Document:

Form of Amended and Restated Pledge Agreement

 
Exhibit 4.2 
  
 FORM OF 
 AMENDED AND RESTATED PLEDGE AGREEMENT 
  
 THIS AMENDED AND RESTATED PLEDGE AGREEMENT (this “Pledge
Agreement”) dated as of August     , 2005 is by and among the parties identified as “Pledgors” on the signature pages hereto and such other parties as may become Pledgors hereunder after the date hereof
(individually a “Pledgor”, and collectively the “Pledgors”) and BANK OF AMERICA, N.A., as collateral agent (in such capacity, the “Collateral Agent”) for the holders of the Secured Obligations
referenced below. 
  
 W I T N E S S E T H 
  
 WHEREAS, a $250 million revolving credit facility has been established in
favor of School Specialty, Inc., a Wisconsin corporation (the “Borrower”), pursuant to the Amended and Restated Credit Agreement (as amended, modified, supplemented and extended from time to time, the “Revolver Credit
Agreement”) dated as of April 11, 2003 among the Borrower, the guarantors identified therein, the lenders identified therein and Bank of America, N.A., as administrative agent; 
  
 WHEREAS, a $100 million term loan facility has been established in favor of the Borrower pursuant to the Term Loan Credit
Agreement (as amended, modified, supplemented and extended from time to time, the “Term Loan Credit Agreement”) dated as of the date hereof among the Borrower, the guarantors identified therein, the lenders identified therein and
Bank of America, N.A. as administrative agent; 
  
 WHEREAS,
pursuant to that Intercreditor and Collateral Agency Agreement (as amended, modified, supplemented or extended, the “Intercreditor Agreement”) dated as of the date hereof among the Revolver Agent, on behalf of itself and the
Revolver Lenders, and the Term Loan Agent, on behalf of itself and the Term Loan Lenders, the parties thereto have appointed the Collateral Agent as agent for purposes of (a) perfecting a security interest in the Pledged Collateral (as defined
below) and (b) exercising such other actions and rights with respect to the Pledged Collateral provided to the Collateral Agent thereunder and hereunder; and 
  
 WHEREAS, this Pledge Agreement is given in amendment to, restatement of and substitution for the Amended and Restated Pledge Agreement dated as of April
11, 2003 among the Grantors and Bank of America, N.A., as administrative agent for the holders of the secured obligations referenced therein. 
  
 NOW, THEREFORE, in consideration of these premises and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows: 
  
 1.
Definitions. 
  
 (a) Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to such terms in the Intercreditor Agreement. 
  
 (b) As used herein, the following terms shall have the meanings assigned thereto in the Uniform Commercial Code in effect in the State of North Carolina
on the date hereof: Accession, Financial Asset, Proceeds and Security. 

 (c) As used herein, the following terms shall have the meanings set forth below: 
  
 “Capital Stock” means (i) in the case of a
corporation, capital stock, (ii) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock, (iii) in the case of a partnership, partnership
interests (whether general or limited), (iv) in the case of a limited liability company, membership interests and (v) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or
distributions of assets of, the issuing Person. 
  
 “GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board, consistently applied and as in effect from time to time. 
  
 “Governmental Authority” means any nation or government, any state or other political subdivision thereof, any agency,
authority, instrumentality, regulatory body, court, administrative tribunal, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

  
 “Lien” means any mortgage,
pledge, hypothecation, collateral assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement of any kind or nature whatsoever (including any
conditional sale or other title retention agreement, and any financing lease having substantially the same economic effect as any of the foregoing). 
  
 “Pledged Collateral” has the meaning provided in Section 2 hereof. 
  
 “Pledged Shares” has the meaning provided
in Section 2 hereof. 
  
 “Secured
Obligations” means, without duplication, (i) all Obligations (as such term is defined under the Revolver Credit Agreement), (ii) all Obligations (as such term is defined under the Term Loan Credit Agreement) and (iii) all costs and expenses
incurred in connection with enforcement and collection of the obligations described in the foregoing clauses (i) and (ii), including reasonable attorneys’ fees and the allocated cost of internal counsel. 
  
 “UCC” means the Uniform Commercial Code.

  
 2. Pledge and Grant of Security Interest. To secure the
prompt payment and performance in full when due, whether by lapse of time, acceleration, mandatory prepayment or otherwise, of the Secured Obligations, each Pledgor hereby grants, pledges and assigns to the Collateral Agent, for the benefit of the
holders of the Secured Obligations, a continuing security interest in, and a right to set-off against, any and all right, title and interest of such Pledgor in and to the following, whether now owned or existing or owned, acquired, or arising
hereafter (collectively, the “Pledged Collateral”): 
  
 (a) Pledged Shares. (i) One hundred percent (100%) (or, if less, the full amount owned by such Pledgor) of the issued and outstanding Capital Stock owned by such Pledgor of each Domestic Subsidiary set forth on
Schedule 2(a) attached hereto and (ii) sixty-five percent (65%) (or, if less, the full amount owned by such Pledgor) of the issued and outstanding shares of Capital Stock entitled to vote (within the meaning of Treas. Reg. Section
1.956-2(c)(2)) (“Voting Equity”) and one hundred percent (100%) (or, if less, the full amount owned by such Pledgor) of the issued and outstanding Capital Stock not entitled to vote (within the meaning of Treas. Reg. Section
1.956-2(c)(2)) (“Non-Voting Equity”) owned by such Pledgor of each 
  

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 Foreign Subsidiary set forth on Schedule 2(a) attached hereto, in each case together with the
certificates (or other agreements or instruments), if any, representing such Capital Stock, and all options and other rights, contractual or otherwise, with respect thereto (collectively, together with the Capital Stock described in Section 2(b) and
2(c) below, the “Pledged Shares”), including, but not limited to, the following: 
  
 (A) all shares, securities, membership interests or other equity interests representing a dividend on any of the Pledged Shares, or
representing a distribution or return of capital upon or in respect of the Pledged Shares, or resulting from a stock split, revision, reclassification or other exchange therefor, and any subscriptions, warrants, rights or options issued to the
holder of, or otherwise in respect of, the Pledged Shares; and 
  
 (B) without affecting the obligations of the Pledgors under any provision prohibiting such action hereunder or under the Financing Documents, in the event of any consolidation or merger involving the issuer of any
Pledged Shares and in which such issuer is not the surviving entity, all Capital Stock of the successor entity formed by or resulting from such consolidation or merger. 
  
 (b) Additional Shares. (i) One hundred percent (100%) (or, if less, the full amount owned by such
Pledgor) of the issued and outstanding Capital Stock owned by such Pledgor of any Person that hereafter becomes a Domestic Subsidiary and (ii) sixty-five percent (65%) (or, if less, the full amount owned by such Pledgor) of the Voting Equity and one
hundred percent (100%) (or, if less, the full amount owned by such Pledgor) of the Non-Voting Equity owned by such Pledgor of any Person that hereafter becomes a Foreign Subsidiary, including, without limitation, the certificates (or other
agreements or instruments) representing such Capital Stock. 
  
 (c) Accessions and Proceeds. All Accessions and all Proceeds of any and all of the foregoing. 
  
 Without limiting the generality of the foregoing, it is hereby specifically understood and agreed that a Pledgor may from time to time hereafter deliver
additional Capital Stock to the Collateral Agent as collateral security for the Secured Obligations. Upon delivery to the Collateral Agent, such additional Capital Stock shall be deemed to be part of the Pledged Collateral of such Pledgor and shall
be subject to the terms of this Pledge Agreement whether or not Schedule 2(a) is amended to refer to such additional Capital Stock. 
  
 3. Security for Secured Obligations. The security interest created hereby in the Pledged Collateral of each Pledgor constitutes continuing
collateral security for all of the Secured Obligations. 
  
 4.
Delivery of the Pledged Collateral. Each Pledgor hereby agrees that: 
  
 (a) Certificates and Indorsements. Each Pledgor shall deliver to the Collateral Agent (i) simultaneously with or prior to the execution and delivery of this Pledge Agreement, all certificates representing the
Pledged Shares of such Pledgor and (ii) promptly upon the receipt thereof by or on behalf of a Pledgor, all other certificates and instruments constituting Pledged Collateral of a Pledgor. Prior to delivery to the Collateral Agent, all such
certificates and instruments constituting Pledged Collateral of a Pledgor shall be held in trust by such Pledgor for the benefit of the Collateral Agent pursuant hereto. All such certificates shall be delivered in suitable form for transfer by
delivery or shall be accompanied by duly executed instruments of transfer or assignment in blank, substantially in the form provided in Schedule 4(a) attached hereto. 
  

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 (b) Additional Securities. If such Pledgor shall receive by virtue of its being or
having been the owner of any Pledged Collateral, any (i) certificate, including without limitation, any certificate representing a dividend or distribution in connection with any increase or reduction of capital, reclassification, merger,
consolidation, sale of assets, combination of shares or other equity interests, stock splits, spin-off or split-off, promissory notes or other instruments; (ii) option or right, whether as an addition to, substitution for, or an exchange for, any
Pledged Collateral or otherwise; (iii) dividends payable in securities; or (iv) distributions of securities in connection with a partial or total liquidation, dissolution or reduction of capital, capital surplus or paid-in surplus, then such Pledgor
shall receive such certificate, instrument, option, right or distribution in trust for the benefit of the Collateral Agent, shall segregate it from such Pledgor’s other property and shall deliver it forthwith to the Collateral Agent in the
exact form received together with any necessary endorsement and/or appropriate stock power duly executed in blank, substantially in the form provided in Schedule 4(a), to be held by the Collateral Agent as Pledged Collateral and as further
collateral security for the Secured Obligations. 
  
 (c) Financing Statements. Each Pledgor authorizes the Collateral Agent to file one or more financing statements (with collateral descriptions broader and/or less specific than the description of the Collateral contained herein)
disclosing the Collateral Agent’s security interest in the Pledged Collateral. Each Pledgor agrees to execute and deliver to the Collateral Agent such financing statements and other filings as may be reasonably requested by the Collateral Agent
in order to perfect and protect the security interest created hereby in the Pledged Collateral of such Pledgor. 
  
 5. Representations and Warranties. Each Pledgor hereby represents and warrants to the Collateral Agent, for the benefit of the holders of the
Secured Obligations, that so long as any of the Secured Obligations remains outstanding and until all of the commitments relating thereto have been terminated: 
  

(a) Authorization of Pledged Shares. The Pledged Shares are duly authorized and validly issued, are fully paid and, subject to
Section 180.0622 of the Wisconsin General Statutes in the case of the Pledged Shares in any Subsidiary formed under the laws of the State of Wisconsin, nonassessable and are not subject to the preemptive rights of any Person. 
  
 (b) Title. Each Pledgor has good and indefeasible
title to the Pledged Collateral of such Pledgor and is the legal and beneficial owner of such Pledged Collateral free and clear of any Lien, other than Liens permitted under the Financing Documents. There exists no “adverse claim” within
the meaning of Section 8-102 of the UCC with respect to the Pledged Shares of such Pledgor. 
  
 (c) Exercising of Rights. The exercise by the Collateral Agent of its rights and remedies hereunder will not violate any law or
governmental regulation or any material contractual restriction binding on or affecting a Pledgor or any of its property. 
  
 (d) Pledgor’s Authority. No authorization, approval or action by, and no notice or filing with any Governmental Authority or
with the issuer of any Pledged Stock is required either (i) for the pledge made by a Pledgor or for the granting of the security interest by a Pledgor pursuant to this Pledge Agreement (except as have been already obtained) or (ii) for the exercise
by the Collateral Agent or the holders of the Secured Obligations of their rights and remedies hereunder (except as may be required by laws affecting the offering and sale of securities). 
  

