Document:

Amended and Restated Executive Deferred Compensation Plan

 Exhibit 10.1 
 

 
 ALLIANCE DATA SYSTEMS 
 CORPORATION 
 EXECUTIVE DEFERRED 
 COMPENSATION PLAN 
 Amended and restated effective January 1, 2008 

 ALLIANCE DATA SYSTEMS CORPORATION 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
 TABLE OF CONTENTS 
  

			
	ARTICLE I — PREAMBLE	  	1
		
	ARTICLE II — DEFINITIONS	  	1
		
	ARTICLE III — ELIGIBILITY	  	3
		
	ARTICLE IV — CONTRIBUTIONS	  	4
		
	ARTICLE V — LEAVE OF ABSENCE	  	5
		
	ARTICLE VI — VESTING	  	6
		
	ARTICLE VII — FUNDING AND INVESTMENT	  	6
		
	ARTICLE VIII — DISTRIBUTION OF BENEFITS	  	6
		
	ARTICLE IX — AMENDMENT AND TERMINATION	  	7
		
	ARTICLE X — ADMINISTRATION	  	8
		
	ARTICLE XI — MISCELLANEOUS	  	9

  

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 ARTICLE I — PREAMBLE 
 The Alliance Data Systems Corporation Supplemental Executive Retirement Plan (the “SERP”) was established, effective May 1, 1999, to provide an opportunity for a select group of management and highly
compensated employees to defer a portion of their regular compensation and bonuses payable for services rendered to Alliance Data Systems Corporation (“ADSC”) and its participating affiliates and to receive certain employer contributions.
On December 8, 2004, due to changes in the law, the Compensation Committee of the Board of Directors of ADSC took action to freeze the SERP, effective December 31, 2004. Effective January 1, 2005, contributions shall be made to the
Alliance Data Systems Corporation Executive Deferred Compensation Plan (the “Plan”), which is simply the SERP amended, restated, and renamed. The provisions of the SERP, as in effect on December 31, 2004, shall govern any compensation
or employer contribution that is “deferred,” within the meaning of Code Section 409A, prior to January 1, 2005. Compensation and employer contributions deferred on or after such date shall be governed by the provisions of the
Plan. The plan is hereby amended and restated on December 7, 2007 and effective January 1, 2008 to accommodate additional changes in applicable laws and regulations. The purpose of the Plan continues to be to assist in attracting and
retaining qualified individuals to serve as officers and key managers. The Plan is unfunded for tax purposes and for purposes of Title I of ERISA. 
 ARTICLE II — DEFINITIONS 
 2.1 Account means the account maintained on the books of an Employer for the purpose of accounting
for Associate Contributions and Company Contributions, if any, allocated to a Participant. Each Account shall be a bookkeeping entry only and shall be used solely as a device for the measurement and determination of the amounts to be paid to a
Participant, or his or her designated beneficiary, pursuant to the Plan. 
 2.2 ADSC means Alliance Data Systems Corporation. 
 2.3 Alliance or ADSI means ADS Alliance Data Systems, Inc. 
 2.4 Associate means any person receiving compensation for personal services rendered in the employment of an Employer. 
 2.5 Associate
Contributions means both Elective Contributions and Section 415 Contributions. 
 2.6 Change in Control means one of the following events:
(i) the merger, consolidation or other reorganization of ADSC in which its outstanding common stock, $0.01 par value, is converted into or exchanged for a different class of securities of ADSC, a class of securities of any other issuer (except
a direct or indirect wholly owned subsidiary of ADSC), cash, or other property, (ii) the sale, lease or exchange of all or substantially all of the assets of ADSC to any other corporation or entity (except a direct or indirect wholly owned
subsidiary of ADSC), (iii) the adoption by the stockholders of ADSC of a plan of liquidation and dissolution, (iv) the acquisition (other than any acquisition pursuant to any other clause of this definition) by any person or entity other
than (x) Welsh Carson Anderson & Stowe partnerships and partners or (y) Limited Brands, Inc. and its affiliates, including without limitation a 

  

