Document:

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                                                                    Exhibit 10.2

                                December 31, 2002

Fleet National Bank
100 Federal Street
Boston, MA  02110
Attn:    Michael F. O'Neill
         Senior Workout Officer

Bank of America, N.A.
1101 Wootton Parkway
3rd Floor
MD9-978-03-03
Rockville, MD 20852
Attn:    Michael R. Heredia
         Managing Director

         RE:      JUNIOR CREDIT PARTICIPATION AGREEMENT

Gentlemen:

         Reference is made to the Second Amended and Restated Credit Agreement
between, on one hand, Nextera Enterprises, Inc., a Delaware corporation (the
"Company"), and on the other hand, Fleet National Bank, as agent ("Agent") for
itself and the other lenders party thereto (the "Lenders"), dated as of December
31, 2002 (the "Credit Agreement"), together with any other agreements,
supplements, documents and instruments relating thereto or executed in
connection therewith, all as from time to time amended and supplemented
(collectively, the "Credit Documents").

         The undersigned, Knowledge Universe, Inc., a Delaware corporation with
an address at 1250 Fourth Street, Suite 500, Santa Monica, California 90401
("Junior Credit Participant"), has requested that Agent and Lenders sell to
Junior Credit Participant a Junior Credit Participation (as hereinafter defined)
in the advances, loans and other financial accommodations presently outstanding
and which may hereafter be extended by Agent and Lenders to Company, pursuant to
the Credit Documents and all other indebtedness now or hereafter owed by Company
to Agent and Lenders in connection therewith or otherwise, and Agent and Lenders
have agreed to do so, all on the terms and conditions hereinafter set forth.

         In consideration of these premises, the mutual covenants herein
contained and for other valuable consideration, Junior Credit Participant hereby
agrees with Agent and Lenders as follows:

         1. Certain Defined Terms.

                  (a)      "Obligations" as used in this Agreement shall mean
                           and include, without limitation, the advances, loans
                           and other financial accommodations and all other
                           obligations and liabilities now or hereafter owed by
                           Company to Agent and Lenders under the Credit
                           Documents or otherwise, whether direct or indirect
                           and whether fixed or contingent, and shall also
                           include interest or charges accruing after the filing
                           of a bankruptcy petition or similar proceeding,
                           whether or not such interest or charges are
                           recoverable from the Company.
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                  (b)      "Paid in Full", "Payment in Full", "Repaid in Full",
                           or "Repayment in Full" or any similar terms when used
                           in connection with the Obligations shall mean the
                           final indefeasible payment in full of such
                           Obligations in cash or immediately available funds
                           and termination of all lending commitments or, in the
                           case of Obligations consisting of contingent
                           obligations in respect of letters of credit, bankers'
                           acceptances or other reimbursement or payment type
                           guaranties under the Credit Documents, the setting
                           apart of cash sufficient to discharge such portion of
                           the Obligations in an account for the exclusive
                           benefit of the holders thereof, in which such holders
                           shall be granted a first priority perfected security
                           interest which shall have been retained by Agent and
                           Lenders, in each case, for a period of time in excess
                           of all applicable preference or other similar periods
                           under the U.S. Bankruptcy Code and other applicable
                           insolvency laws, state or Federal.

                  (c)      "Permitted Cash Payment Conditions" shall mean, as to
                           each particular Permitted Cash Payment, each of the
                           following:

                           (i)      immediately before and after giving effect
                                    to any Permitted Cash Payment there is no
                                    Default or Event of Default which has
                                    occurred and is continuing under any Credit
                                    Document;

                           (ii)     for any period, such Permitted Cash Payment
                                    shall be payable no sooner than the day that
                                    the subject funds are received by the Agent
                                    in immediately available funds (or, if
                                    later, the day that such funds become
                                    immediately available) and shall be paid
                                    promptly after the Lenders' receipt of any
                                    and all payments of principal and interest
                                    owing to them for the same period;

                           (iii)    the Company shall have delivered to the
                                    Lenders a written certificate (together with
                                    independent written evidence) signed by the
                                    Chief Financial Officer of the Company which
                                    certifies that the Company is in compliance
                                    with the Investment Banking Benchmarks set
                                    forth in Section 5.3 of the Second Amended
                                    and Restated Credit Agreement dated as of
                                    December 31, 2002 and due to be completed on
                                    or before the scheduled date of such
                                    Permitted Cash Payment; and

                           (iv)     the Company shall be in compliance with all
                                    financial and other covenants and provisions
                                    to be performed or observed by it under any
                                    Credit Document immediately before and after
                                    giving effect to any such Permitted Cash
                                    Payment.

                  (d)      Other Terms. Capitalized terms not otherwise defined
                           herein shall have the respective meanings assigned to
                           them in the Credit Documents.

         2. Sale and Purchase of Junior Credit Participation. Junior Credit
Participant hereby agrees to purchase, and does hereby purchase, from Agent and
Lenders and Agent and Lenders hereby agree to sell, and do hereby sell, to
Junior Credit Participant an undivided Junior Credit Participation of Five
Million Dollars ($5,000,000) Dollars (the "Junior Credit Participation") in the
Obligations and in the property, security interests and/or guarantees received
by Agent and Lenders as security for the Obligations (the "Collateral"), and in
all moneys received by Agent and Lenders on account of the Obligations and/or as
proceeds of the Collateral (the "Collections"), except as hereinafter provided.
Receipt of the purchase price of the Junior Credit Participation is acknowledged
by Agent and Lenders. Agent and Lenders have provided to Junior Credit
Participant a Participation Certificate in the form attached hereto as Exhibit
A.

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         3. Application of Proceeds. Agent and Lenders may apply all or any part
of the proceeds of the Collateral, payments received from Company and credits
for Company's account to all or any part of the Obligations and in such order as
Agent and Lenders may elect in Agent's and Lenders' sole and absolute
discretion, except that unless an Event of Default has occurred under the Credit
Agreement or any Credit Document, Agent and Lenders shall not amend Section 5.3
of the Credit Agreement (dealing with distributions upon the occurrence of one
or more Transactions (as defined in the Credit Agreement)) without the prior
written consent of the Junior Credit Participant. Specifically, and without
limitation of the foregoing, Junior Credit Participant acknowledges that Agent
and Lenders may, and intend to, apply the proceeds of the Collateral, in the
event of a liquidation or other disposition of the Collateral after the
occurrence of an Event of Default under the Credit Agreement or any Credit
Document, first to the portion of the Loans not sold to Junior Credit
Participant; accordingly, the effect of this Agreement is to subordinate Junior
Credit Participant's interests in the Obligations to Agent's and Lenders'
interests in all of the Obligations upon the occurrence of an Event of Default,
and Junior Credit Participant acknowledges and agrees to the same.

