Document:

Form of Term Loan Agreement

 Exhibit 4.4 

  
 FORM OF 
 TERM LOAN CREDIT AGREEMENT 
  
 Dated as of August     , 2005 
  
 among 
  
 SCHOOL
SPECIALTY, INC. 
 as the Borrower, 
  
 THE SUBSIDIARIES OF THE BORROWER IDENTIFIED HEREIN, 
 as the Guarantors, 
  
 BANK OF AMERICA, N.A., 
 as Administrative Agent 
  
 and 
  
 The Other Lenders Party Hereto 
  
 Arranged By: 
  
 BANC OF AMERICA SECURITIES LLC, 
 as Sole Lead Arranger and Sole Book Manager

  

 TABLE OF CONTENTS 
  

					
	ARTICLE I DEFINITIONS AND ACCOUNTING TERMS	  	1
	1.01	  	Defined Terms.	  	1
	1.02	  	Other Interpretive Provisions.	  	7
	1.03	  	Accounting Terms.	  	7
	1.04	  	Rounding.	  	8
	1.05	  	References to Agreements and Laws.	  	8
	1.06	  	Times of Day.	  	8
	ARTICLE II THE COMMITMENTS AND CREDIT EXTENSIONS	  	8
	2.01	  	Term Loan.	  	8
	2.02	  	Borrowings, Conversions and Continuations of Loans.	  	9
	2.03	  	[Reserved].	  	10
	2.04	  	[Reserved].	  	10
	2.05	  	Prepayments.	  	10
	2.06	  	[Reserved].	  	11
	2.07	  	Repayment of Loans.	  	11
	2.08	  	Interest.	  	11
	2.09	  	Fees.	  	11
	2.10	  	Computation of Interest and Fees.	  	12
	2.11	  	Evidence of Debt.	  	12
	2.12	  	Payments Generally.	  	12
	2.13	  	Sharing of Payments.	  	14
	ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY	  	14
	3.01	  	Taxes.	  	14
	3.02	  	Illegality.	  	15
	3.03	  	Inability to Determine Rates.	  	16
	3.04	  	Increased Cost and Reduced Return; Capital Adequacy.	  	16
	3.05	  	Funding Losses.	  	16
	3.06	  	Matters Applicable to all Requests for Compensation.	  	17
	3.07	  	Survival.	  	18
	ARTICLE IV GUARANTY	  	18
	4.01	  	The Guaranty.	  	18
	4.02	  	Obligations Unconditional.	  	18
	4.03	  	Reinstatement.	  	19
	4.04	  	Certain Additional Waivers.	  	20
	4.05	  	Remedies.	  	20
	4.06	  	Rights of Contribution.	  	20
	4.07	  	Guarantee of Payment; Continuing Guarantee.	  	21
	ARTICLE V CONDITIONS PRECEDENT TO CREDIT EXTENSIONS	  	21
	5.01	  	Conditions of Initial Credit Extension.	  	21
	5.02	  	Conditions to all Credit Extensions.	  	23
	ARTICLE VI REPRESENTATIONS AND WARRANTIES; COVENANTS	  	24
	6.01	  	Incorporation of Representations and Covenants from Revolver Credit Agreement.	  	24
	6.02	  	Subordination.	  	24
	6.03	  	Use of Proceeds.	  	25
	6.04	  	Joinder of Education as Guarantor.	  	25

  

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	ARTICLE VII [Reserved]	  	25
	ARTICLE VIII [Reserved]	  	25
	ARTICLE IX EVENTS OF DEFAULT AND REMEDIES	  	25
	9.01	  	Events of Default.	  	25
	9.02	  	Remedies Upon Event of Default.	  	27
	9.03	  	Application of Funds.	  	28
	ARTICLE X ADMINISTRATIVE AGENT	  	28
	10.01	  	Appointment and Authorization of Administrative Agent.	  	28
	10.02	  	Delegation of Duties.	  	29
	10.03	  	Liability of Administrative Agent.	  	29
	10.04	  	Reliance by Administrative Agent.	  	29
	10.05	  	Notice of Default.	  	30
	10.06	  	Credit Decision; Disclosure of Information by Administrative Agent.	  	30
	10.07	  	Indemnification of Administrative Agent.	  	31
	10.08	  	Administrative Agent in its Individual Capacity.	  	31
	10.09	  	Successor Administrative Agent.	  	31
	10.10	  	Administrative Agent May File Proofs of Claim.	  	32
	10.11	  	Collateral and Guaranty Matters.	  	32
	10.12	  	Other Agents; Arrangers and Managers.	  	33
	ARTICLE XI MISCELLANEOUS	  	33
	11.01	  	Amendments, Etc.	  	33
	11.02	  	Notices and Other Communications; Facsimile Copies.	  	34
	11.03	  	No Waiver; Cumulative Remedies.	  	35
	11.04	  	Attorney Costs, Expenses and Taxes.	  	36
	11.05	  	Indemnification by the Borrower.	  	36
	11.06	  	Payments Set Aside.	  	37
	11.07	  	Successors and Assigns.	  	37
	11.08	  	Confidentiality.	  	39
	11.09	  	Set-off.	  	39
	11.10	  	Interest Rate Limitation.	  	40
	11.11	  	Counterparts.	  	40
	11.12	  	Integration.	  	40
	11.13	  	Survival of Representations and Warranties.	  	40
	11.14	  	Severability.	  	41
	11.15	  	Tax Forms.	  	41
	11.16	  	Replacement of Lenders.	  	42
	11.17	  	Designated Senior Indebtedness.	  	43
	11.18	  	Release of Collateral and Guarantees.	  	43
	11.19	  	Governing Law.	  	43
	11.20	  	Waiver of Right to Trial by Jury.	  	43

  

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	SCHEDULES
		
	 2.01
	  	Commitments and Pro Rata Shares
	 11.02
	  	Certain Addresses for Notices
	
	EXHIBITS
		
	 A
	  	Form of Term Loan Notice
	 C
	  	Form of Term Loan Note
	 E
	  	Form of Assignment and Assumption

  

 iii 

 TERM LOAN CREDIT AGREEMENT 
  
 This TERM LOAN CREDIT AGREEMENT is entered into as of August     , 2005 among SCHOOL SPECIALTY,
INC., a Wisconsin corporation (the “Borrower”), the Guarantors (defined herein), the Lenders (defined herein) and BANK OF AMERICA, N.A., as Administrative Agent. 
  
 The Borrower has requested that the Lenders provide $100,000,000 in term loan credit facilities for the purposes set forth
herein, and the Lenders are willing to do so on the terms and conditions set forth herein. 
  
 In consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS AND ACCOUNTING TERMS 
  
 1.01 Defined Terms. 
  
 Capitalized terms used in this Agreement (including in the Incorporated Representations and the Incorporated Covenants) but not otherwise defined in this Agreement shall have the meanings assigned to such terms in the Revolver Credit
Agreement as in effect on the Closing Date (the “Incorporated Terms”). In the event (i) of any amendment, modification, supplement or waiver after the Closing Date of any of the defined terms in the Revolver Credit Agreement, such
amendment, modification, supplement or waiver shall be effective as to the Incorporated Terms only to the extent the Required Lenders consent to such amendment, modification, supplement or waiver in accordance with Section 11.01 or (y) that
the Revolver Credit Agreement is repaid, restated, refinanced or replaced after the date hereof, the Incorporated Terms shall be as in effect immediately prior to such repayment, restatement, refinancing or replacement. 
  
 As used in this Agreement, the following terms shall have the meanings set
forth below. 
  
 “Administrative Agent” means
Bank of America in its capacity as administrative agent under any of the Loan Documents, or any successor administrative agent. 
  
 “Administrative Agent’s Office” means the Administrative Agent’s address and, as appropriate, account as set forth on
Schedule 11.02 or such other address or account as the Administrative Agent may from time to time notify the Borrower and the Lenders. 
  
 “Agreement” means this Term Loan Credit Agreement, as amended, modified, supplemented and extended from time to time. 
  
 “Applicable Rate” means (i) for Eurodollar Rate Loans, 2.25%
per annum and (ii) for Base Rate Loans, 1.00% per annum. 
  
 “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 
  
 “Arranger” means Banc of America Securities LLC, in its
capacity as sole lead arranger and sole book manager. 

 “Assignment and Assumption” means an Assignment and Assumption substantially in the form
of Exhibit E. 
  
 “Bank of America” means
Bank of America, N.A. and its successors. 
  
 “Base
Rate” means for any day a fluctuating rate per annum equal to the higher of (a) the Federal Funds Rate plus 1/2 of 1% or (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as
its “prime rate”. The “prime rate” is a rate set by Bank of America based upon various factors including Bank of America’s costs and desired return, general economic conditions and other factors, and is used as a reference
point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in the “prime rate” announced by Bank of America shall take effect at the opening of business on the day specified in the public
announcement of such change. 
  
 “Base Rate Loan”
means a Loan that bears interest based on the Base Rate. 
  
 “Borrower” has the meaning specified in the introductory paragraph hereto. 
  
 “Closing Date” means the date hereof. 
  
 “Collateral Agent” means Bank of America in its capacity as collateral agent under any of the Collateral Documents, or any successor
collateral agent. 
  
 “Collateral Documents”
means a collective reference to the Security Agreement, the Pledge Agreement, the Intercreditor Agreement, the Term Loan Intercreditor Agreement and such other security documents as may be executed and delivered by the Loan Parties pursuant to the
terms of Section 7.14 of the Incorporated Covenants. 
  
 “Credit Extension” means a Borrowing or a conversion or continuation of a Loan. 
  
 “Debt Issuance” means the issuance by the Borrower or any Subsidiary of any Indebtedness other than Indebtedness permitted under
Section 8.03 of the Incorporated Covenants. 
  
 “Default” means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default. 
  
 “Default Rate” means an interest rate equal to (a) the Base
Rate plus (b) the Applicable Rate, if any, applicable to Base Rate Loans plus (c) 2% per annum; provided, however, that with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest rate equal to the
interest rate (including any Applicable Rate) otherwise applicable to such Loan plus 2% per annum, in each case to the fullest extent permitted by applicable Laws. 
  
 “Education” means Delta Education, LLC, a Delaware limited liability company. 
  
 “Education Acquisition” means the acquisition by the
Borrower of all of the Capital Stock of Education pursuant to the Education Acquisition Documents. 
  
 “Education Acquisition Documents” means (a) the Acquisition Agreement dated as of the Closing Date between Wicks Learning Group, LLC, a
Delaware limited liability company, and the Borrower and (b) all other material documents, agreements and instruments executed and/or delivered in connection with the Education Acquisition, in each case including all schedules and exhibits thereto.

  

 2 

 “Education Audited Financial Statements” means the audited consolidated financial
statements of Education and its Subsidiaries for each of the three fiscal years ending prior to the Closing Date. 
  
 “Education Interim Financial Statements” means the unaudited consolidated financial statements of Education and its Subsidiaries for the
fiscal period ending July 31, 2005. 
  
 “Eligible
Assignee” means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved Fund; and (d) any other Person (other than a natural person) approved by (i) the Administrative Agent and (ii) unless an Event of Default has occurred and is
continuing, the Borrower (each such approval not to be unreasonably withheld or delayed); provided that notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrower or any of the Borrower’s Affiliates or
Subsidiaries. 
  
 “Equity Issuance” means any
issuance by the Borrower or any Subsidiary to any Person of its Capital Stock, other than (a) any issuance of its Capital Stock pursuant to the exercise of options or warrants, (b) any issuance of its Capital Stock pursuant to the conversion of any
debt securities to equity or the conversion of any class equity securities to any other class of equity securities, (c) any issuance of options or warrants relating to its Capital Stock, and (d) any issuance by the Borrower of its Capital Stock as
consideration for a Permitted Acquisition. The term “Equity Issuance” shall not be deemed to include any Disposition. 
  
 “Eurodollar Base Rate” means, for any Interest Period with respect to any Eurodollar Rate Loan: 
  
 (a) the rate per annum equal to the rate determined by the
Administrative Agent to be the offered rate that appears on the page of the Telerate screen (or any successor thereto) that displays an average British Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on the first
day of such Interest Period) with a term equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period, or 
  
 (b) if the rate referenced in the preceding clause (a) does
not appear on such page or service or such page or service shall not be available, the rate per annum equal to the rate determined by the Administrative Agent to be the offered rate on such other page or other service that displays an average
British Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London time) two Business
Days prior to the first day of such Interest Period, or 
  
 (c) if the rates referenced in the preceding clauses (a) and (b) are not available, the rate per annum (rounded upward to the next 1/100th of 1%) determined by the Administrative Agent as the rate of interest at which deposits in Dollars for delivery on the first day of such Interest Period in
same day funds in the approximate amount of the Eurodollar Rate Loan being made, continued or converted by Bank of America and with a term equivalent to such Interest Period would be offered by Bank of America’s London Branch to major banks in
the London interbank eurodollar market at their request at approximately 4:00 p.m. (London time) two Business Days prior to the first day of such Interest Period. 
  
 “Eurodollar Rate” means for any Interest Period with respect to any Eurodollar Rate Loan, a rate per annum
determined by the Administrative Agent to be equal to the quotient obtained by dividing (a) the Eurodollar Base Rate for such Eurodollar Loan for such Interest Period by (b) one minus the Eurodollar Reserve Percentage for such Eurodollar Loan
for such Interest Period. 
  

 3 

 “Eurodollar Rate Loan” means a Loan that bears interest at a rate based on the
Eurodollar Rate. 
  
 “Eurodollar Reserve
Percentage” means, for any day during any Interest Period, the reserve percentage (expressed as a decimal, carried out to five decimal places) in effect on such day, whether or not applicable to any Lender, under regulations issued from
time to time by the FRB for determining the maximum reserve requirement (including any emergency, supplemental or other marginal reserve requirement) with respect to Eurocurrency funding (currently referred to as “Eurocurrency
liabilities”). The Eurodollar Rate for each outstanding Eurodollar Rate Loan shall be adjusted automatically as of the effective date of any change in the Eurodollar Reserve Percentage. 
  
 “Event of Default” has the meaning specified in Section
9.01. 
  
 “Federal Funds Rate” means, for any
day, the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers on such day, as published by the Federal Reserve Bank on the
Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding
Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Bank of America
on such day on such transactions as determined by the Administrative Agent. 
  
 “Fee Letter” means the letter agreement dated August     , 2005 among the Borrower, the Administrative Agent and the Arranger. 
  
 “Foreign Lender” has the meaning specified in Section
11.15(a)(i). 
  
 “Fund” means any Person
(other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business. 
  
 “Guaranty” means the Guaranty made by the Guarantors in
favor of the Administrative Agent and the Lenders pursuant to Article IV hereof. 
  
 “Guarantors” means each Domestic Subsidiary of the Borrower and each other Person that joins as a Guarantor pursuant to Section 7.12 of the Incorporated Covenants, together with their
successors and permitted assigns. 
  
 “Incorporated
Covenants” has the meaning specified in Section 6.01. 
  
 “Incorporated Representations” has the meaning specified in Section 6.01. 
  
 “Indemnified Liabilities” has the meaning set forth in Section 11.05. 
  
 “Indemnitees” has the meaning set forth in Section
11.05. 
  
 “Intercreditor Agreement” means
the Amended and Restated Intercreditor Agreement dated as of the Fourth Amendment Effective Date among the Borrower, the Collateral Agent and the Bank One, NA, as agent under the Permitted Securitization Transaction. 
  

 4 

 “Interest Payment Date” means (a) as to any Loan other than a Base Rate Loan, the last
day of each Interest Period applicable to such Loan and the Maturity Date; provided, however, that if any Interest Period for a Eurodollar Rate Loan exceeds three months, the respective dates that fall every three months after the
beginning of such Interest Period shall also be Interest Payment Dates; and (b) as to any Base Rate Loan, the last Business Day of each March, June, September and December and the Maturity Date. 
  
 “Interest Period” means, as to each Eurodollar Rate Loan,
the period commencing on the date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan and ending on the date seven days thereafter (if available to all Lenders) or one, two, three or six months thereafter,
each option as selected by the Borrower in its Loan Notice; provided that: 
  
 (i) any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day
unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day; 
  
 (ii) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and 
  
 (iii) no Interest Period shall extend beyond the Maturity Date. 
  
 “Lender” means each of the Persons identified as a
“Lender” on the signature pages hereto and their successors and assigns. 
  
 “Loan” means an extension of credit by a Lender to the Borrower under Article II in the form of a Term Loan. 
  
 “Loan Documents” means this Agreement, each Note, each Joinder Agreement, the Collateral Documents, each
Request for Credit Extension, each Compliance Certificate, the Fee Letter and each other document, instrument or agreement from time to time executed by the Borrower or any of its Subsidiaries or any Responsible Officer thereof and delivered in
connection with this Agreement. 
  
 “Loan Notice”
means a notice of (a) a Borrowing of Term Loans, (b) a conversion of Loans from one Type to the other, or (c) a continuation of Eurodollar Rate Loans, pursuant to Section 2.02(a), which, if in writing, shall be substantially in the form of
Exhibit A. 
  
 “Loan Parties” means,
collectively, the Borrower and each Guarantor. 
  
 “Material Adverse Effect” means (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties, liabilities (actual or contingent), condition (financial or otherwise) or prospects
of the Borrower and its Subsidiaries (including Education after giving effect to the Education Acquisition) taken as a whole; (b) a material impairment of the ability of any Loan Party to perform its obligations under any Loan Document; or (c) a
material adverse effect upon the legality, validity, binding effect or enforceability against any Loan Party of any Loan Document to which it is a party. 
  
 “Maturity Date” means April 12, 2006. 
  

 5 

 “Net Cash Proceeds” means the aggregate cash or Cash Equivalents proceeds received by
the Borrower or any Subsidiary in respect of any Disposition, Equity Issuance, Debt Issuance or Involuntary Disposition, net of (a) direct costs incurred in connection therewith (including, without limitation, legal, accounting and investment
banking fees, and sales commissions), (b) taxes paid or payable as a result thereof and (c) in the case of any Disposition or any Involuntary Disposition, the amount necessary to retire any Indebtedness secured by a Permitted Lien (ranking senior to
any Lien of the Collateral Agent) on the related property; it being understood that “Net Cash Proceeds” shall include, without limitation, any cash or Cash Equivalents received upon the sale or other disposition of any non-cash
consideration received by the Borrower or any Subsidiary in any Disposition, Equity Issuance, Debt Issuance or Involuntary Disposition. 
  
 “Note” or “Notes” means the Term Loan Notes, individually or collectively, as appropriate. 
  
 “Obligations” means all advances to, and debts, liabilities,
obligations, covenants and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now
existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Loan Party of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether
such interest and fees are allowed claims in such proceeding. The foregoing shall also include any Swap Contract between any Loan Party and any Lender or Affiliate of a Lender. 
  
 “Participant” has the meaning specified in Section 11.07(d). 
  
 “Pledge Agreement” means the Amended and Restated Pledge
Agreement dated as of the Closing Date executed in favor of the Collateral Agent by each of the Loan Parties, as amended, modified, supplemented and extended from time to time. 
  
 “Pro Rata Share” means, as to each Lender, a fraction (expressed as a percentage, carried out to the ninth
decimal place), the numerator of which is the amount of the Term Loan of such Lender at such time and the denominator of which is the aggregate amount of the Term Loan of all the Lenders at such time. The initial Pro Rata Share of each Lender is set
forth opposite the name of such Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable. 
  
 “Register” has the meaning set forth in Section 11.07(c). 
  
 “Request for Credit Extension” means, with respect to a
Borrowing, conversion or continuation of Loans, a Loan Notice. 
  
 “Required Lenders” means, at any time, Lenders holding in the aggregate more than 50% of the outstanding Term Loan and participations therein. 
  
 “Revolver Credit Agreement” means the Amended and Restated Credit Agreement dated as of April 11, 2003
among the Borrower, the Guarantors identified therein, the Lenders identified therein and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer as amended, modified, supplemented and extended from time to time. 

 
 “Security Agreement” means the Amended and Restated
Security Agreement dated as of the Closing Date executed in favor of Bank of America, as Collateral Agent, by each of the Loan Parties, as amended, modified, supplemented and extended from time to time. 
  

 6 

 “Term Loan” has the meaning specified in Section 2.01. 
  
 “Term Loan Commitment” means, as to each Lender, its
obligation to make Term Loans to the Borrower pursuant to Section 2.01, in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01.

  
 “Term Loan Intercreditor Agreement” means the
Intercreditor and Collateral Agency Agreement dated as of the date hereof among Bank of America as Collateral Agent, the Administrative Agent and Bank of America as administrative agent under the Revolver Credit Agreement. 
  
 “Term Loan Note” has the meaning specified in Section
2.11. 
  
 1.02 Other Interpretive Provisions.

  
 With reference to this Agreement and each other Loan
Document, unless otherwise specified herein or in such other Loan Document: 
  
 (a) The meanings of defined terms are equally applicable to the singular and plural forms of the defined terms. 
  
 (b) (i) The words “herein,” “hereto,” “hereof” and “hereunder” and
words of similar import when used in any Loan Document shall refer to such Loan Document as a whole and not to any particular provision thereof. 
  
 (ii) Article, Section, Exhibit and Schedule references are to the Loan Document in which such reference appears. 
  
 (iii) The term “including” is by way of
example and not limitation. 
  
 (iv) The term
“documents” includes any and all instruments, documents, agreements, certificates, notices, reports, financial statements and other writings, however evidenced, whether in physical or electronic form. 
  
 (c) In the computation of periods of time from a specified
date to a later specified date, the word “from” means “from and including;” the words “to” and “until” each mean “to but excluding;” and the word
“through” means “to and including.” 
  
 (d) Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document. 
  
 1.03 Accounting Terms. 
  
 (a) Except as otherwise specifically prescribed herein, all accounting terms
not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing the most recent Audited Financial Statements; provided, however, that calculations of Attributable
Indebtedness under any Synthetic Lease or the implied interest component of any Synthetic Lease shall be made by the Borrower in accordance with accepted financial practice and consistent with the terms of such Synthetic Lease. 
  

 7 

 (b) Together with each Compliance Certificate, the Borrower will provide a written summary of any changes
in GAAP that materially impact the calculation of the financial covenants in Section 8.11 of the Incorporated Covenants contained in such Compliance Certificate to the extent such changes are not disclosed by the Borrower in any SEC filing
made prior to or concurrent with the delivery of such Compliance Certificate. If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the Borrower or the
Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the
approval of the Required Lenders); provided that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) the Borrower shall provide to the
Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after
giving effect to such change in GAAP. 
  
 (c) Notwithstanding the
above, the parties hereto acknowledge and agree that all calculations for purposes of determining compliance with the financial covenants in Section 8.11 of the Incorporated Covenants and determining the Applicable Rate shall be made on a Pro
Forma Basis. 
  
 1.04 Rounding. 
  
 Any financial ratios required to be maintained by the Borrower pursuant to
this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the
nearest number (with a rounding-up if there is no nearest number). 
  
 1.05 References to Agreements and Laws. 
  
 Unless otherwise expressly provided herein, (a) references to Organization Documents, agreements (including the Loan Documents) and other contractual instruments shall be deemed to include all subsequent amendments, restatements,
extensions, supplements and other modifications thereto, but only to the extent that such amendments, restatements, extensions, supplements and other modifications are not prohibited by any Loan Document; and (b) references to any Law shall include
all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such Law. 
  
 1.06 Times of Day. 
  
 Unless otherwise specified, all references herein to times of day shall be references to Eastern time (daylight or standard, as applicable). 

 
 ARTICLE II 
  
 THE COMMITMENTS AND CREDIT EXTENSIONS 
  
 2.01 Term Loan. 
  
 Subject to the terms and conditions set forth herein, each Lender severally
agrees to make its portion of a term loan (the “Term Loan”) to the Borrower in Dollars on the Closing Date in an amount not 
  

 8 

 to exceed such Lender’s Term Loan Commitment. Amounts repaid on the Term Loan may not be reborrowed. The Term Loan
may consist of Base Rate Loans or Eurodollar Rate Loans, as further provided herein, provided, however, all Borrowings made on the Closing Date shall be made as Base Rate Loans. 
  
 2.02 Borrowings, Conversions and Continuations of Loans.

  
 (a) The Borrowing on the Closing Date, each conversion of
Loans from one Type to the other, and each continuation of Eurodollar Rate Loans shall be made upon the Borrower’s irrevocable notice to the Administrative Agent, which may be given by telephone. Each such notice must be received by the
Administrative Agent not later than 11:00 a.m. (i) three Business Days prior to the requested date of the Borrowing of, conversion to or continuation of Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans to Base Rate Loans, and (ii)
on the requested date of any Borrowing of Base Rate Loans. Each telephonic notice by the Borrower pursuant to this Section 2.02(a) must be confirmed promptly by delivery to the Administrative Agent of a written Loan Notice, appropriately
completed and signed by a Responsible Officer of the Borrower or any other individual designated by the Borrower in writing to the Administrative Agent (together with an incumbency certification for such individual). Each Borrowing of, conversion to
or continuation of Eurodollar Rate Loans shall be in a principal amount of $5,000,000 or a whole multiple of $500,000 in excess thereof. Each Borrowing of or conversion to Base Rate Loans shall be in a principal amount of $500,000 or a whole
multiple of $100,000 in excess thereof. Each Loan Notice (whether telephonic or written) shall specify (i) whether the Borrower is requesting a Borrowing, a conversion of Loans from one Type to the other, or a continuation of Eurodollar Rate Loans,
(ii) the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Loans to be borrowed, converted or continued, (iv) the Type of Loans to be borrowed or to which
existing Loans are to be converted, and (v) if applicable, the duration of the Interest Period with respect thereto. If the Borrower fails to specify a Type of Loan in a Loan Notice or if the Borrower fails to give a timely notice requesting a
conversion or continuation, then the applicable Loans shall be made as, or converted to, Base Rate Loans. Any such automatic conversion to Base Rate Loans shall be effective as of the last day of the Interest Period then in effect with respect to
the applicable Eurodollar Rate Loans. If the Borrower requests a Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any such Loan Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest
Period of one month. 
  
 (b) Following receipt of a Loan Notice,
the Administrative Agent shall promptly notify each Lender of the amount of its Pro Rata Share of the applicable Loans, and if no timely notice of a conversion or continuation is provided by the Borrower, the Administrative Agent shall notify each
Lender of the details of any automatic conversion to Base Rate Loans described in the preceding subsection. In the case of the Borrowing, each Lender shall make the amount of its Loan available to the Administrative Agent in immediately available
funds at the Administrative Agent’s Office not later than 1:00 p.m. on the Business Day specified in the applicable Loan Notice. Upon satisfaction of the applicable conditions set forth in Section 5.01 and Section 5.02), the
Administrative Agent shall make all funds so received available to the Borrower in like funds as received by the Administrative Agent either by (i) crediting the account of the Borrower on the books of Bank of America with the amount of such funds
or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent by the Borrower. 
  
 (c) Except as otherwise provided herein, a Eurodollar Rate Loan may be continued or converted only on the last day of the
Interest Period for such Eurodollar Rate Loan. During the existence of a Default, no Loans may be requested as, converted to or continued as Eurodollar Rate Loans without the consent of the Required Lenders, and the Required Lenders may demand that
any or all of the then outstanding Eurodollar Rate Loans be converted immediately to Base Rate Loans. 
  

 9 

 (d) The Administrative Agent shall promptly notify the Borrower and the Lenders of the interest rate
applicable to any Interest Period for Eurodollar Rate Loans upon determination of such interest rate. The determination of the Eurodollar Rate by the Administrative Agent shall be conclusive in the absence of manifest error. At any time that Base
Rate Loans are outstanding, the Administrative Agent shall notify the Borrower and the Lenders of any change in Bank of America’s prime rate used in determining the Base Rate promptly following the public announcement of such change.

