Document:

Exhibit 10.1

DEBT CONVERSION AGREEMENT

THIS DEBT
CONVERSION AGREEMENT (the “Agreement”) is entered into as of September 15, 2015, by and between LifeApps
Digital Media, Inc., a Delaware corporation (the “Company”) and Lawrence P. Roan, a current officer and director
of the Company (“Lender”). The Company and Lender may be referred to herein individually as a “Party” and
collectively as the “Parties.”

Recitals:

WHEREAS,
during the period from April 6, 2014 through September 10, 2015, Lender made unsecured, non-interest bearing advances to the Company
(collectively, the “Loan”) for working capital purposes in the aggregate amount of $55,000 (the “Loan
Amount”); and

WHEREAS,
the Loan is not evidenced by a promissory note or other instrument; and

WHEREAS,
the Parties desire to convert $55,000 of the Loan Amount into shares of the Company’s common stock, $0.001 par value per
share (the “Common Stock”); and

WHEREAS,
the Parties desire to set forth their agreements and understandings with respect thereto.

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

1.            
Conversion to Common Stock. Effective as of the date hereof, $55,000 of the Loan Amount (the “Converted Loan Amount”)
shall be converted into 84,615,385 shares of the Company’s Common Stock (the “Conversion Shares”), at
a conversion price equal to the lesser
of $0.068 or
60% of the lowest
trade price in the
25 trading days
previous to the conversion. (In
the event that Conversion
Shares are not
deliverable by DWAC,
an additional 10% discount
shall apply; if
the shares are
ineligible for deposit into
the DTC system
and only eligible
for Xclearing
deposit, an additional
5% discount
shall apply; and in
the case of
both, an additional
cumulative 15%
discount shall
apply.) Upon execution of this Agreement, the Company shall instruct its transfer
agent to issue such Conversion Shares in the name of Lender.

2.            
Amounts Repaid in Full. For and in consideration of the issuance of the Conversion Shares to Lender, the Converted Loan
Amount shall be deemed to be repaid in full, and the Company shall have no further obligations in connection with the Converted
Loan Amount.

3.            
Waiver and Release. Lender, on behalf of himself, and each of his successors, assigns, representatives and agents (collectively,
the “Releasing Parties”), hereby covenant not to sue and fully, finally and forever completely release the
Company and its present, future and former officers, directors, stockholders, members, employees, agents, attorneys and representatives
(collectively, the “Company Released Parties”) of and from any and all claims, actions, obligations, liabilities,
demands and/or causes of action, of whatever kind or character, whether now known or unknown, which the Releasing Parties have
or might claim to have against the Company Released Parties for any and all injuries, harm, damages (actual and punitive), costs,
losses, expenses, attorneys’ fees and/or liability or other detriment, if any, whenever incurred or suffered by the Releasing
Parties arising from, relating to, or in any way connected with, any fact, event, transaction, action or omission that occurred
or failed to occur with respect to the Converted Loan Amount on or prior to the date of this Agreement.

    

     

    

 

4.            
Restricted Stock. (a) The Conversion Shares to be issued hereunder have not been registered with the United States Securities
and Exchange Commission, or with the securities regulatory authority of any state. The Conversion Shares are subject to restrictions
imposed by federal and state securities laws and regulations on transferability and resale, and may not be transferred assigned
or resold except as permitted under the Securities Act of 1933, as amended (the “Act”), and the applicable
state securities laws, pursuant to registration thereunder or exemption therefrom.

(b)     Lender
understands that the certificates representing the Conversion Shares shall bear a restrictive legend in substantially the following
form (and a stop-transfer order may be placed against transfer of such certificates or other instruments):

THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE
TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES
LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES,
WHICH COUNSEL AND OPINION ARE SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED
IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS.

The legend
set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of the Conversion
Shares upon which it is stamped, if (a) such Conversion Shares are sold pursuant to a registration statement under the Securities
Act, or (b) such holder delivers to the Company an opinion of counsel, reasonably acceptable to the Company, that a disposition
of the Conversion Shares is being made pursuant to an exemption from such registration and that the Shares, after such transfer,
shall no longer be “restricted securities” within the meaning of Rule 144.