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 (e) Security Interest/Priority. This Pledge Agreement creates a valid security
interest in favor of the Collateral Agent for the benefit of the holders of the Secured Obligations, in the Pledged Collateral. The taking of possession by the Collateral Agent of the certificates representing the Pledged Shares and all other
certificates and instruments constituting Pledged Collateral will perfect and establish the first priority of the Collateral Agent’s security interest in the Pledged Shares and, when properly perfected by filing or registration, in all other
Pledged Collateral represented by such Pledged Shares and instruments securing the Secured Obligations. Except as set forth in this Section 5(e), no action is necessary to perfect or otherwise protect such security interest. 
  
 (f) Partnership and Membership Interests. Except as
previously disclosed to the Collateral Agent, none of the Pledged Shares consisting of partnership or limited liability company interests (i) is dealt in or traded on a securities exchange or in a securities market, (ii) by its terms expressly
provides that it is a security governed by Article 8 of the UCC, (iii) is an investment company security, (iv) is held in a securities account or (v) constitutes a Security or a Financial Asset. 
  
 6. Covenants. Each Pledgor hereby covenants, that so long as any of
the Secured Obligations remains outstanding and until all of the commitments relating thereto have been terminated, such Pledgor shall: 
  
 (a) Defense of Title. Warrant and defend title to and ownership of the Pledged Collateral of such Pledgor at its own expense
against the claims and demands of all other parties claiming an interest therein, keep the Pledged Collateral free from all Liens, except for Liens permitted under the Financing Documents, and not sell, exchange, transfer, assign, lease or otherwise
dispose of Pledged Collateral of such Pledgor or any interest therein, except as permitted under the Financing Documents. 
  
 (b) Further Assurances. Promptly execute and deliver at its expense all further instruments and documents and take all further
action that may be necessary and desirable or that the Collateral Agent may reasonably request in order to (i) perfect and protect the security interest created hereby in the Pledged Collateral of such Pledgor (including, without limitation, any and
all action necessary to satisfy the Collateral Agent that the Collateral Agent has obtained a first priority perfected security interest in all Pledged Collateral); (ii) enable the Collateral Agent to exercise and enforce its rights and remedies
hereunder in respect of the Pledged Collateral of such Pledgor; and (iii) otherwise effect the purposes of this Pledge Agreement, including, without limitation and if requested by the Collateral Agent, delivering to the Collateral Agent irrevocable
proxies in respect of the Pledged Collateral of such Pledgor. 
  
 (c) Amendments. Not make or consent to any amendment or other modification or waiver with respect to any of the Pledged Collateral of such Pledgor or enter into any agreement or allow to exist any restriction
with respect to any of the Pledged Collateral of such Pledgor other than pursuant hereto or as may be permitted under the Financing Documents. 
  
 (d) Compliance with Securities Laws. File all reports and other information now or hereafter required to be filed by such Pledgor
with the United States Securities and Exchange Commission and any other state, federal or foreign agency in connection with the ownership of the Pledged Collateral of such Pledgor. 
  

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 (e) Issuance or Acquisition of Capital Stock. Not, without executing and
delivering, or causing to be executed and delivered, to the Collateral Agent such agreements, documents and instruments as the Collateral Agent may require, issue or acquire any Capital Stock consisting of an interest in a partnership or a limited
liability company that (i) is dealt in or traded on a securities exchange or in a securities market, (ii) by its terms expressly provides that it is a security governed by Article 8 of the UCC, (iii) is an investment company security, (iv) is held
in a securities account or (v) constitutes a Security or a Financial Asset. 
  
 7. Advances by Holders of the Secured Obligations. On failure of any Pledgor to perform any of the covenants and agreements contained herein, the Collateral Agent may, pursuant to the Intercreditor Agreement,
perform the same and in so doing may expend such sums as the Collateral Agent may reasonably deem advisable in the performance thereof, including, without limitation, the payment of any insurance premiums, the payment of any taxes, a payment to
obtain a release of a Lien or potential Lien, expenditures made in defending against any adverse claim and all other expenditures that the Collateral Agent or the holders of the Secured Obligations may make for the protection of the security hereof
or may be compelled to make by operation of law. All such sums and amounts so expended shall be repayable by the Pledgors on a joint and several basis promptly upon timely notice thereof and demand therefor, shall constitute additional Secured
Obligations and shall bear interest from the date said amounts are expended at the greater of (a) the default rate specified in the Revolver Credit Agreement for Base Rate Loans and (b) the default rate specified in the Term Loan Credit Agreement
for Base Rate Loans. No such performance of any covenant or agreement by the Collateral Agent or the holders of the Secured Obligations on behalf of any Pledgor, and no such advance or expenditure therefor, shall relieve the Pledgors of any default
under the terms of this Pledge Agreement, the other Financing Documents or any other documents relating to the Secured Obligations. The holders of the Secured Obligations may make any payment hereby authorized in accordance with any bill, statement
or estimate procured from the appropriate public office or holder of the claim to be discharged without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax assessment, sale, forfeiture, tax lien, title or
claim except to the extent such payment is being contested in good faith by a Pledgor in appropriate proceedings and against which adequate reserves are being maintained in accordance with GAAP. 
  
 8. [Reserved]. 
  
 9. Remedies. 
  
 (a) General Remedies. Upon the occurrence of an Event of Default and
during the continuation thereof, the Collateral Agent and the holders of the Secured Obligations shall have, in addition to the rights and remedies provided herein, in the Financing Documents, in any other documents relating to the Secured
Obligations, or by law (including, without limitation, levy of attachment and garnishment), the rights and remedies of a secured party under the UCC of the jurisdiction applicable to the affected Pledged Collateral. 
  
 (b) Sale of Pledged Collateral. Upon the occurrence of an Event of
Default and during the continuation thereof, without limiting the generality of this Section 9 and without notice, the Collateral Agent, at the direction of the Majority Secured Parties or in its own discretion in accordance with the terms of the
Intercreditor Agreement, may sell or otherwise dispose of or realize upon the Pledged Collateral, or any part thereof, in one or more parcels, at public or private sale, at any exchange or broker’s board or elsewhere, at such price or prices
and on such other terms as the Collateral Agent may 
  

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 deem commercially reasonable, for cash, credit or for future delivery or otherwise in accordance with applicable law. To
the extent permitted by law, any holder of the Secured Obligations may in such event, bid for the purchase of such securities. Each Pledgor agrees that, to the extent notice of sale shall be required by law and has not been waived by such Pledgor,
any requirement of reasonable notice shall be met if notice, specifying the place of any public sale or the time after which any private sale is to be made, is personally served on or mailed, postage prepaid, to such Pledgor, in accordance with the
notice provisions of Section 16 hereof at least ten days before the time of such sale. The Collateral Agent shall not be obligated to make any sale of Pledged Collateral of such Pledgor regardless of notice of sale having been given. The Collateral
Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. 
  
 (c) Private Sale. Upon the occurrence of an Event of Default and
during the continuation thereof, the Pledgors recognize that the Collateral Agent may deem it impracticable to effect a public sale of all or any part of the Pledged Shares or any of the securities constituting Pledged Collateral and that the
Collateral Agent may, therefore, determine to make one or more private sales of any such Pledged Collateral to a restricted group of purchasers who will be obligated to agree, among other things, to acquire such Pledged Collateral for their own
account, for investment and not with a view to the distribution or resale thereof. Each Pledgor acknowledges that any such private sale may be at prices and on terms less favorable to the seller than the prices and other terms that might have been
obtained at a public sale and, notwithstanding the foregoing, agrees that such private sale shall be deemed to have been made in a commercially reasonable manner and that the Collateral Agent shall have no obligation to delay sale of any such
Pledged Collateral for the period of time necessary to permit the issuer of such Pledged Collateral to register such Pledged Collateral for public sale under the Securities Act. Each Pledgor further acknowledges and agrees that any offer to sell
such Pledged Collateral that has been (i) publicly advertised on a bona fide basis in a newspaper or other publication of general circulation in the financial community of New York, New York (to the extent that such offer may be advertised without
prior registration under the Securities Act), or (ii) made privately in the manner described above shall be deemed to involve a “public sale” under the UCC, notwithstanding that such sale may not constitute a “public offering”
under the Securities Act, and the Collateral Agent may, in such event, bid for the purchase of such Pledged Collateral. 
  
 (d) Retention of Pledged Collateral. To the extent permitted under applicable law, in addition to the rights and remedies hereunder, upon the
occurrence of an Event of Default, the Collateral Agent may, after providing the notices required by Sections 9-620 and 9-621 of the UCC or otherwise complying with the requirements of applicable law of the relevant jurisdiction, accept or retain
all or any portion of the Pledged Collateral in satisfaction of the Secured Obligations. Unless and until the Collateral Agent shall have provided such notices, however, the Collateral Agent shall not be deemed to have accepted or retained any
Pledged Collateral in satisfaction of any Secured Obligations for any reason. 
  
 (e) Deficiency. In the event that the proceeds of any sale, collection or realization are insufficient to pay all amounts to which the Collateral Agent or the holders of the Secured Obligations are legally
entitled, the Pledgors shall be jointly and severally liable for the deficiency, together with interest thereon at the greater of (i) the default rate specified in the Revolver Credit Agreement for Base Rate Loans and (ii) the default rate specified
in the Term Loan Credit Agreement for Base Rate Loans, together with the costs of collection and reasonable attorneys’ fees (including the allocated cost of internal counsel). Any surplus remaining after the full payment and satisfaction of the
Secured Obligations shall be returned to the Pledgors or to whomsoever a court of competent jurisdiction shall determine to be entitled thereto. 
  

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 10. Rights of the Collateral Agent. 
  
 (a) Power of Attorney. In addition to other powers of attorney contained herein, each Pledgor hereby designates and
appoints the Collateral Agent, on behalf of the holders of the Secured Obligations, and each of its designees or agents, as attorney-in-fact of such Pledgor, irrevocably and with power of substitution, with authority to take any or all of the
following actions upon the occurrence and during the continuation of an Event of Default: 
  
 (i) to demand, collect, settle, compromise and adjust, and give discharges and releases concerning the Pledged Collateral, all as the
Collateral Agent may reasonably deem appropriate; 
  
 (ii) to commence and prosecute any actions at any court for the purposes of collecting any of the Pledged Collateral and enforcing any other right in respect thereof; 
  
 (iii) to defend, settle or compromise any action brought and, in connection therewith, give such discharge
or release as the Collateral Agent may reasonably deem appropriate; 
  
 (iv) to pay or discharge taxes, liens, security interests or other encumbrances levied or placed on or threatened against the Pledged Collateral; 
  
 (v) to direct any parties liable for any payment in connection with any of the Pledged Collateral to make
payment of any and all monies due and to become due thereunder directly to the Collateral Agent or as the Collateral Agent shall direct; 
  
 (vi) to receive payment of and receipt for any and all monies, claims, and other amounts due and to become due at any time in respect of
or arising out of any Pledged Collateral; 
  
 (vii) to sign and endorse any drafts, assignments, proxies, stock powers, verifications, notices and other documents relating to the Pledged Collateral; 
  
 (viii) to execute and deliver all assignments, conveyances, statements, financing statements, renewal
financing statements, security and pledge agreements, affidavits, notices and other agreements, instruments and documents that the Collateral Agent may reasonably deem appropriate in order to perfect and maintain the security interests and liens
granted in this Pledge Agreement and in order to fully consummate all of the transactions contemplated therein; 
  
 (ix) to exchange any of the Pledged Collateral or other property upon any merger, consolidation, reorganization, recapitalization or other
readjustment of the issuer thereof and, in connection therewith, deposit any of the Pledged Collateral with any committee, depository, transfer agent, registrar or other designated agency upon such terms as the Collateral Agent may reasonably deem
appropriate; 
  
 (x) to vote for a shareholder
resolution, or to sign an instrument in writing, sanctioning the transfer of any or all of the Pledged Collateral into the name of the Collateral Agent or one or more of the holders of the Secured Obligations or into the name of any transferee to
whom the Pledged Collateral or any part thereof may be sold pursuant to Section 9 hereof; and 
  

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 (xi) to do and perform all such other acts and things as the Collateral Agent may
reasonably deem appropriate or convenient in connection with the Pledged Collateral. 
  
