Document:

EX-10.32

 Exhibit 10.32 
 AMENDMENT NO. 3 TO 
 DEBTOR-IN-POSSESSION CREDIT AGREEMENT 

This AMENDMENT NO. 3 TO DEBTOR-IN-POSSESSION CREDIT AGREEMENT (this “Amendment”) is entered into as of April 23,
2013, by and among WELLS FARGO CAPITAL FINANCE, LLC, a Delaware limited liability company, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, “Agent”), SCHOOL
SPECIALTY, INC., a Wisconsin corporation (“Parent”), CLASSROOMDIRECT.COM, LLC, a Delaware limited liability company (“ClassroomDirect”), SPORTIME, LLC, a Delaware limited liability company
(“Sportime”), DELTA EDUCATION, LLC, a Delaware limited liability company (“Delta Education”), PREMIER AGENDAS, INC., a Washington corporation (“Premier Agendas”), CHILDCRAFT EDUCATION CORP., a New
York corporation (“Childcraft”), BIRD-IN-HAND WOODWORKS, INC., a New Jersey corporation (“Bird-In-Hand”), and CALIFONE INTERNATIONAL, INC., a Delaware corporation (“Califone”; Parent,
ClassroomDirect, Sportime, Delta Education, Premier Agendas, Childcraft, Bird-In-Hand and Califone are collectively “Borrowers” and each a “Borrower”). 

R E C I T A L S: 
 WHEREAS, on January 28, 2013 (the “Filing Date”), Borrowers and Guarantors (other than Select Agendas, Corp.) filed voluntary petitions for relief under chapter 11 of the Bankruptcy
Code (as hereinafter defined) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”); 
 WHEREAS, Agent and Borrowers have entered into certain financing arrangements pursuant to that certain Debtor-in-Possession Credit Agreement, dated as of January 31, 2013 by and among Borrowers, the
financial institutions from time to time party thereto (collectively, the “Lenders” and each a “Lender”) and Agent (as amended by that certain Amendment No. 1 to Debtor-in-Possession Credit Agreement, dated as
of February 27, 2013 and that certain Amendment No. 2 to Debtor-in-Possession Credit Agreement, dated as of April 12, 2013, and as further amended hereby, and as the same may have heretofore been or may hereafter be further amended,
modified, supplemented, extended, renewed, restated or replaced (the “Credit Agreement”)); 
 WHEREAS,
Borrowers have entered into that certain Senior Secured Super Priority Debtor-in-Possession Credit Agreement, dated as of February 27, 2013 (as amended by that certain Amendment No. 1 to Senior Secured Super Priority Debtor-in-Possession
Credit Agreement, dated as of April 11, 2013, and that certain Amendment No. 2 to Senior Secured Super Priority Debtor-in-Possession Credit Agreement, dated as of May 3, 2013 (the “Bondholder Amendment”) among
Borrowers, Select Agendas, Corp., Frey Scientific, Inc., Sax Arts & Crafts, Inc., U.S. Bank National Association, and the lenders from time to time party thereto; and 

 WHEREAS, Borrower has requested that Agent and Lenders agree to amend the Credit Agreement
in certain respects as more fully described herein, and Agent and Lenders are willing to do so on the terms and subject to the conditions set forth herein. 
 NOW, THEREFORE, in consideration of the foregoing, and the respective agreements, warranties and covenants contained herein, the parties hereto agree as follows: 

SECTION 1. DEFINITIONS 
 1.1. Interpretation. All capitalized terms used herein (including the recitals hereto) shall have the respective meanings ascribed thereto in the Credit Agreement unless otherwise defined herein.