  
 (e) After giving effect to the Borrowing, all conversions of
Loans from one Type to the other, and all continuations of Loans as the same Type, there shall not be more than five Interest Periods in effect with respect to the Term Loan. 
  
 2.03 [Reserved]. 
  
 2.04 [Reserved]. 
  
 2.05 Prepayments. 
  
 (a) Voluntary Prepayments of Loans. The Borrower may, upon notice from the Borrower to the Administrative Agent, at any time or from time to time
voluntarily prepay the Term Loan in whole or in part without premium or penalty; provided that (i) such notice must be received by the Administrative Agent not later than 11:00 a.m. (A) three Business Days prior to any date of prepayment of
Eurodollar Rate Loans, and (B) on the date of prepayment of Base Rate Loans; (ii) any such prepayment of Eurodollar Rate Loans shall be in a principal amount of $1,000,000 or a whole multiple of $500,000 in excess thereof (or, if less, the entire
principal amount thereof then outstanding); (iii) any such prepayment of Base Rate Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof (or, if less, the entire principal amount thereof then
outstanding). Each such notice shall specify the date and amount of such prepayment and the Type(s) of Loans to be prepaid. The Administrative Agent will promptly notify each Lender of its receipt of each such notice, and of the amount of such
Lender’s Pro Rata Share of such prepayment. If such notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein. Any prepayment
of a Eurodollar Rate Loan shall be accompanied by all accrued interest thereon, together with any additional amounts required pursuant to Section 3.05. Each such prepayment shall be applied to the Loans of the Lenders in accordance with their
respective Pro Rata Shares. 
  
 (b) Mandatory Prepayments of
Loans. 
  
 (i) Dispositions and
Involuntary Dispositions. The Borrower shall prepay the Loans as hereafter provided in an aggregate amount equal to 100% of the Net Cash Proceeds of all Dispositions and Involuntary Dispositions to the extent such Net Cash Proceeds are not
reinvested in Property used or useful in the Businesses within 180 days of the date of such Disposition or Involuntary Disposition. Any prepayment pursuant to this clause (i) shall be applied as set forth in clause (iv) below.

  
 (ii) Debt Issuances. Immediately upon
receipt by the Borrower or any Subsidiary of the Net Cash Proceeds of any Debt Issuance, the Borrower shall prepay the Loans as hereafter provided in an aggregate amount equal to 100% of such Net Cash Proceeds. Any prepayment pursuant to this
clause (ii) shall be applied as set forth in clause (iv) below. 
  

 10 

 (iii) Equity Issuances. Immediately upon the receipt by the Borrower or any
Subsidiary of the Net Cash Proceeds of any Equity Issuance, the Borrower shall prepay the Loans in an aggregate amount equal to 50% of such Net Cash Proceeds. Any prepayment pursuant to this clause (iii) shall be applied as set forth in
clause (iv) below. 
  
 (iv) Application
of Mandatory Prepayments. Mandatory prepayments shall be applied first to Base Rate Loans and then to Eurodollar Rate Loans in direct order of Interest Period maturities. All prepayments under this Section 2.05(b) shall be subject to
Section 3.05, but otherwise without premium or penalty, and shall be accompanied by interest on the principal amount prepaid through the date of prepayment. 
  
 2.06 [Reserved]. 
  
 2.07 Repayment of Loans. 
  
 The Borrower shall repay to the Lenders on the Maturity Date the aggregate principal amount of the Term Loan outstanding on such date. 
  
 2.08 Interest. 
  
 (a) Subject to the provisions of subsection (b)
below, (i) each Eurodollar Rate Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the sum of (A) the Eurodollar Rate for such Interest Period plus (B) the Applicable
Rate; and (ii) each Base Rate Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate. 
  
 (b) Upon the occurrence and during the continuation of an
Event of Default, the Borrower shall pay interest on the principal amount of all outstanding Obligations at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws. 

 
 (c) Interest on each Loan shall be due and payable in
arrears on each Interest Payment Date applicable thereto and at such other times as may be specified herein. Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the
commencement of any proceeding under any Debtor Relief Law. 
  
 2.09 Fees. 
  
 (a) The
Borrower shall pay to the Arranger and the Administrative Agent for their own respective accounts fees in the amounts and at the times specified in the Fee Letter. Such fees shall be fully earned when paid and shall be non-refundable for any reason
whatsoever. 
  
 (b) The Borrower shall pay to the
Lenders such fees as shall have been separately agreed upon in writing in the amounts and at the times so specified. Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever. 
  

 11 

 2.10 Computation of Interest and Fees. 
  
 All computations of interest for Base Rate Loans when the Base Rate is
determined by Bank of America’s “prime rate” shall be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed. All other computations of fees and interest shall be made on the basis of a 360-day
year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year). Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a
Loan, or any portion thereof, for the day on which the Loan or such portion is paid, provided that any Loan that is repaid on the same day on which it is made shall, subject to Section 2.12(a), bear interest for one day. 
  
 2.11 Evidence of Debt. 
  
 The Credit Extensions made by each Lender shall be evidenced by one or more
accounts or records maintained by such Lender and by the Administrative Agent in the ordinary course of business. The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error of the amount
of the Credit Extensions made by the Lenders to the Borrower and the interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any
amount owing with respect to the Obligations. In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the
Administrative Agent shall control in the absence of manifest error. Upon the request of any Lender made through the Administrative Agent, the Borrower shall execute and deliver to such Lender (through the Administrative Agent) a promissory note,
which shall evidence such Lender’s Loans in addition to such accounts or records. Each such promissory note shall be in the form of Exhibit C (a “Term Loan Note”). Each Lender may attach schedules to its Note and endorse
thereon the date, Type (if applicable), amount and maturity of its Loans and payments with respect thereto. 
  
 2.12 Payments Generally. 
  
 (a) All payments to be made by the Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as
otherwise expressly provided herein, all payments by the Borrower hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the Administrative Agent’s Office in Dollars and
in immediately available funds not later than 2:00 p.m. on the date specified herein. The Administrative Agent will promptly distribute to each Lender its Pro Rata Share (or other applicable share as provided herein) of such payment in like funds as
received by wire transfer to such Lender’s Lending Office. All payments received by the Administrative Agent after 2:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to
accrue. 
  
 (b) Subject to the definition of “Interest
Period”, if any payment to be made by the Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as the
case may be. 
  
 (c) If at any time insufficient funds are
received by and available to the Administrative Agent to pay fully all amounts of principal, interest and fees then due hereunder, such funds shall be applied first, toward costs and expenses (including Attorney Costs and amounts payable
under Article III) incurred by the Administrative Agent and each Lender, second, toward repayment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees
then due to such parties, and third, toward repayment of principal then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal then due to such parties. 
  

 12 

 (d) Unless the Borrower or any Lender has notified the Administrative Agent, prior to the date any
payment is required to be made by it to the Administrative Agent hereunder, that the Borrower or such Lender, as the case may be, will not make such payment, the Administrative Agent may assume that the Borrower or such Lender, as the case may be,
has timely made such payment and may (but shall not be so required to), in reliance thereon, make available a corresponding amount to the Person entitled thereto. If and to the extent that such payment was not in fact made to the Administrative
Agent in immediately available funds, then: 
  
 (i) if the Borrower failed to make such payment, each Lender shall forthwith on demand repay to the Administrative Agent the portion of such assumed payment that was made available to such Lender in immediately available funds, together
with interest thereon in respect of each day from and including the date such amount was made available by the Administrative Agent to such Lender to the date such amount is repaid to the Administrative Agent in immediately available funds at the
Federal Funds Rate from time to time in effect; and 
  
 (ii) if any Lender failed to make such payment, such Lender shall forthwith on demand pay to the Administrative Agent the amount thereof in immediately available funds, together with interest thereon for the period from the date such amount
was made available by the Administrative Agent to the Borrower to the date such amount is recovered by the Administrative Agent (the “Compensation Period”) at a rate per annum equal to the Federal Funds Rate from time to time in
effect. If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in the applicable Borrowing. If such Lender does not pay such amount forthwith upon the Administrative
Agent’s demand therefor, the Administrative Agent may make a demand therefor upon the Borrower, and the Borrower shall pay such amount to the Administrative Agent, together with interest thereon for the Compensation Period at a rate per annum
equal to the rate of interest applicable to the applicable Borrowing. Nothing herein shall be deemed to relieve any Lender from its obligation to fulfill its Term Loan Commitment or to prejudice any rights which the Administrative Agent or the
Borrower may have against any Lender as a result of any default by such Lender hereunder. 
  
 A notice of the Administrative Agent to any Lender or the Borrower with respect to any amount owing under this subsection (d) shall be conclusive, absent manifest error. 
  
 (e) If any Lender makes available to the Administrative Agent funds for any
Loan to be made by such Lender as provided in the foregoing provisions of this Article II, and such funds are not made available to the Borrower by the Administrative Agent because the conditions to the applicable Credit Extension set forth
in Article V are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall return such funds (in like funds as received from such Lender) to such Lender within one Business Day, without interest (provided
that if such funds are not returned to such Lender within one Business Day, the Administrative Agent shall pay interest thereon from the date one Business Day after the Lender makes such funds available to the Administrative Agent to the date such
funds are returned at a rate per annum equal to the Federal Funds Rate). 
  
 (f) The obligations of the Lenders hereunder to make Loans are several and not joint. The failure of any Lender to make any Loan or to fund any such participation on any date required hereunder shall not relieve any
other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Loan or purchase its participation. 
  

 13 

 (g) Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any
particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner. 
  
 2.13 Sharing of Payments. 
  
 If, other than as expressly provided elsewhere herein, any Lender shall obtain on account of the Loans made by it any
payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) in excess of its ratable share (or other share contemplated hereunder) thereof, such Lender shall immediately (a) notify the Administrative Agent of
such fact, and (b) purchase from the other Lenders such participations in the Loans made by them as shall be necessary to cause such purchasing Lender to share the excess payment in respect of such Loans or such participations, as the case may be,
pro rata with each of them; provided, however, that if all or any portion of such excess payment is thereafter recovered from the purchasing Lender under any of the circumstances described in Section 11.06 (including pursuant to
any settlement entered into by the purchasing Lender in its discretion), such purchase shall to that extent be rescinded and each other Lender shall repay to the purchasing Lender the purchase price paid therefor, together with an amount equal to
such paying Lender’s ratable share (according to the proportion of (i) the amount of such paying Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable
by the purchasing Lender in respect of the total amount so recovered, without further interest thereon. The Borrower agrees that any Lender so purchasing a participation from another Lender may, to the fullest extent permitted by law, exercise all
its rights of payment (including the right of set-off, but subject to Section 11.09) with respect to such participation as fully as if such Lender were the direct creditor of the Borrower in the amount of such participation. The
Administrative Agent will keep records (which shall be conclusive and binding in the absence of manifest error) of participations purchased under this Section and will in each case notify the Lenders following any such purchases or repayments. Each
Lender that purchases a participation pursuant to this Section shall from and after such purchase have the right to give all notices, requests, demands, directions and other communications under this Agreement with respect to the portion of the
Obligations purchased to the same extent as though the purchasing Lender were the original owner of the Obligations purchased. 
  
 ARTICLE III 
  
 TAXES, YIELD PROTECTION AND ILLEGALITY 
  
 3.01 Taxes. 
  
 (a) Subject to Section 11.15, any and all payments by any Loan Party to or for the account of the Administrative Agent or any Lender under any Loan
Document shall be made free and clear of and without deduction for any and all present or future taxes, duties, levies, imposts, deductions, assessments, fees, withholdings or similar charges, and all liabilities with respect thereto,
excluding, in the case of the Administrative Agent and each Lender, taxes imposed on or measured by its overall net income, and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision
thereof) under the Laws of which the Administrative Agent or such Lender, as the case may be, is organized or maintains a lending office (all such non-excluded taxes, duties, levies, imposts, deductions, assessments, fees, withholdings or similar
charges, and liabilities being hereinafter referred to as “Taxes”). If any Loan Party shall be required by any Laws to deduct any Taxes from or in respect of any sum payable under any Loan Document to the Administrative Agent or any
Lender, (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section), each of the Administrative Agent and such 
  

 14 

 Lender receives an amount equal to the sum it would have received had no such deductions been made, (ii) such Loan Party
shall make such deductions, (iii) such Loan Party shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable Laws, and (iv) within thirty days after the date of such payment, such Loan
Party shall furnish to the Administrative Agent (which shall forward the same to such Lender) the original or a certified copy of a receipt evidencing payment thereof or if no receipt is available, other evidence of payment reasonably satisfactory
to the Administrative Agent. 
  
 (b) In addition, the Borrower
agrees to pay any and all present or future stamp, court or documentary taxes and any other excise or property taxes or charges or similar levies which arise from any payment made under any Loan Document or from the execution, delivery, performance,
enforcement or registration of, or otherwise with respect to, any Loan Document (hereinafter referred to as “Other Taxes”). 
  
 (c) If the Borrower shall be required to deduct or pay any Taxes or Other Taxes from or in respect of any sum payable under any Loan Document to the
Administrative Agent or any Lender, the Borrower shall also pay to the Administrative Agent or to such Lender, as the case may be, at the time interest is paid, such additional amount that the Administrative Agent or such Lender specifies is
necessary to preserve the after-tax yield (after factoring in all taxes, including taxes imposed on or measured by net income) that the Administrative Agent or such Lender would have received if such Taxes or Other Taxes had not been imposed.

  
 (d) The Borrower agrees to indemnify the Administrative Agent
and each Lender for (i) the full amount of Taxes and Other Taxes (including any Taxes or Other Taxes imposed or asserted by any jurisdiction on amounts payable under this Section) paid by the Administrative Agent and such Lender, (ii) amounts
payable under Section 3.01(c) and (iii) any liability (including additions to tax, penalties, interest and expenses) arising therefrom or with respect thereto, in each case whether or not such Taxes or Other Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. Payment under this subsection (d) shall be made within thirty days after the date the Lender or the Administrative Agent makes a demand therefor. 
  
 (e) If any Loan Party is required to pay any amount to any Lender or the
Administrative Agent pursuant to this Section 3.01, then such Lender shall use reasonable efforts (consistent with legal and regulatory restrictions) to change the jurisdiction of its Lending Office so as to eliminate any such additional
payment which may thereafter accrue, if such change in the reasonable judgment of such Lender is not otherwise disadvantageous to such Lender. 
  
 3.02 Illegality. 
  
 If any Lender determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its
applicable Lending Office to make, maintain or fund Eurodollar Rate Loans, or to determine or charge interest rates based upon the Eurodollar Rate, then, on notice thereof by such Lender to the Borrower through the Administrative Agent, any
obligation of such Lender to make or continue Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate Loans shall be suspended until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to
such determination no longer exist. Upon receipt of such notice, the Borrower shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate Loans of such Lender to Base Rate
Loans, either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurodollar Rate Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such Eurodollar Rate Loans.
Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the 
  

 15 

 amount so prepaid or converted. Each Lender agrees to designate a different Lending Office if such designation will avoid
the need for such notice and will not, in the good faith judgment of such Lender, otherwise be materially disadvantageous to such Lender. 
  
 3.03 Inability to Determine Rates. 
  
 If the Administrative Agent determines that for any reason adequate and reasonable means do not exist for determining the Eurodollar Base Rate for any
requested Interest Period with respect to a proposed Eurodollar Rate Loan, or that the Eurodollar Base Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan does not adequately and fairly reflect the cost to the
Lenders of funding such Loan, the Administrative Agent will promptly notify the Borrower and all Lenders. Thereafter, the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be suspended until the Administrative Agent revokes
such notice. Upon receipt of such notice, the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of Eurodollar Rate Loans or, failing that, will be deemed to have converted such request into a request for a
Borrowing of Base Rate Loans in the amount specified therein. 
  
 3.04 Increased Cost and Reduced Return; Capital Adequacy. 
  
 (a) If any Lender determines that as a result of the introduction of or any change in or in the interpretation of any Law, or such Lender’s compliance therewith, there shall be any increase in the cost to such
Lender of agreeing to make or making, funding or maintaining Eurodollar Rate Loans, or a reduction in the amount received or receivable by such Lender in connection with any of the foregoing (excluding for purposes of this subsection (a) any
such increased costs or reduction in amount resulting from (i) Taxes or Other Taxes (as to which Section 3.01 shall govern), (ii) changes in the basis of taxation of overall net income or overall gross income by the United States or any
foreign jurisdiction or any political subdivision of either thereof under the Laws of which such Lender is organized or has its Lending Office, and (iii) reserve requirements utilized, as to Eurodollar Rate Loans, in the determination of the
Eurodollar Rate), then from time to time upon demand of such Lender (with a copy of such demand to the Administrative Agent), the Borrower shall pay to such Lender such additional amounts as will compensate such Lender for such increased cost or
reduction. 
  
 (b) If any Lender determines that the introduction
of any Law regarding capital adequacy or any change therein or in the interpretation thereof, or compliance by such Lender (or its Lending Office) therewith, has the effect of reducing the rate of return on the capital of such Lender or any
corporation controlling such Lender as a consequence of such Lender’s obligations hereunder (taking into consideration its policies with respect to capital adequacy and such Lender’s desired return on capital), then from time to time upon
demand of such Lender (with a copy of such demand to the Administrative Agent), the Borrower shall pay to such Lender such additional amounts as will compensate such Lender for such reduction. 
  
 3.05 Funding Losses. 
  
 Upon demand of any Lender (with a copy to the Administrative Agent) from
time to time, the Borrower shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense incurred by it as a result of: 
  
 (a) any continuation, conversion, payment or prepayment of any Loan other than a Base Rate Loan on a day
other than the last day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise); 
  

 16 

 (b) any failure by the Borrower (for a reason other than the failure of such Lender to
make a Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the date or in the amount notified by the Borrower; or 
  
 (c) any assignment of a Eurodollar Rate Loan on a day other than the last day of the Interest Period therefor as a result of: 

 
 (i) a request by the Borrower pursuant to Section
11.16; or 
  
 (ii) an assignment by Bank of
America pursuant to Section 11.07(b) as part of the syndication of the Loans during the 180-day period immediately following the Closing Date, provided that Bank of America agrees to use reasonable efforts to reduce the breakage costs
payable by the Borrower in connection therewith (including, without limitation, to the extent reasonably practical, closing such assignments at the end of Interest Periods of outstanding Eurodollar Rate Loans); 
  
 including any loss of anticipated profits and any loss or expense arising from the
liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained. The Borrower shall also pay any customary administrative fees charged by such Lender in
connection with the foregoing. 
  
 For purposes of calculating
amounts payable by the Borrower to the Lenders under this Section 3.05, each Lender shall be deemed to have funded each Eurodollar Rate Loan made by it at the Eurodollar Base Rate used in determining the Eurodollar Rate for such Loan by a
matching deposit or other borrowing in the London interbank eurodollar market for a comparable amount and for a comparable period, whether or not such Eurodollar Rate Loan was in fact so funded. 
  
 3.06 Matters Applicable to all Requests for Compensation.

  
 (a) If any Lender or the Administrative Agent determines
that it is entitled to compensation under this Article III, such Lender or the Administrative Agent, as applicable, shall give prompt notice thereof to the Borrower. A certificate of the Administrative Agent or any Lender claiming
compensation under this Article III and setting forth the additional amount or amounts to be paid to it hereunder shall be conclusive in the absence of manifest error. In determining such amount, the Administrative Agent or such Lender may
use any reasonable averaging and attribution methods. 
  
 (b) Upon
any Lender’s making a claim for compensation under Section 3.01 or 3.04, the Borrower may replace such Lender in accordance with Section 11.16. 
  
 (c) Upon the request and at the expense of the Borrower, each Lender to which the Borrower is required to pay any additional
amount pursuant to Section 3.01 or 3.04 shall reasonably afford the Borrower the opportunity to contest, and shall reasonably cooperate with the Borrower in contesting, the imposition of any Taxes or Other Taxes giving rise to such
payment; provided that (i) such Lender shall not be required to afford the Borrower the opportunity to so contest unless the Borrower shall have confirmed in writing to such Lender its obligation to pay such amounts pursuant to this Agreement
and (ii) the Borrower shall reimburse such Lender for its reasonable attorney’s and accountant’s fees and disbursements incurred in so cooperating with the Borrower in contesting the imposition of such Taxes or Other Taxes. 
  
 (d) If a Lender changes its applicable lending office (other than pursuant to
paragraph (e) below) or engages in a combination with another financial institution and the effect of the change or 
  

 17 

 combination, as of the date of the change or combination, would be to cause the Borrower to become obligated to pay any
additional amount under Section 3.01 or Section 3.04, the Borrower shall not be obligated to pay such additional amount. 
  
 (e) If a condition or an event occurs that would, or would upon the passage of time or giving of notice, result in the payment of any additional amount to
any Lender by the Borrower pursuant to Section 3.01 or Section 3.04, such Lender shall promptly notify the Borrower and the Administrative Agent and shall take such steps as may reasonably be available to it and acceptable to the
Borrower to mitigate the effects of such condition or event (which shall include efforts to rebook the Loans held by such Lender at another lending office, or through another branch or an affiliate, of such Lender); provided that such Lender shall
not be required to take any step that, in its reasonable judgment, would be disadvantageous to its business or operations or would require it to incur additional costs (unless the Borrower agrees to reimburse such Lender for the reasonable
incremental out-of-pocket costs thereof). 
  
 3.07
Survival. 
  
 All of the Borrower’s obligations
under this Article III shall survive termination of the repayment of all other Obligations hereunder. 
  
 ARTICLE IV 
  
 GUARANTY 
  
 4.01 The Guaranty.

  
 Each of the Guarantors hereby jointly and severally
guarantees to each Lender, each Affiliate of a Lender that enters into a Swap Contract, and the Administrative Agent as hereinafter provided, as primary obligor and not as surety, the prompt payment of the Obligations in full when due (whether at
stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization or otherwise) strictly in accordance with the terms thereof. The Guarantors hereby further agree that if any of the Obligations are not paid in full
when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization or otherwise), the Guarantors will, jointly and severally, promptly pay the same, without any demand or notice whatsoever, and
that in the case of any extension of time of payment or renewal of any of the Obligations, the same will be promptly paid in full when due (whether at extended maturity, as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise) in accordance with the terms of such extension or renewal. 
  
 Notwithstanding any provision to the contrary contained herein or in any other of the Loan Documents or Swap Contracts, the obligations of each Guarantor under this Agreement and the other Loan Documents shall be
limited to an aggregate amount equal to the largest amount that would not render such obligations subject to avoidance under the Debtor Relief Laws or any comparable provisions of any applicable state law. 
  
 4.02 Obligations Unconditional. 
  
 The obligations of the Guarantors under Section 4.01 are joint and
several, absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of any of the Loan Documents or Swap Contracts, or any other agreement or instrument referred to therein, or any substitution,
release, impairment or exchange of any other guarantee of or security for any of the Obligations, and, to the fullest extent permitted by applicable law, irrespective of any other circumstance whatsoever which might otherwise constitute a legal or
equitable discharge or defense of a surety or guarantor, it being the intent of 
  

 18 

 this Section 4.02 that the obligations of the Guarantors hereunder shall be absolute and unconditional under any
and all circumstances. Each Guarantor agrees that such Guarantor shall have no right of subrogation, indemnity, reimbursement or contribution against the Borrower or any other Guarantor for amounts paid under this Article IV until such time
as the Obligations have been paid in full. Without limiting the generality of the foregoing, it is agreed that, to the fullest extent permitted by law, the occurrence of any one or more of the following shall not alter or impair the liability of any
Guarantor hereunder, which shall remain absolute and unconditional as described above: 
  
 (a) at any time or from time to time, without notice to any Guarantor, the time for any performance of or compliance with any of the
Obligations shall be extended, or such performance or compliance shall be waived; 
  
 (b) any of the acts mentioned in any of the provisions of any of the Loan Documents, any Swap Contract between any Loan Party and any
Lender, or any Affiliate of a Lender, or any other agreement or instrument referred to in the Loan Documents or such Swap Contracts shall be done or omitted; 
  

(c) the maturity of any of the Obligations shall be accelerated, or any of the Obligations shall be modified, supplemented or amended
in any respect, or any right under any of the Loan Documents, any Swap Contract between any Loan Party and any Lender, or any Affiliate of a Lender, or any other agreement or instrument referred to in the Loan Documents or such Swap Contracts shall
be waived or any other guarantee of any of the Obligations or any security therefor shall be released, impaired or exchanged in whole or in part or otherwise dealt with; 
  
 (d) any Lien granted to, or in favor of, the Administrative Agent or any Lender or Lenders as security for
any of the Obligations shall fail to attach or be perfected; or 
  
 (e) any of the Obligations shall be determined to be void or voidable (including, without limitation, for the benefit of any creditor of any Guarantor) or shall be subordinated to the claims of any Person (including,
without limitation, any creditor of any Guarantor). 
  
 With
respect to its obligations hereunder, each Guarantor hereby expressly waives diligence, presentment, demand of payment, protest and all notices whatsoever, and any requirement that the Administrative Agent or any Lender exhaust any right, power or
remedy or proceed against any Person under any of the Loan Documents, any Swap Contract between any Loan Party and any Lender, or any Affiliate of a Lender, or any other agreement or instrument referred to in the Loan Documents or such Swap
Contracts, or against any other Person under any other guarantee of, or security for, any of the Obligations. 
  
 4.03 Reinstatement. 
  
 The obligations of the Guarantors under this Article IV shall be automatically reinstated if and to the extent that for any reason any payment by
or on behalf of any Person in respect of the Obligations is rescinded or must be otherwise restored by any holder of any of the Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and each Guarantor
agrees that it will indemnify the Administrative Agent and each Lender on demand for all reasonable costs and expenses (including, without limitation, fees and expenses of counsel) incurred by the Administrative Agent or such Lender in connection
with such rescission or restoration, including any such costs and expenses incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or
similar law. 
  

 19 

 4.04 Certain Additional Waivers. 
  
 Without limiting the generality of the provisions of this Article IV,
each Guarantor hereby specifically waives the benefits of N.C. Gen. Stat. §§ 26-7 through 26-9, inclusive, to the extent applicable. Each Guarantor further agrees that such Guarantor shall have no right of recourse to security for the
Obligations, except through the exercise of rights of subrogation pursuant to Section 4.02 and through the exercise of rights of contribution pursuant to Section 4.06. 
  
 4.05 Remedies. 
  
 The Guarantors agree that, to the fullest extent permitted by law, as between the Guarantors, on the one hand, and the Administrative Agent and the
Lenders, on the other hand, the Obligations may be declared to be forthwith due and payable as provided in Section 9.02 (and shall be deemed to have become automatically due and payable in the circumstances provided in said Section
9.02) for purposes of Section 4.01 notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing the Obligations from becoming automatically due and payable) as against any other Person and that, in
the event of such declaration (or the Obligations being deemed to have become automatically due and payable), the Obligations (whether or not due and payable by any other Person) shall forthwith become due and payable by the Guarantors for purposes
of Section 4.01. The Guarantors acknowledge and agree that their obligations hereunder are secured in accordance with the terms of the Collateral Documents and that the Lenders may exercise their remedies thereunder in accordance with the
terms thereof. 
  