 This power of attorney is a power coupled with an interest and shall be irrevocable for so long as any of the Secured Obligations shall remain outstanding and until all of the commitments relating thereto shall have
been terminated. The Collateral Agent shall be under no duty to exercise or withhold the exercise of any of the rights, powers, privileges and options expressly or implicitly granted to the Collateral Agent in this Pledge Agreement, and shall not be
liable for any failure to do so or any delay in doing so. The Collateral Agent shall not be liable for any act or omission or for any error of judgment or any mistake of fact or law in its individual capacity or its capacity as attorney-in-fact
except acts or omissions resulting from its gross negligence or willful misconduct. This power of attorney is conferred on the Collateral Agent solely to protect, preserve and realize upon its security interest in the Pledged Collateral. 

 
 (b) Assignment by the Collateral Agent. The Collateral Agent, in
accordance with the Intercreditor Agreement, may from time to time assign the Secured Obligations and any portion thereof and/or the Pledged Collateral and any portion thereof, and the assignee shall be entitled to all of the rights and remedies of
the Collateral Agent under this Pledge Agreement in relation thereto. 
  
 (c) The Collateral Agent’s Duty of Care. Other than the exercise of reasonable care to assure the safe custody of the Pledged Collateral while being held by the Collateral Agent hereunder, the Collateral Agent shall have no duty
or liability to preserve rights pertaining thereto, it being understood and agreed that the Pledgors shall be responsible for preservation of all rights in the Pledged Collateral, and the Collateral Agent shall be relieved of all responsibility for
the Pledged Collateral upon surrendering it or tendering the surrender of it to the Pledgors. The Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if such
Pledged Collateral is accorded treatment substantially equal to that which the Collateral Agent accords its own property, which shall be no less than the treatment employed by a reasonable and prudent agent in the industry, it being understood that
the Collateral Agent shall not have responsibility for (i) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relating to any Pledged Collateral, whether or not the Collateral Agent has
or is deemed to have knowledge of such matters, or (ii) taking any necessary steps to preserve rights against any parties with respect to any of the Pledged Collateral. 
  
 (d) Voting Rights in Respect of the Pledged Collateral. 
  
 (i) So long as no Event of Default shall have occurred and
be continuing, to the extent permitted by law, each Pledgor may exercise any and all voting and other consensual rights pertaining to the Pledged Collateral of such Pledgor or any part thereof for any purpose not inconsistent with the terms of this
Pledge Agreement or the Financing Documents; and 
  
 (ii) Upon the occurrence and during the continuance of an Event of Default, all rights of a Pledgor to exercise the voting and other consensual rights that it would otherwise be entitled to exercise pursuant to paragraph (i) of this
subsection shall cease and all such rights shall thereupon become vested in the Collateral Agent, which shall then have the sole right to exercise such voting and other consensual rights. 
  

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 (e) Dividend Rights in Respect of the Pledged Collateral. 
  
 (i) So long as no Event of Default shall have occurred and
be continuing and subject to Section 4(b) hereof, each Pledgor may receive and retain any and all dividends (other than stock dividends and other dividends constituting Pledged Collateral addressed hereinabove) or interest paid in respect of the
Pledged Collateral to the extent they are allowed under the Financing Documents. 
  
 (ii) Upon the occurrence and during the continuance of an Event of Default: 
  
 (A) all rights of a Pledgor to receive the dividends and interest payments that it would otherwise be
authorized to receive and retain pursuant to paragraph (i) of this subsection shall cease and all such rights shall thereupon be vested in the Collateral Agent, which shall then have the sole right to receive and hold as Pledged Collateral such
dividends and interest payments; and 
  
 (B) all
dividends and interest payments that are received by a Pledgor contrary to the provisions of paragraph (A) of this subsection shall be received in trust for the benefit of the Collateral Agent, shall be segregated from other property or funds of
such Pledgor, and shall be forthwith paid over to the Collateral Agent as Pledged Collateral in the exact form received, to be held by the Collateral Agent as Pledged Collateral and as further collateral security for the Secured Obligations.

  
 (f) Release of Pledged Collateral. If the Collateral
Agent releases any of the Pledged Collateral from this Pledge Agreement or substitutes any of the Pledged Collateral for other Pledged Collateral such release or substitution shall not alter, vary or diminish in any way the force, effect, lien,
pledge or security interest of this Pledge Agreement as to any Pledged Collateral not expressly released or substituted, and this Pledge Agreement shall continue as a first priority lien on all Pledged Collateral not expressly released or
substituted. 
  
 11. Rights of Majority Secured Parties.
All rights of the Collateral Agent hereunder, if not exercised by the Collateral Agent, may be exercised by the Majority Secured Parties. 
  
 12. Application of Proceeds. Upon the occurrence and during the continuation of an Event of Default, any payments in respect of the Secured
Obligations and any proceeds of the Pledged Collateral, when received by the Collateral Agent or any of the holders of the Secured Obligations in cash or its equivalent, will be applied in reduction of the Secured Obligations in the order set forth
in the Intercreditor Agreement or other document relating to the Secured Obligations, and each Pledgor irrevocably waives the right to direct the application of such payments and proceeds and acknowledges and agrees that the Collateral Agent shall
have the continuing and exclusive right to apply and reapply any and all such payments and proceeds in the order set forth in the Intercreditor Agreement, notwithstanding any entry to the contrary upon any of its books and records. 
  
 13. Continuing Agreement. 
  
 (a) This Pledge Agreement shall be a continuing agreement in every respect
and shall remain in full force and effect so long as any of the Secured Obligations remains outstanding and until all of the commitments relating thereto have been terminated (other than any obligations with respect to the indemnities and the
representations and warranties set forth in the Financing Documents). Upon such payment and termination, this Pledge Agreement shall be automatically terminated and the Collateral Agent and the holders of the Secured Obligations shall, upon the
request and at the expense of the Pledgors, forthwith release all of its liens and security interests hereunder and shall execute and deliver 
  

 10 

 all UCC termination statements and/or other documents reasonably requested by the Pledgors evidencing such termination.
Notwithstanding the foregoing, all releases and indemnities provided hereunder shall survive termination of this Pledge Agreement. 
  
 (b) This Pledge Agreement shall continue to be effective or be automatically reinstated, as the case may be, if at any time payment, in whole or in part,
of any of the Secured Obligations is rescinded or must otherwise be restored or returned by the Collateral Agent or any holder of the Secured Obligations as a preference, fraudulent conveyance or otherwise under any bankruptcy, insolvency or similar
law, all as though such payment had not been made; provided that in the event payment of all or any part of the Secured Obligations is rescinded or must be restored or returned, all reasonable costs and expenses (including, without limitation,
attorneys’ fees, the allocated cost of internal counsel and disbursements) incurred by the Collateral Agent or any holder of the Secured Obligations in defending and enforcing such reinstatement shall be deemed to be included as a part of the
Secured Obligations. 
  
 14. Amendments and Waivers. This
Pledge Agreement and the provisions hereof may not be amended, waived, modified, changed, discharged or terminated except by a written instrument executed by the Pledgors and the Collateral Agent; provided, however, that (i) the
Collateral Agent may not enter into any such amendment, waiver, supplement or modification without the prior written consent of the Majority Secured Parties and (ii) the Collateral Agent may not enter into an amendment or other modification of this
Section 14 without the prior written consent of all the Secured Parties. 
  
 15. Successors in Interest. This Pledge Agreement shall create a continuing security interest in the Collateral and shall be binding upon each Pledgor, its successors and assigns, and shall inure, together with
the rights and remedies of the Collateral Agent and the holders of the Secured Obligations hereunder, to the benefit of the Collateral Agent and the holders of the Secured Obligations and their successors and permitted assigns; provided,
however, that none of the Pledgors may assign its rights or delegate its duties hereunder without the prior written consent of the Majority Secured Parties. To the fullest extent permitted by law, each Pledgor hereby releases the Collateral Agent
and each holder of the Secured Obligations, and their respective successors and assigns, from any liability for any act or omission relating to this Pledge Agreement or the Collateral, except for any liability arising from the gross negligence or
willful misconduct of the Collateral Agent or such holder, or their respective officers, employees or agents. 
  
 16. Notices. All notices and other communications provided for hereunder shall be in writing (including by facsimile transmission). All such
written notices shall be mailed, faxed or delivered to the applicable address, facsimile number or (subject to subsection (c) below) electronic mail address, specified for such Person on Schedule 1 hereto or to such other address, facsimile
number, electronic mail address or telephone number as shall be designated by such party in a notice to the other parties. All such notices and other communications shall be deemed to be given or made upon the earlier to occur of (i) actual receipt
by the relevant party hereto and (ii) (A) if delivered by hand or by courier, when signed for by or on behalf of the relevant party hereto; (B) if delivered by mail, four Business Days after deposit in the mails, postage prepaid; (C) if delivered by
facsimile, when sent and receipt has been confirmed by telephone; and (D) if delivered by electronic mail (which form of delivery is subject to the provisions of subsection (c) below), when delivered. 
  
 17. Counterparts. This Pledge Agreement may be executed in any number
of counterparts, each of which where so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. It shall not be necessary in making proof of this Pledge Agreement to produce or account for more
than one such counterpart. 
  

 11 

 18. Headings. The headings of the sections and subsections hereof are provided for convenience
only and shall not in any way affect the meaning or construction of any provision of this Pledge Agreement. 
  
 19. Governing Law; Submission to Jurisdiction; Venue. 
  
 (a) THIS PLEDGE AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NORTH CAROLINA APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT THE COLLATERAL AGENT AND EACH HOLDER OF THE SECURED OBLIGATIONS SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW. 
  
 (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS PLEDGE AGREEMENT OR ANY OTHER FINANCING DOCUMENT MAY BE BROUGHT IN
THE COURTS OF THE STATE OF NORTH CAROLINA SITTING IN CHARLOTTE, NORTH CAROLINA OR OF THE UNITED STATES FOR THE WESTERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS PLEDGE AGREEMENT, EACH PLEDGOR AND THE COLLATERAL AGENT CONSENTS,
FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH PLEDGOR AND THE COLLATERAL AGENT IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM
NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS PLEDGE AGREEMENT OR ANY OTHER FINANCING DOCUMENT OR OTHER DOCUMENT RELATED THERETO. EACH PLEDGOR AND THE
COLLATERAL AGENT WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE. 
  
 20. Waiver of Right to Trial by Jury. 
  
 EACH PARTY TO THIS PLEDGE AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS
PLEDGE AGREEMENT OR ANY OTHER FINANCING DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS PLEDGE AGREEMENT OR ANY OTHER FINANCING DOCUMENT, OR THE TRANSACTIONS
RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT
TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS PLEDGE AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

  
 21. Severability. If any provision of this Pledge
Agreement is determined to be illegal, invalid or unenforceable, such provision shall be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or
unenforceable provisions. 
  