5.            
Lender’s Representations. The Company is issuing the Conversion Shares to Lender in reliance upon the following representations
made by Lender:

(a)     Lender
is acquiring the Conversion Shares for investment for its own account and not with the view to, or for resale in connection
with, any distribution thereof. Lender understands and acknowledges that the Conversion Shares have not been registered under
the Act or any state securities laws, by reason of a specific exemption from the registration provisions of the Act and
applicable state securities laws, which depends upon, among other things, the bona fide nature of the investment intent and
other representations of Lender as expressed herein. Lender further represents that it does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant participation to any third person with
respect to any of the Conversion Shares.

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(b)     Lender
(i) has had, and continues to have, access to detailed information with respect to the business, financial condition, results of
operations and prospects of the Company; (ii) has received or has been provided access to all material information concerning an
investment in the Company; and (iii) has been given the opportunity to obtain any additional information or documents from, and
to ask questions and receive answers of, the officers, directors and representatives of the Company to the extent necessary to
evaluate the merits and risks related to an investment in the Company represented by the Conversion Shares.

(c)     As a
result of Lender’s study of the aforementioned information and Lender’s prior overall experience in financial matters,
and Lender’s familiarity with the nature of businesses such as the Company, Lender is properly able to evaluate the capital
structure of the Company, the business of the Company, and the risks inherent therein.

(d)     Lender’s
investment in the Company pursuant to this Agreement is consistent, in both nature and amount, with Lender’s overall investment
program and financial condition.

(e)     Lender’s
financial condition is such that Lender can afford to bear the economic risk of holding the Conversion Shares, and to suffer a
complete loss of Lender’s investment in the Company represented by the Conversion Shares.

(f)      Lender’s
principal business address is as set forth in Section 6(b) hereof.

(g)     Lender
understands that a thinly traded public market now exists, and there may never be an active public market for, the Company’s
Common Stock, including the Conversion Shares.

(h)     All
action on the part of Lender, and its officers, directors and partners, if applicable, necessary for the authorization, execution
and delivery of this Agreement and the performance of all obligations of Lender hereunder and thereunder has been taken, and this
Agreement, assuming due execution by the parties hereto, constitutes valid and legally binding obligations of Lender, enforceable
in accordance with its terms, subject to: (i) judicial principles limiting the availability of specific performance, injunctive
relief, and other equitable remedies and (ii) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter
in effect generally relating to or affecting creditors’ rights.

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(i)      Lender
represents that neither it nor, to its knowledge, any person or entity controlling, controlled by or under common control
with it, nor any person having a beneficial interest in it, nor any person on whose behalf Lender is acting: (i) is a person
listed in the Annex to Executive Order No. 13224 (2001) issued by the President of the United States (Executive Order
Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism); (ii) is
named on the List of Specially Designated Nationals and Blocked Persons maintained by the U.S. Office of Foreign Assets
Control; (iii) is a non-U.S. shell bank or is providing banking services indirectly to a non-U.S. shell bank; (iv) is a
senior non-U.S. political figure or an immediate family member or close associate of such figure; or (v) is otherwise
prohibited from investing in the Company pursuant to applicable U.S. anti-money laundering, anti-terrorist and asset control
laws, regulations, rules or orders (categories (i) through (v), each a “Prohibited Noteholder”). Lender
agrees to provide the Company, promptly upon request, all information that the Company reasonably deems necessary or
appropriate to comply with applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules
and orders. Lender consents to the disclosure to U.S. regulators and law enforcement authorities by the Company and its
affiliates and agents of such information about Lender as the Company reasonably deems necessary or appropriate to comply
with applicable U.S. antimony laundering, anti-terrorist and asset control laws, regulations, rules and orders. If Lender is
a financial institution that is subject to the USA Patriot Act, Noteholder represents that it has met all of its obligations
under the USA Patriot Act. Lender acknowledges that if, following its investment in the Company, the Company reasonably
believes that Lender is a Prohibited Noteholder or is otherwise engaged in suspicious activity or refuses to promptly provide
information that the Company requests, the Company has the right or may be obligated to prohibit additional
investments, segregate the assets constituting the investment in accordance with applicable regulations or immediately
require Lender to transfer the Conversion Shares. Lender further acknowledges that Lender will have no claim against the
Company or any of its affiliates or agents for any form of damages as a result of any of the foregoing actions.

