          either Borrower or any of their respective Subsidiaries of any Net
          Disposition Proceeds in excess of $250,000 (individually or in the
          aggregate (when taken together with all other Net Disposition Proceeds
          and all Casualty Proceeds)) over the course of a Fiscal Year, deliver
          to the Agents a calculation of the amount of such Net Disposition
          Proceeds and jointly and severally make a mandatory prepayment of the
          Term Loans in an amount equal to 100% of such Net Disposition Proceeds
          within one Business Day of the receipt thereof to be applied as set
          forth in SECTION 3.1.2; PROVIDED, HOWEVER, that no mandatory
          prepayment on account of Net Disposition Proceeds shall be required
          under this clause if the Borrowers inform the Agents in writing no
          later than one Business Day following the receipt of such Net
          Disposition Proceeds of their or such Subsidiary's good faith
          intention to apply such Net Disposition Proceeds to (x) the
          replacement of the assets or property that was the subject of the

                                      -64-
<PAGE>

          Disposition that resulted in such Net Disposition Proceeds or (y) the
          acquisition of long-term assets that are necessary or useful in the
          operation of the Borrowers' and their respective Subsidiaries'
          business activities in accordance with SECTION 7.2.1, and the
          Borrowers or such Subsidiary in fact uses such Net Disposition
          Proceeds to replace such assets or property or acquire such long-term
          assets within 360 days following the receipt of such Net Disposition
          Proceeds, with the amount of such Net Disposition Proceeds unused
          after such 360-day period being applied to the Term Loans pursuant to
          SECTION 3.1.2; PROVIDED, FURTHER, HOWEVER, that (i) at any time when
          any Specified Default shall have occurred and be continuing, all Net
          Disposition Proceeds (together with Casualty Proceeds not applied as
          provided in CLAUSE (e) above) shall be deposited in an account
          maintained with the Administrative Agent to pay for such replacement
          or acquisition whenever no Specified Default is then continuing or
          except as otherwise agreed to by the Agents for disbursement at the
          request of the Borrowers or such Subsidiary, as the case may be, or
          (ii) if all such Net Disposition Proceeds (together with Casualty
          Proceeds not applied as provided in CLAUSE (e) above) aggregating in
          excess of $250,000 have not been applied as described in the notice
          required above (or in accordance with CLAUSE (e) above), all such Net
          Disposition Proceeds and Casualty Proceeds shall be deposited in an
          account maintained with the Administrative Agent for disbursement at
          the request of the Borrowers or such Subsidiary, as the case may be,
          to be used for the purpose(s) set forth in such written notice(s).

               (g) The Borrowers shall, no later than five Business Days
          following the delivery by Holdings of its annual audited financial
          reports required pursuant to CLAUSE (c) of SECTION 7.1.1 (beginning
          with the financial reports delivered in respect of the 2000 Fiscal
          Year), deliver to the Agents a calculation of the Excess Cash Flow for
          the Fiscal Year last ended and jointly and severally make a mandatory
          prepayment of the Term Loans in an amount equal to 50% of the Excess
          Cash Flow (if any) for such Fiscal Year, to be applied as set forth in
          SECTION 3.1.2.

               (h) Concurrently with the receipt by Holdings, either Borrower or
          any of their respective Subsidiaries of any Net Debt Proceeds or Net
          Equity Proceeds, the Borrowers shall deliver to the Agents a
          calculation of

                                      -65-
<PAGE>

          the amount of such Net Debt Proceeds or Net Equity Proceeds, as the
          case may be, and jointly and severally make a mandatory prepayment of
          the Term Loans in an amount equal to 100% of such Net Debt Proceeds or
          50% of such Net Equity Proceeds, as the case may be, to be applied as
          set forth in SECTION 3.1.2.

               (i) Immediately upon any acceleration of the Stated Maturity Date
          of any Loans pursuant to SECTION 8.2 or SECTION 8.3, the Borrowers
          shall jointly and severally repay all the Loans, unless, pursuant to
          SECTION 8.3, only a portion of all the Loans is so accelerated (in
          which case the portion so accelerated shall be so repaid).

Each prepayment of any Loans made pursuant to this Section shall be without
premium or penalty, except as may be required by SECTION 3.1.3 and SECTION 4.4.

     SECTION 3.1.2. APPLICATION. Amounts prepaid pursuant to SECTION 3.1.1 shall
be applied as set forth in this Section.

               (a) Subject to CLAUSE (b), each prepayment or repayment of the
          principal of the Loans shall be applied, to the extent of such
          prepayment or repayment, FIRST, to the principal amount thereof being
          maintained as Base Rate Loans, and SECOND, subject to the terms of
          SECTION 4.4, to the principal amount thereof being maintained as LIBO
          Rate Loans.

               (b) Each prepayment of Term Loans made pursuant to CLAUSES (a),
          (e), (f), (g) and (h) of SECTION 3.1.1 shall be applied PRO RATA to a
          mandatory prepayment of the outstanding principal amount of all Term A
          Loans and Term B Loans (with the amount of such prepayment of the Term
          A Loans and the Term B Loans being applied to the remaining Term A
          Loan or Term B Loan, as the case may be, amortization payments, PRO
          RATA in accordance with the amount of each such remaining Term Loan
          amortization payment); PROVIDED, HOWEVER, that in the case of any such
          prepayment of Term B Loans made pursuant to CLAUSE (e), (f), (g) and
          (h) of SECTION 3.1.1, any Lender that has Term B Loans may elect not
          to have such Loans prepaid by delivering a notice to the Agents at
          least one Business Day prior to the date that such prepayment is to be
          made in which notice such Lender shall decline to have such Loans
          prepaid with the amounts set forth above, in which case the amounts
          that would have been applied to a

                                      -66-
<PAGE>

          prepayment of such Lender's Term B Loans shall instead be applied to a
          prepayment of the principal amount (if any) of all outstanding Term A
          Loans until all outstanding Term A Loans have been prepaid in full,
          then applied to a prepayment of such Lender's Term B Loans.

     SECTION 3.1.3. PREPAYMENT OF TERM B LOANS. In the event that either
Borrower makes a voluntary prepayment pursuant to CLAUSE (a) of SECTION 3.1.1 or
is required to make a mandatory prepayment of the Term B Loans pursuant to
CLAUSES (f) or (h) of SECTION 3.1.1 during any period set forth below, such
Borrower shall pay the amount of such prepayment plus an amount (the "PREPAYMENT
PREMIUM") equal to the percentage of the principal amount so voluntarily prepaid
or required to be prepaid during such period as follows:

                                    Closing Date through            2.00%
                                    and including 11/17/2000

                                    11/18/2000 through          1.00%
                                    and including 11/17/2001

                                    11/18/2001                  0%
                                    and thereafter

PROVIDED, that if any Lender declines to have its Term B Loans prepaid pursuant
to the proviso to CLAUSE (b) of SECTION 3.1.2, the amount of the prepayment to
be applied to the Term A Loans and/or Revolving Loans shall not include the
Prepayment Premium.

     SECTION 3.2. INTEREST PROVISIONS. Interest on the outstanding principal
amount of Loans shall accrue and be payable by the Borrowers jointly and
severally in accordance with the terms set forth below.

     SECTION 3.2.1. RATES. Subject to SECTION 2.3.2, pursuant to an
appropriately delivered Borrowing Request or Continuation/Conversion Notice,
each Borrower may elect that Loans comprising a Borrowing accrue interest at a
rate per annum:

          (a) on that portion maintained from time to time as a Base Rate Loan,
     equal to the sum of the Alternate Base Rate from time to time in effect
     plus the Applicable Margin; PROVIDED that all Swing Line Loans shall always
     accrue interest at the then effective

                                      -67-
<PAGE>

     Applicable Margin for Revolving Loans maintained as Base Rate Loans; and

          (b) on that portion maintained as a LIBO Rate Loan, during each
     Interest Period applicable thereto, equal to the sum of the LIBO Rate
     (Reserve Adjusted) for such Interest Period plus the Applicable Margin.

All LIBO Rate Loans shall bear interest from and including the first day of the
applicable Interest Period to (but not including) the last day of such Interest
Period at the interest rate determined as applicable to such LIBO Rate Loan.

     SECTION 3.2.2. POST-DEFAULT RATES. Upon the occurrence and during the
continuance of an Event of Default, the Borrowers shall jointly and severally
pay, but only to the extent permitted by law, interest (after as well as before
judgment) in an amount equal to (a) in the case of any principal of LIBO Rate
Loans or accrued interest thereon, the rate that would otherwise be applicable
to such LIBO Rate Loans pursuant to SECTION 3.2.1 plus 2%, (b) in the case of
any principal of Base Rate Loans or accrued interest thereon, the rate that
would otherwise be applicable to such Base Rate Loans pursuant to SECTION 3.2.1
plus 2% and (c) in the case of any accrued commitment fees, letter of credit
fees or other monetary Obligations, the rate that would otherwise be applicable
to Revolving Loans that are maintained as Base Rate Loans pursuant to SECTION
3.2.1 plus 2%.

     SECTION 3.2.3. PAYMENT DATES. Interest accrued on each Loan shall be
payable, without duplication:

               (a) on the Stated Maturity Date therefor;

               (b) on the date of any payment or prepayment, in whole or in
          part, of principal outstanding on such Loan on the principal amount so
          paid or prepaid;

               (c) with respect to Base Rate Loans, on each Quarterly Payment
          Date occurring after the Closing Date;

               (d) with respect to LIBO Rate Loans, on the last day of each
          applicable Interest Period (and, if such Interest Period shall exceed
          three months, on the date occurring on each three-month interval
          occurring after the first day of such Interest Period);

                                      -68-
<PAGE>

               (e) with respect to any Base Rate Loans converted into LIBO Rate
          Loans on a day when interest would not otherwise have been payable
          pursuant to CLAUSE (c), on the date of such conversion; and

               (f) on that portion of any Loans the Stated Maturity Date of
          which is accelerated pursuant to SECTION 8.2 or SECTION 8.3,
          immediately upon such acceleration.

Interest accrued on Loans or other monetary Obligations after the date such
amount is due and payable (whether on the Stated Maturity Date, upon
acceleration or otherwise) shall be payable upon demand.

     SECTION 3.3. FEES. The Borrowers agree to jointly and severally pay the
fees set forth below. All such fees shall be non-refundable.

     SECTION 3.3.1. COMMITMENT FEE. The Borrowers agree to jointly and severally
pay to the Administrative Agent for the account of each Lender, for the period
(including any portion thereof when any of its Commitments are suspended by
reason of either Borrower's inability to satisfy any condition of ARTICLE V)
commencing on the Effective Date and continuing through the applicable
Commitment Termination Date, a commitment fee in an amount equal to the
Applicable Commitment Fee, in each case on such Lender's Percentage of the sum
of the average daily unused portion of the applicable Commitment Amount (net of
Letter of Credit Outstandings, in the case of the Revolving Loan Commitment
Amount). All commitment fees payable pursuant to this Section shall be
calculated on a year comprised of 360 days and payable by the Borrowers jointly
and severally in arrears on the Effective Date and thereafter on each Quarterly
Payment Date, commencing with the first Quarterly Payment Date following the
Effective Date, and on the Revolving Loan Commitment Termination Date. The
making of Swing Line Loans shall not constitute usage of the Revolving Loan
Commitment with respect to the calculation of commitment fees to be paid by the
Borrowers to the Lenders. Any term or provision hereof to the contrary
notwithstanding, commitment fees payable for any period prior to the Closing
Date shall be payable in accordance with the Fee Letter.

     SECTION 3.3.2. AGENTS' FEES. (a) The Borrowers agree to jointly and
severally pay to the Administrative Agent, for its own account, the fees in the
amounts and on the dates set forth in the Fee Letter.

                                      -69-
<PAGE>

     (b) The Borrowers agree to jointly and severally pay to the Syndication
Agent, for its own account, the fees in the amounts and on the dates set forth
in the Fee Letter.

     SECTION 3.3.3. LETTER OF CREDIT FEE. The Borrowers agree to jointly and
severally pay to the Administrative Agent, for the PRO RATA account of the
applicable Issuer and each Revolving Loan Lender, a Letter of Credit fee in an
amount equal to the then effective Applicable Margin for Revolving Loans
maintained as LIBO Rate Loans, multiplied by the Stated Amount of each such
Letter of Credit, such fees being payable quarterly in arrears on each Quarterly
Payment Date following the date of issuance of each Letter of Credit and on the
Revolving Loan Commitment Termination Date. The Borrowers further agree to
jointly and severally pay in advance to the applicable Issuer on the date of
each issuance and extension of each Letter of Credit issued or extended by such
Issuer and quarterly thereafter on each Quarterly Payment Date following the
date of such issuance or extension and on the Revolving Loan Commitment
Termination Date an issuance fee in an amount equal to 1/4 of 1% per annum on
the Stated Amount of such Letter of Credit. The Borrowers further agree to
jointly and severally pay to the applicable Issuer such administrative fee and
other fees, if any, in connection with Letters of Credit in such amounts and at
such times as the applicable Issuer and the Borrowers shall agree from time to
time.

                                   ARTICLE IV
                     CERTAIN LIBO RATE AND OTHER PROVISIONS

     SECTION 4.1. LIBO RATE LENDING UNLAWFUL. If any Lender shall determine
(which determination shall, upon notice thereof to the Borrowers and the
Administrative Agent, be conclusive and binding on the Borrowers) that the
introduction of or any change in or in the interpretation of any law makes it
unlawful, or any Governmental Authority asserts that it is unlawful, for such
Lender to make or continue any Loan as, or to convert any Loan into, a LIBO Rate
Loan, the obligations of such Lender to make, continue or convert any such LIBO
Rate Loan shall, upon such determination, forthwith be suspended until such
Lender shall notify the Administrative Agent that the circumstances causing such
suspension no longer exist, and all outstanding LIBO Rate Loans payable to such
Lender shall automatically convert into Base Rate Loans at the end of the then
current Interest Periods with respect thereto or sooner, if required by such law
or assertion.

                                      -70-
<PAGE>

     SECTION 4.2. DEPOSITS UNAVAILABLE. If the Administrative Agent shall have
determined that

          (a) Dollar deposits in the relevant amount and for the relevant
     Interest Period are not available to it in its relevant market; or

          (b) by reason of circumstances affecting its relevant market, adequate
     means do not exist for ascertaining the interest rate applicable hereunder
     to LIBO Rate Loans;

then, upon notice from the Administrative Agent to the Borrowers and the
Lenders, the obligations of all Lenders under SECTION 2.3 and SECTION 2.4 to
make or continue any Loans as, or to convert any Loans into, LIBO Rate Loans
shall forthwith be suspended until the Administrative Agent shall notify the
Borrowers and the Lenders that the circumstances causing such suspension no
longer exist.

     SECTION 4.3. INCREASED LIBO RATE LOAN COSTS, ETC. The Borrowers agree to
jointly and severally reimburse each Lender and Issuer for any increase in the
cost to such Lender or Issuer of, or any reduction in the amount of any sum
receivable by such Secured Party in respect of, such Secured Party's Commitments
and the making of Credit Extensions hereunder (including the making, continuing
or maintaining (or of its obligation to make or continue) any Loans as, or of
converting (or of its obligation to convert) any Loans into, LIBO Rate Loans)
that arise in connection with any change in, or the introduction, adoption,
effectiveness, interpretation, reinterpretation or phase-in after the date
hereof of, any law or regulation, directive, guideline, decision or request
(whether or not having the force of law) of any Governmental Authority, except
for any such changes with respect to increased capital costs and Taxes (which
are governed by SECTIONS 4.5 and 4.6, respectively). Each affected Secured Party
shall promptly notify the Administrative Agent and the Borrowers in writing of
the occurrence of any such event, stating the reasons therefor and the
additional amount required fully to compensate such Secured Party for such
increased cost or reduced amount. Such additional amounts shall be payable by
the Borrowers jointly and severally directly to such Secured Party within five
days of its receipt of such notice, and such notice shall, in the absence of
manifest error, be conclusive and binding on the Borrowers.

     SECTION 4.4. FUNDING LOSSES. In the event any Lender shall incur any loss
or expense (including any loss or

                                      -71-
<PAGE>

expense incurred by reason of the liquidation or reemployment of deposits or
other funds acquired by such Lender to make or continue any portion of the
principal amount of any Loan as, or to convert any portion of the principal
amount of any Loan into, a LIBO Rate Loan) as a result of

               (a) any conversion or repayment or prepayment of the principal
          amount of any LIBO Rate Loan on a date other than the scheduled last
          day of the Interest Period applicable thereto, whether pursuant to
          ARTICLE III or otherwise;

               (b) any Loans not being made as LIBO Rate Loans in accordance
          with the Borrowing Request therefor; or

               (c) any Loans not being continued as, or converted into, LIBO
          Rate Loans in accordance with the Continuation/Conversion Notice
          therefor;

then, upon the written notice of such Lender to the Borrowers (with a copy to
the Administrative Agent), the Borrowers shall, within five days of its receipt
thereof, jointly and severally pay directly to such Lender such amount as will
(in the reasonable determination of such Lender) reimburse such Lender for such
loss or expense. Such written notice shall, in the absence of manifest error, be
conclusive and binding on the Borrowers.

     SECTION 4.5. INCREASED CAPITAL COSTS. If any change in, or the
introduction, adoption, effectiveness, interpretation, reinterpretation or
phase-in of, any law or regulation, directive, guideline, decision or request
(whether or not having the force of law) of any Governmental Authority affects
or would affect the amount of capital required or expected to be maintained by
any Secured Party or any Person controlling such Secured Party, and such Secured
Party determines (in good faith but in its sole and absolute discretion) that
the rate of return on its or such controlling Person's capital as a consequence
of the Commitments or the Credit Extensions made, or the Letters of Credit
participated in, by such Secured Party is reduced to a level below that which
such Secured Party or such controlling Person could have achieved but for the
occurrence of any such circumstance, then upon notice from time to time by such
Secured Party to the Borrowers, the Borrowers shall within five days following
receipt of such notice jointly and severally pay directly to such Secured Party
additional amounts sufficient to compensate such Secured Party or such
controlling Person for such reduction

                                      -72-
<PAGE>

in rate of return; PROVIDED that such Secured Party shall if requested by the
Borrowers use reasonable efforts (subject to overall policy considerations of
such Lender) to designate another lending office for any Loans affected by such
event or take other action so long as such Lender and its lending office suffer
no economic, legal or regulatory disadvantage, with the object of avoiding the
consequence of the event giving rise to the operation of this Section; PROVIDED,
HOWEVER, that no Borrower shall have any obligation to pay any such additional
amount under this SECTION 4.5 with respect to any such change unless such Lender
shall have notified the applicable Borrower of its demand within 120 days after
the date upon which such Lender or such controlling Person has obtained audited
financial statements with respect to the fiscal year of such Lender or such
controlling Person in which such change occurred. Nothing in the first proviso
to the immediately preceding sentence shall affect or postpone any of the
Obligations of such Borrower or the right of any Lender provided in this
Section. A statement of such Secured Party as to any such additional amount or
amounts shall, in the absence of manifest error, be conclusive and binding on
the Borrowers. In determining such amount, such Secured Party may use any method
of averaging and attribution that it (in its sole and absolute discretion) shall
deem applicable.

     SECTION 4.6. TAXES. Each of Holdings and each Borrower covenants and agrees
as follows with respect to Taxes.

          (a) Any and all payments by Holdings and such Borrower under each Loan
     Document shall be made without setoff, counterclaim or other defense, and
     (subject to CLAUSE (f) below and SECTION 11.11) free and clear of, and
     without deduction or withholding for or on account of, any Taxes. In the
     event that any Taxes are required by law to be deducted or withheld from
     any payment required to be made by Holdings or such Borrower, as the case
     may be, to or on behalf of any Secured Party under any Loan Document, then:

               (i) subject to CLAUSE (f) below and SECTION 11.11, if such Taxes
          are NonExcluded Taxes, the amount of such payment shall be increased
          as may be necessary such that such payment is made, after withholding
          or deduction for or on account of such Taxes, in an amount that is not
          less than the amount provided for in such Loan Document; and

                                      -73-
<PAGE>

               (ii) Holdings or such Borrower, as the case may be, shall
          withhold the full amount of such Taxes from such payment (as increased
          pursuant to CLAUSE (a) (i)) and shall pay such amount to the
          Governmental Authority imposing such Taxes in accordance with
          applicable law.

          (b) In addition, Holdings shall, and the Borrowers shall jointly and
     severally, pay any and all Other Taxes imposed to the relevant Governmental
     Authority imposing such Other Taxes in accordance with applicable law.

          (c) As promptly as practicable after the payment of any Taxes or Other
     Taxes, and in any event within 45 days of any such payment being due,
     Holdings or the Borrowers, as the case may be, shall furnish to the
     Administrative Agent a copy of an official receipt (or a certified copy
     thereof) evidencing the payment of such Taxes or Other Taxes. The
     Administrative Agent shall make copies thereof available to any Lender upon
     request therefor.

          (d) Subject to CLAUSE (f) below and SECTION 11.11, Holdings shall, and
     the Borrowers shall jointly and severally, indemnify each Secured Party for
     any NonExcluded Taxes and Other Taxes levied, imposed or assessed on (and
     whether or not paid directly by) such Secured Party (whether or not such
     Non-Excluded Taxes or Other Taxes are correctly asserted by the relevant
     Governmental Authority). Promptly upon having knowledge that any such
     NonExcluded Taxes or Other Taxes have been levied, imposed or assessed, and
     promptly upon notice thereof by any Secured Party, Holdings shall, and the
     Borrowers shall jointly and severally, pay such NonExcluded Taxes or Other
     Taxes directly to the relevant Governmental Authority (PROVIDED, HOWEVER,
     that no Secured Party shall be under any obligation to provide any such
     notice to Holdings or the Borrowers, as the case may be). In addition,
     Holdings shall, and the Borrowers shall jointly and severally, indemnify
     each Secured Party for any incremental Taxes that may become payable by
     such Secured Party as a result of any failure of Holdings or the Borrowers,
     as the case may be, to pay any Taxes when due to the appropriate
     Governmental Authority or to deliver to the Administrative Agent, pursuant
     to CLAUSE (c), documentation evidencing the payment of Taxes or Other
     Taxes. With respect to indemnification for Non-Excluded Taxes and Other
     Taxes actually paid by

                                      -74-
<PAGE>

     any Secured Party or the indemnification provided in the immediately
     preceding sentence, such indemnification shall be made within 30 days after
     the date such Secured Party makes written demand therefor. Holdings and
     each Borrower acknowledges that any payment made to any Secured Party or to
     any Governmental Authority in respect of the indemnification obligations of
     Holdings or such Borrower, as the case may be, provided in this clause
     shall constitute a payment in respect of which the provisions of CLAUSE (a)
     and this clause shall apply.

          (e) Each Non-Domestic Lender, on or prior to the date on which such
     NonDomestic Lender becomes a Lender hereunder (and from time to time
     thereafter upon the request of Holdings, the Borrowers or the
     Administrative Agent, but only for so long as such Non-Domestic Lender is
     legally entitled to do so), shall deliver to Holdings, the Borrowers and
     the Administrative Agent either

               (i) two duly completed copies of either (a) Internal Revenue
          Service Form W-8BEN or (b) Internal Revenue Service Form W-8ECI, or in
          either case an applicable successor form, certifying that such Lender
          is entitled to an exemption from U.S. federal withholding tax on
          payments of interest pursuant to an income tax treaty to which the
          United States is a party or certifying that the income receivable
          pursuant to this Agreement is effectively connected with the conduct
          of a trade or business in the United States; or

               (ii) in the case of a Non-Domestic Lender that is not legally
          entitled to deliver either form listed in CLAUSE (e)(i) (with respect
          to a complete exemption under an income tax treaty or that the income
          is effectively connected with the conduct of a trade or business in
          the United States), (x) a certificate of a duly authorized officer of
          such Non-Domestic Lender to the effect that such Non-Domestic Lender
          is not (a) a "bank" within the meaning of Section 881(c)(3)(a) of the
          Code, (b) a "10 percent shareholder" of Holdings or either Borrower
          within the meaning of Section 881(c)(3)(b) of the Code, or (c) a
          controlled foreign corporation receiving interest from a related
          person within the meaning of Section 881(c)(3)(c) of the Code (such
          certificate, an

                                      -75-
<PAGE>

          "Exemption Certificate") and (y) two duly completed copies of Internal
          Revenue Service Form W-8BEN (with respect to the portfolio interest
          exemption) or applicable successor form, certifying that such Lender
          is entitled to an exemption from U.S. federal withholding tax on
          payments of interest.

          (f) Notwithstanding any provision herein to the contrary, neither
     Holdings nor either Borrower shall be obligated to gross up any payments to
     any Lender pursuant to CLAUSE (a)(i), or to indemnify any Lender pursuant
     to CLAUSE (d), in respect of United States federal withholding taxes to the
     extent imposed as a result of (i) the failure of such Lender to deliver to
     Holdings or the Borrowers, as the case may be, the form or forms and/or an
     Exemption Certificate, as applicable to such Lender, pursuant to CLAUSE
     (e), (ii) such form or forms and/or Exemption Certificate not establishing
     a complete exemption from U.S. federal withholding tax or the information
     or certifications made therein by the Lender being untrue or inaccurate on
     the date delivered in any material respect, or (iii) the Lender designating
     a successor lending office at which it maintains its Loans which has the
     effect of causing such Lender to become obligated for tax payments in
     excess of those in effect immediately prior to such designation; PROVIDED,
     HOWEVER, that Holdings shall, and the Borrowers shall jointly and
     severally, be obligated to gross up any payments to any such Lender
     pursuant to CLAUSE (a)(i), and to indemnify any such Lender pursuant to
     CLAUSE (d), in respect of United States federal withholding taxes if (i)
     any such failure to deliver a form or forms or an Exemption Certificate or
     the failure of such form or forms or Exemption Certificate to establish a
     complete exemption from U.S. federal withholding tax or inaccuracy or
     untruth contained therein resulted from a change in any applicable statute,
     treaty, regulation or other applicable law or any official interpretation
     of any of the foregoing occurring after the date hereof such Lender
     acquired its interest in the Loan Documents, which change rendered such
     Lender no longer legally entitled to deliver such form or forms or
     Exemption Certificate or otherwise ineligible for a complete exemption from
     U.S. federal withholding tax, or rendered the information or certifications
     made in such form or forms or Exemption Certificate untrue or inaccurate in
     a material respect or (ii) the obligation to gross up payments to any such
     Lender pursuant to

                                      -76-
<PAGE>

     CLAUSE (a)(i) or to indemnify any such Lender pursuant to CLAUSE (d) is
     with respect to an Assignee Lender that becomes an Assignee Lender as a
     result of an assignment made at the request of the Borrowers.

          (g) If Holdings or either Borrower, as the case may be, is required to
     pay additional amounts to or for the account of a Lender pursuant to this
     SECTION 4.6, then such Lender will agree to use reasonable efforts to
     change the jurisdiction of its applicable lending office or take any other
     action reasonably requested by Holdings or either Borrower, as the case may
     be, so as to eliminate or reduce any such additional payment which may
     thereafter accrue if such change would not, in the sole good faith
     determination of such Lender, be otherwise disadvantageous to such Lender
     (taking into account any reimbursement of costs that Holdings or either
     Borrower, as the case may be, may elect to offer).

          (h) If a Secured Party receives a refund of any Taxes or Other Taxes
     as to which it has been indemnified by Holdings and the Borrowers or with
     respect to which Holdings or either Borrower, as the case may be, has paid
     additional amounts pursuant to this SECTION 4.6, which refund in the good
     faith judgment of such Secured Party is attributable to such payment made
     by Holdings or either Borrower, as the case may be, shall reimburse
     Holdings or either Borrower, as the case may be, for such amount as the
     Secured Party determines to be the proportion of the refund as will leave
     it, after such reimbursement, in no better or worse position than it would
     have been in if the payment had not been required. A Secured Party shall
     not be obliged to disclose information regarding its tax affairs or
     computations to Holdings and the Borrowers in connection with this CLAUSE
     (h) or any other provision of this SECTION 4.6.

     SECTION 4.7. PAYMENTS, COMPUTATIONS, ETC. Unless otherwise expressly
provided in a Loan Document, all payments by each Borrower pursuant to each Loan
Document shall be made by such Borrower to the Administrative Agent for the PRO
RATA account of the Secured Parties entitled to receive such payment. All
payments shall be made without setoff, deduction (except as permitted under
Section 4.6(f)) or counterclaim not later than 11:00 a.m. on the date due in
same day or immediately available funds to such account as the Administrative
Agent shall specify from time to time by notice to the Borrowers. Funds received
after that time

                                      -77-
<PAGE>

shall be deemed to have been received by the Administrative Agent on the next
succeeding Business Day. The Administrative Agent shall promptly remit in same
day funds to each Secured Party its share, if any, of such payments received by
the Administrative Agent for the account of such Secured Party. All interest
(including interest on LIBO Rate Loans) and fees shall be computed on the basis
of the actual number of days (including the first day but excluding the last
day) occurring during the period for which such interest or fee is payable over
a year comprised of 360 days (or, in the case of interest on a Base Rate Loan
(calculated at other than the Federal Funds Rate), 365 days or, if appropriate,
366 days). Payments due on other than a Business Day shall (except as otherwise
required by CLAUSE (c) of the definition of the term "Interest Period") be made
on the next succeeding Business Day and such extension of time shall be included
in computing interest and fees in connection with that payment.

     SECTION 4.8. SHARING OF PAYMENTS. If any Secured Party shall obtain any
payment or other recovery (whether voluntary, involuntary, by application of
setoff or otherwise) on account of any Credit Extension or Reimbursement
Obligation (other than pursuant to the terms of SECTIONS 4.3, 4.4, 4.5 or 4.6)
in excess of its PRO RATA share of payments obtained by all Secured Parties,
such Secured Party shall purchase from the other Secured Parties such
participations in Credit Extensions made by them as shall be necessary to cause
such purchasing Secured Party to share the excess payment or other recovery
ratably (to the extent such other Secured Parties were entitled to receive a
portion of such payment or recovery) with each of them; PROVIDED, HOWEVER, that
if all or any portion of the excess payment or other recovery is thereafter
recovered from such purchasing Secured Party, the purchase shall be rescinded
and each Secured Party which has sold a participation to the purchasing Secured
Party shall repay to the purchasing Secured Party the purchase price to the
ratable extent of such recovery together with an amount equal to such selling
Secured Party's ratable share (according to the proportion of (a) the amount of
such selling Secured Party's required repayment to the purchasing Secured Party
TO (b) total amount so recovered from the purchasing Secured Party) of any
interest or other amount paid or payable by the purchasing Secured Party in
respect of the total amount so recovered. Each Borrower agrees that any Secured
Party purchasing a participation from another Secured Party pursuant to this
Section may, to the fullest extent permitted by law, exercise all its rights of
payment (including pursuant to SECTION 4.9) with respect to such

                                      -78-
<PAGE>

participation as fully as if such Secured Party were the direct creditor of such
Borrower in the amount of such participation. If under any applicable
bankruptcy, insolvency or other similar law any Secured Party receives a secured
claim in lieu of a setoff to which this Section applies, such Secured Party
shall, to the extent practicable, exercise its rights in respect of such secured
claim in a manner consistent with the rights of the Secured Parties entitled
under this Section to share in the benefits of any recovery on such secured
claim.

     SECTION 4.9. SETOFF. Each Secured Party shall, upon the occurrence and
during the continuance of any Default described in CLAUSES (a) through (d) of
SECTION 8.1.9 or, with the consent of the Required Lenders, upon the occurrence
and during the continuance of any other Event of Default, have the right to
appropriate and apply to the payment of the monetary Obligations owing to it
(whether or not then due), and (as security for such Obligations) each Borrower
hereby grants to each Secured Party a continuing security interest in, any and
all balances, credits, deposits, accounts or moneys of such Borrower then or
thereafter maintained with such Secured Party; PROVIDED, HOWEVER, that any such
appropriation and application shall be subject to the provisions of SECTION 4.8.
Each Secured Party agrees promptly to notify the applicable Borrower and the
Administrative Agent after any such setoff and application made by such Secured
Party; PROVIDED, HOWEVER, that the failure to give such notice shall not affect
the validity of such setoff and application. The rights of each Secured Party
under this Section are in addition to other rights and remedies (including other
rights of setoff under applicable law or otherwise) which such Secured Party may
have.

     SECTION 4.10. REPLACEMENT OF LENDERS. If any Lender (an "AFFECTED LENDER")
(a) is a Defaulting Lender or (b) makes demand upon the Borrowers for (or if the
Borrowers are otherwise required to pay) amounts pursuant to SECTION 4.3, 4.5 or
4.6 and the payment of such additional amounts is, and is likely to continue to
be, more onerous in the reasonable judgment of the Borrowers than with respect
to the other Lenders, the Borrowers may, within 30 days of receipt by the
Borrowers of such demand, give notice (a "REPLACEMENT NOTICE") in writing to the
Agents and such Affected Lender of their intention to replace such Affected
Lender with a financial institution (a "REPLACEMENT LENDER") designated in such
Replacement Notice; PROVIDED, HOWEVER, that no Replacement Notice may be given
by the Borrowers if (i) such replacement conflicts with any applicable law or

                                      -79-
<PAGE>

regulation, (ii) any Event of Default shall have occurred and be continuing at
the time of such replacement or (iii) prior to any such replacement, such Lender
shall have taken any necessary action under SECTION 4.5 or 4.6 (if applicable)
so as to eliminate the continued need for payment of amounts owing pursuant to
SECTION 4.5 or 4.6. If the Agents shall, in the exercise of their reasonable
discretion and within 10 days of their receipt of such Replacement Notice,
notify the Borrowers and such Affected Lender in writing that the designated
financial institution is satisfactory to the Agents (such consent not being
required where the Replacement Lender is already a Lender), then such Affected
Lender shall, subject to the payment of any amounts due pursuant to SECTION 4.4,
assign, in accordance with SECTION 11.11.1, all of its Commitments, Loans, Notes
(if any) and other rights and obligations under this Agreement and all other
Loan Documents (including Reimbursement Obligations, if applicable) to such
designated financial institution; PROVIDED, HOWEVER, that (i) such assignment
shall be without recourse, representation or warranty and shall be on terms and
conditions reasonably satisfactory to such Affected Lender and such designated
financial institution, (ii) the purchase price paid by such designated financial
institution shall be in the amount of such Affected Lender's Loans and its
Percentage of outstanding Reimbursement Obligations, together with all accrued
and unpaid interest and fees in respect thereof, plus all other amounts
(including the amounts demanded and unreimbursed under SECTIONS 4.3, 4.5 and
4.6), owing to such Affected Lender hereunder and (iii) the Borrowers shall pay
to the Affected Lender and the Agents all reasonable out-of-pocket expenses
incurred by the Affected Lender and the Agents in connection with such
assignment and assumption (including the processing fees described in SECTION
11.11.1). Upon the effective date of an assignment described above, the
Replacement Lender shall become a "Lender" for all purposes under this Agreement
and the other Loan Documents.

                                    ARTICLE V
                         CONDITIONS TO CREDIT EXTENSIONS

     SECTION 5.1. INITIAL CREDIT EXTENSION. The obligations of the Lenders and,
if applicable, the Issuer to fund the initial Credit Extension shall be subject
to the prior or concurrent satisfaction of each of the conditions precedent set
forth in this SECTION 5.1.

                                      -80-
<PAGE>

     SECTION 5.1.1. RESOLUTIONS, ETC. The Agents shall have received from each
Obligor and the Seller, as applicable, (i) a copy of a good standing certificate
from the jurisdiction of its organization and each other jurisdiction where the
nature of its business requires such Obligor and the Seller to be qualified to
do business and in good standing as a foreign entity (except where the failure
to be so qualified or in good standing as a foreign entity could not reasonably
be expected to have a Material Adverse Effect), dated a date reasonably close to
the Closing Date, for each such Person and (ii) a certificate, dated the Closing
Date, duly executed and delivered by such Person's Secretary or Assistant
Secretary, managing member or general partner, as applicable, as to

          (a) the fact that a complete and correct copy of the resolutions of
     each such Person's Board of Directors (or other managing body, in the case
     of other than a corporation) then in full force and effect authorizing, to
     the extent relevant, all aspects of the Transaction applicable to such
     Person and the execution, delivery and performance of each Loan Document to
     be executed by such Person and the transactions contemplated hereby and
     thereby is attached to such certificate and that those resolutions have not
     been amended, modified or rescinded by subsequent action;

          (b) the incumbency and signatures of those of its officers, managing
     member or general partner, as applicable, authorized to act with respect to
     each Loan Document to be executed by such Person; and

          (c) the fact that a complete, correct and current copy of each Organic
     Document of such Person is attached to such certificate;

upon which certificates each Secured Party may conclusively rely until it shall
have received a further certificate of the Secretary, Assistant Secretary,
managing member or general partner, as applicable, of any such Person canceling
or amending the prior certificate of such Person.

          SECTION 5.1.2. TRANSACTION CONSUMMATED. (a) The Financed Acquisition
     shall have been consummated (or shall be concurrently consummated) and in
     connection therewith, Holdings shall have acquired 94.9% of WRC pursuant to
     the Purchase Agreement for an aggregate purchase price of $396,054,500.

                                      -81-
<PAGE>

          (b) In connection with the Financed Acquisition,

               (i) Holdings shall acquire (either directly or indirectly) WRC,
          PRI, AGS and Lifetime;

               (ii) the Seller shall have retained the Rollover Equity;

               (iii) Holdings shall continue to own all of the Capital
          Securities of JLC; and

               (iv) the Borrowers shall have consummated the Refinancing of
          approximately $27,000,000 of existing Indebtedness of JLC.

          (c) The Subordinated Note Issuance shall have been consummated on
     terms (including documentation in respect thereof in form and substance)
     satisfactory in all respects to the Syndication Agent and resulted in gross
     cash proceeds of at least $149,900,000.

          (d) The PIK Preferred Equity Issuance shall have been consummated on
     terms (including documentation in respect thereof in form and substance)
     satisfactory in all respects to the Syndication Agent, and shall have
     resulted in net cash proceeds of at least $75,000,000 to Holdings and all
     such cash proceeds shall have been used by Holdings to purchase the WRC
     Mirror PIK Preferred Equity from WRC.

          (e) The Common Equity Issuance shall have been consummated on terms
     (including documentation in respect thereof in form and substance)
     satisfactory in all respects to the Syndication Agent and shall have
     resulted in cash proceeds to Holdings of at least net $95,000,000.

          (f) The Borrowers shall have paid estimated fees and expenses in
     connection with the Transaction in an amount not exceeding $22,800,000.

     SECTION 5.1.3. TRANSACTION DOCUMENTS. The Agents shall have received (with
copies for each Lender that shall have requested in writing copies thereof)
copies of fully executed versions of the Transaction Documents, each certified
to be true and complete copies thereof by an Authorized Officer of each of
Holdings and the Borrowers. Each Transaction Document (including the Purchase
Agreement) shall be in full force and effect and shall not have been modified or
waived in any material respect, nor shall there have been any forbearance to
exercise any rights with respect to any of the material terms or provisions
relating

                                      -82-
<PAGE>

to the conditions to the consummation of the Financed Acquisition set forth in
the Purchase Agreement unless otherwise agreed to by the Required Lenders.

     SECTION 5.1.4. CLOSING DATE CERTIFICATE. The Agents shall have received,
with counterparts for each Lender, the Closing Date Certificate, dated the
Closing Date and duly executed and delivered by an Authorized Officer of each of
Holdings and each of the Borrowers, in which certificate each of Holdings and
each Borrower shall agree and acknowledge that the statements made therein shall
be deemed to be true and correct representations and warranties of Holdings and
each such Borrower as of such date, and, at the time each such certificate is
delivered, such statements shall in fact be true and correct. All documents and
agreements required to be appended to the Closing Date Certificate shall be in
form and substance satisfactory to the Syndication Agent.

     SECTION 5.1.5. DELIVERY OF NOTES. The Agents shall have received, for the
account of each Lender that has requested a Note in writing two Business Days
prior to the Closing Date, such Lender's Notes duly executed and delivered by an
Authorized Officer of each of the Borrowers.

     SECTION 5.1.6. PAYMENT OF OUTSTANDING INDEBTEDNESS, ETC. All Indebtedness
identified in ITEM 7.2.2(b) of the Disclosure Schedule, together with all
interest, all prepayment premiums and other amounts due and payable with respect
thereto, shall have been paid in full from the proceeds of the initial Credit
Extension and the commitments in respect of such Indebtedness shall have been
terminated, and all Liens securing payment of any such Indebtedness have been
released and the Administrative Agent shall have received all Uniform Commercial
Code Form UCC-3 termination statements or other instruments as may be suitable
or appropriate in connection therewith.

     SECTION 5.1.7. CLOSING FEES, EXPENSES, ETC. The Agents shall have received
for their respective accounts, or for the account of each Lender, as the case
may be, all fees, costs and expenses due and payable pursuant to SECTIONS 3.3
and 11.3, to the extent then invoiced.

     SECTION 5.1.8. FINANCIAL INFORMATION, MATERIAL ADVERSE CHANGE. (a) The
Agents shall have received

          (i)(A) consolidated financial statements of each Borrower and AGS
     including balance sheets as of the end of each of the two Fiscal Years
     ended December 31, 1998

                                      -83-
<PAGE>

     and December 31, 1997, and income and cash flow statements for each of the
     three Fiscal Years ended December 31, 1998, December 31, 1997 and December
     31, 1996, prepared in conformity with GAAP and together with reports
     thereon (1) in the case of JLC, audited by PricewaterhouseCoopers LLP, and
     (2) in the case of WRC and AGS, audited by Deloitte & Touche LLP, and (B)
     selected financial information of each Borrower and AGS for the periods and
     as of the dates set forth under the captions "Selected Historical
     Consolidated Financial Information -Weekly Reader Corporation", "Selected
     Historical Consolidated Financial Information -- American Guidance Service,
     Inc.", and "Selected Historical Consolidated Financial Information -- JLC
     Learning Corporation" in the Offering Memorandum;

          (ii) (A) unaudited pro forma consolidated statements of operations of
     Holdings for the year ended December 31, 1998, for the six months ended
     June 30, 1998, for the six months ended June 30, 1999, and for the twelve
     months ended June 30, 1999, in each case giving effect to the Transactions
     as if they had occurred on January 1, 1998, and (B) the unaudited pro forma
     consolidated balance sheet of Holdings as of June 30, 1999, giving effect
     to the Transactions as if they had occurred on June 30, 1999 (in each case
     in the form in which they are included in the Offering Memorandum, subject
     to the statements under the captions "Unaudited Pro Forma Consolidated
     Financial Information", "Notes to Unaudited Pro Forma Consolidated
     Statements of Operations", and "Notes to Unaudited Pro Forma Consolidated
     Balance Sheet Data" in the Offering Memorandum), prepared in each case in
     accordance with Regulation S-X; and

          (iii) projected consolidated financial statements (including balance
     sheets and statements of operations, stockholders' equity and cash flows)
     of each of Holdings and each Borrower for the four-year period following
     the Closing Date (the "PROJECTIONS").

     (b) Since December 31, 1998, there has not been any material adverse change
in the business, assets, condition (financial or otherwise), operations,
performance, properties, or Projections of Holdings, the Borrowers and their
respective Subsidiaries, taken as a whole, or WRC, JRC and their respective
Subsidiaries, taken as a whole.

                                      -84-
<PAGE>

     SECTION 5.1.9. OPINIONS OF COUNSEL; RELIANCE LETTERS. The Agents shall have
received

          (a) opinions, dated the Closing Date and addressed to the Agents and
     all of the Lenders, from

               (i) Cravath, Swaine & Moore, New York counsel to the Obligors, in
          form and substance satisfactory to the Agents; and

               (ii) local counsel to the Obligors in the following
          jurisdictions, in form and substance, and from counsel, satisfactory
          to the Agents:

                    (A) Latham & Watkins, California counsel to the Obligors;
               and

                    (B) Briggs and Morgan, Minnesota counsel to the Obligors.

          (b)such reliance letters as the Agents may reasonably request, which
     reliance letters shall be dated the Closing Date, addressed to the Agents
     and all of the Lenders and relate to each of the legal opinions (other than
     "disclosure" and other similar opinions) delivered in connection with the
     Transaction.

     SECTION 5.1.10. FILING AGENT, ETC. All Uniform Commercial Code financing
statements or other similar financing statements and Uniform Commercial Code
(Form UCC-3) termination statements required pursuant to the Loan Documents
(collectively, the "FILING STATEMENTS") shall have been delivered to CT
Corporation System or another similar filing service company acceptable to the
Agents (the "FILING AGENT"). The Filing Agent shall have acknowledged in a
writing satisfactory to the Agents and their counsel (i) the Filing Agent's
receipt of all Filing Statements, (ii) that the Filing Statements have either
been submitted for filing in the appropriate filing offices or will be submitted
for filing in the appropriate offices within ten days following the Closing Date
and (iii) that the Filing Agent will notify the Agents and their counsel of the
results of such submissions within 30 days following the Closing Date.

     SECTION 5.1.11. SUBSIDIARY GUARANTY. The Agents shall have received the
Subsidiary Guaranty, dated as of the date hereof, duly executed and delivered by
each Subsidiary Guarantor.

                                      -85-
<PAGE>

     SECTION 5.1.12. SOLVENCY, ETC. The Agents shall have received,

          (a) a written solvency opinion of Valuation Research Corporation
     addressed to the Agents and the Lenders, and their respective successors
     and assigns, which opinion shall be in form and substance satisfactory to
     the Agents; and

          (b) a certificate duly executed and delivered by the chief financial
     or accounting Authorized Officer of each of Holdings and each of the
     Borrowers, dated the date of the Closing Date, in the form of EXHIBIT F
     attached hereto.

     SECTION 5.1.13. SECURITY AND PLEDGE AGREEMENT; SELLER PLEDGE AGREEMENT. The
Agents shall have received the Security and Pledge Agreement, dated as of the
Closing Date and duly executed and delivered by an Authorized Officer of each of
Holdings, each Borrower and each Subsidiary Guarantor and the Seller Pledge
Agreement, dated as of the Closing Date and duly executed and delivered by an
Authorized Officer of Seller, together with

          (a) certificates evidencing all of the issued and outstanding Capital
     Securities pledged pursuant to both the Security and Pledge Agreement and
     the Seller Pledge Agreement, which certificates in each case shall be
     accompanied by undated instruments of transfer executed in blank by
     effective endorsement, or, if any such shares of Capital Stock pledged
     pursuant to either the Security and Pledge Agreement or the Seller Pledge
     Agreement are uncertificated securities, the Administrative Agent shall
     have obtained "control" (as defined in the U.C.C.) over such shares of
     Capital Stock) and such other instruments and documents as the
     Administrative Agent shall deem necessary or in the reasonable opinion of
     applicable law to perfect the security interest of the Administrative Agent
     in such shares of Capital Stock so that the Administrative Agent will be a
     "protected purchaser" (as defined in Section 8-303(a) of the U.C.C.).

          (b) all Intercompany Notes, if any, pledged pursuant to the Security
     and Pledge Agreement;

          (c) executed copies of Filing Statements naming each such Obligor as a
     debtor and the Administrative Agent as the secured party, or other similar
     instruments or documents to be filed under the Uniform

                                      -86-
<PAGE>

     Commercial Code of all jurisdictions as may be necessary or, in the opinion
     of the Administrative Agent, desirable to perfect the security interests of
     the Administrative Agent pursuant to both the Security and Pledge Agreement
     and the Seller Pledge Agreement;

          (d) executed copies of proper Uniform Commercial Code Form UCC-3
     termination statements, if any, necessary to release all Liens and other
     rights of any Person (other than any Liens permitted under SECTION 7.2.3)
     (i) in any collateral described in either the Security and Pledge Agreement
     or the Seller Pledge Agreement previously granted by any Person, and (ii)
     securing any of the Indebtedness identified in ITEM 7.2.2(b) of the
     Disclosure Schedule, together with such other Uniform Commercial Code Form
     UCC-3 termination statements as the Administrative Agent may reasonably
     request from such Obligor; and

          (e) certified copies of Uniform Commercial Code Requests for
     Information or Copies (Form UCC-11), or a similar search report certified
     by a party acceptable to the Administrative Agent, dated a date reasonably
     near to the Closing Date, listing all effective financing statements which
     name such Obligor (under its present name and any previous names of such
     Obligor within the four month period preceding the date hereof) as the
     debtor and which are filed in the jurisdictions in which filings are to be
     made pursuant to CLAUSE (c) above, together with copies of such financing
     statements.

The Agents and their counsel shall be satisfied that (i) the Lien granted to the
Administrative Agent, for the benefit of the Secured Parties in the collateral
described above is a first priority (or local equivalent thereof) security
interest subject to the Liens permitted under SECTION 7.2.3; and (ii) no Lien
exists on any of the Collateral (as defined in the Security and Pledge Agreement
and the Seller Pledge Agreement) other than the Lien created in favor of the
Administrative Agent, for the benefit of the Secured Parties, pursuant to a Loan
Document and Liens permitted by SECTION 7.2.3.

     SECTION 5.1.14. PATENT SECURITY AGREEMENT, TRADEMARK SECURITY AGREEMENT,
AND COPYRIGHT SECURITY AGREEMENT. The Agents shall have received the Patent
Security Agreement, the Trademark Security Agreement, and the Copyright Security
Agreement (other than the instruments or documents to be delivered pursuant to
SECTION 7.1.10) as applicable, each

                                      -87-
<PAGE>

dated as of the Closing Date, duly executed and delivered by an Authorized
Officer of each Obligor that has delivered the Security and Pledge Agreement.

     SECTION 5.1.15. PERFECTION CERTIFICATE. The Agents shall have received
Perfection Certificates, dated as of the Closing Date, duly executed and
delivered by an Authorized Officer of each of Holdings, each Borrower and each
other Obligor that is a party to the Security and Pledge Agreement.

     SECTION 5.1.16. MORTGAGE. The Agents shall have received counterparts of
each Mortgage, dated as of the Closing Date, duly executed by an Authorized
Officer of each applicable Borrower, together with

          (a) mortgagee's title insurance policies in favor of the
     Administrative Agent for the benefit of the Secured Parties in amounts and
     in form and substance and issued by insurers, reasonably satisfactory to
     the Administrative Agent, with respect to the property purported to be
     covered by each Mortgage, insuring that title to such property is
     marketable and that the interests created by each Mortgage constitute valid
     first Liens thereon free and clear of all defects and encumbrances other
     than as approved by the Administrative Agent, and such policies shall also
     include a survey reading, and, if required by the Administrative Agent and
     if available, revolving credit endorsement, comprehensive endorsement,
     variable rate endorsement, access and utilities endorsements, mechanic's
     lien endorsement and such other endorsements as the Administrative Agent
     shall reasonably request and shall be accompanied by evidence of the
     payment in full of all premiums thereon; and

          (b) such other approvals, opinions, or documents as the Administrative
     Agent may request including consents and estoppel agreements from
     landlords, a current survey of each property purported to be covered by a
     Mortgage in form and substance satisfactory to the Administrative Agent and
     the title insurer, and a real estate appraisal for each such property
     prepared in accordance with the requirements of the Financial Institutions
     Reform Recovery and Enforcement Act of 1989 and the regulations promulgated
     thereunder, and otherwise in form and substance satisfactory to the
     Administrative Agent.

                                      -88-
<PAGE>

     SECTION 5.1.17. INSURANCE. The Agents shall have received certified copies
of the insurance policies (or binders in respect thereof), from one or more
insurance companies satisfactory to the Agents, evidencing coverage required to
be maintained pursuant to each Loan Document.

     SECTION 5.1.18. LITIGATION. There shall exist no pending or threatened
action, suit, investigation, litigation or proceeding pending or threatened in
any court or before any arbitrator or governmental instrumentality which (x)
contests the consummation of the Transaction or the legality or validity of the
Credit Agreement, any other Loan Document or any Transaction Document or (y)
could reasonably be expected to have a Material Adverse Effect.