 4.06 Rights of Contribution.

  
 The Guarantors hereby agree as among themselves that, if
any Guarantor shall make an Excess Payment (as defined below), such Guarantor shall have a right of contribution from each other Guarantor in an amount equal to such other Guarantor’s Contribution Share (as defined below) of such Excess
Payment. The payment obligations of any Guarantor under this Section 4.06 shall be subordinate and subject in right of payment to the Obligations until such time as the Obligations have been paid in full and none of the Guarantors shall
exercise any right or remedy under this Section 4.06 against any other Guarantor until such Obligations have been paid in full. For purposes of this Section 4.06, (a) ”Excess Payment” shall mean the amount paid by any
Guarantor in excess of its Ratable Share of any Guaranteed Obligations; (b) ”Ratable Share” shall mean, for any Guarantor in respect of any payment of Obligations, the ratio (expressed as a percentage) as of the date of such payment of
Guaranteed Obligations of (i) the amount by which the aggregate present fair salable value of all of its assets and properties exceeds the amount of all debts and liabilities of such Guarantor (including contingent, subordinated, unmatured, and
unliquidated liabilities, but excluding the obligations of such Guarantor hereunder) to (ii) the amount by which the aggregate present fair salable value of all assets and other properties of all of the Loan Parties exceeds the amount of all of the
debts and liabilities (including contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of the Loan Parties hereunder) of the Loan Parties; provided, however, that, for purposes of calculating
the Ratable Shares of the Guarantors in respect of any payment of Obligations, any Guarantor that became a Guarantor subsequent to the date of any such payment shall be deemed to have been a Guarantor on the date of such payment and the financial
information for such Guarantor as of the date such Guarantor became a Guarantor shall be utilized for such Guarantor in connection with such payment; (c) ”Contribution Share” shall mean, for any Guarantor in respect of any Excess Payment
made by any other Guarantor, the ratio (expressed as a percentage) as of the date of such Excess Payment of (i) the amount by which the aggregate present fair salable value of all of its assets and properties exceeds the amount of all debts and
liabilities of such Guarantor (including contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of such Guarantor hereunder) to (ii) the amount by which the aggregate present fair salable value of all assets
and other properties of the Loan Parties other than the maker of such Excess Payment exceeds the amount of all of the debts and liabilities (including contingent, subordinated, 
  

 20 

 unmatured, and unliquidated liabilities, but excluding the obligations of the Loan Parties) of the Loan Parties other
than the maker of such Excess Payment; provided, however, that, for purposes of calculating the Contribution Shares of the Guarantors in respect of any Excess Payment, any Guarantor that became a Guarantor subsequent to the date of any
such Excess Payment shall be deemed to have been a Guarantor on the date of such Excess Payment and the financial information for such Guarantor as of the date such Guarantor became a Guarantor shall be utilized for such Guarantor in connection with
such Excess Payment; and (d) ”Guaranteed Obligations” shall mean the Obligations guaranteed by the Guarantors pursuant to this Article IV. This Section 4.06 shall not be deemed to affect any right of subrogation, indemnity,
reimbursement or contribution that any Guarantor may have under Law against the Borrower in respect of any payment of Guaranteed Obligations. Notwithstanding the foregoing, all rights of contribution against any Guarantor shall terminate from and
after such time, if ever, that such Guarantor shall be relieved of its obligations in accordance with Section 10.11. 
  
 4.07 Guarantee of Payment; Continuing Guarantee. 
  

The guarantee in this Article IV is a guaranty of payment and not of collection, is a continuing guarantee, and shall apply to all Obligations
whenever arising. 
  
 ARTICLE V 
  
 CONDITIONS PRECEDENT TO CREDIT EXTENSIONS 
  
 5.01 Conditions of Initial Credit Extension. 
  
 The obligation of each Lender to make its initial Credit Extension hereunder
is subject to satisfaction of the following conditions precedent: 
  
 (a) Loan Documents. Receipt by the Administrative Agent of executed counterparts of this Agreement and the other Loan Documents, each property executed by a Responsible Officer of the signing Loan Party and, in
the case of this Agreement, by each Lender. 
  
 (b) Certified Resolutions, Incumbency and Good Standing. Receipt by the Administrative Agent’s of the following, each of which shall be originals or facsimiles (followed promptly by originals), dated as of a recent date before
the Closing Date and in form and substance satisfactory to the Administrative Agent and its legal counsel: 
  
 (i) such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each
Loan Party as the Administrative Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents to which
such Loan Party is a party (including any designation by the Borrower of individuals authorized to sign Loan Notices); and 
  
 (ii) such documents and certifications as the Administrative Agent may reasonably require to evidence that each Loan Party is duly
organized or formed, and is validly existing, in good standing and qualified to engage in business in its state of organization or formation, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse
Effect. 
  

 21 

 (c) Opinion of Counsel. Receipt by the Administrative Agent of favorable opinions
of counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, dated as of the Closing Date, and in form and substance satisfactory to the Administrative Agent. 
  
 (d) Financial Statements. The Administrative Agent shall have received: 
  
 (i) the Education Audited Financial Statements; and

  
 (ii) the Education Interim Financial
Statements. 
  
 (e) No Material Adverse
Change. There shall have been no change, occurrence or development since December 31, 2004, that in any case, either individually or in the aggregate, is reasonably likely to have a Material Adverse Effect. 
  
 (f) [Reserved]. 
  
 (g) Education Acquisition. 
  
 (i) Education Acquisition Documents. Receipt by the
Administrative Agent of a copy of each of the Education Acquisition Documents, in each case together with all amendments, modifications and supplements thereto and certified by the Borrower to be true and complete, all of which shall be in form and
substance reasonably satisfactory to the Administrative Agent. 
  
 (ii) Consummation of Education Acquisition. Receipt by the Administrative Agent of evidence reasonably satisfactory to the Administrative Agent that the Education Acquisition shall have been consummated (or
contemporaneous with the Loans made on the date hereof will be consummated) substantially in accordance with the terms of the Education Acquisition Documents and substantially in compliance with applicable law and regulatory approvals. 

 
 (iii) Consents. All material governmental,
shareholder and third party consents (including, but not limited to, Hart-Scott-Rodino clearance) and approvals necessary in connection with the Education Acquisition and the other transactions contemplated hereby shall have been obtained (or
appropriate waivers obtained); all such consents and approvals shall be in force and effect; and all applicable waiting periods shall have expired without any action being taken by any authority that could restrain, prevent or impose any material
adverse conditions on the Education Acquisition or such other transactions or that could seek or threaten any of the foregoing, and no law or regulation shall be applicable which in the reasonable judgment of the Administrative Agent could have such
effect. 
  
 (iv) Judgments; Litigation.
There shall not exist any action, suit, investigation or proceeding pending or, to the knowledge of any of the Borrower or its Subsidiaries threatened that (A) seeks to restrain or enjoin the Education Acquisition in the manner contemplated by the
Education Acquisition Documents or (B) is reasonably likely to (x) have a material adverse effect on business, assets, properties, liabilities (actual and contingent), operations, condition (financial or otherwise) or prospects of the Borrower and
its Subsidiaries (including Education after giving effect to Education Acquisition) taken as a whole or (y) adversely affect the rights and remedies of the Lenders under the Loan Documents. 
  

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 (h) Solvency Certificate. Receipt by the Administrative Agent of a certificate
executed by the chief financial officer of the Borrower as of the date hereof, in form and substance satisfactory to the Administrative Agent, regarding the solvency of the Loan Parties on a consolidated basis after giving effect to the Education
Acquisition and the Credit Extensions to be made on the date hereof. 
  
 (i) Closing Certificate. Receipt by the Administrative Agent of a certificate signed by a Responsible Officer of the Borrower certifying that the conditions specified in Sections 5.01(e) and (g)
and Sections 5.02(a), (b) and (c) have been satisfied. 
  
 (j) Fees. Receipt by the Administrative Agent and the Lenders of any fees required to be paid on or before the Closing Date shall
have been paid. 
  
 (k) Attorney Costs.
Unless waived by the Administrative Agent, the Borrower shall have paid all Attorney Costs of the Administrative Agent to the extent invoiced prior to or on the Closing Date, plus such additional amounts of Attorney Costs as shall constitute its
reasonable estimate of Attorney Costs incurred or to be incurred by it through the closing proceedings (provided that such estimate shall not thereafter preclude a final settling of accounts between the Borrower and the Administrative Agent).

  
 (l) Other. Receipt by the
Administrative Agent and the Lenders of such other documents, instruments, agreements and information as reasonably requested by the Administrative Agent or any Lender, including, but not limited to, information regarding litigation, tax,
accounting, labor, insurance, pension liabilities (actual or contingent), real estate leases, environmental matters, material contracts, debt agreements, property ownership, contingent liabilities, employment agreements, non-compete agreements and
management of the Borrower, Education and their respective Subsidiaries. 
  
 5.02 Conditions to all Credit Extensions. 
  
 The obligation of each Lender to honor any Request for Credit Extension is subject to the following conditions precedent: 
  
 (a) The representations and warranties of the Borrower and each other Loan Party contained in Article VI or any other Loan
Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct in all material respects on and as of the date of such Credit Extension, except to the extent that such
representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date, and except that for purposes of this Section 5.02, the representations and warranties contained in
subsections (a) and (b) of Section 6.05 of the Incorporated Representations shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 7.01 of
the Incorporated Covenants. 
  
 (b) No Default
shall exist, or would result from such proposed Credit Extension. 
  
 (c) There shall not have been commenced against the Borrower or any Subsidiary an involuntary case under any applicable Debtor Relief Law, now or hereafter in effect, or any case, proceeding or other action for the
appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of such Person or for any substantial part of its Property or for the winding up or liquidation of its affairs, and such involuntary case or
other case, proceeding or other action shall remain undismissed. 
  

 23 

 (d) The Administrative Agent shall have received a Request for Credit Extension in
accordance with the requirements hereof. 
  
 Each Request for
Credit Extension submitted by the Borrower shall be deemed to be a representation and warranty that the conditions specified in Sections 5.02(a), (b) and (c) have been satisfied on and as of the date of the applicable Credit
Extension. 
  
 ARTICLE VI 
  
 REPRESENTATIONS AND WARRANTIES; COVENANTS 
  
 6.01 Incorporation of Representations and Covenants from Revolver
Credit Agreement. 
  
 Each of the representations and
warranties contained in Article VI of the Revolver Credit Agreement as in effect on the Closing Date (the “Incorporated Representations”) and each of the covenants contained in Articles VII (other than Section 7.11) and VIII of the
Revolver Credit Agreement as in effect on the Closing Date (the “Incorporated Covenants”) are incorporated herein by reference to the same extent and with the same effect as if stated at length herein and shall inure to the benefit
of the Administrative Agent and the Lenders. Each of the Loan Parties (a) represents and warrants to the Administrative Agent and each Lender that each of the Incorporated Representations is true and correct in all material respects on and as of the
Closing Date and (b) covenants and agrees that, so long as any Lender shall have any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied, such Loan Party shall, and shall cause each Subsidiary to, perform and observe each of
the Incorporated Covenants. In the event (x) of any amendment, modification, supplement or waiver after the Closing Date of any of the representations and warranties contained in Article VI of the Revolver Credit Agreement or any of the covenants
contained in Article VII and VIII of the Revolver Credit Agreement, such amendment, modification, supplement or waiver shall be effective as to the Incorporated Representations or the Incorporated Covenants only to the extent the Required Lenders
consent to such amendment, modification, supplement or waiver in accordance with Section 11.01 or (y) that the Revolver Credit Agreement is repaid, restated, refinanced or replaced after the date hereof, the Incorporated Representations and
the Incorporated Covenants shall be as in effect immediately prior to such repayment, restatement, refinancing or replacement. 
  
 6.02 Subordination. 
  
 The Loan Parties represent and warrant to the Administrative Agent and the Lenders that: 
  
 (a) The Obligations constitute “Senior Debt” under the Senior Subordinated Note Documents.

  
 (b) The Obligations constitute
“Designated Senior Debt” under the Senior Subordinated Note Documents. 
  
 (c) No obligations (other than the Obligations and the obligations under the Revolver Credit Agreement) constitute “Designated Senior
Debt” under the Senior Subordinated Note Documents. 
  

 24 

 6.03 Use of Proceeds. 
  
 The Borrower agrees to use the proceeds of the Term Loan solely to finance a portion of the purchase price of the Education
Acquisition and the fees and expenses related thereto; provided that in no event shall be the proceeds of the Credit Extensions be used in contravention of any Law or of any Loan Document. 
  
 6.04 Joinder of Education as Guarantor. 
  
 The Borrower covenants and agrees to cause Education to become a Guarantor
pursuant to Section 7.12 of the Incorporated Covenants within 10 days after the Closing Date. 
  
 ARTICLE VII 
  
 [Reserved] 
  
 ARTICLE VIII 
  
 [Reserved] 
  
 ARTICLE IX 
  
 EVENTS OF DEFAULT AND REMEDIES 
  
 9.01 Events of Default. 
  
 Any of the following shall constitute an Event of Default: 
  
 (a) Non-Payment. The Borrower or any other Loan Party
fails to pay (i) when and as required to be paid herein, any amount of principal of any Loan, or (ii) within three days after the same becomes due, any interest on any Loan, or any fee due hereunder, or (iii) within five days after the same becomes
due, any other amount payable hereunder or under any other Loan Document; or 
  
 (b) Specific Covenants. 
  
 (i) The Borrower fails to perform or observe any term, covenant or agreement contained in any of Section 7.01, 7.02 or 7.03 of the Incorporated Covenants and such failure continues for five
Business Days; or 
  
 (ii) The Borrower fails to
perform or observe any term, covenant or agreement contained in any of Section 6.02 or 6.03 hereof or Section 7.05(a), 7.10, 7.12 of the Incorporated Covenants, or Article VIII of the Incorporated Covenants;
or 
  
 (c) Other Defaults. Any Loan Party
fails to perform or observe any other covenant or agreement (not specified in subsection (a) or (b) above) contained in any Loan Document on its part to be performed or observed and such failure continues for thirty days after the earlier of (i) a
Responsible Person of any Loan Party becoming aware of such failure or (ii) notice thereof to any Loan Party by the Administrative Agent; or 
  

 25 

 (c) Representations and Warranties. Any representation, warranty, certification or
statement of fact made or deemed made by or on behalf of the Borrower or any other Loan Party herein, in any other Loan Document, or in any document delivered in connection herewith or therewith shall be incorrect or misleading in any material
respect when made or deemed made; or 
  
 (d)
Cross-Default. (i) The Borrower or any Subsidiary (A) fails to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee (other than
Indebtedness hereunder and Indebtedness under Swap Contracts) having an aggregate principal amount (including undrawn committed or available amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement) of
more than the Threshold Amount, or (B) fails to observe or perform any other agreement or condition relating to any such Indebtedness or Guarantee or contained in any instrument or agreement evidencing, securing or relating thereto, or any other
event (other than an Involuntary Disposition which is covered by independent third-party insurance as to which the insurer does not dispute coverage and which does not constitute a default) occurs, the effect of which default or other event is to
cause, or to permit the holder or holders of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if
required, such Indebtedness to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated
maturity, or such Guarantee to become payable or cash collateral in respect thereof to be demanded; or (ii) there occurs under any Swap Contract an Early Termination Date (as defined in such Swap Contract) resulting from (A) any event of default
under such Swap Contract as to which the Borrower or any Subsidiary is the Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event (as so defined) under such Swap Contract as to which the Borrower or any Subsidiary is an
Affected Party (as so defined) and, in either event, the Swap Termination Value owed by the Borrower or such Subsidiary as a result thereof is greater than the Threshold Amount; or 
  
 (e) Insolvency Proceedings, Etc. Any Loan Party or
any of its Subsidiaries institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or
consent of such Person and the appointment continues undischarged or unstayed for sixty calendar days; or any proceeding under any Debtor Relief Law relating to any such Person or to all or any material part of its property is instituted without the
consent of such Person and continues undismissed or unstayed for sixty calendar days, or an order for relief is entered in any such proceeding; or 
  
 (f) Inability to Pay Debts; Attachment. (i) The Borrower or any Subsidiary becomes unable or admits in writing its inability or
fails generally to pay its debts as they become due, or (ii) any writ or warrant of attachment or execution or similar process is issued or levied against all or any material part of the property of any such Person and is not released, vacated or
fully bonded within thirty days after its issue or levy; or 
  
 (g) Judgments. There is entered against the Borrower or any Subsidiary (i) one or more final judgments or orders for the payment of money in an aggregate amount exceeding the Threshold Amount (to the extent not
covered by independent third-party insurance as to which the insurer does not dispute coverage), or (ii) any one or more non-monetary final judgments that have, or could reasonably be expected to have, individually or in the aggregate, a Material

  

 26 

 Adverse Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon such
judgment or order, or (B) there is a period of thirty consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; or 
  
 (h) ERISA. (i) An ERISA Event occurs with respect to
a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in liability of the Borrower under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of the
Threshold Amount, or (ii) the Borrower or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a
Multiemployer Plan in an aggregate amount in excess of the Threshold Amount; or 
  
 (i) Invalidity of Loan Documents. Any Loan Document, at any time after its execution and delivery and for any reason other than as
expressly permitted hereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect; or any Loan Party or any other Person contests in any manner the validity or enforceability of any Loan Document; or any Loan Party
denies that it has any or further liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any Loan Document; or 
  
 (j) Change of Control. There occurs any Change of Control; or 
  
 (k) Revolver Credit Agreement. The occurrence of any Event of Default under, and as defined in, the
Revolver Credit Agreement. 
  
 9.02 Remedies Upon Event of
Default. 
  
 If any Event of Default occurs and is
continuing, the Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders, take any or all of the following actions: 
  
 (a) declare the commitment of each Lender to make Loans to be terminated, whereupon such commitments shall be terminated; 
  
 (b) declare the unpaid principal amount of all outstanding
Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are
hereby expressly waived by the Borrower; and 
  
 (c) exercise on behalf of itself and the Lenders all rights and remedies available to it and the Lenders under the Loan Documents or applicable law; 
  
 provided, however, that upon the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code of
the United States, the obligation of each Lender to make Loans shall automatically terminate and the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically become due and payable, without
further act of the Administrative Agent or any Lender. 
  

 27 

 9.03 Application of Funds. 
  
 After the exercise of remedies provided for in Section 9.02 (or after the Loans have automatically become immediately
due and payable), any amounts received on account of the Obligations shall be applied by the Administrative Agent in the following order: 
  
 First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including Attorney Costs and
amounts payable under Article III) payable to the Administrative Agent in its capacity as such; 
  
 Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest) payable
to the Lenders (including Attorney Costs and amounts payable under Article III), ratably among them in proportion to the amounts described in this clause Second payable to them; 
  
 Third, to payment of that portion of the Obligations constituting
accrued and unpaid interest on the Loans, fees, premiums and scheduled periodic payments, and any interest accrued thereon, due under any Swap Contract between any Loan Party and any Lender, or any Affiliate of a Lender, to the extent such Swap
Contract is permitted by Section 8.03(d) of the Incorporated Covenants, ratably among the Lenders (and, in the case of such Swap Contracts, Affiliates of Lenders) in proportion to the respective amounts described in this clause Third held by
them; 
  
 Fourth, to payment of that portion of the
Obligations constituting unpaid principal of the Loans and breakage, termination or other payments, and any interest accrued thereon, due under any Swap Contract between any Loan Party and any Lender, or any Affiliate of a Lender, to the extent such
Swap Contract is permitted by Section 8.03(d) of the Incorporated Covenants, in proportion to the respective amounts described in this clause Fourth held by them; and 
  
 Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Borrower or as
otherwise required by Law. 
  
 ARTICLE X 
  
 ADMINISTRATIVE AGENT 
  
 10.01 Appointment and Authorization of Administrative Agent.

  
 (a) Each Lender hereby irrevocably appoints, designates
and authorizes the Administrative Agent to take such action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this
Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere herein or in any other Loan Document, the Administrative Agent shall not have any
duties or responsibilities, except those expressly set forth herein, nor shall the Administrative Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities,
duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against the Administrative Agent. Without limiting the generality of the foregoing sentence, the use of the term “agent”
herein and in the other Loan Documents with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable Law. Instead, such term is used
merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. 
  

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 (b) (i) Each Lender authorizes and directs each of the Administrative Agent and the Collateral Agent to
enter into the Term Loan Intercreditor Agreement on behalf of such Lender and each Lender agrees that such Lender shall be bound by all of the terms of the Term Loan Intercreditor Agreement. Each Lender that becomes a party to this Credit Agreement
by way of assignment or other transfer pursuant to Section 11.07 hereof acknowledges that each of the Administrative Agent and the Collateral Agent has entered into the Term Loan Intercreditor Agreement on behalf of such Lender and such Lender
agrees that such Lender shall be bound by all of the terms of the Term Loan Intercreditor Agreement. 
  
 (ii) Each Lender authorizes and directs the Collateral Agent, on behalf of such Lender, to enter into the Intercreditor Agreement and each
Lender agrees that such Lender shall be bound by all of the terms of the Intercreditor Agreement. Each Lender that becomes a party to this Credit Agreement by way of assignment or other transfer pursuant to Section 11.07 hereof acknowledges that the
Administrative Agent, on behalf of such Lender, has entered (or may enter) into the Intercreditor Agreement and such Lender agrees that such Lender shall be bound by all of the terms of the Intercreditor Agreement. 
  
 (iii) Each Lender authorizes and directs the Collateral
Agent, on behalf of such Lender, to enter into the Pledge Agreement and the Security Agreement. 
  
 10.02 Delegation of Duties. 
  
 The Administrative Agent may execute any of its duties under this Agreement or any other Loan Document by or through agents, employees or
attorneys-in-fact and shall be entitled to advice of counsel and other consultants or experts concerning all matters pertaining to such duties. The Administrative Agent shall not be responsible for the negligence or misconduct of any agent or
attorney-in-fact that it selects in the absence of gross negligence or willful misconduct. 
  
 10.03 Liability of Administrative Agent. 
  
 No Agent-Related Person shall (a) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby
(except for its own gross negligence or willful misconduct in connection with its duties expressly set forth herein), or (b) be responsible in any manner to any Lender or participant for any recital, statement, representation or warranty made by any
Loan Party or any officer thereof, contained herein or in any other Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by the Administrative Agent under or in connection with, this
Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document, or for any failure of any Loan Party or any other party to any Loan Document to perform
its obligations hereunder or thereunder. No Agent-Related Person shall be under any obligation to any Lender or participant to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this
Agreement or any other Loan Document, or to inspect the properties, books or records of any Loan Party or any Affiliate thereof. 
  
 10.04 Reliance by Administrative Agent. 
  
 (a) The Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, communication, signature, resolution,
representation, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or telephone message, electronic mail message, statement or 
  

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 other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons, and upon advice and statements of legal counsel (including counsel to any Loan Party), independent accountants and other experts selected by the Administrative Agent. The Administrative Agent shall be fully justified in
failing or refusing to take any action under any Loan Document unless it shall first receive such advice or concurrence of the Required Lenders as it deems appropriate and, if it so requests, it shall first be indemnified to its satisfaction by the
Lenders against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. The Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, under
this Agreement or any other Loan Document in accordance with a request or consent of the Required Lenders (or such greater number of Lenders as may be expressly required hereby in any instance) and such request and any action taken or failure to act
pursuant thereto shall be binding upon all the Lenders. 
  
 (b)
For purposes of determining compliance with the conditions specified in Section 5.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

  
 10.05 Notice of Default. 
  
 The Administrative Agent shall not be deemed to have knowledge or notice of
the occurrence of any Default, except with respect to defaults in the payment of principal, interest and fees required to be paid to the Administrative Agent for the account of the Lenders, unless the Administrative Agent shall have received written
notice from a Lender or the Borrower referring to this Agreement, describing such Default and stating that such notice is a “notice of default.” The Administrative Agent will notify the Lenders of its receipt of any such notice. The
Administrative Agent shall take such action with respect to such Default as may be directed by the Required Lenders in accordance with Article IX; provided, however, that unless and until the Administrative Agent has received
any such direction, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default as it shall deem advisable or in the best interest of the Lenders. 
  
 10.06 Credit Decision; Disclosure of Information by Administrative
Agent. 
  
 Each Lender acknowledges that no Agent-Related
Person has made any representation or warranty to it, and that no act by the Administrative Agent hereafter taken, including any consent to and acceptance of any assignment or review of the affairs of any Loan Party or any Affiliate thereof, shall
be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender as to any matter, including whether Agent-Related Persons have disclosed material information in their possession. Each Lender represents to the
Administrative Agent that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects,
operations, property, financial and other condition and creditworthiness of the Loan Parties and their respective Subsidiaries, and all applicable bank or other regulatory Laws relating to the transactions contemplated hereby, and made its own
decision to enter into this Agreement and to extend credit to the Borrower and the other Loan Parties hereunder. Each Lender also represents that it will, independently and without reliance upon any Agent-Related Person and based on such documents
and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it
deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of the Borrower and the other Loan Parties. Except for notices, reports and other 
  

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 documents expressly required to be furnished to the Lenders by the Administrative Agent herein, the Administrative Agent
shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of any of the Loan Parties or any of
their respective Affiliates which may come into the possession of any Agent-Related Person. 
  
 10.07 Indemnification of Administrative Agent. 
  
 Whether or not the transactions contemplated hereby are consummated, the Lenders shall indemnify upon demand each Agent-Related Person (to the extent not reimbursed by or on behalf of any Loan Party and without
limiting the obligation of any Loan Party to do so), pro rata, and hold harmless each Agent-Related Person from and against any and all Indemnified Liabilities incurred by it; provided, however, that no Lender shall be liable for the
payment to any Agent-Related Person of any portion of such Indemnified Liabilities to the extent determined in a final, nonappealable judgment by a court of competent jurisdiction to have resulted from such Agent-Related Person’s own gross
negligence or willful misconduct; provided, however, that no action taken in accordance with the directions of the Required Lenders shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section.
Without limitation of the foregoing, each Lender shall reimburse the Administrative Agent upon demand for its ratable share of any costs or out-of-pocket expenses (including Attorney Costs) incurred by the Administrative Agent in connection with the
preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other
Loan Document, or any document contemplated by or referred to herein, to the extent that the Administrative Agent is not reimbursed for such expenses by or on behalf of the Borrower. The undertaking in this Section shall survive the payment of all
other Obligations and the resignation of the Administrative Agent. 
  
 10.08 Administrative Agent in its Individual Capacity. 
  
 Bank of America and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial
advisory, underwriting or other business with each of the Loan Parties and their respective Affiliates as though Bank of America were not the Administrative Agent hereunder and without notice to or consent of the Lenders. The Lenders acknowledge
that, pursuant to such activities, Bank of America or its Affiliates may receive information regarding any Loan Party or its Affiliates (including information that may be subject to confidentiality obligations in favor of such Loan Party or such
Affiliate) and acknowledge that the Administrative Agent shall be under no obligation to provide such information to them. With respect to its Loans, Bank of America shall have the same rights and powers under this Agreement as any other Lender and
may exercise such rights and powers as though it were not the Administrative Agent, and the terms “Lender” and “Lenders” include Bank of America in its individual capacity. 
  
 10.09 Successor Administrative Agent. 
  
 The Administrative Agent may resign as Administrative Agent upon thirty
days’ notice to the Lenders. If the Administrative Agent resigns under this Agreement, the Required Lenders shall appoint from among the Lenders a successor administrative agent for the Lenders, which successor administrative agent shall be
consented to by the Borrower at all times other than during the existence of an Event of Default (which consent of the Borrower shall not be unreasonably withheld or delayed). If no successor administrative agent is appointed prior to the effective
date of the resignation of the Administrative Agent, the Administrative Agent may appoint, after consulting with the Lenders and the Borrower, a 
  

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 successor administrative agent from among the Lenders. Upon the acceptance of its appointment as successor administrative
agent hereunder, the Person acting as such successor administrative agent shall succeed to all the rights, powers and duties of the retiring Administrative Agent and the term “Administrative Agent” shall mean such successor administrative
agent, and the retiring Administrative Agent’s appointment, powers and duties as Administrative Agent shall be terminated. After any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the provisions of this
Article X and Sections 11.04 and 11.05 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent under this Agreement. If no successor administrative agent has accepted
appointment as Administrative Agent by the date thirty days following a retiring Administrative Agent’s notice of resignation, the retiring Administrative Agent’s resignation shall nevertheless thereupon become effective and the Lenders
shall perform all of the duties of the Administrative Agent hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided for above. 
  