(j)      If Lender
is affiliated with a non-U.S. banking institution (a “Foreign Bank”), or if Lender receives deposits from, makes
payments on behalf of, or handles other financial transactions related to a Foreign Bank, Lender represents and warrants to the
Company that: (1) the Foreign Bank has a fixed address, other than solely an electronic address, in a country in which the Foreign
Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains operating records related to its banking activities;
(3) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank to conduct banking activities;
and (4) the Foreign Bank does not provide banking services to any other Foreign Bank that does not have a physical presence in
any country and that is not a regulated affiliate.

(k)     Lender
realizes that because of the inherently speculative nature of businesses of the kind conducted and contemplated by the Company,
the Company’s financial results may be expected to fluctuate from month to month and from period to period and will, generally,
involve a high degree of financial and market risk that could result in substantial or, at times, even total losses for investors
in securities of the Company.

6.            
Miscellaneous.

(a)     THIS
AGREEMENT IS MADE UNDER, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED SOLELY THEREIN, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW. In
any action between or among any of the Parties arising out of this Agreement, (i) each of the Parties irrevocably and
unconditionally consents and submits to the exclusive jurisdiction and venue of the state and federal courts having
jurisdiction over New York County, New York; (ii) if any such action is commenced in a state court, then, subject to
applicable law, no party shall object to the removal of such action to any federal court having jurisdiction over New York
County, New York; (iii) each of the parties irrevocably waives the right to trial by jury; and (iv) each of the parties
irrevocably consents to service of process by first class certified mail, return receipt requested, postage prepared, to the
address at which such party is to receive notice in accordance with this Agreement.

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   (b)     All
notices, requests, demands, claims, and other communications hereunder shall be in writing. Any notice, request, demand, claim
or other communication hereunder shall be deemed duly delivered four business days after it is sent by registered or certified
mail, return receipt requested, postage prepaid, or one business day after it is sent for next business day delivery via a reputable
nationwide overnight courier service, in each case to the intended recipient as set forth below:

	
        If to the Company:

        LifeApps Digital Media, Inc.

        10636 Scripps Court, Suite 166

        San Diego, CA 92131

        Attention:  Robert Gayman

        Telephone:  858.577.0500
	 	
        Copy to (which copy shall not constitute notice
        hereunder):

        CKR Law LLP

        1330 Avenue of the Americas, 14th Floor

        New York, NY 10019

        Attention:  Paul C. Levites, Esq.

        Telephone:  212.259.7300

        Facsimile:  212.259.8200

	
        If to Lender:

        [Lender Name]

        [Lender Address]

         
	 	 

Any
Party may give any notice, request, demand, claim or other communication hereunder using any other means (including personal delivery,
expedited courier, messenger service, telecopy, telex, ordinary mail or electronic mail), but no such notice, request, demand,
claim or other communication shall be deemed to have been duly given unless and until it actually is received by the Party for
whom it is intended. Any Party may change the address to which notices, requests, demands, claims, and other communications hereunder
are to be delivered by giving the other Parties notice in the manner herein set forth.

(c)     This
Agreement constitutes the entire agreement between the Parties and supersedes all prior oral or written negotiations and agreements
between the Parties with respect to the subject matter hereof. No modification, variation or amendment of this Agreement (including
any exhibit hereto) shall be effective unless made in writing and signed by both Parties.

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(d)     Each
Party to this Agreement hereby represents and warrants to the other Party that it has had an opportunity to seek the advice of
its own independent legal counsel with respect to the provisions of this Agreement and that its decision to execute this Agreement
is not based on any reliance upon the advice of any other Party or its legal counsel. Each Party represents and warrants to the
other Party that in executing this Agreement such Party has completely read this Agreement and that such Party understands the
terms of this Agreement and its significance. This Agreement shall be construed neutrally, without regard to the Party responsible
for its preparation.

(e)     Each
Party to this Agreement hereby represents and warrants to the other Party that (i) the execution, performance and delivery of this
Agreement has been authorized by all necessary action by such Party; (ii) the representative executing this Agreement on behalf
of such Party has been granted all necessary power and authority to act on behalf of such Party with respect to the execution,
performance and delivery of this Agreement; and (iii) the representative executing this Agreement on behalf of such Party is of
legal age and capacity to enter into agreements which are fully binding and enforceable against such Party.

(f)      This
Agreement may be executed in any number of counterparts, all of which taken together shall constitute a single instrument.

[The Remainder of this
Page is Left Blank Intentionally. Signature Page Follows.]