     SECTION 5.1.19. MINIMUM EBITDA. Holdings' PRO FORMA EBITDA for the
consecutive twelve month period ended June 30, 1999 (including estimated
transaction related accounting adjustments, prepared and reviewed by Arthur
Andersen & Co. in accordance with Regulation S-X for Form S-1 Registration
Statements and satisfactory in form and substance to DLJ) shall have been at
least $47,300,000.

     SECTION 5.1.20. CORPORATE, TAX AND CAPITAL STRUCTURE. The corporate,
capital and tax structure (including Organic Documents), the shareholders
agreements and the management of Holdings and each Borrower both immediately
before and after the Transaction shall be reasonably satisfactory to the
Syndication Agent in all respects. The corporate and capital structure of
Holdings and its Subsidiaries on the Closing Date shall be as set forth in ANNEX
I hereto.

     SECTION 5.1.21. APPROVALS. All governmental, shareholder and third party
consents (including Hart-Scott-Rodino clearance) and approvals necessary or
desirable in connection with the consummation of the Transaction, and the
related financings and other transactions contemplated hereby shall have been
duly obtained (except for any such consents and approvals the failure of which
to obtain could not reasonably be expected to have a Material Adverse Effect)
and all applicable waiting periods shall have expired without any action being
taken by any competent authority that could restrain, prevent or impose any
materially adverse conditions on the Transaction, and no such law or regulation
shall be applicable which in the judgment of the Syndication Agent could have
any such effect.

     SECTION 5.1.22. SATISFACTORY LEGAL FORM. All documents executed or
submitted pursuant hereto by or on

                                      -89-
<PAGE>

behalf of either Borrower or any of its Subsidiaries or any other Obligors shall
be reasonably satisfactory in form and substance to the Agents and their
counsel; the Agents and their counsel shall have received all information,
approvals, documents or instruments as the Agents or their counsel may
reasonably request.

     SECTION 5.2. ALL CREDIT EXTENSIONS. The obligation of each Lender and each
Issuer to make any Credit Extension (including the initial Credit Extension)
shall be subject to and the satisfaction of each of the conditions precedent set
forth below.

     SECTION 5.2.1. COMPLIANCE WITH WARRANTIES, NO DEFAULT, ETC. Concurrently
with and immediately after giving effect to any Credit Extension, the following
statements shall be true and correct:

          (a) the representations and warranties set forth in each Loan Document
     shall, in each case, be true and correct with the same effect as if then
     made (unless stated to relate solely to an earlier date, in which case such
     representations and warranties shall be true and correct in all material
     respects as of such earlier date); and

          (b) no Default shall have then occurred and be continuing.

     SECTION 5.2.2. CREDIT EXTENSION REQUEST, ETC. Subject to SECTION 2.3.2, the
Administrative Agent shall have received a Borrowing Request if Loans are being
requested, or an Issuance Request if a Letter of Credit is being requested or
extended. Each of the delivery of a Borrowing Request or Issuance Request and
the acceptance by the applicable Borrower of the proceeds of such Credit
Extension shall constitute a representation and warranty by such Borrower that
on the date of such Credit Extension (concurrently with and immediately after
giving effect to such Credit Extension and the application of the proceeds
thereof) the statements made in SECTION 5.2.1 are true and correct in all
material respects.

                                   ARTICLE VI
                         REPRESENTATIONS AND WARRANTIES

     In order to induce the Secured Parties to enter into this Agreement and to
make Credit Extensions hereunder,

                                      -90-
<PAGE>

Holdings and each Borrower represents and warrants to each Secured Party as set
forth in this Article.

     SECTION 6.1. ORGANIZATION, ETC. Holdings, each Borrower and each of their
respective Subsidiaries is validly organized and existing and in good standing
under the laws of the state or jurisdiction of its incorporation or
organization, is duly qualified to do business and is in good standing as a
foreign entity in each jurisdiction where the nature of its business requires
such qualification (except where the failure to be so qualified or in good
standing as a foreign entity could not reasonably be expected to have a Material
Adverse Effect), and has full power and authority and holds all requisite
governmental licenses, permits and other approvals to enter into and perform its
Obligations under each Loan Document to which it is a party and to own and hold
under lease its property and to conduct its business substantially as currently
conducted by it (except where the failure to hold any such license, permit or
other approval could not reasonably be expected to have a Material Adverse
Effect).

     SECTION 6.2. DUE AUTHORIZATION, NON-CONTRAVENTION, ETC. The execution,
delivery and performance by each Borrower of each Loan Document executed or to
be executed by it, the execution, delivery and performance by each other Obligor
of each Loan Document executed or to be executed by it, such Borrower's and each
such other Obligor's participation in the consummation of all aspects of the
Transaction, and the execution, delivery and performance by such Borrower or (if
applicable) any Obligor of the agreements executed and delivered in connection
with the Transaction are in each case within each such Person's powers, have
been duly authorized by all necessary action, and do not

          (a) contravene any (i) Obligor's Organic Documents, (ii) material
     contractual restriction binding on any Obligor, (iii) court decree or order
     binding on any Obligor or (iv) law or governmental regulation applicable to
     any Obligor; or

          (b) result in, or require the creation or imposition of, any Lien on
     any Obligor's properties (except as permitted by this Agreement).

     SECTION 6.3. GOVERNMENT APPROVAL, REGULATION, ETC. No authorization or
approval or other action by, and no notice to or filing with, any governmental
authority or regulatory body or other Person (other than those that have been,
or on

                                      -91-
<PAGE>

the Closing Date will be, duly obtained or made and which are, or on the Closing
Date will be, in full force and effect) is required for the consummation of the
Transaction or the due execution, delivery or performance by Holdings, either
Borrower or any other Obligor of any Loan Document to which it is a party, or
for the due execution, delivery and/or performance of Transaction Documents, in
each case by the parties thereto or the consummation of the Transaction (except
where the failure to obtain or make any such authorization, approval, action,
notice or filing could not reasonably be expected to have a Material Adverse
Effect). None of Holdings, either Borrower or any of their respective
Subsidiaries is an "investment company" within the meaning of the Investment
Company Act of 1940, as amended, or a "holding company", or a "subsidiary
company" of a "holding company", or an "affiliate" of a "holding company" or of
a "subsidiary company" of a "holding company", within the meaning of the Public
Utility Holding Company Act of 1935, as amended.

     SECTION 6.4. VALIDITY, ETC. (a) This Agreement and the Transaction
Documents to which it is a party constitute, and each other Loan Document
executed by each of Holdings and each Borrower will, on the due execution and
delivery thereof, constitute, the legal, valid and binding obligations of
Holdings and such Borrower, enforceable against Holdings and such Borrower in
accordance with their respective terms and (b) each Loan Document executed by
each other Obligor will, on the due execution and delivery thereof by such
Obligor, constitute the legal, valid and binding obligation of such Obligor
enforceable against such Obligor in accordance with its terms (except, in any
case under CLAUSE (a) or (b) above, as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization or similar laws affecting
creditors' rights generally and by principles of equity).

     SECTION 6.5. FINANCIAL INFORMATION.

          (a) The consolidated financial statements of Holdings and each
     Borrower furnished to the Agents and each Lender pursuant to SECTION
     5.1.8(a)(i) have been prepared in accordance with GAAP consistently
     applied, and present fairly the consolidated financial condition of the
     Persons covered thereby as at the dates thereof and the results of their
     operations for the periods then ended.

          (b) The consolidated pro forma balance sheets furnished to the Agents
     and each Lender pursuant to

                                      -92-
<PAGE>

     SECTION 5.1.8(a)(ii) fairly present in all material respects the pro forma
     estimated financial condition of each of Holdings and each Borrower as of
     such date.

          (c) The Projections were prepared by Holdings in good faith on the
     basis of information and assumptions that Holdings and its senior
     management believed to be reasonable as of the date of the Projections and
     such assumptions are reasonable as of the Closing Date.

          (d) All balance sheets, all statements of operations, shareholders'
     equity and cash flow and all other financial information of each of
     Holdings and each Borrower and their respective Subsidiaries furnished
     pursuant to SECTION 7.1.1 have been and will for periods following the
     Effective Date be prepared in accordance with GAAP consistently applied,
     and do or will present fairly the consolidated financial condition of the
     Persons covered thereby as at the dates thereof and the results of their
     operations for the periods then ended.

     SECTION 6.6. NO MATERIAL ADVERSE CHANGE. There has been no material adverse
change in the business, assets, condition (financial or otherwise), operations,
performance, properties, or Projections of Holdings, the Borrowers and their
respective Subsidiaries, taken as a whole, since December 31, 1998.

     SECTION 6.7. LITIGATION, LABOR CONTROVERSIES, ETC. There is no pending or,
to the knowledge of any Responsible Officer of Holdings, either Borrower or any
of their respective Subsidiaries, threatened litigation, action, proceeding or
labor controversy

          (a) except as disclosed in ITEM 6.7 of the Disclosure Schedule,
     affecting Holdings, such Borrower, any such Subsidiaries or any other
     Obligor, or any of their respective properties, businesses, assets or
     revenues, which could reasonably be expected to have a Material Adverse
     Effect, and no adverse development has occurred in any labor controversy,
     litigation, arbitration or governmental investigation or proceeding
     disclosed in ITEM 6.7 which could reasonably be expected to have a Material
     Adverse Effect; or

          (b) which purports to affect the legality, validity or enforceability
     of any Loan Document, the Transaction Documents or the Transaction.

                                      -93-
<PAGE>

     SECTION 6.8. SUBSIDIARIES. Holdings has no direct Subsidiaries other than
the Borrowers. Each Borrower has no Subsidiaries, except those Subsidiaries

          (a) which are identified in ITEM 6.8 of the Disclosure Schedule; or

          (b) which are permitted to have been organized or acquired in
     accordance with SECTION 7.2.5 or 7.2.10.

     SECTION 6.9. OWNERSHIP OF PROPERTIES. Each Borrower and each of its
Subsidiaries owns (i) in the case of owned real property, good and marketable
fee title to, and (ii) in the case of owned personal property, good and valid
title to, or, in the case of leased real or personal property, valid and
enforceable leasehold interests (as the case may be) in, all of its properties
and assets, real and personal, tangible and intangible, of any nature
whatsoever, free and clear in each case of all Liens or claims, except for Liens
permitted pursuant to SECTION 7.2.3.

     SECTION 6.10. TAXES. Holdings, each Borrower and each of their respective
Subsidiaries has filed all material tax returns and reports required by law to
have been filed by it and has paid or caused to be paid all taxes and
governmental charges thereby shown to be due and owing, except (i) any such
taxes or charges which are being contested in good faith by appropriate
proceedings and for which adequate reserves in accordance with GAAP shall have
been set aside on its books or (ii) to the extent that a failure to do so could
not reasonably be expected to have a Material Adverse Effect.

     SECTION 6.11. PENSION AND WELFARE PLANS. During the
twelve-consecutive-month period prior to the date of the execution and delivery
of this Agreement and prior to the date of any Credit Extension hereunder, no
steps have been taken to terminate any Pension Plan, and no contribution failure
has occurred with respect to any Pension Plan sufficient to give rise to a Lien
under Section 302(f) of ERISA. No condition exists or event or transaction has
occurred with respect to any Pension Plan which might result in the incurrence
by Holdings, either Borrower or any member of the Controlled Group of any
material liability, fine or penalty. Except as disclosed in ITEM 6.11 of the
Disclosure Schedule, none of Holdings, either Borrower or any member of the
Controlled Group has any contingent liability with respect to any
post-retirement benefit under a Welfare Plan, other than liability for
continuation coverage described in Part 6 of Title I of ERISA.

                                      -94-
<PAGE>

     SECTION 6.12. ENVIRONMENTAL WARRANTIES. Except as set forth in ITEM 6.12 of
the Disclosure Schedule, and except as could not be reasonably expected to have
a Material Adverse Effect:

          (a) the operations of Holdings, the Borrowers and their respective
     Subsidiaries are in material compliance with all Environmental Laws;

          (b) there is no pending or threatened litigation, action or proceeding
     against Holdings, either Borrower or any of their respective Subsidiaries
     arising out of an alleged violation of any Environmental Law;

          (c) there have been no Releases of Hazardous Materials at, on or under
     any property now owned or leased by Holdings, either Borrower or any of
     their respective Subsidiaries;

          (d) Holdings, each Borrower and each of their respective Subsidiaries
     have been issued and are in material compliance with all permits,
     certificates, approvals, licenses and other authorizations required under
     Environmental Laws for the conduct of their operations;

          (e) no property now owned or leased by Holdings, either Borrower or
     any of their respective Subsidiaries is listed or, to the knowledge of any
     Responsible Officer of Holdings or either Borrower, proposed for listing
     (with respect to owned property only), on the National Priorities List
     pursuant to CERCLA, on the CERCLIS or on any similar state list of sites,
     requiring investigation or clean-up;

          (f) to the knowledge of any Responsible Officer of Holdings or either
     Borrower, there are no underground storage tanks, active or abandoned,
     including petroleum storage tanks, on or under any property now owned or
     leased by Holdings, either Borrower or any of their respective Subsidiaries
     that, singly or in the aggregate, have, or could reasonably be expected to
     have, a Material Adverse Effect;

          (g) none of Holdings, either Borrower nor any of their respective
     Subsidiaries has directly transported or directly arranged for the
     transportation of any Hazardous Material to any location which is listed or
     proposed for listing on the National Priorities List pursuant to CERCLA, on
     the CERCLIS or on any similar

                                      -95-
<PAGE>

     state list or which is the subject of federal, state or local enforcement
     actions or other investigations which may lead to material claims against
     Holdings, either Borrower or any of their respective Subsidiaries for any
     remedial work, damage to natural resources or personal injury, including
     claims under CERCLA; and

          (h) there are no polychlorinated biphenyls, and there is no friable
     asbestos present at any property now or previously owned or leased by
     Holdings, either Borrower or any of their respective Subsidiaries that,
     singly or in the aggregate, have, or could reasonably be expected to have,
     a Material Adverse Effect.

     SECTION 6.13. ACCURACY OF INFORMATION. None of the factual information
heretofore or contemporaneously furnished in writing to any Secured Party by or
on behalf of any Obligor in connection with any Loan Document or any transaction
contemplated hereby (including the Transaction) contains any untrue statement of
a material fact, or omits to state any material fact necessary to make any
information not misleading, and no other factual information hereafter furnished
in connection with any Loan Document by or on behalf of any Obligor to any
Secured Party will contain any untrue statement of a material fact or will omit
to state any material fact necessary to make any information not misleading on
the date as of which such information is dated or certified.

     SECTION 6.14. REGULATIONS U AND X. No Obligor is engaged in the business of
extending credit for the purpose of purchasing or carrying margin stock, and no
proceeds of any Credit Extensions will be used to purchase or carry margin stock
or otherwise for a purpose which violates, or would be inconsistent with, F.R.S.
Board Regulation U or Regulation X. Terms for which meanings are provided in
F.R.S. Board Regulation U or Regulation X or any regulations substituted
therefor, as from time to time in effect, are used in this Section with such
meanings.

     SECTION 6.15. YEAR 2000. Each Obligor has reviewed the areas within its
business and operations which could be adversely affected by, and has developed
or is developing a program to address on a timely basis, the "Year 2000 Problem"
(that is, the risk that computer applications used by such Obligor may be unable
to recognize and properly perform date-sensitive functions involving certain
dates prior to and any date after December 31, 1999). Based on such review and
program, the Year 2000 Problem could not reasonably be expected to have a
Material Adverse Effect.

                                      -96-
<PAGE>

     SECTION 6.16. ISSUANCE OF SUBORDINATED DEBT; STATUS OF OBLIGATIONS AS
SENIOR DEBT, ETC. Each of the Borrowers and Holdings has the power and authority
to incur the Subordinated Debt evidenced by the Subordinated Notes as provided
for under the Sub Debt Documents applicable thereto and has duly authorized,
executed and delivered the Sub Debt Documents applicable to such Subordinated
Debt. Each of the Borrowers and Holdings has issued, pursuant to due
authorization, the Subordinated Debt evidenced by the Subordinated Notes under
the applicable Sub Debt Documents, and such Sub Debt Documents constitute the
legal, valid and binding obligations of each of the Borrowers and Holdings
enforceable against it in accordance with its terms (except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization or similar laws affecting creditors' rights generally and by
principles of equity). The subordination provisions of the Subordinated Debt
contained in the Sub Debt Documents are enforceable against the holders of the
Subordinated Debt by the holder of any "Senior Debt" or similar term referring
to the Obligations (as defined in the Sub Debt Documents). All monetary
Obligations, including those to pay principal of and interest (including
post-petition interest, whether or not allowed as a claim under bankruptcy or
similar laws) on the Loans and Reimbursement Obligations, and fees and expenses
in connection therewith, constitute "Senior Debt" or similar term relating to
the monetary Obligations (as defined in the Sub Debt Documents) and all such
monetary Obligations are entitled to the benefits of the subordination created
by the Sub Debt Documents. Each of the Borrowers and Holdings acknowledges that
each Agent, each Lender and each Issuer is entering into this Agreement and is
extending its Commitments in reliance upon the subordination provisions of the
Sub Debt Documents.

     SECTION 6.17. SOLVENCY. The Transaction (including, among other things,
the incurrence of the initial Credit Extension hereunder, the undertaking by
Holdings of its Obligations under ARTICLE X and the execution and delivery by
the Subsidiary Guarantors of the Subsidiary Guaranty) will not involve or
result in any fraudulent transfer or fraudulent conveyance under the
provisions of Section 548 of the Bankruptcy Code (11 U.S.C. Section 101 ET
SEQ.) or any applicable state law respecting fraudulent transfers or
fraudulent conveyances. On the Closing Date, after giving effect to the
Transaction (including, among other things, the incurrence of the initial
Credit Extension hereunder, the undertaking by Holdings of its Obligations
under ARTICLE X and the execution and delivery by the Subsidiary Guarantors
of the Subsidiary Guaranty), Holdings, each

                                      -97-
<PAGE>

Borrower and each Subsidiary Guarantor is Solvent (taking into account rights of
indemnity, subrogation and contribution).

     SECTION 6.18. CAPITALIZATION. On the Closing Date, after giving effect to
the Transaction,

          (a) the authorized Capital Securities of Holdings consists of (i)
     20,000,000 shares of common stock, $0.01 par value per share, of which
     6,855,853 shares are issued outstanding, and (ii) 20,000,000 shares of
     preferred stock, $0.01 par value per share, of which 3,000,000 shares
     consist of Holdings Exchangeable Preferred Stock of which 3,000,000 shares
     are issued and outstanding;

          (b) the authorized Capital Securities of WRC consist of (i) 22,000,000
     shares of common stock, $0.01 par value per share, of which 20,000,000
     shares are classified as WRC Voting Common Stock of which 2,830,000 shares
     are issued outstanding, and of which 1,000,000 shares are classified as WRC
     Non-Voting Class A Common Stock and of which 1,000,000 shares are
     classified as WRC Non-Voting Class B Common Stock, none of which are issued
     and outstanding, (ii) 422,874 warrants to purchase shares of such WRC
     Common Stock, and (iii) 20,000,000 shares of preferred stock, $0.01 par
     value per share, of which no such shares are issued and outstanding.

          (c) the authorized Capital Securities of JLC consist of (i) 20,000
     shares of common stock, $0.01 par value per share, of which 10,000 shares
     are issued outstanding, (ii) 1,495 warrants to purchase shares of such JLC
     Common Stock and (iii) 10,000,000 shares of preferred stock, $0.01 par
     value per share, of which no such shares are issued and outstanding.

          (d) All outstanding shares of Capital Securities of Holdings, WRC and
     JLC are owned by the persons and in the amounts set forth on ITEMS 6.18(a),
     6.18(b) and 6.18(c) of the Disclosure Schedule, respectively.

          (e) All of such outstanding Capital Securities of Holdings, WRC and
     JLC have been duly and validly issued, are fully paid and nonassessable and
     are free of preemptive rights, and all of the Capital Securities of WRC and
     JLC (other than the WRC PIK Preferred Equity and the JLC PIK Preferred
     Equity, if any) are and will be subject to drag-along rights available to
     certain

                                      -98-
<PAGE>

     other holders of the common stock of WRC or JLC, as the case may be.

                                   ARTICLE VII
                                    COVENANTS

     SECTION 7.1. AFFIRMATIVE COVENANTS. Holdings and each Borrower agrees with
each Lender, each Issuer and each Agent that until the Termination Date has
occurred, Holdings and such Borrower will, and will cause their respective
Subsidiaries to, perform or cause to be performed the obligations set forth in
this SECTION 7.1.

     SECTION 7.1.1. FINANCIAL INFORMATION, REPORTS, NOTICES, ETC. Holdings and
each Borrower will furnish or cause to be furnished to the Agents (with
sufficient copies for each Lender) copies of the following financial statements,
reports, notices and information:

          (a) as soon as available and in any event within 50 days after the end
     of each of the first three Fiscal Quarters of each Fiscal Year, unaudited
     consolidated balance sheets of each of Holdings and each Borrower as of the
     end of such Fiscal Quarter and consolidated statements of income and cash
     flow of each of Holdings and each Borrower for such Fiscal Quarter and for
     the period commencing at the end of the previous Fiscal Year and ending
     with the end of such Fiscal Quarter, and including (in each case), in
     comparative form the figures for the corresponding Fiscal Quarter in, and
     year to date portion of, the immediately preceding Fiscal Year and as
     compared to the budget for the current Fiscal Year, certified by the chief
     financial or accounting Authorized Officer of Holdings as fairly presenting
     the consolidated financial condition of each of Holdings and each Borrower
     and as having been prepared in accordance with GAAP consistently applied;

          (b) as soon as available and in any event within 95 days after the end
     of each Fiscal Year, a copy of the audited consolidated balance sheets of
     Holdings and the unaudited consolidated balance sheets of each Borrower,
     and the related audited consolidated statements of income and cash flow of
     Holdings and the related unaudited statements of income and cash flow of
     each Borrower for such Fiscal Year, setting forth, in each case, in
     comparative form the figures for the immediately preceding Fiscal Year and,
     in the case of such consolidated balance sheets and statements of

                                      -99-
<PAGE>

     income and cash flow of Holdings, audited (without any Impermissible
     Qualification) by Deloitte & Touche LLP or such other independent public
     accountants acceptable to the Agents, which shall state that, in performing
     the examination necessary to deliver the audited financial statements of
     Holdings, no knowledge was obtained of any Event of Default relating to
     SECTION 7.2.4 and, in the case of such unaudited consolidated balance
     sheets and statements of income and cash flow of each Borrower, certified
     as complete and correct by the chief financial or accounting Authorized
     Officer of Holdings;

          (c) concurrently with the delivery of the financial information
     pursuant to CLAUSES (a) and (b), a Compliance Certificate, executed by the
     chief financial or accounting Authorized Officer of Holdings, showing
     compliance with the financial covenants set forth in SECTION 7.2.4 and
     stating that no Default has occurred and is continuing (or, if a Default
     has occurred, specifying the details of such Default and the action that
     Holdings, the Borrowers or an Obligor has taken or proposes to take with
     respect thereto);

          (d) as soon as available and in any event no later than the earlier to
     occur of (i) 30 days after the approval thereof by the Board of Directors
     of Holdings and (ii) 90 days after the first day of the Fiscal Year of
     Holdings, an annual budget, prepared on a monthly basis for such Fiscal
     Year containing consolidated projected financial statements (including
     balance sheets and statements of operations, stockholders' equity and cash
     flows) of Holdings, each of the Borrowers and their respective Subsidiaries
     for such succeeding Fiscal Year and each subsequent Fiscal Year, prepared
     in a manner consistent with the Projections.

          (e) as soon as possible and in any event within five Business Days
     after any Responsible Officer of Holdings, either Borrower or any
     Subsidiary Guarantor obtains knowledge of the occurrence of a Default, a
     statement of an Authorized Officer of the Borrowers setting forth details
     of such Default and the action which Holdings, the Borrowers or such
     Obligor has taken and proposes to take with respect thereto;

          (f) as soon as possible and in any event within five Business Days
     after any Responsible Officer of Holdings, either Borrower or any
     Subsidiary Guarantor

                                     -100-
<PAGE>

     obtains knowledge of (i) the occurrence of any material adverse development
     with respect to any litigation, action, proceeding or labor controversy
     described in ITEM 6.7 of the Disclosure Schedule or (ii) the commencement
     of any litigation, action, proceeding or labor controversy of the type and
     materiality described in SECTION 6.7, notice thereof and, to the extent
     either Agent reasonably requests, copies of all documentation relating
     thereto;

          (g) promptly after the sending or filing thereof, copies of all
     reports, notices, prospectuses and registration statements which any
     Obligor files with the SEC or any national securities exchange;

          (h) immediately upon becoming aware of (i) the institution of any
     steps by any Person to terminate any Pension Plan, (ii) the failure to make
     a required contribution to any Pension Plan if such failure is sufficient
     to give rise to a Lien under Section 302(f) of ERISA, (iii) the taking of
     any action with respect to a Pension Plan which could result in the
     requirement that any Obligor furnish a bond or other security to the PBGC
     or such Pension Plan, or (iv) the occurrence of any event with respect to
     any Pension Plan which could result in the incurrence by any Obligor of any
     material liability, fine or penalty, notice thereof and copies of all
     documentation relating thereto;

          (i) promptly upon receipt thereof, copies of all "management letters"
     submitted to Holdings, either Borrower or any other Obligor by the
     independent public accountants referred to in CLAUSE (b) in connection with
     each audit made by such accountants;

          (j) promptly following the mailing or receipt of any notice or report
     delivered under the terms of any Subordinated Debt, copies of such notice
     or report; and

          (k) such other financial and other information as any Lender or Issuer
     through the Administrative Agent or either Agent may from time to time
     reasonably request (including information and reports in such detail as
     either Agent may request with respect to the terms of and information
     provided pursuant to the Compliance Certificate).

     SECTION 7.1.2. MAINTENANCE OF EXISTENCE; COMPLIANCE WITH LAWS, ETC.
Holdings and each Borrower will, and will cause each of their respective
Subsidiaries to,

                                     -101-
<PAGE>

          (a) except as otherwise permitted by SECTION 7.2.10, preserve and
     maintain its legal existence; and

          (b) comply in all material respects with all applicable laws, rules,
     regulations and orders (except those the failure of which to comply with
     individually or in the aggregate could not reasonably be expected to have a
     Material Adverse Effect), including the payment (before the same become
     delinquent), of all taxes, assessments and governmental charges imposed
     upon Holdings, either Borrower or any of their respective Subsidiaries or
     upon their property except to the extent being diligently contested in good
     faith by appropriate proceedings and for which adequate reserves in
     accordance with GAAP have been set aside on the books of Holdings, such
     Borrower or any such Subsidiary, as applicable.

     SECTION 7.1.3. MAINTENANCE OF PROPERTIES. Holdings and each Borrower will,
and will cause each of their respective Subsidiaries to, maintain, preserve,
protect and keep its and their respective properties in good repair, working
order and condition (ordinary wear and tear excepted), and make necessary
repairs, renewals and replacements so that the business carried on by each
Borrower and its Subsidiaries may be properly conducted at all times, unless
such Borrower or such Subsidiary determines in good faith that the continued
maintenance of such property is no longer economically desirable.

     SECTION 7.1.4. INSURANCE. Holdings and each Borrower will, and will cause
each of their respective Subsidiaries to:

          (a) maintain insurance on its property with financially sound and
     reputable insurance companies against loss and damage in at least the
     amounts (and with only those deductibles) customarily maintained, and
     against such risks as are typically insured against in the same general
     area, by Persons of comparable size engaged in the same or similar business
     as the Borrowers and their Subsidiaries; and

          (b) all worker's compensation, employer's liability insurance or
     similar insurance as may be required under the laws of any state or
     jurisdiction in which it may be engaged in business.

Without limiting the foregoing, all insurance policies required pursuant to this
Section shall name the

                                     -102-
<PAGE>

Administrative Agent on behalf of Secured Parties as mortgagee (in the case of
property insurance) or additional insured (in the case of liability insurance),
as applicable, and provide that no cancellation or modification of the policies
will be made without thirty days' prior written notice to the Administrative
Agent.

     SECTION 7.1.5. BOOKS AND RECORDS. Holdings and each Borrower will, and will
cause each of their respective Subsidiaries to, keep books and records in
accordance with GAAP which accurately reflect all of its business affairs and
transactions and permit each Agent (or any other Secured Party if a Specified
Default has occurred and is then continuing) or any of their respective
representatives, at reasonable times and intervals upon reasonable notice to the
Borrowers, to visit Holdings, either Borrowers or any other Obligor's offices,
to discuss Holdings', such Borrower's or such other Obligor's financial matters
with its officers and employees, and its independent public accountants (and
Holdings and the Borrowers hereby authorizes such independent public accountant
to discuss Holdings', the Borrowers' and each Obligor's financial matters with
each Secured Party or their representatives whether or not any representative of
Holdings, either Borrower or such Obligor is present so long as Holdings, such
Borrower or such Obligor has been afforded a reasonable opportunity to be
present) and to examine (and photocopy extracts from) any of its books and
records; PROVIDED that, in the case of a visit by a Secured Party (other than an
Agent), such visit shall be coordinated by the Administrative Agent). Unless a
Specified Event shall have occurred and be continuing at the time of any such
visit or discussion with such independent public accountants, (a) costs of
visits by each Secured Party (other than each Agent) shall be for the account of
such Secured Party and (b) costs associated with any such discussions with such
independent public accountants shall be for the account of the applicable Agent
or such other applicable Secured Party.

     SECTION 7.1.6. ENVIRONMENTAL LAW COVENANT. Holdings and each Borrower will,
and will cause each of their respective Subsidiaries to,

          (a) use and operate all of its and their facilities and properties in
     material compliance with all Environmental Laws, keep all necessary
     permits, approvals, certificates, licenses and other authorizations
     required by applicable Environmental Laws in effect and remain in material
     compliance therewith; and

                                     -103-
<PAGE>

          (b) (i) notify the Agents within ten Business Days after any
     Responsible Officer of such Obligor receives any material written claim,
     complaint or notice relating to the condition of its facilities and
     properties relating to compliance with Environmental Laws, and (ii) take
     reasonable steps to resolve any material non-compliance with Environmental
     Laws and keep its property free of any Lien imposed by any Environmental
     Law.

     SECTION 7.1.7. USE OF PROCEEDS. The Borrowers shall

          (a) apply the proceeds of the Loans

               (i) in the case of the Term Loans, (A) to finance the
          consummation of the Transaction, and (B) to pay the transaction fees
          and expenses associated with the Transaction; PROVIDED, that the
          aggregate amount of such transaction fees and expenses shall not
          exceed $22,000,000; and

               (ii) in the case of Revolving Loans and Swing Line Loans, for
          post-closing working capital and general corporate purposes of the
          Borrowers and their respective Subsidiaries; and

          (b) use Letters of Credit (whether standby or direct pay) only for
     purposes of supporting working capital and general corporate purposes of
     the Borrowers and their Subsidiary Guarantors.

     SECTION 7.1.8. FUTURE SUBSIDIARY GUARANTORS, SECURITY, ETC. Holdings and
each Borrower will, and will cause each of their respective Domestic
Subsidiaries and, subject to the qualifications provided herein, Foreign
Subsidiaries to, execute any documents, Perfection Certificates, Filing
Statements, agreements and instruments, and take all further action (including
filing Mortgages not relating to leaseholds of either Borrower or any
Subsidiary) that may be required under applicable law, or that either Agent may
reasonably request, in order to effectuate the transactions contemplated by the
Loan Documents and in order to grant, preserve, protect and perfect the
perfection and priority of the security interests created or intended to be
created by the Loan Documents. Holdings and each Borrower will cause any
subsequently acquired or organized Domestic Subsidiary of such Borrower to
promptly, but in no event later than 45 days following such acquisition or
organization, execute a Subsidiary Guaranty (or a supplement thereto) and each
applicable Loan Document (including a supplement to the

                                     -104-
<PAGE>

Security and Pledge Agreement) in favor of the Secured Parties. In addition,
from time to time, Holdings and each Borrower will, at its cost and expense,
promptly secure the Obligations by pledging or creating, or causing to be
pledged or created, perfected security interests with respect to such of its
assets and properties as either Agent or the Required Lenders shall designate
(it being understood that it is the intent of the parties that the Obligations
shall be secured by, among other things, substantially all the assets of
Holdings, the Borrowers and their respective Domestic Subsidiaries) (including
real and other properties acquired subsequent to the Effective Date (PROVIDED
that it is the intent of the parties that neither of the Borrowers nor any of
their Subsidiaries shall be required to deliver any leasehold mortgages);
PROVIDED, HOWEVER, that neither Borrower nor any Subsidiary shall be required to
pledge more than 65% of the total voting power of all classes of Securities of a
first tier Foreign Subsidiary or any shares of any other Foreign Subsidiary
required to be pledged hereunder. Such security interests and Liens will be
created under the Loan Documents in form and substance satisfactory to the
Agents, and Holdings and the Borrowers shall deliver or cause to be delivered to
the Lenders all such instruments and documents (including legal opinions, title
insurance policies and lien searches) as the Agents shall reasonably request to
evidence compliance with this Section.

     SECTION 7.1.9. RATE PROTECTION AGREEMENTS. Within 170 days following the
Closing Date, Holdings and the Borrowers will enter into interest rate swaps,
caps, collars or similar agreements in a notional amount equal to at least 50%
of the aggregate principal amount of the Term Loans and on such other terms as
the Agents, Holdings and the Borrowers shall mutually agree.

     SECTION 7.1.10. UNDERTAKING. The applicable Borrowers and Domestic
Subsidiaries of such Borrowers will deliver to the Agents no later than 45 days
after the Closing Date instruments or documents, in appropriate form for filing
with the United States Copyright Office, sufficient to create and perfect a
security interest in the Copyright Collateral (as defined in the Security and
Pledge Agreement) owned as of the Closing Date by the Borrowers and their
Domestic Subsidiaries and identified in ITEM 7.1.10 ("COPYRIGHTS") of the
Disclosure Schedule.

     SECTION 7.1.11. LEASED PROPERTY. (a) Each of Holdings and each Borrower
shall, and shall cause each of its Subsidiaries to, use its commercially
reasonable best

                                     -105-
<PAGE>

efforts (which shall not require the payment of any fee to obtain any Landlord
Waiver) to deliver to the Administrative Agent no later than 30 days after the
Closing Date a Landlord Waiver executed by the lessor of any real property that
is currently leased by Holdings, such Borrower or any such Subsidiary for a term
ending subsequent to the first anniversary of the Closing Date in any state
which by statute grants such lessor a "landlord's" (or similar) Lien which is
superior to that of the Administrative Agent and to the extent any such Landlord
Waiver is not so executed and delivered, a written explanation of Holdings as to
why Holdings, such Borrower or such Subsidiary, as the case may be, was unable
to obtain such Landlord Waiver.

     (b) Prior to entering into any new lease of real property or renewing any
existing lease of real property following the Closing Date, each of Holdings and
each Borrower shall, and shall cause each of its Subsidiaries to, use its
commercially reasonable best efforts to deliver to the Administrative Agent a
Landlord Waiver executed by the lessor of any real property that is to be leased
by Holdings, such Borrower or such Subsidiary for a term in excess of one year
in any state which by statute grants such lessor a "landlord's" (or similar)
Lien which is superior to that of the Administrative Agent and to the extent any
such Landlord Waiver is not so executed and delivered, a written explanation of
Holdings as to why Holdings, such Borrower or such Subsidiary, as the case may
be, was unable to obtain such Landlord Waiver.

     SECTION 7.1.12. YEAR 2000. The Borrower shall continue actions reasonably
necessary to address on a timely basis the Year 2000 Problem as contemplated by
SECTION 6.15.

     SECTION 7.1.13. ADDITIONAL OPINIONS. Within 45 days following the Closing
Date, the Borrowers shall have caused to be delivered to the Agents, in form and
substance satisfactory to the Agents, letters of opinion relating to the
protection of Collateral (as defined in the Security and Pledge Agreement)
located in the states set forth in ITEM 7.1.13 of the Disclosure Schedule from
local counsel reasonably satisfactory to the Agents.

     SECTION 7.2. NEGATIVE COVENANTS. Holdings and each Borrower covenants and
agrees with each Lender, each Issuer and each Agent that until the Termination
Date has occurred, Holdings and such Borrower will, and will cause each of its
respective Subsidiaries to, perform or cause to be performed the obligations set
forth in this SECTION 7.2.

                                     -106-
<PAGE>

     SECTION 7.2.1. BUSINESS ACTIVITIES. Holdings and each Borrower will not,
and will not permit any of their respective Subsidiaries to, engage in any
business activity except those business activities engaged in on the date of
this Agreement and activities reasonably incidental or related thereto. Holdings
will not engage in any business activity other than (a) its direct ownership of
the Capital Securities of WRC and the Capital Securities of JLC and its indirect
ownership of the Capital Securities of each Subsidiary of each Borrower and (b)
its compliance with the obligations applicable to it under the Loan Documents
and the Transaction Documents. Without limiting the generality of the
immediately preceding sentence, Holdings will not (i) create, incur, assume or
suffer to exist any Indebtedness (other than Indebtedness under this Agreement
or any other Loan Document, Indebtedness permitted to be incurred by it pursuant
to SECTION 7.2.2(d) or any Subordinated Debt pursuant to CLAUSE (h) (or (m) (but
only to the extent that it refinances any Subordinated Debt incurred under
CLAUSE (h))) of SECTION 7.2.2), (ii) create, assume, or suffer to exist any Lien
upon, or grant any options or other rights with respect to, any of its revenues,
property or other assets, whether now owned or hereafter acquired (other than
pursuant to the Loan Documents), (other than any Liens permitted by SECTION
7.2.3) (iii) wind-up, liquidate or dissolve itself (or suffer to exist any of
the foregoing), or consolidate or amalgamate with or merge into or with any
other Person, or convey, sell, transfer, lease or otherwise dispose of all or
any part of its assets, in one transaction or a series of transactions, to any
Person or Persons, (iv) create, incur, assume or suffer to exist any Investment
in any Person or (v) permit to be taken any action that would result in a Change
in Control.

     SECTION 7.2.2. INDEBTEDNESS. Holdings and each Borrower will not, and will
not permit any of their respective Subsidiaries to, create, incur, assume or
permit to exist any Indebtedness, other than:

          (a) Indebtedness in respect of the monetary Obligations;

          (b) until the Closing Date, Indebtedness that is to be repaid in full
     as further identified in ITEM 7.2.2(b) of the Disclosure Schedule;

          (c) Indebtedness existing as of the Effective Date which is identified
     in ITEM 7.2.2(c) of the Disclosure Schedule;

                                     -107-
<PAGE>

          (d) unsecured Indebtedness of Holdings, the Borrowers and their
     respective Subsidiaries (i) incurred in the ordinary course of business of
     Holdings, such Borrower and its Subsidiaries (including open accounts
     extended by suppliers on normal trade terms in connection with purchases of
     goods and services which are not overdue for a period of more than 120 days
     or, if overdue for more than 120 days, as to which a dispute exists and
     adequate reserves in conformity with GAAP have been established on the
     books of Holdings, such Borrower or such Subsidiary) and (ii) in respect of
     performance, surety or appeal bonds provided in the ordinary course of
     business, but excluding (in each case), Indebtedness incurred through the
     borrowing of money or Contingent Liabilities in respect thereof (PROVIDED,
     HOWEVER, that the amount of outstanding unsecured Indebtedness incurred by
     Holdings under this CLAUSE (d) shall not at any time exceed $50,000);

          (e) Indebtedness of the Borrowers and their respective Subsidiaries
     (i) in respect of industrial revenue bonds or other similar governmental or
     municipal bonds, (ii) evidencing the deferred purchase price of newly
     acquired property or incurred to finance the acquisition, construction or
     improvement of any fixed or capital assets of such Borrower and its
     Subsidiaries (pursuant to purchase money mortgages or otherwise, whether
     owed to the seller or a third party) used in the ordinary course of
     business of such Borrower and its Subsidiaries (PROVIDED, that such
     Indebtedness is incurred within 60 days of the acquisition or the
     completion of such construction or improvement of such property) and (iii)
     Capitalized Lease Liabilities; PROVIDED, that the aggregate amount of all
     Indebtedness outstanding pursuant to this clause shall not at any time
     exceed $2,000,000;

          (f) Indebtedness of any Subsidiary owing to either Borrower or any
     other Subsidiary, which Indebtedness

                    (i) shall, if payable to either Borrower or a Domestic
               Subsidiary and evidenced by one or more Intercompany Notes, be
               delivered in pledge to the Administrative Agent pursuant to the
               Security and Pledge Agreement, and whether or not evidenced by a
               note, shall not be forgiven or otherwise discharged for any
               consideration other than payment in full or in part in cash
               (PROVIDED, that

                                     -108-
<PAGE>

               only the amount repaid in part shall be discharged); and

                    (ii) if incurred by a Subsidiary owing to either Borrower or
               a Subsidiary Guarantor, shall not (when aggregated with the
               amount of Investments made by the Borrowers and the Subsidiary
               Guarantors in Foreign Subsidiaries under CLAUSE (e)(i) of SECTION
               7.2.5), exceed $1,000,000;

          (g) unsecured Indebtedness (not evidenced by a note or other
     instrument) of either Borrower owing to a Subsidiary that has previously
     executed and delivered to the Agents the Interco Subordination Agreement
     (or a supplement thereto);

          (h) unsecured Subordinated Debt of Holdings and the Borrowers
     evidenced by the Subordinated Notes incurred pursuant to the terms of
     the Sub Debt Documents in a principal amount not to exceed $150,000,000,
     and unsecured Contingent Liabilities of the Subsidiary Guarantors in
     respect of such Subordinated Debt, but only if such Contingent
     Liabilities are subordinated to the Obligations on substantially the
     same terms as such Subordinated Debt of Holdings and the Borrowers is
     subordinated to the Obligations;

          (i) Indebtedness of a Person existing at the time such Person became a
     Subsidiary of either Borrower in an aggregate amount of all such Persons
     not to exceed $5,000,000, but only to the extent that such Indebtedness was
     not created or incurred in contemplation of such Person becoming a
     Subsidiary;

          (j) Indebtedness under Hedging Obligations entered into in the
     ordinary course of business to limit risks of currency or interest rate
     fluctuations and not for speculative purposes;

          (k) the endorsement of negotiable instruments for deposit or
     collection or similar transactions in the ordinary course of business;

          (l) Indebtedness consisting of guaranties of loans made to officers,
     directors or employees of Holdings or any of its Subsidiaries in an
     aggregate outstanding amount, when taken together with the loans

                                     -109-
<PAGE>

     referred to in CLAUSE (f)(iv)(B) of SECTION 7.2.5, not to exceed
     $7,500,000;

          (m) Indebtedness which refinances Indebtedness permitted by CLAUSES
     (c), (h) and (i) above; PROVIDED, HOWEVER, that after giving effect to such
     refinancing, (i) the principal amount of outstanding Indebtedness is not
     increased, (ii) neither the tenor nor the average life thereof is reduced,
     (iii) the respective obligor or obligors shall be the same on the
     refinancing Indebtedness as on the Indebtedness being refinanced, (iv) the
     security, if any, for the refinancing Indebtedness shall be the same as
     that for the Indebtedness being refinanced (except to the extent that less
     security is granted to holders of refinancing Indebtedness), (v) the
     holders of refinancing Indebtedness are not afforded covenants, defaults,
     rights or remedies more burdensome to the obligor or obligors than those
     contained in the Indebtedness being refinanced and (vi) the refinancing
     Indebtedness is subordinated to the same degree, if any, as the
     Indebtedness being refinanced;

          (n) Contingent Liabilities of Holdings and the Borrowers in respect of
     Indebtedness consisting of guaranties made by Holdings and the Borrowers in
     respect of Indebtedness of the Subsidiary Guarantors of the type permitted
     and described in CLAUSE (d)(i) above, in an aggregate amount not to exceed
     at any time outstanding $1,500,000; and

          (o) other Indebtedness of the Borrowers and their respective
     Subsidiaries (other than Indebtedness of Foreign Subsidiaries owing to
     either Borrower or any of its Domestic Subsidiaries) in an aggregate amount
     at any time outstanding not to exceed $1,000,000.

PROVIDED, HOWEVER, that no Indebtedness otherwise permitted by CLAUSES (f)(ii),
(h), (i) or (m) shall be assumed or otherwise incurred if a Specified Default
has occurred and is then continuing or would result therefrom.

     SECTION 7.2.3. LIENS. Holdings and each Borrower will not, and will not
permit any of their respective Subsidiaries to, create, incur, assume or permit
to exist any Lien upon any of its property (including Capital Securities of any
Person), revenues or assets, whether now owned or hereafter acquired, except:

                                     -110-
<PAGE>

          (a) Liens securing payment of the monetary Obligations;

          (b) until the Closing Date, Liens securing payment of Indebtedness of
     the type described in CLAUSE (b) of SECTION 7.2.2;

          (c) Liens existing as of the Effective Date and disclosed in ITEM
     7.2.3(c) of the Disclosure Schedule securing Indebtedness described in
     CLAUSE (c) of SECTION 7.2.2, and any refinancing, refunding, renewal or
     extension of such Indebtedness; PROVIDED, that no such Lien shall encumber
     any additional property and the amount of Indebtedness secured by such Lien
     is not increased from that existing on the Effective Date (as such
     Indebtedness may have been permanently reduced subsequent to the Effective
     Date);

          (d) Liens securing Indebtedness of the type permitted under CLAUSE (e)
     of SECTION 7.2.2; PROVIDED, that (i) such Lien is granted within 90 days
     after such Indebtedness is incurred, (ii) the Indebtedness secured thereby
     does not exceed 80% of the cost of the applicable property, improvements or
     equipment at the time of such acquisition (or construction) and (iii) such
     Lien secures only the assets that are the subject of the Indebtedness
     referred to in such clause;

          (e) Liens securing Indebtedness permitted by CLAUSE (i) of SECTION
     7.2.2; PROVIDED, that such Liens existed prior to such Person becoming a
     Subsidiary, were not created in anticipation thereof and attach only to
     specific tangible assets of such Person (and not assets of such Person
     generally);

          (f) Liens in favor of carriers, warehousemen, mechanics, materialmen
     and landlords granted in the ordinary course of business for amounts not
     overdue or being diligently contested in good faith by appropriate
     proceedings and for which adequate reserves in accordance with GAAP shall
     have been set aside on its books;

          (g) Liens incurred or deposits made in the ordinary course of business
     in connection with worker's compensation, unemployment insurance or other
     forms of governmental insurance or benefits, or to secure performance of
     tenders, statutory obligations, bids, leases or other similar obligations
     (other than for borrowed money) entered into in the ordinary course of

                                     -111-
<PAGE>

     business or to secure obligations on surety and appeal bonds or performance
     bonds;

          (h) judgment Liens in existence for less than 45 days after the entry
     thereof or with respect to which execution has been stayed or the payment
     of which is covered in full (subject to a customary deductible) by
     insurance maintained with responsible insurance companies and which do not
     otherwise result in an Event of Default under SECTION 8.1.6;

          (i) easements, rights-of-way, zoning restrictions, minor defects or
     irregularities in title and other similar encumbrances not interfering in
     any material respect with the value or use of the property to which such
     Lien is attached;

          (j) Liens for taxes, assessments or other governmental charges or
     levies not at the time delinquent or thereafter payable without penalty or
     being contested in good faith by appropriate proceedings and for which
     adequate reserves in accordance with GAAP shall have been set aside on its
     books;

          (k) Liens (including financing statements that are filed as a
     precautionary measure and undertakings to file such financing statements)
     provided for in equipment leases under which either Borrower or any of
     their respective Subsidiaries is the lessee; provided that any such Lien in
     respect of any equipment lease is limited to the equipment being leased
     under such lease and the proceeds thereof;

          (l) leases, subleases, licenses and sublicenses granted to third
     parties in the ordinary course of business, in each case not interfering in
     any respect with the operations or business of any Borrower or any of its
     Subsidiaries or the Liens of the Administrative Agent or the Lenders
     granted by the Loan Documents;

          (m) banker's liens and rights of offset of the holders of Indebtedness
     of the Borrowers or their respective Subsidiaries on monies deposited by
     either Borrower or any such Subsidiary with such holders of Indebtedness in
     the ordinary course of business of either Borrower or any such Subsidiary;
     and

          (n) other Liens that do not, individually or in the aggregate, attach
     to a material portion of the

                                     -112-
<PAGE>

     assets of the Borrowers or any Subsidiary or the Capital Securities of
     either Borrower or any of their respective Subsidiaries and do not secure
     obligations in an aggregate amount in excess of $2,000,000.

     SECTION 7.2.4. FINANCIAL CONDITION AND OPERATIONS. Holdings and each
Borrower will not permit to occur any of the events set forth below.

          (a) Holdings and each Borrower will not permit the Leverage Ratio
     as of the last day of any Fiscal Quarter occurring during any period set
     forth below to be greater than the ratio set forth opposite such period:

<TABLE>
<CAPTION>
                 Period                               Leverage Ratio
                 ------                               --------------
<S>                                                   <C>
            Effective Date to                            6.35:1.0
                09/30/00

          10/01/00 to 09/30/01                           5.85:1.0

          10/01/01 to 09/30/02                           5.35:1.0

          10/01/02 to 09/30/03                           4.75:1.0

              10/01/03 and                               4.00:1.0.
               thereafter
</TABLE>

          (b) Holdings and each Borrower will not permit the Fixed Charge
     Coverage Ratio as of the last day of any Fiscal Quarter occurring during
     any period set forth below to be less than the ratio set forth opposite
     such period:

<TABLE>
<CAPTION>
                                                       Fixed Charge
                 Period                               Coverage Ratio
                 ------                               --------------
<S>                                                   <C>
            Effective Date to                            1.05:1.0
                06/30/01

          07/01/01 to 06/30/02                           1.10:1.0

          07/01/02 to 12/31/03                           1.25:1.0

              01/01/04 and                               1.50:1.0.
               thereafter
</TABLE>

     SECTION 7.2.5. INVESTMENTS. Holdings and each Borrower will not, and will
not permit any of their respective Subsidiaries to, purchase, make, incur,
assume or permit to exist any Investment in any other Person, except:

                                     -113-
<PAGE>

          (a) Investments existing on the Effective Date and identified in ITEM
     7.2.5(a) of the Disclosure Schedule;

          (b) Cash Equivalent Investments;

          (c) Investments received in connection with the bankruptcy or
     reorganization of, or settlement of delinquent accounts and disputes with,
     customers and suppliers, in each case in the ordinary course of business;

          (d) Investments made by the Borrowers and their respective
     Subsidiaries that are permitted as Capital Expenditures pursuant to SECTION
     7.2.7;

          (e) Investments by way of contributions to capital or purchases of
     Capital Securities (i) by either Borrower in any Subsidiaries or by any
     Subsidiary in other Subsidiaries; PROVIDED, that the aggregate amount of
     intercompany loans made pursuant to CLAUSE (f)(ii) of SECTION 7.2.2 and
     Investments under this clause made by the Borrowers and Subsidiary
     Guarantors in Subsidiaries that are not Subsidiary Guarantors shall not
     exceed $1,000,000 at any time, or (ii) by any Subsidiary in either
     Borrower;

          (f) Investments made by the Borrowers and their respective
     Subsidiaries that constitute (i) accounts receivable arising, (ii) trade
     debt granted, or (iii) deposits made in connection with the purchase price
     of goods or services, in each case in the ordinary course of business or
     (iv) loans to officers, directors or employees of Holdings or any of its
     Subsidiaries (a) to finance the acquisition of Capital Securities (or
     securities linked to such securities) of Holdings so long as Holdings makes
     a capital contribution of such proceeds to the Borrowers, or (b) in the
     ordinary course of business for items such as travel, entertainment and
     relocation expenses in an aggregate outstanding principal amount, when
     taken together with the amount of guaranties referred to in CLAUSE (l) of
     SECTION 7.2.2, not exceeding $7,500,000;

          (g) Investments made by the Borrowers and their respective
     Subsidiaries constituting Permitted Acquisitions in an aggregate amount not
     to exceed $5,000,000 over the term of this Agreement; PROVIDED, that (i) if
     any such Investment shall result in the acquisition of a wholly owned
     Subsidiary, and (ii) upon

                                     -114-
<PAGE>

     making such Investment, the provisions of SECTION 7.1.8 are complied with;

          (h) Investments consisting of any deferred portion of the sales price
     received by either Borrower or any Subsidiary in connection with any
     Disposition permitted under SECTION 7.2.11; and

          (i) other Investments made by the Borrowers and their respective
     Subsidiaries in an amount not to exceed $1,000,000 over the term of this
     Agreement;

PROVIDED, HOWEVER, that

          (j) any Investment which when made complies with the requirements of
     CLAUSES (a), (b) or (c) of the definition of the term "Cash Equivalent
     Investment" may continue to be held notwithstanding that such Investment if
     made thereafter would not comply with such requirements; and

          (k) no Investment otherwise permitted by CLAUSE (g) shall be permitted
     to be made if any Specified Default has occurred and is continuing or would
     result therefrom.