 12 

 22. Entirety. This Pledge Agreement, the other Financing Documents and the other documents
relating to the Secured Obligations represent the entire agreement of the parties hereto and thereto, and supersede all prior agreements and understandings, oral or written, if any, including any commitment letters or correspondence relating to the
Financing Documents, any other documents relating to the Secured Obligations, or the transactions contemplated herein and therein. 
  
 23. Survival. All representations and warranties of the Pledgors hereunder shall survive the execution and delivery of this Pledge Agreement, the
other Financing Documents and the other documents relating to the Secured Obligations, the delivery of any promissory notes delivered thereunder and the extension of credit thereunder or in connection therewith. 
  
 24. Other Security. To the extent that any of the Secured Obligations
are now or hereafter secured by property other than the Pledged Collateral (including, without limitation, real and other personal property owned by a Pledgor), or by a guarantee, endorsement or property of any other Person, then the Collateral
Agent shall have the right to proceed against such other property, guarantee or endorsement upon the occurrence of any Event of Default, and the Collateral Agent shall have the right, in its sole discretion, to determine which rights, security,
liens, security interests or remedies the Collateral Agent shall at any time pursue, relinquish, subordinate, modify or take with respect thereto, without in any way modifying or affecting any of them or the Secured Obligations or any of the rights
of the Collateral Agent or the holders of the Secured Obligations under this Pledge Agreement, under any of the other Financing Documents or under any other document relating to the Secured Obligations. 
  
 25. Joint and Several Obligations of Pledgors. 
  
 (a) Each of the Pledgors is accepting joint and several liability hereunder
in consideration of the financial accommodation to be provided by the holders of the Secured Obligations, for the mutual benefit, directly and indirectly, of each of the Pledgors and in consideration of the undertakings of each of the Pledgors to
accept joint and several liability for the obligations of each of them. 
  
 (b) Each of the Pledgors jointly and severally hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor, joint and several liability with the other Pledgors with respect to the payment and performance
of all of the Secured Obligations arising under this Pledge Agreement, the other Financing Documents and any other documents relating to the Secured Obligations, it being the intention of the parties hereto that all the Secured Obligations shall be
the joint and several obligations of each of the Pledgors without preferences or distinction among them. 
  
 [Signature Pages Follow] 
  

 13 

 Each of the parties hereto has caused a counterpart of this Pledge Agreement to be duly executed and
delivered as of the date first above written. 
  

					
	PLEDGORS:                                    
        	  	 SCHOOL SPECIALTY, INC.,
 a Wisconsin
corporation

			
	 	  	By:	 	  

	 	  	Name:	 	Mary M. Kabacinski
	 	  	Title:	 	Chief Financial Officer
		
	PLEDGORS:	  	 CHILDCRAFT EDUCATION CORP.,
 a New
York corporation

	 	  	 CLASSROOMDIRECT.COM, LLC,
 a Delaware
limited liability company

	 	  	 BIRD-IN-HAND WOODWORKS, INC.,
 a New
Jersey corporation

	 	  	 SPORTIME, LLC,
 a Delaware limited
liability company

	 	  	 GLOBAL VIDEO, LLC,
 a Wisconsin
limited liability company

	 	  	 PREMIER AGENDAS, INC.,
 a
Washington corporation
 FREY SCIENTIFIC, INC.,
 a Delaware
corporation
 AMALGAMATED WIDGETS, INC.,
 a Wisconsin
corporation
 SAX ARTS & CRAFTS, INC.,
 a Delaware
corporation
 CALIFONE INTERNATIONAL, INC.,
 a Delaware
corporation

	 	  
	 	  
	 	  
	 	  
			
	 	  	By:	 	  

	 	  	Name:	 	Mary M. Kabacinski
	 	  	Title:	 	Treasurer

  
 Accepted and agreed to as of the date
first above written. 
  

			
	 BANK OF AMERICA, N.A.,
 as Collateral
Agent

		
	By:	 	  

	Name:	 	 
	Title:	 	 

 Schedule 1 
  

Notice Addresses 
  

	1.	Pledgors: 

  
 c/o School Specialty, Inc. 
 W6316 Design Drive 
 Greenville, Wisconsin 54942 
 Attention:        Mary M. Kabacinski 
 Telephone:      920-882-5852

 Facsimile:       920-882-5863 
  

	2.	Collateral Agent: 

  
 Bank of America, N.A., as Collateral Agent 
 1455 Market St 
 CA5-701-05-19 
 San Francisco, CA 94103 
 Attention:        Anthea Del Bianco 
 Telephone:      415.436.2776 
 Facsimile:       415.503.5101 

 Schedule 2(a) 
  
 Pledged Stock 
  

									
	 Pledgor

	  	 Issuer

	  	 Number of
 Shares

	  	 Certificate
 Number

	  	Percentage
Ownership Pledged

	 School Specialty, Inc.
	  	ClassroomDirect.com, LLC	  	1	  	1	  	100%
	 School Specialty, Inc.
	  	Childcraft Education Corp.	  	1,000	  	1	  	100%
	 School Specialty, Inc.
	  	Sportime, LLC	  	N/A	  	N/A	  	100%
	 School Specialty, Inc.
	  	Global Video, LLC	  	100	  	1	  	100%
	 School Specialty, Inc.
	  	New School, Inc.	  	100	  	1	  	100%
	 School Specialty, Inc.
	  	Frey Scientific, Inc.	  	100	  	1	  	100%
	 School Specialty, Inc.
	  	Premier Agendas, Inc.	  	11,200	  	52	  	100%
	 School Specialty, Inc.
	  	Premier School Agendas, Ltd.	  	65	  	11AC	  	65%
	 School Specialty, Inc.
	  	Amalgamated Widgets, Inc.	  	100	  	1	  	100%
	 School Specialty, Inc.
	  	Sax Arts & Crafts, Inc.	  	100	  	1	  	100%
	 Childcraft Education Corp.
	  	Bird-in-Hand Woodworks, Inc.	  	5	  	2	  	100%

 Schedule 4(a) 
  
 Form of Irrevocable Stock Power 
  
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to 
  
 the following shares of capital stock of
                                        ,
a                          corporation: 
  

			
	 Number of Shares

	 	 Certificate Number

  
 and irrevocably appoints
                                        
                     its agent and attorney-in-fact to transfer all or any part of such capital stock and to take all necessary and appropriate
action to effect any such transfer. The agent and attorney-in-fact may substitute and appoint one or more persons to act for him. The effectiveness of a transfer pursuant to this stock power shall be subject to any and all transfer restrictions
referenced on the face of the certificates evidencing such interest or in the certificate of incorporation or bylaws of the subject corporation, to the extent they may from time to time exist. 
  

			
	[HOLDER]
		
	By:	 	  

	Name:	 	 
	Title:Form of Amended and Restated Security Agreement

 Exhibit 4.3 
  

FORM OF 
 AMENDED AND RESTATED SECURITY
AGREEMENT 
  
 THIS AMENDED AND RESTATED SECURITY AGREEMENT (this
“Security Agreement”) dated as of August     , 2005 is by and among the parties identified as “Grantors” on the signature pages hereto and such other parties as may become Grantors hereunder
after the date hereof (individually a “Grantor”, and collectively the “Grantors”) and BANK OF AMERICA, N.A., as collateral agent (in such capacity, the “Collateral Agent”) for the holders of the
Secured Obligations referenced below. 
  
 W I T N E S S E T H

  
 WHEREAS, a $250 million revolving credit facility has been
established in favor of School Specialty, Inc., a Wisconsin corporation (the “Borrower”), pursuant to the Amended and Restated Credit Agreement (as amended, modified, supplemented and extended from time to time, the
“Revolver Credit Agreement”) dated as April 11, 2003 among the Borrower, the guarantors identified therein, the lenders identified therein and Bank of America, N.A., as administrative agent; 
  
 WHEREAS, a $100 million term loan facility has been established in favor of
the Borrower pursuant to the Term Loan Credit Agreement (as amended, modified, supplemented and extended from time to time, the “Term Loan Credit Agreement”) dated as of the date hereof among the Borrower, the guarantors identified
therein, the lenders identified therein and Bank of America, N.A. as administrative agent; 
  
 WHEREAS, pursuant to that Intercreditor and Collateral Agency Agreement (as amended, modified, supplemented or extended, the “Intercreditor Agreement”) dated as of the date hereof among the Revolver
Agent, on behalf of itself and the Revolver Lenders, and the Term Loan Agent, on behalf of itself and the Term Loan Lenders, the parties thereto have appointed the Collateral Agent as agent for purposes of (a) perfecting a security interest in the
Collateral (as defined below) and (b) exercising such other actions and rights with respect to the Collateral provided to the Collateral Agent thereunder and hereunder; and 
  
 WHEREAS, this Security Agreement is given in amendment to, restatement of and substitution for the Amended and Restated
Security Agreement dated as of April 11, 2003 among the Grantors and Bank of America, N.A., as administrative agent for the holders of the secured obligations referenced therein. 
  
 NOW, THEREFORE, in consideration of these premises and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows: 
  
 1. Definitions. 
  
 (a) Capitalized terms used
herein and not otherwise defined herein shall have the meanings assigned to such terms in the Intercreditor Agreement. 
  
 (b) The following terms shall have the meanings assigned thereto in the Uniform Commercial Code in effect in the State of North Carolina on the date
hereof: Accession, Account, As-Extracted Collateral, Chattel Paper, Commercial Tort Claim, Commingled Goods, Consumer Goods, Deposit Account, Document, Equipment, Farm Products, Fixtures, General Intangible, Goods, Instrument, Inventory, Investment
Property, Letter-of-Credit Right, Manufactured Home, Proceeds, Software, Standing Timber, Supporting Obligation and Tangible Chattel Paper. 
  
 (c) As used herein, the following terms shall have the meanings set forth below: 
  
 “Collateral” has the meaning provided in Section 2 hereof. 

 “Copyright License” means any written agreement, naming any Grantor as
licensor, granting any right under any Copyright including, without limitation, any thereof referred to in Schedule 6.17 to the Revolver Credit Agreement. 
  
 “Copyrights” means (a) all registered United States copyrights in all Works, now existing
or hereafter created or acquired, all registrations and recordings thereof, and all applications in connection therewith, including, without limitation, registrations, recordings and applications in the United States Copyright Office including,
without limitation, any thereof referred to in Schedule 6.17 to the Revolver Credit Agreement, and (b) all renewals thereof including, without limitation, any thereof referred to in Schedule 6.17 to the Revolver Credit Agreement.

  
 “Debtor Relief Laws” means
the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the
United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally. 
  
 “GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements
of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board, consistently applied and as in effect from time to time. 
  
 “Lien” means any mortgage, pledge,
hypothecation, collateral assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement of any kind or nature whatsoever (including any conditional
sale or other title retention agreement, and any financing lease having substantially the same economic effect as any of the foregoing). 
  
 “Patent License” means any agreement, whether written or oral, providing for the grant by or to a Grantor of any right to
manufacture, use or sell any invention covered by a Patent, including, without limitation, any thereof referred to in Schedule 6.17 to the Revolver Credit Agreement. 
  
 “Patents” means (a) all letters patent of the United States or any other country and all
reissues and extensions thereof, including, without limitation, any letters patent referred to in Schedule 6.17 to the Revolver Credit Agreement, and (b) all applications for letters patent of the United States or any other country and all
divisions, continuations and continuations-in-part thereof, including, without limitation, any thereof referred to in Schedule 6.17 to the Revolver Credit Agreement. 
  
 “Secured Obligations” means, without duplication, (i) all Obligations (as such term is
defined under the Revolver Credit Agreement), (ii) all Obligations (as such term is defined under the Term Loan Credit Agreement) and (iii) all costs and expenses incurred in connection with enforcement and collection of the obligations described in
the foregoing clauses (i) and (ii), including reasonable attorneys’ fees and the allocated cost of internal counsel. 
  