         4. Freedom of Dealing. It is understood and agreed by Junior Credit
Participant that, in Agent's and Lenders' sole and absolute discretion, Agent
and Lenders may continue to extend additional advances, loans and other
financial accommodations to Company, including, without limitation, after
default and/or commencement and during the continuation of any case under the
U.S. Bankruptcy Code with respect to Company ("Post-Petition Advances") and the
Junior Credit Participation shall be subject and subordinate to such
Post-Petition Advances and in the security therefor on the same terms and
conditions as are set forth herein.

         5. Reservation of Rights. Agent and Lenders shall have the sole right
to manage, perform, modify, restructure, extend, supplement and enforce the
Credit Documents, Obligations and the Collateral, and to waive, discharge,
exercise and enforce all privileges, rights and remedies exercisable or
enforceable by Agent and Lenders thereunder, for the joint benefit of Agent and
Lenders and Junior Credit Participant, in accordance with Agent's and Lenders'
sole and absolute discretion and the exercise of Agent's and Lenders' business
judgment, and without charge to Junior Credit Participant for any costs or
expenses incurred by Agent and Lenders in connection therewith; provided,
however, that Junior Credit Participant shall pay its pro rata share of any
out-of-pocket expenses (including, without limitation, the fees and expenses of
Agent's and Lenders' counsel) of recovery, defense and enforcement of the
Obligations and the Collateral which exceeds the amount recovered from Company
or from the Collateral or otherwise for Company's account ONLY if as to such
expenses any of the following conditions apply: (A) such expenses may be
satisfied out of Collateral liquidations, payments or other recoveries later
received (or reserved for such purpose) on the Obligations in accordance with
Section 3 above, or (B) such expenses were incurred at Junior Credit
Participant's request, or (C) such expenses were incurred on account of any
action or threat of action, or breach of any obligation to the Agent or the
Lenders with respect to the Obligations or the Credit Documents, by Junior
Credit Participant or any affiliate or representative thereof. Agent and Lenders
will use normal prudence and business judgment in handling the collection and
enforcement of the Obligations and realization upon the Collateral, but shall
not be liable to Junior Credit Participant for any action taken or omitted to be
taken in good faith or on the written advice of counsel. With respect to any
actions or inaction taken by Agent and Lenders in good faith or on the written
advice of counsel, Junior Credit Participant expressly releases Agent and
Lenders from any and all liability and responsibility (express or implied), for
any loss, depreciation of or delay in collecting or failing to realize on any
Collateral, the Obligations or any guaranties therefor and for any mistake,
omission or error in judgment in passing upon or accepting any Collateral or in
making examinations or audits or for granting indulgences or extensions to
Company, any account debtor or any guarantor. Junior Credit Participant hereby
pledges, assigns and grants to Agent and Lenders any right it may have to seek
recovery on account of the Junior Credit Participation, including, without
limitation, any right to commence litigation, vote to accept or reject a Chapter
11 plan or to otherwise vote on or direct any part of any bankruptcy case or any
similar proceeding affecting the Obligations.

         6. No Representations or Warranties. Agent and Lenders make no
representation or warranty (express or implied) and shall have no
responsibility, as to the validity, value, enforceability or

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collectibility of the Obligations or the Credit Documents, or as to the title
to, validity, priority, value, perfection or sufficiency of the Collateral, or
any other guarantees or collateral of any kind, or as to the financial condition
of Company or any account debtors. Junior Credit Participant is thoroughly
familiar with and has complete and current information concerning the financial
condition and creditworthiness of Company.

         7. Independent Credit Decision. Junior Credit Participant acknowledges
that it has received and reviewed copies of all of the Credit Documents. Agent
and Lenders may, from time to time, in Agent's and Lenders' discretion and
without notice to or consent of Junior Credit Participant, amend, modify, renew
and/or release in whole or in part the Obligations, the Credit Documents, the
Collateral and any guaranties therefor, as well as extend advances, loans and
other financial accommodations to Company in excess of any formulas under the
Credit Documents, without notice to or the consent of Junior Credit Participant.
Agent and Lenders shall, from time to time, furnish Junior Credit Participant
with copies of such other papers and documents relating to the Obligations and
the Collateral and with statements describing the status of the Obligations and
the Collateral, as Junior Credit Participant may reasonably request, but it is
expressly agreed that Junior Credit Participant shall have no access and no
right to review, examine, or audit Agent's and Lenders' books, records, and
accounts relating to the Obligations or the Company, except for copies of the
Credit Documents as the Junior Credit Participant may request.

         8. Distributions. Interest shall accrue from the date hereof on the
outstanding principal on the Junior Credit Participation at a rate equal to ten
percent (10%) per annum, compounded monthly, based on the calendar year, but in
no case shall the interest rate exceed the maximum rate allowed by law. The
Company may make and the Junior Credit Participant may receive and retain on a
current cash basis payments of accrued interest and principal repayment on the
Junior Credit Participation (the "Permitted Cash Payments") in accordance with
the terms and conditions of this Junior Credit Participation Agreement, so long
as the Permitted Cash Payment Conditions are and shall continue to be satisfied.
Such Permitted Cash Payments shall be in an amount equal to the accrued,
scheduled, mandatory cash payments of principal and interest on the Junior
Credit Participation in accordance with the terms and conditions of this Junior
Credit Participation Agreement, including, without limitation, subordination
terms; provided, however, that Permitted Cash Payments on account of (i)
principal, shall not exceed $73,529 per month at any time; and (ii) interest,
for any period, shall not exceed interest at an annual rate in excess of the
rate of interest actually paid to the Lenders for the same period (without
respect to the rate of interest charged after the occurrence of a Default or
Event of Default under the Credit Documents); and provided, further, that
interest at a greater rate may PIK for later payment in cash after all of the
Loans owing to the Agent and Lenders have been Repaid in Full in cash. The
Company shall not be entitled to make-up payments that are disallowed as a
result of this Section 8; rather, any such disallowed payment shall be paid
directly to the Lenders as a permanent additional prepayment of the
then-outstanding Loans in such manner and order as Agent and Lenders deem
appropriate in their sole and absolute discretion. Notwithstanding the
foregoing, after termination of the Credit Documents and Payment in Full to
Agent and Lenders of Agent's and Lenders' share and the shares of Agent's and
Lenders' other senior participants in all principal and interest on the
Obligations and the other items chargeable to Company's account and due to Agent
and Lenders (including, without limitation, attorneys' fees and legal expenses),
Agent and Lenders remit to Junior Credit Participant any monies or other payment
actually received by them that remain following such Payment in Full on the
Obligations.