 10.10 Administrative Agent May File Proofs of Claim. 
  
 In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed
or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise: 
  
 (a) to file and prove a claim for the whole amount of the
principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative
Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel (including reasonable and actual fees and expenses of counsel) and
all other amounts due the Lenders and the Administrative Agent under Sections 2.09 and 11.04) allowed in such judicial proceeding; and 
  
 (b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same; 

 
 and any custodian, receiver, assignee, trustee, liquidator, sequestrator
or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to
the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel (including reasonable and actual fees and expenses of
counsel), and any other amounts due the Administrative Agent under Sections 2.09 and 11.04. 
  
 Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any
plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding. 
  
 10.11 Collateral and Guaranty Matters. 
  
 The Lenders irrevocably authorize the Administrative Agent, at its option
and in its discretion, 
  

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 (a) to release any Lien on any Collateral granted to or held by the Administrative Agent
under any Loan Document (i) upon payment in full of all Obligations (other than contingent indemnification obligations), (ii) that is transferred or to be transferred as part of or in connection with any Disposition permitted hereunder or under any
other Loan Document or any Involuntary Disposition, or (iii) as approved in accordance with Section 11.01; 
  
 (b) to subordinate any Lien on any Property granted to or held by the Administrative Agent under any Loan Document to the holder of any
Lien on such Property that is permitted by Section 8.03(c) of the Incorporated Covenants; and 
  
 (c) to release any Guarantor from its obligations under the Guaranty if such Person ceases to be a Subsidiary as a result of a transaction
permitted hereunder. 
  
 Upon request by the
Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release or subordinate its interest in particular types or items of Property, or to release any Guarantor from its
obligations under the Guaranty, pursuant to this Section 10.11. 
  
 10.12 Other Agents; Arrangers and Managers. 
  
 None of the Lenders or other Persons identified on the facing page or signature pages of this Agreement as a “syndication agent,” “documentation agent,” “co-agent,” “book manager,” “lead
manager,” “arranger,” “lead arranger” or “co-arranger” shall have any right, power, obligation, liability, responsibility or duty under this Agreement other than, in the case of such Lenders, those applicable to
all Lenders as such. Without limiting the foregoing, none of the Lenders or other Persons so identified shall have or be deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges that it has not relied, and will not rely,
on any of the Lenders or other Persons so identified in deciding to enter into this Agreement or in taking or not taking action hereunder. 
  
 ARTICLE XI 
  
 MISCELLANEOUS 
  
 11.01 Amendments, Etc. 
  
 No amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by the Borrower or any other Loan Party therefrom, shall be effective unless in writing signed by the Required Lenders and
the Borrower or the applicable Loan Party, as the case may be, and acknowledged by the Administrative Agent, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given;
provided, however, that no such amendment, waiver or consent shall: 
  
 (a) extend or increase the Term Loan Commitment of any Lender (or reinstate any Term Loan Commitment terminated pursuant to Section
9.02) without the written consent of such Lender (it being understood and agreed that a waiver of any condition precedent set forth in Section 5.02 or of any Default or Event of Default or a mandatory reduction in Term Loan Commitments is
not considered an extension or increase in Term Loan Commitments of any Lender); 
  
 (b) postpone any date fixed by this Agreement or any other Loan Document for any payment of principal, interest, fees or other amounts due
to the Lenders (or any of them) hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; 
  

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 (c) reduce the principal of, or the rate of interest specified herein on, any Loan, or
any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; provided, however, that only the consent of the Required Lenders shall be necessary to
amend the definition of “Default Rate” or to waive any obligation of the Borrower to pay interest at the Default Rate; 
  
 (d) change Section 2.13 or Section 9.03 in a manner that would alter the pro rata sharing of payments required thereby
without the written consent of each Lender directly affected thereby; 
  
 (e) change any provision of this Section or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any
rights hereunder or make any determination or grant any consent hereunder without the written consent of each Lender directly affected thereby; 
  
 (f) except in connection with a Disposition permitted under Section 8.05 of the Incorporated Covenants, release all or
substantially all of the Collateral without the written consent of each Lender directly affected thereby; or 
  
 (g) release the Borrower or, except in connection with a merger or consolidation permitted under Section 8.04 of the Incorporated
Covenants or a Disposition permitted under Section 8.05 of the Incorporated Covenants, all or substantially all of the Guarantors, from its or their obligations under the Loan Documents without the written consent of each Lender directly
affected thereby; 
  
 and, provided further, that (i) no amendment,
waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan Document; and (ii) the Fee
Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto. Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment,
waiver or consent hereunder, except that the Term Loan Commitment of such Lender may not be increased or extended without the consent of such Lender. 
  
 Notwithstanding the fact that the consent of all the Lenders is required in certain circumstances as set forth above, (x) each Lender is entitled to vote as such Lender
sees fit on any bankruptcy reorganization plan that affects the Loans, and each Lender acknowledges that the provisions of Section 1126(c) of the Bankruptcy Code supersedes the unanimous consent provisions set forth herein and (y) the Required
Lenders shall determine whether or not to allow a Loan Party to use cash collateral in the context of a bankruptcy or insolvency proceeding and such determination shall be binding on all of the Lenders. 
  
 11.02 Notices and Other Communications; Facsimile Copies.

  
 (a) General. Unless otherwise expressly provided
herein, all notices and other communications provided for hereunder shall be in writing (including by facsimile transmission). All such written notices shall be mailed, faxed or delivered to the applicable address, facsimile number or (subject to
subsection (c) below) electronic mail address, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows: 
  
 (i) if to the Borrower or the Administrative Agent, to the
address, facsimile number, electronic mail address or telephone number specified for such Person on Schedule 11.02 or to such other address, facsimile number, electronic mail address or telephone number as shall be designated by such party in
a notice to the other parties; and 
  

 34 

 (ii) if to any other Lender, to the address, facsimile number, electronic mail address or
telephone number specified in its Administrative Questionnaire or to such other address, facsimile number, electronic mail address or telephone number as shall be designated by such party in a notice to the Borrower or the Administrative Agent.

  
 All such notices and other communications shall be deemed to
be given or made upon the earlier to occur of (i) actual receipt by the relevant party hereto and (ii) (A) if delivered by hand or by courier, when signed for by or on behalf of the relevant party hereto; (B) if delivered by mail, four Business Days
after deposit in the mails, postage prepaid; (C) if delivered by facsimile, when sent and receipt has been confirmed by telephone; and (D) if delivered by electronic mail (which form of delivery is subject to the provisions of subsection (c)
below), when delivered; provided, however, that notices and other communications to the Administrative Agent pursuant to Article II shall not be effective until actually received by such Person. In no event shall a voicemail
message be effective as a notice, communication or confirmation hereunder. 
  
 (b) Effectiveness of Facsimile Documents and Signatures. Loan Documents may be transmitted and/or signed by facsimile. The effectiveness of any such documents and signatures shall, subject to applicable Law,
have the same force and effect as manually signed originals and shall be binding on all Loan Parties, the Administrative Agent and the Lenders. The Administrative Agent may also require that any such documents and signatures be confirmed by a
manually signed original thereof; provided, however, that the failure to request or deliver the same shall not limit the effectiveness of any facsimile document or signature. 
  
 (c) Limited Use of Electronic Mail. Electronic mail and
internet and intranet websites may be used only to distribute routine communications, such as financial statements and other information as provided in Section 7.02 of the Incorporated Covenants, and to distribute Loan Documents for execution
by the parties thereto, and may not be used for any other purpose. 
  
 (d) Reliance by Administrative Agent and Lenders. The Administrative Agent and the Lenders shall be entitled to rely and act upon any notices (including telephonic Loan Notices) purportedly given by or on behalf of the
Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any
confirmation thereof. All telephonic notices to and other communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording. 
  
 11.03 No Waiver; Cumulative Remedies. 
  
 No failure by any Lender or the Administrative Agent to exercise, and no
delay by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law. 

 

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 11.04 Attorney Costs, Expenses and Taxes. 
  
 The Borrower agrees (a) to pay or reimburse the Administrative Agent for all
reasonable out-of-pocket costs and expenses incurred in connection with the development, preparation, negotiation and execution of this Agreement and the other Loan Documents and any amendment, waiver, consent or other modification of the provisions
hereof and thereof (whether or not the transactions contemplated hereby or thereby are consummated), and the consummation and administration of the transactions contemplated hereby and thereby, including all Attorney Costs and costs and expenses in
connection with the use of Intralinks, Inc. or other similar information transmission systems in connection with this Agreement, and (b) to pay or reimburse the Administrative Agent and each Lender for all costs and expenses incurred in connection
with the enforcement, attempted enforcement, or preservation of any rights or remedies under this Agreement or the other Loan Documents (including all such costs and expenses incurred during any “workout” or restructuring in respect of the
Obligations and during any legal proceeding, including any proceeding under any Debtor Relief Law), including all Attorney Costs. The foregoing costs and expenses shall include all search, filing, recording, title insurance and appraisal charges and
fees and taxes related thereto, and other out-of-pocket expenses incurred by the Administrative Agent and the cost of independent public accountants and other outside experts retained by the Administrative Agent or any Lender. All amounts due under
this Section 11.04 shall be payable within ten Business Days after demand therefor. The agreements in this Section shall survive the repayment of all other Obligations. 
  
 11.05 Indemnification by the Borrower. 
  
 Whether or not the transactions contemplated hereby are consummated, the Borrower agrees to indemnify and hold harmless each
Agent-Related Person, each Lender and their respective Affiliates, directors, officers, employees, counsel, agents and attorneys-in-fact (collectively the “Indemnitees”) from and against any and all liabilities, obligations, losses,
damages, penalties, claims, demands, actions, judgments, suits, costs, expenses and disbursements (including Attorney Costs) of any kind or nature whatsoever which may at any time be imposed on, incurred by or asserted against any such Indemnitee in
any way relating to or arising out of or in connection with (a) the execution, delivery, enforcement, performance or administration of any Loan Document or any other agreement, letter or instrument delivered in connection with the transactions
contemplated thereby or the consummation of the transactions contemplated thereby, (b) any Term Loan Commitment or Loan or the use or proposed use of the proceeds therefrom, (c) any actual or alleged presence or release of Hazardous Materials on or
from any property currently or formerly owned or operated by the Borrower, any Subsidiary or any other Loan Party, or any Environmental Liability related in any way to the Borrower, any Subsidiary or any other Loan Party, or (d) any actual or
prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory (including any investigation of, preparation for, or defense of any pending or threatened claim,
investigation, litigation or proceeding) and regardless of whether any Indemnitee is a party thereto (all the foregoing, collectively, the “Indemnified Liabilities”); provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs, expenses or disbursements are determined by a court of competent jurisdiction by final and
nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee. No Indemnitee shall be liable for any damages arising from the use by others of any information or other materials obtained through
IntraLinks or other similar information transmission systems in connection with this Agreement, nor shall any Indemnitee have any liability for any indirect or consequential damages relating to this Agreement or any other Loan Document or arising
out of its activities in connection herewith or therewith (whether before or after the Closing Date). All amounts due under this Section 11.05 shall be payable within ten Business Days after demand therefor. The agreements in this Section
shall survive the resignation of the Administrative Agent, the replacement of any Lender and the repayment, satisfaction or discharge of all the other Obligations. 
  

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 11.06 Payments Set Aside. 
  
 To the extent that any payment by or on behalf of any Loan Party is made to the Administrative Agent or any Lender, or the
Administrative Agent or any Lender exercises its right of set-off, and such payment or the proceeds of such set-off or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant
to any settlement entered into by the Administrative Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent
of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such set-off had not occurred, and (b) each Lender severally agrees
to pay to the Administrative Agent upon demand its applicable share of any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum
equal to the Federal Funds Rate from time to time in effect. 
  
 11.07 Successors and Assigns. 
  
 (a) The
provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the provisions of subsection
(b) of this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (f) of
this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Indemnitees) any legal or equitable right, remedy or claim under or by reason
of this Agreement. 
  
 (b) Any Lender may at any time assign to
one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Loans at the time owing to it); provided that (i) except in the case of an assignment of the entire
remaining amount of the assigning Lender’s Loans at the time owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund (as defined in subsection (g) of this Section) with respect to a Lender,
the aggregate amount of the Loans) subject to each such assignment, determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the
Assignment and Assumption, as of the Trade Date, shall not be less than $1,000,000 unless the Administrative Agent otherwise consents (such consent not to be unreasonably withheld or delayed); (ii) each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loans assigned; and (iii) the parties to each assignment shall execute and deliver to the Administrative Agent an
Assignment and Assumption, together with a processing and recordation fee of $3,500. Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date
specified in each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of
the assigning Lender’s rights and obligations under this Agreement, such 
  

 37 

 Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 3.01,
3.04, 3.05, 11.04 and 11.05 with respect to facts and circumstances occurring prior to the effective date of such assignment). Upon request, the Borrower (at its expense) shall execute and deliver a Term Note to the
assignee Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with subsection (d) of this Section. 
  
 (c) The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at the Administrative Agent’s Office a copy of each Assignment and Assumption delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the principal amounts of the Loans owing to each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall
be conclusive, and the Borrower, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to
the contrary. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 
  
 (d) Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell
participations to any Person (other than a natural person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under
this Agreement (including all or a portion of the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto
for the performance of such obligations and (iii) the Borrower, the Administrative Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this
Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision
of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in the first proviso to Section
11.01 that directly affects such Participant. Subject to subsection (e) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the same extent
as if it were a Lender and had acquired its interest by assignment pursuant to subsection (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.09 as though it were a
Lender, provided such Participant agrees to be subject to Section 2.13 as though it were a Lender. 
  
 (e) A Participant shall not be entitled to receive any greater payment under Section 3.01 or 3.04 than the applicable Lender would have been
entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it were
a Lender shall not be entitled to the benefits of Section 3.01 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 11.15 as
though it were a Lender. 
  
 (f) Any Lender may at any time pledge
or assign a security interest in all or any portion of its rights under this Agreement (including under its Note, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank;
provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 
  

 38 

 11.08 Confidentiality. 
  
 Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined
below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is
made will be informed of the confidential nature of such Information and instructed to keep such 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 (i) any Eligible Assignee of or Participant in, or any prospective Eligible Assignee of or Participant in, any of its rights or obligations under this
Agreement or (ii) any direct or indirect contractual counterparty or prospective counterparty (or such contractual counterparty’s or prospective counterparty’s professional advisor) to any credit derivative transaction relating to
obligations of the Loan Parties; (g) with the consent of the Borrower; (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to the Administrative Agent or any
Lender on a nonconfidential basis from a source other than the Borrower; or (i) to the National Association of Insurance Commissioners or any other similar organization or any nationally recognized rating agency that requires access to information
about a Lender’s or its Affiliates’ investment portfolio in connection with ratings issued with respect to such Lender or its Affiliates. In addition, the Administrative Agent and the Lenders may disclose the existence of this Agreement
and information about this Agreement to market data collectors, similar service providers to the lending industry, and service providers to the Administrative Agent and the Lenders in connection with the administration and management of this
Agreement, the other Loan Documents and the Credit Extensions. For the purposes of this Section, “Information” means all information received from any Loan Party relating to any Loan Party or its business, other than any such
information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by any Loan Party; provided that, in the case of information received from a Loan Party after the date hereof, such
information is clearly identified in writing at the time of delivery as confidential. Any Person required to maintain the confidentiality of 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 Information as such Person would accord to its own confidential information. Notwithstanding anything herein to the contrary, “Information” shall not
include, and the Administrative Agent and each Lender may disclose without limitation of any kind, any information with respect to the “tax treatment” and “tax structure” (in each case, within the meaning of Treasury Regulation
Section 1.6011-4) of the transactions contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are provided to the Administrative Agent or such Lender relating to such tax treatment and tax structure;
provided that with respect to any document or similar item that in either case contains information concerning the tax treatment or tax structure of the transaction as well as other information, this sentence shall only apply to such portions
of the document or similar item that relate to the tax treatment or tax structure of the Loans and transactions contemplated hereby. 
  
 11.09 Set-off. 
  
 In addition to any rights and remedies of the Lenders provided by law, upon the occurrence and during the continuance of any Event of Default, each Lender
and any Affiliate of a Lender is authorized at any time and from time to time, without prior notice to the Borrower or any other Loan Party, any such notice being waived by the Borrower (on its own behalf and on behalf of each Loan Party) to the
fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held by, and other indebtedness at any time owing by, such Lender to or 
  

 39 

 for the credit or the account of the respective Loan Parties against any and all Obligations owing to such Lender
hereunder or under any other Loan Document, now or hereafter existing, irrespective of whether or not the Administrative Agent or such Lender shall have made demand under this Agreement or any other Loan Document and although such Obligations may be
contingent or unmatured or denominated in a currency different from that of the applicable deposit or indebtedness. Each Lender agrees promptly to notify the Borrower and the Administrative Agent after any such set-off and application made by such
Lender; provided, however, that the failure to give such notice shall not affect the validity of such set-off and application. 
  
 11.10 Interest Rate Limitation. 
  
 Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed
the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”). If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be
applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower. In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such
Person may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate,
allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder. 
  
 11.11 Counterparts. 
  
 This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and
the same instrument. 
  
 11.12 Integration.

  
 This Agreement (including the terms and provisions of the
Revolver Credit Agreement incorporated by reference), together with the other Loan Documents, comprises the complete and integrated agreement of the parties on the subject matter hereof and thereof and supersedes all prior agreements, written or
oral, on such subject matter. In the event of any conflict between the provisions of this Agreement and those of any other Loan Document, the provisions of this Agreement shall control; provided that the inclusion of supplemental rights or
remedies in favor of the Administrative Agent or the Lenders in any other Loan Document shall not be deemed a conflict with this Agreement. Each Loan Document was drafted with the joint participation of the respective parties thereto and shall be
construed neither against nor in favor of any party, but rather in accordance with the fair meaning thereof. 
  
 11.13 Survival of Representations and Warranties. 
  

All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in
connection herewith or therewith shall survive the execution and delivery hereof and thereof. Such representations and warranties have been or will be relied upon by the Administrative Agent and each Lender, regardless of any investigation made by
the Administrative Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default at the time of any Credit Extension, and shall continue in full force and
effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied. 
  

 40 

 11.14 Severability. 
  
 If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the
legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid
or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction. 
  
 11.15 Tax Forms. 
  
 (a)
(i) Each Lender that is not a “United States person” within the meaning of Section 7701(a)(30) of the Internal Revenue Code (a “Foreign Lender”) shall deliver to the Administrative Agent, prior to receipt of any payment
subject to withholding under the Internal Revenue Code (or upon accepting an assignment of an interest herein), two duly signed completed copies of either IRS Form W-8BEN or any successor thereto (relating to such Foreign Lender and entitling it to
an exemption from, or reduction of, withholding tax on all payments to be made to such Foreign Lender by the Borrower pursuant to this Agreement) or IRS Form W-8ECI or any successor thereto (relating to all payments to be made to such Foreign Lender
by the Borrower pursuant to this Agreement) or such other evidence satisfactory to the Borrower and the Administrative Agent that such Foreign Lender is entitled to an exemption from, or reduction of, U.S. withholding tax, including any exemption
pursuant to Section 881(c) of the Internal Revenue Code. Thereafter and from time to time, each such Foreign Lender shall (A) promptly submit to the Administrative Agent such additional duly completed and signed copies of one of such forms (or such
successor forms as shall be adopted from time to time by the relevant United States taxing authorities) as may then be available under then current United States laws and regulations to avoid, or such evidence as is satisfactory to the Borrower and
the Administrative Agent of any available exemption from or reduction of, United States withholding taxes in respect of all payments to be made to such Foreign Lender by the Borrower pursuant to this Agreement, (B) promptly notify the Administrative
Agent of any change in circumstances which would modify or render invalid any claimed exemption or reduction, and (C) take such steps as shall not be materially disadvantageous to it, in the reasonable judgment of such Lender, and as may be
reasonably necessary (including the re-designation of its Lending Office) to avoid any requirement of applicable Laws that the Borrower make any deduction or withholding for taxes from amounts payable to such Foreign Lender. 
  
 (ii) Each Foreign Lender, to the extent it does not act or
ceases to act for its own account with respect to any portion of any sums paid or payable to such Lender under any of the Loan Documents (for example, in the case of a typical participation by such Lender), shall deliver to the Administrative Agent
on the date when such Foreign Lender ceases to act for its own account with respect to any portion of any such sums paid or payable, and at such other times as may be necessary in the determination of the Administrative Agent (in the reasonable
exercise of its discretion), (A) two duly signed completed copies of the forms or statements required to be provided by such Lender as set forth above, to establish the portion of any such sums paid or payable with respect to which such Lender acts
for its own account that is not subject to U.S. withholding tax, and (B) two duly signed completed copies of IRS Form W-8IMY (or any successor thereto), together with any information such Lender chooses to transmit with such form, and any other
certificate or statement of exemption required under the Internal Revenue Code, to establish that such Lender is not acting for its own account with respect to a portion of any such sums payable to such Lender. 
  

 41 

 (iii) The Borrower shall not be required to pay any additional amount to any Foreign
Lender under Section 3.01 (A) with respect to any Taxes required to be deducted or withheld on the basis of the information, certificates or statements of exemption such Lender transmits with an IRS Form W-8IMY pursuant to this Section
11.15(a) or (B) if such Lender shall have failed to satisfy the foregoing provisions of this Section 11.15(a); provided that if such Lender shall have satisfied the requirement of this Section 11.15(a) on the date such
Lender became a Lender or ceased to act for its own account with respect to any payment under any of the Loan Documents, nothing in this Section 11.15(a) shall relieve the Borrower of its obligation to pay any amounts pursuant to Section
3.01 in the event that, as a result of any change in any applicable law, treaty or governmental rule, regulation or order, or any change in the interpretation, administration or application thereof, such Lender is no longer properly entitled to
deliver forms, certificates or other evidence at a subsequent date establishing the fact that such Lender or other Person for the account of which such Lender receives any sums payable under any of the Loan Documents is not subject to withholding or
is subject to withholding at a reduced rate. 
  
 (iv) The Administrative Agent may, without reduction, withhold any Taxes required to be deducted and withheld from any payment under any of the Loan Documents with respect to which the Borrower is not required to pay additional amounts
under this Section 11.15(a). 
  
 (b) Upon
the request of the Administrative Agent, each Lender that is a “United States person” within the meaning of Section 7701(a)(30) of the Internal Revenue Code shall deliver to the Administrative Agent two duly signed completed copies of IRS
Form W-9. If such Lender fails to deliver such forms, then the Administrative Agent may withhold from any interest payment to such Lender an amount equivalent to the applicable back-up withholding tax imposed by the Internal Revenue Code, without
reduction. 
  
 (c) If any Governmental Authority
asserts that the Administrative Agent did not properly withhold or backup withhold, as the case may be, any tax or other amount from payments made to or for the account of any Lender, such Lender shall indemnify the Administrative Agent therefor,
including all penalties and interest, any taxes imposed by any jurisdiction on the amounts payable to the Administrative Agent under this Section, and costs and expenses (including Attorney Costs) of the Administrative Agent. The obligation of the
Lenders under this Section shall survive the repayment of all other Obligations hereunder and the resignation of the Administrative Agent. 
  
 11.16 Replacement of Lenders. 
  
 Under any circumstances set forth herein providing that the Borrower shall have the right to replace a Lender as a party to this
Agreement, the Borrower may, upon notice to such Lender and the Administrative Agent, replace such Lender by causing such Lender to assign its outstanding Loans (with the assignment fee to be paid by the Borrower in such instance) pursuant to
Section 11.07(b) to one or more other Lenders or Eligible Assignees procured by the Borrower. The Borrower shall (y) pay in full all principal, interest, fees and other amounts owing to such Lender through the date of replacement (including
any amounts payable pursuant to Section 3.05) and (z) release such Lender from its obligations under the Loan Documents. Any Lender being replaced shall execute and deliver an Assignment and Assumption with respect to such Lender’s
outstanding Loans. 
  

 42 

 11.17 Designated Senior Indebtedness. 
  
 The Obligations shall constitute “Designated Senior Debt” for
purposes of the Senior Subordinated Note Documents. 
  
 11.18
Release of Collateral and Guarantees. 
  
 The
Administrative Agent hereby agrees with the Borrower that the Administrative Agent shall, upon the request of the Borrower: 
  
 (a) release any Lien on any Collateral granted to or held by the Administrative Agent under any Loan Document (i) upon payment in full of
all Obligations (other than contingent indemnification obligations), (ii) that is transferred or to be transferred as part of or in connection with any Disposition permitted hereunder or under any other Loan Document or any Involuntary Disposition,
or (iii) as approved in accordance with Section 11.01; 
  
 (b) subordinate any Lien on any Property granted to or held by the Administrative Agent under any Loan Document to the holder of any Lien on such Property that is permitted by Section 8.03(c) of the
Incorporated Covenants; and 
  
 (c) release any
Guarantor from its obligations under the Guaranty if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder. 
  
 11.19 Governing Law. 
  
 (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NORTH CAROLINA APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW. 
  
 (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NORTH CAROLINA
SITTING IN CHARLOTTE, NORTH CAROLINA, OR OF THE UNITED STATES FOR THE WESTERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO. THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER WAIVES
PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE. 
  
 11.20 Waiver of Right to Trial by Jury. 
  
 EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN
DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH 
  

 43 

 RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY
FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 
  
 [SIGNATURE PAGES FOLLOW] 
  

 44 

 IN WITNESS WHEREOF, the parties hereto have caused this Credit Agreement to be duly executed as of
the date first above written. 
  

					
	BORROWER:	 	SCHOOL SPECIALTY, INC.
	 	 	a Wisconsin corporation
			
	 	 	By:	 	  

	 	 	Name:	 	Mary M. Kabacinski
	 	 	Title:	 	Chief Financial Officer
		
	GUARANTORS:                                    
        	 	CHILDCRAFT EDUCATION CORP.,
	 	 	a New York corporation
	 	 	CLASSROOMDIRECT.COM, LLC,
	 	 	a Delaware limited liability company
	 	 	BIRD-IN-HAND WOODWORKS, INC.,
	 	 	a New Jersey corporation
	 	 	SPORTIME, LLC,
	 	 	a Delaware limited liability company
	 	 	GLOBAL VIDEO, LLC,
	 	 	a Wisconsin limited liability company
	 	 	PREMIER AGENDAS, INC.,
	 	 	a Washington corporation
	 	 	FREY SCIENTIFIC, INC.,
	 	 	a Delaware corporation
	 	 	AMALGAMATED WIDGETS, INC.,
	 	 	a Wisconsin corporation
	 	 	SAX ARTS & CRAFTS, INC.,
	 	 	a Delaware corporation
	 	 	CALIFONE INTERNATIONAL, INC.,
	 	 	a Delaware corporation
			
	 	 	By:	 	  

	 	 	Name:	 	Mary M. Kabacinski
	 	 	Title:	 	Treasurer of each of the foregoing
	 	 	 	 	 

  
 [Signature Pages
Continue] 

					
	ADMINISTRATIVE AGENT:                    	 	 BANK OF AMERICA, N.A.,
 as
Administrative Agent

	 	 
			
	 	 	By:	 	  

	 	 	Name:	 	 
	 	 	Title:	 	 
		
	LENDER:	 	BANK OF AMERICA, N.A., as a Lender
			
	 	 	By:	 	  

	 	 	Name:	 	 
	 	 	Title:	 	 

 Schedule 2.01 
  
 COMMITMENTS AND PRO RATA SHARES 
  

							
	 Lender

	  	Pro Rata Share

	 	 	Term Loan
Commitment

	 Bank of America, N.A.
	  	100.000000000	%	 	$	100,000,000
	 Total
	  	100.000000000	%	 	$	100,000,000

 Schedule 11.02 
  
 NOTICE ADDRESSES 
  

	1.	Each Loan Party: 

  
 c/o School Specialty, Inc. 
 W6316 Design
Drive 
 Greenville, Wisconsin 54942 

			
	Attention:	  	Mary M. Kabacinski
	Telephone:	  	920-882-5852
	Facsimile:	  	920-882-5863

  

	2.	Administrative Agent: 

  
 For Borrowing and Payment Notices: 
  
 Bank of America, N.A., as Administrative Agent 
 CA4-706-05-09 
 1850 Gateway Blvd., 5th Floor 
 Concord, CA 94520 

			
	Attention:	  	Pamela Greer-Tillman, Credit Services Representative
	Telephone:	  	925-675-8453
	Facsimile:	  	888-969-2786
	  
 Bank of America, N.A.