 “Trademark License” means any agreement, written or oral, providing for the grant by or to a Grantor of any right to use
any Trademark, including, without limitation, any thereof referred to in Schedule 6.17 to the Revolver Credit Agreement. 
  
 “Trademarks” means (a) all trademarks, trade names, corporate names, company names, business names, fictitious business
names, trade styles, service marks, logos and other source or 

 business identifiers, and the goodwill associated therewith, now existing or hereafter adopted or
acquired, all registrations and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any state thereof or any other
country or any political subdivision thereof, or otherwise, including, without limitation, any thereof referred to in Schedule 6.17 to the Revolver Credit Agreement, and (b) all renewals thereof. 
  
 “UCC” means the Uniform Commercial Code.

  
 “Work” means any work that
is subject to copyright protection pursuant to Title 17 of the United States Code. 
  
 2. Grant of Security Interest in the Collateral. To secure the prompt payment and performance in full when due, whether by lapse of time, acceleration, mandatory prepayment or otherwise, of the Secured
Obligations, each Grantor hereby grants to the Collateral Agent, for the benefit of the holders of the Secured Obligations, a continuing security interest in, and a right to set off against, any and all right, title and interest of such Grantor in
and to all of the following, whether now owned or existing or owned, acquired, or arising hereafter (collectively, the “Collateral”): 
  
 (a) all Accounts; 
  
 (b) all cash and currency; 
  
 (c) all Chattel Paper; 
  
 (d) those Commercial Tort Claims identified on Schedule 2(d) attached hereto; 
  
 (e) all Copyrights; 
  
 (f) all Copyright Licenses; 
  
 (g) all Deposit Accounts; 
  
 (h) all Documents; 
  
 (i) all Equipment; 
  
 (j) all Fixtures; 
  
 (k) all General Intangibles; 
  
 (l) all Instruments; 
  
 (m) all Inventory; 
  
 (n) all Investment Property; 
  
 (o) all Letter-of-Credit Rights; 
  
 (p) all Patents; 
  
 (q) all Patent Licenses; 

 (r) all Software; 
  
 (s) all Supporting Obligations; 
  
 (t) all Trademarks; 
  
 (u) all Trademark Licenses; 
  
 (v) all other personal property of such Grantor of whatever type or description; and 
  
 (w) to the extent not otherwise included, all Accessions and
all Proceeds of any and all of the foregoing. 
  
 Notwithstanding anything to the contrary contained herein, the security interests granted under this Security Agreement shall not extend to (i) any property that is subject to a Lien securing purchase money indebtedness permitted under the
Financing Documents pursuant to documents that prohibit such Grantor from granting any other Liens in such Property, (ii) any lease, license or other contract if the grant of a security interest in such lease, license or contract in the manner
contemplated by this Security Agreement is prohibited by the terms of such lease, license or contract or by law and would result in the termination of such lease, license or contract, but only to the extent that (A) after reasonable efforts, consent
from the relevant party or parties has not been obtained and (B) any such prohibition could not be rendered ineffective pursuant to the UCC or any other applicable law (including Debtor Relief Laws) or principles of equity or (iii) any
Securitization Related Property (as defined in the Revolver Credit Agreement). 
  
 The Grantors and the Collateral Agent, on behalf of the holders of the Secured Obligations, hereby acknowledge and agree that the security interest created hereby in the Collateral (i) constitutes continuing
collateral security for all of the Secured Obligations, whether now existing or hereafter arising and (ii) is not to be construed as an assignment of any Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks or Trademark Licenses.

  
 3. Provisions Relating to Accounts. 
  
 (a) Anything herein to the contrary notwithstanding, each of the Grantors
shall remain liable under each of the Accounts to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving rise to each such Account. Neither the
Collateral Agent nor any holder of the Secured Obligations shall have any obligation or liability under any Account (or any agreement giving rise thereto) by reason of or arising out of this Security Agreement or the receipt by the Collateral Agent
or any holder of the Secured Obligations of any payment relating to such Account pursuant hereto, nor shall the Collateral Agent or any holder of the Secured Obligations be obligated in any manner to perform any of the obligations of a Grantor under
or pursuant to any Account (or any agreement giving rise thereto), to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency of any performance by any party under any Account
(or any agreement giving rise thereto), to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts that may have been assigned to it or to which it may be entitled at any time or times.

  
 (b) At any time after the occurrence and during the
continuation of an Event of Default, the Collateral Agent shall have the right, but not the obligation, to make test verifications of the Accounts in any manner and through any medium that it reasonably considers advisable, and the Grantors shall
furnish all such assistance and information as the Collateral Agent may require in connection with such test 

 verifications, (ii) upon the Collateral Agent’s request and at the expense of the Grantors, the Grantors shall cause
independent public accountants or others satisfactory to the Collateral Agent to furnish to the Collateral Agent reports showing reconciliations, aging and test verifications of, and trial balances for, the Accounts and (iii) the Collateral Agent in
its own name or in the name of others may communicate with account debtors on the Accounts to verify with them to the Collateral Agent’s satisfaction the existence, amount and terms of any Accounts. 
  
 4. Representations and Warranties. Each Grantor hereby represents and
warrants to the Collateral Agent, for the benefit of the holders of the Secured Obligations, that so long as any of the Secured Obligations remains outstanding and until all of the commitments relating thereto have been terminated: 
  
 (a) Ownership. Each Grantor is the legal and
beneficial owner of its Collateral and has the right to pledge, sell, assign or transfer the same. 
  
 (b) Security Interest/Priority. This Security Agreement creates a valid security interest in favor of the Collateral Agent, for the
benefit of the holders of the Secured Obligations, in the Collateral of such Grantor and, when properly perfected by filing, shall constitute a valid perfected security interest in such Collateral, to the extent such security interest can be
perfected by filing under the UCC, free and clear of all Liens except for Liens permitted under the Financing Documents. 
  
 (c) Types of Collateral. None of the Collateral consists of, or is the Accessions or the Proceeds of, As-Extracted Collateral,
Consumer Goods, Farm Products, Manufactured Homes, or Standing Timber. 
  
 (d) Accounts. (i) Each Account of the Grantors and the papers and documents relating thereto are genuine and in all material respects what they purport to be, (ii) each Account arises out of (A) a bona fide
sale of goods sold and delivered by such Grantor (or is in the process of being delivered) or (B) services theretofore actually rendered by such Grantor to, the account debtor named therein and (iii) no surety bond was required or given in
connection with any Account of a Grantor or the contracts or purchase orders out of which they arose. 
  
 (e) Inventory. No Inventory is held by any Person other than a Grantor pursuant to consignment, sale or return, sale on approval or
similar arrangement. 
  
 (f) Copyrights,
Patents and Trademarks. 
  
 (i) Schedule
6.17 to the Revolver Credit Agreement includes all Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks and Trademark Licenses owned by any Grantor in its own name, or to which any Grantor is a party, as of the date hereof.

  
 (ii) To each Grantor’s knowledge, each
material Copyright, Patent and Trademark of such Grantor is valid, subsisting, unexpired, enforceable and has not been abandoned. 
  
 (iii) Except as set forth in Schedule 6.17 to the Revolver Credit Agreement, none of the material Copyrights, Patents and
Trademarks of any Grantor is the subject of any licensing or franchise agreement. 
  
 (iv) To each Grantor’s knowledge, no holding, decision or judgment has been rendered by any Governmental Authority that would limit,
cancel or question the validity of any material Copyright, Patent or Trademark of any Grantor. 

 (v) No action or proceeding is pending seeking to limit, cancel or question the validity
of any material Copyright, Patent or Trademark of any Grantor, or that, if adversely determined, could reasonably be expected to have a material adverse effect on the value of such Copyright, Patent or Trademark. 
  
 (vi) All applications pertaining to the material Copyrights,
Patents and Trademarks of each Grantor have been duly and properly filed, and all registrations or letters pertaining to such Copyrights, Patents and Trademarks have been duly and properly filed and issued, and all of such Copyrights, Patents and
Trademarks are valid and enforceable. 
  
 5. Covenants.
Each Grantor covenants that, so long as any of the Secured Obligations remains outstanding and until all of the commitments relating thereto have been terminated, such Grantor shall: 
  
 (a) Other Liens. Defend the Collateral against the claims and demands of all other parties claiming
an interest therein other than Liens permitted under the Financing Documents. 
  
 (b) Instruments/Tangible Chattel Paper/Documents. If any amount payable under or in connection with any of the Collateral shall be or become evidenced by any Instrument or Tangible Chattel Paper, or if any
property constituting Collateral shall be stored or shipped subject to a Document, (i) ensure that such Instrument, Tangible Chattel Paper or Document is either in the possession of such Grantor at all times or, if requested by the Collateral Agent,
is immediately delivered to the Collateral Agent, duly endorsed in a manner satisfactory to the Collateral Agent and (ii) ensure that any Collateral consisting of Tangible Chattel Paper is marked with a legend acceptable to the Collateral Agent
indicating the Collateral Agent’s security interest in such Tangible Chattel Paper. 
  
 (c) Perfection of Security Interest. Execute and deliver to the Collateral Agent such agreements, assignments or instruments
(including affidavits, notices, reaffirmations and amendments and restatements of existing documents, as the Collateral Agent may reasonably request) and do all such other things as the Collateral Agent may reasonably deem necessary, appropriate or
convenient (i) to assure to the Collateral Agent the effectiveness and priority of its security interests hereunder, including (A) such instruments as the Collateral Agent may from time to time reasonably request in order to perfect and maintain the
security interests granted hereunder in accordance with the UCC, (B) with regard to Copyrights, a Notice of Grant of Security Interest in Copyrights for filing with the United States Copyright Office in the form of Schedule 5(f)(i) attached
hereto, (C) with regard to Patents, a Notice of Grant of Security Interest in Patents for filing with the United States Patent and Trademark Office in the form of Schedule 5(f)(ii) attached hereto and (D) with regard to Trademarks, a Notice
of Grant of Security Interest in Trademarks for filing with the United States Patent and Trademark Office in the form of Schedule 5(f)(iii) attached hereto, (ii) to consummate the transactions contemplated hereby and (iii) to otherwise
protect and assure the Collateral Agent of its rights and interests hereunder. To that end, each Grantor authorizes the Collateral Agent to file one or more financing statements (with collateral descriptions broader and/or less specific than the
description of the Collateral contained herein) disclosing the Collateral Agent’s security interest in any or all of the Collateral of such Grantor without such Grantor’s signature thereon, and further each Grantor also hereby irrevocably
makes, constitutes and appoints the Collateral Agent, its nominee or any other Person whom the Collateral Agent may designate, as such Grantor’s attorney-in-fact with full power and for the limited purpose to sign in the name of such Grantor
any such financing statements (including renewal statements), amendments and supplements, notices or any similar documents that in the Collateral Agent’s reasonable discretion would be necessary, appropriate or convenient in order to perfect
and maintain perfection of the security interests granted hereunder, such power, being coupled with an interest, being and remaining 

 irrevocable so long as the Secured Obligations remain unpaid and until the commitments relating thereto
shall have been terminated. Each Grantor hereby agrees that a carbon, photographic or other reproduction of this Security Agreement or any such financing statement is sufficient for filing as a financing statement by the Collateral Agent without
notice thereof to such Grantor wherever the Collateral Agent may in its sole discretion desire to file the same. In the event for any reason the law of any jurisdiction other than North Carolina becomes or is applicable to the Collateral of any
Grantor or any part thereof, or to any of the Secured Obligations, such Grantor agrees to execute and deliver all such instruments and to do all such other things as the Collateral Agent in its sole discretion reasonably deems necessary, appropriate
or convenient to preserve, protect and enforce the security interests of the Collateral Agent under the law of such other jurisdiction (and, if a Grantor shall fail to do so promptly upon the request of the Collateral Agent, then the Collateral
Agent may execute any and all such requested documents on behalf of such Grantor pursuant to the power of attorney granted hereinabove). If any Collateral is in the possession or control of a Grantor’s agents and the Collateral Agent so
requests, such Grantor agrees to notify such agents in writing of the Collateral Agent’s security interest therein and, upon the Collateral Agent’s request, instruct them to hold all such Collateral for the account of the holders of the
Secured Obligations and subject to the Collateral Agent’s instructions. Each Grantor agrees to mark its books and records to reflect the security interest of the Collateral Agent in the Collateral. 
  