         9. Subordinated Status.

                  (a)      Junior Credit Participant's Junior Credit
                           Participation in the Obligations, the Collateral and
                           the Collections is in all respects junior and
                           subordinate to Agent's and Lenders' interests and
                           those of Agent's and Lenders' other senior
                           participants (if any) therein, and accordingly Agent
                           and Lenders and such other senior participants shall
                           first be Repaid in Full all of Agent's and Lenders'
                           respective shares in the Obligations (including,
                           without limitation, indebtedness of Company to Agent
                           and Lenders, Post-Petition Advances and all charges,

                                      -4-
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                           commissions, interest, costs, expenses and attorney's
                           fees chargeable to Company in connection with the
                           Obligations or the Collateral) prior to any repayment
                           of all or any part of the Junior Credit Participation
                           (except only for Permitted Cash Payments on Junior
                           Credit Participant's interest in the Obligations, as
                           provided above).

                  (b)      All Collections received shall be applied first to
                           the payment of all costs and expenses incurred in
                           effecting such Collections (including, without
                           limitation, any costs, expenses, attorneys' fees and
                           charges relating to the Obligations, Collateral and
                           Collections), then to the unpaid balance of all
                           Obligations, in such amount and/or order as Agent and
                           Lenders elect in Agent's and Lenders' sole and
                           absolute discretion, such Collections to be first
                           retained and applied by Agent and Lenders until
                           Repayment in Full of the principal of and interest on
                           Agent's and Lenders' share and the shares of Agent's
                           and Lenders' other senior participants in all such
                           Obligations (except only for Permitted Cash Payments
                           on Junior Credit Participant's interest in the
                           Obligations, as provided above) and, except to the
                           extent any order of any court provides otherwise,
                           after termination of the Credit Documents, any
                           surplus to be remitted to Junior Credit Participant.

                  (c)      The Obligations, the Collateral and the Collections
                           thereon shall be held by Agent and Lenders in Agent's
                           and Lenders' own name, but, to the extent of Junior
                           Credit Participant's junior interest therein, as
                           agent and trustee for Junior Credit Participant and
                           subject to Junior Credit Participant's rights with
                           respect thereto as herein set forth. Agent and
                           Lenders do not assume, have made no warranties and
                           shall not have (except only for the contractual
                           obligations specifically set forth herein) any
                           fiduciary obligations or duties or other liability to
                           Junior Credit Participant for the repayment of the
                           Junior Credit Participation or any interest
                           equivalent thereon.

                  (d)      The Junior Credit Participation may not be re-sold,
                           sub-participated, assigned, pledged or otherwise
                           disposed of by Junior Credit Participant. Junior
                           Credit Participant hereby represents and warrants
                           that no portion of the proceeds of the Obligations
                           has been advanced to or for the account of Junior
                           Credit Participant by Company, that no portion of
                           Junior Credit Participant's payment to Agent and
                           Lenders for the Junior Credit Participation
                           represents, directly or indirectly, any proceeds of
                           the Obligations and that this Agreement is valid,
                           binding and enforceable with respect to Junior Credit
                           Participant.

         10. Assigned Interests. Upon Payment in Full of principal, interest and
charges with respect to Agent's and Lenders' interest and of Agent's and
Lenders' other senior participants in the Obligations and termination of the
Credit Documents, Agent and Lenders agree to assign to Junior Credit Participant
all Collateral for the Obligations and Agent's and Lenders' rights with respect
thereto without representations, warranties or recourse of any kind or nature
whatsoever.

         11. Administrative Charges. Notwithstanding anything to the contrary
contained in this Agreement, Junior Credit Participant shall not share in and
Agent and Lenders shall retain as Agent's and Lenders' sole property and for
Agent's and Lenders' exclusive benefit all interest charges, commissions and
fees and administrative, handling and service charges with respect to the
Obligations and the Collateral (except only for Permitted Cash Payments on
Junior Credit Participant's interest in the Obligations, as provided above).

         12. Waiver of Jury Trial. JUNIOR CREDIT PARTICIPANT, AGENT AND LENDERS
EACH HEREBY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
IN CONNECTION WITH THIS JUNIOR CREDIT PARTICIPATION AGREEMENT AND FURTHER HEREBY
WAIVES ANY RIGHT OF OFFSET OR RIGHT TO INTERPOSE ANY COUNTERCLAIM IN ANY SUCH

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ACTION. EACH OF THE PARTIES HERETO EXPRESSLY SUBMITS IN ADVANCE TO THE
NONEXCLUSIVE JURISDICTION OF THE SUPERIOR COURT OF SUFFOLK COUNTY IN THE
COMMONWEALTH OF MASSACHUSETTS AND THE UNITED STATES DISTRICT COURT FOR THE
DISTRICT OF MASSACHUSETTS IN ANY ACTION OR PROCEEDING RELATING TO ANY CLAIM,
DISPUTE OR OTHER MATTER PERTAINING DIRECTLY OR INDIRECTLY TO THIS JUNIOR CREDIT
PARTICIPATION AGREEMENT.

         13. Notices. All notices hereunder by Agent and Lenders to Junior
Credit Participant shall be deemed given if addressed to Junior Credit
Participant, at its address set forth above and sent by registered or certified
mail, return receipt requested, or sent by telex or telecopy. All notices
hereunder by Junior Credit Participant to Agent and Lenders shall be deemed
given if addressed to Agent and Lenders at Agent's and Lenders' address set
forth above and directed to the attention of Michael F. O'Neill, Senior Workout
Officer, and delivered by certified or registered mail, return receipt
requested, or by telex or telecopy.