	Dallas, TX
	ABA # :	  	111000012
	Account # :	  	3750836479
	Attention:	  	Agency Services West
	Reference:	  	School Specialty Inc.
	  
 For All Other Notices:

	  
 Bank of America, N.A., as Administrative
Agent

	1455 Market St
	CA5-701-05-19
	San Francisco, CA 94103
	Attention:	  	Anthea Del Bianco
	Telephone:	  	415.436.2776
	Facsimile:	  	415.503.5101
	Email:	  	anthea.del_bianco@bankofamerica.com

 Exhibit A 
  

FORM OF LOAN NOTICE 
  
 Date:                 , 200   
  

	To:	Bank of America, N.A., as Administrative Agent 

  

	Re:	Term Loan Credit Agreement (as amended, modified, supplemented and extended from time to time, the “Term Loan Credit Agreement”) dated as of August
    , 2005 among School Specialty, Inc., a Wisconsin corporation (the “Borrower”), the Guarantors identified therein, the Lenders identified therein, and Bank of America, N.A., as Administrative Agent.
Capitalized terms used but not otherwise defined herein have the meanings provided in the Term Loan Credit Agreement. 

  
 Ladies and Gentlemen: 
  
 The undersigned hereby requests (select one): 
  
  ̈ A Borrowing of Term Loans 
  
  ̈ A conversion or continuation of Term Loans 
  

	1.	On                 , 200   (which is a Business Day).

  

	2.	In the amount of $                . 

  

	3.	Comprised of                  (Type of Term Loan requested). 

  

	4.	For Eurodollar Rate Loans: with an Interest Period of                  months.

  
 With respect to any Borrowing or any conversion or continuation
requested herein, the Borrower hereby represents and warrants that each of the conditions set forth in Section 5.02 of the Term Loan Credit Agreement have been satisfied on and as of the date of such Borrowing or such conversion or
continuation. 
  

			
	SCHOOL SPECIALTY, INC.,
	a Wisconsin corporation
		
	By:	 	  

	Name:	 	 
	Title:	 	 

 Exhibit C 
  

FORM OF TERM LOAN NOTE 
  
 August     , 2005 
  
 FOR VALUE RECEIVED, SCHOOL SPECIALTY, INC., a Wisconsin corporation (the “Borrower”), hereby promises to pay to
                         or registered assigns (the “Lender”), in accordance with the provisions of the
Term Loan Credit Agreement (as hereinafter defined), the principal amount of each Term Loan from time to time made by the Lender to the Borrower under the Term Loan Credit Agreement (as amended, modified, supplemented and extended from time to time,
the “Term Loan Credit Agreement”) dated as of August     , 2005 among the Borrower, the Guarantors identified therein, the Lenders identified therein and Bank of America, N.A., as Administrative
Agent. Capitalized terms used but not otherwise defined herein have the meanings provided in the Term Loan Credit Agreement. 
  
 The Borrower promises to pay interest on the unpaid principal amount of each Term Loan from the date of such Term Loan until such principal amount is paid in full, at
such interest rates and at such times as provided in the Term Loan Credit Agreement. All payments of principal and interest shall be made to the Administrative Agent for the account of the Lender in Dollars in immediately available funds at the
Administrative Agent’s Office. If any amount is not paid in full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the due date thereof until the date of actual payment (and before as well as after
judgment) computed at the per annum rate set forth in the Term Loan Credit Agreement. 
  
 This Term Loan Note is one of the Term Loan Notes referred to in the Term Loan Credit Agreement, is entitled to the benefits thereof and may be prepaid in whole or in part subject to the terms and conditions provided therein. Upon the
occurrence and continuation of one or more of the Events of Default specified in the Term Loan Credit Agreement, all amounts then remaining unpaid on this Term Loan Note shall become, or may be declared to be, immediately due and payable all as
provided in the Term Loan Credit Agreement. Term Loans made by the Lender shall be evidenced by one or more loan accounts or records maintained by the Lender in the ordinary course of business. The Lender may also attach schedules to this Term Loan
Note and endorse thereon the date, amount and maturity of its Term Loans and payments with respect thereto. 
  
 The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment, protest and demand and notice of protest, demand, dishonor and nonpayment of this Term Loan Note. 
  
 THIS TERM LOAN NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NORTH CAROLINA. 
  
 [SIGNATURE PAGE FOLLOWS] 

 IN WITNESS WHEREOF, the Borrower has caused this Term Loan Note to be duly executed as of the date first above written.

  

			
	SCHOOL SPECIALTY, INC.,
	a Wisconsin corporation
		
	By:	 	  

	Name:	 	 
	Title:	 	 

 Exhibit E 
  

FORM OF ASSIGNMENT AND ASSUMPTION 
  
 This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between
[Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used but not defined herein have the meanings provided in the Term Loan Credit Agreement identified below,
receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as
if set forth herein in full. 
  
 For an agreed consideration, the Assignor hereby
irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Term Loan Credit Agreement, as of the Effective
Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s rights and obligations as a Lender under the Term Loan Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent
related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including, without limitation, Guarantees included in such facilities)
and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection
with the Term Loan Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims,
tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and
(ii) above being referred to herein collectively as, the “Assigned Interest”). Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation
or warranty by the Assignor. 
  

					
	1.	  	Assignor:	  	__________________________________
			
	2.	  	Assignee:	  	 __________________________________  [and is an
 Affiliate/Approved Fund of [identify Lender]]

			
	3.	  	Borrower:	  	School Specialty, Inc., a Wisconsin corporation
			
	4.	  	Administrative Agent:	  	 Bank of America, N.A., as the administrative agent under the
 Term Loan Credit Agreement

			
	5.	  	 Term Loan
 Credit Agreement:
	  	Term Loan Credit Agreement dated as of August     , 2005 by and among the Borrower, the Guarantors identified therein, the Lenders parties thereto and Bank of America,
N.A., as Administrative Agent.

					
	6.	  	    Assigned Interest:	  	 

  

							
	 Facility
 Assigned

	 	 Aggregate Amount of Term Loan
                 of all
Lenders                

	 	 Amount of Term Loan
             Assigned            

	 	 Percentage of Term Loan
             Assigned            

	 Term Loan
	 	 	 	 	 	 

  

					
	7.	  	    Trade Date:	  	___________________1
			
	8.	  	    Effective Date:	  	___________________2

  
 The terms set forth in this Assignment
and Assumption are hereby agreed to: 
  

					
	ASSIGNOR:	 	[NAME OF ASSIGNOR]
			
	 	 	By:	 	  

	 	 	Name:	 	 
	 	 	Title:	 	 
		
	ASSIGNEE:	 	[NAME OF ASSIGNEE]
			
	 	 	By:	 	  

	 	 	Name:	 	 
	 	 	Title:	 	 

  
 [Consented to and]3 Accepted: 
  

			
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	[Consented to:]4
	
	SCHOOL SPECIALTY, INC.
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  

	1	To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date. 

	2	To be inserted by Administrative Agent and shall be the effective date of recordation of transfer in the register therefor. 

	3	To be added only if the consent of the Administrative Agent is required by the terms of the Term Loan Credit Agreement. 

	4	To be added only if the consent of the Borrower is required by the terms of the Term Loan Credit Agreement. 

 Annex 1 to Assignment and Assumption 
  
 STANDARD TERMS AND CONDITIONS 
  
 1. Representations and Warranties. 
  
 1.1. Assignor. The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free
and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby;
and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Term Loan Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the
performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document. 
  
 1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary,
to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Term Loan Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under the Term Loan
Credit Agreement (subject to receipt of such consents as may be required under the Term Loan Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Term Loan Credit Agreement as a Lender thereunder
and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Term Loan Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section
7.01 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which
it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) if it is a Foreign Lender, attached hereto is any documentation required to be delivered by it pursuant to the terms
of the Term Loan Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the
terms of the Loan Documents are required to be performed by it as a Lender. 
  
 2.
Payments. From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have
accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date. 
  
 3. General Provisions. This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and
assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be
effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of North Carolina.Acquisition Agreement

 Exhibit 10.1 
  
 ACQUISITION AGREEMENT 
  
 This Agreement, dated as of August 19, 2005, by and between Wicks Learning Group, LLC, a Delaware limited liability company (“Seller”), and
School Specialty, Inc., a Wisconsin corporation (“Buyer”). 
  
 WHEREAS, Seller owns all of the membership interests of Delta Education, LLC, a Delaware limited liability company (the “Company”), and such membership interests being the “Membership Interests”. 
  
 WHEREAS, the Company is engaged in the business of publishing, assembling,
marketing, selling and distributing books, publications, software, kits, programs and materials for elementary school and secondary school education (the “Business”). 
  
 NOW, THEREFORE, in consideration of the mutual covenants, agreements, representations and warranties herein contained, and
upon the terms and subject to the conditions hereinafter set forth, the parties hereto hereby agree as follows: 
  
 ARTICLE 1 
  
 Sale and Purchase of Membership Interests 
  
 1.1 Sale
and Purchase. Subject to the terms and conditions hereof, at the Closing (as such term is defined in Section 2.1 below), Seller shall, sell, assign, convey and transfer to Buyer, and Buyer shall purchase from Seller, all right, title and
interest of Seller in and to the Membership Interests, free and clear of all Liens (as hereinafter defined). 
  
 1.2 Purchase Price; Payment. In consideration of the sale, assignment and transfer of the Membership Interests pursuant to Section 1.1 hereof,
Buyer shall pay an amount (the “Purchase Price”) equal to $272,000,000, plus the amount of cash and cash equivalents on hand in the Company’s bank, money market and/or securities accounts as of the date (such date being the
“Measurement Date”) which is earliest of the Closing Date or the Stated Date (as herein defined), subject to an appropriate reserve for outstanding checks as of the Measurement Date, subject to possible adjustment pursuant to Section 5.15
hereof. It being understood that, from the Purchase Price payable by Buyer to Seller, without double counting: (i) Buyer shall be entitled to deduct therefrom Seller’s share of the Transaction Taxes under Section 5.9 paid by Buyer at Closing,
if any, Seller’s share of the HSR Fees and any Excluded Liabilities paid at Closing by Buyer on Seller’s behalf, (ii) the portion of the Purchase Price equal to the outstanding indebtedness of the Company owing to the Lenders as of the
Closing Date under the Credit Agreement (the “Debt Amount”) shall be paid by Buyer in accordance with the instructions of the Agent under the Credit Agreement, (iii) $15,000,000 (the “Escrow Amount”) shall be delivered to
JPMorgan Chase Bank, or if such entity is not willing to serve as escrow agent, such 

 other escrow agent as Seller and Buyer shall agree upon, such agreement not to be unreasonable withheld or delayed (the
“Escrow Agent”) to be held in escrow pursuant to the terms and conditions of the Escrow Agreement substantially in the form attached hereto as Exhibit 1.2 (the “Escrow Agreement”), and (iv) the balance of the Purchase
Price shall be paid to Seller, as hereinafter provided. 
  
 1.3
Allocation of Purchase Price. The Purchase Price and all other items that comprise the applicable “consideration” (as defined in Treasury Regs. §1.1060-1(c)) shall be allocated in accordance with Exhibit 1.3 hereto.
Neither Seller nor Buyer shall, nor shall either of them permit any of its Affiliates (including the Company) to, file any Tax Return, or take a position with a Tax authority, that is inconsistent with the allocation of the Purchase Price set forth
on Exhibit 1.3 hereto, or that treats the transactions contemplated by this Agreement in a manner inconsistent with the terms of this Agreement. Each of Seller and Buyer agrees to cooperate with the other party in preparing a Form 8594 in a
manner consistent with said Exhibit 1.3 for filing by each of them (or their applicable Affiliates) and to furnish the other party with a copy of such Form 8594 within a reasonable period before its filing due date. 
  
 ARTICLE 2 
  
 Closing; Deliveries; Conditions Precedent 
  
 2.1 Closing. 
  
 (a) The closing under this Agreement (the “Closing”) shall take place at the offices of Golenbock Eiseman Assor Bell & Peskoe LLP, 437
Madison Avenue, New York, New York, as soon as reasonably practicable, but no later than 10:00 a.m., local time, on the third (3rd) business day on or by which the last condition specified in Section 2.4(c) hereof shall have been fulfilled or waived
in accordance with this Agreement, or, if the parties shall mutually agree upon another date, then such other mutually agreed upon date. The date of the Closing is herein called the “Closing Date”. 
  
 (b) All proceedings to be taken and all documents to be executed and
delivered by the parties at the Closing shall be deemed to have been taken and executed simultaneously and no proceedings shall be deemed taken nor any documents executed or delivered until all have been taken, executed and delivered. 
  

 2 

 2.2 Seller Deliveries. Concurrently with the execution and delivery hereof, Seller is causing to
be executed and delivered to Buyer a Back-Up Indemnification Agreement in the form of attached hereto as Exhibit 2.2 (the “Indemnification Agreement”), duly executed by Wicks Communication & Media Partners, L.P. (the
“Fund”), Wicks Parallel (Limited) Partnership I, L.P., Gary Facente 2005 Irrevocable Trust, David Cruise, and Steven Korte (collectively, the “Back-Up Indemnitors”). At the Closing, Seller shall deliver to Buyer: 
  
 (a) an Instrument of Transfer and Assumption, in respect of the Membership
Interests, executed by Seller, substantially in the form of Exhibit 2.2(a) hereto (the “LLC Instrument”); 
  
 (b) a release dated the Closing Date in the form of Exhibit 2.2(b) hereto from Seller in favor of the Company; 
  
 (c) a Non-Competition and Non-Solicitation Agreement from the Fund
substantially in the form of Exhibit 2.2(c) hereto, executed by the Fund; 
  
 (d) complete and correct copies of the Certificate of Formation (the “Certificate”) and limited liability company agreement (the “Operating Agreement”) of Seller and the Company, certified by an
officer of each of Seller and the Company to be true, complete and correct as of the Closing Date; 
  
 (e) copies of the limited liability company resolutions authorizing the execution and delivery by Seller of this Agreement and consummation of the
transactions contemplated hereby, certified by an officer of Seller; 
  
 (f) a certificate of good standing with respect to each of Seller and the Company, as of a then recent date by the Secretary of State of the State of Delaware; 
  
 (g) the Escrow Agreement, duly executed by Seller; 
  
 (h) a certificate of an appropriate officer of Seller certifying as to the incumbency of the officers of Seller, executing
this Agreement and the Seller Documents, including specimen signatures; and 
  
 (i) all other documents required by the terms of this Agreement to be executed and/or delivered by Seller to Buyer at the Closing. 
  
 2.3 Buyer’s Deliveries. At the Closing, Buyer will pay and/or deliver to Seller (or as otherwise expressly
indicated below): 
  
 (a) in accordance with the instructions of
the Agent under the Credit Agreement, the Debt Amount, by wire transfer of immediately available funds; 
  
 (b) in accordance with instructions of the Escrow Agent, the Escrow Amount, by wire transfer of immediately available funds; 
  

 3 

 (c) an amount equal to the balance of the Purchase Price as determined in accordance with Section 1.2,
above, shall be paid to Seller by wire transfer of immediately available funds to such accounts as Seller shall specify; 
  
 (d) a release dated the Closing Date in the form of Exhibit 2.3(d) hereto from the Company in favor of Seller and its Affiliates and the officers
of the Company named therein; 
  
 (e) copies of the organizational
documents of Buyer, certified by an officer of Buyer to be true, complete and correct as of the Closing Date; 
  
 (f) a copy of resolutions of Buyer authorizing the execution and delivery of this Agreement and the Buyer Documents and the consummation of the
transactions contemplated hereby and thereby, certified by an officer of Buyer; 
  
 (g) the Buyer Sublease L/C and each Further Buyer L/C, or the Substitute Collateral, as required by Section 2.6 hereof; 
  
 (h) a certificate of the Secretary or other appropriate officer of each of Buyer certifying as to the incumbency of the officers of Buyer, as applicable,
executing this Agreement and the Buyer Documents, and including specimen signatures; 
  
 (i) a certificate of status with respect to Buyer, issued as of a then recent date by the Wisconsin Department of Financial Institutions; 
  
 (j) the Escrow Agreement, duly executed by Buyer and Escrow Agent; and 
  
 (k) all other documents required by the terms of this Agreement to be
executed and/or delivered by Buyer at the Closing. 
  
 2.4
Conditions Precedent to Buyer’s Obligations. The obligations of Buyer under this Agreement to proceed with the Closing are subject, at the option of Buyer, to the fulfillment of the following conditions at or prior to the Closing:

  
 (a) the representations and warranties of Seller contained in
this Agreement and/or any certificate delivered at the Closing pursuant to this Agreement shall be true and correct when made, except where, in the case of those representations and warranties (or any portion(s) thereof) which are not limited by the
term Material Adverse Effect, the failure to be true and correct would not have a Material Adverse Effect, and except for changes permitted by this Agreement, and, except for representations and warranties made as of a specific date, shall also be
true and correct at the time of Closing with the same force and effect as though such representations and warranties were made at that time, except where, in the case of those representations and warranties (or any portion(s) thereof) which are not
limited by the term Material Adverse Effect, the failure to be true and correct would not have a Material Adverse Effect; 
  

 4 

 (b) each covenant, agreement and obligation required by the terms of this Agreement to be complied with
and performed by Seller at or prior to the Closing, shall have been complied with and performed in all material respects; 
  
 (c) the waiting period under the HSR Act (as hereinafter defined) shall have expired or been terminated; 
  
 (d) no United States or state governmental authority or other agency or
commission or United States or state court of competent jurisdiction (a “Governmental Authority”) shall have issued, enforced or entered any injunction or other order which is in effect and has the effect of making the transactions
contemplated by this Agreement illegal or otherwise restraining or prohibiting consummation of such transactions; provided, however, that Buyer shall have used its best efforts to have any such order or injunction vacated; and 
  
 (e) there shall be delivered to Buyer an opinion of counsel to Seller, dated
as of the Closing Date, substantially in the form of Exhibit 2.4(e) hereto; 
  
 (f) there shall be delivered to Seller a Non-Competition and Non-Solicitation Agreement for Gary Facente, substantially in the form of Exhibit 2.4(f) hereto. 
  
 (g) there shall have been delivered to Buyer termination statements and
releases of the Lenders in form satisfactory to release the liens and security interests of the Lenders on the properties and assets of the Company and on the Membership Interests, the delivery and effectiveness of which shall be subject to the
Lender’s receipt of the Debt Amount pursuant to this Agreement and Buyer’s compliance with Section 2.6 hereof; 
  
 (h) there shall be delivered to and for the benefit of Buyer a certificate of Seller executed as of the Closing Date that the conditions set forth in
subsections (a) and (b) of this Section 2.4 have been fulfilled. 
  
 2.5 Conditions Precedent to Seller’s Obligations. The obligations of Seller under this Agreement to proceed with the Closing are subject, at the option of Seller, to the fulfillment of each of the following conditions at or
prior to the Closing: 
  
 (a) the representations and warranties
of Buyer contained in this Agreement, and/or any certificate delivered at the Closing pursuant to this Agreement, shall be true and correct in all material respects when made, and shall also be true and correct in all material respects at the time
of the Closing with the same force and effect as though such representations and warranties were made at that time, except for changes permitted by this Agreement; 
  
 (b) each covenant, agreement and obligation required by the terms of this Agreement to be complied with and performed by
Buyer at or prior to the Closing shall have been duly and properly complied with and performed; 
  

 5 

 (c) the waiting period under the HSR Act shall have expired or been terminated; 
  
 (d) no Governmental Authority shall have issued, enforced or entered any
injunction or other order which is in effect and has the effect of making the transactions contemplated by this Agreement illegal or otherwise restraining or prohibiting consummation of such transactions; and 
  
 (e) there shall be delivered to Seller an opinion of counsel to Buyer, dated
as of the Closing Date, substantially in the form of Exhibit 2.5(e) hereto. 
  
 (f) there shall be delivered to the Company a certificate of Buyer executed as of the Closing Date that the conditions set forth in subsections (a) and (b) of this Section 2.5 have been fulfilled. 
  
 2.6 Sublease Matters and Other L/C Matters. (a) Buyer shall provide at
the Closing a letter of credit from a bank or lending institution satisfactory to Seller, such letter of credit to conform to the requirements of the Sublease (the “Buyer Sublease L/C”), and shall take all steps reasonably requested by
Seller to have the Buyer Sublease L/C substituted for the letter of credit in the amount of $700,000 provided by the Company (the “Company Sublease L/C”) and held by the Sublessor pursuant to the Sublease, and to have the Company Sublease
L/C promptly returned to Seller for cancellation (including without limitation by cooperating in such pre-Closing escrow arrangement with the Sublessor for the receipt, holding and exchange for the Company Sublease L/C of the Buyer Sublease L/C, as
Seller shall request). 
  
 (b) Buyer shall provide at the Closing
substitute letters of credit from one or more banks or lending institutions satisfactory to Seller, (or reasonably satisfactory collateral) with respect to the letters of credit identified on Schedule 3.2 of the Disclosure Schedule. Any substitute
letters of credit shall conform to the applicable requirements referred to in Schedule 3.2 of the Disclosure Schedule (each such letter of credit being a “Further Buyer L/C”), and Buyer shall take all steps reasonably requested by
Seller to have each Further Buyer L/C substituted for the corresponding letter of credit referred to in said Schedule 3.2 (each such letter of credit being a “Further Company L/C”), and to have each Further Company L/C promptly
returned to Seller for cancellation (including without limitation by cooperating in such pre-Closing escrow arrangements for the receipt, holding and exchange for each Further Company L/C of the corresponding Further Buyer L/C as Seller shall
request. 
  
 (c) In the event the Company Sublease L/C or any
Further Company L/C remains outstanding at the Closing, Buyer shall deposit at the Closing with the agent for the lenders under the Credit Agreement such amount (by wire transfer of immediately available funds to such account as such agent shall
designate), one or more back-up letters of credit, or other instrument or documentation (any such amount, letter(s) of credit or instrument or document being herein called an “Substitute Collateral”) as such agent shall require (but not to
exceed 110% of the face value of the 
  

 6 

 Company Sublease L/C or any Further Company L/C that remains outstanding at the Closing), to secure or support all
obligations arising out of or which could arise out of the drawing of, any or all of the Company Sublease L/C and each Further Company L/C and fees relating thereto. 
  
 2.7 Agreements Regarding Certain Employees. Seller acknowledges that Gary Facente may, at his option, continue to be
employed by the Company after the Closing Date through October 14, 2005, it being further understood and acknowledged by Buyer that Mr. Facente will at all times continue to be entitled to act as a consultant to and or an officer and/or an employee
of EMC Corporation and/or any of its Affiliates (subject to the restrictions set forth in the agreement referred to in Section 2.4(f) above). 
  
 ARTICLE 3 
  
 Representations and Warranties of Seller 
  
 Seller hereby makes each of the following representations and warranties: 
  
 3.1 Organization, Standing and Qualification; Authority; Capitalization. 
  
 (a) The Company is a limited liability company validly existing and in good standing under the laws of the State of
Delaware. The Company is duly qualified to do business and is in good standing as a foreign limited liability company under the laws of each state where the failure to be so qualified would result in a Material Adverse Effect. The Company has the
requisite limited liability company power and limited liability company authority to own and lease its properties and to carry on its business in the places such properties are now owned or leased or where such business is presently conducted. The
copies of the Certificate and Operating Agreement heretofore delivered by the Seller are complete and correct. 
  
 (b) Except as listed on Schedule 3.1(b) of the Disclosure Schedule delivered by the Company concurrently with the execution and delivery of this
Agreement (the “Disclosure Schedule”), the Company has no subsidiaries nor any interest, direct or indirect, or has any commitment to purchase any interest, direct or indirect, in any other corporation, partnership, joint venture or other
business enterprise or entity which owns or conducts the operations of the Business. Except as indicated in said Schedule 3.1(b), none of the Business, or the assets or properties of the Company is owned, used or conducted by any affiliate of
the Company. 
  
 (c) Seller is a limited liability company validly
existing and in good standing under the laws of Delaware. This Agreement has been duly executed by Seller. This Agreement constitutes the legal, valid and binding obligation of Seller, and each of the Seller Documents shall, when executed and
delivered by Seller, constitute the legal, valid and binding obligations of Seller, in each case, assuming due execution of such documents by the other parties thereto. 
  

 7 

 (d) Seller has all requisite limited liability company power and limited liability company authority to
enter into this Agreement and each of the other agreements, certificates and instruments to be executed and delivered by it pursuant hereto (collectively the “Seller Documents”) and to carry out the transactions contemplated hereby and
thereby. All limited liability company proceedings required to be taken by Seller relating to the execution, delivery and performance of this Agreement and the Seller Documents and the consummation of the transactions contemplated hereby have been
duly taken. 
  
 (e) The Membership Interests constitute all of the
membership interests in the Company and all of the Membership Interests are owned of record and beneficially by Seller. There are not outstanding any securities or rights convertible into or exchangeable for securities of, or membership interests
in, the Company and there are no contracts, commitments, understandings or arrangements by which the Company or Seller is bound to issue any membership interests or securities or rights convertible into or exchangeable for membership interests, or
options, warrants or rights to purchase any such membership interests. Seller has good title to the Membership Interests, free and clear of all liens, except for Liens in favor of the Lenders under the Credit Agreement which are to be released at
Closing upon the Lender’s receipt of the Debt Amount pursuant to this Agreement and Buyer’s compliance with Section 2.6 hereof. 
  
 3.2 No Violation. Except for the expiration or termination of the waiting period under the HSR Act or as indicated in Schedule 3.2 of the
Disclosure Schedule: the execution, delivery and performance by Seller of this Agreement and the Seller Documents and its consummation of the Transactions, will not conflict with or violate the Certificate or Operating Agreement of the Company or of
Seller or any lease, license, promissory note, conditional sales contract, indenture, mortgage, deed of trust or other agreement or instrument to which the Company or Seller is a party, or any law, rule or regulation to which the Company or Seller
is subject, which in any case would reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect, or violate any court or administrative order by which the Company is bound, and no approval or consent of any
governmental authority is necessary for the execution, delivery and performance by Seller of this Agreement which, if not obtained, would reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect. 
  