     SECTION 7.2.6. RESTRICTED PAYMENTS, ETC. Holdings and each Borrower will
not, and will not permit any of their respective Subsidiaries to, declare or
make a Restricted Payment, or make any deposit for any Restricted Payment, other
than

          (a) Restricted Payments made by Subsidiaries to the Borrowers or
     wholly owned Subsidiaries of either Borrower;

          (b) Restricted Payments made by the Borrowers and the Subsidiaries, as
     applicable, to Holdings in accordance with the Tax Sharing Agreement, but
     in aggregate amounts no greater than, and limited to the amount necessary
     to enable Holdings to make payments in cash in respect of the aggregate
     federal income tax liability then due of the "affiliated group" (within the
     meaning of Section 1504(a)(1) of the Code) of which Holdings is the common
     parent corporation; PROVIDED, HOWEVER, that any payment required to be made
     by any Borrower or Subsidiary to Holdings in accordance with the Tax
     Sharing Agreement that otherwise would be prohibited pursuant to the
     preceding limitation may be paid directly to another Borrower or
     Subsidiary, as

                                     -115-
<PAGE>

     applicable, to the extent that Holdings would have been required to make a
     payment to such other Borrower or Subsidiary in accordance with the Tax
     Sharing Agreement.

          (c) Restricted Payments made by the Borrowers to Holdings solely to
     the extent necessary to enable Holdings to pay Management Fees in an
     aggregate amount of up to $1,000,000 in any Fiscal Year thereafter;

          (d) Restricted Payments made by the Borrowers to Holdings solely to
     the extent necessary to enable Holdings to pay for general administrative
     and operating expenses of Holdings;

          (e) Restricted Payments made by the Borrowers to Holdings solely to
     the extent necessary to enable Holdings to repurchase, redeem or otherwise
     acquire or retire for value any Capital Securities of Holdings, or any
     warrant, option or other right to acquire Capital Securities of Holdings,
     held by any member of management or employee of Holdings or any of its
     Subsidiaries pursuant to any management equity subscription agreement or
     stock option agreement as a result of the cessation of the employment such
     Person (by death, disability or otherwise) in an aggregate amount of up to
     $1,000,000 in the 1999 Fiscal Year and $5,000,000 in each Fiscal Year
     thereafter;

          (f) (i) Restricted Payments made by the Borrowers to Holdings
     (including Restricted Payments made by WRC on the WRC Mirror PIK Preferred
     Equity) on or subsequent to the fifth anniversary of the Closing Date
     solely to the extent necessary to enable Holdings to make scheduled
     payments of dividends on the PIK Preferred Equity and Holdings does in fact
     make such scheduled payments thereon and (ii) Restricted Payments made by
     JLC and WRC on or subsequent to the fifth anniversary of the Closing Date
     to make scheduled payments of dividends on the JLC PIK Preferred Equity and
     the WRC PIK Preferred Equity (other than any such Capital Securities held
     by Holdings), respectively; PROVIDED, that such Restricted Payments may
     only occur so long as, in each case, the conditions set forth in the
     proviso to this Section are satisfied and at the time of such payments and
     after giving effect to the making of each such Restricted Payment, the
     Leverage Ratio for the most recently ended Fiscal Quarter for which a
     Compliance Certificate was delivered by Holdings to the Agents pursuant to
     CLAUSE (c) of

                                     -116-
<PAGE>

     SECTION 7.1.1 as calculated on a PRO FORMA basis shall be less than
     3.00:1.0; and

          (g) following the making of any mandatory prepayment required under
     CLAUSE (h) of SECTION 3.1.1 in respect of Net Equity Proceeds, (i)
     Restricted Payments made by the Borrowers to Holdings solely to the extent
     necessary to enable Holdings to redeem shares of the PIK Preferred Equity
     (other than any such Capital Securities held by Holdings or WRC) or (ii)
     Restricted Payments made by JLC and WRC to redeem shares of the JLC PIK
     Preferred Equity and the WRC PIK Preferred Equity (other than any such
     Capital Securities held by Holdings), respectively, in each case, using
     such Net Equity Proceeds remaining following such mandatory prepayment in
     an amount not to exceed the excess of (x) the amount of Net Equity Proceeds
     remaining from such mandatory prepayment over (y) the amount of any such
     Net Equity Proceeds used to redeem any Subordinated Notes pursuant to
     SECTION 7.2.8; PROVIDED, that such Restricted Payments may only occur so
     long as the conditions set forth in the proviso to this Section are
     satisfied and at the time of such payments and after giving effect to the
     making of each such Restricted Payment, the Leverage Ratio for the most
     recently ended Fiscal Quarter for which a Compliance Certificate was
     delivered by Holdings to the Agents pursuant to CLAUSE (c) of SECTION 7.1.1
     as calculated on a PRO FORMA basis shall be less than 4.25:1.0;

PROVIDED, HOWEVER, that no Restricted Payments under CLAUSE (c), (e), (f) or (g)
may be made if (a) any Specified Default shall have occurred and be continuing
on the date such Restricted Payment is declared or made, or a Specified Default
would result from the making of any such Restricted Payment and (b) after giving
effect to the making of each such Restricted Payment, the Borrower would not be
in PRO FORMA compliance with the covenants set forth in SECTION 7.2.4 for the
most recently ended Fiscal Quarter for which a Compliance Certificate was
delivered by Holdings to the Agents pursuant to CLAUSE (c) of SECTION 7.2.2;

     SECTION 7.2.7. CAPITAL EXPENDITURES, ETC. Subject (in the case of
Capitalized Lease Liabilities), to CLAUSE (e) of SECTION 7.2.2, Holdings and
each Borrower will not, and will not permit any of their respective Subsidiaries
to, make or commit to make Capital Expenditures other than Capital Expenditures
made or committed to be made by the Borrowers and their respective Subsidiaries
in any Fiscal Year (or, in

                                     -117-
<PAGE>

the case of the 1999 Fiscal Year, during the period from and including the
Closing Date through the end of such Fiscal Year) which in the aggregate do not
exceed the amount set forth below opposite such Fiscal Year:

<TABLE>
<CAPTION>
                                                     Capital
                 Fiscal Year                    Expenditure Amount
                 -----------                    ------------------
                <S>                             <C>
                    1999                             $2,000,000

                    2000                            $13,000,000

                    2001                            $15,000,000

                    2002                            $17,000,000

                    2003                           $18,000,000;

                2004 and each                       $20,000,000
                 Fiscal Year
                 thereafter
</TABLE>

PROVIDED, HOWEVER, that (i) to the extent the amount of Capital Expenditures
permitted to be made in any Fiscal Year pursuant to this Section without giving
effect to this proviso (the "BASE AMOUNT") exceeds the aggregate amount of
Capital Expenditures actually made during such Fiscal Year, such excess amount
may be carried forward to (but only to) the next succeeding Fiscal Year (any
such amount to be certified by Holdings to the Administrative Agent in the
Compliance Certificate delivered for the last Fiscal Quarter of such Fiscal
Year, and any such amount carried forward to a succeeding Fiscal Year shall be
deemed to be used prior to Holdings and its Subsidiaries using the Base Amount
for such succeeding Fiscal Year, without giving effect to such carryforward).

     SECTION 7.2.8. NO PREPAYMENT OF SUBORDINATED DEBT. Holdings and each
Borrower will not, and will not permit any of their respective Subsidiaries to,

          (a)make any payment or prepayment of principal of, or premium or
     interest on, any Subordinated Debt (i) other than payments of interest on
     the stated, scheduled date for payment of interest set forth in the
     applicable Sub Debt Documents or (ii) which would violate the terms of this
     Agreement or the applicable Sub Debt Documents;

          (b) redeem, retire, purchase, defease or otherwise acquire any
     Subordinated Debt (including, in

                                     -118-
<PAGE>

     the case of each Borrower and each of their respective Subsidiaries, by way
     of issuing notes evidencing Subordinated Debt in exchange for Subordinated
     Notes of Holdings); PROVIDED, HOWEVER, that following the making of any
     mandatory prepayment required under CLAUSE (h) of SECTION 3.1.1 in respect
     of Net Equity Proceeds and so long as no Specified Default shall have
     occurred and be continuing on the date such redemption, retirement,
     purchase, defeasance or other acquisition is declared or made, or a
     Specified Default would result from the consummation thereof, Holdings and
     the Borrowers may redeem, retire, purchase, defease or otherwise acquire up
     to 35% of the Subordinated Notes using such Net Equity Proceeds remaining
     following such mandatory prepayment in an amount not to exceed the excess
     of (x) the amount Net Equity Proceeds remaining from such mandatory
     prepayment over (y) the amount of any such Net Equity Proceeds used to
     redeem any PIK Preferred Equity and cancel the warrants issued in
     connection therewith pursuant to CLAUSE (g) of SECTION 7.2.6; or

          (c) make any deposit (including the payment of amounts into a sinking
     fund or other similar fund) for any of the foregoing purposes;

     SECTION 7.2.9. CAPITAL SECURITIES. Holdings will not permit either
Borrower, and each Borrower will not, and will not permit any of their
respective Subsidiaries to,

          (i) issue any Capital Securities (whether for value or otherwise) to
     any Person other than (in the case of Subsidiaries) either Borrower or
     another wholly owned Subsidiary thereof or

          (ii) become liable in respect of any obligation (contingent or
     otherwise) to purchase, redeem, retire, acquire or make any other payment
     in respect of any Capital Securities of Holdings, either Borrower or any
     Subsidiary or any option, warrant or other right to acquire any such
     Capital Securities,

in each case, other than (A) in connection with any Permitted Equity Exchange of
the types described in clauses (i), (ii), (iii), (v)(A) or (vi) of the
definition thereof (PROVIDED, HOWEVER, (1) in the case of such clauses (ii) and
(v)(A), Holdings makes capital contributions of all of the Capital Securities
received by it in connection with each such exchange to WRC and WRC
contemporaneously with the receipt thereof pledges and delivers such Capital
Securities to the Administrative Agent, together with stocks powers

                                     -119-
<PAGE>

duly executed in blank, all in accordance with the terms of the Security and
Pledge Agreement and (2) in the case of such clause (vi), Holdings
contemporaneously with the receipt of Capital Securities of WRC and/or JLC in
connection with such Permitted Equity Exchange pledges and delivers such Capital
Securities to the Administrative Agent, together with stocks powers duly
executed in blank, all in accordance with the terms of the Security and Pledge
Agreement) and (B) the issuance by Holdings or WRC of common stock in connection
with a Public Offering. Notwithstanding anything to the contrary herein, the
aggregate liquidation preference of all shares of Capital Securities (excluding
any common equity and the WRC Mirror PIK Preferred but including the PIK
Preferred Equity, the WRC PIK Preferred Equity, if any, and the JLC PIK
Preferred Equity, if any) held by persons other than Holdings or any of its
Subsidiaries shall not exceed the sum of (x) $75,000,000, (y) any accrued but
unpaid dividends on the PIK Preferred Equity and (z) the aggregate liquidation
preference of additional PIK Preferred Equity issued in lieu of cash dividends
on the PIK Preferred Equity.

     SECTION 7.2.10. CONSOLIDATION, MERGER, ETC. Holdings and each Borrower will
not, and will not permit any of their respective Subsidiaries to, liquidate or
dissolve, consolidate with, or merge into or with, any other Person, or purchase
or otherwise acquire all or substantially all of the assets of any Person (or
any division thereof), except

          (a) any Subsidiary may liquidate or dissolve voluntarily into, and may
     merge with and into, either Borrower or any other Subsidiary (PROVIDED,
     HOWEVER, that a Subsidiary Guarantor may only liquidate or dissolve into,
     or merge with and into, either Borrower or another Subsidiary Guarantor),
     and the assets or Capital Securities of any Subsidiary may be purchased or
     otherwise acquired by either Borrower or any other Subsidiary (PROVIDED,
     HOWEVER, that the assets or Capital Securities of any Subsidiary Guarantor
     may only be purchased or otherwise acquired by either Borrower or another
     Subsidiary Guarantor); PROVIDED, FURTHER, that in no event shall any
     Pledged Subsidiary consolidate with or merge with and into any Subsidiary
     other than another Pledged Subsidiary unless after giving effect thereto,
     the Administrative Agent shall have a perfected pledge of, and security
     interest in and to, at least the same percentage of the issued and
     outstanding interests of Capital Securities (on a fully diluted basis) of
     the surviving Person as the Administrative Agent had immediately prior to
     such merger or consolidation in form and substance

                                     -120-
<PAGE>

     satisfactory to the Administrative Agent and its counsel, pursuant to such
     documentation and opinions as shall be necessary in the opinion of the
     Administrative Agent to create, perfect or maintain the collateral position
     of the Secured Parties therein;

          (b) a Borrower may merge with or into the other Borrower;

          (c) so long as no Specified Default has occurred and is continuing or
     would occur after giving effect thereto, either Borrower or any of its
     Subsidiaries may (to the extent permitted by CLAUSE (g) of SECTION 7.2.5)
     purchase all or substantially all of the assets or Capital Securities of
     any Person (or any division thereof), or acquire such Person by merger (it
     being understood that the foregoing shall not prohibit consummation of any
     transaction committed to in a definitive agreement that was entered into
     prior to the occurrence of any such Specified Default); and

          (d) any transaction permitted under SECTION 11.12.

     SECTION 7.2.11. PERMITTED DISPOSITIONS. Holdings and each Borrower will
not, and will not permit any of their respective Subsidiaries to, Dispose of
Holdings', any of such Borrower's or such Subsidiaries' assets (including
accounts receivable and Capital Securities of Subsidiaries) to any Person in one
transaction or series of transactions unless such Disposition is a Permitted
Asset Disposition or is permitted under SECTION 11.12.

     SECTION 7.2.12. MODIFICATION OF CERTAIN AGREEMENTS. Holdings and each
Borrower will not, and will not permit any of their respective Subsidiaries to,
consent to any amendment, supplement, waiver or other modification of, or enter
into any forbearance from exercising any rights with respect to the terms or
provisions contained in,

          (a) the Sub Debt Documents, other than any amendment, supplement,
     waiver or modification for which no (or only a nominal) fee is payable to
     the holders of the Subordinated Debt and which (i) extends the date or
     reduces the amount of any required repayment, prepayment or redemption of
     the principal of such Subordinated Debt, (ii) reduces the rate or extends
     the date for payment of the interest, premium (if any) or fees payable on
     such Subordinated Debt or (iii) makes the covenants, events of default or
     remedies in such Sub Debt Documents less restrictive on such Borrower; or

                                     -121-
<PAGE>

          (b)any of the Transaction Documents.

     SECTION 7.2.13. TRANSACTIONS WITH AFFILIATES. Except (a) as permitted under
CLAUSE (d), (e) or (f)(iv) of SECTION 7.2.5, SECTION 7.2.6, or CLAUSE (a) or (b)
of SECTION 7.2.10, (b) payments made by Holdings, the Borrowers and their
respective Subsidiaries in accordance with the Tax Sharing Agreement and (c) for
Permitted Asset Dispositions of the type described in clause (g) of the
definition thereof, Holdings and each Borrower will not, and will not permit any
of their respective Subsidiaries to, enter into or cause or permit to exist any
arrangement, transaction or contract (including for the purchase, lease or
exchange of property or the rendering of services) with any of its other
Affiliates, unless such arrangement, transaction or contract (i) is on fair and
reasonable terms no less favorable to such Borrower or such Subsidiary than it
could obtain in an arm's-length transaction with a Person that is not an
Affiliate and (ii) is of the kind which would be entered into by a prudent
Person in the position of such Borrower or such Subsidiary with a Person that is
not one of its Affiliates.

     SECTION 7.2.14. RESTRICTIVE AGREEMENTS, ETC. Holdings and each Borrower
will not, and will not permit any of their respective Subsidiaries to, enter
into any agreement prohibiting

          (a) the creation or assumption of any Lien upon its properties,
     revenues or assets, whether now owned or hereafter acquired;

          (b) the ability of any Obligor to amend or otherwise modify any Loan
     Document; or

          (c) the ability of any Subsidiary to make any payments, directly or
     indirectly, to either Borrower, including by way of dividends, advances,
     repayments of loans, reimbursements of management and other intercompany
     charges, expenses and accruals or other returns on investments.

The foregoing prohibitions shall not apply to restrictions contained (i) in any
Loan Document, (ii) in the case of CLAUSE (a), any agreement governing any
Indebtedness permitted by CLAUSE (e) of SECTION 7.2.2 as to the assets financed
with the proceeds of such Indebtedness, or (iii) in the case of CLAUSES (a) and
(c), any agreement of a Foreign Subsidiary governing the Indebtedness permitted
by CLAUSE (f)(ii) of SECTION 7.2.2.

                                     -122-
<PAGE>

     SECTION 7.2.15. SALE AND LEASEBACK. Holdings and each Borrower will not,
and will not permit any of their respective Subsidiaries to, directly or
indirectly enter into any agreement or arrangement providing for the sale or
transfer by it of any property (now owned or hereafter acquired) to a Person and
the subsequent lease or rental of such property or other similar property from
such Person.

     SECTION 7.2.16. DESIGNATION OF SENIOR DEBT. None of Holdings or either
Borrower will permit any Indebtedness (other than the Indebtedness incurred
hereunder or under any other Loan Document) to constitute "Designated Senior
Debt" (or any other similar term) under the Subordinated Debt Documents, without
the consent of the Required Lenders.

                                  ARTICLE VIII
                                EVENTS OF DEFAULT

     SECTION 8.1. LISTING OF EVENTS OF DEFAULT. Each of the following events or
occurrences described in this Article shall constitute an "EVENT OF DEFAULT".

     SECTION 8.1.1. NON-PAYMENT OF OBLIGATIONS. Either Borrower shall default in
the payment or prepayment when due of

          (a) any principal of any Loan, or any Reimbursement Obligation or any
     deposit of cash for collateral purposes pursuant to SECTION 2.6.4; or

          (b) interest on any Loan or Reimbursement Obligation, any fee
     described in ARTICLE III or any other monetary Obligation, and such default
     shall continue unremedied for a period of five Business Days after such
     amount was due.

     SECTION 8.1.2. BREACH OF WARRANTY. Any representation or warranty of any
Obligor made or deemed to be made in any Loan Document (including any
certificates delivered pursuant to ARTICLE V) is or shall be incorrect when made
or deemed to have been made in any material respect.

     SECTION 8.1.3. NON-PERFORMANCE OF CERTAIN COVENANTS AND OBLIGATIONS.
Holdings or either Borrower shall default in the due performance or observance
of any of its obligations under SECTION 7.1.1, 7.1.7, 7.1.10 or 7.2.

     SECTION 8.1.4. NON-PERFORMANCE OF OTHER COVENANTS AND OBLIGATIONS. Any
Obligor shall default in the due

                                     -123-
<PAGE>

performance and observance of any other agreement contained in any Loan Document
executed by it, and such default shall continue unremedied for a period of 30
days after notice thereof shall have been given to the Borrowers by either
Agent.

     SECTION 8.1.5. DEFAULT ON OTHER INDEBTEDNESS. A default shall occur in the
payment of any amount when due (subject to any applicable grace period), whether
by acceleration or otherwise, of any principal or stated amount of, or interest
or fees on, any Indebtedness (other than Indebtedness described in SECTION
8.1.1) of Holdings, either Borrower or any of their respective Subsidiaries or
any other Obligor having a principal or stated amount, individually or in the
aggregate, in excess of $5,000,000, or a default shall occur in the performance
or observance of any obligation or condition with respect to such Indebtedness
if the effect of such default is to accelerate the maturity of any such
Indebtedness or such default shall continue unremedied for any applicable period
of time sufficient to permit the holder or holders of such Indebtedness, or any
trustee or agent for such holders, to cause or declare such Indebtedness to
become due and payable or to require such Indebtedness to be prepaid, redeemed,
purchased or defeased, or require an offer to purchase or defease such
Indebtedness to be made, prior to its expressed maturity.

     SECTION 8.1.6. JUDGMENTS. Any judgment or order for the payment of money
individually or in the aggregate in excess of $5,000,000 (exclusive of any
amounts fully covered by insurance (less any applicable deductible) and as to
which the insurer has acknowledged its responsibility to cover such judgment or
order) shall be rendered against Holdings, either Borrower or any of their
respective Subsidiaries or any other Obligor and such judgment shall not have
been vacated or discharged or stayed or bonded pending appeal within 30 days
after the entry thereof or enforcement proceedings shall have been commenced by
any creditor upon such judgment or order.

     SECTION 8.1.7. PENSION PLANS. Any of the following events shall occur with
respect to any Pension Plan

          (a) the institution of any steps by either Borrower, any member of its
     Controlled Group or any other Person to terminate a Pension Plan if, as a
     result of such termination, such Borrower or any such member could be
     required to make a contribution to such Pension Plan, or could reasonably
     expect to incur a

                                     -124-
<PAGE>

     liability or obligation to such Pension Plan, in excess of $1,000,000; or

          (b) a contribution failure occurs with respect to any Pension Plan
     sufficient to give rise to a Lien under section 302(f) of ERISA.

     SECTION 8.1.8. CHANGE IN CONTROL. Any Change in Control shall occur.

     SECTION 8.1.9. BANKRUPTCY, INSOLVENCY, ETC. Holdings, either Borrower, any
of their respective Subsidiaries or any other Obligor shall

          (a) become insolvent or generally fail to pay, or admit in writing its
     inability or unwillingness generally to pay, debts as they become due;

          (b) apply for, consent to, or acquiesce in the appointment of a
     trustee, receiver, sequestrator or other custodian for any substantial part
     of the property of any thereof, or make a general assignment for the
     benefit of creditors;

          (c) in the absence of such application, consent or acquiescence,
     permit or suffer to exist the appointment of a trustee, receiver,
     sequestrator or other custodian for a substantial part of the property of
     any thereof, and such trustee, receiver, sequestrator or other custodian
     shall not be discharged within 60 days; PROVIDED, that Holdings, each
     Borrower, each Subsidiary and each other Obligor hereby expressly
     authorizes each Secured Party to appear in any court conducting any
     relevant proceeding during such 60-day period to preserve, protect and
     defend their rights under the Loan Documents;

          (d) permit or suffer to exist the commencement of any bankruptcy,
     reorganization, debt arrangement or other case or proceeding under any
     bankruptcy or insolvency law or any dissolution, winding up or liquidation
     proceeding, in respect thereof, and, if any such case or proceeding is not
     commenced by Holdings, either Borrower, any Subsidiary or any Obligor, such
     case or proceeding shall be consented to or acquiesced in by Holdings, such
     Borrower, such Subsidiary or such Obligor, as the case may be, or shall
     result in the entry of an order for relief or shall remain for 60 days
     undismissed; PROVIDED, that Holdings, each Borrower, each Subsidiary and
     each Obligor hereby

                                     -125-
<PAGE>

     expressly authorizes each Secured Party to appear in any court conducting
     any such case or proceeding during such 60-day period to preserve, protect
     and defend their rights under the Loan Documents; or

          (e) take any action authorizing, or in furtherance of, any of the
     foregoing.

     SECTION 8.1.10. IMPAIRMENT OF SECURITY, ETC. Any Loan Document or any Lien
granted thereunder shall (except in accordance with its terms), in whole or in
part, terminate, cease to be effective or cease to be the legally valid, binding
and enforceable obligation of any Obligor party thereto; any Obligor shall,
directly or indirectly, contest in any manner such effectiveness, validity,
binding nature or enforceability; or, except as permitted under any Loan
Document, any Lien securing any Obligation shall, in whole or in part, cease to
be a perfected first priority Lien (subject only to Liens permitted by SECTION
7.2.3).

     SECTION 8.1.11. FAILURE OF SUBORDINATION. Unless otherwise waived or
consented to by the Agents, each Lender and the Issuers in writing, the
subordination provisions relating to any Subordinated Debt (the "SUBORDINATION
PROVISIONS") shall fail to be enforceable by the Agents, the Lenders and the
Issuers in accordance with the terms thereof, or the monetary Obligations shall
fail to constitute "Senior Debt" (or similar term) referring to the Obligations;
or Holdings, either Borrower or any of their respective Subsidiaries shall,
directly or indirectly, disavow or contest in any manner (i) the effectiveness,
validity or enforceability of any of the Subordination Provisions, (ii) that the
Subordination Provisions exist for the benefit of the Agents, the Lenders and
the Issuers or (iii) that all payments of principal of or premium and interest
on the Subordinated Debt, or realized from the liquidation of any property of
any Obligor, shall be subject to any of such Subordination Provisions.

     SECTION 8.2. ACTION IF BANKRUPTCY. If any Event of Default described in
CLAUSES (a) through (d) of SECTION 8.1.9 shall occur, the Commitments (if not
theretofore terminated) shall automatically terminate and the outstanding
principal amount of all outstanding Loans and all other monetary Obligations
(including Reimbursement Obligations) shall automatically be and become
immediately due and payable jointly and

                                     -126-
<PAGE>

severally by the Borrowers, without notice or demand to any Person and each
Borrower shall automatically and immediately be obligated jointly and severally
to Cash Collateralize all Letter of Credit Outstandings.

     SECTION 8.3. ACTION IF OTHER EVENT OF DEFAULT. If any Event of Default
(other than any Event of Default described in CLAUSES (a) through (d) of SECTION
8.1.9) shall occur for any reason, whether voluntary or involuntary, and be
continuing, the Administrative Agent, upon the direction of the Required
Lenders, shall by notice to the Borrowers declare all or any portion of the
outstanding principal amount of the Loans and other monetary Obligations
(including Reimbursement Obligations) to be due and payable jointly and
severally by the Borrowers and/or the Commitments (if not theretofore
terminated) to be terminated, whereupon the full unpaid amount of such Loans and
other monetary Obligations which shall be so declared due and payable shall be
and become immediately due and payable, without further notice, demand or
presentment, and/or, as the case may be, the Commitments shall terminate and the
Borrowers shall automatically and immediately be obligated jointly and severally
to Cash Collateralize all Letter of Credit Outstandings.

                                   ARTICLE IX
                            THE ADMINISTRATIVE AGENT

     SECTION 9.1. ACTIONS. Each Lender hereby appoints DLJ as its Syndication
Agent and BofA as its Administrative Agent under and for purposes of each Loan
Document. Each Lender authorizes each Agent to act on behalf of such Lender
under each Loan Document and, in the absence of other written instructions from
the Required Lenders received from time to time by the Agents (with respect to
which each Agent agrees that it will comply, except as otherwise provided in
this Section or as otherwise advised by counsel in order to avoid contravention
of applicable law), to exercise such powers hereunder and thereunder as are
specifically delegated to or required of such Agent by the terms hereof and
thereof, together with such powers as may be reasonably incidental thereto. Each
Lender hereby indemnifies (which indemnity shall survive any termination of this
Agreement) each Agent, PRO RATA according to such Lender's proportionate Total
Exposure Amount, from and against any and all liabilities, obligations, losses,
damages, claims, costs or expenses of any kind or nature whatsoever which may at
any time be imposed on, incurred by, or asserted against, such Agent in any way
relating to or arising out of any Loan Document, including reasonable attorneys'
fees, to the extent the same shall not have been reimbursed by the

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Borrowers; PROVIDED, HOWEVER, that no Lender shall be liable for the payment of
any portion of such liabilities, obligations, losses, damages, claims, costs or
expenses which are determined by a court of competent jurisdiction in a final
proceeding to have resulted from such Agent's gross negligence or wilful
misconduct. Neither Agent shall be required to take any action under any Loan
Document, or to prosecute or defend any suit in respect of any Loan Document,
unless it is indemnified hereunder to its satisfaction. If any indemnity in
favor of either Agent shall be or become, in such Agent's determination,
inadequate, such Agent may call for additional indemnification from the Lenders
and cease to do the acts indemnified against hereunder until such additional
indemnity is given.

     SECTION 9.2. FUNDING RELIANCE, ETC. Unless the Administrative Agent shall
have been notified in writing by any Lender by 3:00 p.m. on the Business Day
prior to a Borrowing that such Lender will not make available the amount which
would constitute its Percentage of such Borrowing on the date specified
therefor, the Administrative Agent may assume that such Lender has made such
amount available to the Administrative Agent and, in reliance upon such
assumption, make available to the applicable Borrower a corresponding amount. If
and to the extent that such Lender shall not have made such amount available to
the Administrative Agent, such Lender and the Borrowers severally agree (and the
Borrowers as among themselves jointly and severally agree) to repay the
Administrative Agent forthwith on demand such corresponding amount together with
interest thereon, for each day from the date the Administrative Agent made such
amount available to the applicable Borrower to the date such amount is repaid to
the Administrative Agent, at the interest rate applicable at the time to Loans
comprising such Borrowing (in the case of either Borrower) and (in the case of a
Lender), at the Federal Funds Rate (for the first two Business Days after which
such amount has not been repaid, and thereafter at the interest rate applicable
to Loans comprising such Borrowing).

     SECTION 9.3. EXCULPATION. Neither Agent nor any of its respective
directors, officers, employees or agents shall be liable to any Lender for any
action taken or omitted to be taken by it under any Loan Document, or in
connection herewith or therewith, except for its own wilful misconduct or gross
negligence, nor responsible for any recitals or warranties herein or therein,
nor for the effectiveness, enforceability, validity or due execution

                                     -128-
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of any Loan Document, nor for the creation, perfection or priority of any Liens
purported to be created by any of the Loan Documents, or the validity,
genuineness, enforceability, existence, value or sufficiency of any collateral
security, nor to make any inquiry respecting the performance by any Obligor or
the Seller of its Obligations. Any such inquiry which may be made by either
Agent shall not obligate it to make any further inquiry or to take any action.
The Administrative Agent shall be entitled to rely upon advice of counsel
concerning legal matters and upon any notice, consent, certificate, statement or
writing which the Administrative Agent believes to be genuine and to have been
presented by a proper Person.

     SECTION 9.4. SUCCESSOR. The Syndication Agent may resign as such upon one
Business Day's notice to the Borrowers and the Administrative Agent. The
Administrative Agent may resign as such at any time upon at least 30 days' prior
notice to the Borrowers and all Lenders. If the Administrative Agent at any time
shall resign, the Required Lenders, with the prior consent of Holdings (which
consent of Holdings shall not be required upon the occurrence and during the
continuation of a Specified Default) may appoint another Lender as a successor
Administrative Agent which shall thereupon become the Administrative Agent
hereunder. If no successor Administrative Agent shall have been so appointed by
the Required Lenders, and shall have accepted such appointment, within 30 days
after the retiring Administrative Agent's giving notice of resignation, then the
retiring Administrative Agent may, on behalf of the Lenders, appoint a successor
Administrative Agent, which shall be one of the Lenders or a commercial banking
institution organized under the laws of the U.S. (or any State thereof) or a
U.S. branch or agency of a commercial banking institution, and having a combined
capital and surplus of at least $250,000,000; PROVIDED, HOWEVER, that if, such
retiring Administrative Agent is unable to find a commercial banking institution
which is willing to accept such appointment and which meets the qualifications
set forth in above, the retiring Administrative Agent's resignation shall
nevertheless thereupon become effective and the Lenders shall assume and perform
all of the duties of the Administrative Agent hereunder until such time, if any,
as the Required Lenders appoint a successor as provided for above. Upon the
acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall be entitled to
receive from the retiring Administrative Agent such documents of transfer and
assignment as such successor Administrative Agent may reasonably request, and
shall

                                     -129-
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thereupon succeed to and become vested with all rights, powers, privileges
and duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations under the Loan
Documents. After any retiring Administrative Agent's resignation hereunder as
the Administrative Agent, the provisions of this ARTICLE shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was the
Administrative Agent under the Loan Documents, and SECTIONS 11.3 and 11.4 shall
continue to inure to its benefit.

     SECTION 9.5. CREDIT EXTENSIONS BY EACH AGENT. Each Agent and each Issuer
shall have the same rights and powers with respect to (x)(i) in the case of an
Agent, the Credit Extensions made by it or any of its Affiliates and (ii) in the
case of an Issuer, the Loans made by it or any of its Affiliates, and (y) the
Notes held by it or any of its Affiliates as any other Lender and may exercise
the same as if it were not an Agent or Issuer. Each Agent, each Issuer and each
Lender and each of their respective Affiliates may accept deposits from, lend
money to, and generally engage in any kind of business with Holdings, either
Borrower or any Subsidiary or Affiliate of Holdings or either Borrower as if
such Agent, Issuer or Lender were not an Agent, Issuer or Lender hereunder.

     SECTION 9.6. CREDIT DECISIONS. Each Lender acknowledges that it has,
independently of each Agent and each other Lender, and based on such Lender's
review of the financial information of Holdings, the Borrowers and their
respective Subsidiaries, the Loan Documents (the terms and provisions of which
being satisfactory to such Lender) and such other documents, information and
investigations as such Lender has deemed appropriate, made its own credit
decision to extend its Commitments. Each Lender also acknowledges that it will,
independently of each Agent and each other Lender, and based on such other
documents, information and investigations as it shall deem appropriate at any
time, continue to make its own credit decisions as to exercising or not
exercising from time to time any rights and privileges available to it under the
Loan Documents.

     SECTION 9.7. COPIES, ETC. The Administrative Agent shall give prompt notice
to each Lender of each notice or request required or permitted to be given to
the Administrative Agent by Holdings or either Borrower pursuant to the terms of
the Loan Documents (unless concurrently delivered to the Lenders by the
Borrowers). The Administrative Agent will distribute to each Lender each

                                     -130-
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document or instrument received for its account and copies of all other
communications received by the Administrative Agent from Holdings or either
Borrower for distribution to the Lenders by the Administrative Agent in
accordance with the terms of the Loan Documents.

     SECTION 9.8. RELIANCE BY AGENTS. Each Agent shall be entitled to rely upon
any certification, notice or other communication (including any thereof by
telephone, telecopy, telegram or cable) believed by it to be genuine and correct
and to have been signed or sent by or on behalf of the proper Person, and upon
advice and statements of legal counsel, independent accountants and other
experts selected by such Agent. As to any matters not expressly provided for by
the Loan Documents, each Agent shall in all cases be fully protected in acting,
or in refraining from acting, hereunder or thereunder in accordance with
instructions given by the Required Lenders or all of the Lenders as is required
in such circumstance, and such instructions of such Lenders and any action taken
or failure to act pursuant thereto shall be binding on all Secured Parties. For
purposes of applying amounts in accordance with this Section, each Agent shall
be entitled to rely upon any Secured Party that has entered into a Secured
Hedging Agreement with any Obligor or the Seller for a determination (which such
Secured Party agrees to provide or cause to be provided upon request of the
Administrative Agent) of the outstanding monetary Obligations owed to such
Secured Party under any Secured Hedging Agreement. Unless it has actual
knowledge evidenced by way of written notice from any such Secured Party and
either Borrower to the contrary, each Agent, in acting in such capacity under
the Loan Documents, shall be entitled to assume that no Secured Hedging
Agreements or Obligations in respect thereof are in existence or outstanding
between any Secured Party and any Obligor or the Seller.

     SECTION 9.9. DEFAULTS. Neither Agent shall be deemed to have knowledge or
notice of the occurrence of a Default unless such Agent has received a written
notice from a Lender or either Borrower specifying such Default and stating that
such notice is a "Notice of Default". In the event that either Agent receives
such a notice of the occurrence of a Default, such Agent shall give prompt
notice thereof to the Lenders. Each Agent shall (subject to SECTION 11.1) take
such action with respect to such Default as shall be directed by the Required
Lenders; PROVIDED, that unless and until such Agent shall have received such
directions, such Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with

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<PAGE>

respect to such Default as it shall deem advisable in the best interest of the
Lenders except to the extent that this Agreement expressly requires that such
action be taken, or not be taken, only with the consent or upon the
authorization of the Required Lenders or all Lenders, as applicable.

     SECTION 9.10. DOCUMENTATION AGENT. The Person identified on the signature
pages of this Agreement as the "Documentation Agent" shall not have any right,
power, obligation, liability, responsibility or duty under this Agreement (or
any other Loan Document) other than those applicable to it in its capacity as a
Lender to the extent it is a Lender hereunder. Without limiting the foregoing,
the Lender so identified as the "Documentation Agent" shall not have or be
deemed to have any fiduciary relationship with any Lender. Each Person
acknowledges that it has not relied, and will not rely, on the Person so
identified as the "Documentation Agent" in deciding to enter into this Agreement
and each other Loan Document to which it is a party or in taking or not taking
action hereunder or thereunder.

                                    ARTICLE X

                                HOLDINGS GUARANTY

     SECTION 10.1. GUARANTY. Holdings hereby absolutely, unconditionally and
irrevocably

          (a) guarantees the full and punctual payment when due, whether at
     stated maturity, by required prepayment, declaration, acceleration, demand
     or otherwise, of all monetary Obligations of each Borrower and each other
     Obligor now or hereafter existing, whether for principal, interest, fees,
     expenses or otherwise (including all such amounts which would become due
     but for the operation of the automatic stay under Section 362(a) of the
     United States Bankruptcy Code, 11 U.S.C. Section 362(a), and the operation
     of Sections 502(b) and 506(b) of the United States Bankruptcy Code, 11
     U.S.C. Section 502(b) and Section 506(b)), and

          (b) indemnifies and holds harmless each Secured Party and each holder
     of a Note for any and all costs and expenses (including reasonable
     attorney's fees and expenses) incurred by such Secured Party or such
     holder, as the case may be, in enforcing any rights under the guaranty set
     forth in this ARTICLE X.

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<PAGE>

The guaranty set forth in this ARTICLE X constitutes a guaranty of payment when
due and not of collection, and Holdings specifically agrees that it shall not be
necessary or required that any Secured Party or any holder of any Note exercise
any right, assert any claim or demand or enforce any remedy whatsoever against
either Borrower or any other Obligor (or any other Person) before or as a
condition to the obligations of Holdings under the guaranty set forth in this
ARTICLE X.

     SECTION 10.2. ACCELERATION OF HOLDINGS GUARANTY. Holdings agrees that, in
the event of the dissolution or insolvency of either Borrower, any other Obligor
or Holdings, or the inability or failure of either Borrower, any other Obligor
or Holdings to pay debts as they become due, or an assignment by either
Borrower, any other Obligor or Holdings for the benefit of creditors, or the
commencement of any case or proceeding in respect of either Borrower, any other
Obligor or Holdings under any bankruptcy, insolvency or similar laws, and if
such event shall occur at a time when any of the monetary Obligations of each
Borrower and each other Obligor may not then be due and payable, Holdings agrees
that it will pay to the Administrative Agent for the account of the Secured
Parties forthwith the full amount which would be payable under the guaranty set
forth in this ARTICLE X by Holdings if all such monetary Obligations were then
due and payable.

     SECTION 10.3. GUARANTY ABSOLUTE, ETC. The guaranty set forth in this
ARTICLE X shall in all respects be a continuing, absolute, unconditional and
irrevocable guaranty of payment, and shall remain in full force and effect until
all monetary Obligations of each Borrower and each other Obligor have been paid
in full in cash, all obligations of Holdings under the guaranty set forth in
this ARTICLE X shall have been paid in full in cash, all Letters of Credit have
been terminated or expired and all Commitments shall have terminated. Holdings
guarantees that the monetary Obligations of each Borrower and each other Obligor
will be paid strictly in accordance with the terms of this Agreement and each
other Loan Document under which they arise, regardless of any law, regulation or
order now or hereafter in effect in any jurisdiction affecting any of such terms
or the rights of any Secured Party or any holder of any Note with respect
thereto. The liability of Holdings under the guaranty set forth in this ARTICLE
X shall be absolute, unconditional and irrevocable irrespective of:

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<PAGE>

          (a) any lack of validity, legality or enforceability of this
     Agreement, any Note or any other Loan Document;

          (b) the failure of any Secured Party or any holder of any Note

               (i) to assert any claim or demand or to enforce any right or
          remedy against either Borrower, any other Obligor, the Seller or any
          other Person (including any other guarantor (including Holdings))
          under the provisions of this Agreement, any Note, any other Loan
          Document or otherwise, or

               (ii) to exercise any right or remedy against any other guarantor
          (including Holdings) of, or collateral securing, any Obligations of
          either Borrower, any other Obligor or the Seller;

          (c) any change in the time, manner or place of payment of, or in any
     other term of, all or any of the Obligations of either Borrower or any
     other Obligor (other than Holdings), or any other extension, compromise or
     renewal of any Obligation of either Borrower or any other Obligor (other
     than Holdings);

          (d) any reduction, limitation, impairment or termination of any
     Obligations of either Borrower for any reason, including any claim of
     waiver, release, surrender, alteration or compromise, and shall not be
     subject to (and Holdings hereby waives any right to or claim of) any
     defense or setoff, counterclaim, recoupment or termination whatsoever by
     reason of the invalidity, illegality, nongenuineness, irregularity,
     compromise, unenforceability of, or any other event or occurrence
     affecting, any Obligations of either Borrower or otherwise;

          (e) any amendment to, rescission, waiver, or other modification of, or
     any consent to departure from, any of the terms of this Agreement, any Note
     or any other Loan Document;

          (f) any addition, exchange, release, surrender or non-perfection of
     any collateral, or any amendment to or waiver or release or addition of, or
     consent to departure from, any other guaranty, held by any Secured Party or
     any holder of any Note securing any of the Obligations of either Borrower;
     or

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<PAGE>

          (g) any other circumstance which might otherwise constitute a defense
     available to, or a legal or equitable discharge of, either Borrower, any
     surety or any guarantor.

     SECTION 10.4. REINSTATEMENT, ETC. Holdings agrees that the guaranty set
forth in this ARTICLE X shall continue to be effective or be reinstated, as the
case may be, if at any time any payment (in whole or in part) of any of the
Obligations is rescinded or must otherwise be restored by any Secured Party or
any holder of any Note, upon the insolvency, bankruptcy or reorganization of
either Borrower or otherwise, all as though such payment had not been made.

     SECTION 10.5. WAIVER, ETC. Holdings hereby waives promptness, diligence,
notice of acceptance and any other notice with respect to any of the Obligations
of either Borrower and the guaranty set forth in this ARTICLE X and any
requirement that the Administrative Agent, any other Secured Party or any holder
of any Note protect, secure, perfect or insure any security interest or Lien, or
any property subject thereto, or exhaust any right or take any action against
either Borrower, any other Obligor or any other Person (including the Seller or
any other guarantor (including Holdings)) or entity or any collateral securing
the Obligations of either Borrower.

     SECTION 10.6. POSTPONEMENT OF SUBROGATION, ETC. Holdings agrees that it
will not exercise any rights which it may acquire by way of rights of
subrogation under the guaranty set forth in this ARTICLE X, by any payment made
under the guaranty set forth in this ARTICLE X or otherwise, until the prior
payment in full in cash of all monetary Obligations of each Borrower and each
other Obligor, the termination or expiration of all Letters of Credit and the
termination of all Commitments. Any amount paid to Holdings on account of any
such subrogation rights prior to the payment in full in cash of all monetary
Obligations of each Borrower and each other Obligor shall be held in trust for
the benefit of the Secured Parties and each holder of a Note and shall
immediately be paid to the Administrative Agent for the benefit of the Secured
Parties and each holder of a Note and credited and applied against the monetary
Obligations of each Borrower and each other Obligor, whether matured or
unmatured, in accordance with the terms of this Agreement; PROVIDED, HOWEVER,
that if

          (a) Holdings has made payment to the Secured Parties and each holder
     of a Note of all or any part of the monetary Obligations of either
     Borrower, and

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<PAGE>

          (b) all monetary Obligations of each Borrower and each other Obligor
     have been paid in full in cash, all Letters of Credit have been terminated
     or expired and all Commitments have been permanently terminated,

each Secured Party and each holder of a Note agrees that, at Holdings' request,
the Administrative Agent, on behalf of the Secured Parties and the holders of
the Notes, will execute and deliver to Holdings appropriate documents (without
recourse and without representation or warranty) necessary to evidence the
transfer by subrogation to Holdings of an interest in the monetary Obligations
of the applicable Borrower resulting from such payment by Holdings. In
furtherance of the foregoing, for so long as any Obligations or Commitments
remain outstanding, Holdings shall refrain from taking any action or commencing
any proceeding against either Borrower (or its successors or assigns, whether in
connection with a bankruptcy proceeding or otherwise) to recover any amounts in
the respect of payments made under the guaranty set forth in this ARTICLE X to
any Secured Party or any holder of a Note.

     SECTION 10.7. SUCCESSORS, TRANSFEREES AND ASSIGNS; TRANSFERS OF NOTES, ETC.
The guaranty set forth in this ARTICLE X shall:

          (a) be binding upon Holdings, and its successors, transferees and
     assigns;

          (b) inure to the benefit of and be enforceable by each Agent and each
     other Secured Party; and

          (c) shall not constitute a novation.

Without limiting the generality of the foregoing CLAUSE (b), any Lender may
assign or otherwise transfer (in whole or in part) any Note or Credit Extension
held by it to any other Person or entity, and such other Person or entity shall
thereupon become vested with all rights and benefits in respect thereof granted
to such Lender under any Loan Document (including the guaranty set forth in this
ARTICLE X) or otherwise, subject, however, to any contrary provisions in such
assignment or transfer, and to the provisions of SECTION 11.11 and ARTICLE IX.

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<PAGE>

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

     SECTION 11.1. WAIVERS, AMENDMENTS, ETC. The provisions of each Loan
Document may from time to time be amended, modified or waived, if such
amendment, modification or waiver is in writing and consented to by Holdings,
the Borrowers and the Required Lenders; PROVIDED, HOWEVER, that no such
amendment, modification or waiver shall:

          (a) modify this Section without the consent of all Lenders;

          (b) increase the aggregate amount of any Credit Extensions required to
     be made by a Lender pursuant to its Commitments, extend the final
     Commitment Termination Date of Credit Extensions made (or participated in)
     by a Lender or reduce any fees described in ARTICLE III payable to any
     Lender without the consent of such Lender;

          (c) extend any date of payment of principal for any Lender's Loan, or
     reduce the principal amount of, rate of interest or fees on any Loan or
     Reimbursement Obligations (which shall in each case include the conversion
     of all or any part of the Obligations into equity of any Obligor), or
     extend the date on which interest or fees are payable in respect of such
     Loan or Reimbursement Obligation, in each case, without the consent of the
     Lender which has made such Loan or, in the case of a Reimbursement
     Obligation, the Issuer owed, and those Lenders participating in, such
     Reimbursement Obligation (it being understood and agreed, however, that any
     vote to rescind any acceleration made pursuant to SECTION 8.2 and SECTION
     8.3 of amounts owing with respect to the Loans and other Obligations shall
     only require the vote of the Required Lenders);

          (d) reduce the percentage set forth in the definition of "Required
     Lenders" or modify any requirement hereunder that any particular action be
     taken by all Lenders without the consent of all Lenders;

          (e) except as otherwise expressly provided in a Loan Document, release
     (i) either Borrower from its Obligations under the Loan Documents, Holdings
     from its Obligations under ARTICLE X or any Subsidiary Guarantor from its
     Obligations under the Subsidiary Guaranty or

                                     -137-
<PAGE>

     (ii) all or substantially all of the collateral under the Loan Documents,
     in each case without the consent of all Lenders;

          (f)(i) amend, modify or waive CLAUSE (b) of SECTION 3.1.1 or (ii) have
     the effect (either immediately or at some later time) of enabling the
     Borrowers to satisfy a condition precedent to the making of a Revolving
     Loan or the issuance of a Letter of Credit unless such amendment,
     modification or waiver shall have been consented to by the holders of at
     least 51% of the Revolving Loan Commitments.

          (g) amend, modify or waive the provisions of CLAUSE (a)(i) of SECTION
     3.1.1 or CLAUSE (b) of SECTION 3.1.2 or effect any amendment, modification
     or waiver that by its terms adversely affects the rights of Lenders
     participating in any Tranche differently from those of Lenders
     participating in other Tranches, unless such amendment, modification or
     waiver shall have been consented to by the holders of at least 51% of the
     aggregate amount of Loans outstanding under the Tranche or Tranches
     affected by such modification, or, in the case of a modification affecting
     the Revolving Loan Commitments, the Lenders holding at least 51% of the
     Revolving Loan Commitments;

          (h) change any of the terms of CLAUSE (b) of SECTION 2.3.2 or SECTION
     2.3.2 without the consent of the Swing Line Lender; or

          (i) affect adversely the interests, rights or obligations of either
     Agent (in its capacity as an Agent) or any Issuer (in its capacity as an
     Issuer), unless consented to by such Agent or such Issuer, as the case may
     be.

No failure or delay on the part of either Agent, any Issuer or any Lender in
exercising any power or right under any Loan Document shall operate as a waiver
thereof, nor shall any single or partial exercise of any such power or right
preclude any other or further exercise thereof or the exercise of any other
power or right. No notice to or demand on any Obligor or the Seller in any case
shall entitle it to any notice or demand in similar or other circumstances. No
waiver or approval by either Agent, any Issuer or any Lender under any Loan
Document shall, except as may be otherwise stated in such waiver or approval, be
applicable to subsequent transactions. No waiver or

                                     -138-
<PAGE>

approval hereunder shall require any similar or dissimilar waiver or approval
thereafter to be granted hereunder.

     For purposes of this SECTION 11.1, the Syndication Agent, if any, in
coordination with the Administrative Agent, shall have primary responsibility,
together with the Borrowers, in the negotiation, preparation and documentation
relating to any amendment, modification or waiver under this Agreement, any
other Loan Document or any other agreement or document related hereto or thereto
contemplated pursuant to this Section.

     SECTION 11.2. NOTICES; TIME. All notices and other communications provided
under each Loan Document shall be in writing or by facsimile and addressed,
delivered or transmitted, if to either Agent or either Borrower, at its address
or facsimile number set forth below its signature in this Agreement, and if to a
Lender or Issuer to the applicable Person at its address or facsimile number set
forth below its signature in this Agreement or set forth in the Lender
Assignment Agreement pursuant to which it became a Lender hereunder, or at such
other address or facsimile number as may be designated by any such party in a
notice to the other parties. Any notice, if mailed and properly addressed with
postage prepaid or if properly addressed and sent by pre-paid courier service,
shall be deemed given when received; any notice, if transmitted by facsimile,
shall be deemed given when the confirmation of transmission thereof is received
by the transmitter. Unless otherwise indicated, all references to the time of a
day in a Loan Document shall refer to New York City time.

     SECTION 11.3. PAYMENT OF COSTS AND EXPENSES. The Borrowers jointly and
severally agree to pay on demand all expenses of each Agent (including the fees
and out-of-pocket expenses of Mayer, Brown & Platt, counsel to the Agents and of
local counsel, if any, who may be retained by or on behalf of the Agents) in
connection with

          (a) the negotiation, preparation, execution and delivery of each Loan
     Document, including schedules and exhibits, and any amendments, waivers,
     consents, supplements or other modifications to any Loan Document as may
     from time to time hereafter be required, whether or not the transactions
     contemplated hereby are consummated; and

          (b) the filing or recording of any Loan Document (including the Filing
     Statements) and all amendments, supplements, amendment and restatements and
     other

                                     -139-
<PAGE>

     modifications to any thereof, searches made following the Closing Date in
     jurisdictions where Filing Statements (or other documents evidencing Liens
     in favor of the Secured Parties) have been recorded and any and all other
     documents or instruments of further assurance required to be filed or
     recorded by the terms of any Loan Document; and

          (c) the preparation and review of the form of any document or
     instrument relevant to any Loan Document.