         14. Headings. The Section headings in this Junior Credit Participation
Agreement are for convenience of reference only and shall not be deemed to alter
or affect the meaning or interpretation of any of the provisions hereof.

         15. Severability. If any provision of this Junior Credit Participation
Agreement shall for any reason be held to be held to be invalid or
unenforceable, such invalidity or unenforceability shall not affect any other
provision hereof, but this Junior Credit Participation Agreement shall be
construed as if such invalid or unenforceable provision had never been contained
herein.

         16. Effective Date. This Junior Credit Participation Agreement shall be
effective upon the receipt by Agent of a counterpart hereof execution by or on
behalf of Lenders, Junior Credit Participant and Company.

         17. Amendments. This Junior Credit Participation Agreement (a) may not
be amended, modified or terminated orally or by any course of dealing, except an
agreement in writing signed by Agent and Lenders and Junior Credit Participant,
(b) shall remain in full force and effect until all Obligations and
Post-Petition Advances are Paid in Full and the Credit Documents are terminated,
unless, prior thereto, Agent and Lenders, in Agent's and Lenders' discretion,
determine to repurchase the Junior Credit Participation, (c) shall be binding
upon and inure to the benefit of the respective legal representatives,
executors, heirs, administrators, successors and assigns of the parties hereto
and shall be governed by and interpreted in accordance with the laws of the
Commonwealth of Massachusetts, and (d) may be executed in counterparts, all of
which shall constitute a complete agreement.

         IN WITNESS WHEREOF, Junior Credit Participant has executed this
instrument under seal as of this 31st day of December, 2002.

                                         KNOWLEDGE UNIVERSE, INC.,
                                         as Junior Credit Participant

                                         By: /s/ STANLEY E. MARON
                                             ----------------------------------
                                             Name: Stanley E. Maron
                                             Title: Secretary

ACCEPTED AND AGREED TO:

FLEET NATIONAL BANK

By: /s/ M. F. O'NEILL
    ---------------------------------
    Name:
    Title:

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BANK OF AMERICA, N.A.

By: /s/ MICHAEL R. HEREDIA
    ---------------------------------
    Name:
    Title:

CONSENTED TO:

NEXTERA ENTERPRISES, INC.

By: /s/ MICHAEL P. MULDOWNEY
    ---------------------------------
    Name: Michael P. Muldowney
    Title: CFO

                                      -7-<PAGE>

                                                                    EXHIBIT 10.3

                            NEXTERA ENTERPRISES, INC.

                           SECOND AMENDED AND RESTATED
                             SUBORDINATION AGREEMENT

         This Agreement, dated as of December 31, 2002, is among Nextera
Enterprises, Inc., a Delaware corporation (the "Company"), Knowledge Universe
Capital Co. LLC, a Delaware limited liability company ("KU Capital Co.") and
Knowledge Universe, Inc., a Delaware corporation ("KU, Inc."; and together with
KU Capital Co., "Knowledge Universe"), and Fleet National Bank, as agent (the
"Agent") for itself and the other Lenders under the Second Amended and Restated
Credit Agreement (as defined below). The parties agree as follows:

         1. Reference to Second Amended and Restated Credit Agreement; Certain
Rules of Construction; Definitions. Reference is made to the Second Amended and
Restated Credit Agreement dated as of the date hereof, as from time to time in
effect (the "Second Amended and Restated Credit Agreement"), among the Company,
its Subsidiaries from time to time party thereto, the Agent and certain lenders.
Except as the context otherwise explicitly requires, (a) the capitalized term
"Section" refers to sections of this Agreement, (b) references to a particular
Section shall include all subsections thereof and (c) the word "including" shall
be construed as "including without limitation". Capitalized terms defined in the
Second Amended and Restated Credit Agreement and not otherwise defined herein
are used herein with the meanings so defined therein. Certain other capitalized
terms are used in this Agreement as specifically defined below in this Section 1
or as defined elsewhere in this Agreement:

         "Debentures" means (i) the Debenture dated January 5, 1998, executed by
the Company in favor of Nextera Enterprises Holdings, L.L.C. in the original
principal amount of up to $24,970,000, as amended and restated pursuant to the
Amended and Restated Debenture dated December 31, 1998, and further amended
pursuant to the First Amendment to Amended and Restated Debenture dated April
15, 1999 (as assigned to KU Capital Co.); (ii) the Debenture dated December 15,
2000 executed by the Company in favor of KU Capital Co. in the original
principal amount of $10,000,000; and (iii) the Exchange Debenture dated July 23,
2002, executed by the Company in favor of KU, Inc. in the original principal
amount of $21,292,550.

         "Junior Creditor" means Knowledge Universe and each other Person
becoming a party to this Agreement (or to a subordination agreement in
substantially the form of this Agreement) pursuant to Section 9.1.

         "Reorganization" means any voluntary or involuntary dissolution,
winding-up, liquidation, reorganization by judicial proceedings, bankruptcy,
insolvency, receivership or other statutory or common law proceedings, including
any proceeding under the federal Bankruptcy Code or any similar law of any other
jurisdiction, involving the Company or any guarantor of the Senior Indebtedness
or any of their present or future Domestic Subsidiaries or any of their
respective properties or the readjustment of the respective liabilities of the
Company or any such other Person or any assignment for the benefit of creditors
or any marshaling of the assets or liabilities of the Company or any such other
Person.