 3.3 Financial Statements. Buyer has been provided copies of
(collectively, the “Financial Statements”): (i) the audited balance sheet and related audited statement of income and cash flow of the Company as at and for the fiscal year ended December 31, 2004, and (ii) the unaudited balance sheet and
statement of income of the Company as at and for the six (6) months ended July 3, 2005 (such July 3, 2005 balance sheet being the “Recent Balance Sheet”). Except as indicated in and subject to Schedule 3.3 of the Disclosure
Schedule, the Financial Statements have been prepared in accordance with GAAP and fairly present in all material respects the financial position of the Company and the results of operations of the Company as of the respective dates thereof and for
the entire fiscal periods covered 
  

 8 

 thereby, subject, in the case of all interim period Financial Statements, to the absence of footnotes and year-end audit
adjustments. The Financial Statements are attached to Schedule 3.3 of the Disclosure Schedule. 
  
 3.4 Absence of Undisclosed Liabilities. The Company has no liability which would be required in accordance with GAAP to be set forth or reserved
against on a balance sheet of the Company which has not been set forth on the Recent Balance Sheet or referred to in the notes to the most recent audited consolidated balance sheet included among the Financial Statements, except as indicated on
Schedule 3.4 of the Disclosure Schedule, or on any one or more of the other Schedules of the Disclosure Schedule, and except for those (i) incurred after such date in the ordinary course of business, (ii) covered by insurance, indemnification
or comparable arrangements, or (iii) which would not reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect. 
  
 3.5 Absence of Certain Changes or Events. Except as set forth in Schedule 3.5 of the Disclosure Schedule, or as contemplated or permitted by
this Agreement, since the date of the Recent Balance Sheet; (i) there has not been any salary increase payable by the Company to any of the key employees of the Company, except increases which do not exceed five (5%) percent occurring in the
ordinary course of business in accordance with customary practices or as a result of bona fide reclassification or promotion, (ii) there has not been any material increase in the rates or terms of pension and similar employee benefit plans of the
Company, except increases occurring in the ordinary course of business in accordance with the Company’s customary practices, (iii) there has not been any material grant by the Company of severance pay in favor of any employee of the Company
except in the ordinary course of business in accordance with customary practices, (iv) there has not been any entry into any material agreement or material transaction by the Company outside the ordinary course of business by the Company, (v) there
has not been any material change by the Company in its accounting methods, principles or practices, other than as required by GAAP, (vi) the Company has not mortgaged, pledged or granted a security interest on any of its assets, (vii) the Company
has not sold, transferred, leased to others or otherwise disposed of any material assets, except in the ordinary course of business and except for cash distributions to Seller, (viii) the Company has not encountered any labor union organizing
activity, had any actual or threatened employee strike, work stoppage, slow down or lockout, which has had or is expected to, individually or in the aggregate, have a Material Adverse Effect, (ix) made or agreed to make any modification or amendment
to any of the Material Contracts or terminated or agreed to terminate any Material Contract, prior to the expiration of the applicable term thereof, which in any case or in the aggregate would have a Material Adverse Effect, (x) amended the
Company’s Certificate of Formation, Operating Agreement or other governing documents, (xi) discharged any material lien upon any material asset of the Company, other than in the ordinary course of business, except liens existing in connection
with the Credit Agreement or other indebtedness for borrowed money, (xii) there has not been a Material Adverse Effect, (xiii) the Company has not accelerated, in any material respects, the collection of accounts receivable or the shipment of
products, in each case outside the ordinary 
  

 9 

 course of business, or (xiv) there has not been, in any material respects, the deferment of trade accounts payable
outside the ordinary course of business consistent with past practices. 
  
 3.6 Tax Matters. Except as set forth on Schedule 3.6 of the Disclosure Schedule: 
  
 (a) The Company has timely filed all material Tax Returns that it has been required to file. All Taxes shown on any such Tax Return have been paid. No
material pending claim has been made in writing by an authority in a jurisdiction where the Company does not file Tax Returns that it is subject to taxation by that jurisdiction. 
  
 (b) No Tax audits or administrative or judicial proceedings are being conducted as of the date of this Agreement with
respect to Taxes of the Company. As of the date of this Agreement, there is no material deficiency for any Tax, claim for additional material Taxes, or other dispute or claim concerning any material Tax liability of the Company, claimed, issued or
raised by any Tax authority that has not been properly reflected in the Financial Statements and will not be reflected in the Closing Working Capital. Schedule 3.6 of the Disclosure Schedule lists all federal, state, local and foreign income
Tax Returns filed with respect to the Company for taxable periods ended on or after December 31, 2001, and prior to the date of this Agreement and indicates those income Tax Returns that have been audited. Seller has delivered to Buyer correct and
complete copies of all such income Tax Returns. As of the date of this Agreement, the Company has not waived any statute of limitations in respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency.

  
 (c) The aggregate unpaid Taxes of the Company (i) did not, as
of December 31, 2004, materially exceed the reserve for liability for Taxes set forth on the December 31, 2004 balance sheet of the Company, and (ii) do not materially exceed that reserve as to be adjusted for the passage of time through the Closing
Date in accordance with the past custom and practice of the Company. 
  
 (d) The Company is a single-member domestic limited liability company. No election has been made with respect to the Company under Treasury Regs. §301.7701-3(c)(1)(i) to have the Company treated other than as a disregarded entity.

  
 (e) The Company, in all material respects, has withheld and
paid over all Taxes required to have been withheld and paid over, and complied, in all material respects, with all information reporting in respect of backup withholding requirements, including maintenance of required records with respect thereto,
in respect of amounts paid or owing to any employee, creditor, independent contractor or other third party. 
  

 10 

 (f) For purposes of this Agreement, “Tax” or “Taxes” means any federal, state, local,
or foreign income, gross receipts, license, payroll, employment, excise, severance, windfall profits, franchise, withholding, social security, unemployment, real property, personal property, sales, use, transfer, value added, alternative or add-on
minimum, or other tax, including any interest, penalty, or addition thereto, and including any obligation to indemnify or otherwise assume or succeed to the Tax liability of any other person; and “Tax Return” means any return, declaration
or report, of Taxes, including any schedule or attachment thereto, and including any amendment thereof. 
  
 3.7 Real Property. Schedule 3.7 of the Disclosure Schedule sets forth a list of all real property owned by the Company and all material
leases by the Company of real property used for the operations of the Business (each such parcel of real property being herein called “Real Property”, and collectively the “Real Properties”). 
  
 3.8 Other Tangible Property. Except as set forth on Schedule
3.8 of the Disclosure Schedule, the books and records of the Company in all material respects reflect the vehicles, machinery, equipment and other tangible personal property owned or leased by the Company. Except as set forth on said Schedule
3.8 and except for Permitted Liens, no material personal property of the Company, used for the operations of the Business is held under any lease, security agreement, conditional sales contract, or other title retention or security arrangement,
or is located other than in the possession or under the control of the Company. 
  
 3.9 Intellectual Property. Schedule 3.9 of the Disclosure Schedule sets forth a list of all, patents, trademarks and service marks and copyrights (and all applications in respect of the foregoing) which
are registered and owned by the Company and are material to the Business. Except as set forth in said Schedule 3.9: the Company owns or has the right to use its Intellectual Property as it is now used in the Business, free and clear of all
Liens, other than Permitted Liens, except for Intellectual Property the lack of which would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; there is no infringement or alleged infringement by others
of any of the Company’s Intellectual Property which individually or in the aggregate is reasonably expected to have a Material Adverse Effect; and, except as provided in any license or other agreement pursuant to which the Company have obtained
the right to use such Intellectual Property, there is no material restriction on Seller’s use of the Intellectual Property relating to the Business substantially consistent with current practice; the Company is not infringing on any trade name,
trademark, service mark or copyright of any other person or entity, which infringements are reasonably expected individually or in the aggregate to have a Material Adverse Effect. 
  
 3.10 Title to Assets; Condition of Property. 
  
 (a) Except as set forth on Schedule 3.10(a) of the Disclosure Schedule, the Company has good title to the property
and assets owned or purported to 
  

 11 

 be owned by it (other than the Intellectual Property, with respect to which only the representations and warranties of
Seller set forth in Section 3.9 hereof shall govern and control), free and clear of all Liens, except for the Permitted Liens. 
  
 (b) Except as set forth in Schedule 3.10(b) of the Disclosure Schedule, the Real Property owned or leased by the Company and the tangible personal
property, that is necessary to the operations of the Business as presently conducted is, to the knowledge of Seller, in operating condition, reasonable wear and tear excepted, except where the failure to be in such condition, or the cost or
replacing, correcting or repairing the same, would not have individually or in the aggregate a Material Adverse Effect. 
  
 3.11 Insurance Policies. Schedule 3.11 of the Disclosure Schedule sets forth a list of material insurance policies held by the Company as of
the date of this Agreement concerning the Business. Except as set forth in said Schedule 3.11, no claims are pending under any such policy which would reasonably be expected to, individually or in the aggregate, have a Material Adverse
Effect. 
  
 3.12 Contracts. Except as indicated below,
Schedule 3.12 of the Disclosure Schedule lists or describes all written contracts, agreements and leases of the Company in effect as of the date of this Agreement which are material to the Company as well as the following to which the Company
is a party (the “Material Contracts”): 
  
 (a) all
material leases and subleases of real property by the Company; 
  
 (b) each contract or agreement for the purchase or lease of personal property with any supplier that involves payments in excess of $50,000 in any single case, other than purchase orders or short-term arrangements (i.e. less than 60 days)
entered into in the ordinary course of business; 
  
 (c) each
author or publishing contract or agreement that involves or is reasonably expected to involve royalty or similar payments in excess of $50,000 in respect of the immediately preceding fiscal year or the current fiscal year of the Company; 

 
 (d) all broker, dealer, manufacturer’s representative or reseller
contracts involving payments in excess of $50,000 per annum in any single case to which the Company is a party; 
  
 (e) any contract or agreement that contemplates or involves (i) the payment or delivery of cash or other consideration to the Company in an amount in
excess of one hundred thousand dollars ($100,000), or (ii) the performance of services or sales of products by the Company having a value in excess of one hundred thousand dollars ($100,000), which in either case is not terminable by the Company
without material penalty or on not more than 30 days prior notice, other than purchase or sales orders, or short-term arrangements (i.e., less than 60 days), entered into in the ordinary course of business; 
  
  

 12 

 (f) all contracts or agreements relating to the Company’s indebtedness for borrowed money;

  
 (g) any written employment contract currently in effect, other
than any involving at-will employment; 
  
 (h) any contract or
agreement for the management of the Business; and 
  
 (i) any
material contract or agreement containing covenants not to compete in any line of business or with any other person in any geographical area or covenants of any other person not to compete with the Business in any line of business or in any
geographical area. 
  
 Except as set forth on Schedule 3.12 of the
Disclosure Schedule, Seller has delivered or made available to Buyer, in all material respects, true and correct copies of all such Material Contracts. Notwithstanding anything to the contrary contained herein, Schedule 3.12 of the Disclosure
Schedule shall not be required to, and the term “Material Contracts” shall not, include (i) any contracts or agreements relating to the acquisition of any of the properties or assets of the Company if the obligations of the Company
thereunder have been fully performed (except for customary assumptions of liabilities of sellers and indemnification obligations as to post-closing operations of acquired businesses), (ii) contracts or agreements granting rights to publish, license,
distribute publications, programs or other works that have been performed in full by the Company or do not require future royalty payments or contain other material continuing obligations of the Company or Seller, (iii) purchase, sale and other
business or end user orders for products, materials, goods or services in the ordinary course of business, or (iv) other agreements not covered in clause (i), clause (ii) or clause (iii) above entered into in the ordinary course of business
involving payments by the Company of less than $50,000 in any single case and less than $500,000 in the aggregate. The Material Contracts identified on Schedule 3.12 of the Disclosure Schedule as “Terminating Contracts” are to be
terminated effective as of or prior to the Closing, including, without limitation, in the case of the Employment Agreements, dated as of August 8, 2001, between the Company and Gary Facente (the “Employment Agreement”), those obligations
of Gary Facente pursuant to Section 9 of the Employment Agreement, which would otherwise have survived the termination of his employment with the Company. Unless otherwise noted on Schedule 3.12 of the Disclosure Schedule, to the knowledge of
Seller, the Material Contracts are in full force and effect (except as the same may terminate or expire or may have terminated or expired in accordance with the terms thereof), and the Company is not in default of, nor has there occurred an event or
condition which, with the passage of time or giving of notice (or both) would constitute a Company default of, any Material Contract, which default, and the cost of curing the same, would individually or in the aggregate have a Material Adverse
Effect. 
  

 13 

 3.13 Compliance with Laws. Except as set forth on Schedule 3.13 of the Disclosure Schedule,
there is no violation by the Company of any applicable federal, state or local statute, law or regulation (including, without limitation, any applicable building, zoning, or other law, ordinance or regulation, but excluding (i) any environmental
matters, it being understood that such matters shall be governed exclusively by Section 3.19 hereof, and (ii) employee benefit or welfare or employment or labor related matters, it being understood that such matters shall, as the case may be, be
governed exclusively by Section 3.16 or Section 3.17 hereof) affecting its properties or the operation of the Business, which violation, and the cost of curing the same, would individually or in the aggregate have a Material Adverse Effect.

  
 3.14 Litigation. Except as set forth on Schedule
3.14 of the Disclosure Schedule, there is not pending, nor, to the knowledge of Seller, threatened, any suit, legal action, arbitration, or legal or administrative proceeding, against the Company which would reasonably be expected to have a
Material Adverse Effect or a material adverse effect on the ability of the Company to consummate the Transactions. The Company is not in material violation of any order, writ, injunction or decree of any Governmental Authority expressly directed at
or naming the Company. 
  
 3.15 Governmental
Authorizations. Except as set forth in Schedule 3.15 of the Disclosure Schedule, the Company has all governmental authorizations, licenses, franchises and permits necessary to the operations of the Business, except where the failure to
have the same, and the cost of obtaining the same would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. 
  
 3.16 Employee Benefit Matters. (a) Schedule 3.16 of the Disclosure Schedule sets forth all employee benefit plans (within the meaning of
Section 3(3) of ERISA) and all bonus, stock option, stock purchase, restricted stock, incentive, deferred compensation, retiree medical or life insurance, supplemental retirement, severance, termination or other material benefit plans, programs or
arrangements, which are maintained, contributed to or sponsored by the Company for the benefit of any current or former employee of the Company (the plans, programs and arrangements, described herein being the “Employee Plans”). The
Company does not have any formal commitment to create any additional material Employee Plan or to materially modify any existing material Employee Plan that would affect any employees or terminated employees of the Company. 
  
 (b) Except as disclosed on Schedule 3.16 of the Disclosure Schedule,
each Employee Plan is in writing and Seller has previously made available to Buyer a true and complete copy of each written Employee Plan and a true and complete copy of the following, if any, prepared in connection with each Employee Plan: (i) a
copy of each corresponding trust agreement, (ii) each current summary plan description, (iii) the most recently filed IRS Form 5500, (iv) the most recently received IRS determination letter for such Employee Plan, (v) the most recently prepared
actuarial 
  

 14 

 report and financial statement for such Employee Plan, and (vi) any material, unresolved correspondence with the IRS or
the Department of Labor with respect to each such Employee Plan. 
  
 (c) No Employee Plan is a multiemployer plan (within the meaning of Section 3(37) or 4001(a)(3) of ERISA) (a “Multiemployer Plan”) or a single employer pension plan (within the meaning of Section 4001(a)(15) of ERISA) for which
the Company is likely to incur liability under Section 4063 or 4064 of ERISA (a “Multiple Employer Plan”). 
  
 (d) Except as disclosed on Schedule 3.16 of the Disclosure Schedule, each Employee Plan has been operated in all material respects in accordance
with the requirements of all applicable laws, regulations and rules, including, without limitation, ERISA and the Code. As of the date of this Agreement, no material action, claim or proceeding is pending or, to the Seller’s knowledge,
threatened with respect to any Employee Plan (other than claims for benefits in the ordinary course). 
  
 (e) Except as disclosed on Schedule 3.16 of the Disclosure Schedule, to Seller’s knowledge, each Employee Plan that is intended to be
qualified under Section 401(a) and 501(a) of the Code is so qualified, and each such Employee Plan has been operated in all material respects in accordance with the requirements of ERISA and the Code. 
  
 (f) To the knowledge of Seller, except as indicated on Schedule 3.16
of the Disclosure Schedule, neither the Company nor any Employee Benefit Plan, nor any “disqualified person” or “party in interest”, as defined under ERISA, with respect to any Employee Plan, has engaged in any transaction which
is expected to subject the Company to either a material civil penalty under Section 502(i) or (l) of ERISA or a material tax imposed under Section 4975 or 4976 of the Code. 
  
 3.17 Labor Matters. Except as set forth on Schedule 3.17 of the Disclosure Schedule: 
  
 (a) the Company is not a party to any collective bargaining agreement or
other labor union contract applicable to persons employed by the Company, and, to the knowledge of Seller, as of the date of this Agreement, there are no organizational campaigns, petitions or other unionization activities seeking recognition of a
collective bargaining unit including such employees; 
  
 (b) there
are no strikes, organized slowdowns or organized work stoppages pending or, to the knowledge of Seller, threatened between the Company and its employees, and the Company has not experienced any such strike, slowdown or work stoppage within the three
(3) years prior to the date hereof; 
  
 (c) the Company is in
compliance with all applicable laws relating to the employment of labor, including those related to wages, hours, collective bargaining, in each case except as would not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect; and 
  

 15 

 (d) to the knowledge of Seller, there is no threatened labor, wage and hour, workers’ compensation,
wrongful termination, discrimination or other employment-related grievance or legal or arbitration proceeding with respect to claims of, or obligations to, any current or former employee or group of employees of the Business, which is reasonably
expected to have, individually or in the aggregate, a Material Adverse Effect, and 
  
 (e) to the knowledge of Seller, there is no threatened termination of employment by a key employee of the Company which is reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.

  
 3.18 Fees. The Company has not paid or become
obligated to pay any fee or commission to any broker, finder or investment banker in connection with the Transactions, except as set forth on Schedule 3.18 of the Disclosure Schedule. 
  
 3.19 Environmental Laws. Except as set forth on Schedule 3.19
of the Disclosure Schedule, to the knowledge of Seller: 
  
 (a)
The operations of the Company at the Real Properties are in compliance with all applicable Environmental Requirements, except where such noncompliance or the cost of curing the same would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect. The Company has not received any written communication as to a currently pending matter relating to any of the Real Properties from a governmental authority that alleges that it is not in such compliance.

  
 (b) There are no environmental actions relating to any of the
Real Properties pending, or to the knowledge of Seller, threatened against the Company which would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 
  
 (c) The Company engages in no activities, including, without limitation, the
release, threatened release, emission, discharge or disposal of any material, of environmental concern that are reasonably likely to form the basis of any environmental action against the Company which would reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect. Seller has provided Buyer with true and complete copies of all environmental reports and studies listed on Schedule 3.19 of the Disclosure Schedule. 
  
 For purposes of this Agreement, the term “material of environmental concern” means
any gasoline, oil and other petroleum products, explosives, radioactive materials, lead, pesticide, formaldehyde and related and similar materials, and any other substance, material or chemical defined as a hazardous, toxic or polluting substance,
material or chemical by any federal, state or local law, ordinance, rule or regulation, and the term “Environmental Requirement” means any and all federal, state and local laws, ordinances, rules, regulations and requirements, and any and
all rules of common law, dealing with or relating to any material of environmental concern, the use or preservation of natural resources, or the pollution, protection or restoration of the environment. 
  

 16 

 3.20 Officers of the Company. The officers of the Company, and the employees of the Company
holding the title of “vice president”, in each case as of the date of this Agreement, are set forth on Schedule 3.20 of the Disclosure Schedule. 
  
 3.21 Bank Accounts. Set forth on Schedule 3.21 of the Disclosure Schedules is a list of bank accounts of the
Company as of the date of this Agreement. 
  
 3.22
Products. Except as set forth on Schedule 3.22 of the Disclosure Schedules, no claim for product liability has been asserted against the Company during the five (5) year period immediately preceding the date hereof and no event has
occurred which might give rise to the assertion of any such claim, in each case which is reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. 
  
 3.23 Product Warranties. Except as set forth on Schedule 3.23 of the Disclosure Schedule, to Seller’s
knowledge: (i) no material liability for any warranty claims on the Company’s products exists for the repair or replacement thereof or other damages in connection with such services, sales or deliveries thereof, except for any such claims
incurred in the ordinary course of business consistent in all material respects in amount and character with past experience of the Company, and (ii) product labeling of the Company is in conformity with all applicable legal requirements, except for
any failure which is not reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. Copies of current Company standard printed terms and conditions of sale, delivery or lease of Company catalog products have in all
material respect been provided to Seller. 
  
 3.24 Customers;
Vendors. Schedule 3.24 of the Disclosure Schedule sets forth, with respect to the last fiscal year of the Company and with respect to the seven (7)-month period ended July 31, 2005, a list which reflects in all material respects the
dollar amount derived from each of the ten (10) largest (based on dollar amounts purchased from the Company) customers of the Company, and the dollar amount purchased from the ten (10) largest (based on dollar amounts purchased by the Company)
vendors (other than licensors, authors, contributors or the like) of the Company. Except as set forth on Schedule 3.24 of the Disclosure Schedule, neither the Company nor Seller has received any written notice of the intention of any of the
customers, vendors or third parties to Material Contracts of the Company to cease doing business or reduce in any material respect the business transacted with the Company or to terminate or modify any agreements with the Company (whether upon
consummation of the transactions contemplated hereby or otherwise) which would have, individually or in the aggregate, a Material Adverse Effect. 
  

 17 

 3.25 Relationship with Affiliates. Except as set forth on Schedule 3.25 of the Disclosure
Schedule, neither the Seller nor any Affiliate of the Seller has, or since December 31, 2004 has had, any interest in any property being used in or pertaining to the Company’s business, and neither the Seller nor any Affiliate of the Seller is,
or since December 31, 2004 has owned a equity interest or any other financial or profit interest in, a Person that has had business dealings or a financial interest in any transaction with the Company. 
  
 3.26 Certain Understandings. Notwithstanding anything to the contrary
contained in this Agreement: 
  
 (a) For purpose of this
Agreement, the terms “knowledge of Seller”, “Seller’s knowledge”, “knowledge of the Company”, or the “Company’s knowledge”, and variations thereof, shall be deemed to refer only to the actual
knowledge of Craig B. Klosk, Gary Facente, David Cruise, Steven Korte, Robert Kelley and Tom Guetling. An individual will be deemed to have “knowledge” of a particular fact or other matter only if such individual is actually aware of such
fact or other matter. 
  
 (b) Certain matters and items disclosed
in any Schedule of the Disclosure Schedule may not be required to be disclosed therein, but may be disclosed therein for informational purposes only, and no such disclosure shall constitute an indication or admission of the materiality thereof or
create a standard of disclosure. 
  
 (c) The specification of any
dollar amount in the representations and warranties contained in this Agreement or the inclusion of any specific item in any of the Schedules of the Disclosure Schedule or Exhibits is not intended to imply that such amounts or higher or lower
amounts, or the items so included or other items, are or are not material and the fact of the setting of such amounts or the fact of the inclusion of any such item in any of the Schedules of the Disclosure Schedule or Exhibits shall not be used in
any dispute or controversy as to whether any obligation, item or matter not described herein or included in any of the Schedules of the Disclosure Schedule or Exhibit is or is not material for purposes of this Agreement. 
  
 (d) Notwithstanding any cross-referencing which may be undertaken in the
Disclosure Schedule, any matter identified in any one or more of the Schedules of the Disclosure Schedule shall be deemed disclosed for purposes of any other Schedule of the Disclosure Schedule to the extent a reasonable person would consider that
it could be relevant in light of the context thereof. 
  

 18 

 ARTICLE 4 
  
 Representations and Warranties of Buyer 
  
 Buyer represents and warrants to Seller that: 
  
 4.1 Organization and Standing. Buyer is a corporation validly existing and in good standing under the laws of the State of Wisconsin and has all
requisite power and authority to own and lease its assets and properties and to carry on its business as and in the places such assets and properties are now owned or leased and where such businesses are presently conducted. 
  
 4.2 Authority. Buyer has all requisite power and authority to enter
into this Agreement and each other agreement, certificate and instrument to be executed and delivered by it pursuant to this Agreement (collectively the “Buyer Documents”) and to carry out its obligations hereunder and thereunder and to
consummate the transactions contemplated hereby and thereby. The execution and delivery by Buyer of this Agreement and the Buyer Documents, the performance by Buyer of its obligations hereunder and thereunder and the consummation by Buyer of the
transactions contemplated hereby and thereby have been duly authorized by all requisite action of Buyer. This Agreement has been duly executed and delivered by Buyer, and constitutes, and when executed and delivered each of the Buyer Documents will
constitute, the legal, valid and binding obligation of such of Buyer as is a party thereto, enforceable against each of them which is a party thereto in accordance with their respective terms. All proceedings and actions required to be taken by
Buyer relating to the execution, delivery and performance of this Agreement and the Buyer Documents and the consummation of the transactions contemplated hereby and thereby, have been duly taken. 
  
 4.3 Litigation. There is no legal or administrative action, suit,
proceeding, arbitration or investigation pending, or to the knowledge of Buyer threatened, against Buyer or any of Buyer’s Affiliates, and there is not outstanding any order, writ, injunction, award or decree of any court or arbitrator or any
federal, state, municipal or other governmental department, commission, board, agency or instrumentality to which Buyer or any of Buyer’s Affiliates is subject, that challenges, or may have the effect of preventing, delaying, making illegal, or
otherwise interfering with, or which could reasonably be expected to materially adversely affect the ability of Buyer to, consummate the transactions contemplated hereby or by any of this Agreement or any of the Buyer Documents. 
  
 4.4 Financing. Buyer has all funds and financing necessary to perform
all of its duties under this Agreement and the Buyer Documents, and consummate the transactions contemplated by this Agreement in accordance with the respective terms of this Agreement and the Buyer Documents. 
  
 4.5 Qualification. To Buyer’s actual knowledge, there are no
facts or proceedings relating to Buyer or any Buyer’s Affiliates that it believes could 
  

 19 

 reasonably be expected to disqualify or restrict Buyer under any Anti-trust Requirements from controlling, acquiring or
operating any of the Business or that it believes could reasonably be expected to cause the United States Department of Justice (the “Department of Justice”) or the Federal Trade Commission (the “FTC”) not to permit the prompt
expiration of all waiting periods under the HSR Act, in connection with the Transactions; provided, however, that Seller acknowledges the overlap in operations between the Business and Buyer’s Frey Scientific and educational publishing
divisions. 
  
 4.6 No Violation. Except for the expiration
or termination of the waiting period under the HSR Act, the execution, delivery and performance of this Agreement and the Buyer Documents by Buyer and the consummation by each of them of the transactions contemplated by this Agreement and by the
Buyer Documents will not (i) conflict with or violate any provision of the Articles of Incorporation, Bylaws or other governing documents of Buyer, (ii) with or without the giving of notice or the passage of time, or both, result in a breach of, or
violate, or be in conflict with, or constitute a material default under, or permit the termination of, or cause or permit acceleration under, any material agreement, instrument, debt or obligation to which Buyer is a party or to or by which Buyer is
subject or bound, or (iii) violate any material law, rule or regulation or any order, judgment, decree or award of any court, governmental authority or arbitrator to or by which Buyer is subject or bound, except as would not reasonably be expected
individually or in the aggregate to have, individually or in the aggregate, a material adverse effect on the financial condition or results or operations of Buyer or on the ability of Buyer to timely consummate the transactions contemplated by this
Agreement and by the Buyer Documents to which it is a party. 
  
 4.7 Consents and Approvals. The execution, delivery and performance by Buyer of this Agreement or any of the Buyer Documents and the consummation of the transactions contemplated hereby and thereby do not and will not require any
consent, approval, authorization or other action by, or declaration, filing or registration with, or notification to, any government entity or regulatory authority or any other third party. 
  