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

LIFEAPPS DIGITAL MEDIA,
INC.

By:/s/Robert Gayman

Name:  Robert Gayman

Title:  Chief
Executive Officer

/s/Lawrence P. Roan

Lawrence P. Roan

 

 

 

 

 

 

 

 

 

 

7Exhibit 10.1

EXECUTION VERSION

SECOND AMENDMENT

TO LOAN AGREEMENT

SECOND AMENDMENT TO LOAN AGREEMENT, dated as of September 16, 2015 (this “Agreement”), among SCHOOL SPECIALTY, INC., a Delaware corporation (“Company”), CLASSROOMDIRECT.COM, LLC, a Delaware limited liability company (“Classroom”), SPORTIME, LLC, a Delaware limited liability company (“Sportime”), DELTA EDUCATION, LLC, a Delaware limited liability company (“Delta”), PREMIER AGENDAS, LLC, a Delaware limited liability company (as successor in interest to Premier Agendas, Inc., a Washington corporation, “Premier”), CHILDCRAFT EDUCATION, LLC, a Delaware limited liability company (as successor in interest to Childcraft Education Corp., a New York corporation, “Childcraft”), BIRD-IN-HAND WOODWORKS, LLC, a Delaware limited liability company (as successor in interest to Bird-In-Hand Woodworks, Inc., a New Jersey Corporation, “Bird”), CALIFONE INTERNATIONAL, LLC, a Delaware limited liability company (as successor in interest to Califone International, Inc., a Delaware corporation, “Califone”), SSI GUARDIAN, LLC, a Delaware limited liability company (“SSI”, and together with Classroom, Sportime, Delta, Premier, Childcraft, Bird and Califone collectively, “Subsidiary Borrowers” and each, individually, a “Subsidiary Borrower”), BANK OF AMERICA, N.A. and BANK OF MONTREAL, as lenders (collectively, “Lenders” and each, individually, a “Lender”), BANK OF MONTREAL, as Syndication Agent, and BANK OF AMERICA, N.A., as agent for Lenders (in such capacity, “Agent”).

W I T N E S S E T H:

WHEREAS, Company, Subsidiary Borrowers, Lenders and Agent have entered into that certain Loan Agreement dated as of June 11, 2013 (as amended, supplemented, or otherwise modified from time to time, the “Loan Agreement”; capitalized terms used herein but not otherwise defined herein shall have the meanings given to such terms in the Loan Agreement); 

WHEREAS, pursuant to Section 2.1.4 of the Loan Agreement, the Company delivered written notice dated July 31, 2015, to the Agent which voluntarily reduced the aggregate Commitments to $125,000,000; 

WHEREAS, Company has informed Agent that it desires to make certain amendments to the Loan Agreement;

WHEREAS, Agent and Lenders are willing to make certain amendments to the Loan Agreement, in each case subject to the terms and conditions set forth herein;

929938.04B-CHISR01A - MSW

NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, Company, Subsidiary Borrowers, Lenders and Agent hereby agree as follows:

ARTICLE I

AMENDMENTS

Section 1.1

Amendment to Section 1.1 of the Loan Agreement.  Section 1.1 of the Loan Agreement is hereby amended as of the Effective Time (as defined in Article II below) as follows:

(a)

The definition of “Applicable Margin” is hereby amended by deleting the chart therein and replacing it with the following:

				
	

Level

	Fixed Charge

Coverage Ratio

	

Base Rate

Loans

	

LIBOR

Loans

	I

	≥ 1.75 to 1.00

	0.50%

	1.50%

	II

	≥ 1.25 to 1.00 < 1.75 to 1.00

	0.75%

	1.75%

	III

	< 1.25 to 1:00

	1.00%

	2.00%

(b)

The definition of “Borrowing Base” is hereby amended by deleting the phrase “months of March, April, May, June, July and August” and replacing it with “fiscal months of February, March, April, May, June and July”.

(c)

The definition of “Cash Dominion Trigger Period” is hereby amended and restated in its entirety as follows:

Cash Dominion Trigger Period: the period (a) commencing on any date in which a Specified Default or an Event of Default occurs or Specified Availability for three (3) consecutive Business Days is less than the greater of (i) $12,500,000 and (ii) 10% of the Commitments at such time and (b) continuing until the first date thereafter on which no Specified Default or Event of Default has existed for 30 consecutive days and Specified Availability has been at least the greater of (i) $12,500,000 and (ii) 10% of the Commitments at all times for 30 consecutive days.