         "Senior Indebtedness" means:

                           (a) all Credit Obligations, including:

                           (i) The obligation to pay the Loan;
<PAGE>
                           (ii) Any contingent or matured obligations of the
                  Company to the Agent or to any of the Lenders in respect of
                  Letters of Credit or drafts accepted under Letters of Credit,
                  including any obligation of the Company arising under the
                  Second Amended and Restated Credit Agreement or any other
                  Credit Document to reimburse the Agent or any of the Lenders
                  for payments made under Letters of Credit and to deposit with
                  or to pay to the Agent cash in an amount equal to all or part
                  of the Letter of Credit Exposure;

                           (iii) Obligations to pay interest owing under the
                  Second Amended and Restated Credit Agreement or any other
                  Credit Document, whether such obligations arise before or
                  after the institution of any Reorganization and whether or not
                  such obligations are allowed claims in such Reorganization;

                           (iv) Any contingent or matured obligations of the
                  Company to any Lender or any of its Affiliates with respect to
                  Hedge Agreements; and

                           (v) Obligations to pay commitment fees, Letter of
                  Credit fees, Agent's fees and other fees, charges, indemnities
                  and expenses from time to time owing under the Second Amended
                  and Restated Credit Agreement or any other Credit Document,
                  whether such obligations arise before or after the institution
                  of any Reorganization and whether or not such obligations are
                  allowed claims in such Reorganization; and

                           (b) All renewals, extensions and refinancings of the
                  items described in clause (a) above;

provided, however, that, except with the consent of the Junior Creditor, the
principal amount of loans included in the Senior Indebtedness shall not exceed
$90,000,000.

         "Subordinated Indebtedness" means:

                           (a) The principal of and interest on the Debentures
                  and all other Indebtedness of the Company and its Subsidiaries
                  to the Junior Creditor; and

                           (b) All other obligations of the Company and its
                  Subsidiaries to the Junior Creditor with respect to the items
                  in clause (a), whether now existing or hereafter arising,
                  including intercompany advances and any claim against the
                  Company and its Subsidiaries in respect of rescission,
                  indemnification, expenses, damages or otherwise.

         2. Subordination Covenants. Each of the Company and the Junior Creditor
covenants that, so long as any part of the Senior Indebtedness is outstanding
and until the Lenders' obligations to extend credit under each Credit Document
shall have been terminated, each of them will comply with the following
provisions:

                  2.1. Subordination. To the extent and in the manner provided
         in this Agreement, the payment of any Subordinated Indebtedness is and
         shall be expressly subordinated and junior in right of payment to the
         prior payment in full of all Senior Indebtedness, and the Subordinated
         Indebtedness is subordinated as a claim against the Company, any of its
         Subsidiaries, any guarantor of the Senior Indebtedness or any of their
         respective assets to the prior payment in full of the Senior
         Indebtedness, in each case whether such claim is (a) in the ordinary
         course of business or (b) in the event of any Reorganization.

                  2.2. Restricted Payments. The Company and its Subsidiaries
         will not make, and the Junior Creditor will not accept or receive, any
         payment of any Subordinated Indebtedness, whether in cash, securities
         or other property or by way of conversion, exchange or set-off or

                                       2
<PAGE>
         otherwise, and no such payment shall become due; provided, however,
         that the Company may make Distributions of PIK Interest on the
         Debentures in accordance with their terms.

                  2.3. Reorganization. In the event of any Reorganization, all
         Senior Indebtedness shall first be paid in full before any payment is
         made on account of any Subordinated Indebtedness. In any proceedings
         seeking to effect a Reorganization any payment or distribution of any
         kind or character, whether in cash or property or securities, which may
         be payable or deliverable in respect of any such Subordinated
         Indebtedness shall be paid or delivered directly to the Agent for
         application to payment of the Senior Indebtedness, unless and until all
         Senior Indebtedness shall have been paid in full.

                  2.4. Specific Powers in Reorganization. In any proceedings
         with respect to any Reorganization, the Junior Creditor irrevocably
         authorizes the Agent:

                           (a) To prove and enforce any claims on the
                  Subordinated Indebtedness owed by the Company and its
                  Subsidiaries to the Junior Creditor either in the name of the
                  Agent or in the name of the Junior Creditor as the
                  attorney-in-fact of the Junior Creditor;

                           (b) To vote claims comprising any such Subordinated
                  Indebtedness and to accept or reject on behalf of the Junior
                  Creditor any plan proposed in connection with any such
                  Reorganization;

                           (c) To accept and execute receipts for any payment or
                  distribution made with respect to any such Subordinated
                  Indebtedness and to apply such payment or distribution to the
                  payment of the Senior Indebtedness; and

                           (d) To take any action and to execute any instruments
                  necessary to effectuate the foregoing, either in the name of
                  the Agent or in the name of the Junior Creditor as the
                  attorney-in-fact of the Junior Creditor.

                  2.5. Payments Held in Trust. If, notwithstanding the
         foregoing, any payment or distribution of the assets of the Company or
         any of its present or future Subsidiaries of any kind or character
         (other than payments permitted by Section 2.2) shall be received, by
         way of set-off or otherwise, by the Junior Creditor before all Senior
         Indebtedness is paid in full and before the Lenders' obligations to
         extend credit under all Credit Documents shall have been terminated,
         such payment or distribution and the amount of any such set-off shall
         be held in trust by the Junior Creditor and promptly paid over to the
         Agent (who shall have the right to convert any such assets into cash)
         for application to the payment of Senior Indebtedness until all such
         Senior Indebtedness shall have been paid in full, after giving effect
         to any concurrent payment or distribution to the holders of Senior
         Indebtedness, and the Lenders' obligations to extend credit under all
         Credit Documents shall have been terminated.

                  2.6. Restrictions on Acceleration. Notwithstanding any
         contrary provision of any Subordinated Indebtedness or of any agreement
         or instrument relating thereto, (a) no Subordinated Indebtedness (other
         than payments permitted by Section 2.2) shall become or be declared to
         be due and payable prior to the date on which the Senior Indebtedness
         becomes or is declared to be due and payable and (b) if any Senior
         Indebtedness shall have become or been declared to be due and payable
         prior to its stated maturity, the Subordinated Indebtedness shall
         become immediately due and payable.

                  2.7. Restrictions on Remedies. The Junior Creditor shall not,
         without the Agent's prior written consent, institute proceedings to
         enforce any Subordinated Indebtedness, notwithstanding any provision to
         the contrary contained in any Subordinated Indebtedness or in any
         agreement or instrument relating thereto. Without limiting the
         generality of the foregoing sentence, the Junior Creditor shall not,
         without the Agent's prior written consent, commence or

                                       3
<PAGE>
         join with any other creditor of the Company and its Subsidiaries in
         commencing any proceeding against the Company and its Subsidiaries
         seeking to effect a Reorganization.