 (d) Control. Execute and deliver all agreements,
assignments, instruments or other documents as the Collateral Agent shall reasonably request for the purpose of obtaining and maintaining control within the meaning of the UCC with respect to any Collateral consisting of Deposit Accounts, Investment
Property, Letter-of-Credit Rights and Electronic Chattel Paper. 
  
 (e) Collateral held by Warehouseman, Bailee, etc. If any Collateral is at any time in the possession or control of a warehouseman, bailee, agent or processor of such Grantor, (i) notify the Collateral Agent of
such possession or control, (ii) notify such Person of the Collateral Agent’s security interest in such Collateral, (iii) instruct such Person to hold all such Collateral for the Collateral Agent’s account and subject to the Collateral
Agent’s instructions and (iv) use its best efforts to obtain an acknowledgment from such Person that it is holding such Collateral for the benefit of the Collateral Agent. 
  
 (f) Treatment of Accounts. Not grant or extend the time for payment of any Account, or compromise or
settle any Account for less than the full amount thereof, or release any Person or property, in whole or in part, from payment thereof, or allow any credit or discount thereon, other than as normal and customary in the ordinary course of a
Grantor’s business or as required by law. 

 (g) Covenants Relating to Copyrights. Not do any act or knowingly omit to do any
act whereby any material Copyright may become invalidated and (A) not do any act, or knowingly omit to do any act, whereby any material Copyright may become injected into the public domain; (B) notify the Collateral Agent immediately if it knows
that any material Copyright may become injected into the public domain or of any adverse determination or development (including, without limitation, the institution of, or any such determination or development in, any court or tribunal in the
United States or any other country) regarding a Grantor’s ownership of any such Copyright or its validity; (C) take all necessary steps as it shall deem appropriate under the circumstances, to maintain and pursue each application (and to obtain
the relevant registration) and to maintain each registration of each material Copyright owned by a Grantor including, without limitation, filing of applications for renewal where necessary; and (D) promptly notify the Collateral Agent of any
material infringement of any material Copyright of a Grantor of which it becomes aware and take such actions as it shall reasonably deem appropriate under the circumstances to protect such Copyright, including, where appropriate, the bringing of
suit for infringement, seeking injunctive relief and seeking to recover any and all damages for such infringement. 
  
 (h) Covenants Relating to Patents and Trademarks. 
  
 (i) With respect to each material Trademark of such Grantor, (A) continue to use such Trademark on each and
every trademark class of goods applicable to its current line as reflected in its current catalogs, brochures and price lists in order to maintain such Trademark in full force free from any claim of abandonment for non-use, (B) maintain as in the
past the quality of products and services offered under such Trademark, (C) employ such Trademark with the appropriate notice of registration, (D) not adopt or use any mark that is confusingly similar or a colorable imitation of such Trademark
unless the Collateral Agent, for the ratable benefit of the holders of the Secured Obligations, shall obtain a perfected security interest in such mark pursuant to this Security Agreement, and (E) not (and not permit any licensee or sublicensee
thereof to) do any act or knowingly omit to do any act whereby any Trademark may become invalidated. 
  
 (ii) Not do any act, or omit to do any act, whereby any material Patent may become abandoned or dedicated. 
  
 (iii) Notify the Collateral Agent immediately if it knows
that any application or registration relating to any material Patent or Trademark may become abandoned or dedicated, or of any adverse determination or development (including, without limitation, the institution of, or any such determination or
development in, any proceeding in the United States Patent and Trademark Office or any court or tribunal in any country) regarding a Grantor’s ownership of any material Patent or Trademark or its right to register the same or to keep and
maintain the same. 
  
 (iv) Take all reasonable
and necessary steps, including, without limitation, in any proceeding before the United States Patent and Trademark Office, or any similar office or agency in any other country or any political subdivision thereof, to maintain and pursue each
application (and to obtain the relevant registration) and to maintain each registration of its material Patents and Trademarks, including, without limitation, filing of applications for renewal, affidavits of use and affidavits of incontestability.

  
 (v) Promptly notify the Collateral Agent
after it learns that any material Patent or Trademark included in the Collateral is infringed, misappropriated or diluted by a third party and promptly sue for infringement, misappropriation or dilution, to seek injunctive relief where appropriate
and to recover any and all damages for such infringement, misappropriation or dilution, or to take such other actions as it shall reasonably deem appropriate under the circumstances to protect such Patent or Trademark. 

 (i) Commercial Tort Claims. 
  
 (i) Promptly notify the Collateral Agent in writing of the
initiation of any Commercial Tort Claim seeking damages in excess of $5,000,000 before any Governmental Authority by or in favor of such Grantor or any of its Subsidiaries. 
  
 (ii) Execute and deliver such statements, documents and notices and do and cause to be done all such things
as the Collateral Agent may reasonably deem necessary, appropriate or convenient, or as are required by law, to create, perfect and maintain the Collateral Agent’s security interest in any Commercial Tort Claim. 
  
 6. Advances by Holders of the Secured Obligations. On failure of any
Grantor to perform any of the covenants and agreements contained herein, the Collateral Agent may, pursuant to the Intercreditor Agreement, perform the same and in so doing may expend such sums as the Collateral Agent may reasonably deem advisable
in the performance thereof, including, without limitation, the payment of any insurance premiums, the payment of any taxes, a payment to obtain a release of a Lien or potential Lien, expenditures made in defending against any adverse claim and all
other expenditures that the Collateral Agent or the holders of the Secured Obligations may make for the protection of the security hereof or that may be compelled to make by operation of law. All such sums and amounts so expended shall be repayable
by the Grantors on a joint and several basis (subject to Section 23 hereof) promptly upon timely notice thereof and demand therefor, shall constitute additional Secured Obligations and shall bear interest from the date said amounts are expended at
the greater of (a) the default rate specified in the Revolver Credit Agreement for Base Rate Loans and (b) the default rate specified in the Term Loan Credit Agreement for Base Rate Loans. No such performance of any covenant or agreement by the
Collateral Agent or the holders of the Secured Obligations on behalf of any Grantor, and no such advance or expenditure therefor, shall relieve the Grantors of any default under the terms of this Security Agreement, the other Financing Documents or
any other documents relating to the Secured Obligations. The holders of the Secured Obligations may make any payment hereby authorized in accordance with any bill, statement or estimate procured from the appropriate public office or holder of the
claim to be discharged without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax assessment, sale, forfeiture, tax lien, title or claim except to the extent such payment is being contested in good faith by
a Grantor in appropriate proceedings and against which adequate reserves are being maintained in accordance with GAAP. 
  
 7. Remedies. 
  
 (a) General Remedies. Upon the occurrence of an Event of Default and during the continuation thereof, the Collateral Agent and the holders of the
Secured Obligations shall have, in addition to the rights and remedies provided herein, in the Financing Documents, in any other documents relating to the Secured Obligations, or by law (including, without limitation, levy of attachment and
garnishment), the rights and remedies of a secured party under the UCC of the jurisdiction applicable to the affected Collateral and, further, the Collateral Agent may, with or without judicial process or the aid and assistance of others, (i) enter
on any premises on which any of the Collateral may be located and, without resistance or interference by the Grantors, take possession of the Collateral, (ii) dispose of any Collateral on any such premises, (iii) require the Grantors to assemble and
make available to the Collateral Agent at the expense of the Grantors any Collateral at any place and time designated by the Collateral Agent that is reasonably convenient to both parties, (iv) remove any Collateral from any such premises for the
purpose of effecting sale or other disposition thereof, and/or (v) without demand and without advertisement, notice, hearing or process of law, all of which each of the Grantors hereby waives to the fullest extent permitted by law, at any place and
time or times, sell and deliver any or all Collateral held by or for it at public or private sale, by one or more 

 contracts, in one or more parcels, for cash, upon credit or otherwise, at such prices and upon such terms as the
Collateral Agent deems advisable, in its sole discretion (subject to any and all mandatory legal requirements). Each of the Grantors acknowledges that any private sale referenced above may be at prices and on terms less favorable to the seller than
the prices and terms that might have been obtained at a public sale and agrees that such private sale shall be deemed to have been made in a commercially reasonable manner. Neither the Collateral Agent’s compliance with applicable law nor its
disclaimer of warranties relating to the Collateral shall be considered to adversely affect the commercial reasonableness of any sale. In addition to all other sums due the Collateral Agent and the holders of the Secured Obligations with respect to
the Secured Obligations, the Grantors shall pay the Collateral Agent and each of the holders of the Secured Obligations all reasonable documented costs and expenses incurred by the Collateral Agent or any such holder of the Secured Obligations,
including, but not limited to, reasonable attorneys’ fees, the allocated cost of internal counsel and court costs, in obtaining or liquidating the Collateral, in enforcing payment of the Secured Obligations, or in the prosecution or defense of
any action or proceeding by or against the Collateral Agent or the holders of the Secured Obligations or the Grantors concerning any matter arising out of or connected with this Security Agreement, any Collateral or the Secured Obligations,
including, without limitation, any of the foregoing arising in, arising under or related to a case under the Bankruptcy Code. To the extent the rights of notice cannot be legally waived hereunder, each Grantor agrees that any requirement of
reasonable notice shall be met if such notice is personally served on or mailed, postage prepaid, to the Borrower in accordance with the notice provisions of Section 14 hereof at least ten Business Days before the time of sale or other event giving
rise to the requirement of such notice. The Collateral Agent and the holders of the Secured Obligations shall not be obligated to make any sale or other disposition of the Collateral regardless of notice having been given. To the extent permitted by
law, any holder of the Secured Obligations may be a purchaser at any such sale. To the extent permitted by applicable law, each of the Grantors hereby waives all of its rights of redemption with respect to any such sale. Subject to the provisions of
applicable law, the Collateral Agent and the holders of the Secured Obligations may postpone or cause the postponement of the sale of all or any portion of the Collateral by announcement at the time and place of such sale, and such sale may, without
further notice, to the extent permitted by law, be made at the time and place to which the sale was postponed, or the Collateral Agent and the holders of the Secured Obligations may further postpone such sale by announcement made at such time and
place. 
  