 SECTION 2. ACKNOWLEDGMENTS 
 2.1. Binding Effect of Documents. Each Borrower hereby acknowledges, confirms and agrees that: (a) each of the Credit Agreement, Existing Loan Agreement, the Loan Documents and Existing Loan
Documents to which it is a party has been duly executed and delivered to Agent by such Borrower, and each is and shall remain in full force and effect as of the date hereof except as modified pursuant hereto, (b) the agreements and obligations
of such Borrower contained in such documents and in this Agreement constitute the legal, valid and binding Obligations of such Borrower, enforceable against it in accordance with their respective terms, and such Borrower has no valid defense to the
enforcement of such Obligations, and (c) Agent and Lenders are and shall be entitled to the rights, remedies and benefits provided for under the Credit Agreement, the Existing Loan Agreement, the Loan Documents and the Existing Loan Documents
and applicable law. 
 SECTION 3. AMENDMENTS 
 In reliance upon the representations and warranties of the Loan Parties set forth in Section 4 below and subject to the conditions to effectiveness set forth in Section 5 below,
effective as of the date hereof, the Credit Agreement is hereby amended as follows: 
 (a) The last paragraph of
Section 2.1(a) of the Credit Agreement is hereby amended by adding the following sentence to the end thereof: 
 “Until such time that Borrowers have delivered the Exit Financing Commitment Letters to Agent, the Revolver Usage may not exceed $55,000,000 (or such greater amount as may be agreed to by all Lenders
in writing). 
 Subject to the conditions set forth in this Agreement and other Loan Documents, from and after
June 3, 2013 until and including June 7, 2013, Borrowers may continue to request Revolving Loans from Lenders (provided that the Revolver Usage may not exceed $68,000,000 limit set forth in the Budget during such time) if, on or before any
requests for Revolving Loans are made, on June 3, 2013: 

 (a) the Exit Financing Commitment Letter(s) remain in full force and effect
and the Bondholder DIP Credit Agreement (as amended by that certain Amendment No. 2 to Senior Secured Super Priority Debtor-in-Possession Credit Agreement, dated as of May 3, 2013) remains in full force and effect, 

(b) all conditions precedent to the occurrence of the Effective Date (as defined in the Plan) have been satisfied or
waived other than (i) the mere passage of time for the Confirmation Order (as defined in and required under the Plan) to have become a Final Order (as defined in and required under the Plan) and (ii) the closing of the Exit Facilities (as
defined in the Plan and as contemplated by Section VIII.B.(6) of the Plan), 
 (c) Borrowers deliver to Agent a
certification in form and substance reasonably satisfactory to Co-Collateral Agents that (i) the credit agreement evidencing the ABL Exit Facility, the credit agreement evidencing the Term Loan Exit Facility, and the intercreditor agreement
among the lenders for such facilities are each in substantially final form, and (ii) in Borrowers’ good faith determination after diligent inquiry, Borrowers have no knowledge or any reason to expect that any conditions to closing and
funding of the initial loans under the Exit Facilities cannot or will not be satisfied or waived on or before June 7, 2013, and 
 (d) as of May 31, 2013 and projected as of June 7, 2013, in each case based upon the pro forma borrowing base certificates prepared by Borrowers in good faith and in accordance with the proposed
terms under the ABL Exit Facility and otherwise in form and substance reasonably acceptable to the Co-Collateral Agents, Borrowers will have sufficient availability under the ABL Exit Facility to meet the closing date availability requirement
thereunder and to otherwise be in compliance with Section 8.12(s) of this Agreement based upon the financing contemplated by the Exit Financing Commitment Letters; 

provided, further, that if Borrowers are unable to satisfy any of the conditions set forth in subclauses (a) through
(d), then from and after June 3, 2013 until and including June 7, 2013, Borrowers may request Revolving Loans but the Revolver Usage at any time may not exceed the permitted Revolver Usage as of the close of business May 31, 2013
unless otherwise agreed to by all Lenders in writing.” 
 (b) Exhibit B-3 to the Credit Agreement is hereby
supplemented by Exhibit A to this Agreement and has been consented to by each Lender, as contemplated by the definition of “Budget” in Schedule 1.1 of the Credit Agreement. 

(c) The definition of Exit Financing Commitment Letter(s) in Schedule 1.1 of the Credit Agreement is hereby amended by
replacing the reference to “May 31, 2013” with “June 7, 2013”. 