                  2.8. No Collateral. The Company and its Subsidiaries shall not
         grant, and the Junior Creditor shall not demand, accept or receive, any
         collateral, direct or indirect, for any Subordinated Indebtedness.

                  2.9. No Other Subordination. The Junior Creditor represents
         that the Subordinated Indebtedness is not subordinated to any
         obligations other than the Senior Indebtedness and covenants that it
         will not subordinate the Subordinated Indebtedness to any other
         obligations except with the prior written consent of the Agent.

                  2.10. Payment in Full. For the purposes of this Agreement, no
         Senior Indebtedness shall be deemed to have been paid in full unless
         the holder thereof shall have received cash equal to the amount thereof
         then outstanding; provided, however, that if the Lenders are required
         by reason of a judgment or order of any court or administrative
         authority having competent jurisdiction to repay any amounts or
         property received by the Lenders on account of the Credit Obligations
         and the Lenders repay or return such amounts or property, then the
         subordination provisions of this Agreement shall be reinstated
         retroactively with respect to the amounts so repaid or property so
         returned as if such amounts or property had never been received by the
         Lenders, notwithstanding any termination thereof or the cancellation of
         any instrument or agreement evidencing any of the Credit Obligations.

         3. Effect of Provisions; Subrogation.

                  3.1. Effect of Provisions; Relative Rights. The provisions
         hereof as to subordination are solely for the purpose of defining the
         relative rights of the holders of Senior Indebtedness on one hand and
         the Junior Creditor on the other hand, and such provisions shall not
         impair as between the Company and the Junior Creditor the obligation of
         the Company, which is unconditional and absolute, to pay to the Junior
         Creditor the principal of any Subordinated Indebtedness owed by the
         Company to the Junior Creditor and interest thereon, and all other
         amounts in respect thereof, nor shall any such provisions prevent the
         Junior Creditor from exercising all remedies otherwise permitted by
         applicable law or under the terms of such Subordinated Indebtedness
         upon the occurrence and during the continuance of a default thereunder,
         except to the extent prohibited by this Agreement.

                  3.2. Subrogation. When all Senior Indebtedness then
         outstanding has been paid in full and the Lenders' obligations to
         extend credit under all Credit Documents have been terminated, the
         Junior Creditor shall be subrogated to the rights of the holders of
         Senior Indebtedness to receive payments or distributions of assets of
         the Company or any of its Subsidiaries that would be deemed payable on
         the Senior Indebtedness until the Subordinated Indebtedness shall be
         paid in full. For the purposes of such subrogation, no payments or
         distributions to the holders of Senior Indebtedness of any cash,
         property or securities to which the Junior Creditor would be entitled
         except for the provisions of this Agreement, and no payment over
         pursuant to the provisions of this Agreement to the holders of Senior
         Indebtedness by the Junior Creditor, shall, as between the Company or
         any of its Subsidiaries and their creditors other than the holders of
         Senior Indebtedness, on one hand, and the Junior Creditor, on the other
         hand, be deemed to be a payment by the Company or any of its
         Subsidiaries to or on account of Senior Indebtedness.

         4. Legend, etc. Each of the Company and the Junior Creditor covenants
to cause each instrument or certificate representing or evidencing any of the
Subordinated Indebtedness to have affixed upon it a legend substantially as
follows:

                  "This instrument is subject to the Second Amended and Restated
                  Subordination Agreement dated as of December 31, 2002, as from

                                       4
<PAGE>
                  time to time in effect, among the maker, the payee and Fleet
                  National Bank, as Agent, which, among other things,
                  subordinates the obligations of the obligor hereunder to the
                  prior payment of certain obligations of the obligor to the
                  holders of Senior Indebtedness as defined therein."

The Company shall cause any financial statement describing or listing or
otherwise reflecting the existence of any Indebtedness included in the
Subordinated Indebtedness to indicate clearly the subordinated character
thereof.

         5. Further Assurances. Each of the Company and the Junior Creditor
covenants to execute and deliver to the Agent such further instruments and to
take such further action as the Agent may at any time or times reasonably
request in order to carry out the provisions and intent of this Agreement.

         6. Representations and Warranties. In order to induce the Lenders to
extend credit under the Second Amended and Restated Credit Agreement, the
Company represents and warrants that:

                  6.1. Organization and Business. The Company is a duly
         organized and validly existing entity, in good standing under the laws
         of the jurisdiction of its organization, with all power and authority
         necessary (a) to enter into and perform this Agreement and each other
         Credit Document to which it is a party and (b) to own its properties
         and carry on the business now conducted or proposed to be conducted by
         it. Certified copies of the Charter and By-laws of the Company have
         been previously delivered to the Agent and are correct and complete.

                  6.2. Authorization and Enforceability. The Company has taken
         all corporate action required to execute, deliver and perform this
         Agreement and each other Credit Document to which it is a party. Each
         of this Agreement and each other Credit Document to which the Company
         is party constitutes the legal, valid and binding obligation of the
         Company, enforceable against the Company in accordance with its terms.

                  6.3. No Legal Obstacle to Agreements. Neither the execution
         and delivery of this Agreement or any other Credit Document, nor the
         consummation of any transaction referred to in or contemplated by this
         Agreement or any other Credit Document, nor the fulfillment of the
         terms hereof or thereof or of any other agreement, instrument, deed or
         lease referred to in this Agreement or any other Credit Document, has
         constituted or resulted, or will constitute or result, in:

                           (a) Any breach or termination of the provisions of
                  any agreement, instrument, deed or lease to which the Company
                  is a party or by which it is bound, or of the Charter or
                  By-laws of the Company; or

                           (b) The violation of any law, statute, judgment,
                  decree or governmental order, rule or regulation applicable to
                  the Company.

         No approval, authorization or other action by, or declaration to or
         filing with, any governmental or administrative authority, or any other
         Person is required to be obtained or made by the Company in connection
         with the execution, delivery and performance of this Agreement or any
         other Credit Document to which it is party or the transactions
         contemplated hereby or thereby.