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“group” as contemplated by Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (whether or not such Act is then applicable to
ADSC), of beneficial ownership, as contemplated by such section, of more than twenty percent (20%) (based on voting power) of ADSC’s outstanding capital stock and such person, entity or group either has, or either publicly or by written
notice to ADSC states an intention to seek, a representative member on the Board, (v) the acquisition (other than any acquisition pursuant to any other clause of this definition) by any person, entity or group other than (x) Welsh
Carson Anderson & Stowe partnerships and partners or (y) Limited Brands, Inc. and its affiliates, of beneficial ownership of more than thirty percent (30%) (based on voting power) of ADSC’s outstanding capital stock,
or (vi) as a result of or in connection with a contested election of directors, the persons who were the directors of ADSC before such election shall cease to constitute a majority of the Board. 
 2.7 Code means the Internal Revenue Code of 1986, as amended. 
 2.8
Code Section 401(a)(4) Limit means the limit on the amount of the Retirement Contribution or the Discretionary Profit Sharing Contribution a Participant may receive under the Qualified Plan on account of the nondiscrimination
requirements imposed under Code Section 401(a)(4), as determined by the Benefits Administration Committee of the Qualified Plan in its discretion. 
 2.9 Code Section 401(a)(17) Limit means the limit imposed under Code section 401(a)(17) on the amount of a Participant’s compensation that may be taken into account under the Qualified Plan. This limit is subject to
adjustment each year. 
 2.10 Code Section 415 Limit means the limit imposed under Code section 415 on the amount that may be contributed with
respect to a Participant under the Qualified Plan. This limit is subject to adjustment each year. 
 2.11 Committee means the committee appointed
pursuant to Section 10.1 to administer the Plan. 
 2.12 Company Contribution means a contribution made by an Employer to the Plan pursuant to
Section 4.3 or Section 4.4. 
 2.13 Discretionary Profit Sharing Contribution means the non-matching contribution made by an Employer to the
Qualified Plan pursuant to its section 4.8 in effect as of January 1, 2004. 
 2.14 Eligible Compensation means base salary or wages, performance
based cash incentives, and commissions paid annually to an Associate, increased by the amount of any pre-tax contributions to the Qualified Plan or other benefit plans under section 125 of the Code and by the amount of any Elective Contributions.
Excluded from Eligible Compensation are Company Contributions, Section 415 Contributions, severance payments, disability payments, workers compensation payments, stock option earnings, restricted stock or other equity-based compensation,
referral or sign-on bonuses, service-related cash awards, and gross-up of wages for contest or other earnings. Eligible Compensation in excess of $1 million annually shall not be taken into account under the Plan. 
  

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 2.15 Elective Contributions means contributions directed by a Participant to the Plan pursuant to
Section 4.1. 
 2.16 Employer means Alliance and any other entity affiliated with ADSC that has adopted the Plan with the approval of the
Committee. 
 2.17 ERISA means the Employee Retirement Income Security Act of 1974, as amended. 
 2.18 Incentive Compensation means that portion of a Participant’s Eligible Compensation that is paid as an incentive bonus based on performance, including,
but not limited to commissions, spot bonuses, and annual incentive compensation payments. 
 2.19 Participant means an Associate who is eligible to
participate in the Plan. 
 2.20 Plan means this Alliance Data Systems Corporation Executive Deferred Compensation Plan. 
 2.21 Qualified Plan means the Alliance Data Systems 401(k) and Retirement Savings Plan. 
 2.22 Regular Compensation means a Participant’s base salary or wages. 
 2.23 Retirement Contribution
means the non-matching contribution made to the Qualified Plan pursuant to its Section 4.5 in effect as of January 1, 2004. 
 2.24
Section 415 Contributions means contributions made pursuant to Section 4.2. 
 2.25
Specified Participant means a Participant who as of the date of the Participant’s separation from service, is a key employee (within the meaning of Code Section 416(i) without regard to paragraph (5) thereof) of an Employer at
any time during the year ending on the December 31st (the “Specified Participant Identification Date”) immediately preceding the
12-month period beginning on April 1st (the “Specified Participant Effective Date”) that includes the date of the Participant’s
separation from service. Notwithstanding the foregoing, the Employer may, in accordance with the requirements of Treasury Regulation Section 1.409A-1(i)(3) and (i)(8), designate a date other than December 31st to be the Specified Participant Identification Date, and may, in accordance with the requirements of Treasury Regulation Section 1.409A-1(i)(4) and
(i)(8), designate a date other than April 1st to be the Specified Participant Effective Date. 
 ARTICLE III — ELIGIBILITY 
 3.1 Eligibility. All full time Associates who are on the United States payroll of an Employer are eligible
to participate in the Plan provided (i) the Associate’s Regular Compensation is at least $150,000 on an annual basis, or the Associate’s Eligible Compensation was at least $170,000 as of December 31st, 2003, and has not fallen below that amount in any subsequent year, and (ii) the Associate is a participant in the Qualified Plan. 
 3.2 Enrollment Procedure. Each Participant shall be eligible for a Company Contribution and a Section 415 Contribution without application. To be eligible to
make Elective Contributions, a Participant must complete and file the Enrollment Form approved by the 