(d)

The definition of “Change of Control” is hereby amended by deleting the number “35%” and replacing it with the number “50%”.

(e)

The definition of “Covenant Trigger Period” is hereby amended and restated in its entirety as follows:

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929938.04B-CHISR01A - MSW

Covenant Trigger Period: the period (a) commencing on any date in which Specified Availability is less than the greater of (i) $12,500,000 and (ii) 10% of the Commitments at such time and (b) continuing until the first date thereafter on which Specified Availability has been at least the greater of (i) $12,500,000 and (ii) 10% of the Commitments at all times for 30 consecutive days.

(f)

Clause (iv) of the Definition of “EBITDA” is amended and restated in its entirety as follows:

(A) non-recurring, unusual or extraordinary charges for such period, (B) business optimization expenses and other restructuring charges or reserves (which, for the avoidance of doubt, shall include the effect of inventory optimization programs, facility closure, facility consolidations, duplicative facility costs, retention, severance, systems establishment costs, contract termination costs, future lease commitments and excess pension charges), and (C) cash expenses relating to earn outs and similar obligations; provided that the aggregate amount to be added back pursuant to this clause (iv) shall not exceed (1) for any measurement period ending up to the fiscal month ending in April 2016 (inclusive), 25% of EBITDA for such period, (2) for any measurement period ending in the fiscal months ending in May through July 2016 (inclusive), 20% of EBITDA for such period, (3) for any measurement period ending in the fiscal months ending in August through October 2016 (inclusive), 15% of EBITDA for such period, and (4) for each measurement period thereafter, 10% of EBITDA;

(g)

The definition of “Fiscal Year” is hereby amended by deleting the word “April” and replacing it with “December”.

(h)

The definition of “Fixed Charges” is hereby amended by (i) deleting the word “and” immediately after the phrase “in connection with asset sales” and replacing it with a comma, and (ii) adding the phrase “and (z) voluntary principal payments in respect of the Term Loan Facility and other Borrowed Money (to the extent, in the case of revolving Indebtedness, accompanied by a permanent reduction in commitments) other than Obligations” immediately after the phrase “(y) payments of the Obligations”.

(i)

The definition of “Payment Conditions” is hereby amended by adding the word “Specified” immediately before the word “Availability” in each of clauses (b), (c) and (e).

(j)

The definition of “Revolver Termination Date” is hereby amended and restated in its entirety as follows:  

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929938.04B-CHISR01A - MSW

Revolver Termination Date: September 16, 2020, (the “Scheduled Maturity Date”; provided that the Revolver Termination Date shall automatically become March 12, 2019 unless the Term Loan Facility has been repaid, prepaid, refinanced, redeemed, exchanged, amended or otherwise defeased or discharged prior to such date (in the case of any refinancing or amendment, to a date that is at least 90 days after the Scheduled Maturity Date).

(k)

Adding the definition “Specified Availability” as follows:

Specified Availability: as of any date of determination and without duplication, the sum of (a) Availability and (b) during the months of July, August and September, Suppressed Availability; provided that for the purpose of calculating Specified Availability during the fiscal months of July, August and September, not more than 50% of any threshold or test based on Specified Availability may be satisfied with Suppressed Availability; provided further that for purposes of testing whether Payment Conditions are met during the fiscal months of July, August and September, Suppressed Availability used to satisfy such threshold or test shall be limited to $6,250,000.

(l)

Adding the definition “Suppressed Availability” as follows:

Suppressed Availability: an amount equal to the greater of (i) the difference between clause (ii) of the definition of Borrowing Base, minus the aggregate Commitments and (ii) zero.

(m)

The definition of “Syndication Agent” is hereby amended and restated in its entirety as follows:

Syndication Agent: Bank of Montreal.

(n)

The definition of “Unused Line Fee Rate” is hereby amended by (i) deleting “0.50%” and replacing it with “0.375%” and (ii) deleting “0.375%” and replacing it with “0.25%”.

Section 1.2

Amendment to Section 10.1.14(b) of the Loan Agreement. Section 10.1.14(b) of the Loan Agreement is hereby amended by (i) adding the phrase “or the creation of any Subsidiary” immediately after the phrase “In connection with any Permitted Acquisition” and (ii) adding “or any created Subsidiary” immediately after each occurrence of the phrase “acquired Subsidiary”.