 (d) Schedule 5.16 to the Credit Agreement is hereby amended and replaced
with Exhibit B to this Agreement. 
 SECTION 4. REPRESENTATIONS AND WARRANTIES 

Each Borrower hereby represents, warrants and covenants as follows: 

4.1. Representations in the Credit Agreement and the Loan Documents. The representations and warranties set forth in the Credit
Agreement, as amended hereby, and in the other Loan Documents, as amended to date, are true and correct in all material respects as of the date hereof, with the same effect as though made on the date hereof (except to the extent such representations
and warranties (i) expressly refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date, and (ii) are already qualified by materiality, material adverse effect, or words of like
effect, in which case such representations and warranties shall be true in all respects). 
 4.2. Binding Effect of
Documents. This Agreement has been duly authorized, executed and delivered to Agent and Lenders by each Borrower, is enforceable in accordance with its terms and is in full force and effect. 

4.3. No Conflict. The execution, delivery and performance of this Agreement by each Borrower will not violate any requirement of
law or contractual obligation of any Borrower and will not result in, or require, the creation or imposition of any Lien on any of their respective properties or revenues. 
 4.4. Defaults. No Default or Event of Default has occurred and is continuing. 

SECTION 5. CONDITIONS TO EFFECTIVENESS 
 The effectiveness of this Agreement is subject to the consummation of each of the following conditions, each in form and substance satisfactory to Agent: 

(a) an original of this Agreement, duly authorized, executed and delivered by each Borrower; 

(b) an original of the Consent and Reaffirmation as attached at Exhibit B, duly authorized, executed and delivered by each
Guarantor; 
 (c) Borrowers’ filing of motion (at Agent’s request) and subsequent entry of an order of the Bankruptcy
Court, each in form and substance reasonably satisfactory to Agent, authorizing this Agreement and the Consent and Reaffirmation to be executed by and binding upon Borrowers and each Guarantor, which condition may be waived by Agent in its sole
discretion; 
 (d) Borrowers shall have paid all Lender Group Expenses incurred in connection with the transactions evidenced by
this Agreement, the Credit Agreement, the Existing Loan Agreement, the other Loan Documents and the Existing Loan Documents; 

 (e) Borrowers shall provide to Agent’s financial advisor and counsel (subject to the
condition of no further distribution beyond professionals) copies of each final proposal letter received by Borrowers to date from any potential exit lender with whom they are negotiating proposed chapter 11 exit financing, redacted for names and
other confidential information; and 
 (f) Agent shall have received a fully executed copy of the Bondholder Amendment making a
corresponding change to Schedule 5.18 of the Bondholder DIP Credit Agreement. 
 SECTION 6. MISCELLANEOUS 

6.1. Amendment Fee. In consideration for the amendments to the Credit Agreement set forth herein, Borrowers shall pay to Agent, for
the ratable benefit of each Lender, an amendment fee of $300,000, which fee is deemed to be fully earned as of the date hereof and $100,000 of which is due and payable on May 7, 2013 and $200,000 of which is due and payable upon the execution
and delivery of this Agreement by each of the parties listed on the signature pages hereto. 
 6.2. Continuing Effect of
Credit Agreement. Except as modified pursuant hereto, no other changes or modifications to the Credit Agreement and the Loan Documents are intended or implied by this Agreement and in all other respects the Credit Agreement and the Loan
Documents hereby are ratified, restated and confirmed by all parties hereto as of the effective date hereof. To the extent of conflict between the terms of this Agreement, the Credit Agreement and the Loan Documents, the terms of this Agreement
shall govern and control. The Credit Agreement and this Agreement shall be read and construed as one agreement. 
 6.3. Exit
Financing. Borrowers shall promptly provide to Agent’s financial advisor and counsel (subject to the condition of no further distribution beyond professionals) copies of the following documents, redacted for names and other confidential
information except as set forth below: (i) each final proposal letter received by Borrowers on or after the date hereof from any potential exit lender (except for any proposal letter that Borrowers have rejected or deemed unsatisfactory),
(ii) on and after May 3, 2013, the then current draft of commitment letters received by Borrowers from all lenders, including the total amount of the facilities, the borrowing base, the advance rate formulae (if any) and any conditions to
closing, and (iii) after May 3, 2013, all amendments and modifications to such proposed commitment letters. 
 6.4.
Costs and Expenses. Each Borrower absolutely and unconditionally agrees to pay to Agent, on demand by Agent at any time, whether or not all or any of the transactions contemplated by this Agreement are consummated: all fees and disbursements
of any counsel to Agent in connection with the preparation, negotiation, execution or delivery of this Agreement and any agreements contemplated hereby and expenses which shall at any time be incurred or sustained by Agent, any Lender, any
participant of any Lender or any of their respective directors, officers, employees or agents as a consequence of or in any way in connection with the preparation, negotiation, execution, or delivery of this Agreement and any agreements contemplated
hereby, in each case to the extent such expenses constitute Lender Group Expenses required to be paid under the Credit Agreement. 