  

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Committee prior to the beginning of the calendar year in which the Participant performs the services for which the election is to be effective or, in the
first calendar year in which an Associate becomes eligible to participate in the Plan, no later than thirty (30) days after the first day of such eligibility and effective for services to be performed subsequent to the election. For this
purpose, the first day of eligibility shall be the earlier of (i) the first day of the month that next follows the date that an Associate first satisfies the criteria of Section 3.1; or (ii) the date on which the Associate is first
eligible to participate in any agreement, method, program or other arrangement with respect to which deferrals of compensation are treated, together with deferrals of compensation under the Plan, as having been deferred under a single nonqualified
deferred compensation plan under Section 1.409A-1(c)(2) of the Treasury Regulations. A Participant’s election to make Elective Contributions for a calendar year shall become irrevocable on the last day for filing the Enrollment Form as set
forth in this Section 3.2. If a Participant does not elect to make Elective Contributions before the last day for filing the Enrollment Form for any calendar year, he or she may not make Elective Contributions until the following calendar year.

 3.3 Modification. A Participant may change or revoke an election to make Elective Contributions at any time on or before the last day for filing
the Enrollment Form as set forth in Section 3.2. A Participant may not revoke, change or terminate an Elective Contributions election for the calendar year at any time thereafter. 
 3.4 Ineligible Participant. Notwithstanding any other provisions of this Plan, if the Committee believes that any Participant may not qualify as a member of a group of “management or highly compensated
employees,” as determined in accordance with sections 201(2), 301(a)(3), and 401(a)(l) of ERISA, the Committee in its sole discretion may direct that such Participant shall cease to be eligible to participate in this Plan as of the next
following calendar year. Notwithstanding the foregoing, such Participant’s Elective Contributions, if any, then in effect for the calendar year in which such determination has been made shall continue until the earlier of (i) the end of
such calendar year, or (ii) the date that Elective Contributions would otherwise cease pursuant to Section 8.1 or 8.2. 
 ARTICLE
IV — CONTRIBUTIONS 
 4.1 Elective Contributions. At the time of enrollment, a
Participant may direct an Employer to withhold a percentage of the Regular Compensation and also, provided the enrollment is effective no later than April 1st of the applicable year, the Incentive Compensation earned for services performed in the year for which the enrollment is effective and allocate it to his or her Account. The percentage selected for each type of
Compensation may be any whole number percentage up to fifty (50). 
 4.2 Section 415 Contributions. Whether or not a Participant elects to make
Elective Contributions, the Employer shall allocate to each Participant any contributions to the Qualified Plan that would otherwise have been returned to the Participant on account of the Code Section 415 Limit, except that any such amount
shall be returned to the Participant in cash if it (i) is attributable to after-tax contributions, or (ii) does not exceed $200.00 and the Participant does not have an Account. 
  