The Borrowers further agree to jointly and severally pay, and to save each
Secured Party harmless from all liability for, any stamp or other taxes which
may be payable in connection with the execution or delivery of each Loan
Document, the Credit Extensions or the issuance of the Notes. The Borrowers also
agree to jointly and severally reimburse each Secured Party upon demand for all
reasonable out-of-pocket expenses (including reasonable attorneys' fees and
legal expenses of counsel to each Secured Party) incurred by such Secured Party
in connection with (x) the negotiation of any restructuring or "work-out" with
either Borrower, whether or not consummated, of any Obligations and (y) the
enforcement of any Obligations.

     SECTION 11.4. INDEMNIFICATION. In consideration of the execution and
delivery of this Agreement by each Secured Party, the Borrowers hereby jointly
and severally indemnify, exonerate and hold each Secured Party and each of their
respective officers, directors, employees and agents (collectively, the
"INDEMNIFIED PARTIES") free and harmless from and against any and all actions,
causes of action, suits, losses, costs, liabilities and damages, and expenses
incurred in connection therewith (irrespective of whether any such Indemnified
Party is a party to the action for which indemnification hereunder is sought),
including reasonable attorneys' fees and disbursements, whether incurred in
connection with actions between or among the parties hereto or the parties
hereto and third parties (collectively, the "INDEMNIFIED LIABILITIES"), incurred
by the Indemnified Parties or any of them as a result of, or arising out of, or
relating to

          (a) any transaction financed or to be financed in whole or in part,
     directly or indirectly, with the proceeds of any Credit Extension,
     including all Indemnified Liabilities arising in connection with the
     Transaction;

                                     -140-
<PAGE>

          (b) the entering into and performance of any Loan Document by any of
     the Indemnified Parties (including any action brought by or on behalf of
     either Borrower as the result of any determination by the Required Lenders
     pursuant to ARTICLE V not to fund any Credit Extension, provided that any
     such action is resolved in favor of such Indemnified Party);

          (c) any investigation, litigation or proceeding related to any
     acquisition or proposed acquisition by any Obligor or any Subsidiary
     thereof of all or any portion of the Capital Securities or assets of any
     Person, whether or not an Indemnified Party is party thereto;

          (d) any investigation, litigation or proceeding related to any
     environmental cleanup, audit, compliance or other matter relating to the
     protection of the environment or the Release by any Obligor or any
     Subsidiary thereof of any Hazardous Material;

          (e) the presence on or under, or the escape, seepage, leakage,
     spillage, discharge, emission, discharging or releases from, any real
     property owned or operated by any Obligor or any Subsidiary thereof of any
     Hazardous Material (including any losses, liabilities, damages, injuries,
     costs, expenses or claims asserted or arising under any Environmental Law),
     regardless of whether caused by, or within the control of, such Obligor or
     Subsidiary; or

          (f) each Lender's Environmental Liability (the indemnification herein
     shall survive repayment of the monetary Obligations and any transfer of the
     property of any Obligor or its Subsidiaries by foreclosure or by a deed in
     lieu of foreclosure for any Lender's Environmental Liability, regardless of
     whether caused by, or within the control of, such Obligor or such
     Subsidiary);

except for Indemnified Liabilities arising for the account of a particular
Indemnified Party by reason of the relevant Indemnified Party's gross negligence
or wilful misconduct (as determined by a court having jurisdiction in a final
proceeding) or disputes between Indemnified Parties. Each Obligor and its
successors and assigns hereby waive, release and agree not to make any claim or
bring any cost recovery action against, any Indemnified Party under CERCLA or
any state equivalent, or any similar law now existing or hereafter enacted. It
is expressly understood and agreed

                                     -141-
<PAGE>

that to the extent that any Indemnified Party is strictly liable under any
Environmental Laws, each Obligor's obligation to such Indemnified Party under
this indemnity shall likewise be without regard to fault on the part of any
Obligor with respect to the violation or condition which results in liability of
an Indemnified Party. If and to the extent that the foregoing undertaking may be
unenforceable for any reason, each Obligor agrees to make the maximum
contribution to the payment and satisfaction of each of the Indemnified
Liabilities which is permissible under applicable law.

     It is understood and agreed that, to the extent not precluded by a conflict
of interest, each Indemnified Party shall endeavor to make reasonable efforts to
minimize the legal and other expenses associated with any defense and any
potential settlement or judgment (including the use of single counsel selected
by such Indemnified Parties). Settlement of any such claim or litigation
involving any material indemnified amount will require the approval of the
relevant Obligor (such approval not to be unreasonably withheld or delayed).

     SECTION 11.5. SURVIVAL. The obligations of each Borrower under SECTIONS
4.3, 4.4, 4.5, 4.6, 11.3 and 11.4, the obligations of Holdings under Article X
in respect of such obligations of each such Borrower and the obligations of the
Lenders under SECTION 9.1, shall in each case survive any assignment from one
Lender to another (in the case of SECTIONS 11.3 and 11.4) and the occurrence of
the Termination Date. The representations and warranties made by each Obligor
and the Seller in each Loan Document shall survive the execution and delivery of
such Loan Document.

     SECTION 11.6. SEVERABILITY. Any provision of any Loan Document which is
prohibited or unenforceable in any jurisdiction shall, as to such provision and
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of such Loan
Document or affecting the validity or enforceability of such provision in any
other jurisdiction.

     SECTION 11.7. HEADINGS. The various headings of each Loan Document are
inserted for convenience only and shall not affect the meaning or interpretation
of such Loan Document or any provisions thereof.

     SECTION 11.8. EXECUTION IN COUNTERPARTS, EFFECTIVENESS, ETC. This Agreement
may be executed by the

                                     -142-
<PAGE>

parties hereto in several counterparts, each of which shall be an original and
all of which shall constitute together but one and the same agreement. This
Agreement shall become effective when counterparts hereof executed on behalf of
each Borrower, each Agent and each Lender (or notice thereof satisfactory to the
Agents), shall have been received by the Agents.

     SECTION 11.9. GOVERNING LAW; ENTIRE AGREEMENT. EACH LOAN DOCUMENT (OTHER
THAN THE LETTERS OF CREDIT, TO THE EXTENT SPECIFIED BELOW AND EXCEPT AS
OTHERWISE EXPRESSLY SET FORTH IN A LOAN DOCUMENT) WILL EACH BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK). EACH STANDBY LETTER OF CREDIT SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OR RULES DESIGNATED
IN SUCH LETTER OF CREDIT, OR IF NO LAWS OR RULES ARE DESIGNATED, THE
INTERNATIONAL STANDBY PRACTICES (ISP98--INTERNATIONAL CHAMBER OF COMMERCE
PUBLICATION NUMBER 590 (THE "ISP RULES")) AND, AS TO MATTERS NOT GOVERNED BY THE
ISP RULES, THE INTERNAL LAWS OF THE STATE OF NEW YORK. EACH OTHER LETTER OF
CREDIT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OR RULES
DESIGNATED IN SUCH LETTER OF CREDIT, OR IF NO LAWS OR RULES ARE DESIGNATED, THE
UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS, 1993 REVISION, ICC
PUBLICATION NO. 500 (THE "UNIFORM CUSTOMS") AND, AS TO MATTERS NOT GOVERNED BY
THE UNIFORM CUSTOMS, THE INTERNAL LAWS OF THE STATE OF NEW YORK. The Loan
Documents constitute the entire understanding among the parties hereto with
respect to the subject matter thereof and supersede any prior agreements,
written or oral, with respect thereto.

     SECTION 11.10. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon
and shall inure to the benefit of the parties hereto and their respective
successors and assigns; PROVIDED, HOWEVER, that neither Borrower may assign or
transfer its rights or obligations hereunder without the consent of all of the
Lenders.

     SECTION 11.11. SALE AND TRANSFER OF CREDIT EXTENSIONS; PARTICIPATIONS IN
CREDIT EXTENSIONS NOTES. Each Lender may assign, or sell participations in, its
Loans, Letters of Credit and Commitments to one or more other Persons in
accordance with this the terms set forth below.

     SECTION 11.11.1. ASSIGNMENTS. Any Lender (an "ASSIGNOR LENDER"),

                                     -143-
<PAGE>

          (a) with the written consent of Holdings, the Agents and (in the case
     of any assignment of Revolving Loan Commitments and related participations
     in Letters of Credit, Letter of Credit Outstandings and Swing Line Loans)
     the Issuers (which consents (i) shall not be unreasonably delayed or
     withheld, (ii) of Holdings shall not be required upon the occurrence and
     during the continuance of any Event of Default and (iii) of the Agents and
     the Issuers shall not be required in the case of any assignment made by DLJ
     or any of its Affiliates), may at any time assign and delegate to one or
     more commercial banks, funds that are regularly engaged in making,
     purchasing or investing in loans or securities, or other financial
     institutions, and

          (b) with notice to Holdings, the Agents, and (in the case of any
     assignment of Revolving Loan Commitments and related participations in
     Letters of Credit, Letter of Credit Outstandings and Swing Line Loans) the
     Issuers, but without the consent of Holdings, the Agents or the Issuers,
     may assign and delegate to any of its Affiliates or Related Funds or to any
     other Lender or any Affiliate or Related Fund of any other Lender

(each Person described in either of the foregoing clauses as being the Person to
whom such assignment and delegation is to be made, being hereinafter referred to
as an "ASSIGNEE LENDER"), all or any fraction of such Assignor Lender's Loans
and Commitments (and in the case of any assignment of Revolving Loan
Commitments, related participations in Letters of Credit, Letter of Credit
Outstandings and Swing Line Loans) (which assignment and delegation shall be, as
among Revolving Loan Commitments, Revolving Loans and participations in Letters
of Credit, Letter of Credit Outstandings and Swing Line Loans of a constant, and
not a varying, percentage) is in a minimum aggregate amount of (i) $1,000,000
(PROVIDED that (1) assignments that are made on the same day to funds that (x)
invest in commercial loans and (y) are managed or advised by the same investment
advisor or any Affiliate of such investment advisor may be treated as a single
assignment for purposes of the minimum amount and (2) no minimum amount shall be
required in the case of any assignment between two Lenders so long as the
Assignor Lender has an aggregate amount of Loans and Commitments of at least
$1,000,000 following such assignment) unless Holdings and the Agents otherwise
consent or (ii) the then remaining amount of such Assignor Lender's Loans and
Commitments; PROVIDED, HOWEVER, that any such Assignee Lender will comply, if
applicable, with the

                                     -144-
<PAGE>

provisions contained in SECTION 4.6 and the Borrowers, each other Obligor, the
Seller and the Agents shall be entitled to continue to deal solely and directly
with such Assignor Lender in connection with the interests so assigned and
delegated to an Assignee Lender until

          (A) written notice of such assignment and delegation, together with
     payment instructions, addresses and related information with respect to
     such Assignee Lender, shall have been given to Holdings and the Agents by
     such Assignor Lender and such Assignee Lender;

          (B) such Assignee Lender shall have executed and delivered to Holdings
     and the Agents a Lender Assignment Agreement, accepted by the Agents;

          (C) the processing fees described below shall have been paid; and

          (D) the Administrative Agent shall have registered such assignment and
     delegation in the Register pursuant to CLAUSE (b) of SECTION 2.7.

From and after the date that the Agents accept such Lender Assignment Agreement
and such assignment and delegation is registered pursuant to CLAUSE (b) of
SECTION 2.7, (x) the Assignee Lender thereunder shall be deemed automatically to
have become a party hereto and to the extent that rights and obligations
hereunder have been assigned and delegated to such Assignee Lender in connection
with such Lender Assignment Agreement, shall have the rights and obligations of
a Lender hereunder and under the other Loan Documents, and (y) the Assignor
Lender, to the extent that rights and obligations hereunder have been assigned
and delegated by it in connection with such Lender Assignment Agreement, shall
be released from its obligations hereunder and under the other Loan Documents.
Any Assignor Lender that shall have previously requested and received any Note
or Notes in respect of any Tranche to which any such assignment applies shall,
upon the acceptance by the Administrative Agent of the applicable Lender
Assignment Agreement, mark such Note or Notes "exchanged" and deliver them to
the Borrowers (against, if the Assignor Lender has retained Loans or Commitments
with respect to the applicable Tranche and has requested replacement Notes
pursuant to CLAUSE (b)(ii) of SECTION 2.7, its receipt from the Borrowers of
replacement Notes in the principal amount of the Loans and Commitments of the
applicable Tranche retained by it). Such Assignor Lender or such Assignee Lender
(unless the Assignor Lender

                                     -145-
<PAGE>

or the Assignee Lender is DLJ or one of its Affiliates) must also pay a
processing fee to the Administrative Agent upon delivery of any Lender
Assignment Agreement in the amount of $3,500, unless such assignment and
delegation is by a Lender to its Affiliate or Related Fund or if such assignment
and delegation is by a Lender to a Federal Reserve Bank, as provided below or is
otherwise consented to by the Administrative Agent. Any attempted assignment and
delegation not made in accordance with this SECTION 11.11.1 shall be null and
void. Nothing contained in this SECTION 11.11.1 shall prevent or prohibit any
Lender from pledging its rights (but not its obligations to make Loans or
participate in Letters of Credit, Letter of Credit Outstandings or Swing Line
Loans) under this Agreement and/or its Loans hereunder to a Federal Reserve Bank
in support of borrowings made by such Lender from such Federal Reserve Bank and
any Lender that is a fund that invests in bank loans may pledge all or any
portion of its rights (but not its obligations to make Loans or participate in
Letters of Credit or Letter of Credit Outstandings) hereunder to any trustee or
holders of obligations owed, or securities issued by, such fund as security for
such obligations or securities or to any other representative of such holders.
In the event that S&P, Moody's or Thompson's BankWatch (or InsuranceWatch
Ratings Service, in the case of Lenders that are insurance companies (or Best's
Insurance Reports, if such insurance company is not rated by Insurance Watch
Ratings Service)) shall, after the date that any Lender with a Commitment to
make Revolving Loans or participate in Letters of Credit, Letter of Credit
Outstandings or Swing Line Loans becomes a Lender, downgrade the long-term
certificate of deposit rating or long-term senior unsecured debt rating of such
Lender, and the resulting rating shall be below BBB-, Baa3 or C (or BB, in the
case of Lender that is an insurance company (or B, in the case of an insurance
company not rated by InsuranceWatch Ratings Service)) respectively, then the
applicable Issuer or Holdings shall have the right, but not the obligation, upon
notice to such Lender and the Agents, to replace such Lender with an Assignee
Lender in accordance with and subject to the restrictions contained in this
Section, and such Lender hereby agrees to transfer and assign without recourse
(in accordance with and subject to the restrictions contained in this Section)
all its interests, rights and obligations in respect of its Revolving Loan
Commitment under this Agreement to such Assignee Lender; PROVIDED, HOWEVER, that
(i) no such assignment shall conflict with any law, regulation or order of any
governmental authority and (ii) such Assignee Lender shall pay to such Lender in
immediately available funds on the date of such assignment

                                     -146-
<PAGE>

the principal of and interest and fees (if any) accrued to the date of payment
on the Loans made, and Letters of Credit participated in, by such Lender
hereunder and all other amounts accrued for such Lender's account or owed to it
hereunder.

          SECTION 11.11.2. PARTICIPATIONS. Any Lender may sell to one or more
     commercial banks or other Persons (each of such commercial banks and other
     Persons being herein called a "PARTICIPANT") participating interests in any
     of the Loans, Commitments, or other interests of such Lender hereunder;
     PROVIDED, HOWEVER, that

               (a) no participation contemplated in this Section shall relieve
          such Lender from its Commitments or its other obligations under any
          Loan Document;

               (b) such Lender shall remain solely responsible for the
          performance of its Commitments and such other obligations;

               (c) each Obligor, the Seller and the Agents shall continue to
          deal solely and directly with such Lender in connection with such
          Lender's rights and obligations under each Loan Document;

               (d) no Participant, unless such Participant is an Affiliate of
          such Lender or is itself a Lender, shall be entitled to require such
          Lender to take or refrain from taking any action under any Loan
          Document, except that such Lender may agree with any Participant that
          such Lender will not, without such Participant's consent, take any
          actions of the type described in CLAUSES (a), (b), (c) or (f) of
          SECTION 11.1 with respect to Obligations participated in by such
          Participant; and

               (e) neither Holdings nor either Borrower shall be required to pay
          any amount under this Agreement that is greater than the amount which
          it would have been required to pay had no participating interest been
          sold.

Each Borrower and Holdings acknowledges and agrees that each Participant, for
purposes of SECTIONS 4.3, 4.4, 4.5, 4.6, 4.8, 4.9, 7.1.1, 11.3 and 11.4, shall
be considered a Lender. Each Participant shall only be indemnified for increased
costs pursuant to SECTION 4.3, 4.5 or 4.6 if and to the extent that the Lender
which sold such participating interest to such Participant concurrently is
entitled to

                                     -147-
<PAGE>

make, and does make, a claim on such Borrower or (with respect to any claim
under SECTION 4.6) Holdings for such increased costs and, in the case of SECTION
4.6, such Participant complies therewith as if it were a Lender. Any Lender that
sells a participating interest in any Loan, Commitment or other interest to a
Participant under this Section shall indemnify and hold harmless Holdings, each
Borrower and the Administrative Agent from and against any taxes, penalties,
interest or other costs or losses (including reasonable attorneys' fees and
expenses) incurred or payable by Holdings, such Borrower or the Administrative
Agent as a result of the failure of such Borrower or the Administrative Agent to
comply with its obligations to deduct or withhold any Taxes from any payments
made pursuant to this Agreement to such Lender or the Administrative Agent, as
the case may be, which Taxes would not have been incurred or payable if such
Participant had been a Non-Domestic Lender that was entitled to deliver to the
Borrowers, the Administrative Agent or such Lender, and did in fact so deliver,
a duly completed and valid Form W-8BEN or W-8ECI (or applicable successor form)
entitling such Participant to receive payments under this Agreement without
deduction or withholding of any United States federal Taxes.

     Each Lender shall, as agent of Holdings and the Borrowers solely for the
purpose of this Section, record in book entries maintained by such Lender the
name and the amount of the participating interest of each Participant entitled
to receive payments in respect of any participating interests sold pursuant to
this Section.

     SECTION 11.12. REORGANIZATION TRANSACTION. Notwithstanding any provision in
this Agreement or any other Loan Document to the contrary, so long as there
shall not exist any pending or threatened action, suit, investigation,
litigation or proceeding pending or threatened in any court or before any
arbitrator or governmental instrumentality which contests the consummation of
any of the following transactions, upon an election by Holdings,

          (a) Holdings, at any time, in its sole discretion may,
     contemporaneously with the assumption and issuances referred to in CLAUSES
     (b) and (c) below, contribute all of its assets (including the Capital
     Securities of WRC) to WRC; PROVIDED that the Administrative Agent shall
     have a perfected pledge of, and security interest in and to all such assets
     so contributed as it had immediately prior to such contribution pursuant to
     such documentation and opinions in form and substance reasonably
     satisfactory

                                     -148-
<PAGE>

     to the Administrative Agent and its counsel as shall be necessary in the
     opinion of the Administrative Agent to create, perfect or maintain the
     collateral position of the Secured Parties therein;

          (b) WRC may, contemporaneously with the contribution referred to in
     CLAUSE (a) above and the issuances referred to in CLAUSE (c) below, assume
     substantially all of the liabilities of Holdings so long as (i) no
     Specified Default shall have occurred and be continuing on the date any
     such liabilities are to be assumed, nor would a Specified Default result
     from any such assumption and (ii) after giving effect to any such
     assumption, Holdings and the Borrowers shall be in PRO FORMA compliance
     with the covenants set forth in SECTION 7.2.4 for the most recent fully
     ended Fiscal Quarter preceding the date of such assumption;

          (c) WRC may, contemporaneously with the contribution and assumption
     referred to in CLAUSES (a) and (b) above, issue its common stock and its
     WRC PIK II Preferred Equity to Holdings so long as

               (A) no Specified Default shall have occurred and be continuing on
          the date of such issuance, nor would a Specified Default result from
          any such issuance;

               (B) after giving effect to such issuance, the Borrowers shall be
          in PRO FORMA compliance with the covenants set forth in SECTION 7.2.4
          for the most recent fully ended Fiscal Quarter preceding the date of
          such issuance; and

               (C) after giving effect to such issuance, the Administrative
          Agent shall have a perfected pledge of, and security interest in and
          to all of the issued and outstanding interests of Capital Securities
          of each Borrower (including the WRC PIK II Preferred Equity) as the
          Administrative Agent had immediately prior to such issuance in form
          and substance reasonably satisfactory to the Administrative Agent and
          its counsel, pursuant to such documentation and opinions as shall be
          necessary in the opinion of the Administrative Agent to create,
          perfect or maintain the collateral position of the Secured Parties
          therein; and

                                     -149-
<PAGE>

               (d) Holdings may distribute all of the WRC PIK II Preferred
          Equity to the PIK Preferred Equity Holders in exchange for all of the
          PIK Preferred Equity and distribute up to 3% of the outstanding WRC
          common stock held by Holdings in exchange for all or the remainder of
          the Holdings (Unit) Common Stock.

     The parties hereto agree to cooperate with each other in connection with
any such contribution or assumption or related transaction described in this
SECTION 11.12 to amend the Loan Documents to the extent reasonably necessary to
adjust for the effect of any such contribution, assumption or related
transaction described in this SECTION 11.12; PROVIDED that such amendments could
not reasonably be expected to have a material adverse effect on the rights or
remedies of any Secured Party under any Loan Document as in effect immediately
prior to any such amendment.

     SECTION 11.13. CONFIDENTIALITY. Each of the Agents and the Lenders agrees
to maintain the confidentiality of the Confidential Information (as defined
below), except that Confidential Information may be disclosed (a) to its and its
Affiliates' directors, officers, employees and agents, including accountants,
legal counsel and other advisors on a need-to-know basis (it being understood
that the Persons to whom such disclosure is made will be informed of the
confidential nature of such Confidential Information and instructed to keep such
Confidential Information confidential), (b) to the extent requested by any
regulatory authority, (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other party
to this Agreement, (e) in connection with the exercise of any remedies hereunder
or any suit, action or proceeding relating to this Agreement or the enforcement
of rights hereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to any assignee or participant
of, or any successor to, any of its rights or obligations under this Agreement,
or to any direct or indirect contractual counterparties in agreements relating
to Hedging Obligations or such contractual counterparties' professional
advisors, (g) with the consent of Holdings or (h) to the extent such
Confidential Information (i) becomes publicly available other than as a result
of a breach of this Section or (ii) becomes available to any Agent or any Lender
on a nonconfidential basis from a source other than Holdings or any of its
Subsidiaries. For the purposes of this Section, "Confidential Information" means
all information received from Holdings or any of its Subsidiaries relating to
its business, other than any such information that is available to the
Administrative Agent or

                                     -150-
<PAGE>

any Lender on a nonconfidential basis prior to disclosure by Holdings or any of
its Subsidiaries; PROVIDED that, in the case of information received from
Holdings or any of its Subsidiaries after the date hereof, such information is
clearly identified at the time of delivery as confidential. Any Person required
to maintain the confidentiality of Confidential Information as provided in this
Section shall be considered to have complied with its obligation to do so if
such Person has exercised the same degree of care to maintain the
confidentiality of such Confidential Information as such Person would accord to
its own confidential information.

     SECTION 11.14. OTHER TRANSACTIONS. Nothing contained herein shall preclude
the Administrative Agent, any Issuer or any other Lender from engaging in any
transaction, in addition to those contemplated by the Loan Documents, with
Holdings, either Borrower or any of their respective Affiliates in which
Holdings, such Borrower or such Affiliate is not restricted hereby from engaging
with any other Person.

     SECTION 11.15. INDEPENDENCE OF COVENANTS. All covenants contained in this
Agreement and each other Loan Document shall be given independent effect such
that, in the event a particular action or condition is not permitted by any of
such covenants, the fact that it would be permitted by an exception to, or be
otherwise within the limitations of, another covenant shall not, unless
expressly so provided in such first covenant, avoid the occurrence of a Default
or an Event of Default if such action is taken or such condition exists.

     SECTION 11.16. FORUM SELECTION AND CONSENT TO JURISDICTION. ANY LITIGATION
BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, ANY LOAN
DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL
OR WRITTEN) OR ACTIONS OF THE AGENTS, THE LENDERS, ANY ISSUER, HOLDINGS OR
EITHER BORROWER IN CONNECTION HEREWITH OR THEREWITH MAY BE BROUGHT AND
MAINTAINED IN THE COURTS OF THE STATE OF NEW YORK OR IN THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED, HOWEVER, THAT
ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE
BROUGHT, AT THE AGENTS' OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH
COLLATERAL OR OTHER PROPERTY MAY BE FOUND. HOLDINGS AND EACH BORROWER
IRREVOCABLY CONSENT TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE
PREPAID, OR BY PERSONAL SERVICE WITHIN OR

                                     -151-
<PAGE>

WITHOUT THE STATE OF NEW YORK AT THE ADDRESS FOR NOTICES SPECIFIED IN SECTION
11.2. HOLDINGS AND EACH BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVE, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER
MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT
REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM. TO THE EXTENT THAT HOLDINGS OR EITHER BORROWER HAS OR
HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY
LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT,
ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS
PROPERTY, HOLDINGS AND SUCH BORROWER HEREBY IRREVOCABLY WAIVE TO THE FULLEST
EXTENT PERMITTED BY LAW SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THE
LOAN DOCUMENTS.

     SECTION 11.17. WAIVER OF JURY TRIAL. EACH AGENT, EACH LENDER, EACH ISSUER,
HOLDINGS AND EACH BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE
TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHTS THEY MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH, EACH LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF SUCH AGENT, SUCH
LENDER, SUCH ISSUER, HOLDINGS OR SUCH BORROWER IN CONNECTION THEREWITH. HOLDINGS
AND EACH BORROWER ACKNOWLEDGE AND AGREE THAT THEY HAVE RECEIVED FULL AND
SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION OF EACH
OTHER LOAN DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A
MATERIAL INDUCEMENT FOR EACH AGENT, EACH LENDER AND EACH ISSUER ENTERING INTO
THE LOAN DOCUMENTS.

                                     -152-
<PAGE>

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

                                      WEEKLY READER CORPORATION,
                                        as a Borrower

                                      By: /s/ Charles Laurey
                                         -------------------------
                                         Title:

                                         Address: c/o Ripplewood Holdings, LLC
                                                  One Rockefeller Plaza
                                                  New York, NY  10020
                                         Facsimile No.: (212) 218-4699
                                         Attention: Charles Laurey

                                      JLC LEARNING CORPORATION,
                                         as a Borrower

                                      By: /s/ Charles Laurey
                                         -------------------------
                                         Title:

                                         Address: c/o Ripplewood Holdings, LLC
                                                  One Rockefeller Plaza
                                                  New York, NY  10020
                                         Facsimile No.: (212) 218-4699
                                         Attention: Charles Laurey

<PAGE>

                                      WRC MEDIA INC., as a Guarantor

                                      By: /s/ Charles Laurey
                                         -------------------------
                                         Title:

                                         Address: c/o Ripplewood Holdings, LLC
                                                  One Rockefeller  Plaza
                                                  New York, NY  10020
                                         Facsimile No.: (212) 218-4699
                                         Attention: Charles Laurey

                                      DLJ CAPITAL FUNDING, INC.,
                                         as the Syndication Agent

                                      By: /s/ Eugene Martin
                                         -------------------------
                                         Title:

                                         Address: 277 Park Avenue
                                                  New York, NY  10172
                                         Facsimile No.:  (212) 892-7542
                                         Attention:  Eugene Martin

                                     -155-
<PAGE>

                                      BANK OF AMERICA, N.A.,
                                         as the Administrative Agent

                                      By: /s/ Peter Hall
                                         -------------------------
                                         Title:

                                         Address: 100 North Tryon St.
                                                  NC1-007-07-01
                                                  Charlotte, NC  28255
                                         Facsimile No.: (704) 386-3270
                                         Attention:    Peter Hall

                                      GENERAL ELECTRIC CAPITAL CORPORATION,
                                         as the Documentation Agent

                                      By: /s/ Woodrow Broaders
                                         -------------------------
                                         Title: Authorized Signatory

                                         Address: 10 LaSalle Street
                                                  Suite 2700
                                                  Chicago, IL  60603
                                         Facsimile No.: (312) 419-5715
                                         Attention: Penny Friedman

                                     -156-
<PAGE>

                                      LENDERS:

                                      DLJ CAPITAL FUNDING, INC.

                                      By: /s/ Eugene Martin
                                         -------------------------
                                         Title: Senior Vice President

                                     -158-
<PAGE>

                                      Bank of America, N.A.

                                      By: /s/ Peter Hall
                                         -------------------------
                                         Title:

                                     -159-
<PAGE>

                                                                      SCHEDULE I

                     DISCLOSURE SCHEDULE TO CREDIT AGREEMENT

ITEM 6.7.  Litigation.

ITEM 6.8.  Existing Subsidiaries.

ITEM 6.11.  Employee Benefit Plans.

ITEM 6.12.  Environmental Matters.

ITEM 6.18(a) WRC Media Share Ownership.

ITEM 6.18(b) Weekly Reader Share Ownership.

ITEM 6.18(c) JLC Learning Corporation Share Ownership.

ITEM 7.1.10.  Copyrights

ITEM 7.1.13.  States with more than $1,000,000 Collateral

ITEM 7.2.2(b) Indebtedness to be Paid.

           CREDITOR                           OUTSTANDING PRINCIPAL AMOUNT
           --------                           ----------------------------

ITEM 7.2.2(c) Existing Indebtedness

ITEM 7.2.3(c) Ongoing Liens.

ITEM 7.2.5(a) Ongoing Investments.

<PAGE>

                                                                     SCHEDULE II

                                   PERCENTAGES

             Revolving Loan Commitment                       Term A
             -------------------------                       ------
                  Loans                           Term B Loans
                  -----                           ------------

                                      -ii-
<PAGE>

Section                                                                    Page
-------                                                                    ----

                                                                     SCHEDULE II

                           ADMINISTRATIVE INFORMATION

                                     -iii-
<PAGE>

                                                                               2

                                                                    SCHEDULE 6.7

                                   Litigation
                                   ----------

None.

<PAGE>

                                                                               3

                                                                    SCHEDULE 6.8

                              Existing Subsidiaries
                              ---------------------

WRC MEDIA INC.

     -    JLC Learning Corporation (a Delaware corporation)

     -    Weekly Reader Corporation (a Delaware corporation)

          -    Lifetime Learning Systems, Inc. (a Delaware corporation)

          -    American Guidance Service, Inc. (a Minnesota corporation)

               -    AGS International Sales, Inc. (a Minnesota corporation)

          -    Primedia Reference Inc. (a Delaware corporation)

               -    Funk & Wagnalls Yearbook Corporation (a Delaware
                    corporation)

               -    Gareth Stevens, Inc. (a Wisconsin corporation)

<PAGE>

                                                                               4

                                                                   SCHEDULE 6.11

                             Employee Benefit Plans
                             ----------------------

American Guidance Service, Inc. is obligated to provide disability and life
insurance benefits until December 31, 2000 to Larry Rutkowski, Gerald Adams,
Sharon Herpers and Michael Nabicht pursuant to their employment agreements.

<PAGE>

                                                                               5

                                                                   SCHEDULE 6.12

                              Environmental Matters
                              ---------------------

None.

<PAGE>

                                                                               6

                                                                SCHEDULE 6.18(a)

                            WRC Media Share Ownership
                            -------------------------

WRC MEDIA COMMON STOCK

          -    EAC III L.L.C. (4,848,635 shares)

          -    SGC Partners II LLC (1,694,039 shares)

          -    Certain executives of WRC Media, Weekly Reader and JLC Learning
               Corporation (107,523 shares)

          -    Holders of Unit Common Stock (205,656 shares)

WRC MEDIA PREFERRED STOCK (3,000,000 SHARES)

          -    DLJ Merchant Banking Partners and affiliated entities as set
               forth in the Offering Memorandum

          -    The Northwestern Mutual Life Insurance Company

          -    Certain other investors

<PAGE>

                                                                               7

                                                                SCHEDULE 6.18(b)

                          Weekly Reader Share Ownership
                          -----------------------------

WEEKLY READER VOTING COMMON STOCK

         -     WRC Media Inc. (2,685,670 shares)

         -     PRIMEDIA, Inc. (144,330 shares)

WEEKLY READER PREFERRED STOCK

         -     WRC Media Inc. (3,000,000 shares)

<PAGE>

                                                                               8

                                                                SCHEDULE 6.18(c)

                    JLC Learning Corporation Share Ownership
                    ----------------------------------------

JLC LEARNING CORPORATION COMMON STOCK

         -    WRC Media Inc. (10,000 shares)

<PAGE>

                                                                               9

                                                                 SCHEDULE 7.1.10

     JLC LEARNING CORPORATION
     ------------------------

                                   COPYRIGHTS
                                   ----------

     All copyrights for JLC Learning Corporation are filed in the United States.

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
PRODUCT NAME                                                              DATE FILED/ISSUED          COPYRIGHT NUMBER
------------                                                              -----------------          ----------------
<S>                                                                       <C>                        <C>
Advantage Mgmt Sys. 1.1                                                   March 23, 1998             TX-4-620-089
Advantage Mgmt. Sys. 1.2                                                  March 23, 1998             TX-4-620-087
Advantage Mgmt. Sys. 2.0                                                  March 20, 1998             TX-4-613-682
Advantage Mgmt. Sys. 2.1                                                  March 20, 1998             TX-4-613-679
AIMS 2.2.4 Adv. Instruc. Mgmt. Sys.                                       March 20, 1998             TX-4-613-680
Compass 2.2 for Windows/MacIntosh                                         March 23, 1998             TX-4-620-090
Compass 2.2 for ILA                                                       April 7, 1998              TX-4-634-221
Compass 2.3 for Windows/MacIntosh                                         March 23, 1998             TX-620-094
Compass 3.0 for Windows/MacIntosh                                         March 20, 1998             TX-4-613-681
LMS 3.15                                                                  April 7, 1998              TX-4-634-220
Peer to Peer Install Compass/Tomorrow's Promise 3.1                       September 30, 1998         TX-4-626-266
Personal Compass 1.0 for Windows/ MacIntosh                               March 23, 1998             TX-4-620-099
Worldware 2.0                                                             March 27, 1998             TX-4-623-250
Worldware 2.01                                                            March 20, 1998             TX-4-620-084
RIMS I                                                                    April 7, 1998              TX-4-634-224
RIMS II 1.72 for MAC                                                      March 27, 1998             TX-4-623-266
Jostens Comprehensive Assessment Tests/Compass                            March 23, 1998             TX-4-620-091
Jostens Comprehensive Assessment Tests/Advantage                          March 23, 1998             TX-4-620-088
Learning Expedition Language Arts                                         March 27, 1998             TX-4-623-253
Learning Expedition Mathematics Level 1-3                                 March 27, 1998             TX-4-623-256
Learning Expedition Mathematics Level 4-8                                 March 27, 1998             TX-4-623-248
Learning Expedition Math Higher Level Activities                          March 27, 1998             TX-4-623-252
Learning Expedition Reading Levels 1-3                                    March 27, 1998             TX-4-623-255
Learning Expedition Reading Levels 4-8                                    March 27, 1998             TX-4-623-247
Learning Expedition Written Expression                                    March 27, 1998             TX-4-623-251
Learning First Elementary Mathematics                                     March 23, 1998             TX-4-620-095
Learning First Skills and Employability Skills                            March 23, 1998             TX-4-620-102
Learning First Foundations in Mathematics                                 March 27, 1998             TX-4-623-259
Learning First Middle School Mathematics                                  March 27, 1998             TX-4-623-258
Learning First Foundations in Reading                                     March 27, 1998             TX-4-623-260
Learning First New Edition: Elementary Mathematics                        March 23, 1998             TX-4-620-103
Learning First New Edition: Elementary Reading                            March 23, 1998             TX-4-623-106
Integrated Language Arts - Primary Level                                  March 25, 1998             TX-4-623-208
Tomorrow's Promise Biology                                                March 23, 1998             TX-4-620-092
Tomorrow's Promise Chemistry                                              March 23, 1998             TX-4-620-096
Tomorrow's Promise Earth Science                                          March 23, 1998             TX-4-620-097
Tomorrow's Promise Language Arts Level 3                                  March 20, 1998             TX-4-613-670
Tomorrow's Promise Language Arts Level 4                                  March 20, 1998             TX-4-613-672
Tomorrow's Promise Language Arts Level 5                                  March 20, 1998             TX-4-613-676
Tomorrow's Promise Language Arts Level 6                                  March 20, 1998             TX-4-613-674
Tomorrow's Promise Language Arts Level 7                                  March 20, 1998             TX-4-613-671
-----------------------------------------------------------------------------------------------------------------------

<PAGE>

                                                                              10

<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
PRODUCT NAME                                                              DATE FILED/ISSUED          COPYRIGHT NUMBER
------------                                                              -----------------          ----------------
<S>                                                                       <C>                        <C>
Tomorrow's Promise Language Arts Level 8                                  March 20, 1998             TX-4-613-677
Tomorrow's Promise Language Arts Essay Levels 6-8                         March 27, 1998             TX-4-623-246
Tomorrow's Promise Mathematics Level K                                    March 20, 1998             TX-4-613-675
Tomorrow's Promise Mathematics Level 1                                    March 20, 1998             TX-4-613-687
Tomorrow's Promise Mathematics Level 2                                    March 20, 1998             TX-4-613-690
Tomorrow's Promise Mathematics Level 3                                    March 20, 1998             TX-4-613-685
Tomorrow's Promise Mathematics Level 4                                    March 20, 1998             TX-4-613-688
Tomorrow's Promise Mathematics Level 5                                    March 20, 1998             TX-4-613-686
Tomorrow's Promise Mathematics Level 6                                    March 20, 1998             TX-4-613-683
Tomorrow's Promise Mathematics Level 7                                    March 20, 1998             TX-4-613-693
Tomorrow's Promise Mathematics Level 8                                    March 20, 1998             TX-4-613-689
Tomorrow's Promise Physical Science                                       March 23, 1998             TX-4-620-093
Tomorrow's Promise Problem Solving Strategies 6-8                         March 27, 1998             TX-4-623-245
Tomorrow's Promise Reading Level K                                        March 20, 1998             TX-4-613-697
Tomorrow's Promise Reading Level 1                                        March 20, 1998             TX-4-613-684
Tomorrow's Promise Reading Level 2                                        March 20, 1998             TX-4-613-673
Tomorrow's Promise Reading Level 3                                        March 20, 1998             TX-4-613-696
Tomorrow's Promise Reading Level 4                                        March 20, 1998             TX-4-613-691
Tomorrow's Promise Reading Level 5                                        March 20, 1998             TX-4-613-695
Tomorrow's Promise Reading Level 6                                        March 20, 1998             TX-4-613-692
Tomorrow's Promise Reading Level 7                                        March 20, 1998             TX-4-613-698
Tomorrow's Promise Reading Level 8                                        March 20, 1998             TX-4-613-694
Tomorrow's Promise Spelling Level 1                                       March 23, 1998             TX-4-620-098
Tomorrow's Promise Spelling Level 2                                       March 20, 1998             TX-4-613-678
Action Math                                                               March 27, 1998             TX-4-623-265
Community Exploration                                                     April 7, 1998              TX-4-634-223
English Language Development - Primary                                    March 25, 1998             TX-4-623-213
Steps to English Language Development - Beginner Level                    March 25, 1998             TX-4-623-215
Steps to English Language Development -                                   March 25, 1998             TX-4-623-214
Intermediate/Advanced
Explorations in Science, Earth, Physical, Biology                         March 27, 1998             TX-4-623-267
Friday Afternoon                                                          April 7, 1998              TX-4-634-222
Learning With Literature                                                  March 23, 1998             TX-4-620-101
Literature Based Mathematics                                              March 27, 1998             TX-4-623-257
Middle School Mathematics                                                 March 23, 1998             TX-4-620-100
Reading Skills Collection Reading All Around You                          April 7, 1998              TX-4-634-226
Reading Skills Collection Read to Imagine                                 April 7, 1998              TX-4-634-227
Reading Skills Collection Reading for Meaning                             April 7, 1998              TX-4-634-228
Reading Skills Collection Read to Think                                   April 7, 1998              TX-4-634-229
Spanish Language Arts                                                     March 27, 1998             TX-4-623-264
Stems                                                                     April 7, 1998              TX-4-634-225
Tapestry                                                                  March 27, 1998             TX-4-623-244
Writing Expedition 1.1 for Mac/Windows                                    March 20, 1998             TX-4-613-669
8th Grade Math Course Outline                                             March 27, 1998             TX-1-912-790
Grade 8 Math Support Materials                                            March 27, 1998             TX-1-920-115
8th Grade Math Teaching Aide                                              March 27, 1998             TX-1-920-450
Integrated Classroom Learning System
Mathematics Documentation                                                 March 27, 1998             TX-1-922-225
Spanish I Teachers' Guide                                                 March 27, 1998             TX-2-680-774
Spanish I: Course Outline, Answer Keys, Worksheets, Tests                 March 27, 1998             TX-2-686-570
ICLS: Spanish Courseware Sample                                           March 27, 1998             TX-2-723-547
-----------------------------------------------------------------------------------------------------------------------

<PAGE>

                                                                              11

<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
PRODUCT NAME                                                              DATE FILED/ISSUED          COPYRIGHT NUMBER
------------                                                              -----------------          ----------------
<S>                                                                       <C>                        <C>
Language Arts 3: Teachers' Guide                                          March 27, 1998             TX-2-671-312
Language Arts 3 Course Outline, Answer Keys, Worksheets,                  March 27, 1998             TX-2-671-313
Tests
Calculus: Teachers' Guide                                                 March 27, 1998             TX-2-125-878
Calculus: Course Outline, Answers Keys, Worksheets, Tests                 March 27, 1998             TX-2-125-879
Calculus: I C L S courseware sample                                       March 27, 1998             TX-2-172-445
Algebra I: Teachers' Guide                                                March 27, 1998             TX-2-178-697
Algebra I: Support materials sample                                       March 27, 1998             TX-2-178-698
Algebra I: Integrated classroom learning system: course                   March 27, 1998             TX-2-179-056
outline, answer keys, worksheets, tests
Integrated Classroom Learning System: Mathematics: Grade 7:               March 27, 1998             TX-2-289-047
Support materials sample
Integrated Classroom Learning System: Trig/Analysis:                      March 27, 1998             TX-2-289-047
Teachers' Guide
Integrated Classroom Learning System: Trig/Analysis: Course               March 27, 1998             TX-2-289-049
outline, answer keys, worksheets, tests
Integrated Classroom Learning System: Mathematics: Grade 7:               March 27, 1998             TX-2-289-050
course outline, answers keys, worksheets, tests
Integrated Classroom Learning System: Mathematics: Grade 7:               March 27, 1998             TX-2-289-051
Teachers' Guide
Geometry: course outline, answer keys worksheets, tests                   March 27, 1998             TX-2-311-453
Geometry: Teachers' Guide                                                 March 27, 1998             TX-2-311-454
Integrated Classroom Learning System: Algebra II, Teachers'               March 27, 1998             TX-2-326-534
Guide
Trigonometry/math analysis: support material's sample                     March 27, 1998             TX-2-326-535
Algebra II: support material sample                                       March 27, 1998             TX-2-345-457
Algebra II: course outline, answer keys, worksheets, tests                March 27, 1998             TX-2-351-931
Geometry: support material sample                                         March 27, 1998             TX-2-400-824
ICLS courseware sample: Language Arts 6                                   March 27, 1998             TX-2-582-332
Integrated Classroom Learning System, Language Arts 6:                    March 27, 1998             TX-2-582-333
course outline, answer keys, worksheets, tests
ICLS courseware sample: Language Arts                                     March 27, 1998             TX-2-582-334
Integrated Classroom Learning System Language Arts 5:                     March 27, 1998             TX-2-582-335
course outline, answer keys, worksheets, test
Integrated Classroom Learning System: Language Arts 5:                    March 27, 1998             TX-2-582-336
Teachers' Guide
Integrated Classroom Learning System: Language Arts 6:                    March 27, 1998             TX-2-582-337
Teachers' Guide
Language Arts 4: Teachers' Guide                                          March 27, 1998             TX-2-582-936
Language Arts 4: course outline, answer keys, worksheets tests            March 27, 1998             TX-2-582-937
ICLS courseware sample                                                    March 27, 1998             TX-2-584-925
ICLS courseware sample                                                    March 27, 1998             TX-2-584-928
Secondary Language Arts: course outline, answer keys,                     March 27, 1998             TX-2-593-770
worksheets, tests
Math - Level 5: Teachers' Guide                                           March 27, 1998             TX-2-671-309
German 1: Teachers' Guide                                                 March 27, 1998             TX-2-671-310
Physics: course outline, answer keys, worksheets, tests                   March 27, 1998             TX 2-671-315
ICLS courseware sample: 6th Grade Math                                    March 27, 1998             TX-2-672-548
Physics: Teachers' Guide                                                  March 27, 1998             TX-2-672-549
German                                                                    March 27, 1998             TX-2-672-555
Physics                                                                   March 27, 1998             TX-2-672-556
Math, Level 5                                                             March 27, 1998             TX-2-672-557
-----------------------------------------------------------------------------------------------------------------------

<PAGE>

                                                                              12

<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
PRODUCT NAME                                                              DATE FILED/ISSUED          COPYRIGHT NUMBER
------------                                                              -----------------          ----------------
<S>                                                                       <C>                        <C>
ICLS courseware sample: 4th Grade Math                                    March 27, 1998             TX-2-678-479
Math - Level 6: Teachers' Guide                                           March 27, 1998             TX-2-680-775
German 1: course outline, answer keys, worksheets, tests                  March 27, 1998             TX-2-686-566
ICLS courseware sample: 5th Grade Math                                    March 27, 1998             TX-2-686-567
Math - Level 6: course outline, answer keys, worksheets, tests            March 27, 1998             TX-2-686-568
Math - Level 4: course outline, answer keys, worksheets, tests            March 27, 1998             TX-2-686-569
Mathematics: Grade 4: Teachers' Guide                                     March 27, 1998             TX-2-686-571
ICLS Spanish 1: courseware sample                                         March 27, 1998             TX-2-723-547
ICLS courseware sample: Language Arts 3 Ideal Learning: a                 March 27, 1998             TX-2-455-456
preschool curriculum for home use/created by Brett W. Rogers
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

                       Copyrights transferred from Hartley

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
PRODUCT NAME                                                             DATE FILED/ISSUED           COPYRIGHT NUMBER
------------                                                              -----------------          ----------------
<S>                                                                       <C>                        <C>
Homonyms                                                                 September 14, 1998          TX-1-919-673
Antonyms/Synonyms                                                        September 14, 1998          TX-1-923-273
Consonants                                                               September 14, 1998          TX-1-923-274
Vowels Tutorial                                                          September 14, 1998          TX-1-923-582
Number Words Level 2                                                     September 14, 1998          TX-1-925-907
Create Your Own - Vocabulary French                                      September 14, 1998          TX-1-926-180
Adjectives                                                               September 14, 1998          TX-1-926-189
Student Word Study                                                       September 14, 1998          TX-1-926-372
Super Wordfind                                                           September 14, 1998          TX-1-926-444
Create Intermediate                                                      September 14, 1998          TX-1-926-933
Create Vocabulary                                                        September 14, 1998          TX-1-926-934
Create Your Own - Vocabulary Spanish                                     September 14, 1998          TX-1-927-484
Print Your Own - Bingo                                                   September 14, 1998          TX-1-928-566
Vocabulary Controlled                                                    September 14, 1998          TX-1-928-661
Presidents Physical Fitness                                              September 14, 1998          TX-1-928-664
Letter Recognition                                                       September 14, 1998          TX-1-928-811
Create Your Own - Elementary                                             September 14, 1998          TX-1-929-475
Parent Reporting                                                         September 14, 1998          TX-1-929-605
Fact Sheets                                                              September 14, 1998          TX-1-931-540
Word - a - Tech                                                          September 14, 1998          TX-1-940-789
Create Your Own - CCD Lessons                                            September 14, 1998          TX-1-956-151
Metric Skills I & II                                                     September 14, 1998          TX-1-951-715
Adverbs                                                                  September 14, 1998          TX-1-965-834
Wordsearch                                                               September 14, 1998          TX-1-965-935
The Medalist Series: Continents                                          September 14, 1998          TX-2-012-225
Vowels                                                                   September 14, 1998          TX-2-013-525
Prescriptive Math Drill                                                  September 14, 1998          TX-2-023-375
Analogies Tutorial I and II                                              September 14, 1998          TX-2-025-231
Chariots, Cougars, and Kings                                             September 14, 1998          TX-2-025-232
Kittens, Kids and a Frog                                                 September 14, 1998          TX-2-025-233
Scuffy and Friends                                                       September 14, 1998          TX-2-025-234
The Medalist Series: Presidents                                          September 14, 1998          TX-2-025-245
Analogies Advanced I and II                                              September 14, 1998          TX-2-026-237
The Medalist Series: Women in History                                    September 14, 1998          TX-2-026-763
Famous Scientists                                                        September 14, 1998          TX-2-026-764
Number Words Level 1                                                     September 14, 1998          TX-2-026-823
Create You Own - Spell It                                                September 14, 1998          TX-2-027-287
Perplexing Puzzles                                                       September 14, 1998          TX-2-027-420
-----------------------------------------------------------------------------------------------------------------------

<PAGE>

                                                                              13

<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
PRODUCT NAME                                                             DATE FILED/ISSUED           COPYRIGHT NUMBER
------------                                                              -----------------          ----------------
<S>                                                                       <C>                        <C>
Temperature Experiments                                                  September 14, 1998          TX-2-029-315
Create Your Own - Medalists                                              September 14, 1998          TX-2-029-641
Chemical Elements                                                        September 14, 1998          TX-2-029-797
The Medalist Series: States                                              September 14, 1998          TX-2-029-798
Integers/Equations I & II                                                September 14, 1998          TX-2-030-245
Match Espanol                                                            September 14, 1998          TX-2-030-375
Reading For Meaning Level 1 Fairy Tales and Rhymes                       September 14, 1998          TX-2-030-397
Compound Words and Contractions                                          September 14, 1998          TX-2-030-398
Early Skills                                                             September 14, 1998          TX-2-030-399
Expanded Notation                                                        September 14, 1998          TX-2-031-150
Expanded Notation                                                        September 14, 1998          TX-2-031-151
Fact or Opinion                                                          September 14, 1998          TX-2-031-425
Cause and Effect                                                         September 14, 1998          TX-2-031-444
Match Francais                                                           September 14, 1998          TX-2-031-613
Figurative Language I and II                                             September 14, 1998          TX-2-031-654
The Medalist Series: Black Americans                                     September 14, 1998          TX-2-033-164
Binary Math                                                              September 14, 1998          TX-2-038-700
Create Your Own - Lessons                                                September 14, 1998          TX-2-038-794
What's First? What's Next?                                               September 14, 1998          TX-2-057-107
Sense or Nonsense                                                        September 14, 1998          TX-2-057-108
Little Riddles                                                           September 14, 1998          TX-2-057-109
Word Families II                                                         September 14, 1998          TX-2-057-110
U.S. History                                                             September 14, 1998          TX-2-057-111
Harper and Sellers - A Guide to the Classics: Macbeth                    September 14, 1998          TX-2-080-883
Harper and Sellers - A Guide to the Classics: The Adventures             September 14, 1998          TX-2-081-007
of Huckleberry Finn
Reading For Meaning Level 2: Fairy Tales and Rhymes                      September 14, 1998          TX-2-159-771
Double 'N' Trouble                                                       September 14, 1998          TX-2-180-698
Word Ladders                                                             September 14, 1998          TX-2-212-911
Capitalization Practice and Test                                         September 14, 1998          TX-2-219-871
Print Your Own Bingo Plus                                                September 14, 1998          TX-2-240-339
Create Your Own Lessons Advanced                                         September 14, 1998          TX-2-242-832
Shakespeare                                                              September 14, 1998          TX-2-243-374
Opposites                                                                September 14, 1998          TX-2-247-992
Milt's Math Drills                                                       September 14, 1998          TX-2-249-310
Drawing Conclusions and Problem Solving                                  September 14, 1998          TX-2-258-394
Verb Usage III                                                           September 14, 1998          TX-2-279-559
Verb Usage I                                                             September 14, 1998          TX-2-315-676
Brick by Brick Level 1 Building Usage Skills                             September 14, 1998          TX-2-369-842
Brick by Brick Level 2 Building Usage Skills                             September 14, 1998          TX-2-370-451
Brick by Brick Level 1 Building Comprehension                            September 14, 1998          TX-2-373-860
Brick by Brick Level 4 Building Usage Skills                             September 14, 1998          TX-2-375-505
Brick by Brick Level 2 Building Vocabulary                               September 14, 1998          TX-2-378-720
Brick by Brick Level 4 Building Comprehension                            September 14, 1998          TX-2-384-016
Vocabulary Dolch                                                         September 14, 1998          TX-2-398-411
Brick by Brick Level 5 Building Comprehension                            September 14, 1998          TX-2-400-368
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