 4.8 Brokerage or Finder’s Fee. No person is entitled to, has
received, or shall receive any brokerage commissions or finder’s fees in connection with the Transactions as a result of any action taken by Buyer or any of the affiliates, officers, directors or employees thereof. 
  
 4.9 Own Investigation; etc. 
  
 (a) Buyer understands and agrees to the limitations and other matters set
forth in Section 3.26 hereof and that SELLER IS NOT MAKING ANY, AND SELLER DISCLAIMS ALL, REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY AND ALL IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OR AS TO THE CONDITION OF THE COMPANY, 
  

 20 

 ANY OF THE ASSETS OR PROPERTIES OF THE COMPANY, OR THE BUSINESS, EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT OR
THE SELLER DOCUMENTS. 
  
 (b) Buyer acknowledges and agrees that
(i) it has made its own inquiry and investigation into, and, based thereon, has formed an independent judgment concerning Seller, the Company, the Business and the assets and properties of the Company, (ii) it has been furnished with or been given
adequate access to such information about Seller the Company, the Business and the assets and properties of the Company, as it has requested, and (iii) it will not assert any claim against Seller or the Company or any direct or indirect owner
thereof or any of their respective directors, officers, employees, agents, members, managers, affiliates, consultants, counsel, accountants, investment bankers or representatives, or hold Seller or the Company or any such persons liable, for any
inaccuracies, misstatements or omissions with respect to information (other than the assertion of indemnification claims in accordance with Article 7 with respect to the representations and warranties of Seller contained in this Agreement)
furnished by or for Seller or the Company, including without limitation any information set forth in any confidential offering memorandum or other materials previously delivered to Buyer or Affiliate thereof, any agent or representative thereof or
of any of such Affiliates. 
  
 (c) In connection with Buyer’s
investigation of Seller, the Company, the Business and the assets and properties of the Company, Buyer has received certain projections and other forecasts, plans and budgets. Buyer acknowledges that there are uncertainties inherent in attempting to
make such projections, forecasts, plans and budgets, that Buyer is familiar with such uncertainties and is not relying upon such projections, forecasts, plans or budgets, that Buyer is taking full responsibility for making its own evaluation of the
adequacy and accuracy of all estimates, projections, forecasts, plans and budgets so furnished to it, and that Buyer will not assert or permit to be asserted any claim against Seller or the Company or any direct or indirect owner of any of them or
any of their respective general or limited partners, directors, officers, employees, agents, stockholders, members, managers, Affiliates, consultants, counsel, accountants, investment bankers or representatives, or hold Seller or the Company or any
of the foregoing liable with respect thereto. Buyer acknowledges and agrees that neither Seller nor the Company makes and has not made, directly or indirectly, any representations or warranties regarding pro-forma financial information, financial
projections or other forward-looking statements regarding the Company or the Business. Buyer has not relied on and is not relying on any statement, representation or warranty not made in this Agreement. 
  
 (d) Buyer is an “accredited investor” within the meaning of the
rules and regulations under the Securities Act of 1933, as amended, and is acquiring the Membership Interests for its own account for the purpose of investment and not with a view to the distribution thereof. Buyer acknowledges that the sale of the
Membership Interests has not been registered under the Securities Act of 1933, as amended, or under any state or foreign securities laws (together, “Securities Laws”) and that the Membership Interests may not be sold, transferred, offered
for sale, pledged, hypothecated or otherwise disposed of without registration under applicable Securities Laws, pursuant to an exemption therefrom or in a transaction not subject thereto. 
  

 21 

 (e) Buyer is a publicly traded company whose equity securities are currently registered under the
Securities Act of 1934, as amended. 
  
 ARTICLE 5 
  
 Certain Covenants 
  
 5.1 Consents. Each of Seller and Buyer shall use its reasonable
commercial efforts to obtain all material consents required of third persons in connection with the Transactions. Without limiting the generality of the foregoing, Buyer (i) shall provide such financial statements and other financial information
with respect to Buyer as may reasonably be requested, and (ii) if requested, shall agree, in writing in form and substance satisfactory to the other party thereto, as the case may be, to assume and perform the obligations under any contract for
which a consent is sought. The provisions of this Section 5.1 shall survive the Closing. 
  
 5.2 Conduct of Business. During the period from the date of this Agreement until the Closing, except for cash distributions to or for the benefit of Seller, subject to Section 5.15(b) hereof, the payment of
indebtedness in respect of the Credit Agreement or any of the Excluded Liabilities, the termination of the Company’s 401K Plan as contemplated by Section 5.7 hereof, or except as provided in Schedule 5.2 of the Disclosure Schedule,
Seller shall cause the Company to use its reasonable commercial efforts to conduct the operations and business of the Business, in all material respects, in the ordinary course of business consistent with past or otherwise reasonable practices, and,
without limiting the foregoing, prior to the Closing, except in the ordinary course of business consistent with past practice, Seller shall not, without the prior written consent of Buyer (such consent not to be unreasonably withheld or delayed),
permit the Company to: 
  
 (a) enter into any agreement or
contract which if entered into prior to the date hereof would have been required to be disclosed on Schedule 3.12 of the Disclosure Schedule pursuant to the representations set forth in Section 3.12 hereof, other than agreements or contracts
in the nature of renewals or replacements on substantially similar or then prevailing reasonable commercial terms in the ordinary course of business; 
  
 (b) intentionally subject to any Liens (except Permitted Liens) any material assets of the Company; 
  
 (c) dissolve, liquidate, merge or consolidate or sell, transfer, lease or
otherwise dispose of any material property or assets of the Company other than in the ordinary course of business or as otherwise permitted by this Agreement and other than cash distributions or dividends to Seller; 
  

 22 

 (d) make or authorize any capital expenditures in excess of $50,000 in the aggregate, other than
substantially consistent with budgets therefor or to repair or replace capital items in the ordinary course of business or to the extent covered by insurance proceeds; 
  
 (e) settle or compromise any material pending or threatened suit or legal action other than in the ordinary course of
business; 
  
 (f) intentionally accelerate or compromise any
material amount of trade accounts receivable or intentionally delay payment of any material amount of trade accounts payable or normally accruing business expenses in a manner materially inconsistent with past practice; or 
  
 (g) make any material Tax election or materially change its method of Tax
accounting; or 
  
 (h) perform any acts or transactions described
in any of clauses (i), (ii), (iii) (iv), (v), (vi), (vii), (ix), (x), (xi), (xiii) or (xiv) of Section 3.5 hereof which would have been inconsistent with the representations and warranties set forth in Section 3.5 hereof had the same occurred after
the date of the Balance Sheet and prior to the date hereof. 
  
 5.3 Access to Information. 
  
 (a) During the
period from the date of this Agreement until the Closing, Buyer and its representatives shall be given reasonable access upon reasonable prior notice and during times mutually convenient to Buyer and senior management of the Company to the
facilities, properties, and key management employees, books and records of the Business as from time to time may be reasonably requested, and provided the same would not cause undue disruption of the activities of the Business, for the purpose of
permitting Buyer to, among other things: (a) conduct its due diligence review, (b) review the financial statements of the Company, (c) verify the accuracy of the representations and warranties of the Sellers contained in this Agreement, and (d)
prepare for the consummation of the transactions contemplated by this Agreement. Without limiting the foregoing, Seller and the Company will permit the Buyer and its representatives to have access during normal business hours to examine and make
copies of all work papers and schedules of the Company and its accountants. In connection therewith, the Buyer shall be permitted to discuss the business affairs and financial statements of the Company with the Company’s accountants, and to
review the work papers of such accountants regarding the Company. 
  
 (b) In order to facilitate the resolution of any third party claims made by or against or incurred by Seller or any Seller Indemnitee, after the Closing, upon reasonable notice and at Seller’s expense, Buyer shall (i) afford the
officers, members, managers and authorized agents and representatives of Seller reasonable access, during normal business hours, to the office, properties, books and records of the Company, (ii) furnish to the officers, members, managers and
authorized 
  

 23 

 agents and representatives of Seller such additional financial and other information regarding the Company and/or those
operations of the Business, and the assets, properties and financial condition thereof, as Seller or any such officer, member, manager or authorized agent or representative may from time to time reasonably request, and (iii) make available to
Seller, the employees of the Company or the employees of Buyer engaged in the Business, or any other person whose assistance, testimony or presence is necessary to assist Seller or any of Seller Indemnitees to evaluate any of such claims or in
defending any of such claims, including the presence of such persons as witnesses in hearings or trials; provided, however, that such investigation shall not unreasonably interfere with the operations of Buyer or any of its Affiliates. 

 
 5.4 No Shop. Seller agrees that, from and after the date hereof and
until the earlier of the termination of this Agreement in accordance with the terms hereof or the 40th day after the date hereof, Seller will not, nor will it permit the Company to, sell, transfer or otherwise dispose of the Membership Interests or
any of the assets or properties of the Business (except for dispositions in the ordinary course of business or as permitted elsewhere in this Agreement), and Seller will not respond to inquiries or proposals, or enter into or pursue any
negotiations, or enter into any agreements, with respect to, the sale or purchase of the Membership Interests or the assets, properties or business of the Business (except for dispositions in the ordinary course of business or as permitted elsewhere
in this Agreement). 
  
 5.5 Buyer’s Qualifications.
Buyer will not knowingly take any action or omit to take any action, or cause to be taken or to occur any action or omission, which would cause the representation set forth in Section 4.5 hereof to have been untrue if such action or omission had
been taken or occurred prior to the date hereof. 
  
 5.6
Cooperation; Taking of Certain Actions. From the date hereof until the earlier of the Closing or the termination of this Agreement, each of Seller and Buyer shall (and Seller shall cause the Company to) use its commercially reasonable efforts
to take any additional action that is necessary or required in connection with any notices to, filings with, and authorizations, consents and approvals of, any governmental agency or any third party required to be given, made or obtained in order to
effect the Transactions, and (ii) furnish to the other party hereto such necessary information and reasonable assistance as such other party may reasonably request in connection with its preparation of such necessary notices to or filings with or
authorizations, consents and approvals of any such governmental agency or third party. 
  
 5.7 Certain Employee Matters. Until December 31, 2005, Buyer shall continue substantially the same retirement and welfare plans applicable to the Company’s employees as are in effect immediately prior to
the Closing; except that Seller shall cause the Company’s Fidelity Investments, 401K Plan to be terminated at Closing. Nothing contained in this Section 5.7 shall be deemed to grant any such employee any right to continued employment after the
Closing Date. 
  

 24 

 5.8 Confidential Information. Buyer agrees that from and after the date hereof until and including
the Closing Date: 
  
 (a) it shall preserve and maintain all
confidential or proprietary information and trade secrets of or relating to Seller, the Company or the Business received or obtained in any form by Buyer or any of its Affiliates or representatives from Seller, the Company or any of their respective
representatives, and shall not disclose any of same to any person or entity or use any such confidential or proprietary information or trade secret for personal advantage or to the detriment of the Company, Seller or any of the members thereof,
except that Buyer shall be free to use and disclose such proprietary information and trade secrets which (A) were already in Buyer’s possession at the time of disclosure to Buyer or any of its Affiliates or representatives by Seller, the
Company or any of their respective representatives, (B) are a matter of public knowledge other than as a result of actions taken or disclosures made by or on behalf of Buyer or any of its Affiliates or representatives, or (C) are lawfully obtained
by Buyer from a third person not under any restriction or duty as to confidentiality. 
  
 (b) Nothing contained herein should be deemed to negate or limit Seller’s rights or any obligations of Buyer or any of its Affiliates under that certain letter agreement dated July 21, 2004 with Seller (the
“Confidentiality Agreement”). The Confidentiality Agreement shall remain in full force and effect. 
  
 (c) Because the remedy at law for any breach of the provisions of subsection (a) immediately above would be inadequate, Buyer hereby consents to the
granting by any court of an injunction or other equitable relief, without the necessity of actual damage or irreparable harm being proved or the posting of any bond or other security, with respect to any breach or threatened breach of any of such
provisions. 
  
 (d) The provisions of this Section 5.8 shall
survive any termination of this Agreement. Without intending to limit the provisions of Section 5.8 hereof, if this Agreement shall be terminated pursuant to Section 6.1 hereof, or otherwise, Buyer shall (i) immediately deliver all documents, work
papers and other materials furnished to Buyer or any of its Affiliates or representatives, whether obtained before or after the execution of this Agreement, and (ii) destroy all documents, work papers and other materials developed by or for Buyer or
any of its accountants, agents or employees, which embody proprietary or confidential information or trade secrets of Seller, the Company or the Business or immediately deliver such documents, work papers and other materials to Seller. 

 
 (e) In addition, it is the desire and intent of the parties hereto that
the provisions of this Section 5.8 shall be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement may be sought. Accordingly, if any particular provision of this Section 5.8
shall be adjudicated to be invalid, illegal or unenforceable in any respect, such provision shall be deemed amended to delete therefrom the portion thus adjudicated to be invalid, illegal 
  

 25 

 or unenforceable, such deletion to apply only with respect to the operation of such provision in the particular
jurisdiction in which such adjudication is made, and the remaining provisions contained herein shall not in any way be affected thereby. Further, if any one or more of the provisions contained in this Section 5.8 shall for any reason be held to be
excessively broad as to duration, geographical scope, activity or subject, such provision(s) shall be construed by limiting and reducing the same, so as to be enforceable to the maximum extent under the applicable law as it shall then exist.

  
 5.9 Transactional Taxes. Buyer and Seller shall each be
responsible for one half of any and all sales, transfer or conveyance Taxes imposed (other than income taxes imposed on Seller) by any and all Governmental Authorities with respect to the transfer of the Membership Interests to Buyer pursuant to
this Agreement (collectively “Transaction Taxes”). 
  
 5.10 Books and Records. 
  
 (a) On reasonable
notice at any time and from time to time after the Closing Date, Buyer shall permit Seller and its successors, and the representatives thereof, at Seller’s sole cost and expense, reasonable access, during normal business hours, to all
correspondence, contracts, agreements and other books and records pertaining to the Company or the Business for purposes of inspection and/or copying, provided however, that Seller or such successors or representatives shall agree to keep such
information confidential pursuant to the terms of a commercially reasonable confidentiality agreement to be entered into at the time of such disclosure, it being understood, however, that such confidentiality agreement shall not prevent or limit
disclosure or use in connection with tax returns and reports and/or the preparation thereof, or the investigation and/or defense of any claim(s) and/or any dispute(s) related to this Agreement or any of the transactions contemplated hereby. Buyer
shall cause all such materials to be preserved for at least seven (7) years after the Closing Date and shall not thereafter destroy or otherwise dispose of any such materials unless it shall have notified Seller and its successors at least six (6)
months before such disposition and given Seller and its successors the opportunity to remove and retain such materials. 
  
 (b) Notwithstanding the foregoing confidentiality requirement, Buyer agrees that, for a period of seven (7) years after the Closing Date, it shall assist
and cooperate with Seller and its successors in collecting and assembling information relating to the operations of the Company prior to the Closing, which customarily has been provided or used, or which may be requested by Seller, in connection
with the preparation of any and all Tax returns, information returns, financial statements, government filings, or other reports required to be filed by or for Seller with any taxing authority and shall make available to Seller and its successors
the services of personnel reasonably necessary to enable any of them or any affiliate or agent of any of them to prepare and file any and all Tax returns, information returns, financial statements, government filings or other reports required to be
filed with any taxing authority and/or to respond to and conduct any and all Tax audits or other Tax determinations or proceedings. 
  

 26 

 5.11 HSR Compliance. Each of the parties hereto shall make all notification and report form
filings, and thereafter shall promptly make any other submissions, with respect to this Agreement and the Transactions required under the HSR Act, including without limitation all supplemental information requested in connection therewith, and such
filings shall specifically request early termination of the waiting period prescribed by the HSR Act. All filing fees under the HSR Act shall be borne and timely paid by Buyer. At Closing, Buyer shall be entitled to deduct from the one-half of such
HSR Fees paid by Buyer in accordance with Section 1.2, above. In the event this Agreement is terminated pursuant to Section 6, below (other than pursuant to Section 6.1(d)), the Company shall reimburse Buyer for one-half of such HSR Fees paid by
Buyer. The parties hereto shall cooperate and consult with each other in connection with the making of such filings, including by providing copies of all such documents to the non-filing party and its advisors a reasonable period of time prior to
filing or the giving of notice. No party to this Agreement shall consent to any voluntary extension of any statutory deadline or waiting period or to any voluntary delay of the consummation of transactions contemplated in this Agreement at the
behest of any Governmental Authority without the consent and agreement of the other party to this Agreement, which consent shall not be unreasonably withheld or delayed. Each party hereto shall promptly inform the other of any material communication
to it from the Federal Trade Commission or the Department of Justice regarding any of the Transactions. If any party hereto or any of its Affiliates receives a request for additional information or documentary material from any such Governmental
Authority with respect to the transactions contemplated by this Agreement, then such party will endeavor in good faith to make, or cause to be made, as soon as reasonably possible, and after consultation with the other party hereto, an appropriate
response in compliance with such request. Buyer will advise Seller promptly in respect of any understanding, undertaking or agreement (oral or written) which Buyer proposes to make or enter into with the Federal Trade Commission, the Department of
Justice or any other Governmental Authority in connection with the transactions contemplated by this Agreement. In furtherance and not in limitation of the foregoing, Buyer shall use its best efforts to promptly resolve such objections, if any, as
may be asserted with respect to any of the transactions contemplated by this Agreement by any Governmental Authority and shall take such steps necessary to avoid or eliminate each impediment asserted or argued by any Governmental Authority so as to
enable the parties to expeditiously close the transactions contemplated by this Agreement. 
  
 5.12 Certain Tax Matters. The following provisions apply to certain tax matters following the Closing Date: 
  
 (a) Seller shall be entitled to prepare or cause to be prepared all Tax Returns for the Company for all periods ending on or prior to the Closing Date
which are filed after the Closing Date. Buyer shall timely file or shall cause the Company to timely file such Tax Returns and pay all Taxes shown as due thereon provided that Buyer shall not be responsible for, and Seller shall pay, all income
Taxes and state income or franchise Taxes of the Company, if any, solely on the transfer of the Membership Interests to Buyer. 
  

 27 

 (b) Buyer shall prepare or cause to be prepared and file or cause to be filed any Tax Returns of the
Company for Tax periods which begin before and end after the Closing Date. Buyer shall permit Seller to review and comment on such Tax Returns prior to filing and shall make such revisions to such Tax Returns as are reasonably requested by Seller.
For purposes of this Agreement, in the case of any Taxes that are imposed on a periodic basis and are payable for a Taxable period that includes (but does not end on) the Closing Date, the portion of such Tax which relates to the portion of such
Taxable period ending on the Closing Date shall (x) in the case of any Taxes other than Taxes based upon or related to income or receipts, be deemed to be the amount of such Tax for the entire Taxable period multiplied by a fraction the numerator of
which is the number of days in the Taxable period ending on the Closing Date and the denominator of which is the number of days in the entire Taxable period, and (y) in the case of any Tax based upon or related to income or receipts be deemed equal
to the amount which would be payable if the relevant Taxable period ended at the time of the Closing. Any credits relating to a Taxable period that begins before and ends after the Closing Date shall be taken into account as though the relevant
Taxable period ended on the Closing Date. All determinations necessary to give effect to the foregoing allocations shall be made in a manner consistent with prior practice of the Company, and in compliance with all applicable laws. 
  
 (c) [INTENTIONALLY DELETED] 
  
 (d) If, after the Closing, any party hereto receives notice of any
assessment, official inquiry, examination or proceeding that could result in an official determination with respect to Taxes due or payable by the Company for any Tax year or period of the Company ending on or before the Closing Date, such party
shall promptly notify the other in writing. 
  
 (e) With respect
to the contest and/or settlement of any issue raised in any assessment, official inquiry, examination or proceeding that could result in an official determination with respect to Taxes due or payable for any Tax year or period of the Company ending
on or before the Closing Date, or any Taxes for which Seller is responsible under Section 5.12(a) hereof, Seller shall have the right, at its own expense, to conduct the contest and/or settlement of such issue. Buyer shall have the right, at
Buyer’s expense, to participate with Seller in the negotiations with respect to any such issue but, notwithstanding such participation, Seller shall control the proceedings and have the final say with respect to such negotiations and any
disposition of such issue. 
  
 (f) After the Closing Date, Buyer
shall be permitted to file an amended Tax Return with respect to the Company for any Tax year or period without obtaining the consent of Seller; provided, however, that the prior written consent of Seller shall be required if any such amended Return
could give rise to a liability of Seller (or of any Person, directly or indirectly, liable for Taxes by reason of the limited liability company status of the Company and/or Seller) (i) to Buyer under this Agreement or (ii) to any Governmental
Authority. 
  

 28 

 (g) After the Closing Date, Seller shall not make any material Tax election or materially change its
method of Tax accounting with respect to the Company. 
  
 5.13
Resignations. At or prior to Closing, Seller shall instruct each of those persons identified on Schedule 5.13 of the Disclosure Schedule who is an officer, or a trustee, custodian or authorized signatory under any bank or other
depository accounts or employee benefit plan, as applicable, of the Company to resign from such position or positions. 
  
 5.14 Excluded Liabilities. Seller shall be responsible for, and shall with reasonable promptness pay all of the Excluded Liabilities not otherwise
paid by Buyer on Seller’s behalf pursuant to Section 1.2 above, except for those Excluded Liabilities that are being contested or subject to further calculation in good faith by Seller. 
  
 5.15 Possible HSR Delay Price Adjustment. In the event that the
waiting period under the HSR Act applicable to the sale of the Membership Interests to Buyer shall not have expired or been terminated on or prior to August 31, 2005 (the “Stated Date”), and such failure to expire or terminate is not due
to a breach by Buyer Section 4.5, Section 5.5 or Section 5.11 hereof, Seller agrees that (a): if the Closing shall occur, the Purchase Price shall (without double counting for any reduction contemplated by clause (ii) of the second sentence of
Section 1.2 hereof) be reduced by sum of (x) any payments of principal made by the Company after the Stated Date and prior to the Closing in respect of indebtedness under the Credit Agreement or any institutional indebtedness for borrowed money
(other than in respect of Capital Leases), and (y) any payments made by the Company after the Stated Date and prior to the Closing of interest or fees in respect of the foregoing (other than in respect of Capital Leases) accrued on or prior to the
Stated Date, it being understood and agreed, however, that the Purchase Price shall not be reduced for any payments in respect of the Credit Agreement and/or any institutional indebtedness for borrowed money on or prior to the Stated Date or in
respect of any payments of any and all interest and fees, in respect of the Credit Agreement and/or any institutional indebtedness for borrowed money, accruing after the Stated Date; and (b) after the Stated Date, until the earlier of the Closing
Date or the date that this Agreement shall been terminated for any reason whatsoever, the Company shall not make any distributions or dividends to Seller in respect of the Membership Interests. 
  
 ARTICLE 6 
  
 Termination 
  
 6.1 Termination. This Agreement may be terminated at any time prior to the Closing: 
  
 (a) by mutual written consent of Seller and Buyer; 
  

 29 

 (b) by Seller, if the Closing does not occur on or before the 60th day after the date of this Agreement
(the “Termination Date”); 
  
 (c) by Buyer, if Seller
shall breach or default in performance of any of its material representations, warranties or obligations under this Agreement (except, in any case, such breaches and defaults which would not reasonably be expected to have a Material Adverse Effect
or to affect materially and adversely the ability of Seller to effect the Closing), and either (i) such breach or default in performance is not capable of being cured or shall not have been cured or waived within fifteen (15) days after written
notice thereof from Buyer to Seller, or (ii) Seller shall not have provided reasonable assurance that such breach or default in performance shall be cured on or before the then scheduled Closing Date; 
  
 (d) by Seller, if Buyer shall breach or default in performance of any of its
material representations, warranties or obligations under this Agreement, and such breach or default in performance is not capable of being cured or shall not have been cured or waived within fifteen (15) days after notice thereof from Seller to
Buyer; 
  
 (e) by Buyer, if any of the material conditions set
forth in Section 2.4 of this Agreement shall not have been fulfilled by the Termination Date (unless the nonfulfillment results from Buyer’s breach of any material representation or warranty or Buyer’s failure to perform any material
covenant or agreement contained in this Agreement); or 
  
 (f) by
Seller, if any of the material conditions set forth in Section 2.5 of this Agreement shall not have been fulfilled by the Termination Date (unless the nonfulfillment results from Seller’s breach of any material representation or warranty or
Seller’s failure to perform any material covenant or agreement contained in this Agreement). 
  
 The party desiring to terminate this Agreement pursuant to this Section 6.1 shall give written notice of such termination to the other party or parties hereto. 
  
 6.2 Effect of Termination. In the event of termination of this
Agreement as provided in Section 6.1 hereof, (a) this Agreement shall immediately become void and there shall be no liability or obligation on the part of Buyer or Seller or their respective officers, directors, stockholders, general or limited
partners, members or Affiliates, except as set forth in Section 6.3 hereof; provided that the provisions of Sections 5.8, 6.3, 8.4, 8.5 and 8.13 of this Agreement shall remain in full force and effect and survive any termination of this
Agreement, and (b) such termination shall relieve each party to this Agreement from all breaches or defaults under this Agreement that occurred prior to such termination other than as provided in said Section 6.3. 
  
 6.3 Remedies. In the event of termination of this Agreement pursuant
to Section 6.1 hereof, any party hereto shall have the right to recover 
  

 30 

 damages sustained by such party as a result of any breach by any other party or parties hereto of any representation,
warranty, covenant or agreement contained in this Agreement; it being further agreed that no party hereto shall be entitled to injunctive relief, specific performance or any other equitable remedy in connection with this Agreement. 
  
 ARTICLE 7 
  
 Indemnification 
  
 7.1 Obligation to Indemnify. 
  
 (a) If the Closing shall occur, and subject to the terms and conditions of this Article 7, Buyer hereby agrees to save, indemnify and hold harmless
Seller, and the respective officers, directors, members, managers, employees, agents, Affiliates and representatives of Seller, and the officers and directors of such members and managers (collectively, with Seller “Seller Indemnitees”)
from and against: 
  
 (i) any loss, liability or damage suffered
or incurred by any Seller Indemnitee(s) by reason of any breach by Buyer of any representation or warranty of Buyer set forth in this Agreement; 
  
 (ii) any loss, liability or damage suffered or incurred by any Seller Indemnitee(s) by reason of the nonfulfillment by Buyer of any covenant or agreement
to be performed or complied with by Buyer under or pursuant to this Agreement or any of the Buyer Documents; 
  
 (iii) any loss, liability or damage suffered or incurred by any Seller Indemnitee(s) arising out of or related to any of the operations, business or
activities of the Company or the Business after the Closing or any liability or obligation of the Company other than Excluded Liabilities, provided that such loss, liability or damage is not the result of a breach by Seller of any representation or
warranty of Seller set forth in this Agreement; and 
  
 (iv) any
actions, suits, proceedings, judgments, costs and expenses, including reasonable attorneys’ fees, incident to any of the foregoing, or incurred in enforcing any of the obligations under this Section 7.1(a). 
  
 (b) If the Closing shall occur, and subject to the terms and conditions of
this Article 7, Seller hereby agrees to save, indemnify and hold harmless Buyer, the Company and Buyer’s officers, directors and stockholders (collectively, with Buyer and the Company, “Buyer Indemnitees”) from and against:

  
 (i) any loss, liability or damage suffered or incurred by
any Buyer Indemnitee(s) by reason of any breach by Seller of any representation or warranty of Seller set forth in this Agreement; 
  

 31 

 (ii) any loss, liability or damage suffered or incurred by Buyer Indemnitee(s) by reason of the
nonfulfillment by Seller of any covenant or agreement to be performed or complied with by Seller under or pursuant to this Agreement; 
  
 (iii) any liability suffered or incurred by any Buyer Indemnitee(s) arising out of claims by third parties against any Buyer Indemnitee(s) for any
Excluded Liabilities; and 
  
 (iv) any actions, suits,
proceedings, judgments, costs and expenses, including reasonable attorneys’ fees, incident to any of the foregoing, or incurred in enforcing any of the obligations under this Section 7.1(b). 
  