                  6.4. Litigation. No litigation, at law or in equity, or any
         proceeding before any court, board or other governmental or
         administrative agency or any arbitrator is pending or, to the knowledge
         of the Company, threatened which may involve any material risk of any
         final judgment, order or liability which, after giving effect to any
         applicable insurance, has resulted, or creates a material risk of
         resulting, in any material adverse change in the Company's business,
         assets, financial condition, income or prospects or which seeks to
         enjoin the consummation, or which

                                       5
<PAGE>
         questions the validity, of any of the transactions contemplated by this
         Agreement or any other Credit Document. No judgment, decree or order of
         any court, board or other governmental or administrative agency or any
         arbitrator has been issued against or binds the Company which has
         resulted, or creates a material risk of resulting, in any material
         adverse change in the Company's business, assets, financial condition,
         income or prospects.

         7. Information Regarding the Company. The Junior Creditor expressly
acknowledges and agrees that it has made such investigation as it deems
desirable of the risks undertaken by it in entering into this Agreement and is
fully satisfied that it understands all such risks. The Junior Creditor waives
any obligation which may now or hereafter exist on the part of the Agent or any
holder of any Senior Indebtedness to inform the Junior Creditor of the risks
being undertaken by entering into this Agreement or of any changes in such risks
and the Junior Creditor undertakes to keep itself informed of such risks and any
changes therein. The Junior Creditor expressly waives (except to the extent
prohibited by applicable law which cannot be waived) any duty which may now or
hereafter exist on the part of the Agent or any holder of any Senior
Indebtedness to disclose to the Junior Creditor any matter related to the
business, operations, character, collateral, credit, condition (financial or
otherwise), income or prospects of the Company or its Affiliates, properties or
management, whether now or hereafter known by any Lender. The Junior Creditor
represents, warrants and agrees that it assumes sole responsibility for
obtaining from the Company and its Affiliates all information concerning the
Second Amended and Restated Credit Agreement and all other Credit Documents and
all other information as to the Company and its Subsidiaries and their
respective Affiliates, properties or management or anything relating to any of
the above as it deems necessary or desirable.

         8. Continuing Agreement; Lender Powers; etc.

                  8.1. Continuing Agreement, etc. This Agreement shall be a
         continuing agreement, shall be irrevocable by the Junior Creditor and
         shall remain in full force and effect until the payment in full of the
         Senior Indebtedness at a time when the Lender's obligations to extend
         credit under all Credit Documents shall have been terminated.

                  8.2. Consent to Second Amended and Restated Credit Agreement.
         The Junior Creditor acknowledges receipt from the Company of a correct
         and complete copy of the Second Amended and Restated Credit Agreement
         as in effect as of the date hereof, and consents to all of the
         provisions of the Second Amended and Restated Credit Agreement as in
         effect as of such date.

                  8.3. Power to Modify Second Amended and Restated Credit
         Agreement, etc. To the extent permitted by applicable law that cannot
         be waived, the Junior Creditor grants the Agent and the Lenders full
         power, in their sole discretion, without notice to or consent by the
         Junior Creditor and without in any way affecting the subordination of
         the Subordinated Indebtedness provided in this Agreement:

                           (a) To waive compliance with any Default under, and
                  to consent to any amendment or change of any terms of, the
                  Second Amended and Restated Credit Agreement, any other Credit
                  Document, the Credit Security, the Credit Obligations or any
                  Guarantee thereof (each as from time to time in effect);

                           (b) To grant one or more extensions or renewals of
                  the Credit Obligations (for any duration), and any other
                  indulgence with respect thereto and to effect any total or
                  partial release (by operation of law or otherwise), discharge,
                  compromise or settlement with respect to the obligations of
                  the Company in respect of the Credit Obligations, whether or
                  not rights against the Company under this Agreement are
                  reserved in connection therewith;

                           (c) To take security in any form for the Credit
                  Obligations and to consent to the addition to or the
                  substitution, exchange, release, failure to perfect or any
                  other

                                       6
<PAGE>
                  disposition of, and to deal in any other manner with, any
                  property which may from time to time secure the Credit
                  Obligations whether or not the property, if any, received upon
                  the exercise of such power shall be of a character or value
                  the same as or different from the character or value of any
                  property disposed of, and to obtain, modify or release any
                  present or future Guarantees of the Credit Obligations and to
                  proceed against any of the Credit Security or such Guarantees
                  in any order;

                           (d) To extend credit under the Second Amended and
                  Restated Credit Agreement or any other Credit Document, or
                  otherwise, in such amount as the Lenders may determine,
                  whether for a greater or lesser amount than is presently in
                  effect, even though the financial condition of the Company and
                  its Subsidiaries may have deteriorated since the date hereof;
                  and

                           (e) To collect or liquidate or realize any of the
                  Credit Obligations or the Credit Security in any manner or to
                  refrain from collecting or liquidating or realizing upon any
                  of the Credit Obligations or the Credit Security.

                  8.4. No Impairment by Company, Lenders, etc. No right of the
         Lenders or any present or future holder of any Senior Indebtedness
         shall at any time be prejudiced or impaired by any conduct on the part
         of the Company, including any noncompliance by the Company with the
         terms of this Agreement, or by any conduct, in good faith, by any
         Lender or any such holder, regardless of any knowledge thereof which
         any Lender or any such holder may have or otherwise be charged with.

                  8.5. Specific Performance. The Agent is authorized to demand
         specific performance of this Agreement at any time when the Company or
         the Junior Creditor shall have failed to comply with any provision
         hereof applicable to it, and each of them irrevocably waives any
         defense based on the adequacy of a remedy at law which might be
         asserted as a bar to the remedy of specific performance hereof in
         action brought therefore by the Lenders.

                  8.6. Restriction on Company Authorization. The Agent
         acknowledges that the Company is not authorized, without the consent of
         Knowledge Universe, (a) to increase the maximum principal amount of
         loans outstanding under the Second Amended and Restated Credit
         Agreement to an amount above $90,000,000 or (b) to amend, or agree to
         an amendment of, Section 7.1.4 of the Second Amended and Restated
         Credit Agreement that would reduce amounts permitted to be paid by the
         Company thereunder.

         9. Transfers; Successors and Assigns.

                  9.1. Transfers. The Junior Creditor will not sell, assign,
         transfer or otherwise dispose of any Subordinated Indebtedness except
         to another Person which shall have entered into this Agreement or
         another agreement with the Agent, in a form satisfactory to the Agent,
         providing for subordination of such Subordinated Indebtedness to the
         prior payment of the Credit Obligations on the terms provided in this
         Agreement.