                     Copyrights being transferred from Ideal

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
PRODUCT NAME                                                     DATE FILED/ISSUED                   COPYRIGHT NUMBER
------------                                                     -----------------                   ----------------
<S>                                                              <C>                                 <C>
Calculus: Teacher's Guide                                        Transfer Application Pending        TX-2-125-878
                                                                 as of June 18, 1998
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                                                              14
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
PRODUCT NAME                                                     DATE FILED/ISSUED                   COPYRIGHT NUMBER
------------                                                     -----------------                   ----------------
<S>                                                              <C>                                 <C>

Calculus: Outline, Answer Keys, Worksheets, Tests                Transfer Application Pending        TX-2-125-879
                                                                 as of June 18, 1998
Calculus: Support Materials Sample                               Transfer Application Pending        TX-2-172-445
                                                                 as of June 18, 1998
Algebra I: Teacher's Guide                                       Transfer Application Pending        TX-2-178-697
                                                                 as of June 18, 1998
Algebra I: Support Materials Sample                              Transfer Application Pending        TX-2-178-698
                                                                 as of June 18, 1998
Algebra I: Outline, Answer Keys, Worksheets, Tests               Transfer Application Pending        TX-2-179-056
                                                                 as of June 18, 1998
Mathematics Grade 7: Support Materials Sample                    Transfer Application Pending        TX-2-289-047
                                                                 as of June 18, 1998
Trigonometry/Math Analysis: Teacher's Guide                      Transfer Application Pending        TX-2-289-048
                                                                 as of June 18, 1998
Trigonometry/Math Analysis: Outline, Answer Keys,                Transfer Application Pending        TX-2-289-049
Worksheets, Tests                                                as of June 18, 1998
Mathematics Grade 7: Outline, Answer Keys,                       Transfer Application Pending        TX-2-289-050
Worksheets, Tests                                                as of June 18, 1998
Mathematics Grade 7: Teacher's Guide                             Transfer Application Pending        TX-2-289-051
                                                                 as of June 18, 1998
Geometry: Course Outline, Answer Keys,                           Transfer Application Pending        TX-2-311-453
Worksheets, Tests                                                as of June 18, 1998
Geometry: Teacher's Guide                                        Transfer Application Pending        TX-2-311-454
                                                                 as of June 18, 1998
Algebra II: Teacher's Guide                                      Transfer Application Pending        TX-2-326-534
                                                                 as of June 18, 1998
Trigonometry/Math Analysis: Support Materials                    Transfer Application Pending        TX-2-326-535
Sample                                                           as of June 18, 1998
Algebra II: Support Materials Sample                             Transfer Application Pending        TX-2-345-457
                                                                 as of June 18, 1998
Algebra II: Outline, Answer Keys, Worksheets, Tests              Transfer Application Pending        TX-2-351-931
                                                                 as of June 18, 1998
Geometry: Support Materials Sample                               Transfer Application Pending        TX-2-400-824
                                                                 as of June 18, 1998
ICLS Courseware Sample Language Arts 6                           Transfer Application Pending        TX-2-582-332
                                                                 as of June 18, 1998
Language Arts 6 Course Outline, Answer Keys,                     Transfer Application Pending        TX-2-582-333
Worksheets, Tests                                                as of June 18, 1998
ICLS Courseware Sample: Language Arts 5                          Transfer Application Pending        TX-2-582-334
                                                                 as of June 18, 1998
ICLS Courseware Sample: Language Arts 5                          Transfer Application Pending        TX-2-582-334
                                                                 as of June 18, 1998
Language Arts 5: Course Outline, Answer Keys,                    Transfer Application Pending        TX-2-582-335
Worksheets, Tests                                                as of June 18, 1998
Language Arts 5: Teacher's Guide                                 Transfer Application Pending        TX-2-582-336
                                                                 as of June 18, 1998
Language Arts 6: Teacher's Guide                                 Transfer Application Pending        TX-2-582-337
                                                                 as of June 18, 1998
Language Arts 4: Teacher's Guide                                 Transfer Application Pending        TX-2-582-936
                                                                 as of June 18, 1998
Language Arts 4: Course Outline, Answer Keys,                    Transfer Application Pending        TX-2-582-937
Worksheets, Tests                                                as of June 18, 1998
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                                                              15
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
PRODUCT NAME                                                     DATE FILED/ISSUED                   COPYRIGHT NUMBER
------------                                                     -----------------                   ----------------
<S>                                                              <C>                                 <C>
ICLS Courseware Sample: Secondary Language Arts                  Transfer Application Pending        TX-2-584-925
                                                                 as of June 18, 1998
ICLS Courseware Sample: Language Arts 4                          Transfer Application Pending        TX-2-593-770
                                                                 as of June 18, 1998
Secondary Language Arts: Course Outline, Answer                  Transfer Application Pending        TX-2-686-566
Keys, Worksheets, Tests                                          as of June 18, 1998
Math - Level 5: Teacher's Guide                                  Transfer Application Pending        TX-2-671-309
                                                                 as of June 18, 1998
German I: Teacher's Guide                                        Transfer Application Pending        TX-2-671-310
                                                                 as of June 18, 1998
Physics: Course Outlines, Answer Keys, Worksheets,               Transfer Application Pending        TX-2-671-315
Tests                                                            as of June 18, 1998
ICLS Courseware Sample: 6th Grade Math                           Transfer Application Pending        TX-2-672-548
                                                                 as of June 18, 1998
Physics: Teacher's Guide                                         Transfer Application Pending        TX-2-672-549
                                                                 as of June 18, 1998
ICLS Courseware Sample: German                                   Transfer Application Pending        TX-2-672-555
                                                                 as of June 18, 1998
ICLS Courseware Sample: Physics                                  Transfer Application Pending        TX-2-672-556
                                                                 as of June 18, 1998
Math - Level 5: Course Outline, Answer Keys,                     Transfer Application Pending        TX-2-672-557
Worksheets, Tests                                                as of June 18, 1998
ICLS Courseware Sample: 4th Grade Math                           Transfer Application Pending        TX-2-678-479
                                                                 as of June 18, 1998
Math - Level 6: Teacher's Guide                                  Transfer Application Pending        TX-2-680-775
                                                                 as of June 18, 1998
German I: Course Outline, Answer Keys, Worksheets,               Transfer Application Pending        TX-2-686-566
Tests                                                            as of June 18, 1998
ICLS Courseware Sample: 5th Grade Math                           Transfer Application Pending        TX-2-686-567
                                                                 as of June 18, 1998
Math - Level 6: Course Outline, Answer Keys,                     Transfer Application Pending        TX-2-686-568
Worksheets, Tests                                                as of June 18, 1998
Math - Level 4: Course Outline, Answer Keys,                     Transfer Application Pending        TX-2-686-569
Worksheets, Tests                                                as of June 18, 1998
Mathematics Grade 4: Teacher's Guide                             Transfer Application Pending        TX-2-686-571
                                                                 as of June 18, 1998
ICLS Courseware Sample: Language Arts 3                          Transfer Application Pending        TX-2-739-191
                                                                 as of June 18, 1998
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                                                              16

     PRIMEDIA REFERENCE INC.
     -----------------------
                                   COPYRIGHTS
                                   ----------

     All copyrights for Primedia Reference Inc. are filed in the United States.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
PRODUCT NAME                                         COPYRIGHT NUMBER
------------                                         ----------------
<S>                                                  <C>
The 1999 World Almanac                               TX-4-898-925

--------------------------------------------------------------------------------
</TABLE>

     *    Copyright registration submitted every November, upon publication, for
          each new edition of The World Almanac. Copyright registration will be
          submitted shortly for the 2000 World Almanac (publication date:
          11/30/99)

     FUNK & WAGNALLS YEARBOOK CORPORATION
     -------------------------------------

                                   COPYRIGHTS
                                   ----------

     All copyrights for Funk & Wagnalls Yearbook Corporation are filed in the
United States.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
PRODUCT NAME                                         COPYRIGHT NUMBER
------------                                         ----------------
<S>                                                  <C>
Funk & Wagnalls New Encyclopedia                     TX-4-860-036
(full text as of 12/31/98)
--------------------------------------------------------------------------------
</TABLE>

     *    Copyright registration submitted every 3 months for the updated and
          expanded Funk & Wagnalls New Encyclopedia full text database. Because
          of the slowness of the copyright office, Funk & Wagnalls has not yet
          received any of the copyright registration certificates for any of the
          first three quarters of 1999.

     AMERICAN GUIDANCE SERVICE, INC.
     -------------------------------

                                   COPYRIGHTS
                                   ----------

     All copyrights for American Guidance Service Inc. are filed in the United
States.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
PRODUCT NAME                                         COPYRIGHT NUMBER
------------                                         ----------------
<S>                                                  <C>
PPVT                                                 TX4-531-097

K-TEA                                                TX4-737-590

DIAL                                                 TX2-907-985

BASC                                                 TX4-172-450

Vineland                                             TX3-431-949

WRMT                                                 TX2-276-301

KeyMath Test                                         TX2-380-291

OWLS (LC/OE Version)                                 TX3-803-842

--------------------------------------------------------------------------------

<PAGE>

                                                                              17

<CAPTION>
--------------------------------------------------------------------------------
<S>                                                  <C>
OWLS (WE Version)                                    TX4-198-026

PIAT                                                 TX2-624-349

GFTA                                                 TX1-856-134

K-BIT                                                TX3-003-231

K-ABC (Easel 1)                                      TX1-563-401

K-ABC (Easel 2)                                      TX1-499-140

K-ABC (Easel 3)                                      TX1-452-750

K-ABC (Test Record Form)                             TX1-499-139

K-ABC (Manual)                                       TX1-458-788

K-ABC (Photo Cards)                                  TX-176-650

K-ABC (ASSIST)                                       TX1-412-461

K-ABC (Scoring Manual)                               TX1-458-787

K-ABC (Supplemental Forms)                           TX2-268-847

--------------------------------------------------------------------------------
</TABLE>

     *    Copyrights are for educational tests. Information provided above is
          for the 10 most valuable tests of an approximate total of 40.
          Information for the remaining tests will be provided as it is
          received.

Other Copyrights
----------------

WRC and its subsidiaries (including those listed above) generate numerous
copyrights each week in connection with numerous ongoing publishing activities.
None of these copyrights are individually material and they are not listed
above.

<PAGE>

                                                                              18

                                                                 SCHEDULE 7.1.13

                   States with more than $1,000,000 Collateral
                   -------------------------------------------

         -        Connecticut

         -        Minnesota

         -        New Jersey

         -        Ohio

         -        Wisconsin

<PAGE>

                                                                              19

                                                               SCHEDULE 7.2.2(b)

                             Indebtedness to be Paid
                             -----------------------

JLC LEARNING CORPORATION

     -    Existing Bank of America, N.A. credit facility

     -    SGC Partners II LLC Senior Subordinated 13.375% Note

     -    The Northwestern Mutual Life Insurance Company Senior Subordinated
          13.375% Note

<PAGE>

                                                                              20

                                                               SCHEDULE 7.2.2(c)

                              Existing Indebtedness
                              ---------------------

Weekly Reader Corporation, Gareth Stevens, Inc. and American Guidance Service,
Inc. have indebtedness secured by the liens set forth on Schedule 7.2.3 (c).

<PAGE>

                                                                              21

                                                               SCHEDULE 7.2.3(c)

<TABLE>
<CAPTION>
                                                ONGOING LIENS
----------------------------------------------------------------------------------------------------------------
                                                                                       UCC-1
                                                                                       -----
     DEBTOR            SECURED PARTY           FILING OFFICE/FILE NUMBER          DESCRIPTION SUMMARY
     ------            -------------           -------------------------          -------------------
<S>                 <C>                        <C>                              <C>
----------------------------------------------------------------------------------------------------------------
Weekly              WAM!NET, Inc.              Connecticut State                A WAM!NET Network
Reader              6100 West 110th Street     0001895389                       Access Device, comprising
Corporation         Minneapolis, MN            12/15/98                         a case containing a Silicone
                    55438                                                       Graphics central processing
                                                                                unit, router, a Channel
                                                                                Service Unit and Data Service
                                                                                Unit modem and uninterrupted
                                                                                power source.
----------------------------------------------------------------------------------------------------------------
Weekly              Oce' Printing Systems      New Jersey SoS                   2090 LED Printer
Reader              USA, Inc.                  1804287                          (refurbished)
Corporation         5600 Broken Sound          11/25/97
                    Blvd.
                    Boca Raton, FL  33487
----------------------------------------------------------------------------------------------------------------
Gareth              The Brewery Works,         Wisconsin SoS                    All equipment, fixtures,
Stevens, Inc.       Inc.                       1095127                          inventory, documents
                    219 West Galena Street     11/20/89                         relating to inventory,
                    Milwaukee, WI  53212                                        general intangibles,
                                               1095128                          accounts, contract rights,
                                               11/20/89                         chattel paper and
                                                                                instruments, all additions
                                                                                and accessions to, all spare
                                               1460562                          and repair parts, special
                                               10/10/94                         tools, equipment and
                                                                                replacements for, all
                                                                                returned or repossessed
                                               1460561                          goods, and all proceeds and
                                               10/10/94                         products.
----------------------------------------------------------------------------------------------------------------
American            Screen Actors Guild,       Minnesota SoS                    Debtor(s) grant a continuing
Guidance            Inc.                       1996213                          security interest in all right,
Service, Inc.       5757 Wilshire Blvd.        12/15/97                         title and interest of
                    Los Angeles, CA                                             Debtor(s) in the television
AGS Media           90036-3600                                                  project currently entitled,
                                                                                "Duso Animation" and all
                                                                                properties and things of
                                                                                value pertaining thereto.
----------------------------------------------------------------------------------------------------------------
American            Screen Actors Guild,       Kentucky, Jefferson County       Debtor(s) grant a continuing
Guidance            Inc.                       97-10362                         security interest in all right,
Service, Inc.       5757 Wilshire Blvd.        12/16/97                         title and interest of
                    Los Angeles, CA                                             Debtor(s) in the television
AGS Media           90036-3600                                                  project currently entitled,
                                                                                "Duso Animation" and all
                                                                                properties and things of
                                                                                value pertaining thereto.
----------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                                                              22

                                                               SCHEDULE 7.2.5(a)

                               Ongoing Investments
                               -------------------

          -    JLC Learning Corporation is a shareholder of 640 preferred shares
               of ESI Inc., d/b/a Elemental Software, a California corporation,
               with offices at 5927 Priestly Drive, Suite 100, Carlsbad, CA,
               92008

          -    JLC Learning Corporation is a shareholder of 5619 shares of
               common stock in PictureTel Corporation, a Delaware corporation
               with offices at 100 Minuteman Road, Andover, MA, 01810. The
               shares are held in escrow as a result of the sale of Starlight
               Network.

          -    JLC Learning Corporation is a limited partner in Basics
               Partnership, a Utah limited partnership formed November 30, 1982.<PAGE>

                                                                 EXECUTION COPY

                          SECURITY AND PLEDGE AGREEMENT

         This SECURITY AND PLEDGE AGREEMENT (as amended, supplemented, amended
and restated or otherwise modified from time to time, this "SECURITY AND PLEDGE
AGREEMENT"), dated as of November 17, 1999, is made by WEEKLY READER
CORPORATION, a Delaware corporation ("WRC"), and JLC LEARNING CORPORATION, a
Delaware corporation ("JLC" and, together with WRC, the "BORROWERS"), WRC MEDIA
INC. (formerly known as EAC II INC.), a Delaware corporation and parent of JLC
("HOLDINGS"), PRIMEDIA REFERENCE INC., a Delaware corporation ("PRI"), AMERICAN
GUIDANCE SERVICE INC., a Minnesota corporation ("AGS"), LIFETIME LEARNING
SYSTEMS, INC., a Delaware corporation ("LLS"), AGS INTERNATIONAL SALES, INC., a
Minnesota corporation ("AIS"), FUNK & WAGNALLS YEARBOOK CORPORATION, a Delaware
corporation ("FW"), and GARETH STEVENS, INC., a Wisconsin corporation ("GS"),
each other Subsidiary (as defined below) of each of the Borrowers a signatory
hereto, and each other Person which may from time to time hereafter become a
party hereto pursuant to SECTION 7.5 (each, individually, an "ADDITIONAL
GRANTOR", and collectively, the "ADDITIONAL GRANTORS", and together with each
Borrower, Holdings, each such Subsidiary, each, individually, a "GRANTOR", and
collectively, the "GRANTORS"), in favor of BANK OF AMERICA, N.A., as
administrative agent (together with its successor(s) thereto, in such capacity
the "ADMINISTRATIVE AGENT") for each of the Secured Parties.

                              W I T N E S S E T H :

         WHEREAS, pursuant to a Credit Agreement, dated as of November 17, 1999
(as amended, supplemented, amended and restated or otherwise modified from time
to time, the "CREDIT AGREEMENT"), among the Borrowers, Holdings, the various
financial institutions as are or may become parties thereto (collectively, the
"LENDERS"), DLJ Capital Funding, Inc., as the Syndication Agent (in such
capacity, the "SYNDICATION AGENT"), the Lead Arranger and the Sole Book Running
Manager, the Administrative Agent and General Electric Capital Corporation, as
the documentation agent (in such capacity, the "DOCUMENTATION AGENT") for the
Lenders, the Lenders and the Issuers have extended Commitments to make Credit
Extensions to the Borrowers;

         WHEREAS, as a condition precedent to the making of the Credit
Extensions (including the initial Credit Extension)

<PAGE>

under the Credit Agreement, each Grantor is required to execute and deliver this
Security and Pledge Agreement;

         WHEREAS, each Grantor has duly authorized the execution, delivery and
performance of this Security and Pledge Agreement; and

         WHEREAS, it is in the best interests of each Grantor to execute this
Security and Pledge Agreement inasmuch as such Grantor will derive substantial
direct and indirect benefits from the Credit Extensions made from time to time
to the Borrowers by the Lenders and the Issuers pursuant to the Credit
Agreement;

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and in order to induce the Lenders
and the Issuers to make Credit Extensions (including the initial Credit
Extension) to the Borrowers pursuant to the Credit Agreement, and to induce the
Secured Parties to enter into Rate Protection Agreement(s), each Grantor agrees,
for the benefit of each Secured Party, as follows:

                                    ARTICLE I

                                   DEFINITIONS

         SECTION 1.1. CERTAIN TERMS. The following terms (whether or not
underscored) when used in this Security and 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):

         "ADDITIONAL GRANTOR" and "ADDITIONAL GRANTORS" are defined in the
PREAMBLE.

         "ADMINISTRATIVE AGENT" is defined in the PREAMBLE.

         "BORROWERS" is defined in the PREAMBLE.

         "COLLATERAL" is defined in SECTION 2.1.

         "COMMODITY ACCOUNT" means an account maintained by a Commodity
Intermediary in which a Commodity Contract is carried out for a Commodity
Customer.

         "COMMODITY CONTRACT" means a commodity futures contract, an option on a
commodity futures contract, a commodity option or any other contract that, in
each case,

                                        2

<PAGE>

is (a) traded on or subject to the rules of a board of trade that has been
designated as a contract market for such a contract pursuant to the federal
commodities laws or (b) traded on a foreign commodity board of trade, exchange
or market, and is carried on the books of a Commodity Intermediary for a
Commodity Customer.

         "COMMODITY CUSTOMER" means a Person for whom a Commodity Intermediary
carries a Commodity Contract on its books.

         "COMMODITY INTERMEDIARY" means (a) a Person who is registered as a
futures commission merchant under the federal commodities laws or (b) a Person
who in the ordinary course of business provides clearance or settlement services
for a board of trade that has been designated as a contract market pursuant to
federal commodities laws.

         "COMPUTER HARDWARE AND SOFTWARE COLLATERAL" means:

                  (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 (including both source code, object
         code and all related applications and data files), whether now owned,
         licensed or leased or hereafter acquired by any 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
         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.

                                        3

<PAGE>

         "CONTROL AGREEMENT" means an agreement in form and substance
satisfactory to the Administrative Agent which provides for the Administrative
Agent to have "control" (as defined in Section 8-106 of the U.C.C., as such term
relates to Investment Property (other than certificated Securities or Commodity
Contracts), or as used in Section 9-115(e) of the U.C.C., as such term relates
to Commodity Contracts).

         "COPYRIGHT COLLATERAL" means all copyrights of each Grantor, whether
registered or unregistered, now or hereafter in force throughout the world
including all of such Grantor's right, title and interest in and to all
copyrights registered in the United States Copyright Office or anywhere else in
the world and also including the copyrights referred to in ITEM A of SCHEDULE V
attached hereto, and all applications for registration thereof, whether pending
or in preparation, all copyright licenses, including each copyright license
referred to in ITEM B of SCHEDULE V 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 licenses, royalties, income, payments,
claims, damages and proceeds of suit.

         "CREDIT AGREEMENT" is defined in the FIRST RECITAL.

         "DEPOSIT ACCOUNT" means a demand, time, savings, passbook or other
account maintained with a bank, savings and loan association, credit union or
other financial institution.

         "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 Securities constituting Collateral, but
shall not include Dividends.

         "DIVIDENDS" means cash dividends and cash distributions with respect to
any Securities constituting Collateral made in the ordinary course of business
and not a liquidating dividend.

         "ENTITLEMENT HOLDER" means a Person identified in the records of a
Securities Intermediary as the Person having a Security Entitlement against the
Securities Intermediary. If a Person acquires a Security Entitlement by virtue
of

                                        4

<PAGE>

Section 8-501(b)(2) or (3) of the U.C.C., such Person is the Entitlement Holder.

         "EQUIPMENT" is defined in CLAUSE (d) of SECTION 2.1.

         "FINANCIAL ASSET" means (a) a Security, (b) an obligation of a Person
or a share, participation or other interest in a Person or in property or an
enterprise of a Person, which is, or is of a type, dealt with in or traded on
financial markets, or which is recognized in any area in which it is issued or
dealt in as a medium for investment or (c) any property that is held by a
Securities Intermediary for another Person in a Securities Account if the
Securities Intermediary has expressly agreed with the other Person that the
property is to be treated as a Financial Asset under Article 8 of the U.C.C. As
the context requires, the term Financial Asset shall mean either the interest
itself or the means by which a Person's claims to it is evidenced, including a
certificated or an uncertificated Security, a certificate representing a
Security or a Security Entitlement.

         "GRANTOR" and "GRANTORS" are defined in the PREAMBLE.

         "HOLDINGS" is defined in the PREAMBLE.

         "INTELLECTUAL PROPERTY COLLATERAL" means, collectively,
the Computer Hardware and Software Collateral, the Copyright
Collateral, the Patent Collateral, the Trademark Collateral
and the Trade Secrets Collateral.

         "INTERCOMPANY NOTE" means, with respect to any Grantor, as the payee
thereunder, a promissory note substantially in the form of EXHIBIT A hereto
(with such modifications as the Administrative Agent may consent to, such
consent not to be unreasonably withheld), which promissory note shall to the
extent required under clause (f)(i) of Section 7.2.2 of the Credit Agreement
evidence all intercompany loans which may be made from time to time by such
Grantor to either Borrower or any of their respective Subsidiaries as the maker
of such promissory note, as such promissory note, in accordance with SECTION
4.2.4, is amended, modified or supplemented from time to time, together with any
promissory note of such maker taken in extension or renewal thereof or
substitution therefor.

         "INVESTMENT PROPERTY" means all Securities (whether certificated or
uncertificated), Security Entitlements, Securities Accounts, Commodity Contracts
and Commodity

                                        5

<PAGE>

Accounts of any Grantor, whether now owned or hereafter acquired by any Grantor.

         "INVENTORY" is defined in CLAUSE (e) of SECTION 2.1

         "JLC" is defined in the PREAMBLE.

         "LENDER" and "LENDERS" are defined in the FIRST
RECITAL.

         "MASTER DEPOSIT ACCOUNT" means (a) in the case of WRC and its
Subsidiaries, the Deposit Account of WRC established and maintained with the
Administrative Agent and designated by WRC as its Master Deposit Account, (b) in
the case of JLC and its Subsidiaries, the Deposit Account of JLC established and
maintained with the Administrative Agent and designated by JLC as its Master
Deposit Account, and (c) in the case of Holdings, either such Deposit Account.

         "MOTOR VEHICLES" shall mean motor vehicles, tractors, trailers and
other like property, whether or not the title thereto is governed by a
certificate of title or ownership.

         "PATENT COLLATERAL" means:

                  (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 III attached hereto;

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

                  (c) all patent licenses, including each patent license
         referred to in ITEM B of SCHEDULE III attached hereto; 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 or patent
         application referred to in ITEM A of SCHEDULE III attached hereto, and
         for breach or enforcement of any patent license, including any patent
         license referred

                                        6

<PAGE>

         to in ITEM B of SCHEDULE III attached hereto, and all rights
         corresponding thereto throughout the world.

         "RECEIVABLES" is defined in CLAUSE (f) of SECTION 2.1.

         "RELATED CONTRACTS" is defined in CLAUSE (f) of SECTION 2.1.

         "SECURED OBLIGATIONS" is defined in SECTION 2.2.

         "SECURITIES" means any obligations of an issuer or any shares,
participations, or other interests in an issuer or in property or an enterprise
of an issuer which (a) are represented by a certificate representing a security
in bearer or registered form, or the transfer of which may be registered upon
books maintained for that purpose by or on behalf of such issuer, (b) are one of
a class or series or by its terms is divisible into a class or series of shares,
participations, interests or obligations and (c) (i) are, or are of a type,
dealt with or traded on securities exchanges or securities markets or (ii) are a
medium for investment and by their terms expressly provide that they are a
security governed by Article 8 of the U.C.C.

         "SECURITIES ACCOUNT" means an account to which a Financial Asset is or
may be credited in accordance with an agreement under which the Person
maintaining the account undertakes to treat the Person for whom the account is
maintained as entitled to exercise rights that comprise the Financial Asset.

         "SECURITIES ACT" is defined in SECTION 6.2.

         "SECURITY ENTITLEMENTS" means the rights and property interests of an
Entitlement Holder with respect to a Financial Asset.

         "SECURITY AND PLEDGE AGREEMENT" is defined in the PREAMBLE.

         "SECURITY INTERMEDIARY" means (a) a clearing corporation or (b) a
Person, including a bank or broker, that in the ordinary course of its business
maintains securities accounts for others and is acting in that capacity.

         "TRADEMARK COLLATERAL" means:

                  (a) all trademarks, trade names, corporate names, company
         names, business names, fictitious business

                                        7

<PAGE>

         names, trade styles, service marks, certification marks, collective
         marks, logos, designs and other source of business identifiers (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 other 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 IV attached hereto;

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

                  (c) all reissues, extensions or renewals of any of the items
         described in CLAUSE (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 any 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 IV 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.

         "TRADE SECRETS COLLATERAL" means all 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 any 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 VI attached hereto,
and including the right to sue for and to enjoin and to collect

                                        8

<PAGE>

damages for the actual or threatened misappropriation of any Trade Secret and
for the breach or enforcement of any such Trade Secret license.

         "U.C.C." means the Uniform Commercial Code, as in effect from time to
time in the State of New York.

         "WRC" is defined in the PREAMBLE.

         SECTION 1.2. CREDIT AGREEMENT DEFINITIONS. Unless otherwise defined
herein or the context otherwise requires, terms used in this Security and Pledge
Agreement, including its preamble and recitals, have the meanings provided in
the Credit Agreement.

         SECTION 1.3. U.C.C. DEFINITIONS. Unless otherwise defined herein or in
the Credit Agreement or the context otherwise requires, terms for which meanings
are provided in the U.C.C. are used in this Security and Pledge Agreement,
including its preamble and recitals, with such meanings.

                                   ARTICLE II

                                SECURITY INTEREST

         SECTION 2.1. GRANT OF SECURITY. Each Grantor hereby assigns, pledges,
hypothecates, charges, mortgages, delivers, and transfers to the Administrative
Agent for its benefit and the ratable benefit of each of the Secured Parties,
and hereby grants to the Administrative Agent for its benefit and the ratable
benefit of each of the Secured Parties, a security interest in all of the
following, to the extent now or hereafter owned or acquired by such Grantor (the
"COLLATERAL"):

                  (a) all Intercompany Notes in which such Grantor has an
         interest (including each Intercompany Note described in ITEM A of
         SCHEDULE I hereto);

                  (b) all interest and other payments and rights with respect to
         each Intercompany Note in which such Grantor has an interest;

                  (c) all Investment Property in which such Grantor has an
         interest (including the Securities of each issuer described in ITEM B
         of SCHEDULE I hereto); PROVIDED, that, in the case of Investment
         Property consisting of (i) Securities of an issuer that is a Foreign
         Subsidiary of such Grantor, the pledge of such

                                        9

<PAGE>

         Securities of such issuer shall be limited to the extent such pledge
         would not exceed 65% of the total combined voting power of all classes
         of Securities of such Foreign Subsidiary entitled to vote and (ii)
         Securities of JLC or WRC that contemporaneously with the issuance
         thereof to Holdings by JLC or WRC, as the case may be, are being
         transferred or exchanged by Holdings to a holder of substantially
         identical Securities of Holdings as a direct result of a Permitted
         Equity Exchange in accordance with the Credit Agreement, such
         Securities shall not constitute "Collateral";

                  (d) all equipment in all of its forms (including all Motor
         Vehicles) of such Grantor, wherever located, including all parts
         thereof and all accessions, additions, attachments, improvements,
         substitutions and replacements thereto and therefor and all accessories
         related thereto (any and all of the foregoing being the "EQUIPMENT");

                  (e) all inventory in all of its forms of such Grantor,
         wherever located, including

                           (i) all raw materials and work in process therefor,
                  finished goods thereof, and materials used or consumed in the
                  manufacture or production thereof,

                           (ii) all goods in which such Grantor has an interest
                  in mass or a joint or other interest or right of any kind
                  (including goods in which such Grantor has an interest or
                  right as consignee), and

                           (iii) all goods which are returned to or repossessed
                  by such Grantor,

         and all accessions thereto, products thereof and documents therefor
         (any and all such inventory, materials, goods, accessions, products and
         documents being the "INVENTORY");

                  (f) all accounts, contracts, contract rights, chattel paper,
         documents, instruments, and general intangibles (including tax refunds)
         of such Grantor, whether or not arising out of or in connection with
         the sale or lease of goods or the rendering of services, and all rights
         of such Grantor now or hereafter existing in and to all security
         agreements, guaranties,

                                       10
<PAGE>

         leases and other contracts securing or otherwise relating to any such
         accounts, contracts, contract rights, chattel paper, documents,
         instruments, and general intangibles (any and all such accounts,
         contracts, contract rights, chattel paper, documents, instruments, and
         general intangibles being the "RECEIVABLES", and any and all such
         security agreements, guaranties, leases and other contracts being the
         "RELATED CONTRACTS");

                  (g) all Deposit Accounts of such Grantor (including its Master
         Deposit Account in the case where such Grantor is a Borrower) and all
         cash, checks, drafts, notes, bills of exchange, money orders and other
         like instruments, if any, now owned or hereafter acquired, held therein
         (or in sub-accounts thereof) and all certificates and instruments, if
         any, from time to time representing or evidencing such investments, and
         all interest, earnings and proceeds in respect thereof;

                  (h)  all Intellectual Property Collateral of such
         Grantor;

                  (i) 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;

                  (j) all of such Grantor's other property and rights of every
         kind and description and interests therein; and

                  (k) all products, offspring, rents, issues, profits, returns,
         income and proceeds of and from any and all of the foregoing Collateral
         (including proceeds which constitute property of the types described in
         CLAUSES (a) through (j), proceeds deposited from time to time in any
         lock box or Deposit Account of such Grantor (including its Master
         Deposit Account in the case where such Grantor is a Borrower), and, to
         the extent not otherwise included, all payments under insurance
         (whether or not the Administrative 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, "Collateral" shall not include any general
intangibles or other rights described in

                                       11

<PAGE>

CLAUSE (f) or (h) above arising under any contracts, instruments, licenses or
other documents described in such clause as to which the grant of a security
interest would constitute a violation of a valid and enforceable restriction in
favor of a third party on such grant, unless and until any required consents
shall have been obtained. Each Grantor agrees to use its best efforts to obtain
any such required consent.

         SECTION 2.2. SECURITY FOR OBLIGATIONS. This Security and Pledge
Agreement secures the payment of all Obligations of each Grantor now or
hereafter existing under this Security and Pledge Agreement and each other Loan
Document to which such Grantor is or may become a party (collectively, the
"SECURED OBLIGATIONS").

         SECTION 2.3. DELIVERY OF CERTIFICATED SECURITIES AND INTERCOMPANY
NOTES. All Collateral comprised of Intercompany Notes and certificated
Securities shall be delivered to and held by or on behalf of (and, in the case
of the Intercompany Notes, endorsed to the order of) the Administrative 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.

         SECTION 2.4. DIVIDENDS ON SECURITIES AND PAYMENTS ON INTERCOMPANY
NOTES. In the event that any Dividend is to be paid on any Security that
constitutes Collateral or any payment of principal or interest is to be made on
any Intercompany Note at a time when no Specified Default has occurred and is
continuing or would result therefrom, such Dividend or payment may be paid
directly to the applicable Grantor. If any such Specified Default has occurred
and is continuing, then any such Dividend or payment shall be paid directly to
the Administrative Agent.

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

                  (a) remain in full force and effect until payment in full in
         cash of all Secured Obligations, the termination or expiration of all
         Letters of Credit, the termination of all Rate Protection Agreements
         and the termination of all Commitments,

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

                                       12

<PAGE>

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

Without limiting the generality of the foregoing CLAUSE (a)(iii), any Lender may
assign or otherwise transfer (in whole or in part) any Note or Credit Extension
held by it to any other Person, and such other Person shall thereupon become
vested with all the rights and benefits in respect thereof granted to such
Lender under any Loan Document (including this Security and Pledge Agreement) or
otherwise, subject, however, to any contrary provisions in such assignment or
transfer, and to the provisions of Section 11.11 and Article X of the Credit
Agreement. Upon (i) the sale, transfer or other disposition of Collateral in
accordance with Section 7.2.11 of the Credit Agreement or (ii) the payment in
full in cash of all Obligations, the termination or expiration of all Letters of
Credit, the termination of all Rate Protection Agreements and the termination of
all Commitments, the security interests granted herein shall automatically
terminate with respect to (x) such Collateral (in the case of CLAUSE (A)) or (B)
all Collateral (in the case of CLAUSE (B)). Upon any such sale, transfer,
disposition or termination, the Administrative Agent will, at such Grantor's
sole expense, deliver to such Grantor, without any representations, warranties
or recourse of any kind whatsoever, all applicable certificated Securities and
all applicable Intercompany Notes, together with all other applicable Collateral
held by the Administrative Agent hereunder, and execute and deliver to such
Grantor such documents as such Grantor shall reasonably request to evidence such
termination (including such documents as such Grantor shall reasonably request
to remove the notation of the Administrative Agent as lienholder on any
certificate of title for any applicable Motor Vehicle).

         SECTION 2.6. GRANTOR REMAINS LIABLE. Anything herein to the contrary
notwithstanding

                  (a) each 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 and
         Pledge Agreement had not been executed,

                  (b) the exercise by the Administrative Agent of any of its
         rights hereunder shall not release any Grantor from any of its duties
         or obligations under any

                                       13

<PAGE>

         such contracts or agreements included in the Collateral, and

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

         SECTION 2.7. SECURITY INTEREST ABSOLUTE. All rights of the
Administrative Agent and the security interests granted to the Administrative
Agent hereunder, and all obligations of each Grantor hereunder, shall be
absolute and unconditional, irrespective of

                  (a)  any lack of validity or enforceability of the
         Credit Agreement, any Note or any other Loan Document;

                  (b)  the failure of any Secured Party or any
         holder of any Note

                           (i) to assert any claim or demand or to enforce any
                  right or remedy against any Borrower, any other Obligor or any
                  other Person under the provisions of the Credit Agreement, any
                  Note, any other Loan Document or otherwise, or

                           (ii) to exercise any right or remedy against any
                  other guarantor of, or collateral securing, any Secured
                  Obligations;

                  (c) any change in the time, manner or place of payment of, or
         in any other term of, all or any of the Secured Obligations or any
         other extension, compromise or renewal of any Secured Obligations;

                  (d) any reduction, limitation, impairment or termination of
         any Secured Obligations for any reason, including any claim of waiver,
         release, surrender, alteration or compromise, and shall not be subject
         to (and each Grantor hereby waives any right to or claim of) any
         defense or setoff, counterclaim, recoupment or termination whatsoever
         by reason of the invalidity, illegality, nongenuineness, irregularity,
         compromise, unenforceability of, or any other event or occurrence
         affecting, any Secured Obligations or otherwise;

                                       14

<PAGE>

                  (e) any amendment to, rescission, waiver, or other
         modification of, or any consent to departure from, any of the terms of
         the Credit Agreement, any Note or any other Loan Document;

                  (f) any addition, exchange, release, surrender or
         non-perfection of any collateral (including the Collateral), or any
         amendment to or waiver or release of or addition to or consent to
         departure from any guaranty, for any of the Secured Obligations; or

                  (g) any other circumstances which might otherwise constitute a
         defense available to, or a legal or equitable discharge of, any
         Borrower, any other Obligor, any surety or any guarantor.

         SECTION 2.8. POSTPONEMENT OF SUBROGATION, ETC. Each Grantor hereby
agrees that it will not exercise any rights which it may acquire by reason of
any payment made hereunder, whether by way of subrogation, reimbursement or
otherwise, until the prior payment in full in cash of all Secured Obligations,
the termination or expiration of all Letters of Credit, the termination of all
Rate Protection Agreements and the termination of all Commitments. Any amount
paid to any Grantor on account of any payment made hereunder prior to the
payment in full in cash of all Secured Obligations shall be held in trust for
the benefit of the Secured Parties and each holder of a Note and shall
immediately be paid to the Secured Parties and each holder of a Note and
credited and applied against the Secured Obligations, whether matured or
unmatured, in accordance with the terms of the Credit Agreement; PROVIDED,
HOWEVER, that if

                  (a) such Grantor has made payment to the Secured Parties and
         each holder of a Note of all or any part of the Secured Obligations,
         and

                  (b) all Secured Obligations have been paid in full in cash,
         all Letters of Credit have been terminated or expired, all Rate
         Protection Agreements have been terminated and all Commitments have
         been permanently terminated,

each Secured Party and each holder of a Note agrees that, at the requesting
Grantor's request, the Secured Parties and the holders of the Notes will execute
and deliver to such Grantor appropriate documents (without recourse and without
representation or warranty) necessary to evidence the transfer by subrogation to
such Grantor of an interest in

                                       15

<PAGE>

the Secured Obligations resulting from such payment by such Grantor. In
furtherance of the foregoing, for so long as any Secured Obligations,
Commitments or Letters of Credit remain outstanding or any Rate Protection
Agreement remains in full force and effect, each Grantor shall refrain from
taking any action or commencing any proceeding against any Borrower or any other
Obligor (or its successors or assigns, whether in connection with a bankruptcy
proceeding or otherwise) to recover any amounts in respect of payments made
under this Security and Pledge Agreement to any Secured Party or any holder of a
Note.

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

         SECTION 3.1. REPRESENTATIONS AND WARRANTIES. Each Grantor represents
and warrants to each Secured Party insofar as the representations and warranties
contained herein are applicable to such Grantor and its properties, as set forth
in this ARTICLE III, and except as set forth or may be otherwise provided in the
applicable Foreign Pledge Agreement with respect to an issuer of any Security
constituting Collateral that is a Foreign Subsidiary of such Grantor.

         SECTION 3.2. AS TO SECURITIES. All Securities constituting Collateral
that are issued by each Subsidiary of such Grantor (a) are duly authorized and
validly issued, fully paid, and non-assessable and (b) constitute all of the
issued and outstanding Securities of such Subsidiary (except, with respect to
CLAUSE (b), (i) in the case of each such Subsidiary that is a Foreign Subsidiary
of such Grantor, in which case, such Securities constitute 65% of the total
combined voting power of all classes of Securities of such Foreign Subsidiary
entitled to vote, (ii) in the case of JLC, the JLC PIK Preferred Equity, if any
(and to the extent issued to the holders thereof in exchange therefor by JLC,
preferred stock of JLC that is identical to the JLC PIK Preferred Equity), the
JLC Warrants and the common stock of JLC issued upon the exercise of the JLC
Warrants (but solely to the extent such common stock does not constitute more
than 13.1%, at the time of such exercise, of the common stock of JLC on a fully
diluted basis) and (iii) in the case of WRC, the WRC PIK Preferred Equity, if
any (and to the extent issued to the holders thereof in exchange therefor by
WRC, preferred stock of WRC that is identical to the WRC PIK Preferred Equity),
the WRC Warrants, the common stock of WRC issued upon the exercise

                                       16

<PAGE>

of the WRC Warrants (but solely to the extent such common stock does not
constitute more than 13.1%, at the time of such exercise, of the common stock of
WRC on a fully diluted basis), the common stock of WRC that is issued in
exchange for Holdings (Unit) Common Stock (but solely to the extent such common
stock does not constitute more than 2.85%, at the time of such exercise, of the
common stock of WRC on a fully diluted basis) pursuant to a Permitted Common
Stock Exchange described in clause (ii) of the definition thereof). Except as
otherwise specified in the immediately preceding sentence, all of the Securities
of each Subsidiary of such Grantor are in certificated form and have been
pledged to the Administrative Agent by such Grantor.

         SECTION 3.3. AS TO INTERCOMPANY NOTES. In the case of each Intercompany
Note, all of such Intercompany 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 3.4. LOCATION OF COLLATERAL, ETC. All of the Equipment,
Inventory and lock boxes of such Grantor are respectively located at the places
specified in Sections 3(e), (g) and (c) of the Perfection Certificate delivered
by such Grantor. None of the Equipment and Inventory has, within the four months
preceding the date of this Security and Pledge Agreement (if then owned by such
Grantor), been located at any place other than the places specified in Sections
3(e) and (g), respectively, of the Perfection Certificate delivered by such
Grantor. The place(s) of business and chief executive office of such Grantor and
the office(s) where such Grantor keeps its records concerning the Receivables,
and all originals of all chattel paper which evidence Receivables, are
respectively located at the addresses set forth in Sections 3(d), (a) and (b) of
the Perfection Certificate delivered by such Grantor. Such Grantor has no trade
names other than those set forth in Section 1(d) of the Perfection Certificate
delivered by such Grantor. During the four months preceding the date hereof,
such Grantor has not been known by any legal name nor has it had a federal
taxpayer identification number different from the ones set forth in Section 1(a)
(except that Holdings was formerly known as EAC II Inc.) and 2(a), respectively,
of the Perfection Certificate delivered by such Grantor, nor has such Grantor
been the subject of any merger or other corporate reorganization, except as
disclosed pursuant to Section 1(c) of the Perfection Certificate delivered by
such Grantor. If the Collateral includes any Inventory located in the State of
California, such Grantor is not a "retail merchant" within the meaning

                                       17

<PAGE>

of Section 9102 of the Uniform Commercial Code - Secured Transactions of the
State of California. All Receivables evidenced by a promissory note or other
instrument, negotiable document or chattel paper have been duly endorsed and
accompanied by duly executed instruments of transfer or assignment, all in form
and substance satisfactory to the Administrative Agent and delivered and pledged
to the Administrative Agent pursuant to SECTION 4.10. Such Grantor is not a
party to any Federal, state or local government contract except as set forth in
SCHEDULE II hereto.

         SECTION 3.5. OWNERSHIP, NO LIENS, ETC. Such Grantor owns its Collateral
free and clear of any Lien, security interest, charge or encumbrance except for
the security interest created by this Security and Pledge Agreement and except
in the case of Collateral not consisting of Securities and Intercompany Notes as
permitted by the Credit Agreement. No effective 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
Administrative Agent relating to this Security and Pledge Agreement or as have
been filed in connection with Liens permitted pursuant to Section 7.2.3 of the
Credit Agreement or as to which a duly executed termination statement relating
to such financing statement or other instrument has been delivered to the
Administrative Agent on the Closing Date.

         SECTION 3.6. POSSESSION AND CONTROL. Such Grantor has exclusive
possession and control of its Equipment and Inventory.

         SECTION 3.7. NEGOTIABLE DOCUMENTS, INSTRUMENTS AND CHATTEL PAPER. If
requested by the Administrative Agent, such Grantor has, contemporaneously
herewith, delivered to the Administrative Agent possession of all originals of
all negotiable documents, instruments and chattel paper currently owned or held
by such Grantor duly endorsed in blank.

         SECTION 3.8.  INTELLECTUAL PROPERTY COLLATERAL.  With
respect to any Intellectual Property Collateral the loss,
impairment or infringement of which might have a Material
Adverse Effect:

                  (a) to the best knowledge of the Grantor, such Intellectual
         Property Collateral is subsisting and has not been adjudged invalid or
         unenforceable, in whole or in part;

                                       18

<PAGE>

                  (b) to the best knowledge of the Grantor, 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 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 in countries in which
         the failure to so file and/or record could reasonably have a Material
         Adverse Effect and its claims to the Copyright Collateral in the United
         States Copyright Office and in corresponding offices in countries in
         which the failure to so file and/or record could reasonably have a
         Material Adverse Effect;

                  (d) to the best knowledge of the Grantor, 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 such Grantor is the
         exclusive owner of the entire and unencumbered right, title and
         interest in and to such Intellectual Property Collateral;

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

                  (f) to the best knowledge of the Grantor, such Grantor owns
         directly or is entitled to use by license or otherwise, all patents,
         Trademarks, Trade Secrets, copyrights, licenses, technology, know-how,
         processes and rights with respect to any of the foregoing used in or
         necessary for the conduct of such Grantor's business.

         SECTION 3.9. VALIDITY, ETC. This Security and Pledge Agreement creates
a valid security interest in the Collateral securing the payment of the Secured
Obligations, and

                  (a) in the case of Collateral comprised of certificated
         Securities or instruments, upon the delivery of such Collateral to the
         Administrative Agent, such security interest will be a valid first
         priority perfected security interest;

                                       19

<PAGE>

                  (b) in the case of Collateral comprised of uncertificated
         Securities and other Investment Property (other than certificated
         Securities), upon the Administrative Agent obtaining "control" (as
         defined in Section 8-106 of the U.C.C., as such term relates to
         Investment Property (other than certificated Securities or Commodity
         Contracts), or as used in Section 9-115(e) of the U.C.C., as such term
         relates to Commodity Contracts) of such Collateral and the filing of
         the Uniform Commercial Code financing statements delivered by the
         Grantor having an interest in such Collateral to the Administrative
         Agent with respect to such Collateral, such security interest will be a
         valid first priority perfected security interest;

                  (c) in the case of Collateral comprised of Motor Vehicles,
         upon the recordation or notation of the Administrative Agent's Lien on
         the certificates of title or ownership in respect of such Motor
         Vehicles and the filing of the Uniform Commercial Code financing
         statements delivered by the Grantor having an interest in such Motor
         Vehicles to the Administrative Agent with respect to such Collateral,
         such security interest will be a valid first priority perfected
         security interest;

                  (d) in the case of Collateral comprised of the Master Deposit
         Accounts, (i) such security interest is a valid first priority
         perfected security interest or (ii) if applicable law would not
         characterize such security interest as "perfected" or "first priority",
         the Administrative Agent has rights with respect to such Collateral
         that are senior to any other Person that obtains a judicial lien on or
         execution against such Collateral or obtains a lien thereon granted by
         the holder of such Collateral; and

                  (e) in the case of all other Collateral in which a security
         interest may be perfected by the filing of Uniform Commercial Code
         financing statements, upon the filing of the Uniform Commercial Code
         financing statements delivered by the Grantor to the Administrative
         Agent with respect to such Collateral, such security interest will be a
         valid first priority perfected security interest.

Each Grantor has filed all Uniform Commercial Code financing statements referred
to above in the appropriate offices therefor (or has provided the Administrative
Agent with copies thereof suitable for filing in such offices) and has taken all
of the other actions referred to above necessary

                                       20
<PAGE>

to create perfected, first-priority security interests in the applicable
Collateral.

         SECTION 3.10. AUTHORIZATION, APPROVAL, ETC. Except as have been
obtained or made and are in full force and effect (or otherwise provided for to
the satisfaction of the Agents), 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, the pledge by such Grantor of any Collateral pursuant
         hereto or for the execution, delivery and performance of this Security
         and Pledge Agreement by such Grantor,

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

                  (c) for the exercise by the Administrative Agent of the voting
         or other rights provided for in this Security and Pledge Agreement, or,
         except with respect to any Securities issued by a Subsidiary of such
         Grantor, as may be required in connection with a disposition of such
         Securities by laws affecting the offering and sale of securities
         generally, the remedies in respect of the Collateral pursuant to this
         Security and Pledge Agreement.

         SECTION 3.11. COMPLIANCE WITH LAWS. Such Grantor is in compliance with
the requirements of all applicable laws (including the provisions of the Fair
Labor Standards Act), rules, regulations and orders of every governmental
authority, the non-compliance with which could reasonably be expected to have a
Material Adverse Effect or which could reasonably be expected to materially
adversely affect 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 Secured Obligations shall remain unpaid, any Rate
Protection Agreements shall remain in full force and effect, any Letters of
Credit shall be outstanding or any Lender shall

                                       21

<PAGE>

have any outstanding Commitment, such Grantor will, unless the Required Lenders
shall otherwise consent in writing, perform, comply with and be bound by the
obligations set forth in this ARTICLE IV.

         SECTION 4.2. AS TO INVESTMENT PROPERTY AND INTERCOMPANY NOTES; ETC.

         SECTION 4.2.1. CERTIFICATED SECURITIES. Such Grantor shall cause each
of its Subsidiaries (a) to provide in its Organic Documents that all equity
interests in such Subsidiaries shall be Securities governed by Article 8 of the
Uniform Commercial Code and (b) to ensure that all such interests are evidenced
by certificated Securities.

         SECTION 4.2.2. INVESTMENT PROPERTY (OTHER THAN CERTIFICATED
SECURITIES). With respect to any Investment Property (other than certificated
Securities) of such Grantor, such Grantor shall (a) cause a Control Agreement
relating to such Investment Property to be executed and delivered in favor of
the Administrative Agent and (b) deliver Uniform Commercial Code financing
statements which when filed will result in the Administrative Agent having a
first priority perfected security interest in such Investment Property.

         SECTION 4.2.3. STOCK POWERS, ETC. Such Grantor agrees that all
certificated Securities constituting Collateral delivered by such Grantor
pursuant to this Security and Pledge Agreement will be accompanied by duly
executed undated blank stock powers, or other equivalent instruments of transfer
acceptable to the Administrative Agent. Such Grantor will, from time to time
upon the request of the Administrative Agent, promptly deliver to the
Administrative Agent such stock powers, instruments, and similar documents,
satisfactory in form and substance to the Administrative Agent, with respect to
such Collateral as the Administrative Agent may reasonably request and will,
from time to time upon the request of the Administrative Agent after the
occurrence of any Specified Default, promptly transfer any Securities
constituting Collateral into the name of any nominee designated by the
Administrative Agent.