 6.5. Further Assurances. At Borrowers’ expense, the parties hereto shall execute
and deliver such additional documents and take such further action as may be necessary or desirable to effectuate the provisions and purposes of this Agreement. 
 6.6. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns. 

6.7. Survival of Representations, Warranties and Covenants. All representations, warranties, covenants and releases of each
Borrower made in this Agreement or any other document furnished in connection with this Agreement shall survive the execution and delivery of this Agreement, and no investigation by Agent or any Lender, or any closing, shall affect the
representations and warranties or the right of Agent and Lenders to rely upon them. 
 6.8. Severability. Any provision of
this Agreement held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Agreement. 
 6.9. Reviewed by Attorneys. Each Borrower represents and warrants to Agent and Lenders that it (a) understands fully the terms of this Agreement and the consequences of the execution and
delivery of this Agreement, (b) has been afforded an opportunity to discuss this Agreement with, and have this Agreement reviewed by, such attorneys and other persons as such Borrower may wish, and (c) has entered into this Agreement and
executed and delivered all documents in connection herewith of its own free will and accord and without threat, duress or other coercion of any kind by any Person. The parties hereto acknowledge and agree that neither this Agreement nor the other
documents executed pursuant hereto shall be construed more favorably in favor of one than the other based upon which party drafted the same, it being acknowledged that all parties hereto contributed substantially to the negotiation and preparation
of this Agreement and the other documents executed pursuant hereto or in connection herewith. 
 6.10. Disgorgement. If
Agent or any Lender is, for any reason, compelled by a court or other tribunal of competent jurisdiction to surrender or disgorge any payment, interest or other consideration described hereunder to any person because the same is determined to be
void or voidable as a preference, fraudulent conveyance, impermissible set-off or for any other reason, such indebtedness or part thereof intended to be satisfied by virtue of such payment, interest or other consideration shall be revived and
continue as if such payment, interest or other consideration had not been received by Agent or such Lender, and the Borrowers shall be liable to, and shall indemnify, defend and hold Agent or such Lender harmless for, the amount of such payment or
interest surrendered or disgorged. The provisions of this Section 6.10 shall survive execution and delivery of this Agreement and the documents, agreements and instruments to be executed or delivered herewith. 

6.11. Relationship. Each Borrower agrees that the relationship between Agent and such Borrower and between each Lender and Borrower
is that of creditor and debtor and not that of partners or joint venturers. This Agreement does not constitute a partnership agreement, or any other association between Agent and any Borrower or between any Lender and any Borrower. Each Borrower
acknowledges that Agent and each Lender has acted at all times only as a creditor to such Borrower within the normal and usual scope of the activities normally undertaken by a 

 
creditor and in no event has Agent or any Lender attempted to exercise any control over such Borrower or its business or affairs. Each Borrower further acknowledges that Agent and each Lender has
not taken or failed to take any action under or in connection with its respective rights under the Credit Agreement and the Loan Documents that in any way or to any extent has interfered with or adversely affects such Borrower’s ownership of
Collateral. 
 6.12. Governing Law. THIS AGREEMENT SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES. 
 6.13. Reference to Credit Agreement. Each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import, and
each reference in the Credit Agreement or in any other Loan Documents, or other agreements, documents or other instruments executed and delivered pursuant to the Credit Agreement, shall mean and be a reference to the Credit Agreement as amended by
this Agreement. 
 6.14. Counterparts. This Agreement may be executed in any number of counterparts, and by the parties
hereto on the same or separate counterparts, and each such counterpart, when executed and delivered, shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Agreement. Execution and delivery of an
executed counterpart of this Agreement by facsimile, “pdf” or other electronic transmission shall be equally effective as the delivery of a manually executed original of this Agreement. 

[signatures on following page] 

 IN WITNESS WHEREOF, this Agreement is executed and delivered as of the date first above
written. 
  