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 4.3 Make-Up Retirement Contributions. Whether or not a Participant elects to make Elective Contributions, the
Employer shall allocate to each Participant an amount equal to the amount of the Retirement Contribution, if any, that the Employer could not make to such Participant under the Qualified Plan because of either (i) the Code
Section 401(a)(4) Limit, or (ii) the Code Section 401(a)(17) Limit, reduced, if necessary, to take into account the $1 million limit on Eligible Compensation, provided, however, that if the Participant does not already have an
Account, such allocation shall be made only if the amount to be so allocated exceeds $200.00. If the amount to be allocated does not exceed $200.00, it will be paid in cash. 
 4.4 Make-Up Discretionary Profit Sharing Contributions. Whether or not a Participant elects to make Elective Contributions, the Employer shall allocate to each Participant an amount equal to the amount of the
Discretionary Profit Sharing Contribution, if any, that the Employer could not make to such Participant under the Qualified Plan because of either (i) the Code Section 401(a)(4) Limit, or (ii) the Code Section 401(a)(17) Limit,
reduced, if necessary, to take into account the $1 million limit on Eligible Compensation, provided, however, if the Participant does not already have an Account, such allocation shall be made only if the amount to be so allocated exceeds $200.00.
If the amount to be allocated does not exceed $200.00, it will be paid in cash. 
 4.5 Crediting Contributions. The amount of Eligible Compensation
that a Participant elects to defer pursuant to Section 4.1 shall be credited to the Participant’s Account as of the date such Compensation would otherwise become payable to the Participant. Section 415 Contributions shall be credited
as of the date distributed from the Qualified Plan. Company Contributions shall be credited as of the date such contributions would otherwise have been made under the Qualified Plan. 
 ARTICLE V — LEAVE OF ABSENCE 
 5.1 Paid Leave of Absence. If a Participant is
authorized by an Employer for any reason to take a paid bona fide leave of absence, the Participant shall continue to be considered employed by the Employer for up to six months of such leave, or if longer, for so long as the Participant retains a
right to reemployment with the Employer under an applicable statute or by contract (the “Maximum Leave Period”). Associate Contributions shall continue during such paid leave of absence up to the Maximum Leave Period, and the Participant
shall remain eligible for Company Contributions. 
 5.2 Unpaid Leave of Absence. If a Participant is authorized by the Employer for any reason to take
an unpaid bona fide leave of absence, the Participant shall continue to be considered employed by the Employer during such leave up to the Maximum Leave Period, but Elective Contributions shall cease until the Participant returns to a paid
employment status. Upon such return, Elective Contributions shall resume. Notwithstanding the foregoing, Elective Contributions with respect to any Regular Compensation or Incentive Compensation that would otherwise be payable to the Participant
during a period of leave, up to the Maximum Leave Period, shall be made pursuant to the Participant’s election then in effect for such compensation. The Participant shall remain eligible for Company Contributions and Section 415
Contributions. 
  

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 ARTICLE VI — VESTING 
 6.1 Vesting. Participants are always 100% vested in their Associate Contributions and the earnings on these contributions. Participants shall be 100% vested in their Company Contributions and the earnings
thereon, after being credited with three (3) Years of Vesting Service under the Qualified Plan, and until then shall be totally unvested. If a Participant separates from service and receives a payout of his vested Account at a time when the
Account is not fully vested, the Participant will forfeit the nonvested portion of the Account; and the forfeiture shall not be restored for any reason, including a subsequent reemployment. Forfeitures shall be used to offset future Company
Contributions. Upon termination of the Plan, unallocated forfeitures shall be returned to the Employer. 
 6.2 Change of Control. In the event of a
Change of Control, all Participants shall be 100% vested in their Company Contributions, notwithstanding Section 6.1. 
 ARTICLE VII
— FUNDING AND INVESTMENT 
 7.1 Unfunded Plan. Neither Associate Contributions nor Company Contributions shall be set aside in a trust or
otherwise funded. Any assets of an Employer available to pay Plan benefits shall be subject to the claims of the Employer’s general unsecured creditors and may be used by the Employer in its sole discretion for any purpose. Any payments made to
Participants under the Plan will be made from the general assets of the Employer. 
 7.2 Change of Control. In the event of a Change of Control, ADSC
will establish the type of trust known as a “rabbi trust,” to which will be contributed sufficient assets to fully fund all Accounts. All assets in the rabbi trust will remain subject to the claims of the Employer’s creditors, and a
Participant will continue to have the status of an unsecured creditor with respect to the Employer’s obligation to make benefit payments. 
 7.3
Investment of Accounts. Associate and Company Contributions shall be credited with interest at a rate established by, and adjusted periodically at the sole discretion of, the Committee. The Committee may, in its sole discretion, direct that
the Employer invest the amount credited to an Account, in whole or in part, in such property (real, personal, tangible or intangible), as the Committee may select (collectively the “Investments”), or may direct that the Employer retain the
amount credited as cash to be added to its general assets. The Employer shall be the sole owner and beneficiary of all Investments, and all contracts and other evidences of the Investments shall be registered in the name of the Employer. 