         SECTION 4.2.4. CONTINUOUS PLEDGE. Such Grantor will, at all times, keep
pledged to the Administrative Agent pursuant hereto on a first priority
perfected basis all Investment Property constituting Collateral, all Dividends
and Distributions with respect thereto, all Intercompany Notes, all interest,
principal and other proceeds received by the Administrative Agent with respect
to the Intercompany

                                       22

<PAGE>

Notes, and all other Collateral and other securities, instruments, proceeds, and
rights from time to time received by or distributable to such Grantor in respect
of any of the foregoing Collateral and will not permit any Subsidiary of such
Grantor to issue any Securities which shall not have been immediately duly
pledged hereunder on a first priority perfected basis.

         SECTION 4.2.5. VOTING RIGHTS; DIVIDENDS, ETC. Such Grantor agrees:

                  (a) after any Specified Default shall have occurred and be
         continuing, promptly upon receipt of notice thereof by such Grantor and
         without any request therefor by the Administrative Agent, to deliver
         (properly endorsed where required hereby or requested by the
         Administrative Agent) to the Administrative 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
         Administrative Agent as additional Collateral for use in accordance
         with CLAUSE (b) of SECTION 6.1; and

                  (b) after any Specified Default shall have occurred and be
         continuing and the Administrative Agent has notified such Grantor of
         the Administrative Agent's intention to exercise its voting power under
         this SECTION 4.2.5(b)

                           (i) the Administrative Agent may exercise (to the
                  exclusion of such Grantor) the voting power and all other
                  incidental rights of ownership with respect to any Securities
                  or other Investment Property constituting Collateral and such
                  Grantor hereby grants the Administrative Agent an irrevocable
                  proxy, exercisable under such circumstances, to vote such
                  Securities and such other Collateral; and

                           (ii) promptly to deliver to the Administrative Agent
                  such additional proxies and other documents as may be
                  necessary to allow the Administrative 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 such Grantor but which
such Grantor is then obligated to deliver to the Administrative Agent, shall,
until delivery to the Administrative Agent, be held

                                       23

<PAGE>

by such Grantor separate and apart from its other property in trust for the
Administrative Agent. The Administrative Agent agrees that unless a Specified
Default shall have occurred and be continuing and the Administrative Agent shall
have given the notice referred to in SECTION 4.2.5(b), such Grantor shall have
the exclusive voting power with respect to any Securities constituting
Collateral and the Administrative Agent shall, upon the written request of such
Grantor, promptly deliver such proxies and other documents, if any, as shall be
reasonably requested by such Grantor which are necessary to allow such Grantor
to exercise voting power with respect to any such Securities; PROVIDED, HOWEVER,
that no vote shall be cast, or consent, waiver, or ratification given, or action
taken by such Grantor that would impair any such Collateral or be inconsistent
with or violate any provision of the Credit Agreement or any other Loan Document
(including this Security and Pledge Agreement).

         SECTION 4.2.6. AMENDMENT OF ORGANIC DOCUMENTS. Such Grantor will not
amend, supplement or otherwise modify, or permit, consent or suffer to occur any
amendment, supplement or modification of any terms or provisions contained in,
or applicable to, any Organic Document of any issuer of any Security comprising
the Collateral in which it has an equity interest if the effect thereof is to
impair, or is in any manner adverse to, the rights or interests of the
Administrative Agent or any other Secured Party hereunder or under the Credit
Agreement or any other Loan Document, without the prior written consent of the
Administrative Agent and the Required Lenders; PROVIDED, HOWEVER, that in
connection with a Permitted Equity Exchange of the type described in clause (i)
or (iii) of the definition thereof, a certificate of designation, having
substantially the same terms as the Holdings Certificate of Designation, may be
filed by JLC and/or WRC, as the case may be.

         SECTION 4.3. 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 3.4 or, upon 30 days' prior written notice to the
         Administrative Agent, at such other places in a jurisdiction where all
         representations and warranties set forth in ARTICLE III (including
         SECTION 3.9) shall be true and correct, and all action required
         pursuant to the FIRST SENTENCE of SECTION 4.10 shall have been taken
         with respect to the Equipment and Inventory;

                                       24

<PAGE>

                  (b) cause the Equipment to be maintained and preserved as
         required by Section 7.1.3 of the Credit Agreement; and promptly furnish
         to the Administrative Agent a statement respecting any loss or damage
         to any of such material Equipment; and

                  (c) pay promptly when due all property and other material
         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 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 4.4. AS TO RECEIVABLES. (a) Such Grantor shall keep its
place(s) of business and chief executive office and the office(s) where it keeps
its records concerning the Receivables, and all originals of all chattel paper
which evidences Receivables, located at the address(es) set forth in Section
3(b) of the Perfection Certificate delivered by such Grantor, or, upon 30 days'
prior written notice to the Administrative Agent, at such other locations in a
jurisdiction where all actions required by the FIRST SENTENCE of SECTION 4.10
shall have been taken with respect to the Receivables; not change its name or
federal taxpayer identification number except upon 30 days' prior written notice
to the Administrative Agent; hold and preserve such records and chattel paper;
and permit representatives of the Administrative Agent at any time during normal
business hours to inspect and make abstracts from such records and chattel
paper. In addition, the Grantor shall give the Administrative Agent a supplement
to such Perfection Certificate on each date a Compliance Certificate is required
to be delivered to the Administrative Agent under the Credit Agreement, which
shall set forth any changes to the information set forth in SECTION 3.4.

         (b) Such Grantor shall have the right to collect all Receivables so
long as no Specified Default shall have occurred and be continuing; PROVIDED,
HOWEVER, that such Grantor agrees to promptly deposit all payments received by
such Grantor on account of the Receivables, whether in the form of cash, checks,
drafts, notes, bills of exchange, money orders or other like instruments or
otherwise, in a Deposit Account in precisely the form in which received (but
with any endorsements of such Grantor necessary for deposit or collection).

                                       25

<PAGE>

         (c) All proceeds of Collateral received by such Grantor shall be
deposited into a Deposit Account of such Grantor, unless, during the occurrence
and continuance of a Specified Default, such Grantor is otherwise notified in
writing by the Administrative Agent. Following any such notice by the
Administrative Agent to such Grantor pursuant to this SECTION 4.4(c), all
proceeds of Collateral received by such Grantor shall be delivered in kind to a
Master Deposit Account or any other account or accounts specified by the
Administrative Agent. Proceeds of Collateral received by such Grantor shall,
prior to deposit in such Master Deposit Account or such other account or
accounts specified by the Administrative Agent, be held separate and apart from,
and not commingled with, all other property and in express trust for the benefit
of the Administrative Agent until delivery thereof is made to such Master
Deposit Account or such other account or accounts.

         (d) Such Grantor shall transfer all funds out of each of its Deposit
Accounts that is not a Master Deposit Account (other than, in the aggregate,
cash or Cash Equivalent Investments in all Deposit Accounts (other than the
Master Deposit Accounts) that do not exceed at any time $10,000) for deposit
into a Master Deposit Account at the close of business each day or, if not
commercially reasonable to do so, no less frequently than once every five
Business Days.

         (e) The Administrative Agent shall have the right to apply any amount
in each Deposit Account (including either Master Deposit Account) to the payment
of any Secured Obligations which are due and payable or payable upon demand or
to the payment of any Secured Obligations at any time that a Specified Default
shall have occurred and be continuing.

         (f) With respect to each Deposit Account maintained with the
Administrative Agent (including each Master Deposit Account), it is hereby
agreed that (i) deposits in each such Deposit Account are subject to a security
interest as contemplated hereby, (ii) each such Deposit Account shall be under
the sole dominion and control of the Administrative Agent and (iii) the
Administrative Agent shall have the sole right of withdrawal over each such
Deposit Account; PROVIDED, HOWEVER, that, unless and until the Administrative
Agent shall notify the applicable Grantors that a Specified Default shall have
occurred and be continuing and that during the continuance thereof no such
Grantor shall withdraw any of the funds contained in any such Deposit Account
(which notice may be given by telephone if promptly confirmed in writing or by
facsimile), any such Grantor may

                                       26

<PAGE>

at any time withdraw any of the funds contained in its Deposit Account for use
in any lawful manner not inconsistent with the provisions of this Security and
Pledge Agreement, the Credit Agreement or any other Loan Document.

         SECTION 4.5. MOTOR VEHICLES. (a) Such Grantor shall deliver to the
Administrative Agent the original of the certificate of title or ownership
listing the Administrative Agent as lienholder for (i) any Motor Vehicle owned
by such Grantor that has a fair market value of at least $50,000 or (ii) at the
request of the Administrative Agent, any other Motor Vehicle owned by such
Grantor.

         (b) Upon the acquisition after the date hereof by such Grantor of (i)
any Motor Vehicle having a fair market value of at least $50,000 or (ii) any
other Motor Vehicle for which the Administrative Agent has requested the
original of the certificate of title or ownership thereof, such Grantor shall
deliver to the Administrative Agent originals of the certificates of title or
ownership for such Motor Vehicles, together with the manufacturer's statement of
origin with the Administrative Agent listed as lienholder.

         (c) Without limiting SECTION 5.1, such Grantor hereby appoints the
Administrative Agent as its attorney-in-fact, effective the date hereof and
terminating upon the termination of this Security and Pledge Agreement, for the
purpose of (i) executing on behalf of such Grantor title or ownership
applications for filing with appropriate state agencies to enable Motor Vehicles
now owned or hereafter acquired by such Grantor to be retitled and the
Administrative Agent listed as lienholder thereon, (ii) filing such applications
with such state agencies and (iii) executing such other documents and
instruments on behalf of, and taking such other action in the name of, such
Grantor as the Administrative Agent may deem necessary or advisable to
accomplish the purposes hereof (including, without limitation, the purpose of
creating in favor of the Administrative Agent a perfected lien on the Motor
Vehicles and exercising the rights and remedies of the Administrative Agent
under SECTION 6.1 hereof). This appointment as attorney-in-fact is irrevocable
and coupled with an interest.

         (d) Any certificates of title or ownership delivered pursuant to the
terms hereof shall be accompanied by odometer statements for each Motor Vehicle
covered thereby.

                                       27

<PAGE>

         SECTION 4.6. AS TO COLLATERAL. (a) Until the occurrence and continuance
of a Specified Default, and such time as the Administrative Agent shall notify
such Grantor of the revocation of such power and authority such Grantor (i) may
in the ordinary course of its business (except as otherwise permitted under the
Credit Agreement), 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 (except as
otherwise permitted under the Credit Agreement), 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 Administrative Agent may reasonably request
following the occurrence of a Specified Default or, in the absence of such
request, as such Grantor may deem advisable, and (iii) may grant, in the
ordinary course of business (except as otherwise permitted under the Credit
Agreement), 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 Administrative Agent, however, may, at any
time following a Specified Default, whether before or after any revocation of
such power and authority or the maturity of any of the Secured Obligations,
notify any parties obligated on any of the Collateral to make payment to the
Administrative 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 Administrative Agent
following a Specified Default, such Grantor will, at its own expense, notify any
parties obligated on any of the Collateral to make payment to the Administrative
Agent of any amounts due or to become due thereunder.

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

                                       28

<PAGE>

         SECTION 4.7. AS TO INTELLECTUAL PROPERTY COLLATERAL. Each Grantor
covenants and agrees to comply with the following provisions as such provisions
relate to any Intellectual Property Collateral of such Grantor:

                  (a) such Grantor shall not, unless such Grantor shall either
         (i) reasonably and in good faith determine (and make commercially
         reasonable efforts to provide notice of such determination to the
         Administrative 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 except upon expiration of the
         end of an unrenewable term of a registration thereof;

                  (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 all commercially reasonable
         efforts to provide notice of such determination shall have been
         delivered to the Administrative 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 use all commercially reasonable efforts
                  to employ all of the Trademark Collateral registered with any
                  Federal or state or foreign authority with an appropriate
                  notice of such registration except where the failure to do so
                  would not have a Material Adverse Effect, and

                           (iv) 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;

                                       29

<PAGE>

                  (c) such Grantor shall not, unless such Grantor shall either
         (i) reasonably and in good faith determine (and make commercially
         reasonable efforts to provide notice of such determination to the
         Administrative 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 Administrative 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 except upon expiration of
         the end of an unrenewable term of a registration thereof, or of any
         adverse determination or development, which alone or in the aggregate
         might have a Material Adverse Effect (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
         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 promptly informs the Administrative
         Agent, and upon request of the Administrative Agent, executes and
         delivers any and all agreements, instruments, documents and papers as
         the Administrative Agent may reasonably request to evidence the
         Administrative Agent's security interest in such Intellectual Property
         Collateral and the goodwill and general intangibles of such Grantor
         relating thereto or represented thereby;

                                       30
<PAGE>

                  (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 Administrative Agent a Patent Security Agreement,
         Trademark Security Agreement and Copyright Security Agreement in the
         forms of EXHIBIT B, EXHIBIT C and EXHIBIT D hereto, and shall execute
         and deliver to the Administrative Agent any other document reasonably
         required to acknowledge or register or perfect the Administrative
         Agent's interest in any part of the Intellectual Property Collateral;
         and

                  (h) such Grantor shall continue to perform (subject to the
         compliance standards in this Section 4.3) all acts and will continue to
         pay (subject to the compliance standards in this Section 4.3) all
         required fees and taxes to maintain each and every such item of
         Intellectual Property Collateral in full force and effect throughout
         the world, as applicable.

         SECTION 4.8. INSURANCE. Such Grantor will maintain or cause to be
maintained with responsible insurance companies insurance with respect to its
business and properties (including the Equipment and Inventory) against such
casualties and contingencies and of such types and in such amounts as is
required pursuant to the Credit Agreement and will, upon the request of the
Administrative 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.

         SECTION 4.9.  TRANSFERS AND OTHER LIENS.  Such Grantor
shall not:

                                       31

<PAGE>

                  (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 Agreement; 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 and Pledge Agreement and except as permitted
         by the Credit Agreement.

         SECTION 4.10. FURTHER ASSURANCES, ETC. Such Grantor agrees that, from
time to time at its own expense, it will promptly execute and deliver all
further instruments and documents, and take all further action, that may be
necessary or desirable, or that the Administrative Agent may request, in order
to perfect, preserve and protect any security interest granted or purported to
be granted hereby or to enable the Administrative 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 Administrative Agent, each
         of its records pertaining to the Collateral with a legend, in form and
         substance satisfactory to the Administrative 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 Administrative Agent (if requested by the Administrative
         Agent following the occurrence and during the continuance of a
         Specified Default) 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 Administrative Agent;

                  (c) execute and file such financing or continuation
         statements, or amendments thereto, and such other instruments or
         notices (including any assignment of claim form under or pursuant to
         the

                                       32

<PAGE>

         federal assignment of claims statute, 31 U.S.C. Section 3726, any
         successor or amended version thereof or any regulation promulgated
         under or pursuant to any version thereof), as may be necessary or
         desirable, or as the Administrative Agent may request, in order to
         perfect and preserve the security interests and other rights granted
         or purported to be granted to the Administrative Agent hereby;

                  (d) not enter into any agreement amending, supplementing, or
         waiving any provision of any Intercompany Note (including any
         underlying instrument pursuant to which such Intercompany Note is
         issued) or compromising or releasing or extending the time for payment
         of any obligation of the maker thereof;

                  (e) promptly execute and deliver all further instruments
         (including in the event that the issuer of any Security comprising
         Collateral of such Grantor is a Foreign Subsidiary of such Grantor, by
         entering into a Foreign Pledge Agreement), and take all further action,
         that may be necessary or desirable, or that the Administrative Agent
         may reasonably request, in order to perfect and protect any security
         interest granted or purported to be granted hereby or to enable the
         Administrative Agent to exercise and enforce its rights and remedies
         hereunder with respect to any Collateral;

                  (f) cause the Administrative Agent to be listed as the
         lienholder on the certificate of title or ownership relating to (i) any
         Motor Vehicle owned by such Grantor that has a fair market value of at
         least $50,000 or (ii) at the request of the Administrative Agent, any
         other Motor Vehicle owned by such Grantor;

                  (g) not 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 Intercompany Note or other instrument
         constituting Collateral; and

                  (h) furnish to the Administrative Agent, from time to time at
         the Administrative Agent's request, statements and schedules further
         identifying and describing the Collateral and such other reports in
         connection with the Collateral as the Administrative 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

                                       33

<PAGE>

Administrative 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 and Pledge 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 ADMINISTRATIVE AGENT

         SECTION 5.1. ADMINISTRATIVE AGENT APPOINTED ATTORNEY-IN-FACT. Each
Grantor hereby irrevocably appoints the Administrative Agent 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
Administrative Agent's discretion, following the occurrence and continuation of
a Specified Default, to take any action and to execute any instrument which the
Administrative Agent may deem necessary or advisable to accomplish the purposes
of this Security and Pledge Agreement, including:

                  (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;

                  (c) to file any claims or take any action or institute any
         proceedings which the Administrative Agent may deem necessary or
         desirable for the collection of any of the Collateral or otherwise to
         enforce the rights of the Administrative 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 4.10).

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

                                       34

<PAGE>

         SECTION 5.2. ADMINISTRATIVE AGENT MAY PERFORM. If any Grantor fails to
perform any agreement contained herein, the Administrative Agent may itself
perform, or cause performance of, such agreement, and the expenses of the
Administrative Agent incurred in connection therewith shall be payable by such
Grantor pursuant to SECTION 6.4.

         SECTION 5.3. ADMINISTRATIVE AGENT HAS NO DUTY. In addition to, and not
in limitation of, SECTION 2.6, the powers conferred on the Administrative Agent
hereunder are solely to protect its interest (on behalf of the Secured 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 Administrative
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 Investment Property, whether or not the Administrative 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 Administrative Agent is required to
exercise reasonable care in the custody and preservation of any of the
Collateral in its possession; PROVIDED, HOWEVER, the Administrative 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 Grantor
reasonably requests in writing at times other than upon the occurrence and
during the continuance of any Specified Default, but failure of the
Administrative 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 Specified Default shall have
occurred and be continuing:

                                       35

<PAGE>

                  (a) The Administrative 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 U.C.C. (whether or not the U.C.C.
         applies to the affected Collateral) and also may

                           (i) require each Grantor to, and such Grantor hereby
                  agrees that it will, at its expense and upon request of the
                  Administrative Agent forthwith, assemble all or part of the
                  Collateral as directed by the Administrative Agent and make it
                  available to the Administrative Agent at a place to be
                  designated by the Administrative Agent which is reasonably
                  convenient to both parties, and

                           (ii) 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 Administrative Agent's
                  offices or elsewhere, for cash, on credit or for future
                  delivery, and upon such other terms as the Administrative
                  Agent may deem commercially reasonable. Each Grantor agrees
                  that, to the extent notice of sale shall be required by law,
                  at least ten days' prior notice to such Grantor 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 Administrative Agent shall not be obligated
                  to make any sale of Collateral regardless of notice of sale
                  having been given. The Administrative 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) All cash proceeds received by the Administrative Agent in
         respect of any sale of, collection from, or other realization upon, all
         or any part of the Collateral shall be applied by the Administrative
         Agent against, all or any part of the Obligations as follows:

                           (i) first, to the payment of any amounts payable to
                  the Administrative Agent pursuant to Section 11.3 of the
                  Credit Agreement and SECTION 6.4;

                                       36

<PAGE>

                           (ii) second, to the equal and ratable payment of
                  Obligations, in accordance with each Secured Party's
                  Obligations owing to it under or pursuant to the Credit
                  Agreement or any other Loan Document, or under or pursuant to
                  any Hedging Obligation included in the Obligations as to each
                  Secured Party, applied

                                    (A) first to fees and expense reimbursements
                           then due to such Secured Party,

                                    (B) then to interest due to such Secured
                           Party,

                                    (C) then to pay or prepay principal of the
                           Loans owing to, or to reduce the "credit exposure"
                           of, such Secured Party under such Hedging Obligation,
                           as the case may be, and

                                    (D) then to pay the remaining outstanding
                           Obligations and cash collateralize all Letter of
                           Credit Outstandings;

                           (iii) third, without duplication of any amounts paid
                  pursuant to CLAUSE (b)(ii) above, to the Indemnified Parties
                  to the extent of any amounts owing pursuant to Section 11.4 of
                  the Credit Agreement; and

                           (iv) fourth, to be held as additional collateral
                  security until the payment in full in cash of all of the
                  Obligations, the termination or expiration of all Letters of
                  Credit, the termination of all Rate Protection Agreements and
                  the termination of all Commitments, after which such remaining
                  cash proceeds shall be paid over to the applicable Grantor or
                  to whomsoever may be lawfully entitled to receive such
                  surplus.

         For purposes of this Security and Pledge Agreement, the "credit
         exposure" at any time of any Secured Party with respect to a Hedging
         Obligation to which such Secured Party is a party shall be determined
         at such time in accordance with the customary methods of calculating
         credit exposure under similar arrangements by the counterparty to such
         arrangements, taking into account potential interest rate movements and
         the respective

                                       37

<PAGE>

         termination provisions and notional principal amount and term of such
         Hedging Obligation.

         (c)  The Administrative Agent may

                           (i) transfer all or any part of the Collateral into
                  the name of the Administrative 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 Administrative Agent of any
                  amount due or to become due thereunder,

                           (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
                  such Grantor'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 such
                  Grantor) endorsements, assignments, stock powers and other
                  instruments of conveyance or transfer with respect to all or
                  any of the Collateral.

         SECTION 6.2. SECURITIES LAWS. If the Administrative Agent shall
determine to exercise its right to sell all or any of the Collateral pursuant to
SECTION 6.1, each Grantor agrees that, upon request of the Administrative Agent,
such Grantor will, at its own expense:

                  (a) execute and deliver, and cause each issuer of the
         Collateral contemplated to be sold and the directors and officers
         thereof to execute and deliver, all such instruments and documents, and
         do or cause to be done all such other acts and things, as may be
         necessary or, in the opinion of the Administrative Agent, advisable to
         register such Collateral under the

                                       38

<PAGE>

         provisions of the Securities Act of 1933, as from time to time amended
         (the "SECURITIES ACT"), and to cause the registration statement
         relating thereto to become effective and to remain effective for such
         period as prospectuses are required by law to be furnished, and to make
         all amendments and supplements thereto and to the related prospectus
         which, in the opinion of the Administrative Agent, are necessary or
         advisable, all in conformity with the requirements of the Securities
         Act and the rules and regulations of the Securities and Exchange
         Commission applicable thereto;

                  (b) use its best efforts to qualify the Collateral under the
         state securities or "Blue Sky" laws and to obtain all necessary
         governmental approvals for the sale of the Collateral, as requested by
         the Administrative Agent;

                  (c) cause each such issuer to make available to its security
         holders, as soon as practicable, an earnings statement that will
         satisfy the provisions of Section 11(a) of the Securities Act; and

                  (d) do or cause to be done all such other acts and things as
         may be necessary to make such sale of the Collateral or any part
         thereof valid and binding and in compliance with applicable law.

Each Grantor further acknowledges the impossibility of ascertaining the amount
of damages that would be suffered by the Administrative Agent or the Secured
Parties by reason of the failure by any Grantor to perform any of the covenants
contained in this Section and, consequently, agrees that, if such Grantor shall
fail to perform any of such covenants, it shall pay, as liquidated damages and
not as a penalty, an amount equal to the value (as determined by the
Administrative Agent) of the Collateral on the date the Administrative Agent
shall demand compliance with this Section.

         SECTION 6.3. COMPLIANCE WITH RESTRICTIONS. Each Grantor agrees that in
any sale of any of the Collateral whenever a Specified Default shall have
occurred and be continuing, the Administrative 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

                                       39

<PAGE>

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 such Grantor
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 Administrative Agent be liable nor accountable to such Grantor for
any discount allowed by the reason of the fact that such Collateral is sold in
compliance with any such limitation or restriction.

         SECTION 6.4.  INDEMNITY AND EXPENSES.

                  (a) Each Grantor jointly and severally agrees to indemnify the
         Administrative Agent from and against any and all claims, losses and
         liabilities arising out of or resulting from this Security and Pledge
         Agreement (including enforcement of this Security and Pledge
         Agreement), except claims, losses or liabilities resulting from the
         Administrative Agent's gross negligence or wilful misconduct.

                  (b) Each Grantor will upon demand pay to the Administrative
         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 Administrative Agent may incur in connection with

                           (i)  the administration of this Security and
                  Pledge 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 Administrative Agent or the Secured Parties
                  hereunder, and

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

                                       40
<PAGE>

                                   ARTICLE VII

                            MISCELLANEOUS PROVISIONS

         SECTION 7.1. LOAN DOCUMENT. This Security and Pledge 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 thereof.

         SECTION 7.2. AMENDMENTS; ETC. No amendment to or waiver of any
provision of this Security and Pledge Agreement nor consent to any departure by
any Grantor herefrom, shall in any event be effective unless the same shall be
in writing and signed by the Administrative Agent (on behalf of the Lenders or
the Required Lenders, as the case may be), and then such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given.

         SECTION 7.3. PROTECTION OF COLLATERAL. The Administrative Agent may
from time to time, at its option, perform any act which each Grantor agrees
hereunder to perform and which such Grantor 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 a Specified
Default) and the Administrative Agent may from time to time take any other
action which the Administrative Agent reasonably deems necessary for the
maintenance, preservation or protection of any of the Collateral or of its
security interest therein.

         SECTION 7.4. ADDRESSES FOR NOTICES. All notices and other
communications provided for hereunder shall be in writing (including telegraphic
communication) and, if to any Grantor, mailed or telecopied or delivered to it,
addressed to it in care of Holdings at the address of Holdings specified in the
Credit Agreement, if to the Administrative Agent, mailed or telecopied or
delivered to it, addressed to it at the address of the Administrative Agent
specified in the Credit Agreement. All such notices and other communications,
when mailed and properly addressed with postage prepaid or if properly addressed
and sent by pre-paid courier service, shall be deemed given when received; any
such notice or communication, if transmitted by telecopier, shall be deemed
given when transmitted and electronically confirmed.

                                       41

<PAGE>

         SECTION 7.5. ADDITIONAL GRANTORS. Upon the execution and delivery by
any other Person of an instrument in the form of ANNEX I hereto, together with a
Perfection Certificate, such Person shall become a "Grantor" hereunder with the
same force and effect as if originally named as a Grantor herein. The execution
and delivery of any such instrument shall not require the consent of any other
Grantor hereunder. The rights and obligations of each Grantor hereunder shall
remain in full force and effect notwithstanding the addition of any new Grantor
as a party to this Security and Pledge Agreement.

         SECTION 7.6. SECTION CAPTIONS. Section captions used in this Security
and Pledge Agreement are for convenience of reference only, and shall not affect
the construction of this Security and Pledge Agreement.

         SECTION 7.7. SEVERABILITY. Wherever possible each provision of this
Security and Pledge Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Security
and 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 Security and Pledge Agreement.

         SECTION 7.8. COUNTERPARTS. This Security and Pledge Agreement may be
executed by the parties hereto in several counterparts, each of which shall be
deemed an original and all of which shall constitute together but one and the
same agreement.

         SECTION 7.9. GOVERNING LAW, ENTIRE AGREEMENT, ETC. THIS SECURITY AND
PLEDGE AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE
INTERNAL LAWS OF THE STATE OF NEW YORK, 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 INTERNAL LAWS OF A
JURISDICTION OTHER THAN THE STATE OF NEW YORK. THIS SECURITY AND PLEDGE
AGREEMENT AND THE OTHER LOAN DOCUMENTS CONSTITUTE THE ENTIRE UNDERSTANDING AMONG
THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF AND THEREOF AND
SUPERSEDE ANY PRIOR AGREEMENTS, WRITTEN OR ORAL, WITH RESPECT THERETO.

         SECTION 7.10. FOREIGN PLEDGE AGREEMENTS. Without limiting any of the
rights, remedies, privileges or benefits provided hereunder to the
Administrative Agent for its benefit and the ratable benefit of the other
Secured

                                       42

<PAGE>

Parties, each Grantor and the Administrative Agent hereby agree that the terms
and provisions of this Security and Pledge Agreement in respect of any
Collateral subject to the pledge or other lien of a Foreign Pledge Agreement
are, and shall be deemed to be, supplemental and in addition to the rights,
remedies, privileges and benefits provided to the Administrative Agent and the
other Secured Parties under such Foreign Pledge Agreement and under applicable
law to the extent consistent with applicable law; PROVIDED, that, in the event
that the terms of this Security and Pledge Agreement conflict or are
inconsistent with the applicable Foreign Pledge Agreement or applicable law
governing such Foreign Pledge Agreement, the terms of such Foreign Pledge
Agreement or such applicable law shall be controlling.

         SECTION 7.11. FORUM SELECTION AND CONSENT TO JURISDICTION. ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS
SECURITY AND PLEDGE AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF
ANY SECURED PARTY OR ANY GRANTOR RELATING THERETO SHALL BE BROUGHT AND
MAINTAINED EXCLUSIVELY (TO THE EXTENT PERMITTED UNDER APPLICABLE LAW) IN THE
COURTS OF THE STATE OF NEW YORK, OR IN THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE LOCATED IN NEW YORK COUNTY OF THE
STATE OF NEW YORK; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST
ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE ADMINISTRATIVE AGENT'S
OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER
PROPERTY MAY BE FOUND. EACH GRANTOR HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO
THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, AND OF THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE
LOCATED IN NEW YORK COUNTY OF THE STATE OF NEW YORK, FOR THE PURPOSE OF ANY SUCH
LITIGATION AS SET FORTH ABOVE AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT
RENDERED THEREBY IN CONNECTION WITH SUCH LITIGATION. EACH GRANTOR IRREVOCABLY
CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY
PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. EACH GRANTOR HEREBY
EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION WHICH ANY OF THEM MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF
VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY
CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE
EXTENT THAT ANY GRANTOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM
JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR
NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR
OTHERWISE) WITH RESPECT TO

                                       43

<PAGE>

ITSELF OR ITS PROPERTY, EACH GRANTOR HEREBY IRREVOCABLY WAIVES (TO THE EXTENT
PERMITTED UNDER APPLICABLE LAW) SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS
UNDER THIS SECURITY AND PLEDGE AGREEMENT AND THE OTHER LOAN DOCUMENTS.

         SECTION 7.12. WAIVER OF JURY TRIAL. THE SECURED PARTIES AND THE
GRANTORS HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR
ARISING OUT OF, UNDER OR IN CONNECTION WITH, THIS SECURITY AND PLEDGE AGREEMENT
OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE SECURED PARTIES OR THE
GRANTORS RELATING THERETO. THE GRANTORS ACKNOWLEDGE AND AGREE THAT EACH SUCH
PERSON HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND
EACH OTHER PROVISION OF EACH OTHER LOAN DOCUMENT TO WHICH SUCH PERSON IS A
PARTY) AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE SECURED PARTIES
ENTERING INTO THE CREDIT AGREEMENT, THIS SECURITY AND PLEDGE AGREEMENT AND EACH
SUCH OTHER LOAN DOCUMENT.

                                       44

<PAGE>

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

                                  WEEKLY READER CORPORATION

                                  By /s/ Charles Lavrey
                                     ----------------------------------------
                                     Name: Charles Lavrey
                                     Title:

                                  JLC LEARNING CORPORATION

                                  By /s/ Charles Lavrey
                                     ----------------------------------------
                                     Name: Charles Lavrey
                                     Title:

                                  WRC MEDIA INC.

                                  By /s/ Charles Lavrey
                                     ----------------------------------------
                                     Name: Charles Lavrey
                                     Title:

                                  PRIMEDIA REFERENCE INC.

                                  By /s/ Charles Lavrey
                                     ----------------------------------------
                                     Name: Charles Lavrey
                                     Title:

                                   AMERICAN GUIDANCE SERVICE INC.

                                  By /s/ Charles Lavrey
                                     ----------------------------------------
                                     Name: Charles Lavrey
                                     Title:

<PAGE>

                                  LIFETIME LEARNING SYSTEMS, INC.

                                  By /s/ Charles Lavrey
                                     ----------------------------------------
                                     Name: Charles Lavrey
                                     Title:

                                  AGS INTERNATIONAL SALES, INC.

                                  By /s/ Charles Lavrey
                                     ----------------------------------------
                                     Name: Charles Lavrey
                                     Title:

                                  FUNK & WAGNALLS YEARBOOK CORPORATION

                                  By /s/ Charles Lavrey
                                     ----------------------------------------
                                     Name: Charles Lavrey
                                     Title:

                                  GARETH STEVENS, INC.

                                  By /s/ Charles Lavrey
                                     ----------------------------------------
                                     Name: Charles Lavrey
                                     Title:

                                  BANK OF AMERICA, N.A., as Administrative Agent

                                  By /s/ Peter Hall
                                     ----------------------------------------
                                     Name: Peter Hall
                                     Title:

<PAGE>

                                                                     SCHEDULE I
                                               to Security and Pledge Agreement
                                                               (WRC Media Inc.)

Item A.  INTERCOMPANY NOTES

         None.

Item B.  SECURITIES

<TABLE>
<CAPTION>

                                                       Authorized             Outstanding       % of Shares
Issuer (corporate)                                       Shares                  Shares           Pledged
------------------                                       ------                  ------           -------
<S>                                                    <C>                    <C>               <C>
Weekly Reader Corporation                              20,000,000              2,830,000           94.9%*
(Voting Common)

Weekly Reader Corporation                              20,000,000              3,000,000            100%
(15% Senior Preferred Stock)

JLC Learning Corporation                                   20,000                 10,000            100%
(Common Stock)
</TABLE>

---------------------

  * WRC Media Inc. owns 94.9% of the Voting Common Stock of Weekly Reader
Corporation. PRIMEDIA, Inc. owns the remaining 5.1%.

<PAGE>

                                                                    SCHEDULE II
                                               to Security and Pledge Agreement
                                                               (WRC Media Inc.)

                              GOVERNMENT CONTRACTS

         None.

<PAGE>

                                                                   SCHEDULE III
                                               to Security and Pledge Agreement
                                                               (WRC Media Inc.)

Item A.  PATENTS

         None.

Item B.  PATENT LICENSES

         None.

<PAGE>

                                                                    SCHEDULE IV
                                               to Security and Pledge Agreement
                                                               (WRC Media Inc.)

Item A.  TRADEMARKS

         None.

Item B.  TRADEMARK LICENSES

          None.

<PAGE>
                                                                     SCHEDULE V
                                               to Security and Pledge Agreement
                                                               (WRC Media Inc.)

Item A.  COPYRIGHTS

           None.

Item B.  COPYRIGHT LICENSES

           None.

<PAGE>

                                                                    SCHEDULE VI
                                               to Security and Pledge Agreement
                                                               (WRC Media Inc.)

                        TRADE SECRET OR KNOW-HOW LICENSES

                  None.

<PAGE>

                                                                     SCHEDULE I
                                               to Security and Pledge Agreement
                                              (Lifetime Learning Systems, Inc.)

Item A.  INTERCOMPANY NOTES

None.

Item B.  SECURITIES

None.

<PAGE>

                                                                    SCHEDULE II
                                               to Security and Pledge Agreement
                                              (Lifetime Learning Systems, Inc.)

                              GOVERNMENT CONTRACTS

None.

<PAGE>

                                                                   SCHEDULE III
                                               to Security and Pledge Agreement
                                              (Lifetime Learning Systems, Inc.)

Item A.  PATENTS

None.

Item B.  PATENT LICENSES

None.

<PAGE>

                                                                    SCHEDULE IV
                                               to Security and Pledge Agreement
                                              (Lifetime Learning Systems, Inc.)

Item A.  TRADEMARKS

<TABLE>
<CAPTION>

    COUNTRY              MARK              CLASSES    APP. #     APP. DT   REG. #    REG. DT    STATUS
    -------              ----              -------    ------     -------   ------    -------    ------
<S>                <C>                     <C>       <C>         <C>       <C>       <C>      <C>
United States      LIFETIME LEARNING         16      75/168449   9/9/96    2147187   3/31/98  Registered
                   SYSTEMS & DESIGN
</TABLE>

Item B.  TRADEMARK LICENSES

None.

<PAGE>

                                                                     SCHEDULE V
                                               to Security and Pledge Agreement
                                              (Lifetime Learning Systems, Inc.)

Item A.  COPYRIGHTS

Copyrights which are ordinary course copyrights and which have no individual
material value are not listed.

Item B.  COPYRIGHT LICENSES

None.

<PAGE>

                                                                    SCHEDULE VI
                                               to Security and Pledge Agreement
                                              (Lifetime Learning Systems, Inc.)

                        TRADE SECRET OR KNOW-HOW LICENSES

None.

<PAGE>

                                                                     SCHEDULE I
                                               to Security and Pledge Agreement
                                                         (Gareth Stevens, Inc.)

Item A.  INTERCOMPANY NOTES

None.

Item B.  SECURITIES

None.

<PAGE>

                                                                    SCHEDULE II
                                               to Security and Pledge Agreement
                                                         (Gareth Stevens, Inc.)

                              GOVERNMENT CONTRACTS

None.

<PAGE>

                                                                   SCHEDULE III
                                               to Security and Pledge Agreement
                                                         (Gareth Stevens, Inc.)

Item A.  PATENTS

None.

Item B.  PATENT LICENSES

None.

<PAGE>

                                                                    SCHEDULE IV
                                               to Security and Pledge Agreement
                                                         (Gareth Stevens, Inc.)

Item A.  TRADEMARKS

None.

Item B.  TRADEMARK LICENSES

None.

<PAGE>

                                                                     SCHEDULE V
                                               to Security and Pledge Agreement
                                                         (Gareth Stevens, Inc.)

Item A.  COPYRIGHTS

Copyrights which are ordinary course copyrights and which have no individual
material value are not listed.

Item B.  COPYRIGHT LICENSES

None.

<PAGE>

                                                                    SCHEDULE VI
                                               to Security and Pledge Agreement
                                                         (Gareth Stevens, Inc.)

                        TRADE SECRET OR KNOW-HOW LICENSES

None.

<PAGE>

                                                                     SCHEDULE I
                                               to Security and Pledge Agreement
                                                (AGS International Sales, Inc.)

Item A.  INTERCOMPANY NOTES

None.

Item B.  SECURITIES

None.

<PAGE>

                                                                    SCHEDULE II
                                               to Security and Pledge Agreement
                                                (AGS International Sales, Inc.)

                              GOVERNMENT CONTRACTS

None.

<PAGE>

                                                                   SCHEDULE III
                                               to Security and Pledge Agreement
                                                (AGS International Sales, Inc.)

Item A.  PATENTS

None.

Item B.  PATENT LICENSES

None.

<PAGE>

                                                                    SCHEDULE IV
                                               to Security and Pledge Agreement
                                                (AGS International Sales, Inc.)

Item A.  TRADEMARKS

None.

Item B.  TRADEMARK LICENSES

None.

<PAGE>

                                                                     SCHEDULE V
                                               to Security and Pledge Agreement
                                                (AGS International Sales, Inc.)

Item A.  COPYRIGHTS

Copyrights which are ordinary course copyrights and which have no individual
material value are not listed.

Item B.  COPYRIGHT LICENSES

None.

<PAGE>

                                                                    SCHEDULE VI
                                               to Security and Pledge Agreement
                                                (AGS International Sales, Inc.)

                        TRADE SECRET OR KNOW-HOW LICENSES

None.

<PAGE>

                                                                     SCHEDULE I
                                               to Security and Pledge Agreement
                                                     (JLC Learning Corporation)

Item A.  INTERCOMPANY NOTES

None.

Item B.  SECURITIES

None.

<PAGE>

                                                                    SCHEDULE II
                                               to Security and Pledge Agreement
                                                     (JLC Learning Corporation)

                              GOVERNMENT CONTRACTS

Educational Technology Agreement between JLC Learning Corporation and California
State Department of Education on February 10, 1989.

Contractual Agreement between School Board of Dade County, Florida and JLC
Learning Corporation of San Diego entered into on December 20, 1990, amended on
April 1, 1992, June 29, 1993 and March 11, 1994.

ESOL Curriculum Development Contract between JLC Learning Corporation and the
Florida Department of Education dated June 22, 1993.

West Virginia Basic Skills Computer Education Contract #01-A between JLC
Learning Corporation and the West Virginia Department of Education on June 14,
1990.

                                       2

<PAGE>

                                                                   SCHEDULE III
                                               to Security and Pledge Agreement
                                                     (JLC Learning Corporation)

Item A.  PATENTS

None.

Item B.  PATENT LICENSES

None.

                                        3

<PAGE>

                                                                    SCHEDULE IV
                                               to Security and Pledge Agreement
                                                     (JLC Learning Corporation)

Item A.  TRADEMARKS

<TABLE>
<CAPTION>

    Australia
      Mark                      Serial No.        Date         (R) Number           Date             Other         Status
      ----                      ----------        ----         ----------           ----             -----         ------
<S>                             <C>           <C>              <C>                <C>              <C>             <C>
Assessment Designer               796210         6/4/99                                            RN 06/04/09     Abandoned
Compass                           710447        6/12/96                                            RN 06/12/06     Pending
Compass Worldware                 761158         5/4/96                                            RN 05/04/06     Pending
Design of Tree                    761668         5/8/99           761668           1/25/99         RN 05/08/09     Registered
JCAT                              761159         5/4/98           761159          12/18/98         RN 05/04/08     Registered
Tomorrow's Promise                752687        1/14/98           752687           8/31/98         RN 01/14/08     Registered
Worldware                         775431       10/13/98           775431           2/12/98         RN 10/13/08     Registered

<CAPTION>

     Brunei
      Mark                      Serial No.        Date         (R) Number           Date             Other         Status
      ----                      ----------        ----         ----------           ----             -----         ------
<S>                             <C>           <C>              <C>                <C>              <C>             <C>
Assessment Designer               30,031          6/3/99                                                           Pending
Compass                           29,032         2/24/99                                                           Pending
Compass Worldware                 29,205         4/21/98                                                           Pending
Design of Tree                    28,201         4/21/98                                                           Pending
Design of Tree                    29,202         4/21/98                                                           Pending
JCAT                              29,206         4/21/98          24,991           4/21/99         RN 04/21/05     Registered
Tomorrow's Promise                29,031         2/24/98          24,314           2/24/99         RN 02/24/05     Registered
Worldware                         29,894        11/24/98                                                           Pending
Writing Expedition                29,204         4/21/98                                                           Pending
Writing Expedition                29,202         4/21/98                                                           Pending

<CAPTION>

     Canada
      Mark                      Serial No.        Date         (R) Number           Date             Other         Status
      ----                      ----------        ----         ----------           ----             -----         ------
<S>                             <C>           <C>              <C>                <C>              <C>             <C>
Assessment Designer            1,017,274        5/31/99                                                            Pending
Compass                          977,358         5/6/99                                                            Pending
Compass Worldware                977,187         5/6/98                                                            Pending
Center Software                  567,467         5/6/94                                                            Abandoned
Design of Tree                   877,196         5/6/99                                                            Pending

                                        4

<PAGE>

<CAPTION>

      Mark                      Serial No.        Date         (R) Number           Date             Other         Status
      ----                      ----------        ----         ----------           ----             -----         ------
<S>                             <C>           <C>              <C>                <C>              <C>             <C>
JCAT                             877,239         5/6/99                                                            Pending
Microsystem80                    452,173       11/26/80          291,816            6/8/84         RN 06/09/99     Abandoned
System80                         379,418        10/1/74          209,350          10/10/75         5N 10/10/05     Abandoned
Tomorrow's Promise               877,185         6/5/99                                                            Pending
Worldware                        894,306       10/22/95                                                            Pending
Writing Expedition               977,357         5/6/99                                                            Pending

<CAPTION>

      China
      Mark                      Serial No.        Date         (R) Number           Date             Other         Status
      ----                      ----------        ----         ----------           ----             -----         ------
<S>                             <C>           <C>              <C>                <C>              <C>             <C>
A+dvantage                      950112050        9/1/95                                                            Abandoned
Worldware
Design of Tree                  950110123        9/1/95                                                            Abandoned
Learning First                  950118235        9/1/95                                                            Abandoned

<CAPTION>

     France
      Mark                      Serial No.        Date         (R) Number           Date             Other         Status
      ----                      ----------        ----         ----------           ----             -----         ------
<S>                             <C>           <C>              <C>                <C>              <C>             <C>
Center Software                 34-523,327       6/7/94          94529527           6/7/84         RN 06/07/94     Registered

     Hong Kong
      Mark                      Serial No.        Date         (R) Number           Date             Other         Status
      ----                      ----------        ----         ----------           ----             -----         ------
<S>                             <C>           <C>              <C>                <C>              <C>             <C>
A+dvantage                       95 10658        9/23/95        86072/1998          2/2/95         RN 02/01/02     Registered
Worldware
Design of Tree                   95 10667        9/23/95         1296/1997         9/22/95         RN 08/23/02     Registered
Learning First                   92 11502        9/12/99                                           RN 09/13/02     Pending

<CAPTION>

    Indonesia
      Mark                      Serial No.        Date         (R) Number           Date             Other         Status
      ----                      ----------        ----         ----------           ----             -----         ------
<S>                             <C>           <C>              <C>                <C>              <C>             <C>
A+dvantage                      D96 18772         9/4/96          354704            9/4/95         RN 09/04/05     Registered
Worldware
Assessment Designer             D99-12347        7/13/99                                                           Pending
Compass                          D99-2472        2/17/99                                                           Pending
Compass Worldware               D96 07733        4/27/98                                                           Pending
Design of Tree                  J98 16035         9/7/95           30136            5/5/96         RN 09/07/05     Registered
JCAT                            D99 07734        4/27/98                                                           Pending
Learning First                  D95 15771         9/4/95          260510            9/4/95         RN 02/04/05     Registered
Tomorrow's Promise               D98 2478        2/17/98                                                           Pending

                                        5

<PAGE>

<CAPTION>

      Mark                      Serial No.        Date         (R) Number           Date             Other         Status
      ----                      ----------        ----         ----------           ----             -----         ------
<S>                             <C>           <C>              <C>                <C>              <C>             <C>
Worldware                       D98 15917        11/6/99                                                           Pending
Writing Expedition              D98 07732        4/27/98                                                           Pending
Writing Expedition                2304/98         4/8/95                                                           Pending

<CAPTION>

     Ireland
      Mark                      Serial No.        Date         (R) Number           Date             Other         Status
      ----                      ----------        ----         ----------           ----             -----         ------
<S>                             <C>           <C>              <C>                <C>              <C>             <C>
Compass                          96/3961         6/12/96          173124           6/12/96         RN 06/12/03     Registered
Compass Worldware                96/2924         7/15/98                                           RN 07/15/05     Pending
Design of Tree                   98/3925         7/15/98                                           RN 07/15/05     Pending
Learning Expedition              96/4375         0712/96          202178           7/12/96         RN 07/12/05     Registered
NCAT                             98/1437         4/15/98                                           RN 04/15/05     Pending
Tomorrow's Promise               97/4604        12/19/97                                           RN 12/19/04     Pending
Worldware                        2179233         10/9/98                                           RN10/03/05      Pending
Writing Expedition               96/4376         7/12/96          202179           7/12/96         RN 07/12/06     Registered

<CAPTION>

     Japan
      Mark                      Serial No.        Date         (R) Number           Date             Other         Status
      ----                      ----------        ----         ----------           ----             -----         ------
<S>                             <C>           <C>              <C>                <C>              <C>             <C>
Compass                                                                                                            Proposed

<CAPTION>

    Malaysia
      Mark                      Serial No.        Date         (R) Number           Date             Other         Status
      ----                      ----------        ----         ----------           ----             -----         ------
<S>                             <C>           <C>              <C>                <C>              <C>             <C>
A+dvantage                       9175/95         9/5/95                                            RN 09/05/05     Pending
Worldware
Assessment Designer              99/05346        6/15/99                                           RN 05/19/05     Pending
Compass                          95/06076        7/18/96                                                           Pending
Compass Worldware                99/05613         5/8/99                                           RN 03/00/05     Pending
Design of Tree                   93/09669        5/14/95         05/05668          7/18/96         RN 09/14/03     Registered
JCAT                             95/05611         6/8/98                                           RN 06/08/05     Pending
Learning Expedition              97/16819       11/21/97                                           RN 11/21/04     Pending
Learning First                   95/09638        9/12/96                                           RN 09/13/02     Pending
Tomorrow's Promise               99/00802        1/20/98                                           RN 01/20/06     Pending
Worldware                        98/13772       11/28/98                                           RN11/28/03      Pending
Writing Expedition               98/05612         5/8/98                                           RN 05/08/05     Pending
Writing Expedition               87/16816       11/21/97                                           RN 11/21/04     Pending

</TABLE>

                                        6
<PAGE>

<TABLE>
<CAPTION>
    Singapore
      Mark                      Serial No.        Date         (R) Number           Date             Other         Status
      ----                      ----------        ----         ----------           ----             -----         ------
<S>                             <C>           <C>              <C>                <C>              <C>             <C>
A+dvantage                        9443/95         9/4/95                                           RN 09/04/05     Pending
Worldware
Assessment Designer            T99/066379        5/25/99                                           RN 06/25/03     Pending
Compass                           7454/96        7/19/96                                           RN 07/19/06     Pending
Compass Worldware                 3302/96         4/5/98                                           RN 04/06/08     Pending
Design of Tree                    8407/96         9/2/98          8407/95           9/2/95         RN 09/02/08     Registered
JCAT                              3305/96         4/2/98                                           RN 04/09/05     Pending
Learning First                    9934/95        9/12/96                                           RN 09/16/05     Abandoned
Tomorrow's Promise               15161/97       12/12/97                                           RN 12/12/07     Pending
Worldware                        12024/98        12/1/99                                           RN 12/01/09     Pending
Writing Expedition                3303/95         4/9/98                                           RN 04/09/02     Pending

<CAPTION>

     Taiwan
      Mark                      Serial No.        Date         (R) Number           Date             Other         Status
      ----                      ----------        ----         ----------           ----             -----         ------
<S>                             <C>           <C>              <C>                <C>              <C>             <C>
A+dvantage                       94-44705        8/30/95                                                           Abandoned
Worldware
Design of Tree                   94-47275        9/19/95                                                           Abandoned
Learning First                   94-44009        9/30/95          739935           12/16/96        RN 12/15/05     Registered

<CAPTION>

 United Kingdom
      Mark                      Serial No.        Date         (R) Number           Date             Other         Status
      ----                      ----------        ----         ----------           ----             -----         ------
<S>                             <C>           <C>              <C>                <C>              <C>             <C>
A+dvantage                       2032589         9/1/95           2032399           9/1/95         RN 09/01/05     Registered
Worldware
Assessment Designer              2199674         6/10/99                                                           Abandoned
Compass                          2103147         6/12/96          2101167          6/12/96         RN 06/12/06     Registered
Compass                          2117672         12/5/96          2117672          12/5/96         RN 12/04/05     Registered
Management System
Compass-Worldware                2172279         7/16/95                                           RN 07/16/09     Pending
Center Software                  1674184         6/6/94                                            RN 06/06/01     Abandoned
Design of Tree                   2031172         5/21/95          2031172          9/21/95         RN 05/21/05     Registered
Learning Expedition              2106235         7/26/96          2106235          7/26/96         RN 07/26/05     Registered
Learning First                   2033465         9/14/95                                           RN 09/14/05     Abandoned
MCAT                             2163913          4/9/96          2163913            4/9/96        RN 04/09/08     Registered
Tomorrow's Promise               2192372        11/26/97          2152272          11/28/97        RN 11/28/07     Registered

                                        7

<PAGE>

<CAPTION>

      Mark                      Serial No.        Date         (R) Number           Date             Other         Status
      ----                      ----------        ----         ----------           ----             -----         ------
<S>                             <C>           <C>              <C>                <C>              <C>             <C>
Worldware                        2179333         10/9/95          2179333          10/9/95         RN 10/09/06     Registered
Writing Expedition               2106237         7/26/96          2106237          7/26/96         RN 07/26/06     Registered

<CAPTION>

  United States
      Mark                      Serial No.        Date          (R) Number          Date             Other         Status
      ----                      ----------        ----          ----------          ----             -----         ------
<S>                             <C>           <C>               <C>               <C>              <C>             <C>
A Renaissance in                74/255,759       3/16/92         1,743,676        12/29/92         AU 12/29/92     Transfer
Learning
A World of Habitats             74/231,724      12/18/81                                                           Abandoned
A+dvantage                      74/541,327        3/2/95         1,084,423         7/19/97         AU 07/29/03     Registered
Worldware
Actionmate (Stylized)           74/641,332        3/2/95         2,014,451         11/5/96         AU11/5/02       Registered
Assessment Designer             76/633,157        2/2/99                                                           Pending
Assessment Examiner             75/723,609        6/7/99                                                           Pending
Brick by Brick                  72/567,330       11/7/95         1,411,115         9/30/95         RN 09/30/05     Registered
Classroom Essentials            79/452,678       3/31/98         2,240,746         4/20/99         AU4/20/05       Registered
Compass                         74/429,993       9/24/93         2,053,034         4/15/97         AU 4/15/02      Registered
Compass Virtual                 75/668,976       3/26/99                                                           Pending
Classroom
Compass Worldware               78/173,299       9/27/96         2,229,394          3/2/99         AU 3/2/05       Registered
Conter                          74/467,978      12/10/93                                                           Abandoned
Conter                          74/465,452       12/7/93                                                           Abandoned
Conter Software                 74/467,014       12/9/93                                                           Abandoned
Conter Software                 74/456,453       12/7/93                                                           Abandoned
Cuentos de Coqui                74/592,363      10/31/94         1,925,500         10/3/95         AU 10/03/01     Registered
(stylized)
Design of Toy with              73/563,225      10/15/85         1,396,585         5/10/96         RN 6/10/95      Registered
Wagon
Design of Children              72/749,425       8/26/89         1,536,875         4/25/89         RN 04/25/05     Abandoned
Holding Hands
Design of Reading               74/581,992       5/30/95                                                           Abandoned
Frog
Design of Tree                  73/819,707       5/17/99         1,712,302          3/1/92         RN 9/1/02       Registered
DiscoverySearch                 74/171,456       3/31/91                                                           Abandoned
Dragon Tales                    74/709,330       7/31/95         2,054,029         4/22/97         AU 4/22/03      Registered
First Connections               74/395,268        6/1/93         1,860,722         11/1/94         AU 11/1/00      Registered
First Connections               74/203,218       10/3/91                                                           Abandoned

                                       8

<PAGE>

<CAPTION>

      Mark                      Serial No.        Date          (R) Number          Date             Other         Status
      ----                      ----------        ----          ----------          ----             -----         ------
<S>                             <C>           <C>               <C>               <C>              <C>             <C>
Frequent Learner                75/295,449       5/31/97                                                           Abandoned
Miles
Hartley and Design              74/257,129       3/12/92         1,755,662         4/20/93        RN 4/20/03       Registered
Idea Shaper                     74/707,944       7/31/95         2,106,204        10/21/97        AU 10/21/03      Registered
IL Design                       73/526,796       3/25/95         1,355,833         11/5/95        RN 11/5/05       Registered
Interpretools                   75/180,100      10/11/96         2,202,904        10/20/96        AU 10/20/04      Registered
JCAT                            74/709,041       7/31/95         2,050,312          4/6/97        AU 04/03/02      Registered
JLC Financial                   74/042,225       3/26/90         1,026,458         2/26/91        RN 2/26/01       Transfer
Job Task Link                   74/266,366                                                                         Abandoned
Jostene learning                73/519,706       8/17/89         1,627,650        12/11/95        RN 12/11/00      Transfer
Corporation
Jostene Learning                74/552,366      10/31/94         3,029,506         1/14/97        AU 1/14/03       Registered
Litenet
Learning First                  74/706,275       7/31/95                                                           Abandoned
Meta4                           74/378,430       4/13/93                                                           Abandoned
Next Level                      75/291,081       5/12/97                                                           Abandoned
Number Workshop                 74/769,293        5/1/95         2,025,755         1/14/97        AU 1/14/03       Registered
OneNet                          74/653,702       3/30/95         1,956,175         2/13/96        AU 2/13/02       Registered
Out-Of-The-Box                  75/179,213       5/27/96                                                           Abandoned
Partnerships,                   74/252,257        3/5/92         1,729,965         11/3/93        AU 11/03/05      Abandoned
Resources, Results
Play and Say                    74/264,189        4/3/92                                                           Abandoned
Prescription Learning           73/742,432       8/26/98         1,536,877         4/25/99        RN 4/25/09       Abandoned
Quest                           74/362,001       2/25/93                                                           Abandoned
Shape Studio                    74/709,276        8/1/95         1,987,165         7/16/96        AU 7/15/03       Registered
Storybook Maker                 74/705,283        9/1/95         2,108,135        10/28/97        AU 10/28/02      Registered
System90                        73/350,213        3/3/70           918,463         8/17/71        RN 8/17/01       Registered
Take Home                       76/568,977       3/16/99                                                           Pending
Connection
Teacher to teacher              74/644,326       3/10/95         1,930,919          8/5/95        AU 8/5/02        Registered
Connection
Teacher to Teacher              74/266,267       4/16/92                                                           Abandoned
Connection
Teachnet (stylized)             75/159,918       9/23/94                                                           Pending
THC                             74/025,545       2/14/90         1,633,030         1/29/91        RN 1/19/01       Registered
The Hub                         74/311,945        9/4/92                                                           Abandoned

                                        9

<PAGE>

<CAPTION>

      Mark                      Serial No.        Date          (R) Number          Date             Other         Status
      ----                      ----------        ----          ----------          ----             -----         ------
<S>                             <C>           <C>               <C>               <C>              <C>             <C>
Time for Rhyme                  74/264,160        4/5/92                                                           Abandoned
Tomorrow's Promise              75/236,256        2/5/97         2,219,515         1/19/97         AU 1/19/05      Registered
Ufonic                          73/453,455       1/21/94         1,332,979         4/30/95         RN 4/30/05      Registered
Word Time                       74/364,138        4/9/93                                                           Abandoned
Words on Wings                  74/709,329       7/31/95         3,042,902         3/11/97         AU 3/11/03      Registered
WorldWare                       75/526,634       7/30/99                                                           Pending
WorldWare                       75/526,634       7/28/99                                                           Pending
Zevite Time                     74/709,331       7/31/95         2,042,802         3/11/97         AU 03/11/03     Registered
</TABLE>

                                       10

<PAGE>

                                                                     SCHEDULE V
                                               to Security and Pledge Agreement
                                                     (JLC Learning Corporation)

                                   COPYRIGHTS

  All copyrights for JLC Learning Corporation are filed in the United States.