							
	BORROWERS:	 		 	SCHOOL SPECIALTY, INC., a Wisconsin corporation
				
		 		 	By:	 	/s/ Michael P. Lavelle
		 		 	Name:	 	Michael P. Lavelle
		 		 	Title:	 	President
			
		 		 	CLASSROOMDIRECT.COM, LLC, a Delaware limited liability company
				
		 		 	By:	 	/s/ Michael P. Lavelle
		 		 	Name:	 	Michael P. Lavelle
		 		 	Title:	 	President
			
		 		 	SPORTIME, LLC, a Delaware limited liability company
				
		 		 	By:	 	/s/ Michael P. Lavelle
		 		 	Name:	 	Michael P. Lavelle
		 		 	Title:	 	President
			
		 		 	DELTA EDUCATION, LLC, a Delaware limited liability company
				
		 		 	By:	 	/s/ Michael P. Lavelle
		 		 	Name:	 	Michael P. Lavelle
		 		 	Title:	 	President

 Signature Page to Amendment No. 3 to Debtor-in-Possession Credit Agreement 

 
			
	PREMIER AGENDAS, INC., a Washington corporation
		
	By:	 	/s/ Michael P. Lavelle
	Name:	 	Michael P. Lavelle
	Title:	 	Executive Vice President

  

			
	CHILDCRAFT EDUCATION CORP., a New York corporation
		
	By:	 	/s/ Michael P. Lavelle
	Name:	 	Michael P. Lavelle
	Title:	 	President

  

			
	BIRD-IN-HAND WOODWORKS, INC., a New Jersey corporation
		
	By:	 	/s/ Michael P. Lavelle
	Name:	 	Michael P. Lavelle
	Title:	 	President

  

			
	CALIFONE INTERNATIONAL, INC., a Delaware corporation
		
	By:	 	/s/ Michael P. Lavelle
	Name:	 	Michael P. Lavelle
	Title:	 	Executive Vice President

 Signature Page to Amendment No. 3 to Debtor-in-Possession Credit Agreement 

 
			
	WELLS FARGO CAPITAL FINANCE, LLC, a Delaware limited liability company, as Agent, as Co-Collateral Agent, and as a Lender
		
	By:	 	/s/ Laura Nickas
	Name:	 	Laura Nickas
		 	Its Authorized Signatory

 Signature Page to Amendment No. 3 to Debtor-in-Possession Credit Agreement 

 
			
	GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation, as a
Co-Collateral Agent, and as a Lender
		
	By:	 	/s/ Kai Sorensen
	Name:	 	Kai Sorensen
		 	Its Authorized Signatory

 Signature Page to Amendment No. 3 to Debtor-in-Possession Credit Agreement 

 
			
	BANK OF MONTREAL, as a Lender
		
	By:	 	/s/ Stephanie Slavkin
	Name:	 	Stephanie Slavkin
		 	Its Authorized Signatory

 Signature Page to Amendment No. 3 to Debtor-in-Possession Credit Agreement 

 
			
	CIT FINANCE LLC,, as a Lender
		
	By:	 	/s/ Kelly Hartnett
	Name:	 	Kelly Hartnett
		 	Its Authorized Signatory

 Signature Page to Amendment No. 3 to Debtor-in-Possession Credit Agreement 

 EXHIBIT A 
 to 
 AMENDMENT NO. 3 TO 

DEBTOR-IN-POSSESSION CREDIT AGREEMENT 
 SUPPLEMENTAL BUDGET 

 EXHIBIT B 

to 

AMENDMENT NO. 3 TO 
 DEBTOR-IN-POSSESSION CREDIT AGREEMENT 
 SCHEDULE 5.16

 Milestones 
  

	1.	[Intentionally omitted.] 

  

	2.	[Intentionally omitted.] 

  

	3.	[Intentionally omitted.] 

  

	4.	On or before March 19, 2013 (or such later date as Agent, Co-Collateral Agents and the Required Lenders shall agree), (i) the Bankruptcy Court shall have
entered a final order establishing procedures with respect to the marketing and sale of the assets of debtors in the Bankruptcy Cases (the “Debtors”), which order shall be in form and substance (and any modification thereto)
reasonably acceptable to Agent and Co-Collateral Agents, and (ii) the Debtors shall have filed a plan of reorganization (the “Plan”) and a motion seeking approval of the disclosure statement and solicitation procedures related
to the Plan (the “Disclosure Statement Motion”), in each case, in form and substance (and any modification thereto) reasonably acceptable to Agent, Co-Collateral Agents and the Required Lenders. 