Section 1.3

Amendment to Section 10.1.2(f) of the Loan Agreement. Section 10.1.2(f) of the Loan Agreement is hereby amended by deleting the phrase “prior to” and replacing it with the word “after”.

4

929938.04B-CHISR01A - MSW

Section 1.4

Amendment to Section 10.2.13 of the Loan Agreement. Section 10.2.13 of the Loan Agreement is hereby amended by (i) deleting the phrase “December 31” and replacing with the phrase “the last Saturday in December” and (ii) adding the following at the end thereof:

Effective from the time of any such change in fiscal year, each reference to a “month” or “calendar month” in this Loan Agreement (excluding references with regard to any Interest Period, effectiveness of any change of interest rate, calculation or payment of fees and time periods with respect to Letters of Credit) shall, unless the context shall otherwise require, be deemed a reference to “fiscal month”.

Section 1.5

Amendment to Schedule 1.1(a) of the Loan Agreement. Schedule 1.1(a) of the Loan Agreement is hereby amended and restated in its entirety as follows:

		
	Lender

	Commitment

	Bank of America, N.A.

	$75,000,000.00

	Bank of Montreal

	$50,000,000.00

ARTICLE II

CONDITIONS PRECEDENT TO EFFECTIVENESS

This Agreement shall become effective (the “Effective Time”) when each of the following conditions precedent have been satisfied: 

Section 2.1

Agreement. Company, Subsidiary Borrowers, Lenders and Agent shall have each delivered a duly executed counterpart of this Agreement to Agent.

Section 2.2

Absence of Default. No Default or Event of Default shall exist immediately prior to the occurrence of the Effective Time.

Section 2.3

Representations and Warranties. The representations and warranties of each Obligor in the Loan Documents shall be true and correct on the Effective Time as if made on the Effective Time (unless such representations and warranties relate to an earlier date, in which case such representations and warranties shall have been true and correct as of such earlier date).

Section 2.4

Closing Certificate. Agent shall have received a certificate, dated the Effective Time and executed by a duly authorized officer of Company certifying as to the matters set forth in Sections 2.2 and 2.3.

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929938.04B-CHISR01A - MSW

Section 2.5

Borrowing Base Certificate.  Agent shall have received an update of the Borrowing Base Certificate dated as of September 16, 2015.

Section 2.6

Fees and Expenses.  Company shall have paid to Agent (i) all of Agent‘s reasonable and documented out-of-pocket fees and expenses incurred and invoiced on or prior to the Effective Time, including the reasonable and documented out-of-pocket fees and expenses in connection herewith and including fees, charges and disbursements of counsel (paid directly to such counsel if requested by Agent) and (ii) all fees set forth in that certain Fee Letter between Borrowers and Agent, dated of the date hereof.

Section 2.7

Loan Documents.  Agent shall have received (i) fully executed Security Documents (including supplements thereto) and Borrowers shall have taken such other actions as shall be reasonably requested by Agent to create or perfect Liens intended to be created or perfected by the Loan Documents and (ii) a joinder to the Loan Agreement, in form and substance reasonably satisfactory to Agent, and other such other documents, instruments and certificates as required to be delivered pursuant to the Loan Agreement (including, without limitation, Section 10.1.14(b) of the Loan Agreement) in connection with the joinder of SSI thereto, including delivery of such legal opinions as are reasonably satisfactory to Agent and all documentation and instruments as may be required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations including the Patriot Act. 

ARTICLE III

REPRESENTATIONS, WARRANTIES AND COVENANTS

Section 3.1

Representations and Warranties.  To induce Agent and Lenders to enter into this Agreement, each Obligor represents and warrants that:

(a)

Power and Authority.  Each Obligor is duly authorized to execute, deliver and perform its obligations under this Agreement and the Loan Agreement as amended hereby.  The execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate or limited liability company action of each Obligor and do not (a) require any consent or approval of any holders of Equity Interests of any Obligor, other than those already obtained; (b) contravene the Organic Documents of any Obligor; (c) violate or cause a default under any Applicable Law or Material Contract; or (d) result in or require the imposition of any Lien (other than Permitted Liens) on any Property of any Obligor.