ARTICLE VIII — DISTRIBUTION OF BENEFITS 
 8.1 In-Service Distributions. A Participant who is actively employed by an Employer generally may not
withdraw or otherwise access any amounts credited to an Account. However, at the time a Participant elects to make Elective Contributions, a Participant may elect to have all contributions made pursuant to that election for that year distributed in
any subsequent calendar year, subject to any restriction imposed under Code Section 409A. The distribution shall be made within sixty (60) days of January 1st of the specified year or, if earlier, the date required under Section 8.2. Furthermore, amounts may be withdrawn in the event of an “unforeseeable 

  

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emergency” as defined in Treasury Regulation Section 1.409A-3(i)(3)(i). Any such early withdrawal must be approved by the Committee and may not
exceed the amount reasonably necessary to satisfy the emergency need, taking into account the availability of reimbursement or compensation from insurance or otherwise and the assets of the Participant (to the extent liquidation of such assets would
not cause severe financial hardship), as well as any taxes incurred as a result of the distribution. If the Committee or its delegate approves a distribution on this basis, the distribution shall be made as soon as practicable thereafter and the
Participant’s election to make Elective Contributions shall be cancelled immediately. The Participant shall not be eligible to make subsequent Elective Contributions until the first day of the following calendar year, pursuant to the enrollment
procedure set forth in Section 3.2. 
 8.2 Other Distributions. If a Participant has a “separation from service” as defined in Treasury
Regulation Section 1.409A-1(h)(1) or becomes “disabled” within the meaning of Code Section 409A(a)(2)(C), the value of the Participant’s Associate Contributions, the vested portion of the Company Contributions, and any
accrued interest thereon will be distributed. For this purpose an individual who is receiving severance payments from an Employer as part of a separation agreement shall be considered to have separated from the service of the Employer; provided that
such individual does not otherwise provide bona services to the Employer, whether as an employee or as an independent contractor, at a level greater than twenty percent (20%) of the average level of services performed by the individual over the
immediately preceding thirty-six (36)-month period (or the full period of services if such individual was employed for less than thirty-six (36) months). Payments will be made within ninety (90) days after the Participant becomes eligible
for the distribution; provided, however, that in the case of a Specified Participant, such distribution shall be paid on the date that is six (6) months and one (1) day after the date of the separation, unless the Specified Participant
dies before then, in which case such distribution shall be paid pursuant to Section 8.3. All benefits will be paid in one (1) lump-sum payment, subject to applicable withholding. 
 8.3 Death Benefits. Any vested, undistributed amount credited to a Participant’s Account on the date he or she dies shall be distributed in one lump sum to
the Participant’s designated beneficiary. If the Committee determines there is no valid beneficiary designation on file, or cannot locate the designated beneficiary, benefits will be paid to the Participant’s estate. Payments will be made
within ninety (90) days after the date of the Participant’s death. 
 8.4 Withholding. If the Employer believes it is required to withhold
and pay over any taxes or other amounts from a Participant’s Eligible Compensation pursuant to any state, federal, or local law, such amounts shall, to the extent possible, be withheld from the Participant’s Eligible Compensation before
such amounts are credited under the Plan. Any additional withholding amount required shall be paid by the Participant to the Employer as a condition to the crediting of any contributions to the Participant’s Account. The Employer shall withhold
any required state, federal, or local taxes or other amounts from any benefits payable to a Participant or beneficiary. 
 ARTICLE IX
— AMENDMENT AND TERMINATION 
 9.1 Amendment. ADSC may at any time amend, suspend, or reinstate any or all of the provisions of the Plan,
except that no such amendment, suspension, or reinstatement may adversely affect the vested portion of any Participant’s Account as it existed as of the 

  