 

	5.	On or before April 25, 2013 (or such later date as Agent, Co-Collateral Agents and the Required Lenders shall agree), obtain entry of an order of the Bankruptcy
Court granting the Disclosure Statement Motion, which order (and any modifications thereto) shall be in form and substance reasonably acceptable to Agent, Co-Collateral Agents and the Required Lenders. 

 

	6.	On or before April 29, 2013 (or such later date as Agent and Co-Collateral Agents shall agree in its sole discretion), the debtors in the Bankruptcy Cases shall
have commenced the solicitation of votes in connection with the Plan pursuant to sections 1125 and 1126 of the Bankruptcy Code. 

  

	7.	On or before May 13, 2013, (i) Agent shall have received the executed Exit Financing Commitment Letter(s) and such Exit Financing Commitment Letter(s) shall
remain unmodified and in full force and effect and (ii) Agent shall have received a written agreement binding upon each of the lenders under the Bondholder DIP Credit Agreement pursuant to which such lenders agree to accept equity in the
reorganized Debtors (and have agreed to the amount and terms of such equity) in partial satisfaction of an agreed upon amount of obligations under the Bondholder DIP Credit Agreement, in form and substance reasonably acceptable to Agent and
Co-Collateral Agents. 

  

	8.	[Intentionally omitted.]. 

	9.	On or before May 24, 2013 (or such later date as Lenders shall agree), the Bankruptcy Court shall have entered the order confirming the Plan pursuant to section
1129 of the Bankruptcy Code (assuming the Plan has obtained the requisite votes), which order (and any modification thereto) shall be in form and substance reasonably acceptable to Lenders. 

 

	10.	On or before June 7, 2013, the Effective Date (as defined in the Plan) shall have occurred and the Existing Secured Obligations and Obligations shall have been
Paid in Full. 

 For purposes of Milestones 4, 5, and 9, any Plan, Disclosure Statement Motion, order approving the Disclosure
Statement Motion, or order confirming the Plan that (i) does not provide that the Obligations and Existing Secured Obligations shall be Paid in Full on or before the June 7, 2013 or (ii) modifies or impairs any of the Lenders’
rights under the Financing Order, including the extent, validity and priority of Liens, shall be deemed not reasonable. 

 EXHIBIT B 
 to 
 AMENDMENT NO. 3 TO 

DEBTOR-IN-POSSESSION CREDIT AGREEMENT 
 CONSENT AND REAFFIRMATION 
 Each of the undersigned (each a
“Guarantor”) hereby (i) acknowledges receipt of a copy of the foregoing Amendment No. 3 to Debtor-in-Possession Credit Agreement (the “Agreement”; capitalized terms used but not otherwise defined herein
shall have the meanings ascribed to such terms in that certain Debtor-in-Possession Credit Agreement dated as of January 31, 2013 (as amended by that certain Amendment No. 1 to Debtor-in-Possession Credit Agreement, dated as of
February 27, 2013, and that certain Amendment No. 2 to Debtor-in-Possession Credit Agreement, dated as of April 12, 2013, and as further amended, supplemented, extended, renewed, restated or otherwise modified from time to time) among
Agent, Borrowers and the Lenders from time to time party thereto; (ii) consents to Borrowers’ execution and delivery of the Agreement; (iii) agrees to be bound by the Agreement; (iv) affirms that nothing contained in the
Agreement, except as specifically stated therein, shall modify in any respect whatsoever any Loan Document to which it is a party; and (v) reaffirms its obligations under (a) the Guaranty and Security Agreement and (b) each of the
other Loan Documents to which it is a party (as modified by the Agreement, collectively, the “Reaffirmed Loan Documents”) and confirms that such obligations are unconditional and not subject to any defense, setoff, counterclaim or other
adverse claim. Although each Guarantor has been informed of the matters set forth herein and has acknowledged and agreed to same, each Guarantor understands that neither Agent nor any Lender has any obligation to inform any Guarantor of such matters
in the future or to seek any Guarantor’s acknowledgment or agreement to future amendments, waivers or consents, and nothing herein shall create such a duty. 
 The undersigned further agree that after giving effect to the Agreement, each Reaffirmed Loan Document shall remain in full force and effect. 