<TABLE>
<CAPTION>

---------------------------------------------------------------------------------------------------------------------
PRODUCT NAME                                                              DATE FILED/ISSUED          COPYRIGHT NUMBER
------------                                                              -----------------          ----------------
<S>                                                                       <C>                        <C>
Advantage Mgmt Sys. 1.1                                                   March 23, 1998             TX-4-620-089
Advantage Mgmt. Sys. 1.2                                                  March 23, 1998             TX-4-620-087
Advantage Mgmt. Sys. 2.0                                                  March 20, 1998             TX-4-613-682
Advantage Mgmt. Sys. 2.1                                                  March 20, 1998             TX-4-613-679
AIMS 2.2.4 Adv. Instruc. Mgmt. Sys.                                       March 20, 1998             TX-4-613-680
Compass 2.2 for Windows/MacIntosh                                         March 23, 1998             TX-4-620-090
Compass 2.2 for ILA                                                       April 7, 1998              TX-4-634-221
Compass 2.3 for Windows/MacIntosh                                         March 23, 1998             TX-620-094
Compass 3.0 for Windows/MacIntosh                                         March 20, 1998             TX-4-613-681
LMS 3.15                                                                  April 7, 1998              TX-4-634-220
Peer to Peer Install Compass/Tomorrow's Promise 3.1                       September 30, 1998         TX-4-626-266
Personal Compass 1.0 for Windows/ MacIntosh                               March 23, 1998             TX-4-620-099
Worldware 2.0                                                             March 27, 1998             TX-4-623-250
Worldware 2.01                                                            March 20, 1998             TX-4-620-084
RIMS I                                                                    April 7, 1998              TX-4-634-224
RIMS II 1.72 for MAC                                                      March 27, 1998             TX-4-623-266
Jostens Comprehensive Assessment Tests/Compass                            March 23, 1998             TX-4-620-091
Jostens Comprehensive Assessment Tests/Advantage                          March 23, 1998             TX-4-620-088
Learning Expedition Language Arts                                         March 27, 1998             TX-4-623-253
Learning Expedition Mathematics Level 1-3                                 March 27, 1998             TX-4-623-256
Learning Expedition Mathematics Leval 4-8                                 March 27, 1998             TX-4-623-248
Learning Expedition Math Higher Level Activities                          March 27, 1998             TX-4-623-252
Learning Expedition Reading Levels 1-3                                    March 27, 1998             TX-4-623-255
Learning Expedition Reading Levels 4-8                                    March 27, 1998             TX-4-623-247
Learning Expedition Written Expression                                    March 27, 1998             TX-4-623-251
Learning First Elementary Mathematics                                     March 23, 1998             TX-4-620-095
Learning First Skills and Employability Skills                            March 23, 1998             TX-4-620-102
Learning First Foundations in Mathematics                                 March 27, 1998             TX-4-623-259
Learning First Middle School Mathematics                                  March 27, 1998             TX-4-623-258
Learning First Foundations in Reading                                     March 27, 1998             TX-4-623-260
Learning First New Edition: Elementary Mathematics                        March 23, 1998             TX-4-620-103
Learning First New Edition: Elementary Reading                            March 23, 1998             TX-4-623-106
Integrated Language Arts - Primary Level                                  March 25, 1998             TX-4-623-208
Tomorrow's Promise Biology                                                March 23, 1998             TX-4-620-092
Tomorrow's Promise Chemistry                                              March 23, 1998             TX-4-620-096
Tomorrow's Promise Earth Science                                          March 23, 1998             TX-4-620-097
Tomorrow's Promise Language Arts Level 3                                  March 20, 1998             TX-4-613-670
Tomorrow's Promise Language Arts Level 4                                  March 20, 1998             TX-4-613-672
Tomorrow's Promise Language Arts Level 5                                  March 20, 1998             TX-4-613-676
Tomorrow's Promise Language Arts Level 6                                  March 20, 1998             TX-4-613-674
Tomorrow's Promise Language Arts Level 7                                  March 20, 1998             TX-4-613-671
Tomorrow's Promise Language Arts Level 8                                  March 20, 1998             TX-4-613-677
Tomorrow's Promise Language Arts Essay Levels 6-8                         March 27, 1998             TX-4-623-246
Tomorrow's Promise Mathematics Level K                                    March 20, 1998             TX-4-613-675
Tomorrow's Promise Mathematics Level 1                                    March 20, 1998             TX-4-613-687
---------------------------------------------------------------------------------------------------------------------

                                       11

<PAGE>

<CAPTION>

---------------------------------------------------------------------------------------------------------------------
PRODUCT NAME                                                              DATE FILED/ISSUED          COPYRIGHT NUMBER
------------                                                              -----------------          ----------------
<S>                                                                       <C>                        <C>
Tomorrow's Promise Mathematics Level 2                                    March 20, 1998             TX-4-613-690
Tomorrow's Promise Mathematics Level 3                                    March 20, 1998             TX-4-613-685
Tomorrow's Promise Mathematics Level 4                                    March 20, 1998             TX-4-613-688
Tomorrow's Promise Mathematics Level 5                                    March 20, 1998             TX-4-613-686
Tomorrow's Promise Mathematics Level 6                                    March 20, 1998             TX-4-613-683
Tomorrow's Promise Mathematics Level 7                                    March 20, 1998             TX-4-613-693
Tomorrow's Promise Mathematics Level 8                                    March 20, 1998             TX-4-613-689
Tomorrow's Promise Physical Science                                       March 23, 1998             TX-4-620-093
Tomorrow's Promise Problem Solving Strategies 6-8                         March 27, 1998             TX-4-623-245
Tomorrow's Promise Reading Level K                                        March 20, 1998             TX-4-613-697
Tomorrow's Promise Reading Level 1                                        March 20, 1998             TX-4-613-684
Tomorrow's Promise Reading Level 2                                        March 20, 1998             TX-4-613-673
Tomorrow's Promise Reading Level 3                                        March 20, 1998             TX-4-613-696
Tomorrow's Promise Reading Level 4                                        March 20, 1998             TX-4-613-691
Tomorrow's Promise Reading Level 5                                        March 20, 1998             TX-4-613-695
Tomorrow's Promise Reading Level 6                                        March 20, 1998             TX-4-613-692
Tomorrow's Promise Reading Level 7                                        March 20, 1998             TX-4-613-698
Tomorrow's Promise Reading Level 8                                        March 20, 1998             TX-4-613-694
Tomorrow's Promise Spelling Level 1                                       March 23, 1998             TX-4-620-098
Tomorrow's Promise Spelling Level 2                                       March 20, 1998             TX-4-613-678
Action Math                                                               March 27, 1998             TX-4-623-265
Community Exploration                                                     April 7, 1998              TX-4-634-223
English Language Development - Primary                                    March 25, 1998             TX-4-623-213
Steps to English Language Development - Beginner Level                    March 25, 1998             TX-4-623-215
Steps to English Language Development -                                   March 25, 1998             TX-4-623-214
Intermediate/Advanced
Explorations in Science, Earth, Physical, Biology                         March 27, 1998             TX-4-623-267
Friday Afternoon                                                          April 7, 1998              TX-4-634-222
Learning With Literature                                                  March 23, 1998             TX-4-620-101
Literature Based Mathematics                                              March 27, 1998             TX-4-623-257
Middle School Mathematics                                                 March 23, 1998             TX-4-620-100
Reading Skills Collection Reading All Around You                          April 7, 1998              TX-4-634-226
Reading Skills Collection Read to Imagine                                 April 7, 1998              TX-4-634-227
Reading Skills Collection Reading for Meaning                             April 7, 1998              TX-4-634-228
Reading Skills Collection Read to Think                                   April 7, 1998              TX-4-634-229
Spanish Language Arts                                                     March 27, 1998             TX-4-623-264
Stems                                                                     April 7, 1998              TX-4-634-225
Tapestry                                                                  March 27, 1998             TX-4-623-244
Writing Expedition 1.1 for Mac/Windows                                    March 20, 1998             TX-4-613-669
8th Grade Math Course Outline                                             March 27, 1998             TX-1-912-790
Grade 8 Math Support Materials                                            March 27, 1998             TX-1-920-115
8th Grade Math Teaching Aide                                              March 27, 1998             TX-1-920-450
Integrated Classroom Learning System
Mathematics Documentation                                                 March 27, 1998             TX-1-922-225
Spanish I Teachers' Guide                                                 March 27, 1998             TX-2-680-774
Spanish I: Course Outline, Answer Keys, Worksheets, Tests                 March 27, 1998             TX-2-686-570
ICLS: Spanish Courseware Sample                                           March 27, 1998             TX-2-723-547
Language Arts 3: Teachers' Guide                                          March 27, 1998             TX-2-671-312
Language Arts 3 Course Outline, Answer Keys, Worksheets,                  March 27, 1998             TX-2-671-313
Tests
Calculus: Teachers' Guide                                                 March 27, 1998             TX-2-125-878
Calculus: Course Outline, Answers Keys, Worksheets, Tests                 March 27, 1998             TX-2-125-879
Calculus: I C L S courseware sample                                       March 27, 1998             TX-2-172-445
Algebra I: Teachers' Guide                                                March 27, 1998             TX-2-178-697
Algebra I: Support materials sample                                       March 27, 1998             TX-2-178-698
Algebra I: Integrated classroom learning system: course                   March 27, 1998             TX-2-179-056
outline, answer keys, worksheets, tests
---------------------------------------------------------------------------------------------------------------------

                                       12

<PAGE>

<CAPTION>

---------------------------------------------------------------------------------------------------------------------
PRODUCT NAME                                                              DATE FILED/ISSUED          COPYRIGHT NUMBER
------------                                                              -----------------          ----------------
<S>                                                                       <C>                        <C>
Integrated Classroom Learning System: Mathematics: Grade 7:               March 27, 1998             TX-2-289-047
Support materials sample
Integrated Classroom Learning System: Trig/Analysis:                      March 27, 1998             TX-2-289-047
Teachers' Guide
Integrated Classroom Learning System: Trig/Analysis: Course               March 27, 1998             TX-2-289-049
outline, answer keys, worksheets, tests
Integrated Classroom Learning System: Mathematics: Grade 7:               March 27, 1998             TX-2-289-050
course outline, answers keys, worksheets, tests
Integrated Classroom Learning System: Mathematics: Grade 7:               March 27, 1998             TX-2-289-051
Teachers' Guide
Geometry: course outline, answer keys worksheets, tests                   March 27, 1998             TX-2-311-453
Geometry: Teachers' Guide                                                 March 27, 1998             TX-2-311-454
Integrated Classroom Learning System: Algebra II, Teachers'               March 27, 1998             TX-2-326-534
Guide
Trigonometry/math analysis: support material's sample                     March 27, 1998             TX-2-326-535
Algebra II: support material sample                                       March 27, 1998             TX-2-345-457
Algebra II: course outline, answer keys, worksheets, tests                March 27, 1998             TX-2-351-931
Geometry: support material sample                                         March 27, 1998             TX-2-400-824
ICLS courseware sample: Language Arts 6                                   March 27, 1998             TX-2-582-332
Integrated Classroom Learning System, Language Arts 6:                    March 27, 1998             TX-2-582-333
course outline, answer keys, worksheets, tests
ICLS courseware sample: Language Arts                                     March 27, 1998             TX-2-582-334
Integrated Classroom Learning Systemk Language Arts 5:                    March 27, 1998             TX-2-582-335
course outline, answer keys, worksheets, test
Integrated Classroom Learning System: Language Arts 5:                    March 27, 1998             TX-2-582-336
Teachers' Guide
Integrated Classroom Learning System: Language Arts 6:                    March 27, 1998             TX-2-582-337
Teachers' Guide
Language Arts 4: Teachers' Guide                                          March 27, 1998             TX-2-582-936
Language Arts 4: course outline, answer keys, worksheets tests            March 27, 1998             TX-2-582-937
ICLS courseware sample                                                    March 27, 1998             TX-2-584-925
ICLS courseware sample                                                    March 27, 1998             TX-2-584-928
Secondary Language Arts: course outline, answer keys,                     March 27, 1998             TX-2-593-770
worksheets, tests
Math - Level 5: Teachers' Guide                                           March 27, 1998             TX-2-671-309
German 1: Teachers' Guide                                                 March 27, 1998             TX-2-671-310
Physics: course outline, answer keys, worksheets, tests                   March 27, 1998             TX 2-671-315
ICLS courseware sample: 6th Grade Math                                    March 27, 1998             TX-2-672-548
Physics: Teachers' Guide                                                  March 27, 1998             TX-2-672-549
German                                                                    March 27, 1998             TX-2-672-555
Physics                                                                   March 27, 1998             TX-2-672-556
Math, Level 5                                                             March 27, 1998             TX-2-672-557
ICLS courseware sample: 4th Grade Math                                    March 27, 1998             TX-2-678-479
Math - Level 6: Teachers' Guide                                           March 27, 1998             TX-2-680-775
German 1: course outline, answer keys, worksheets, tests                  March 27, 1998             TX-2-686-566
ICLS courseware sample: 5th Grade Math                                    March 27, 1998             TX-2-686-567
Math - Level 6: course outline, answer keys, worksheets, tests            March 27, 1998             TX-2-686-568
Math - Level 4: course outline, answer keys, worksheets, tests            March 27, 1998             TX-2-686-569
Mathematics: Grade 4: Teachers' Guide                                     March 27, 1998             TX-2-686-571
ICLS Spanish 1: courseware sample                                         March 27, 1998             TX-2-723-547
ICLS courseware sample: Language Arts 3 Ideal Learning: a                 March 27, 1998             TX-2-455-456
preschool curriculum for home use/created by Brett W. Rogers
--------------------------------------------------------------------------------------------------------------------------------

                       Copyrights transferred from Hartley

<CAPTION>

---------------------------------------------------------------------------------------------------------------------
PRODUCT NAME                                                             DATE FILED/ISSUED           COPYRIGHT NUMBER
------------                                                             -----------------           ----------------
<S>                                                                      <C>                         <C>
Homonyms                                                                 September 14, 1998          TX-1-919-673
Antonyms/Synonyms                                                        September 14, 1998          TX-1-923-273
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                                       13

<PAGE>

<CAPTION>

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PRODUCT NAME                                                             DATE FILED/ISSUED           COPYRIGHT NUMBER
------------                                                             -----------------           ----------------
<S>                                                                      <C>                         <C>
Consonants                                                               September 14, 1998          TX-1-923-274
Vowels Tutorial                                                          September 14, 1998          TX-1-923-582
Number Words Level 2                                                     September 14, 1998          TX-1-925-907
Create Your Own - Vocabulary French                                      September 14, 1998          TX-1-926-180
Adjectives                                                               September 14, 1998          TX-1-926-189
Student Word Study                                                       September 14, 1998          TX-1-926-372
Super Wordfind                                                           September 14, 1998          TX-1-926-444
Create Intermediate                                                      September 14, 1998          TX-1-926-933
Create Vocabulary                                                        September 14, 1998          TX-1-926-934
Create Your Own - Vocabulary Spanish                                     September 14, 1998          TX-1-927-484
Print Your Own - Bingo                                                   September 14, 1998          TX-1-928-566
Vocabulary Controlled                                                    September 14, 1998          TX-1-928-661
Presidents Physical Fitness                                              September 14, 1998          TX-1-928-664
Letter Recognition                                                       September 14, 1998          TX-1-928-811
Create Your Own - Elementary                                             September 14, 1998          TX-1-929-475
Parent Reporting                                                         September 14, 1998          TX-1-929-605
Fact Sheets                                                              September 14, 1998          TX-1-931-540
Word - a - Tech                                                          September 14, 1998          TX-1-940-789
Create Your Own - CCD Lessons                                            September 14, 1998          TX-1-956-151
Metric Skills I & II                                                     September 14, 1998          TX-1-951-715
Adverbs                                                                  September 14, 1998          TX-1-965-834
Wordsearch                                                               September 14, 1998          TX-1-965-935
The Medalist Series: Continents                                          September 14, 1998          TX-2-012-225
Vowels                                                                   September 14, 1998          TX-2-013-525
Prescriptive Math Drill                                                  September 14, 1998          TX-2-023-375
Analogies Tutorial I and II                                              September 14, 1998          TX-2-025-231
Chariots, Cougars, and Kings                                             September 14, 1998          TX-2-025-232
Kittens, Kids and a Frog                                                 September 14, 1998          TX-2-025-233
Scuffy and Friends                                                       September 14, 1998          TX-2-025-234
The Medalist Series: Presidents                                          September 14, 1998          TX-2-025-245
Analogies Advanced I and II                                              September 14, 1998          TX-2-026-237
The Medalist Series: Women in History                                    September 14, 1998          TX-2-026-763
Famous Scientists                                                        September 14, 1998          TX-2-026-764
Number Words Level 1                                                     September 14, 1998          TX-2-026-823
Create You Own - Spell It                                                September 14, 1998          TX-2-027-287
Perplexing Puzzles                                                       September 14, 1998          TX-2-027-420
Temperature Experiments                                                  September 14, 1998          TX-2-029-315
Create Your Own - Medalists                                              September 14, 1998          TX-2-029-641
Chemical Elements                                                        September 14, 1998          TX-2-029-797
The Medalist Series: States                                              September 14, 1998          TX-2-029-798
Integers/Equations I & II                                                September 14, 1998          TX-2-030-245
Match Espanol                                                            September 14, 1998          TX-2-030-375
Reading For Meaning Level 1 Fairy Tales and Rhymes                       September 14, 1998          TX-2-030-397
Compound Words and Contractions                                          September 14, 1998          TX-2-030-398
Early Skills                                                             September 14, 1998          TX-2-030-399
Expanded Notation                                                        September 14, 1998          TX-2-031-150
Expanded Notation                                                        September 14, 1998          TX-2-031-151
Fact or Opinion                                                          September 14, 1998          TX-2-031-425
Cause and Effect                                                         September 14, 1998          TX-2-031-444
Match Francais                                                           September 14, 1998          TX-2-031-613
Figurative Language I and II                                             September 14, 1998          TX-2-031-654
The Medalist Series: Black Americans                                     September 14, 1998          TX-2-033-164
Binary Math                                                              September 14, 1998          TX-2-038-700
Create Your Own - Lessons                                                September 14, 1998          TX-2-038-794
What's First? What's Next?                                               September 14, 1998          TX-2-057-107
Sense or Nonsense                                                        September 14, 1998          TX-2-057-108
Little Riddles                                                           September 14, 1998          TX-2-057-109
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                                       14

<PAGE>

<CAPTION>

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PRODUCT NAME                                                             DATE FILED/ISSUED           COPYRIGHT NUMBER
------------                                                             -----------------           ----------------
<S>                                                                      <C>                         <C>
Word Families II                                                         September 14, 1998          TX-2-057-110
U.S. History                                                             September 14, 1998          TX-2-057-111
Harper and Sellers - A Guide to the Classics: Macbeth                    September 14, 1998          TX-2-080-883
Harper and Sellers - A Guide to the Classics: The Adventures             September 14, 1998          TX-2-081-007
of Huckleberry Finn
Reading For Meaning Level 2: Fairy Tales and Rhymes                      September 14, 1998          TX-2-159-771
Double 'N' Trouble                                                       September 14, 1998          TX-2-180-698
Word Ladders                                                             September 14, 1998          TX-2-212-911
Capitalization Practice and Test                                         September 14, 1998          TX-2-219-871
Print Your Own Bingo Plus                                                September 14, 1998          TX-2-240-339
Create Your Own Lessons Advanced                                         September 14, 1998          TX-2-242-832
Shakespeare                                                              September 14, 1998          TX-2-243-374
Opposites                                                                September 14, 1998          TX-2-247-992
Milt's Math Drills                                                       September 14, 1998          TX-2-249-310
Drawing Conclusions and Problem Solving                                  September 14, 1998          TX-2-258-394
Verb Usage III                                                           September 14, 1998          TX-2-279-559
Verb Usage I                                                             September 14, 1998          TX-2-315-676
Brick by Brick Level 1 Building Usage Skills                             September 14, 1998          TX-2-369-842
Brick by Brick Level 2 Building Usage Skills                             September 14, 1998          TX-2-370-451
Brick by Brick Level 1 Building Comprehension                            September 14, 1998          TX-2-373-860
Brick by Brick Level 4 Building Usage Skills                             September 14, 1998          TX-2-375-505
Brick by Brick Level 2 Building Vocabulary                               September 14, 1998          TX-2-378-720
Brick by Brick Level 4 Building Comprehension                            September 14, 1998          TX-2-384-016
Vocabulary Dolch                                                         September 14, 1998          TX-2-398-411
Brick by Brick Level 5 Building Comprehension                            September 14, 1998          TX-2-400-368
---------------------------------------------------------------------------------------------------------------------

                     Copyrights being transferred from Ideal

<CAPTION>

---------------------------------------------------------------------------------------------------------------------
PRODUCT NAME                                                     DATE FILED/ISSUED                   COPYRIGHT NUMBER
------------                                                     -----------------                   ----------------
<S>                                                              <C>                                 <C>
Calculus: Teacher's Guide                                        Transfer Application Pending        TX-2-125-878
                                                                 as of June 18, 1998
Calculus: Outline, Answer Keys, Worksheets, Tests                Transfer Application Pending        TX-2-125-879
                                                                 as of June 18, 1998
Calculus: Support Materials Sample                               Transfer Application Pending        TX-2-172-445
                                                                 as of June 18, 1998
Algebra I: Teacher's Guide                                       Transfer Application Pending        TX-2-178-697
                                                                 as of June 18, 1998
Algebra I: Support Materials Sample                              Transfer Application Pending        TX-2-178-698
                                                                 as of June 18, 1998
Algebra I: Outline, Answer Keys, Worksheets, Tests               Transfer Application Pending        TX-2-179-056
                                                                 as of June 18, 1998
Mathematics Grade 7: Support Materials Sample                    Transfer Application Pending        TX-2-289-047
                                                                 as of June 18, 1998
Trigonometry/Math Analysis: Teacher's Guide                      Transfer Application Pending        TX-2-289-048
                                                                 as of June 18, 1998
Trigonometry/Math Analysis: Outline, Answer Keys,                Transfer Application Pending        TX-2-289-049
Worksheets, Tests                                                as of June 18, 1998
Mathematics Grade 7: Outline, Answer Keys,                       Transfer Application Pending        TX-2-289-050
Worksheets, Tests                                                as of June 18, 1998
Mathematics Grade 7: Teacher's Guide                             Transfer Application Pending        TX-2-289-051
                                                                 as of June 18, 1998
Geometry: Course Outline, Answer Keys,,                          Transfer Application Pending        TX-2-311-453
Worksheets, Tests                                                as of June 18, 1998
Geometry: Teacher's Guide                                        Transfer Application Pending        TX-2-311-454
                                                                 as of June 18, 1998
Algebra II: Teacher's Guide                                      Transfer Application Pending        TX-2-326-534
                                                                 as of June 18, 1998
---------------------------------------------------------------------------------------------------------------------

                                       15

<PAGE>

<CAPTION>

---------------------------------------------------------------------------------------------------------------------
PRODUCT NAME                                                     DATE FILED/ISSUED                   COPYRIGHT NUMBER
------------                                                     -----------------                   ----------------
<S>                                                              <C>                                 <C>
Trigonometry/Math Analysis: Support Materials                    Transfer Application Pending        TX-2-326-535
Sample                                                           as of June 18, 1998
Algebra II: Support Materials Sample                             Transfer Application Pending        TX-2-345-457
                                                                 as of June 18, 1998
Algebra II: Outline, Answer Keys, Worksheets, Tests              Transfer Application Pending        TX-2-351-931
                                                                 as of June 18, 1998
Geometry: Support Materials Sample                               Transfer Application Pending        TX-2-400-824
                                                                 as of June 18, 1998
ICLS Courseware Sample Language Arts 6                           Transfer Application Pending        TX-2-582-332
                                                                 as of June 18, 1998
Language Arts 6 Course Outline, Answer Keys,                     Transfer Application Pending        TX-2-582-333
Worksheets, Tests                                                as of June 18, 1998
ICLS Courseware Sample: Language Arts 5                          Transfer Application Pending        TX-2-582-334
                                                                 as of June 18, 1998
ICLS Courseware Sample: Language Arts 5                          Transfer Application Pending        TX-2-582-334
                                                                 as of June 18, 1998
Language Arts 5: Course Outline, Answer Keys,                    Transfer Application Pending        TX-2-582-335
Worksheets, Tests                                                as of June 18, 1998
Language Arts 5: Teacher's Guide                                 Transfer Application Pending        TX-2-582-336
                                                                 as of June 18, 1998
Language Arts 6: Teacher's Guide                                 Transfer Application Pending        TX-2-582-337
                                                                 as of June 18, 1998
Language Arts 4: Teacher's Guide                                 Transfer Application Pending        TX-2-582-936
                                                                 as of June 18, 1998
Language Arts 4: Course Outline, Answer Keys,                    Transfer Application Pending        TX-2-582-937
Worksheets, Tests                                                as of June 18, 1998
ICLS Courseware Sample: Secondary Language Arts                  Transfer Application Pending        TX-2-584-925
                                                                 as of June 18, 1998
ICLS Courseware Sample: Language Arts 4                          Transfer Application Pending        TX-2-593-770
                                                                 as of June 18, 1998
Secondary Language Arts: Course Outline, Answer                  Transfer Application Pending        TX-2-686-566
Keys, Worksheets, Tests                                          as of June 18, 1998
Math - Level 5: Teacher's Guide                                  Transfer Application Pending        TX-2-671-309
                                                                 as of June 18, 1998
German I: Teacher's Guide                                        Transfer Application Pending        TX-2-671-310
                                                                 as of June 18, 1998
Physics: Course Outlines, Answer Keys, Worksheets,               Transfer Application Pending        TX-2-671-315
Tests                                                            as of June 18, 1998
ICLS Courseware Sample: 6th Grade Math                           Transfer Application Pending        TX-2-672-548
                                                                 as of June 18, 1998
Physics: Teacher's Guide                                         Transfer Application Pending        TX-2-672-549
                                                                 as of June 18, 1998
ICLS Courseware Sample: German                                   Transfer Application Pending        TX-2-672-555
                                                                 as of June 18, 1998
ICLS Courseware Sample: Physics                                  Transfer Application Pending        TX-2-672-556
                                                                 as of June 18, 1998
Math - Level 5: Course Outline, Answer Keys,                     Transfer Application Pending        TX-2-672-557
Worksheets, Tests                                                as of June 18, 1998
ICLS Courseware Sample: 4th Grade Math                           Transfer Application Pending        TX-2-678-479
                                                                 as of June 18, 1998
Math - Level 6: Teacher's Guide                                  Transfer Application Pending        TX-2-680-775
                                                                 as of June 18, 1998
German I: Course Outline, Answer Keys, Worksheets,               Transfer Application Pending        TX-2-686-566
Tests                                                            as of June 18, 1998
ICLS Courseware Sample: 5th Grade Math                           Transfer Application Pending        TX-2-686-567
                                                                 as of June 18, 1998
Math - Level 6: Course Outline, Answer Keys,                     Transfer Application Pending        TX-2-686-568
Worksheets, Tests                                                as of June 18, 1998
---------------------------------------------------------------------------------------------------------------------

                                       16

<PAGE>

<CAPTION>

---------------------------------------------------------------------------------------------------------------------
PRODUCT NAME                                                     DATE FILED/ISSUED                   COPYRIGHT NUMBER
------------                                                     -----------------                   ----------------
<S>                                                              <C>                                 <C>
Math - Level 4: Course Outline, Answer Keys,                     Transfer Application Pending        TX-2-686-569
Worksheets, Tests                                                as of June 18, 1998
Mathematics Grade 4: Teacher's Guide                             Transfer Application Pending        TX-2-686-571
                                                                 as of June 18, 1998
ICLS Courseware Sample: Language Arts 3                          Transfer Application Pending        TX-2-739-191
                                                                 as of June 18, 1998
---------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       17
<PAGE>

                               LICENSE AGREEMENTS

<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------------------------------------
                                                                                               IP OWNED
                                                                                                  BY
COMPANY             CONTRACT TYPE        PRODUCT LICENSED           JLC PRODUCT                COMPANY         ROYALTY
------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>                  <C>                        <C>                        <C>          <C>
Academic            Distribution         Algebra - intro,           Interactive                  Yes        40% of gross sales
Systems                                  intermed, coll             Mathematics
                                         Interactive Math           PreAlgebra 1&2
                                                                    Algebra 1&2
Academic            Distribution         RIMS, JLC notebook in      Notebook                     Yes        N/A
Systems                                  ASC Mediated Learning
                                         System
Bank Street         License              Wordbench                  Wordbench                    Yes        .05% per product
College of Ed.                                                      Secondary Learner

BBN                 Development          Algebra product            Algebra Wordbench            JLC        15% of net
CA DOE              License              Phys.Sci                   Mid Scl Sci                  JLC        10% per product
Comptons            Development          Multi-media                Tom.'s Promise               Yes        Version 1-3 20% Version
                                         encyclopedia               Elementary Learner                      4.25%
Dade County         Development                                     ELD                          JLC        8% to state of FL 2% to
                                                                                                            Dade

Edunetics           License              Rediscover Science         Mid Sch Sci                  Yes        40% of gross
First Byte          License              Voice or speech            Assorted Project             Yes        $60/network $25/lad
                                         property
FL DOE                                   ESOL curriculum for        T.E.A.C.H.                   Yes        15% of net
                                         teacher training

Learning            License              CWP Center, Writing        Tomorrow's                   Yes        Standalone $45/copy
Company                                  Center, Student Writing    Promise                                 networked $899/copy
                                         Center
Lernout &           License              Spell checker grammar      Writing Expedition           Yes        Writing Exped.
Haupsie                                  Checker                    Steps to ELD                            3.5%/ copy ($3.35/copy
                                         Thesaurus                  Elem/Mid Learner                        min.) 2.5%/copy
                                         Grammar checker            Elem/Mid Learner                        ($10/copy min.)
                                         thesaurus
Proximity           Tool license         Linguistic technology      Elem Lrnr Steps              Yes        Qty/Spell/Dictionary
                                                                                                            1-8:  $25/$30.00
                                                                                                            9-12:  $33/$39.60
                                                                                                            13-16: $41/$49.20
                                                                                                            17-20: $49/$58.80
                                                                                                            21-24:   $57/$68.40
                                                                                                            25-32:  $73/$87.60
                                                                                                            33-40:  $81/$97.00
                                                                                                            41+:  $89/106.80
Sensei              License              Algebra, intro to          Secondary Learner            Yes        15% of sales receipts
Software                                 Algebra
Sensei              License              Geometry, intro to         Secondary Learner            Yes        15% of sales receipts
Software                                 Geometry
Western/            License              GBE, stories, dictionary   GBE, ILA Story               Yes        greater of 12.25% of net
GBFE                                                                Books, Story Book                       billings of 70% of JLC
                                                                    Maker, Story Book                       price for GBE 4% of net
                                                                    Maker Deluxe-                           for SBD
                                                                    (SBD)
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

          This chart includes all license agreements granting to JLC any
          material right to use intellectual property, but does not include (w)
          development tools software under pre-paid license agreements, (x)
          office automation software used generally in the operations of JLC and
          (y) other software not used in the design, development, maintenance
          and support, testing, assembly and manufacture of the products of JLC,
          that, in the case of clause (w), (x) or (y), is commercially available
          for a license fee of less than $100,000 per annum.

                                       18

<PAGE>

                                                                    SCHEDULE VI
                                               to Security and Pledge Agreement
                                                     (JLC Learning Corporation)

                        TRADE SECRET OR KNOW-HOW LICENSES

None.

                                         19

<PAGE>

                                                                     SCHEDULE I
                                               to Security and Pledge Agreement
                                         (Funk & Wagnalls Yearbook Corporation)

Item A.  INTERCOMPANY NOTES

None.

Item B.  SECURITIES

None.

<PAGE>

                                                                    SCHEDULE II
                                               to Security and Pledge Agreement
                                         (Funk & Wagnalls Yearbook Corporation)

                              GOVERNMENT CONTRACTS

None.

<PAGE>

                                                                   SCHEDULE III
                                               to Security and Pledge Agreement
                                         (Funk & Wagnalls Yearbook Corporation)

Item A.  PATENTS

None.

Item B.  PATENT LICENSES

None.

<PAGE>

                                                                    SCHEDULE IV
                                               to Security and Pledge Agreement
                                         (Funk & Wagnalls Yearbook Corporation)

Item A.  TRADEMARKS

None.

Item B.  TRADEMARK LICENSES

None.

<PAGE>

                                                                     SCHEDULE V
                                               to Security and Pledge Agreement
                                         (Funk & Wagnalls Yearbook Corporation)

Item A.  COPYRIGHTS

All copyrights for Funk & Wagnalls Yearbook Corporation are filed in the United
States.

<TABLE>
<CAPTION>

-------------------------------------------------------------------------------
PRODUCT NAME                                           COPYRIGHT NUMBER
------------                                           ----------------
<S>                                                    <C>
Funk & Wagnalls New Encyclopedia                       TX-4-860-036
(full text as of 12/31/98)
-------------------------------------------------------------------------------
</TABLE>

*        Copyright registration submitted every 3 months for the updated and
         expanded Funk & Wagnalls New Encyclopedia full text database. Because
         of the slowness of the copyright office, Funk & Wagnalls has not yet
         received any of the copyright registration certificates for any of the
         first three quarters of 1999.

Item B.  COPYRIGHT LICENSES

None.

<PAGE>

                                                                    SCHEDULE VI
                                               to Security and Pledge Agreement
                                         (Funk & Wagnalls Yearbook Corporation)

                        TRADE SECRET OR KNOW-HOW LICENSES

None.

<PAGE>

                                                                     SCHEDULE I
                                               to Security and Pledge Agreement
                                                      (Primedia Reference Inc.)

Item A.  INTERCOMPANY NOTES

None.

Item B.  SECURITIES

<TABLE>
<CAPTION>
                                                                       Common Stock
                                                                       ------------

                                                 Authorized            Outstanding           % of Shares
Issuer (corporate)                                 Shares                Shares                Pledged
------------------                                 ------                ------                -------
<S>                                              <C>                   <C>                   <C>
Funk & Wagnalls Yearbook                              1,000                1,000                 100%
Corporation
Gareth Stevens, Inc.                             10,000,000            2,314,305                 100%
</TABLE>

<PAGE>

                                                                    SCHEDULE II
                                               to Security and Pledge Agreement
                                                      (Primedia Reference Inc.)

                              GOVERNMENT CONTRACTS

Contract dated 7/10/96, between City of Chicago and K-III Reference Corporation
(Facts on File News Services).

Amendment, dated 12/29/98, between City of Chicago, and K-II Reference
Corporation.

<PAGE>

                                                                   SCHEDULE III
                                               to Security and Pledge Agreement
                                                      (Primedia Reference Inc.)

Item A.  PATENTS

None.

Item B.  PATENT LICENSES

None.

<PAGE>

                                                                    SCHEDULE IV
                                               to Security and Pledge Agreement
                                                      (Primedia Reference Inc.)

Item A.  TRADEMARKS

<TABLE>
<CAPTION>

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Australia           FUNK & WAGNALLS          16       431782    8/16/85    B431782   8/16/85  Registered

Benelux            THE WORLD ALMANAC         16       843960     3/9/95    567339    3/9/95   Registered
                   AND BOOK OF FACTS

Brazil              FUNK & WAGNALLS          16     819783625    1/9/97                          FILED

Brazil             THE WORLD ALMANAC       11.10    819436526   8/28/96   819436526  3/30/99  Registered
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Canada               F & W DESIGN                                         TMA319654 10/17/86  Registered

Canada             THE WORLD ALMANAC                                      TMA362019  11/3/89  Registered

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China (People's    THE WORLD ALMANAC         16      98003500    5/7/98    1150491   2/14/98  Registered
Republic Of)

China (People's    THE WORLD ALMANAC         16      98003499    5/7/97    1150492   2/14/98  Registered
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China (People's  THE WORLD ALMANAC FOR       16      98003499    5/7/98    1150490   2/14/98  Registered
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European Union     THE WORLD ALMANAC         16       100173    11/24/98                         FILED
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France             THE WORLD ALMANAC         16     95/557515    2/9/95   95/557515  2/9/95   Registered
                   AND BOOK OF FACTS

Italy             IL LIBRO DEI FATTI        9 16    RM94C00290  6/28/94                          FILED
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Italy              THE WORLD ALMANAC         16     RM94C00290  6/28/94                          FILED
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Japan              THE WORLD ALMANAC         16      66240/94    7/5/96    3318120   6/6/97   Registered
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Japan                WORLD ALMANAC           16      66241/94    7/5/94    3308916   5/23/97  Registered
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Portugal           THE WORLD ALMANAC         16       307518    2/21/95    307518    2/16/96  Registered
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Spain              THE WORLD ALMANAC         16      1948018    2/16/95    1948018   2/16/95  Registered
                   AND BOOK OF FACTS

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Kingdom            AND BOOK OF FACTS

United States     CUT YOUR OWN TAXES         16                            1269846   3/13/84  Registered
                       AND SAVE

United States         DESIGN ONLY            16     75/409515   12/22/97                         FILED
                     (FACTOSAURUS)

United States            F & W               16                            1469770  12/22/87  Registered

United States          FACTS.COM             41     75/683176   4/15/99                          FILED

United States       FUNK & WAGNALLS          16     72/246608   5/25/66    835506    9/19/67  Registered
                      (STYLIZED)

United States        FW (STYLIZED)           16                            952041    1/30/73  Registered

United States          STANDARD              16                            672509    1/13/59  Registered

<PAGE>

<CAPTION>

  COUNTRY                MARK              CLASSES    APP. #    APP. DT    REG. #    REG. DT    STATUS
  -------                ----              -------    ------    -------    ------    -------    ------
<S>              <C>                       <C>      <C>         <C>       <C>       <C>        <C>
United States      THE WORLD ALMANAC         16     74/638910   2/27/95    1963108   3/19/96  Registered
                   AND BOOK OF FACTS

United States    THE WORLD ALMANAC AND       16     73/787317   3/17/89    1587742   3/20/90  Registered
                    BOOK OF FACTS &
                 LETTER W/GLOBE DESIGN

United States      THE WORLD ALMANAC         16     72/063595   12/3/58    683710    8/18/59  Registered
                  AND BOOK OF FACTS &
                     GLOBE DESIGN

United States    THE WORLD ALMANAC FOR       16     75/144976    8/5/96    2126810   1/6/98   Registered
                         KIDS

United States      THE WORLD ALMANAC         16     71/333770    1/9/33    303192    5/16/33  Registered
                  (STYLIZED LETTERS)

United States        WONDERSTORMS            42                            1538636   5/9/89   Registered

United States       WORLD ALMANAC &          16     73/629363   11/10/86   1445125   6/30/87  Registered
                   BOOK/GLOBE DESIGN

United States        WORLD ALMANAC           42     74/007825   12/4/89    1617205   10/9/90  Registered
                       EDUCATION

United States      THE WORLD ALMANAC         16     71/336450    4/5/33    305467    8/15/33   INACTIVE
                  AND BOOK OF FACTS &
                    CAPITOL DESIGN

United States     WORLD ALMANAC INFO         16     74/188163   7/24/91    174186    1/5/93    INACTIVE
                         POWER
</TABLE>

Item B.  TRADEMARK LICENSES

None.

<PAGE>

                                                                     SCHEDULE V
                                               to Security and Pledge Agreement
                                                      (Primedia Reference Inc.)

Item A.  COPYRIGHTS

All copyrights for Primedia Reference Inc. are filed in the United States.

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------
PRODUCT NAME                               COPYRIGHT NUMBER
------------                               ----------------
<S>                                        <C>
The 1999 World Almanac                     TX-4-898-925
--------------------------------------------------------------------------------
</TABLE>

*    Copyright registration submitted every November, upon publication, for each
     new edition of The World Almanac. Copyright registration will be submitted
     shortly for the 2000 World Almanac (publication date: 11/30/99)

Item B.  COPYRIGHT LICENSES

None.

<PAGE>

                                                                    SCHEDULE VI
                                               to Security and Pledge Agreement
                                                      (Primedia Reference Inc.)

                        TRADE SECRET OR KNOW-HOW LICENSES

None.

<PAGE>

                                                                     SCHEDULE I
                                               to Security and Pledge Agreement
                                                    (Weekly Reader Corporation)

Item A.  INTERCOMPANY NOTES

None.

Item B.  SECURITIES

<TABLE>
<CAPTION>

                                                                       Common Stock
                                                                       ------------
                                                 Authorized             Outstanding           % of Shares
Issuer (corporate)                                 Shares                 Shares                Pledged
------------------                                 ------                 ------                -------
<S>                                              <C>                   <C>                    <C>
Lifetime Learning Systems, Inc.                    1,000                   1,000                  100%
Primedia Reference Inc.                            1,000                   1,000                  100%
</TABLE>

<PAGE>

                                                                    SCHEDULE II
                                               to Security and Pledge Agreement
                                                    (Weekly Reader Corporation)

                              GOVERNMENT CONTRACTS

None.

<PAGE>

                                                                   SCHEDULE III
                                               to Security and Pledge Agreement
                                                    (Weekly Reader Corporation)

Item A.  PATENTS

None.

Item B.  PATENT LICENSES

None.

<PAGE>

                                                                    SCHEDULE IV
                                               to Security and Pledge Agreement
                                                    (Weekly Reader Corporation)

Item A.  TRADEMARKS

                              REGISTERED TRADEMARKS

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------------------
                                                            APP.                     REG.
COUNTRY          MARK                 CLASSES   APP. #      DATE        REG. #       DATE        STATUS
----------------------------------------------------------------------------------------------------------
<S>              <C>                  <C>      <C>          <C>         <C>         <C>         <C>
Canada           Career World                                           TMA         4/18/80     Registered
                                                                        243218
Canada           Current Lifestudies                                    TMA         2/8/85      Registered
                                                                        299691
Canada           Curriculum                                             TMA         5/22/87     Registered
                 Innovations, Inc.                                      327726
Canada           My Weekly Reader                                       TMA         1/10/75     Registered
                                                                        204370
Canada           Weekly Reader                                          TMA         11/2/73     Registered
                                                                        195222
Canada           World Newsmap of                                       TMA         6/27/80     Registered
                 the Week                                               247128
Canada           Writing! (Stylized)                                    TMA         6/3/83      Registered
                                                                        279939
United States    Banana Monkey's         16    75/611855    12/24/98                            Filed
United States    Buddy Bear's            42    75/618671    1/11/99                             Filed
United States    Career World            16                             955803      3/20/73     Registered
United States    Current Events          16                             241416      4/24/28     Registered
United States    Current Health          16                             1193623     4/13/82     Registered
United States    Current Science         16                             258834      7/16/29     Registered
                 (Stylized)
United States    Curriculum              16    74/147346    3/13/91     1729247     11/3/92     Registered
                 Innovations Group
United States    Funnybunny              16                             1219949     12/14/82    Registered
United States    Galaxy Weekly           41    75/189303    10/29/96    2236381     4/6/99      Registered
                 Reader & Design
United States    Hear America!           16    75/180039    10/10/96    2087843     8/12/97     Registered
United States    Imagine and Write       16                             885075      1/27/70     Registered
United States    Infographics            16    75/158987    8/30/96     2101274     9/30/97     Registered
United States    Kidkit & Design         16                             1582492     2/13/90     Registered
United States    Kids TV & Design        41    74/046859    4/6/90      1652023     7/23/91     Registered
United States    Know Your World         16                             851484      6/25/68     Registered
United States    Map Skills for          16                             879296      10/21/69    Registered
                 Today
United States    Map Skills for          16                             1606402     7/17/90     Registered
                 Today
United States    My Weekly Reader        16                             254284      3/19/29     Registered
United States    My Weekly Reader        16    75/719301    6/2/99                              Filed
                 Summer Magazine
United States    Nip                     28    75/322190    7/19/97     2152626     4/21/98     Registered
United States    Peanut and Jocko        16                             1549117     7/25/89     Registered
United States    Pulse for Today's       16    74/505517    3/28/94     1945000     1/2/96      Registered
                 Middleschools &
                 Design
----------------------------------------------------------------------------------------------------------

<PAGE>

                                                                             2

<CAPTION>

----------------------------------------------------------------------------------------------------------
                                                            APP.                     REG.
COUNTRY          MARK                 CLASSES   APP. #      DATE        REG. #       DATE        STATUS
----------------------------------------------------------------------------------------------------------
<S>              <C>                  <C>      <C>          <C>         <C>         <C>         <C>
United States    Read (Stylized)         16                             574960      5/26/53     Registered
United States    Read-Study-Think        16                             880929      11/18/69    Registered
United States    Science Matters         16    74/442122    9/30/93     1967619     4/16/96     Registered
United States    Science Spin            16    75/313516    6/23/97                             Filed
United States    The Largest             16    75/611854    12/24/98                            Filed
                 Newspaper for Kids
                 in the World!
United States    The Weekly Reader       16    75/611852    12/24/98                            Filed
                 Teacher
United States    Weekly Reader           16                             1503004     9/6/88      Registered
United States    Weekly Reader           42                             1519333     1/3/89      Registered
United States    Weekly Reader           42    75/584518    11/6/98                             Filed
United States    Weekly Reader Big       16    75/158992    8/30/96     2077656     7/8/97      Registered
                 Issue!
United States    Weekly Reader           16    75/611853    12/24/98                            Filed
                 News for Kids
United States    Weekly Reader           16    75/719300    6/2/99                              Filed
                 Summer Magazine
United States    World Newsmap of        16    75/572449    10/19/98                            Filed
                 the Month
United States    World Newsmap of        16                             1421904     12/23/86    Registered
                 the Week
United States    World Newsmap of        16                             1132464     4/1/80      Registered
                 the Week
United States    Writing Pals &          42    74/464121    11/30/93    1913914     8/22/95     Registered
                 Design
United States    Writing!                16    74/087100    8/13/90     1655545     9/3/91      Registered
United States    Writing! (Stylized)     16                             1238958     5/17/83     Registered
United States    Young America           16    75/179427    10/10/96    2087840     8/12/97     Registered
                 Votes
Canada           Current Consumer                                       TMA         4/11/80     Inactive
                                                                        242690
United States    A Heart Song            16                             1495789     7/12/88     Inactive
                 Novel & Design
United States    A Weekly Reader         16                             1500483     8/16/88     Inactive
                 Fairy Tale &
                 Design
United States    A Whiskers Book         16                             1495787     7/12/88     Inactive
                 & Design
United States    B.J.                    28    75/322189    7/10/97                             Inactive
United States    Challenges              16    74/208565    9/30/91                             Inactive
United States    Current Health          16                             1018333     8/12/75     Inactive
United States    Curriculum              16                             1333189     4/30/85     Inactive
                 Innovations, Inc.
United States    Eye (Stylized)          16                             995713      10/15/74    Inactive
United States    Fun Facts & Design      16                             1479584     3/8/88      Inactive
United States    Jelly Bean              16                             1042268     6/29/76     Inactive
                 Jamboree
United States    Little Sprout &         16                             1515344     12/6/88     Inactive
                 Design
----------------------------------------------------------------------------------------------------------

<PAGE>

                                                                             3

<CAPTION>

----------------------------------------------------------------------------------------------------------
                                                            APP.                     REG.
COUNTRY          MARK                 CLASSES   APP. #      DATE        REG. #       DATE        STATUS
----------------------------------------------------------------------------------------------------------
<S>              <C>                  <C>      <C>          <C>         <C>         <C>         <C>
United States    Make It Happen the      16                             1477639     2/23/88     Inactive
                 Choice Is Yours
United States    Newsprobe               16                             1595351     5/8/90      Inactive
United States    Smart Start &           16                             1485252     4/19/88     Inactive
                 Design
United States    Tomorrow Star &         16                             1479585     3/8/88      Inactive
                 Design
United States    U.S. Kids & Design      16                             1507100     10/4/88     Inactive
United States    Values and              16                             1019377     9/2/75      Inactive
                 Decisions
United States    Weekly Reader &         16    74/089880    8/20/90     1681978     4/7/92      Inactive
                 Design
United States    Zip                     28    75/322146    7/10/97     2152625     4/21/98     Registered
United States    Zips                    16                             890134      4/28/70     Registered
----------------------------------------------------------------------------------------------------------
</TABLE>

Item B.  TRADMARK LICENSES

None.