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effective date of such amendment, suspension, or reinstatement, without such Participant’s prior written consent, unless the Committee determines, in
its sole discretion, that the amendment is needed to preserve favorable tax treatment. Written notice of any amendment or other action with respect to the Plan shall be given to each Participant. 
 9.2 Termination. ADSC, in its sole discretion, may terminate this Plan at any time and for any reason whatsoever. Upon termination of the Plan, the Committee
shall cause to be distributed to each Participant the entire value of the vested portion of his or her Account as soon as the distribution may be made without adverse tax consequences. To the extent applicable, such distribution may be made pursuant
to a termination and liquidation of the Plan in accordance with the appropriate provisions of Treasury Regulation Section 1.409A-3(j)(4)(ix). The Committee shall take such actions as it deems appropriate, in its sole discretion, to administer
any Accounts existing prior to such termination distributions. 
 ARTICLE X — ADMINISTRATION 
 10.1 Committee. The Committee shall administer the Plan. The members of the Committee shall be Associates who are appointed by, and serve at the pleasure of, the
ADSC Board. The Committee has complete and absolute authority to interpret any provision of the Plan and, in its sole discretion, decide all questions and issues arising under the Plan including, without limitation, questions of fact, eligibility to
participate in the Plan, and the amount of benefits, if any, due under the Plan. Decisions of the Committee are final and binding upon all parties. Additional information about the Plan is available by contacting: 
 Executive Deferred Compensation Plan Committee 
 c/o Vice President, Compensation 
 Alliance Data Systems 
 17655 Waterview Parkway 
 Dallas, TX 75252 
 10.2 Claims
Procedure. In the event a Participant or beneficiary has a dispute concerning his or her benefit, the claim for the benefit shall first be submitted in writing to the Senior Director, Compensation, of Alliance. In the event that the Senior
Director, Compensation, does not provide a response satisfactory to the Participant within ninety (90) days after receipt of the claim, the Participant or named beneficiary may submit the claim in writing, within sixty (60) days thereafter
to the Committee, whose decision regarding the claim shall be final and binding on each Participant or person claiming under the Plan. The claimant shall be notified of the Committee’s decision within sixty (60) days, unless special
circumstances require an extension of time for processing, in which case a decision shall be rendered within a reasonable period of time, but not later than one hundred twenty (120) days after receipt of a request for review. 
 10.3 Participant Statements. A summary of the status of each Participant’s Account, reflecting Associate Contributions, the vested and unvested Company
Contributions, and accrued interest, will be prepared and distributed annually. 
  

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 ARTICLE XI — MISCELLANEOUS 
 11.1 Not a Contract of Employment. This Plan shall not be deemed to constitute a contract between an Employer and any Associate or other person, whether or not in the employ of an Employer. Nothing herein
contained shall be deemed to give any Associate or other person, whether or not in the employ of an Employer any right to be retained in the employ of an Employer, nor to interfere with the right of an Employer to discharge any Associate at any time
or to treat the Associate without any regard to the effect which such treatment might have upon said Associate as a participant of the Plan. 
 11.2
Non-Assignability. Except as may otherwise be required by law, no distribution or payment under the Plan to any Participant, named beneficiary, heirs and successors shall be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance or charge, whether voluntary or involuntary; and any attempt to so anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge the same shall be void. Nor shall any such distribution or payment be in any
way subject to the debts, contracts, liabilities, engagements, or torts of any person entitled to such distribution or payment. If any Participant, named beneficiary, heir, or successor is adjudicated bankrupt or purports to anticipate, alienate,
sell, transfer, assign, pledge, encumber, or charge any such distribution or payment, voluntarily or involuntarily, the Committee, in its discretion, may cancel such distribution or payment or may hold or cause to be held or applied such
distribution or payment, or any part thereof, to or for the benefit of such Participant, named beneficiary, heir or successor in such manner as the Committee shall direct. 
 11.3 Savings Clause. If any provision of this instrument is finally held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof shall continue to be fully
effective. 
 11.4 Governing Law. The provisions of the Plan shall be construed, administered and governed under applicable Federal law and the laws
of the State of Delaware. 
 This amendment and restatement of the Alliance Data Systems Corporation
Executive Deferred Compensation Plan is hereby adopted this 7th day of December, 2007, and is effective as of January 1, 2008. 
  