 

			
	FREY SCIENTIFIC, INC.
		
	By:	 	/s/ Michael P. Lavelle
	Name:	 	Michael P. Lavelle
	Title:	 	Vice President

 
			
	SAX ARTS & CRAFTS, INC.
		
	By:	 	/s/ Michael P. Lavelle
	Name:	 	Michael P. Lavelle
	Title:	 	President

  

			
	SELECT AGENDAS, CORP.
		
	By:	 	/s/ Michael P. Lavelle
	Name:	 	Michael P. Lavelle
	Title:	 	President

 Signature Page to Consent and ReaffirmationEX-10.33

 Exhibit 10.33 
 August 16, 2012 
 Patrick T. Collins 
 5566 South Oak Street 
 Hinsdale, IL 60521 

Dear Pat: 
 I am pleased to offer you the
position of Senior Vice President, Sales for School Specialty, Inc. (SSI). This position will report directly to the President and CEO, Michael Lavelle. 
 The following highlights key aspects of our offer of employment: 
  

	 	•	 	 Start Date: On or before September 4, 2012. 

 

	 	•	 	 Work Location: Your official work location will be in our Greenville, WI office. We do not require that you relocate as part of the job, but do
expect that you will spend the time necessary in Wisconsin and elsewhere, with our various sales forces, to lead the national sales organization. 

  

	 	•	 	 Employment: You employment is contingent on the successful completion of a background check and pre-employment drug screen. A background check
form is enclosed with this letter; please complete and email or fax the form to the attention of Heather Rundquist at (920) 993-4304. The drug screen will be completed on site during your first day of employment with us.

  

	 	•	 	 Total Compensation: The following describes the compensation elements of our offer, which include: 

 

	 	•	 	 Base Salary: You will receive a base salary of $300,000 on an annualized basis or at a biweekly rate of $11,538.46.

  

	 	•	 	 Bonus Plan: You are eligible for participation in the Annual Bonus Plan Program of School Specialty starting with SSI’s fiscal 2013 year
which began May 1st. This position has a targeted
payout of 40% of annual base salary and a potential payout of up to 60% of your base salary. We will prorate any fiscal 2013 bonus to reflect your time with SSI during the fiscal year. 

 

	 	•	 	 Long Term Incentive: This position is eligible to participate in the School Specialty Long Term Equity Incentive Program. Given the level of
this position, there are several equity vehicles that make up your new hire long term incentive award, each of which will be evidenced by a separate written agreement. 

 Patrick T. Collins 
 August 16, 2012 
  Page
 2
 
  

Restricted Stock Unites (NSU) award: Upon your start date, you will receive an RSU award consisting of 27,500 shares. This is a
time-based vesting award and shares will vest ratably over a 3-year period, with the first third vesting on the one year anniversary date of your hire. The second third will vest upon the completion of your second anniversary date, and the final
third will vest upon completion of your third anniversary. 
  

	 	•	 	 Stock Option Grant (with no requirement to purchase stock): Upon your start date, you’ll receive a Stock Option award consisting of 30,000
options. The options are subject to a four-year vesting program at 25% per year starting with your first anniversary date of hire and are valid for ten years. 

 

	 	•	 	 Stock Option Grant (with requirement to purchase stock): Upon your start date, you’ll be issued a Stock Option award consisting of 75,000 options.
However, to initiate vesting of these options, you will first be required to accumulate $115,000 in purchased shares. Once this is completed, this award will vest; 25% upon an SSI stock price achievement of $5.00 per share; 25% upon an SSI stock
price achievement of $10.00 per share; 25% upon an SSI stock price achievement of $15.00 per share; and 25% upon an SSI stock price achievement of $20.00 per share. Additionally, even if the share price targets are achieved, no options are
exercisable during the first year of employment. Assuming share price targets are met, you may exercise up to, but no more than, one-third of this award upon the first anniversary date of your hire. A second third may be exercised upon your second
anniversary date, and the final third upon your third anniversary date, assuming share price targets are met each of the years. The award has a 10-year term. 