<PAGE>

                                                                     SCHEDULE V
                                               to Security and Pledge Agreement
                                                    (Weekly Reader Corporation)

Item A.  COPYRIGHTS

Weekly Reader and its subsidiaries generate numerous copyrights each week in
connection with numerous ongoing publishing activities. None of these copyrights
are individually material and they are not listed here.

Item B.  COPYRIGHT LICENSES

None.

<PAGE>

                                                                    SCHEDULE VI
                                               to Security and Pledge Agreement
                                                    (Weekly Reader Corporation)

                        TRADE SECRET OR KNOW-HOW LICENSES

None.

<PAGE>

                                                                     SCHEDULE I
                                               to Security and Pledge Agreement
                                               (American Guidance Service Inc.)

Item A.  INTERCOMPANY NOTES

None.

Item B.  SECURITIES

<TABLE>
<CAPTION>
                                                                         Common Stock
                                                   Authorized            Outstanding            % of Shares
Issuer (corporate)                                   Shares                 Shares                Pledged
------------------                                   ------                 ------                -------
<S>                                                <C>                   <C>                    <C>
AGS International Sales, Inc.                         2,500                   250                   100%
</TABLE>

<PAGE>

                                                                    SCHEDULE II
                                               to Security and Pledge Agreement
                                               (American Guidance Service Inc.)

                              GOVERNMENT CONTRACTS

Assessment Agreement and Assessor's Certification, dated 5/25/93, between City
of Circle Pines and AGS.

Professional/Consultant Services Contract, dated 10/01/97, between Fairfax
County Board of Supervisors and AGS.

Agreement, dated 10/27/97, between Montgomery County Public Schools and AGS.

Agreement, dated 10/09/90, between Fairfax County Public Schools and AGS.

Requirements Contract, dated 07/06/94, between Board of Education of the City of
New York and AGS.

Agreement, dated 8/31/89, between Albany City School District and Delmar
Publishers Inc.

<PAGE>

                                                                   SCHEDULE III
                                               to Security and Pledge Agreement
                                               (American Guidance Service Inc.)

Item A.  PATENTS

None.

Item B.  PATENT LICENSES

None.

<PAGE>

                                                                    SCHEDULE IV
                                               to Security and Pledge Agreement
                                               (American Guidance Service Inc.)

Item A.  TRADEMARKS

<TABLE>
<CAPTION>

    Country              Mark             Classes     App. #    App. Dt    Reg. #   Reg. Dt    Status
    -------              ----             -------     ------    -------    ------   -------    ------

    <S>           <C>                    <C>         <C>         <C>       <C>      <C>       <C>
     USA              COOPERATIVE            16     74/155,635  04/09/91  1,674,693 02/04/92  Registered
                      DISCIPLINE

     USA            STEP SYSTEMATIC          9      74/060,441  05/18/90  1,666,489 12/03/91  Registered
                     TRAINING FOR
                  EFFECTIVE PARENTING

     USA            STEP AND DESIGN        9, 16    74/059,930  05/17/90  1,666,672 12/03/91  Registered

     USA                  AGS                9      73/489,334  07/11/84  1,337,644 05/28/85  Registered

     USA               DATA SCAN             16     73/341,618  12/14/81  1,229,687 03/08/83  Registered

     USA                  AGS            9,16, 28,  73/245,478  01/09/80  1,164,458 08/11/81  Registered
                                             41

     USA           WOODCOCK READING        9, 16    74/601,874  11/22/94                       Inactive
                     MASTERY TESTS

     USA             I AM AMAZING            16     73/720,848  04/04/88  1,522,601 01/31/89   Inactive

     USA             I AM AMAZING            41     73/720,318  04/04/88  1,514,909 11/29/88   Inactive

     USA               EASEL-KIT             16     72/337,876  08/15/69   918,523  08/17/71   Inactive
</TABLE>

Item B.  TRADEMARK LICENSES

None.

<PAGE>

                                                                     SCHEDULE V
                                               to Security and Pledge Agreement
                                               (American Guidance Service Inc.)

Item A.  COPYRIGHTS

All copyrights for American Guidance Service Inc. are filed in the United
States.

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------
Product Name                                         Copyright Number
------------                                         ----------------
<S>                                                  <C>
PPVT                                                 TX4-531-097

K-TEA                                                TX4-737-590

DIAL                                                 TX2-907-985

BASC                                                 TX4-172-450

Vineland                                             TX3-431-949

WRMT                                                 TX2-276-301

KeyMath Test                                         TX2-380-291

OWLS (LC/OE Version)                                 TX3-803-842

OWLS (WE Version)                                    TX4-198-026

PIAT                                                 TX2-624-349

GFTA                                                 TX1-856-134

K-BIT                                                TX3-003-231

K-ABC (Easel 1)                                      TX1-563-401

K-ABC (Easel 2)                                      TX1-499-140

K-ABC (Easel 3)                                      TX1-452-750

K-ABC (Test Record Form)                             TX1-499-139

K-ABC (Manual)                                       TX1-458-788

K-ABC (Photo Cards)                                  TX-176-650

K-ABC (ASSIST)                                       TX1-412-461

K-ABC (Scoring Manual)                               TX1-458-787

K-ABC (Supplemental Forms)                           TX2-268-847
--------------------------------------------------------------------------------
</TABLE>

*   Copyrights are for educational tests. Information provided above is for the
    10 most valuable tests of an approximate total of 40. Information for the
    remaining tests will be provided as it is received.

Item B.  COPYRIGHT LICENSES

None.

<PAGE>

                                                                    SCHEDULE VI
                                               to Security and Pledge Agreement
                                               (American Guidance Service Inc.)

                        TRADE SECRET OR KNOW-HOW LICENSES

None.

<PAGE>

                                                                      EXHIBIT A
                                               to Security and Pledge Agreement

                                 PROMISSORY NOTE

$---------------                                              -------- --, ----

         FOR VALUE RECEIVED, the undersigned, ______________, a
_______________ corporation (the "MAKER"), promises to pay to the order of
________________, a ___________ _________ (the "PAYEE"), in equal ________
installments, commencing __________ __, ____ to and including __________ __,
____, the principal sum of ________________________ DOLLARS ($___________),
representing the aggregate principal amount of an intercompany loan 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
____________, which the Maker represents to be a lawful and commercially
reasonable rate, payable __________, 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 an account
established by the Payee at _______________ and shall be recorded on the grid
attached hereto by the holder hereof (including the Administrative Agent
(hereinafter defined) as pledgee). Upon notice from the Administrative Agent
that a Specified 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 Administrative Agent shall direct
in such notice.

         This Note is one of the Intercompany Notes referred to in, and
evidences Indebtedness incurred pursuant to Section 7.2.2 of the Credit
Agreement, dated as of November 17, 1999 (as amended, supplemented, amended and
restated or otherwise modified from time to time, the "CREDIT AGREEMENT"), among
Weekly Reader Corporation, a Delaware corporation ("WRC"), and JLC Learning
Corporation, a Delaware corporation ("JLC" and, together with WRC, the
"BORROWERS"), WRC Media Inc.(formerly known as EAC II Inc.), a Delaware
corporation and parent of JLC ("HOLDINGS"), as a guarantor, the various
financial institutions as are or may become parties thereto (collectively, the
"LENDERS"), DLJ Capital Funding, Inc., as the Syndication Agent (in such
capacity, the "SYNDICATION AGENT"), the Lead Arranger and the Sole Book Running
Manager, Bank of America, N.A., as administrative agent (in such capacity, the
"ADMINISTRATIVE AGENT") for the Lenders, and General Electric Capital
Corporation, as the documentation agent (in such capacity, the "DOCUMENTATION
AGENT") for the Lenders. Upon the occurrence and continuance of a Specified
Default under the Credit Agreement, and notice thereof by the Administrative
Agent to the Maker, the Administrative Agent shall have all rights of the Payee
to collect and accelerate, and enforce all

<PAGE>

rights with respect to, the Indebtedness evidenced by this Note. Unless
otherwise defined herein or the context otherwise requires, terms used herein
have the meanings provided in the Credit Agreement.

         Reference is made to the Credit Agreement for a description of the
Security and Pledge Agreement pursuant to which this Note has been pledged to
the Administrative Agent as security for the Secured Obligations outstanding
from time to time under the Credit Agreement and each other Loan Document.

         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 (including the Administrative 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 NEW YORK.

         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 ___________________________________________
                                       Name:
                                       Title:

                                 Pay to the order of BANK OF AMERICA, N.A., as
                                   Administrative Agent

                                 [NAME OF PAYEE]

                                 By ___________________________________________
                                       Name:
                                       Title:

                                      -2-

<PAGE>

                                      GRID

     Intercompany Loans made by [Name of Payee] to [Name of Maker] and payments
of principal of such Loans.

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
                             Amount of                 Amount of
                            Intercompany               Principal          Outstanding Principal
        Date                    Loan                    Payment                  Balance          Notation Made By
--------------------------------------------------------------------------------------------------------------------
<S>                   <C>                       <C>                       <C>                     <C>
--------------------- ------------------------- ------------------------- ----------------------- ------------------

--------------------- ------------------------- ------------------------- ----------------------- ------------------

--------------------- ------------------------- ------------------------- ----------------------- ------------------

--------------------- ------------------------- ------------------------- ----------------------- ------------------

--------------------- ------------------------- ------------------------- ----------------------- ------------------

--------------------- ------------------------- ------------------------- ----------------------- ------------------

--------------------- ------------------------- ------------------------- ----------------------- ------------------

--------------------- ------------------------- ------------------------- ----------------------- ------------------

--------------------- ------------------------- ------------------------- ----------------------- ------------------

--------------------- ------------------------- ------------------------- ----------------------- ------------------

--------------------- ------------------------- ------------------------- ----------------------- ------------------

--------------------- ------------------------- ------------------------- ----------------------- ------------------

--------------------- ------------------------- ------------------------- ----------------------- ------------------

--------------------- ------------------------- ------------------------- ----------------------- ------------------

--------------------- ------------------------- ------------------------- ----------------------- ------------------

--------------------- ------------------------- ------------------------- ----------------------- ------------------

--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>
                                                                      EXHIBIT B
                                               to Security and Pledge Agreement

                            PATENT SECURITY AGREEMENT

         This PATENT SECURITY AGREEMENT (this "AGREEMENT"), dated as of
__________ __, ____, is made between _______________, a ____________ corporation
(the "GRANTOR"), and BANK OF AMERICA, N.A., as administrative agent (together
with its successor(s) thereto in such capacity, the "ADMINISTRATIVE AGENT") for
each of the Secured Parties;

                              W I T N E S S E T H :

         WHEREAS, pursuant to a Credit Agreement, dated as of November 17, 1999
(as amended, supplemented, amended and restated or otherwise modified from time
to time, the "CREDIT AGREEMENT"), among Weekly Reader Corporation, a Delaware
corporation ("WRC"), and JLC Learning Corporation, a Delaware corporation
("JLC" and, together with WRC, the "Borrowers"), WRC Media Inc. (formerly known
as EAC II Inc.), a Delaware corporation and parent of JLC ("HOLDINGS"), as a
guarantor, the various financial institutions as are or may become parties
thereto (collectively, the "LENDERS"), DLJ Capital Funding, Inc., as the
Syndication Agent (in such capacity, the "SYNDICATION AGENT"), the Lead Arranger
and the Sole Book Running Manager, the Administrative Agent and General Electric
Capital Corporation, as the documentation agent (in such capacity, the
"DOCUMENTATION AGENT") for the Lenders, the Lenders and the Issuers have
extended Commitments to make Credit Extensions to the Borrowers;

         WHEREAS, in connection with the Credit Agreement, the Grantor has
executed and delivered a Security and Pledge Agreement, dated as of November 17,
1999 (as amended, supplemented, amended and restated or otherwise modified from
time to time, the "SECURITY AND PLEDGE AGREEMENT");

         WHEREAS, as a condition precedent to the making of the Credit
Extensions (including the initial Credit Extension) under the Credit Agreement,
the Grantor is required to execute and deliver this Agreement and to grant to
the Administrative Agent a continuing security interest in all of the Patent
Collateral (as defined below) to secure all Secured Obligations;

         WHEREAS, the Grantor has duly authorized the execution, delivery and
performance of this Agreement; and

         WHEREAS, it is in the best interests of the Grantor to execute this
Security and Pledge Agreement inasmuch as the Grantor will derive substantial
direct and indirect benefits from the Credit Extensions made from time to time
to the Borrowers by the Lenders and the Issuers pursuant to the Credit
Agreement;

<PAGE>

         NOW, THEREFORE, for good and valuable consideration, the receipt of
which is hereby acknowledged, and in order to induce the Lenders and the Issuers
to make Credit Extensions (including the initial Credit Extension) to the
Borrowers pursuant to the Credit Agreement, and to induce the Secured Parties to
enter into Rate Protection Agreements, the Grantor agrees, for the benefit of
each Secured 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 (or incorporated by reference) in the
Security and Pledge Agreement.

         SECTION 2. GRANT OF SECURITY INTEREST. For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, to
secure all of the Secured Obligations, the Grantor does hereby grant to the
Administrative Agent a security interest in, for its benefit and the benefit of
each Secured Party, all of the following property, to the extent now or
hereafter owned or acquired or existing by the Grantor (the "PATENT
COLLATERAL"):

                  (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 III attached hereto;

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

                  (c) all patent licenses, including each patent license
         referred to in ITEM B of SCHEDULE III attached hereto; 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 or patent
         application referred to in ITEM A of SCHEDULE III attached hereto, and
         for breach or enforcement of any patent license, including any patent
         license referred to in ITEM B of SCHEDULE III attached hereto, and all
         rights corresponding thereto throughout the world.

The "Patent Collateral" shall not include any general intangibles or other
rights arising under any contracts, instruments, licenses or other documents as
to which the grant of a security

                                       -2-

<PAGE>

interest would constitute a violation of a valid and enforceable restriction in
favor of a third party on such grant, unless and until any required consents
shall have been obtained. The undersigned agrees to use its best efforts to
obtain any such required consent.

         SECTION 3. SECURITY AND PLEDGE AGREEMENT. This Agreement has been
prepared by the Administrative Agent for the purpose of registering the security
interest of the Administrative Agent in the Patent Collateral with the United
States Patent and Trademark Office (the "PTO") and corresponding offices in
other countries of the world. The security interest granted hereby has been
granted as a supplement to, and not in limitation of, the security interest
granted to the Administrative Agent for its benefit and the benefit of each
Secured Party under the Security and Pledge Agreement. The Security and Pledge
Agreement (and all rights and remedies of the Administrative Agent and each
Secured Party thereunder) shall remain in full force and effect in accordance
with its terms.

         SECTION 4. RELEASE OF SECURITY INTEREST. Upon payment in full in cash
of all Secured Obligations, the termination or expiry of all Letters of Credit,
the termination of all Rate Protection Agreements and the termination of all
Commitments, the Administrative Agent shall, at the Grantor's commercially
reasonable expense, execute and deliver to the Grantor all instruments and other
documents, and perform all other acts, as may be necessary or proper to fully
release the lien on and security interest in the Patent Collateral which has
been granted hereunder. The Grantor shall be free to file and record such
instruments and documents in the PTO or other office anywhere in the world.

         SECTION 5. ACKNOWLEDGMENT. The Grantor does hereby further acknowledge
and affirm that the rights and remedies of the Administrative Agent with respect
to the security interest in the Patent Collateral granted hereby are more fully
set forth in the Security and Pledge 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

                                       -3-

<PAGE>

be deemed to be an original and all of which shall constitute together but one
and the same agreement.

                                       -4-

<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.

                                   [NAME OF GRANTOR]

                                   By__________________________________________
                                       Name:
                                       Title:

                                   BANK OF AMERICA, N.A.,
                                     as Administrative Agent

                                   By__________________________________________
                                       Name:
                                       Title:

                                       -5-

<PAGE>

                                                                   SCHEDULE III
                                                   to Patent Security Agreement

Item A.  PATENTS

                                 ISSUED PATENTS
<TABLE>
<CAPTION>

**COUNTRY     PATENT NO.               ISSUE DATE               INVENTOR(S)
                TITLE
<S>           <C>                      <C>                      <C>

</TABLE>

                           PENDING PATENT APPLICATIONS

<TABLE>
<CAPTION>

*COUNTRY      SERIAL NO.               FILING DATE              INVENTOR(S)
                TITLE
<S>           <C>                      <C>                      <C>

</TABLE>

                       PATENT APPLICATIONS IN PREPARATION

<TABLE>
<CAPTION>
                                        EXPECTED
*COUNTRY      DOCKET NO.               FILING DATE              INVENTOR(S)
              TITLE
<S>           <C>                      <C>                      <C>

</TABLE>

Item B.  PATENT LICENSES

<TABLE>
<CAPTION>

*Country or                                              Effective             Expiration         Subject
 Territory       Licensor           Licensee                Date                  Date             Matter
 ---------       --------           --------             ---------             ----------         -------
<S>              <C>                <C>                  <C>                   <C>                <C>

</TABLE>

--------

   * List items related to the United States first for ease of recordation.
     List items related to other countries next, grouped by country and in
     alphabetical order by country name.

<PAGE>

                                                                      EXHIBIT C
                                               to Security and Pledge Agreement

                          TRADEMARK SECURITY AGREEMENT

         This TRADEMARK SECURITY AGREEMENT (this "AGREEMENT"), dated as of
__________ __, ____, is made between _______________, a ____________ corporation
(the "GRANTOR"), and BANK OF AMERICA, N.A., as administrative agent (together
with its successor(s) thereto in such capacity, the "ADMINISTRATIVE AGENT") for
each of the Secured Parties;

                              W I T N E S S E T H :

         WHEREAS, pursuant to a Credit Agreement, dated as of November 17, 1999
(as amended, supplemented, amended and restated or otherwise modified from time
to time, the "CREDIT AGREEMENT"), among Weekly Reader Corporation, a Delaware
corporation ("WRC"), and JLC Learning Corporation, a Delaware corporation
("JLC" and, together with WRC, the "Borrowers"), WRC Media Inc. (formerly known
as EAC II Inc.), a Delaware corporation and parent of JLC ("HOLDINGS"), as a
guarantor, the various financial institutions as are or may become parties
thereto (collectively, the "LENDERS"), DLJ Capital Funding, Inc., as the
Syndication Agent (in such capacity, the "SYNDICATION AGENT"), the Lead Arranger
and the Sole Book Running Manager, the Administrative Agent and General Electric
Capital Corporation, as the documentation agent (in such capacity, the
"DOCUMENTATION AGENT") for the Lenders, the Lenders and the Issuers have
extended Commitments to make Credit Extensions to the Borrowers;

         WHEREAS, in connection with the Credit Agreement, the Grantor has
executed and delivered a Security and Pledge Agreement, dated as of November 17,
1999 (as amended, supplemented, amended and restated or otherwise modified from
time to time, the "SECURITY AND PLEDGE AGREEMENT");

         WHEREAS, as a condition precedent to the making of the Credit
Extensions (including the initial Credit Extension) under the Credit Agreement,
the Grantor is required to execute and deliver this Agreement and to grant to
the Administrative Agent a continuing security interest in all of the Trademark
Collateral (as defined below) to secure all Secured Obligations;

         WHEREAS, the Grantor has duly authorized the execution,
delivery and performance of this Agreement; and

         WHEREAS, it is in the best interests of the Grantor to execute this
Security and Pledge Agreement inasmuch as the Grantor will derive substantial
direct and indirect benefits from the Credit Extensions made from time to time
to the Borrowers by the Lenders and the Issuers pursuant to the Credit
Agreement;

<PAGE>

         NOW, THEREFORE, for good and valuable consideration, the receipt of
which is hereby acknowledged, and in order to induce the Lenders and the Issuers
to make Credit Extensions (including the initial Credit Extension) to the
Borrowers pursuant to the Credit Agreement, and to induce the Secured Parties to
enter into Rate Protection Agreements, the Grantor agrees, for the benefit of
each Secured 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 (or incorporated by reference) in the
Security and Pledge Agreement.

         SECTION 2. GRANT OF SECURITY INTEREST. For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, to
secure all of the Secured Obligations, the Grantor does hereby grant to the
Administrative Agent a security interest in, for its benefit and the benefit of
each Secured Party, all of the following property, to the extent now or
hereafter owned or acquired or existing by the Grantor (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, designs and other
         source of business identifiers (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 (the
         "PTO") or in any other 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 IV attached hereto;

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

                  (c) all reissues, extensions or renewals of any of the items
         described in CLAUSE (a) and (b);

                  (d) all of the goodwill of the business connected with the use
         of, and symbolized by the items described in, CLAUSE (a); and

                                       -2-

<PAGE>

                  (e) all proceeds of, and rights associated with, the
         foregoing, including any claim by the 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 IV 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.

The "Trademark Collateral" shall not include any general intangibles or other
rights arising under any contracts, instruments, licenses or other documents as
to which the grant of a security interest would constitute a violation of a
valid and enforceable restriction in favor of a third party on such grant,
unless and until any required consents shall have been obtained. The undersigned
agrees to use its best efforts to obtain any such required consent.

         SECTION 3. SECURITY AND PLEDGE AGREEMENT. This Agreement has been
prepared by the Administrative Agent for the purpose of registering the security
interest of the Administrative Agent in the Trademark Collateral with the PTO
and corresponding offices in other countries of the world. The security interest
granted hereby has been granted as a supplement to, and not in limitation of,
the security interest granted to the Administrative Agent for its benefit and
the benefit of each Secured Party under the Security and Pledge Agreement. The
Security and Pledge Agreement (and all rights and remedies of the Administrative
Agent and each Secured Party thereunder) shall remain in full force and effect
in accordance with its terms.

         SECTION 4. RELEASE OF SECURITY INTEREST. Upon payment in full in cash
of all Secured Obligations, the termination or expiry of all Letters of Credit,
the termination of all Rate Protection Agreements and the termination of all
Commitments, the Administrative Agent shall, at the Grantor's commercially
reasonable expense, execute and deliver to the Grantor all instruments and other
documents, and perform all other acts, as may be necessary or proper to fully
release the lien on and security interest in the Trademark Collateral which has
been granted hereunder. The Grantor shall be free to file and record such
instruments and documents in the PTO or other office anywhere in the world.

         SECTION 5. ACKNOWLEDGMENT. The Grantor does hereby further acknowledge
and affirm that the rights and remedies of the Administrative Agent with respect
to the security interest in the Trademark Collateral granted hereby are more
fully set forth in the Security and Pledge Agreement, the terms and provisions
of

                                       -3-

<PAGE>

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.

                                      -4-

<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.

                                 [NAME OF GRANTOR]

                                  By___________________________________________
                                     Name:
                                     Title:

                                  BANK OF AMERICA, N.A.,
                                    as Administrative Agent

                                  By___________________________________________
                                     Name:
                                     Title:

                                       -5-

<PAGE>

                                                                    SCHEDULE IV
                                                to Trademark Security Agreement

Item A.  TRADEMARKS

                              REGISTERED TRADEMARKS

<TABLE>
<CAPTION>

*Country      Trademark     Registration No.       Registration Date
 -------      ---------     ----------------       -----------------
<S>           <C>           <C>                    <C>

</TABLE>

                         PENDING TRADEMARK APPLICATIONS

<TABLE>
<CAPTION>

*Country      Trademark     Serial No.     Filing Date
 -------      ---------     -----------    -----------
<S>           <C>           <C>            <C>

</TABLE>

                      TRADEMARK APPLICATIONS IN PREPARATION

<TABLE>
<CAPTION>

                                            Expected
Products/
*Country      Trademark     Docket No.     Filing Date      Services
 -------      ---------     ----------     -----------      --------
<S>           <C>           <C>            <C>              <C>

</TABLE>

Item B.  TRADEMARK LICENSES

<TABLE>
<CAPTION>

*Country or                                                       Effective  Expiration
 Territory     Trademark        Licensor          Licensee           Date       Date
 ---------     ---------        --------          --------        ---------  ----------
<S>            <C>              <C>               <C>             <C>        <C>

</TABLE>

--------------------

    *   List items related to the United States first for ease of recordation.
        List items related to other countries next, grouped by country and in
        alphabetical order by country name.

<PAGE>

                                                                      EXHIBIT D
                                              to  Security and Pledge Agreement

                          COPYRIGHT SECURITY AGREEMENT

         This COPYRIGHT SECURITY AGREEMENT (this "AGREEMENT"), dated as of
__________ __, ____, is made between _______________, a ____________ corporation
(the "GRANTOR"), and BANK OF AMERICA, N.A., as administrative agent (together
with its successor(s) thereto in such capacity, the "ADMINISTRATIVE AGENT") for
each of the Secured Parties;

                              W I T N E S S E T H :

         WHEREAS, pursuant to a Credit Agreement, dated as of November 17, 1999
(as amended, supplemented, amended and restated or otherwise modified from time
to time, the "CREDIT AGREEMENT"), among Weekly Reader Corporation, a Delaware
corporation ("WRC"), and JLC Learning Corporation, a Delaware corporation (
"JLC" and, together with WRC, the "Borrowers"), WRC Media Inc. (formerly known
as EAC II Inc.), a Delaware corporation and parent of WRC ("HOLDINGS"), as a
guarantor, the various financial institutions as are or may become parties
thereto (collectively, the "LENDERS"), DLJ Capital Funding, Inc., as the
Syndication Agent (in such capacity, the "SYNDICATION AGENT"), the Lead Arranger
and the Sole Book Running Manager, the Administrative Agent and General Electric
Capital Corporation, as the documentation agent (in such capacity, the
"DOCUMENTATION AGENT") for the Lenders, the Lenders and the Issuers have
extended Commitments to make Credit Extensions to the Borrowers;

         WHEREAS, in connection with the Credit Agreement, the Grantor has
executed and delivered a Security and Pledge Agreement, dated as of November 17,
1999 (as amended, supplemented, amended and restated or otherwise modified from
time to time, the "SECURITY AND PLEDGE AGREEMENT");

         WHEREAS, as a condition precedent to the making of the Credit
Extensions (including the initial Credit Extension) under the Credit Agreement,
the Grantor is required to execute and deliver this Agreement and to grant to
the Administrative Agent a continuing security interest in all of the Copyright
Collateral (as defined below) to secure all Secured Obligations;

         WHEREAS, the Grantor has duly authorized the execution,
delivery and performance of this Agreement; and

         WHEREAS, it is in the best interests of the Grantor to execute this
Security and Pledge Agreement inasmuch as the Grantor will derive substantial
direct and indirect benefits from the Credit Extensions made from time to time
to the Borrowers by the Lenders and the Issuers pursuant to the Credit
Agreement;

<PAGE>

         NOW, THEREFORE, for good and valuable consideration, the receipt of
which is hereby acknowledged, and in order to induce the Lenders and the Issuers
to make Credit Extensions (including the initial Credit Extension) to the
Borrowers pursuant to the Credit Agreement, and to induce the Secured Parties to
enter into Rate Protection Agreements, the Grantor agrees, for the benefit of
each Secured 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 (or incorporated by reference) in the
Security and Pledge Agreement.

         SECTION 2. GRANT OF SECURITY INTEREST. For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, to
secure all of the Secured Obligations, the Grantor does hereby grant to the
Administrative Agent a security interest in, for its benefit and the benefit of
each Secured Party, all of the following property (the "COPYRIGHT COLLATERAL"),
to the extent now or hereafter owned or acquired or existing by it, being all
copyrights of the Grantor, registered or unregistered, now or hereafter in force
throughout the world, including all of the Grantor's right, title and interest
in and to all copyrights registered in the United States Copyright Office or
anywhere else in the world and also including the copyrights referred to in ITEM
A of SCHEDULE V attached hereto, and all applications for registration thereof,
whether pending or in preparation, all copyright licenses, including each
copyright license referred to in ITEM B of SCHEDULE V 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 licenses, royalties,
income, payments, claims, damages and proceeds of suit.

The "Copyright Collateral" shall not include any general intangibles or other
rights arising under any contracts, instruments, licenses or other documents as
to which the grant of a security interest would constitute a violation of a
valid and enforceable restriction in favor of a third party on such grant,
unless and until any required consents shall have been obtained. The undersigned
agrees to use its best efforts to obtain any such required consent.

         SECTION 3. SECURITY AND PLEDGE AGREEMENT. This Agreement has been
prepared by the Administrative Agent for the purpose of registering the security
interest of the Administrative Agent in the Copyright Collateral with the United
States Copyright Office. The security interest granted hereby has been granted
as a

                                       -2-

<PAGE>

supplement to, and not in limitation of, the security interest granted to the
Administrative Agent for its benefit and the benefit of each Secured Party under
the Security and Pledge Agreement. The Security and Pledge Agreement (and all
rights and remedies of the Administrative Agent and each Secured Party
thereunder) shall remain in full force and effect in accordance with its terms.

         SECTION 4. RELEASE OF SECURITY INTEREST. Upon payment in full in cash
of all Secured Obligations, the termination or expiry of all Letters of Credit,
the termination of all Rate Protection Agreements and the termination of all
Commitments, the Administrative Agent shall, at the Grantor's commercially
reasonable expense, execute and deliver to the Grantor all instruments and other
documents, and perform all other acts, as may be necessary or proper to fully
release the lien on and security interest in the Copyright Collateral which has
been granted hereunder. The Grantor shall be free to file and record such
instruments and documents in the United States Copyright Office or other office
anywhere in the world.

         SECTION 5. ACKNOWLEDGMENT. The Grantor does hereby further acknowledge
and affirm that the rights and remedies of the Administrative Agent with respect
to the security interest in the Copyright Collateral granted hereby are more
fully set forth in the Security and Pledge 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.

                                       -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.

                                 [NAME OF GRANTOR]

                                 By____________________________________________
                                     Name:
                                     Title:

                                 BANK OF AMERICA, N.A.
                                   as Administrative Agent

                                 By____________________________________________
                                     Name:
                                     Title:

                                       -4-

<PAGE>

                                                                     SCHEDULE V
                                                                   to Copyright
                                                             Security Agreement

Item A.  COPYRIGHTS

<TABLE>
<CAPTION>

*Country       Registration No.     Registration Date     Author(s)    Title
 -------       ----------------     -----------------     ---------    -----
<S>            <C>                  <C>                   <C>          <C>

</TABLE>

                   COPYRIGHT PENDING REGISTRATION APPLICATIONS

<TABLE>
<CAPTION>

*Country       Serial No.           Filing Date           Author(s)    Title
 -------       ----------           -----------           ---------    -----
<S>            <C>                  <C>                   <C>          <C>

</TABLE>

               COPYRIGHT REGISTRATION APPLICATIONS IN PREPARATION

<TABLE>
<CAPTION>

                                     Expected
*Country       Docket No.           Filing Date           Author(s)    Title
--------       ----------           -----------           ---------    -----
<S>            <C>                  <C>                   <C>          <C>

</TABLE>

-----------------
   *   List items related to the United States first for ease of recordation.
       List items related to other countries next, grouped by country and in
       alphabetical order by country name.

<PAGE>

Item B.  COPYRIGHT LICENSES

<TABLE>
<CAPTION>

*Country or                              Effective  Expiration        Subject
 Territory      Licensor      Licensee     Date        Date            Matter
 ---------      --------      --------   ---------  ----------        -------
<S>             <C>           <C>        <C>        <C>               <C>

</TABLE>

<PAGE>

                                                                        ANNEX I
                                               to Security and Pledge Agreement

                   SUPPLEMENT TO SECURITY AND PLEDGE AGREEMENT

         This SUPPLEMENT NO. ___, dated as of ________ __, ____ (this
"SUPPLEMENT"), to the Security and Pledge Agreement, dated as of November 17,
1999 (as amended, supplemented, amended and restated or otherwise modified from
time to time, the "SECURITY AND PLEDGE AGREEMENT"), among the initial
signatories thereto and each other Person which from time to time thereafter
became a party thereto pursuant to Section 7.5 thereof (each, individually, a
"GRANTOR", and, collectively, the "GRANTORS"), in favor of BANK OF AMERICA,
N.A., as administrative agent (together with any successor(s) thereto in such
capacity, the "ADMINISTRATIVE AGENT") for each of the Secured Parties (such and
other capitalized terms being used herein with the meanings provided, or
incorporated by reference, in the Security and Pledge Agreement), is made by the
undersigned.

                           W I T N E S S E T H:

         WHEREAS, pursuant to that certain Credit Agreement, dated as of
November 17, 1999 (as amended, supplemented, amended and restated or otherwise
modified from time to time, the "CREDIT AGREEMENT"), among Weekly Reader
Corporation, a Delaware corporation ("WRC"), and JLC Learning Corporation, a
Delaware corporation ("JLC" and, together with WRC, the "BORROWERS"), WRC Media
Inc. (formerly known as EAC II Inc.), a Delaware corporation and parent of JLC
("HOLDINGS"), as a guarantor, the various financial institutions as are or may
become parties thereto (collectively, the "LENDERS"), DLJ Capital Funding, Inc.,
as the Syndication Agent (in such capacity, the "SYNDICATION AGENT"), the Lead
Arranger and the Sole Book Running Manager, the Administrative Agent and General
Electric Capital Corporation, as the documentation agent (in such capacity, the
"DOCUMENTATION AGENT") for the Lenders, the Lenders and the Issuers have
extended Commitments to make Credit Extensions to the Borrowers;

         WHEREAS, as a condition precedent to the making and maintenance of the
Credit Extensions under the Credit Agreement, the undersigned is required to
execute and deliver this Supplement;

         WHEREAS, the undersigned has duly authorized the execution, delivery
and performance of this Supplement and the Security and Pledge Agreement;

         WHEREAS, the Security and Pledge Agreement provides that additional
parties may become Grantors under the Security and Pledge Agreement by execution
and delivery of an instrument in the form of this Supplement;

<PAGE>

         WHEREAS, pursuant to the provisions of Section 7.5 of the Security and
Pledge Agreement, the undersigned is becoming an Additional Grantor under the
Security and Pledge Agreement; and

         WHEREAS, the undersigned desires to become a Grantor under the Security
and Pledge Agreement in order to induce the Secured Parties to continue to make
and maintain Credit Extensions under the Credit Agreement as consideration
therefor;

         NOW, THEREFORE, the undersigned agrees, for the benefit of each Secured
Party, as follows:

         SECTION 1. In accordance with the Security and Pledge Agreement, the
undersigned by its signature below becomes a Grantor under the Security and
Pledge Agreement with the same force and effect as if it were an original
signatory thereto as a Grantor and the undersigned hereby

                  (a)  agrees to all the terms and provisions of the
         Security and Pledge Agreement applicable to it as a Grantor
         thereunder;

                  (b) assigns and pledges to the Administrative Agent for its
         benefit and the ratable benefit of each of the Secured Parties, and
         grants to the Administrative Agent for its benefit and the ratable
         benefit of each of the Secured Parties, a security interest in all of
         the following, whether now or hereafter existing or acquired by the
         undersigned (its "COLLATERAL"):

                           (i) all Intercompany Notes in which the undersigned
                  has an interest (including each Intercompany Note described in
                  ITEM A of SCHEDULE I hereto);

                           (ii) all interest and other payments and rights with
                  respect to each Intercompany Note in which the undersigned has
                  an interest;

                           (iii) all Investment Property in which the
                  undersigned has an interest (including the Securities of each
                  issuer described in ITEM B of SCHEDULE I hereto); PROVIDED,
                  that, in the case of Investment Property consisting of
                  Securities of an issuer that is a Foreign Subsidiary of the
                  undersigned, the pledge of such Securities of such issuer
                  shall be limited to the extent such pledge would not exceed
                  65% of the total combined voting power of all classes of
                  Securities of such Foreign Subsidiary entitled to vote;

                                       -2-

<PAGE>

                           (iv) all equipment in all of its forms (including all
                  Motor Vehicles) of the undersigned, wherever located,
                  including all parts thereof and all accessions, additions,
                  attachments, improvements, substitutions and replacements
                  thereto and therefor and all accessories related thereto (any
                  and all of the foregoing being the "EQUIPMENT");

                           (v) all inventory in all of its forms of the
                  undersigned, wherever located, including

                                    (A) all raw materials and work in process
                           therefor, finished goods thereof, and materials used
                           or consumed in the manufacture or production thereof,

                                    (B) all goods in which the undersigned has
                           an interest in mass or a joint or other interest or
                           right of any kind (including goods in which the
                           undersigned has an interest or right as consignee),
                           and

                                    (C) all goods which are returned to or
                           repossessed by the undersigned,

                  and all accessions thereto, products thereof and documents
                  therefor (any and all such inventory, materials, goods,
                  accessions, products and documents being the "INVENTORY");

                           (vi) all accounts, contracts, contract rights,
                  chattel paper, documents, instruments, and general intangibles
                  (including tax refunds) of the undersigned, whether or not
                  arising out of or in connection with the sale or lease of
                  goods or the rendering of services, and all rights of the
                  undersigned now or hereafter existing in and to all security
                  agreements, guaranties, leases and other contracts securing or
                  otherwise relating to any such accounts, contracts, contract
                  rights, chattel paper, documents, instruments, and general
                  intangibles (any and all such accounts, contracts, contract
                  rights, chattel paper, documents, instruments, and general
                  intangibles being the "RECEIVABLES", and any and all such
                  security agreements, guaranties, leases and other contracts
                  being the "RELATED CONTRACTS");

                           (vii) all Deposit Accounts of the undersigned and all
                  cash, checks, drafts, notes, bills of exchange, money orders
                  and other like instruments, if any, now

                                       -3-

<PAGE>

                  owned or hereafter acquired, held therein (or in sub- accounts
                  thereof) and all certificates and instruments, if any, from
                  time to time representing or evidencing such investments, and
                  all interest, earnings and proceeds in respect thereof;

                           (viii)  all Intellectual Property Collateral of
                  the undersigned;

                           (ix) 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;

                           (x) all of the undersigned's other property and
                  rights of every kind and description and interests therein;
                  and

                           (xi) all products, offspring, rents, issues, profits,
                  returns, income and proceeds of and from any and all of the
                  foregoing Collateral (including proceeds which constitute
                  property of the types described in SUBCLAUSES (b)(i) through
                  (b)(x), proceeds deposited from time to time in any lock box
                  or Deposit Account of the undersigned, and, to the extent not
                  otherwise included, all payments under insurance (whether or
                  not the Administrative 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);

         PROVIDED, HOWEVER, that "Collateral" shall not include any general
         intangibles or other rights arising under any contracts, instruments,
         licenses or other documents as to which the grant of a security
         interest would constitute a violation of a valid and enforceable
         restriction in favor of a third party on such grant, unless and until
         any required consents shall have been obtained and the undersigned
         agrees to use its best efforts to obtain any such required consent;

                  (c)  agrees that each of the Schedules attached hereto
         shall be deemed to be a Schedule thereto; and

                  (d) represents and warrants that the representations and
         warranties made by it as a Grantor thereunder are true and correct on
         and as of the date hereof.

                                       -4-

<PAGE>

In furtherance of the foregoing, each reference to a "Grantor" or "Additional
Grantor" in the Security and Pledge Agreement shall be deemed to include the
undersigned.

         SECTION 2. The undersigned hereby represents and warrants that this
Supplement has been duly authorized, executed and delivered by the undersigned
and constitutes a legal, valid and binding obligation of the undersigned,
enforceable against it in accordance with its terms.

         SECTION 3. Except as expressly supplemented hereby, the Security and
Pledge Agreement shall remain in full force and effect in accordance with its
terms.

         SECTION 4. In the event any one or more of the provisions contained in
this Supplement should be held invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained
herein and in the Security and Pledge Agreement shall not in any way be affected
or impaired.

         SECTION 5. Without limiting the provisions of the Credit Agreement (or
any other Loan Document, including the Security and Pledge Agreement), the
undersigned agrees to reimburse the Administrative Agent for its reasonable
out-of-pocket expenses in connection with this Supplement, including reasonable
attorneys' fees and expenses of the Administrative Agent.

         SECTION 6. THIS SUPPLEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER
AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK. THIS SUPPLEMENT, THE
SECURITY AND PLEDGE AGREEMENT AND THE OTHER LOAN DOCUMENTS CONSTITUTE THE ENTIRE
UNDERSTANDING AMONG THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF
AND THEREOF AND SUPERSEDE ANY PRIOR AGREEMENTS, WRITTEN OR ORAL, WITH RESPECT
THERETO.

         SECTION 7. This Supplement hereby incorporates by reference the
provisions of the Security and Pledge Agreement, which provisions are deemed to
be a part hereof, and this Supplement shall be deemed to be a part of the
Security and Pledge Agreement.

         SECTION 8. This Supplement 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.

         SECTION 9.  WITHOUT LIMITING THE EFFECT OF SECTION 7.11 OF
THE SECURITY AND PLEDGE AGREEMENT, THE SECURED PARTIES AND THE
UNDERSIGNED HEREBY EXPRESSLY AND IRREVOCABLY SUBMIT TO THE

                                       -5-

<PAGE>

JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, AND OF THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE LOCATED IN
NEW YORK COUNTY OF THE STATE OF NEW YORK, FOR THE PURPOSE OF ANY SUCH LITIGATION
AS SET FORTH ABOVE AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED
THEREBY IN CONNECTION WITH SUCH LITIGATION. THE UNDERSIGNED IRREVOCABLY CONSENTS
TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL
SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. THE UNDERSIGNED HEREBY
EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY
SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT
ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT
THAT THE UNDERSIGNED HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION
OF ANY COURT OF FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE,
ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH
RESPECT TO ITSELF OR ITS PROPERTY, THE UNDERSIGNED HEREBY IRREVOCABLY WAIVES (TO
THE EXTENT PERMITTED UNDER APPLICABLE LAW) SUCH IMMUNITY IN RESPECT OF ITS
OBLIGATIONS UNDER THIS SUPPLEMENT, THE SECURITY AND PLEDGE AGREEMENT AND THE
OTHER LOAN DOCUMENTS.

         SECTION 10. WITHOUT LIMITING THE EFFECT OF SECTION 7.12 OF THE SECURITY
AND PLEDGE AGREEMENT, THE SECURED PARTIES AND THE UNDERSIGNED HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN
CONNECTION WITH, THIS SUPPLEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF
THE SECURED PARTIES OR THE UNDERSIGNED RELATING THERETO. THE UNDERSIGNED
ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION
FOR THIS PROVISION (AND EACH OTHER PROVISION OF EACH OTHER LOAN DOCUMENT TO
WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE
SECURED PARTIES ENTERING INTO THE CREDIT AGREEMENT, THIS SUPPLEMENT, THE
SECURITY AND PLEDGE AGREEMENT AND EACH SUCH OTHER LOAN DOCUMENT.

                                       -6-

<PAGE>

         IN WITNESS WHEREOF, the undersigned has caused this Supplement to be
duly executed and delivered by its officer thereunto duly authorized as of the
date first above written.

                                  [NAME OF ADDITIONAL GRANTOR]

                                  By:__________________________________________
                                     Name:
                                     Title:

ACKNOWLEDGED AND ACCEPTED BY:

BANK OF AMERICA, N.A., as
    Administrative Agent

By:___________________________
      Name:
      Title:

                                      -7-

<PAGE>

                                                                     SCHEDULE I
                                                           to Supplement No. __
                                               to Security and Pledge Agreement
                                                 ([NAME OF ADDITIONAL GRANTOR])

Item A.  INTERCOMPANY NOTES

                                Maximum Amount of
                               Intercompany Loans
<TABLE>
<CAPTION>

Maker                               Evidenced Thereby                  Date
-----                               -----------------                  ----
<S>                                 <C>                                <C>

</TABLE>

Item B.  SECURITIES

<TABLE>
<CAPTION>

                                              Common Stock
                                              ------------
                                                                        % of
                                Authorized           Outstanding       Shares
Issuer (corporate)                Shares               Shares          Pledged
------------------                ------               ------          -------
<S>                             <C>                  <C>               <C>

</TABLE>

<TABLE>
<CAPTION>

                                      Limited Liability Company Interests
                                      -----------------------------------
                                  % of Limited               Type of Limited
                                    Liability                   Liability
Issuer (limited                 Company Interests           Company Interests
liability company)                   Pledged                     Pledged
------------------                   -------                     -------
<S>                             <C>                         <C>

</TABLE>

<TABLE>
<CAPTION>

                                         Partnership Interests
                                         ---------------------

                                 % of Partnership          Type of Partnership
Issuer (partnership)             Interests Pledged          Interests Pledged
--------------------             -----------------          -----------------
<S>                              <C>                       <C>

</TABLE>

<PAGE>

                                                                    SCHEDULE II
                                                           to Supplement No. __
                                               to Security and Pledge Agreement
                                                 ([NAME OF ADDITIONAL GRANTOR])

                              GOVERNMENT CONTRACTS

<PAGE>

                                                                   SCHEDULE III
                                                           to Supplement No. __
                                               to Security and Pledge Agreement
                                                 ([NAME OF ADDITIONAL GRANTOR])

Item A.  PATENTS

                                 ISSUED PATENTS

<TABLE>
<CAPTION>

*Country                     Patent No.                Issue Date                Inventor(s)
                             Title
<S>                          <C>                       <C>                       <C>

</TABLE>

                           PENDING PATENT APPLICATIONS

<TABLE>
<CAPTION>

*Country                     Serial No.                Filing Date               Inventor(s)
                             Title
<S>                          <C>                       <C>                       <C>

</TABLE>

                       PATENT APPLICATIONS IN PREPARATION

<TABLE>
<CAPTION>

                                                        Expected
*Country                     Docket No.                Filing Date               Inventor(s)
                             Title
<S>                          <C>                       <C>                       <C>

</TABLE>

Item B.  PATENT LICENSES

<TABLE>
<CAPTION>

*Country or                                                          Effective            Expiration             Subject
 Territory                   Licensor           Licensee                Date                 Date                Matter
-----------                  --------           --------             ---------            ----------             -------
<S>                          <C>                <C>                  <C>                  <C>                    <C>

</TABLE>

--------

   *   List items related to the United States first for ease of recordation.
       List items related to other countries next, grouped by country and in
       alphabetical order by country name.

<PAGE>

                                                                    SCHEDULE IV
                                                           to Supplement No. __
                                               to Security and Pledge Agreement

                    ([NAME OF ADDITIONAL GRANTOR])

Item A.  TRADEMARKS

                              REGISTERED TRADEMARKS

<TABLE>
<CAPTION>

*Country      Trademark       Registration No.       Registration Date
--------      ---------       ----------------       -----------------
<S>           <C>             <C>                    <C>

</TABLE>

                         PENDING TRADEMARK APPLICATIONS

<TABLE>
<CAPTION>

*Country      Trademark          Serial No.          Filing Date
--------      ---------          ----------          -----------
<S>           <C>                <C>                 <C>

</TABLE>

                      TRADEMARK APPLICATIONS IN PREPARATION

<TABLE>
<CAPTION>

Products/                                       Expected
*Country      Trademark       Docket No.       Filing Date       Services
--------      ---------       ----------       -----------       --------
<S>           <C>             <C>              <C>               <C>

</TABLE>

Item B.  TRADEMARK LICENSES

<TABLE>
<CAPTION>

*Country or                                                                   Effective    Expiration
 Territory          Trademark            Licensor            Licensee            Date         Date
----------          ---------            --------            --------         ---------    ----------
<S>                 <C>                  <C>                 <C>              <C>          <C>

</TABLE>

--------
   *  List items related to the United States first for ease of recordation.
      List items related to other countries next, grouped by country and in
      alphabetical order by country name.

<PAGE>

                                                                     SCHEDULE V
                                                           to Supplement No. __
                                               to Security and Pledge Agreement
                                                 ([NAME OF ADDITIONAL GRANTOR])

Item A.  COPYRIGHTS

                              REGISTERED COPYRIGHTS

<TABLE>
<CAPTION>

*Country       Registration No.      Registration Date      Author(s)   Title
--------       ----------------      -----------------      ---------   -----
<S>            <C>                   <C>                    <C>         <C>

</TABLE>

                   COPYRIGHT PENDING REGISTRATION APPLICATIONS

<TABLE>
<CAPTION>

*Country       Serial No.            Filing Date            Author(s)   Title
--------       ----------            -----------            ---------   -----
<S>            <C>                   <C>                    <C>         <C>

</TABLE>

               COPYRIGHT REGISTRATION APPLICATIONS IN PREPARATION

                                                           Expected
<TABLE>
<CAPTION>

*Country       Docket No.            Filing Date            Author(s)   Title
--------       ----------            -----------            ---------   -----
<S>            <C>                   <C>                    <C>         <C>

</TABLE>

--------
   *     List items related to the United States first for ease of recordation.
         List items related to other countries next, grouped by country and in
         alphabetical order by country name.

<PAGE>

Item B.  COPYRIGHT LICENSES

<TABLE>
<CAPTION>

*Country or                                       Effective         Expiration        Subject
 Territory     Licensor        Licensee              Date               Date           Matter
-----------    --------        --------           ---------         ----------        -------
<S>            <C>             <C>                <C>               <C>               <C>

</TABLE>

<PAGE>

                                                                    SCHEDULE VI
                                                           to Supplement No. __
                                               to Security and Pledge Agreement
                                                 ([NAME OF ADDITIONAL GRANTOR])

                      TRADE SECRET OR KNOW-HOW LICENSES

<TABLE>
<CAPTION>

*Country or                                       Effective         Expiration        Subject
 Territory     Licensor        Licensee              Date              Date           Matter
-----------    --------        --------           ---------         ----------        -------
<S>            <C>             <C>                <C>               <C>               <C>

</TABLE>

--------
   *      List items related to the United States first for ease of recordation.
          List items related to other countries next, grouped by country and in
          alphabetical order by country name.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}]]