 7.2 Procedure Relative to Indemnification. 
  
 (a) In the event that any party hereto shall claim that it is entitled to be
indemnified pursuant to the terms of this Section 7.2, it (the “Claiming Party”) shall so notify the party against which the claim is made (the “Indemnifying Party”) in writing (the “Claims Notice”) of such claim within
a reasonable period of time after the Claiming Party receives notice of any demand, claim or circumstance which, is reasonably likely to give rise to a claim or the commencement of any Proceeding (an “Asserted Liability”) that may
reasonably be expected to result in a claim for indemnification by the Claiming Party against the Indemnifying Party, or such earlier time as is reasonable and appropriate to avoid prejudice to the Indemnifying Party; provided,
however, that failure to give such notification shall not affect the indemnification provided hereunder except to the extent the Indemnifying Party shall have been actually prejudiced as a result of such failure. The Claims Notice shall
describe the Asserted Liability in reasonable detail, and shall indicate the amount (estimated, if necessary) of the losses that have been or are expected to suffered by the Claiming Party; provided, however, that in no event shall the
Claiming Party’s right to recoup losses from the Indemnifying Party be limited to the amount set forth or estimated in the Claims Notice if such notice is reasonable under the circumstances. If such losses are liquidated in amount, the Claims
Notice shall so state and such amount shall be deemed the amount of the claim of the Claiming Party. If the amount is not liquidated, the Claims Notice shall so state and in such event a claim shall be deemed asserted against the Indemnifying Party
on behalf of the Claiming Party, but no payment shall be made on account thereof until the amount of such claim is liquidated and the claim is finally determined. Seller shall be entitled to apply amounts held under the Escrow Agreement to pay
and/or satisfy Losses and/or settlements in respect of claims for which Seller is obligated to indemnify Buyer or any of the Buyer Indemnitees, and Buyer shall cooperate in all reasonable respects and in a timely manner to permit said uses, as
requested by Seller from time to time. 
  

 32 

 (b) The following provisions shall apply to claims of the Claiming Party which are based upon any claim
or Proceeding made, filed or instituted by any third party or by any Governmental Body: 
  
 (i) Upon receipt of a Claims Notice involving an Asserted Liability against, or sought to be collected by a third party from, the Claiming Party, the Indemnifying Party shall have a reasonable period of time (but in
any event in such period of time as is reasonable and appropriate to avoid prejudice to the Claiming Party) within which to notify the Claiming Party whether the Indemnifying Party desires to defend against such Asserted Liability. If the
Indemnifying Party so notifies the Claiming Party that the Indemnifying Party desires to defend against such Asserted Liability, then the Indemnifying Party shall assume the defense of such Asserted Liability with counsel of the Indemnifying
Party’s choice and, the Indemnifying Party will not, as long as it diligently conducts such defense, be liable to the Claiming Party under this Section 7.2 for any fees of other counsel or any other expenses with respect to the defense of such
Asserted Liability, in each case incurred by the Claiming Party in connection with such Asserted Liability. The Claiming Party shall cooperate, at the Indemnifying Party’s expense, in the compromise of, or defense against such Asserted
Liability and may participate in, but not control, such Asserted Liability at its own expense. If the Indemnifying Party is controlling the defense of an Asserted Liability, no compromise or settlement of such Asserted Liability may be effected
without the Claiming Party’s consent (which consent shall not be withheld unreasonably) unless the sole relief provided is monetary damages that are paid or provided for in full by the Indemnifying Party, in which event the Claiming Party shall
promptly consent thereto. If a Claims Notice is given to an Indemnifying Party and the Indemnifying Party does not timely notify the Claiming Party that it does not elects to assume the defense of such Asserted Liability, the Claiming Party will
have the right to conduct a defense of the Asserted Liability in a reasonable and prudent manner and, subject to all of the limitations on indemnification set forth in this Agreement, the Indemnifying Party will be bound by any reasonable and
prudent compromise or settlement made with respect to such Asserted Liability effected by the Claiming Party. 
  
 (ii) Notwithstanding the foregoing, if an Asserted Liability is likely to adversely affect a Claiming Party or its Affiliates other than as a result of
monetary damages for which it would be entitled to indemnification under this Agreement or the Indemnification Agreement, such Claiming Party may, by notice to the Indemnifying Party, have the right to jointly defend, compromise or settle such
Asserted Liability, but the Indemnifying Party will not be bound by any determination of an Asserted Liability so defended or any compromise or settlement effected without its consent (which may not be withheld unreasonably). 
  
 7.3 Survival and Other Matters. Notwithstanding anything to the
contrary contained in this Agreement: 
  
 (a) Each
representation, warranty, indemnity, covenant and agreement of each of the parties hereto shall survive the Closing for the respective applicable period set forth below (each a “Survival Period”). No party shall be entitled to assert any
claim against the other for misrepresentation or breach of warranty, indemnity, covenant or agreement under or pursuant to this Agreement unless the person or entity asserting such claim shall notify the indemnifying party in writing of such claim,
in reasonable detail, during the period ending on the expiration of the 
  

 33 

 applicable Survival Period, in which case the indemnified party’s right to indemnification will survive, but only
with respect to the matters so described in such notice. For the purposes hereof: 
  
 (i) the representations, warranties, indemnities, covenants and agreements of Buyer shall survive for a period of eighteen (18) months from and after the date of Closing, except that the covenants and agreements of
Buyer pursuant to Sections 5.3, 5.7, 5.9, 5.12 and 7.1(a)(iii) hereof, and under the provisions of Section 7.1(a)(iv) to extent related thereto, shall survive the Closing indefinitely; 
  
 (ii) the representations and warranties of Seller set forth in Sections 3.1(d) and (e) shall survive for a period of thirty
six (36) months from and after the Closing Date indefinitely (the “Title and Enabling Representations”); 
  
 (iii) any failure of Seller to satisfy an Excluded Liability or the breach of Sections 3.6(d), 3.16(e), 5.2(g), and 5.12(g) shall survive for a period of
thirty six (36) months from and after the Closing Date. 
  
 (iv)
all other representations, warranties, indemnities, covenants and agreements of Seller shall survive for a period of eighteen (18) months from and after the date of Closing. 
  
 Except for liability under Section 7.1(b)(iii) hereof, and under the provisions of Section 7.1(b)(iv) hereof to the extent relating solely
to said Section 7.1(b)(iii) liability, Seller shall not have any liability under this Article 7 or otherwise under or in connection with this Agreement or for any reason or matter whatsoever, except to the extent that the aggregate amount of
Seller’s liabilities under this Article 7 (but for this Section 7.3(b)) exceeds one million dollars ($1,000,000) (the “Basket Amount”). The maximum aggregate liability that Seller shall have under or in connection with any and
all of this Agreement and the Seller Documents and/or any and all of the transactions contemplated by this Agreement and/or the Seller Documents shall in no event exceed the aggregate sum of fifteen million dollars ($15,000,000), it being further
agreed that, to the extent Seller shall be entitled to the disbursement to it, in connection with the 18 month anniversary of the Closing, of any amount held under the Escrow Agreement said $15,000,000 cap shall be reduced by the amount to which
Seller is so entitled (said $15,000,000, as and when the same is so reduced from time to time, being the “Cap”); it being further agreed that the reimbursement to Buyer pursuant to the Escrow Agreement of amounts held in escrow thereunder
shall be the sole remedy and sole source of recovery of Buyer and the other Buyer Indemnitees for any and all liabilities of Seller whatsoever, it being understood that Buyer shall also have such rights and remedies as are set forth in the
Indemnification Agreement. Notwithstanding the foregoing, the Basket Amount shall not apply to claims based on the Title and Enabling Representations, any claim based on Seller’s failure to satisfy an Excluded Liability, or Seller’s breach
of Sections 3.6(d), 3.16(e), 5.2(g) and 5.11(g). 
  
 (b) Neither
Buyer nor any Buyer Indemnitee shall be entitled to assert any claim or demand for any amount that in the aggregate, together with the 
  

 34 

 aggregate amount of all other claims and demands previously made by Buyer or any Buyer Indemnitee and for which Seller is
or was liable, exceeds the Cap or would exceed the Cap but for this Section 7.3. 
  
 (c) In the event that a misrepresentation or breach of warranty, agreement or covenant is discovered by Buyer after the Closing, or in the event of any other claim relating to or arising under this Agreement or any of
the Seller Documents or any of the transactions contemplated by this Agreement or any of the Seller Documents, the sole and exclusive rights and remedies of Buyer shall be as set forth in, and only to the extent expressly provided for in, this
Article 7, and Buyer shall not be entitled to a rescission of this Agreement. 
  
 (d) In the event that any misrepresentation or breach of warranty, agreement or covenant is known to or discovered by Buyer prior to the Closing, the same shall not affect any right of Buyer to elect not to close the
Transactions, as provided in Section 2.4 hereof, it being understood, however, that if, despite such right to elect not to close, Buyer nevertheless elects to close, Buyer shall be deemed to have waived such misrepresentation or breach and shall
have no claim whatsoever against Seller or any Back-up Indemnitor by reason of such misrepresentation or breach. 
  
 (e) Without intending to limit any right under Section 7.1(a) hereof, no Seller Indemnitee shall have any right to seek contribution from Buyer with
respect to all or part of Seller’s indemnification obligations under this Article 7. Without intending to limit any right under Section 7.1(b) hereof, no Buyer Indemnitee shall have any right to seek contribution from Seller with respect
to all or part of Buyer’s indemnification obligations under this Article 7. 
  
 (f) For purposes of computing any Loss under this Article 7 with respect to any representation, warranty, covenant or agreement that is qualified as to Material Adverse Effect, the amount of the applicable
liability for such Loss shall be the entire Loss arising by reason of the breach of such representation, warranty, covenant or agreement and not merely the amount of such Loss in excess of an amount that constitutes a Material Adverse Effect; it
being understood and agreed, however, that, notwithstanding anything to the contrary contained in this Section 7.3(f), the Basket Amount, the Cap, and all other limitations, conditions and requirements, as to liability, recovery or otherwise, set
forth in this Article 7 shall nevertheless be, and continue to remain, applicable and in full force and effect. 
  
 (g) The effect of any misrepresentation, breach of warranty, covenant or agreement of, or any Claim against, Seller under or in respect of this Agreement
or any of the Seller Documents, or any of the transactions contemplated by this Agreement or any of the Seller Documents, and any Losses resulting therefrom, shall be determined based solely on and limited to actual damages (1) on a net after-tax
basis (that is, with the amount thereof reduced to reflect the tax benefit resulting therefrom), or (2) net of any amounts recovered or reasonably recoverable by or on behalf of Buyer or any affiliate thereof in respect thereof or in connection
therewith 
  

 35 

 under any one or more policies of insurance maintained by any party hereto or any third party (less actual and reasonable
out-of-pocket costs incurred by Buyer Indemnitee(s) to recover the same). With respect to any Claim, or any Losses resulting therefrom, Buyer agrees to use its commercially reasonable efforts to pursue and collect on any recovery available under any
and all insurance policies and acquisition agreements. 
  
 (h) NO
PARTY SHALL BE HELD LIABLE HEREUNDER FOR INCIDENTAL, INDIRECT, SPECIAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR LOST OPPORTUNITY COSTS, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES (it being understood that this
paragraph is not intended to mean that if the Company were liable to a third party (other than Buyer or any Buyer Indemnitee or any Affiliate thereof) for such type of damages that such damages would not constitute Losses for which Seller would be
liable under Section 7(b) hereof to the extent so provided in this Article 7. 
  
 (i) Buyer agrees that the sole liability and obligations of Seller and the sole right, remedy and entitlement of Buyer Indemnitees for any claim with respect to or in connection with this Agreement or any of the
Seller Documents or any of the transactions contemplated by this Agreement or any of the Seller Documents (including without limitation under Environmental Requirements) shall be limited to the entitlement to disbursement pursuant to the Escrow
Agreement of funds held thereunder in respect of indemnification by Seller under this Article 7, and all Buyer Indemnitees hereby waive any and all statutory and common law rights and remedies (including, without limitation, of
indemnification and contribution and/or under any Environmental Requirements) which any of them has or may hereafter have. Under no circumstances shall any direct or indirect member, manager, principal or owner of Seller, or any officer, director,
employee, agent, affiliate, representative, member or manager of any of them, have any liability or obligation under or in connection with this Agreement or any of the transactions contemplated by this Agreement or any of the Seller Documents.

  
 (j) In the event that any dispute shall arise between Buyer
and Seller or any Seller Indemnitee(s) after the Closing in connection with this Agreement or any of the transactions contemplated hereby, including without limitation, any claim by any party for indemnification pursuant to Article 7, the
party prevailing in such dispute shall be entitled to recover on demand (in addition to any recovery awarded by any court) from the other party, an amount equal to all reasonable attorneys’ fees incurred by the prevailing party in connection
with such dispute. The term “prevailing party” shall mean the party whose position in connection with any such dispute as set forth before any court is closest to the final and non-appealable decision rendered by any such court.

  
 (k) All amounts paid pursuant to this Article 7 shall
constitute an adjustment to the Purchase Price for all Tax purposes. 
  
 7.4 Subrogation. Upon making an indemnity payment, including by way of disbursement of funds under the Escrow Agreement, pursuant to this 
  

 36 

 Agreement, the Indemnifying Party will, to the extent of such payment, be subrogated to all rights of the Claiming Party
against any third party in respect of the Losses to which the payment related. Without limiting the generality of any other provision hereof, the Claiming Party and Indemnifying Party will duly execute upon request all instruments reasonably
necessary to evidence and perfect such subrogation rights. 
  
 ARTICLE 8 
  
 Miscellaneous 
  
 8.1 Certain Defined Terms. As used in this Agreement, the following
terms shall have the following meanings: 
  
 “Affiliate” means, with respect to any specified Person, any other Person that controls, is controlled by, or is under common control with, such specified Person. 
  
 “Business” has the meaning set forth in the second “Whereas” clause, hereof. 
  
 “Business Day” means any day that is not a Saturday, a Sunday or
other day on which banks are required or authorized by law to be closed in the State of New York. 
  
 “Buyer Indemnitees” has the meaning set forth in Section 7.1(b) hereof. 
  
 “Buyer Sublease L/C” has the meaning set forth in Section 2.6 hereof. 
  
 “Capital Leases” means those capitalized leases referred to on
Schedule 8.1 of the Disclosure hereof or other capitalized leases effected after the date hereof and not prohibited under this Agreement. 
  
 “Claim” means any action, suit, proceeding, claim, demand or assessment for which an indemnified party is entitled or claimed to be entitled to
indemnification under Article 7 hereto. 
  
 “Closing” has the meaning set forth in Section 2.1(a) hereof. 
  
 “Closing Date” has the meaning set forth in Section 2.1(g) hereof. 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Company Sublease L/C” has the meaning set forth in Section 2.6 hereof. 
  
 “Credit Agreement” means the Amended and Restated Credit Agreement,
dated as of June 10, 2004, by and among the Company, Heller Financial, Inc. (“Agent”) and the Lenders thereunder (the “Lenders”), as the same has been and may be amended from time to time. 
  

 37 

 “Debt Amount” has the meaning set forth in Section 1.2(a) hereof. 
  
 “Disclosure Schedule” has the meaning set forth in Section 3.1(b)
hereof. 
  
 “Employee Plans” has the meaning set forth
in Section 3.16 hereof. 
  
 “Environmental Requirement”
has the meaning set forth in Section 3.19 hereof. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
  
 “ERISA Affiliate” means any trade or business under common control with the Company as determined under regulations issued by the Secretary of
the Treasury under subsections (b) and (c) of Section 414 of the Code. 
  
 “Excluded Liabilities” means: 
  
 (a) all
liabilities of the Company or Seller under the Credit Agreement, or under any instruments or security agreements evidencing or securing the same, entered into by the Company or Seller prior to the Closing or any other institutional indebtedness for
borrowed money of the Company, including all accrued and unpaid interest and fees thereon (but not including any Capital Leases); 
  
 (b) all liabilities of the Company arising under the Terminating Contracts; 
  
 (c) all liabilities of Seller or the Company arising under (i) any and all membership interest, membership interest option
or purchase, and/or equity-based incentive plans or agreements of the Company or Seller in effect prior to the closing (collectively, “Equity Plans”), or (ii) “stay put” bonus obligations in effect prior to the Closing
(collectively, “Stay Put Payments”), in each case to the extent earned or accrued as of the Closing Date or by reason of the Closing; 
  
 (d) all liabilities of Seller or the Company by reason of obligations in respect of brokerage or finder’s fees payable by Seller or, if arising or
accruing prior to the Closing Date, the Company, and legal and accounting fees and disbursements incurred by Seller or, to the extent arising or accruing prior to the Closing Date, the Company, in each case under this clause (d) in respect of the
negotiation, execution and/or Closing of this Agreement; and 
  
 (e) all liabilities of the Company in respect of any “employee benefit plan” (as defined in Section 3(3) of ERISA) maintained or contributed to, or which was maintained or contributed to during the past six (6) years, by any ERISA
Affiliate of the Company. 
  

 38 

 “Financial Statements” has the meaning set forth in Section 3.3 hereof. 
  
 “Further Buyer L/C” has the meaning set forth in Section 2.6
hereof. 
  
 “Further Company L/C” has the meaning set
forth in Section 2.6 hereof. 
  
 “GAAP” means United
Stated generally accepted accounting principles and practices as in effect from time to time and applied consistently throughout the periods involved. 
  
 “Governmental Authority” has the meaning set forth in Section 2.4(d) hereof. 
  
 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and
regulations thereunder. 
  
 “Intellectual Property”
means all rights, title and interest of the Company in and to all U.S. and foreign: (A) patents, and patent applications of any type (including any provisional, non-provisional, continuation, divisional, continuation-in-part, renewals, and reissue)
(collectively, the “Patents”); (B) registered and unregistered copyrights, and all registrations and applications for registrations, in respect thereof (collectively, “Copyrights”); (C) trademarks, service marks, trade names,
logos and general intangibles of like nature, together with all goodwill, and all registrations and applications for registrations, in respect thereof (collectively, “Trademarks”); (D) inventions, technology, trade secrets, know-how,
research and development, and other confidential information, proprietary intellectual property rights of the Company (collectively, the “Trade Secrets”); and (E) computer programs (whether in source code or object code form) and all
documentation in respect thereof (the “Information Technology”), but excluding any licensed Intellectual Property which is not transferable by the licensee or is transferable only upon payment of fees or other charges. 
  
 “IRS” means the United States Internal Revenue Service. 

 
 “Liens” means with respect to any property or asset, all liens,
mortgages, pledges, security interests, conditional sales agreements, purchase options, rights of first refusal or other encumbrances of like nature in respect of such property or asset. 
  
 “Losses” means losses, liabilities, damages, costs and expenses, including reasonable attorneys’ fees
suffered or incurred by Seller Indemnitees or Buyer Indemnitees, as the case may be and covered by and subject to the provisions of Article 7 hereof. 
  
 “Material Adverse Effect” means any change in, or effect on, the Company that is, or is reasonable likely to be, materially adverse to the
results of operations or the financial condition of the Business taken as a whole; provided, however, that such changes shall not include (i) changes in general economic, financial 
  

 39 

 or securities market conditions, (ii) changes or conditions generally affecting educational publishing, (iii) conditions
described in the Disclosure Schedule, (iv) changes resulting from acts of terrorism, acts of war or escalation of hostilities, whether occurring within or outside the United States, or any effect of any such acts or hostilities on general economic
or other conditions, except to the extent such acts disproportionately affect (in a manner that is material and adverse) the Business, (v) changes or effects resulting from any breach by Buyer of this Agreement, (vi) the effect of Excluded
Liabilities, or (vii) changes or effects resulting from the transactions contemplated by this Agreement or the announcement thereof. 
  
 “Material Contracts” has the meaning set forth in Section 3.12 hereof. 
  
 “Permitted Liens” means: Liens disclosed in the Disclosure Schedule, Liens for Taxes, assessments, levies or other
governmental charges not yet due and payable or being contested in good faith, Liens in favor of the Lenders which are to be released at Closing upon the Lenders’ receipt of the Debt Amount pursuant to this Agreement, mechanics’,
workmens’, landlords’, warehousemen’s, bailees’ and other statutory liens (or other liens arising by operation of law) incurred in the ordinary course of business for amounts not in default or being contested in good faith,
deposits or pledges to secure obligations under workmen’s compensation, unemployment insurance, social security or similar laws or regulations, security interests and claims of creditors of consignees with respect to consigned inventory,
deposits or pledges to secure statutory or ordinary course contractual obligations, surety and appeal bonds and other obligations of like nature, rights of lessors and licensors under leases and licenses, and such other imperfections of title, if
any, that, in any case or in the aggregate, are not substantial in amount and do not have a Material Adverse Effect. 
  
 “Person” means any individual, partnership, firm, corporation, limited liability company, association, trust, unincorporated organization or
other entity, as well as any syndicate or group that would be deemed to be a person under Section 13(d)(3) of the Securities Exchange Act of 1934, as amended. 
  

“Purchase Price” has the meaning set forth in Section 1.2(a) hereof. 
  
 “Real Properties” has the meaning set forth in Section 3.7 hereof. 
  
 “Recent Balance Sheet” has the meaning set forth in Section 3.4(a)
hereof. 
  
 “Seller Indemnitees” has the meaning set
forth in Section 7.1(a) hereof. 
  
 “Sublease” means
that certain Sublease, dated as of August 8, 2001, between the Company, as Sublessee, and Delta Education, Inc., as Sublessor, as the same has been or may be amended from time to time. 
  
 “Taxes” has the meaning set forth in Section 3.6 hereof. 
  

 40 

 “Tax Return(s)” has the meaning set forth in Section 3.6 hereof. 
  
 “Terminating Contracts” has the meaning set forth in Section 3.12
hereof. 
  
 “Transactions” means the transactions to be
consummated pursuant to this Agreement. 
  
 8.2 Binding
Agreement. All the terms and provisions of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by, the parties hereto and their respective successors and assigns. 
  
 8.3 Assignment. Neither this Agreement nor any of the rights and
obligations of either party shall be assignable by either party prior to the Closing without the express prior written consent of the other party. No assignment shall relieve the assigning party of its obligations hereunder. 
  
 8.4 Public Announcements and Disclosure. No party to this Agreement
shall make any public announcement in respect of this Agreement or the Transactions or otherwise communicate with any news media without prior notification to the other party. Seller shall not include the Disclosure Schedule (or any portion thereof)
with or as an exhibit to any filing to or with the Securities and Exchange Commission or any other securities authority without the express prior written consent of Seller. 
  
 8.5 Governing Law. This Agreement shall be construed and enforced in accordance with the internal laws of the State
of New York, without regard to principles of conflict of laws. Any litigation arising hereunder or related thereto shall be tried by the United States District Court for the Southern District of New York, provided that if such litigation shall not
be permitted to be tried by such court then such litigation shall be held in the state courts of New York sitting in New York City. Each party irrevocably consents to and confers personal jurisdiction on the United States District Court for the
Southern District of New York, or, if (but only if) the litigation in question shall not be permitted to be tried by such court, on the state courts of New York sitting in New York City, and expressly waives any objection to the venue of such court,
as the case may be, and agrees that service of process may be made on such party by mailing a copy of the pleading or other document by registered or certified mail, return receipt requested, to its or his addresses for the giving of notice provided
for in Section 8.6 hereof, with service being deemed to be made five (5) business days after the giving of such notice. 
  

 41 

 8.6 Notices. All notices shall be in writing and shall be deemed to have been duly given if
delivered personally or when deposited in the mail if mailed via registered or certified mail, return receipt requested, postage prepaid when sent by facsimile transmission actually received by the receiving party, or when sent by prepaid express or
nationally recognized courier or overnight delivery service, to the other party hereto at the following addresses: 
  
 if to Seller, to: 
  
 c/o The Wicks Group of Companies, L.L.C. 
 405
Park Avenue, 7th Floor 
 New York, New York 10022 
 Attn: Mr. Craig B. Klosk 
  
 with
a copy to: 
  
 Golenbock Eiseman Assor Bell & Peskoe LLP

 437 Madison Avenue 
 New York,
New York 10022 
 Attn: Nathan E. Assor, Esq. 
  
 if to Buyer to: 
  
 School Specialty, Inc. 
 W6316 Design Drive

 Appleton, WI 54912-1579 
 Attn:
David J. Vander Zanden, Chief Executive Officer 
  
 with copy to:

  
 Franzoi & Franzoi, S.C. 
 514 Racine Street 
 Menasha, WI 54952

 Attn: Joseph Franzoi IV, Esq. 
  
 or to such other addresses as any such party may designate in writing in accordance with this Section 8.6. 
  
 8.7 Entire Agreement. This Agreement sets forth the entire understanding of the parties hereto in respect of the
subject matter hereof and may not be modified or amended except by a written agreement specifically referring to this Agreement signed by all of the parties hereto. This Agreement supersedes all prior agreements and understandings among the parties
with respect to such subject matter, except that the Confidentiality Agreement dated shall continue to remain in full force and effect prior to the Closing and/or if the Closing shall not occur. 
  
 8.8 Waivers. Any failure by any party to this Agreement to comply with
any of its obligations hereunder may be waived by such party. No waiver shall be effective unless in writing and signed by the party granting such waiver, and no such waiver shall be deemed a waiver of any subsequent breach or default of the same or
similar nature. 
  

 42 

 8.9 Severability. Any provision of this Agreement which is rendered unenforceable by a court of
competent jurisdiction shall be ineffective only to the extent of such prohibition or invalidity and shall not invalidate or otherwise render ineffective any or all of the remaining provisions of this Agreement. 
  
 8.10 Income Tax Position. No party hereto shall take a position for
income tax purposes which is inconsistent with this Agreement. 
  
 8.11 Others. Notwithstanding anything to the contrary contained herein, neither this Agreement nor anything contained herein, express or implied, is intended or shall be construed to or shall confer or impose upon or give to any
person or entity, other than the parties hereto, any rights, remedies, benefits, liabilities or obligations under or by reason of this Agreement or any documents executed in connection with this Agreement. 
  
 8.12 Time of the Essence. Time is of the essence with respect to each
party’s respective obligations under or pursuant to this Agreement. 
  
 8.13 Waiver of Jury Trial. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, any and all right to trial by jury in any legal proceeding arising out of or relating to
this Agreement or any of the Transactions. 
  
 8.14
Drafting. This Agreement has been drafted and negotiated in the State of New York. No party shall be deemed to have drafted this Agreement but rather this Agreement is a collaborative effort of the undersigned parties and their attorneys.

  
 8.15 Counterparts. This Agreement may be executed in
any number of counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement. 
  
 8.16 Headings. The Section and paragraph headings contained herein are for the purposes of convenience only and are not intended to define or limit
the contents of said Sections and paragraphs. 
  
 [SIGNATURES ARE
ON THE FOLLOWING PAGE] 
  
  

 43 

 IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first above written.

  

			
	WICKS LEARNING GROUP, LLC
		
	 By:
	 	 /s/ Craig Klosk

	 Name:
	 	 Craig Klosk

	 Title:
	 	 President

	
	SCHOOL SPECIALTY, INC.
		
	 By:
	 	 /s/ Mary M. Kabacinski

	 Name:
	 	 Mary M. Kabacinski

	 Title:
	 	 CFO

  

 44

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