 (b) Remedies relating to Accounts. Upon the
occurrence of an Event of Default and during the continuation thereof, whether or not the Collateral Agent has exercised any or all of its rights and remedies hereunder, (i) each Grantor will promptly upon request of the Collateral Agent instruct
all account debtors to remit all payments in respect of Accounts to a mailing location selected by the Collateral Agent and (ii) the Collateral Agent shall have the right to enforce any Grantor’s rights against its customers and account
debtors, and the Collateral Agent or its designee may notify any Grantor’s customers and account debtors that the Accounts of such Grantor have been assigned to the Collateral Agent or of the Collateral Agent’s security interest therein,
and may (either in its own name or in the name of a Grantor or both) demand, collect (including without limitation by way of a lockbox arrangement), receive, take receipt for, sell, sue for, compound, settle, compromise and give acquittance for any
and all amounts due or to become due on any Account, and, in the Collateral Agent’s discretion, file any claim or take any other action or proceeding to protect and realize upon the security interest of the holders of the Secured Obligations in
the Accounts. Each Grantor acknowledges and agrees that the Proceeds of its Accounts remitted to or on behalf of the Collateral Agent in accordance with the provisions hereof shall be solely for the Collateral Agent’s own convenience and that
such Grantor shall not have any right, title or interest in such Accounts or in any such other amounts except as expressly provided herein. The Collateral Agent and the holders of the Secured Obligations shall have no liability or responsibility to
any Grantor for acceptance of a check, draft or other order for payment of money bearing the legend “payment in full” or words of similar import or any other restrictive legend or endorsement or be responsible for determining the
correctness of any remittance. Each Grantor hereby agrees to indemnify the Collateral Agent and the holders of the Secured Obligations from and against all liabilities, damages, losses, actions, claims, judgments, costs, expenses, charges and
reasonable attorneys’ fees (including the allocated cost of internal counsel) suffered or incurred by the Collateral Agent or the 

 holders of the Secured Obligations (each, an “Indemnified Party”) because of the maintenance of the
foregoing arrangements except as relating to or arising out of the gross negligence or willful misconduct of an Indemnified Party or its officers, employees or agents. In the case of any investigation, litigation or other proceeding, the foregoing
indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by a Grantor, its directors, shareholders or creditors or an Indemnified Party or any other Person or any other Indemnified Party is otherwise a
party thereto. 
  
 (c) Access. In addition to the rights
and remedies hereunder, upon the occurrence of an Event of Default and during the continuation thereof, the Collateral Agent shall have the right to enter and remain upon the various premises of the Grantors without cost or charge to the Collateral
Agent, and use the same, together with materials, supplies, books and records of the Grantors for the purpose of collecting and liquidating the Collateral, or for preparing for sale and conducting the sale of the Collateral, whether by foreclosure,
auction or otherwise. In addition, the Collateral Agent may remove Collateral, or any part thereof, from such premises and/or any records with respect thereto, in order to effectively collect or liquidate such Collateral. 
  
 (d) Nonexclusive Nature of Remedies. Failure by the Collateral Agent
or the holders of the Secured Obligations to exercise any right, remedy or option under this Security Agreement, any other Financing Document, any other documents relating to the Secured Obligations, or as provided by law, or any delay by the
Collateral Agent or the holders of the Secured Obligations in exercising the same, shall not operate as a waiver of any such right, remedy or option. No waiver hereunder shall be effective unless it is in writing, signed by the party against whom
such waiver is sought to be enforced and then only to the extent specifically stated, which in the case of the Collateral Agent or the holders of the Secured Obligations shall only be granted as provided herein. To the extent permitted by law,
neither the Collateral Agent, the holders of the Secured Obligations, nor any party acting as attorney for the Collateral Agent or the holders of the Secured Obligations, shall be liable hereunder for any acts or omissions or for any error of
judgment or mistake of fact or law other than their gross negligence or willful misconduct hereunder. The rights and remedies of the Collateral Agent and the holders of the Secured Obligations under this Security Agreement shall be cumulative and
not exclusive of any other right or remedy that the Collateral Agent or the holders of the Secured Obligations may have. 
  
 (e) Retention of Collateral. To the extent permitted under applicable law, in addition to the rights and remedies hereunder, upon the occurrence of
an Event of Default, the Collateral Agent may, after providing the notices required by Sections 9-620 and 9-621 of the UCC or otherwise complying with the requirements of applicable law of the relevant jurisdiction, accept or retain all or any
portion of the Collateral in satisfaction of the Secured Obligations. Unless and until the Collateral Agent shall have provided such notices, however, the Collateral Agent shall not be deemed to have accepted or retained any Collateral in
satisfaction of any Secured Obligations for any reason. 
  
 (f)
Deficiency. In the event that the proceeds of any sale, collection or realization are insufficient to pay all amounts to which the Collateral Agent or the holders of the Secured Obligations are legally entitled, the Grantors shall be jointly
and severally liable for the deficiency (subject to Section 23 hereof), together with interest thereon at the greater of (i) the default rate specified in the Revolver Credit Agreement for Base Rate Loans and (ii) the default rate specified in the
Term Loan Credit Agreement for Base Rate Loans, together with the costs of collection and reasonable attorneys’ fees (including the allocated cost of internal counsel). Any surplus remaining after the full payment and satisfaction of the
Secured Obligations shall be returned to the Grantors or to whomsoever a court of competent jurisdiction shall determine to be entitled thereto. 

 8. Rights of the Collateral Agent. 
  
 (a) Power of Attorney. In addition to other powers of attorney contained herein, each Grantor hereby designates and
appoints the Collateral Agent, on behalf of the holders of the Secured Obligations, and each of its designees or agents, as attorney-in-fact of such Grantor, irrevocably and with power of substitution, with authority to take any or all of the
following actions upon the occurrence and during the continuation of an Event of Default: 
  
 (i) to demand, collect, settle, compromise and adjust, and give discharges and releases concerning the Collateral, all as the Collateral
Agent may reasonably deem appropriate; 
  
 (ii)
to commence and prosecute any actions at any court for the purposes of collecting any of the Collateral and enforcing any other right in respect thereof; 
  
 (iii) to defend, settle or compromise any action brought and, in connection therewith, give such discharge or release as the Collateral
Agent may reasonably deem appropriate; 
  
 (iv)
to receive, open and dispose of mail addressed to a Grantor and endorse checks, notes, drafts, acceptances, money orders, bills of lading, warehouse receipts or other instruments or documents evidencing payment, shipment or storage of the goods
giving rise to the Collateral on behalf of and in the name of such Grantor, or securing, or relating to such Collateral; 
  
 (v) to pay or discharge taxes, liens, security interests or other encumbrances levied or placed on or threatened against the Collateral;

  
 (vi) to direct any parties liable for any
payment in connection with any of the Collateral to make payment of any and all monies due and to become due thereunder directly to the Collateral Agent or as the Collateral Agent shall direct; 
  
 (vii) to receive payment of and receipt for any and all
monies, claims, and other amounts due and to become due at any time in respect of or arising out of any Collateral; 
  
 (viii) to sell, assign, transfer, make any agreement in respect of, or otherwise deal with or exercise rights in respect of, any
Collateral or the goods or services that have given rise thereto, as fully and completely as though the Collateral Agent were the absolute owner thereof for all purposes; 
  
 (ix) to adjust and settle claims under any insurance policy relating thereto; 
  
 (x) to execute and deliver all assignments, conveyances,
statements, financing statements, renewal financing statements, security and pledge agreements, affidavits, notices and other agreements, instruments and documents that the Collateral Agent may reasonably deem appropriate in order to perfect and
maintain the security interests and liens granted in this Security Agreement and in order to fully consummate all of the transactions contemplated therein; 
  
 (xi) to institute any foreclosure proceedings that the Collateral Agent may reasonably deem appropriate; and 

 (xii) to do and perform all such other acts and things as the Collateral Agent may
reasonably deem appropriate or convenient in connection with the Collateral. 
  
 This power of attorney is a power coupled with an interest and shall be irrevocable for so long as any of the Secured Obligations shall remain outstanding and until all of the commitments relating thereto shall have
been terminated. The Collateral Agent shall be under no duty to exercise or withhold the exercise of any of the rights, powers, privileges and options expressly or implicitly granted to the Collateral Agent in this Security Agreement, and shall not
be liable for any failure to do so or any delay in doing so. The Collateral Agent shall not be liable for any act or omission or for any error of judgment or any mistake of fact or law in its individual capacity or its capacity as attorney-in-fact
except acts or omissions resulting from its gross negligence or willful misconduct. This power of attorney is conferred on the Collateral Agent solely to protect, preserve and realize upon its security interest in the Collateral. 
  
 (b) The Collateral Agent’s Duty of Care. Other than the exercise
of reasonable care to assure the safe custody of the Collateral while being held by the Collateral Agent hereunder, the Collateral Agent shall have no duty or liability to preserve rights pertaining thereto, it being understood and agreed that the
Grantors shall be responsible for preservation of all rights in the Collateral, and the Collateral Agent shall be relieved of all responsibility for the Collateral upon surrendering it or tendering the surrender of it to the Grantors. The Collateral
Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if such Collateral is accorded treatment substantially equal to that which the Collateral Agent accords its own property,
which shall be no less than the treatment employed by a reasonable and prudent agent in the industry, it being understood that the Collateral Agent shall not have responsibility for taking any necessary steps to preserve rights against any parties
with respect to any of the Collateral. In the event of a public or private sale of Collateral pursuant to Section 7 hereof, the Collateral Agent shall have no obligation to clean, repair or otherwise prepare the Collateral for sale. 
  
 9. Rights of Secured Parties. All rights of the Collateral Agent
hereunder, if not exercised by the Collateral Agent, may be exercised by the Majority Secured Parties. 
  
 10. Application of Proceeds. Upon the occurrence and during the continuation of an Event of Default, any payments in respect of the Secured
Obligations and any proceeds of the Collateral, when received by the Collateral Agent or any of the holders of the Secured Obligations in cash or its equivalent, will be applied in reduction of the Secured Obligations in the order set forth in the
Revolver Credit Agreement, Intercreditor Agreement or other document relating to the Secured Obligations, and each Grantor irrevocably waives the right to direct the application of such payments and proceeds and acknowledges and agrees that the
Collateral Agent shall have the continuing and exclusive right to apply and reapply any and all such payments and proceeds in the order set forth in the Intercreditor Agreement, notwithstanding any entry to the contrary upon any of its books and
records. 
  
 11. Continuing Agreement. 
  
 (a) This Security Agreement shall be a continuing agreement in every respect
and shall remain in full force and effect so long as any of the Secured Obligations remains outstanding and until all of the commitments relating thereto have been terminated (other than any obligations with respect to the indemnities and the
representations and warranties set forth in the Financing Documents). Upon such payment and termination, this Security Agreement and the liens and security interests of the Collateral Agent hereunder shall be automatically terminated and the
Collateral Agent shall, upon the request and at the expense of the Grantors, execute and deliver all UCC termination statements and/or other documents reasonably requested by the Grantors evidencing such termination. Notwithstanding the foregoing,
all releases and indemnities provided hereunder shall survive termination of this Security Agreement. 

 (b) This Security Agreement shall continue to be effective or be automatically reinstated, as the case
may be, if at any time payment, in whole or in part, of any of the Secured Obligations is rescinded or must otherwise be restored or returned by the Collateral Agent or any holder of the Secured Obligations as a preference, fraudulent conveyance or
otherwise under any bankruptcy, insolvency or similar law, all as though such payment had not been made; provided that in the event payment of all or any part of the Secured Obligations is rescinded or must be restored or returned, all reasonable
costs and expenses (including, without limitation, attorneys’ fees, the allocated cost of internal counsel and disbursements) incurred by the Collateral Agent or any holder of the Secured Obligations in defending and enforcing such
reinstatement shall be deemed to be included as a part of the Secured Obligations. 
  
 12. Amendments and Waivers. This Security Agreement and the provisions hereof may not be amended, waived, modified, changed, discharged or terminated except by a written instrument executed by the Grantors and
the Collateral Agent; provided, however, that (i) the Collateral Agent may not enter into any such amendment, waiver, supplement or modification without the prior written consent of the Majority Secured Parties and (ii) the Collateral
Agent may not enter into an amendment or other modification of this Section 14 without the prior written consent of all the Secured Parties. 
  