                  9.2. Successors and Assigns. The provisions of this Agreement
         shall inure to the benefit of the Lenders and their successors and
         assigns and shall be binding upon each of the Company and the Junior
         Creditor and their respective successors and assigns. The Company and
         the Junior Creditor may not assign their rights or obligations under
         this Agreement except to the extent provided in Section 9.1

         10. Notices. Any notice or other communication in connection with this
Agreement shall be deemed to be given if given in writing (including telex,
telecopy or similar teletransmission) addressed as provided below (or to the
addressee at such other address as the addressee shall have specified by notice
actually received by the addressor), and if either (a) actually delivered in
fully legible form to such

                                       7
<PAGE>
address (evidence in the case of a telex by receipt of the correct answerback)
or (b) in the case of a letter, five business days shall have elapsed after the
same shall have been deposited in the United States mails, with first-class
postage prepaid and registered or certified.

         If to the Company, to it at 4 Cambridge Center, Cambridge, MA 02142, to
the attention of its chief financial officer.

         If to Knowledge Universe, to it at 844 Moraga Drive, Los Angeles,
California 90049, to the attention of Stanley Maron. If to any other Junior
Creditor, to such Junior Creditor at such address as such Junior Creditor shall
give written notice to the Agent.

         If to the Agent, to it at 100 Federal Street, Boston, Massachusetts
02110, to the attention of the Managed Assets Division.

         11. Venue; Service of Process. Each of the Company, the Junior Creditor
and the Agent:

                           (a) Irrevocably submits to the nonexclusive
                  jurisdiction of the state courts of The Commonwealth of
                  Massachusetts and to the nonexclusive jurisdiction of the
                  United States District Court for the District of Massachusetts
                  for the purpose of any suit, action or other proceeding
                  arising out of or based upon this Agreement or any other
                  Credit Document or the subject matter hereof or thereof;

                           (b) Waives to the extent not prohibited by applicable
                  law, and agrees not to assert, by way of motion, as a defense
                  or otherwise, in any such proceeding brought in any of the
                  above-named courts, any claim that it is not subject
                  personally to the jurisdiction of such court, that its
                  property is exempt or immune from attachment or execution,
                  that such proceeding is brought in an inconvenient forum, that
                  the venue of any such proceeding is improper, or that this
                  Agreement or any other Credit Document, or the subject matter
                  hereof or thereof, may not be enforced in or by such court;
                  and

                           (c) Consents to service of process in any such
                  proceeding in any manner permitted by Chapter 223A of the
                  General Laws of The Commonwealth of Massachusetts and agrees
                  that service of process by registered or certified mail,
                  return receipt requested, at its address specified in or
                  pursuant to Section 10 is reasonably calculated to give actual
                  notice.

         12. WAIVER OF JURY TRIAL. TO THE EXTENT NOT PROHIBITED BY APPLICABLE
LAW WHICH CANNOT BE WAIVED, EACH OF THE AGENT, THE COMPANY AND THE JUNIOR
CREDITOR WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF,
DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF
ANY ISSUE, CLAIM, DEMAND OR ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT,
THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT OR ANY OTHER CREDIT DOCUMENT OR
THE SUBJECT MATTER HEREOF OR THEREOF OR ANY CREDIT OBLIGATION OR IN ANY WAY
CONNECTED WITH THE DEALINGS OF THE AGENT, THE COMPANY OR THE JUNIOR CREDITOR IN
CONNECTION WITH ANY OF THE ABOVE, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING AND WHETHER IN CONTRACT OR TORT OR OTHERWISE. Each of the Company and
the Junior Creditor acknowledges that it has been informed by the Agent that the
provisions of this Section 12 constitute a material inducement upon which each
of the Lenders has relied, is relying and will rely in entering into the Second
Amended and Restated Credit Agreement and any other Credit Document, and that it
has reviewed the provisions of this Section 12 with its counsel. The Agent, the
Company or the Junior Creditor may file an original counterpart or a copy of
this Section 12

                                       8
<PAGE>
with any court as written evidence of the consent of the Agent, the Company and
the Junior Creditor to the waiver to trial by jury.

         13. General. All covenants, agreements, representations and warranties
made in this Agreement or any other Credit Document or in certificates delivered
pursuant hereto or thereto shall be deemed to have been relied on by each
Lender, notwithstanding any investigation made by the Agent on its behalf, and
shall survive the execution and delivery to the Lenders hereof and thereof. The
invalidity or unenforceability of any provision hereof shall not affect the
validity or enforceability of any other provision hereof, and any invalid or
unenforceable provision shall be modified so as to be enforced to the maximum
extent of its validity or enforceability. The headings in this Agreement are for
convenience of reference only and shall not limit, alter or otherwise affect the
meaning hereof. This Agreement and the other Credit Documents constitute the
entire understanding of the parties with respect to the subject matter hereof
and thereof and supersede all prior and current understandings and agreements,
whether written or oral. This Agreement is a Credit Document and may be executed
in any number of counterparts, which together shall constitute one instrument.
This Agreement shall be governed by and construed in accordance with the laws
(other than the conflict of laws rules) of The Commonwealth of Massachusetts.

                         [REMAINDER OF PAGE LEFT BLANK]

                                       9
<PAGE>
         Each of the undersigned has caused this Agreement to be executed and
delivered by its duly authorized officer as an agreement under seal as of the
date first written above.

                                        NEXTERA ENTERPRISES, INC.

                                        By:  /s/ MICHAEL P. MULDOWNEY
                                           ------------------------------------
                                             Name: Michael P. Muldowney
                                             Title: CFO

                                        FLEET NATIONAL BANK,
                                          As Agent under the Second Amended and
                                          Restated Credit Agreement

                                        By:  /s/ M. F. O'NEILL
                                           ------------------------------------
                                             Name:
                                             Title:

                                        KNOWLEDGE UNIVERSE CAPITAL CO. LLC

                                        By:  /s/ STANLEY E. MARON
                                           ------------------------------------
                                             Name: Stanley E. Maron
                                             Title: Secretary

                                        KNOWLEDGE UNIVERSE, INC.

                                        By:  /s/ STANLEY E. MARON
                                           ------------------------------------
                                             Name: Stanley E. Maron
                                             Title: Secretary

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