 

	 	•	 	 Benefits: During the term of your employment with the Company, you will receive all benefits customarily provided by the Company to its
similarly situated employees. The Company shall have the right in its sole discretion to modify or eliminate any benefits provided to its associates. A Summary of your Benefits is included with the hard copy package that is mailed to you.

  

	 	•	 	 Vacation (PTO): You will accrue 4 weeks of Paid Time Off (PTO) annually. 

 

	 	•	 	 Holiday Shutdown: All Company operations will shut down the week of December 24-28, 2012. During this time you will not be paid, but will
be eligible for two additional floating holidays that you can take at any point in calendar year 2012. 

  

	 	•	 	 Covenants and Conditions: You agree to the covenants and conditions as listed in Exhibit A attached. Please print two (2) copies of this
offer letter and of Exhibit A, sign both, and email or fax one copy to Heather Rundquist at (920) 993-4304. Please retain a copy for your files. Then, please bring an original Exhibit A and an original signed offer letter with you when you
start. 

 Patrick T. Collins 
 August 16, 2012 
  Page
 3
 
  
  

	 	•	 	 Severance: Should your employment be terminated for reasons other than “cause”, and assuming you are in this role or in a role at an
equivalent level upon termination, you will be eligible to receive the standard severance package for your execute level which includes one (1) year of severance based on your current annual salary at the date of termination. The severance
payment is contingent upon your execution of a written separation agreement (including a general release of claims) in a form acceptable to the Company within thirty (30) days of the date of your termination and will be paid to you in
accordance with the Company’s regular payroll practices over the one-year period following such termination. 

  

	 	•	 	 Definition of “Cause”: Definition of “Cause”: “Cause” shall mean any of the following: (1) Employee has
materially breached any agreement to which Employee and the Company are parties or any Company policy (including the Company’s policy against unlawful harassment), or has materially breached any other obligation or duty owed to the Company,
including, but not limited to, Employee’s substantial failure or willful refusal to perform his duties and responsibilities to the Company; (2) Employee has committed gross negligence, willful misconduct or any violation of law in the
performance of Employee’s duties for the Company; (3) Employee has taken any action substantially likely to result in discredit to or loss of business, reputation or goodwill of the Company; (4) Employee has failed to follow
reasonable instructions from the Board, officer, body or other entity or individual to whom Employee reports concerning the operations or business of the Company; (5) Employee has been convicted of or pled nolo contendere to a felony or other
crime, the circumstances of which substantially relate to Employee’s employment duties with the Company; (6) Employee has misappropriated funds or property of the Company or engaged in any material act of dishonesty; (7) Employee has
attempted to obtain a personal profit from any transaction in which the Company has an interest, and which constitutes a corporate opportunity of the Company, or which is adverse to the interests of the Company, unless the transaction was approved
in writing by the Company’s Board after full disclosure of all details relating to such transaction. For the purposes of this definition of “Cause,” no act or failure to act on Employee’s part will be deemed “willful”
unless done or omitted to be done, by the Employee in bad faith. 

  

	 	•	 	 In addition: You also warrant and represent to School Specialty, Inc. that as of the date of this employment offer, you are not subject to any
employment, consulting, service agreement or any restrictive covenants or agreements of any type, which would conflict or prohibit you form fully carrying out the duties of the position being offered to you. In addition, you warrant and represent to
School Specialty, Inc. that you have not and will not retain or use for the benefit of School Specialty, Inc. any confidential information, records, trade secrets or other property of a former employer. 

 Patrick T. Collins 
 August 16, 2012 
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 Pat, on behalf of
all of us at School Specialty, Inc. we are very much looking forward to the value you will bring to this role. Should you have any questions, please do not hesitate to contact me directly at (920) 882-5800. 

Sincerely, 
  

	
	 Michael Lavelle
 President and
CEO
 School Specialty, Inc.
  

cc:      Corporate Human Resources

 

   
 I,             /s/ Patrick T. Collins            , accept the terms as
outlined in this offer of employment 
               (Printed Name)

  

	                 Patrick T.
Collins                
	          8/20/12

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