 13. Successors in Interest. This Security Agreement shall create a continuing security interest in the Collateral and shall be binding upon each
Grantor, its successors and assigns, and shall inure, together with the rights and remedies of the Collateral Agent and the holders of the Secured Obligations hereunder, to the benefit of the Collateral Agent and the holders of the Secured
Obligations and their successors and permitted assigns; provided, however, that none of the Grantors may assign its rights or delegate its duties hereunder without the prior written consent of the Majority Secured Parties. To the fullest
extent permitted by law, each Grantor hereby releases the Collateral Agent and each holder of the Secured Obligations, their respective successors and assigns and their respective officers, attorneys, employees and agents, from any liability for any
act or omission or any error of judgment or mistake of fact or of law relating to this Security Agreement or the Collateral, except for any liability arising from the gross negligence or willful misconduct of the Collateral Agent or such holder, or
their respective officers, attorneys, employees or agents. 
  
 14.
Notices. All notices and other communications provided for hereunder shall be in writing (including by facsimile transmission). All such written notices shall be mailed, faxed or delivered to the applicable address, facsimile number or
(subject to subsection (c) below) electronic mail address, specified for such Person on Schedule 1 hereto or to such other address, facsimile number, electronic mail address or telephone number as shall be designated by such party in a notice
to the other parties. All such notices and other communications shall be deemed to be given or made upon the earlier to occur of (i) actual receipt by the relevant party hereto and (ii) (A) if delivered by hand or by courier, when signed for by or
on behalf of the relevant party hereto; (B) if delivered by mail, four Business Days after deposit in the mails, postage prepaid; (C) if delivered by facsimile, when sent and receipt has been confirmed by telephone; and (D) if delivered by
electronic mail (which form of delivery is subject to the provisions of subsection (c) below), when delivered. 
  
 15. Counterparts. This Security Agreement may be executed in any number of counterparts, each of which where so executed and delivered shall be an
original, but all of which shall constitute one and the same instrument. It shall not be necessary in making proof of this Security Agreement to produce or account for more than one such counterpart. 
  
 16. Headings. The headings of the sections and subsections hereof are
provided for convenience only and shall not in any way affect the meaning or construction of any provision of this Security Agreement. 

 17. Governing Law; Submission to Jurisdiction; Venue. 
  
 (a) THIS SECURITY AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NORTH CAROLINA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT THE COLLATERAL AGENT AND THE HOLDERS OF THE SECURED OBLIGATIONS SHALL RETAIN ALL RIGHTS
ARISING UNDER FEDERAL LAW. 
  
 (b) ANY LEGAL ACTION OR PROCEEDING
WITH RESPECT TO THIS SECURITY AGREEMENT OR ANY OTHER FINANCING DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NORTH CAROLINA SITTING IN CHARLOTTE, NORTH CAROLINA OR OF THE UNITED STATES FOR THE WESTERN DISTRICT OF SUCH STATE, AND BY EXECUTION
AND DELIVERY OF THIS SECURITY AGREEMENT, EACH GRANTOR AND THE COLLATERAL AGENT CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH GRANTOR AND THE COLLATERAL AGENT IRREVOCABLY WAIVES ANY
OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS SECURITY
AGREEMENT OR ANY OTHER FINANCING DOCUMENT OR OTHER DOCUMENT RELATED THERETO. EACH GRANTOR AND THE COLLATERAL AGENT WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH
STATE. 
  
 18. Waiver of Right to Trial by Jury.

  
 EACH PARTY TO THIS SECURITY AGREEMENT HEREBY EXPRESSLY WAIVES
ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS SECURITY AGREEMENT OR ANY OTHER FINANCING DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF
THEM WITH RESPECT TO THIS SECURITY AGREEMENT OR ANY OTHER FINANCING DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY
AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS SECURITY AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS
WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 
  
 19. Severability. If any provision of this Security Agreement is determined to be illegal, invalid or unenforceable, such provision shall be fully
severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable provisions. 
  
 20. Entirety. This Security Agreement, the other Financing Documents and the other documents relating to the Secured
Obligations represent the entire agreement of the parties hereto and thereto, and supersede all prior agreements and understandings, oral or written, if any, including any commitment letters or correspondence relating to the Financing Documents, any
other documents relating to the Secured Obligations, or the transactions contemplated herein and therein. 

 21. Survival. All representations and warranties of the Grantors hereunder shall survive the
execution and delivery of this Security Agreement, the other Financing Documents and the other documents relating to the Secured Obligations, the delivery of any promissory notes issued thereunder and the extension of credit thereunder or in
connection therewith. 
  
 22. Other Security. To the extent
that any of the Secured Obligations are now or hereafter secured by property other than the Collateral (including, without limitation, real property and securities owned by a Grantor), or by a guarantee, endorsement or property of any other Person,
then the Collateral Agent shall have the right to proceed against such other property, guarantee or endorsement upon the occurrence of any Event of Default, and the Collateral Agent shall have the right, in its sole discretion, to determine which
rights, security, liens, security interests or remedies the Collateral Agent shall at any time pursue, relinquish, subordinate, modify or take with respect thereto, without in any way modifying or affecting any of them or the Secured Obligations or
any of the rights of the Collateral Agent or the holders of the Secured Obligations under this Security Agreement, under any of the other Financing Documents or under any other document relating to the Secured Obligations. 
  
 23. Joint and Several Obligations of Grantors. 
  
 (a) Each of the Grantors is accepting joint and several liability hereunder
in consideration of the financial accommodation to be provided by the holders of the Secured Obligations, for the mutual benefit, directly and indirectly, of each of the Grantors and in consideration of the undertakings of each of the Grantors to
accept joint and several liability for the obligations of each of them. 
  
 (b) Each of the Grantors jointly and severally hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor, joint and several liability with the other Grantors with respect to the payment and performance
of all of the Secured Obligations arising under this Security Agreement, the other Financing Documents and any other documents relating to the Secured Obligations, it being the intention of the parties hereto that all the Secured Obligations shall
be the joint and several obligations of each of the Grantors without preferences or distinction among them. 
  
 [Signature Pages Follow] 

 Each of the parties hereto has caused a counterpart of this Security Agreement to be duly executed and
delivered as of the date first above written. 
  

					
	GRANTORS:                                    
        	 	 SCHOOL SPECIALTY, INC.,
 a Wisconsin
corporation

			
	 	 	By:	 	  

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

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
			
	 	 	By:	 	  

	 	 	Name:	 	Mary M. Kabacinski
	 	 	Title:	 	Treasurer

  
 Accepted and agreed to as of the date
first above written. 
  

			
	 BANK OF AMERICA, N.A.,
 as Collateral
Agent

		
	By:	 	  

	Name:	 	 
	Title:	 	 

 SCHEDULE 1 
  

Notice Addresses 
  

	1.	Grantors: 

  
 c/o School Specialty, Inc. 
 W6316 Design Drive 
 Greenville, Wisconsin 54942 
 Attention:          Mary M. Kabacinski 
 Telephone:        920-882-5852 
 Facsimile:         920-882-5863 
  

	2.	Collateral Agent: 

  
 Bank of America, N.A., as Collateral Agent 
 1455 Market St 
 CA5-701-05-19 
 San Francisco, CA 94103 
 Attention:          Anthea Del Bianco 
 Telephone:        415.436.2776 
 Facsimile:         415.503.5101 

 SCHEDULE 5(f)(i) 
  
 NOTICE 
  
 OF 
  
 GRANT OF SECURITY INTEREST 
  
 IN 
  
 COPYRIGHTS 
  
 United States Copyright Office 
  
 Ladies and Gentlemen: 
  
 Please be advised that pursuant to the Amended and Restated Security Agreement dated as of August     , 2005 (as the same may
be amended, modified, extended or restated from time to time, the “Security Agreement”) by and among the Grantors party thereto (each a “Grantor” and collectively, the “Grantors”) and Bank of
America, N.A., as Collateral Agent (the “Collateral Agent”) for the holders of the Secured Obligations referenced therein, the undersigned Grantor has granted a continuing security interest in and continuing lien upon the copyrights
and copyright applications shown on Schedule 1 attached hereto to the Collateral Agent for the ratable benefit of the holders of the Secured Obligations. 
  

The undersigned Grantor and the Collateral Agent, on behalf of the holders of the Secured Obligations, hereby acknowledge and agree that the security
interest in the copyrights and copyright applications set forth on Schedule 1 attached hereto (i) may only be terminated in accordance with the terms of the Security Agreement and (ii) is not to be construed as an assignment of any copyright
or copyright application. 
  

			
	Very truly yours,
	
	  

	[Grantor]
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  
 Acknowledged and Accepted:

  

			
	 BANK OF AMERICA, N.A.,
 as Collateral
Agent

		
	By:	 	  

	Name:	 	 
	Title:	 	 

 SCHEDULE 5(f)(ii) 
  
 NOTICE 
  
 OF 
  
 GRANT OF SECURITY INTEREST 
  
 IN 
  
 PATENTS 
  
 United States Patent and Trademark Office 
  
 Ladies and Gentlemen: 
  
 Please be advised that pursuant to the Amended and Restated Security Agreement dated as of August
    , 2005 (the “Security Agreement”) by and among the Grantors party thereto (each a “Grantor” and collectively, the “Grantors”) and Bank of America, N.A., as Collateral
Agent (the “Collateral Agent”) for the holders of the Secured Obligations referenced therein, the undersigned Grantor has granted a continuing security interest in and continuing lien upon the patents and patent applications set
forth on Schedule 1 attached hereto to the Collateral Agent for the ratable benefit of the holders of the Secured Obligations. 
  
 The undersigned Grantor and the Collateral Agent, on behalf of the holders of the Secured Obligations, hereby acknowledge and agree that the security
interest in the patents and patent applications set forth on Schedule 1 attached hereto (i) may only be terminated in accordance with the terms of the Security Agreement and (ii) is not to be construed as an assignment of any patent or patent
application. 
  

			
	Very truly yours,
	
	  

	[Grantor]
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  
 Acknowledged and Accepted:

  

			
	 BANK OF AMERICA, N.A.,
 as Collateral
Agent

		
	By:	 	  

	Name:	 	 
	Title:	 	 

 SCHEDULE 5(f)(iii) 
  
 NOTICE 
  
 OF 
  
 GRANT OF SECURITY INTEREST 
  
 IN 
  
 TRADEMARKS 
  
 United States Patent and Trademark Office 
  
 Ladies and Gentlemen: 
  
 Please be advised that pursuant to the Amended and Restated Security Agreement dated as of August
    , 2005 (the “Security Agreement”) by and among the Grantors party thereto (each a “Grantor” and collectively, the “Grantors”) and Bank of America, N.A., as Collateral
Agent (the “Collateral Agent”) for the holders of the Secured Obligations referenced therein, the undersigned Grantor has granted a continuing security interest in and continuing lien upon the trademarks and trademark applications
set forth on Schedule 1 attached hereto to the Collateral Agent for the ratable benefit of the holders of the Secured Obligations. 
  
 The undersigned Grantor and the Collateral Agent, on behalf of the holders of the Secured Obligations, hereby acknowledge and agree that the security
interest in the trademarks and trademark applications set forth on Schedule 1 attached hereto (i) may only be terminated in accordance with the terms of the Security Agreement and (ii) is not to be construed as an assignment of any trademark
or trademark application. 
  

			
	Very truly yours,
	
	  

	[Grantor]
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  
 Acknowledged and Accepted:

  

			
	 BANK OF AMERICA, N.A.,
 as Collateral
Agent

		
	By:	 	  

	Name:	 	 
	Title:

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