(b)

Enforceability.  This Agreement and the Loan Agreement as amended hereby is a legal, valid and binding obligation of each Obligor, enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance, fraudulent transfer, reorganization, moratorium or similar laws affecting the enforcement of creditors‘ rights generally and by general equitable principles relating to enforceability (whether enforcement is sought by proceedings in equity or at law).

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929938.04B-CHISR01A - MSW

(c)

Governmental Approvals.  No Governmental Approval, and no notice to or filing with, any Governmental Authority or any other third party is required for the due execution, delivery, recordation, filing or performance by any Obligor of this Agreement.

(d)

No Defaults.  No event or circumstance has occurred or exists that constitutes a Default or Event of Default other than the Conversion Event of Default.

ARTICLE IV

MISCELLANEOUS

Section 4.1

Effect of Agreement.  Except as expressly set forth herein, this Agreement shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of Agent or any Lender under the Loan Documents, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Loan Documents, all of which are ratified and affirmed in all respects and shall continue in full force and effect except that, on and after the Effective Time, each reference to the Loan Agreement in the Loan Documents shall mean and be a reference to the Loan Agreement as amended by this Agreement.  Each Obligor hereby confirms that is has reviewed this Agreement and hereby expressly consents to this Agreement and the transactions contemplated hereby and ratifies and affirms all of its obligations under the Loan Documents, including the Guaranty in Section 2 of the Guarantee and Collateral Agreement.  Nothing herein shall be deemed to entitle Company or any Subsidiary Borrower to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Loan Documents in similar or different circumstances.  This Agreement is a Loan Document executed pursuant to the Loan Agreement and shall be construed, administered and applied in accordance with the terms and provisions thereof.

Section 4.2

Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of Obligors, Agent, Lenders, and their respective successors and assigns, except that Obligors shall not have the right to assign their rights or delegate their obligations under this Agreement or any Loan Document.

Section 4.3

Headings.  The headings and captions hereunder are for convenience only and shall not affect the interpretation or construction of this Agreement.

Section 4.4

Severability.  Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be valid under Applicable Law.  If any provision is found to be invalid under Applicable Law, it shall be ineffective only to the extent of such invalidity and the remaining provisions of this Agreement shall remain in full force and effect.

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Section 4.5

Counterparts.  This Agreement may be executed in counterparts, each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement shall become effective when the Agent has received counterparts bearing the signatures of all parties hereto.  Delivery of a signature page to this Agreement by telecopy or other electronic means shall be effective as delivery of a manually executed counterpart of this Agreement.

Section 4.6

Reaffirmation.  By signing this Agreement, each Borrower and Guarantor hereby confirms that (i) the obligations of such Borrower and such Guarantor under the Loan Agreement as amended by this Agreement and the other Loan Documents as amended hereby constitute “Secured Guarantees” under the Guarantee and Collateral Agreement and are entitled to the benefit of the guarantees and security interests set forth in the Security Documents, (ii) the Loan Documents are, and shall continue to be, in full force and effect and are hereby ratified and confirmed in all respects, and (iii) all Liens granted, conveyed or assigned to Agent by such Person pursuant to each Loan Document to which it is a party remain in full force and effect, are not released or reduced, and continue to secure full payment and performance of the Secured Guarantees as amended hereby. 

Section 4.7

GOVERNING LAW; CONSENT TO FORUM; WAIVER.  

(a)

GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAW PRINCIPLES EXCEPT FEDERAL LAWS RELATING TO NATIONAL BANKS.

(b)

CONSENT TO FORUM.  EACH BORROWER HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY FEDERAL OR STATE COURT SITTING IN OR WITH JURISDICTION OVER NEW YORK, IN ANY DISPUTE, ACTION, LITIGATION OR OTHER PROCEEDING RELATING IN ANY WAY TO THIS AGREEMENT, AND AGREES THAT ANY DISPUTE, ACTION, LITIGATION OR OTHER PROCEEDING SHALL BE BROUGHT BY IT SOLELY IN ANY SUCH COURT. EACH BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES ALL CLAIMS, OBJECTIONS AND DEFENSES THAT IT MAY HAVE REGARDING ANY SUCH COURT’S PERSONAL OR SUBJECT MATTER JURISDICTION, VENUE OR INCONVENIENT FORUM. EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 14.3.1 OF THE LOAN AGREEMENT. A final judgment in any proceeding of any such court shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or any other manner provided by Applicable Law.

(c)

Waiver by Obligors.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH BORROWER WAIVES (A) THE 

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RIGHT TO TRIAL BY JURY (WHICH AGENT AND EACH LENDER HEREBY ALSO WAIVES) IN ANY PROCEEDING OR DISPUTE OF ANY KIND RELATING IN ANY WAY TO ANY LOAN DOCUMENTS, OBLIGATIONS OR COLLATERAL.  Each Borrower has reviewed the foregoing waivers with its legal counsel and has knowingly and voluntarily waived its jury trial and other rights following consultation with legal counsel. In the event of litigation, this Agreement may be filed as a written consent to a trial by the court.

Section 4.8

Costs and Expenses.  Company agrees to reimburse Agent for its reasonable, documented out-of-pocket expenses incurred in connection with this Agreement, including the reasonable fees, charges and disbursements of counsel for Agent.

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929938.04B-CHISR01A - MSW

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above.

		
	 
	SCHOOL SPECIALTY, INC.,

as a Borrower and a Guarantor

	 
	 

	 
	 

	 
	By: 

   /s/  Ryan M. Bohr                                                 

	 
	Name: 

  Ryan M. Bohr 

	 
	Title: 

CFO

	 
	 

	 
	CLASSROOMDIRECT.COM, LLC,

as a Borrower and as a Guarantor,

	 
	 

	 
	 

	 
	By:

   /s/  Ryan M. Bohr                                                 

	 
	Name: 

  Ryan M. Bohr

	 
	Title: 

Treasurer

	 
	 

	 
	SPORTIME, LLC,

as a Borrower and as a Guarantor,

	 
	 

	 
	 

	 
	By:

   /s/  Ryan M. Bohr                                                 

	 
	Name: 

  Ryan M. Bohr

	 
	Title: 

Treasurer

	 
	 

	 
	DELTA EDUCATION, LLC,

as a Borrower and as a Guarantor,

	 
	 

	 
	 

	 
	By:

   /s/  Ryan M. Bohr                                                 

	 
	Name: 

  Ryan M. Bohr

	 
	Title: 

Treasurer

	 
	 

	 
	PREMIER AGENDAS, LLC,

as a Borrower and as a Guarantor,

	 
	 

	 
	 

	 
	By:

   /s/  Ryan M. Bohr                                                 

	 
	Name: 

  Ryan M. Bohr

	 
	Title: 

Treasurer

929938.04B-CHISR01A - MSW

		
	 
	CHILDCRAFT EDUCATION, LLC,

as a Borrower and as a Guarantor,

	 
	 

	 
	 

	 
	By:

   /s/  Ryan M. Bohr                                                 

	 
	Name: 

  Ryan M. Bohr

	 
	Title: 

Treasurer

	 
	 

	 
	BIRD-IN-HAND WOODWORKS, LLC,

as a Borrower and as a Guarantor,

	 
	 

	 
	 

	 
	By: 

   /s/  Ryan M. Bohr                                                 

	 
	Name: 

  Ryan M. Bohr 

	 
	Title: 

Treasurer

	 
	 

	 
	CALIFONE INTERNATIONAL, LLC

as a Borrower and as a Guarantor,

	 
	 

	 
	 

	 
	By: 

   /s/  Ryan M. Bohr                                                 

	 
	Name: 

  Ryan M. Bohr

	 
	Title: 

Treasurer

	 
	 

	 
	SSI GUARDIAN, LLC

as a Borrower and as a Guarantor,

	 
	 

	 
	 

	 
	By: 

   /s/  Ryan M. Bohr                                                 

	 
	Name: 

  Ryan M. Bohr

	 
	Title: 

Treasurer

929938.04B-CHISR01A - MSW

		
	 
	BANK OF AMERICA, N.A.,

as Agent and as a Lender

	 
	 

	 
	 

	 
	By:  /s/ Brad H. Breidenbach                                             

	 
	Name:  Brad H. Breidenbach

	 
	Title: 

Senior Vice President

929938.04B-CHISR01A - MSW

		
	 
	BANK OF MONTREAL,

as Syndication Agent and as a Lender

	 
	 

	 
	 

	 
	By:  /s/ Craig Thistlethwaite                                     

	 
	Name: 

Craig Thistlethwaite

	 
	Title: 

Managing Director

929938.04B-CHISR01A - MSW

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