			
	ALLIANCE DATA SYSTEMS CORPORATION
	
	 

	By:	 	Dwayne H. Tucker
	Title:	 	Executive Vice President, Human Resources

  

 9Share Exchange Agreement

 Exhibit 10.1 
 SHARE EXCHANGE AGREEMENT 
 THIS SHARE EXCHANGE AGREEMENT is made and entered into as of the 29th day
of April, 2009, by and among Home School, Inc. (“HSI”), the stockholders of HSI (the “Sellers”), and Narayan Capital Corp. (“NCC”). 
 W I T N E S S E T H : 
 WHEREAS, The Sellers collectively own 100% of the issued and outstanding
common stock of HSI as set forth on Exhibit A attached hereto; 
 WHEREAS, NCC is registered pursuant to Section 12(g) of the
Exchange Act and subject to the reporting requirements of Section 13 of the Exchange Act; and 
 WHEREAS, NCC desires to reorganize
itself by causing it to issue to the Sellers 289,959,665 shares of NCC’s common stock thereby diluting the existing shareholders’ interest in NCC to 1.5% in exchange for the Sellers’ transfer of their 100% ownership interest in HSI to
NCC, thereby making HSI a wholly owned subsidiary of NCC, and by changing the name of NCC to “Home School Holdings, Inc.” 
 NOW,
THEREFORE, in consideration of the mutual promises and agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of which the parties acknowledge, the parties hereby agree as follows: 
 ARTICLE I 
 PRELIMINARY MATTERS

 Section 1.01. Recitals. The parties acknowledge that the recitals set forth above in the preamble are correct, and are, by
this reference, incorporated herein and are made a part of this Agreement. 
 Section 1.02. Exhibits and Schedules. Exhibits
(which are documents to be executed and delivered at the Closing by the party identified therein or in the provision requiring such delivery) and Schedules (which are attachments setting forth information about a party identified therein or in the
provision requiring such attachment) referred to herein and annexed hereto are, by this reference, incorporated herein and made a part of this Agreement, as if set forth fully herein. 
 Section 1.03. Use of words and phrases. The words “herein,” “hereby,” “hereunder,” “hereof,”
“hereinafter” and any other equivalent words refer to this Agreement as a whole and not to any particular Article, Section or other subdivision hereof. The words, terms and phrases defined herein and any pronoun used herein shall include
the singular, plural and all genders. The word “and” shall be construed as a coordinating conjunction unless the context clearly indicates that it should be construed as a copulative conjunction. 
 Section 1.04. Accounting terms. All accounting terms not otherwise defined herein shall have the meanings assigned to them under generally
accepted accounting principles. 
  

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 Section 1.05. Calculation of time lapse or passage; Action required on holidays. When a
provision of this Agreement requires or provides for the calculation of the lapse or passage of a time period, such period shall be calculated by treating the day on which the event which starts the lapse or passage occurs as zero; provided, that
this provision shall not apply to any provision which specifies a certain day for action or payment, e.g. the first day of each calendar month. Unless otherwise provided, the term “month” shall mean the actual calendar month indicated and
the term “year” shall mean a period of 365 days. If any day on which action is required to be taken or payment is required to be made under this Agreement is not a Business Day (Business Day being a day on which national banks are open for
business where the actor or payor is located), then such action or payment shall be taken or made on the next succeeding Business Day. 
 Section 1.06. Use of titles, headings and captions. The titles, headings and captions of articles, sections, paragraphs and other subdivisions contained herein are for the purpose of convenience only and are not intended to
define or limit the contents of said articles, sections, paragraphs and other subdivisions. 
 ARTICLE II 
 TERMS OF THE TRANSACTION 
 Section 2.01. Share Exchange transaction. 
 (a) On the terms and subject to the conditions set forth in this Agreement,
on the Closing Date, NCC shall issue to the Sellers as set forth on Exhibit A attached hereto 289,959,665 fully paid and non-assessable shares of common stock of NCC representing 98.5% of the issued and outstanding shares of common stock of
NCC, including any of HSI’s option and warrant holders and holders of convertible debt, in exchange for 100% of HSI’s issued and outstanding shares of capital stock, consisting of 289,959,665 shares of common stock, and NCC shall reserve
for issuance 73,949,760 shares of NCC common stock for future issuance subject to the HSI stock options and warrants and 22,402,121 shares of NCC common stock for future issuance subject to HSI convertible debt (the “Share Exchange”). On
the Closing Date, NCC file amended and restated articles of incorporation and adopt amended and restated bylaws in the forms attached hereto as Exhibit B and the name of NCC shall be changed to “Home School Holdings, Inc.”

 (b) On the Closing Date, the Existing Shareholders shall own 5,882,917 shares of common stock of NCC representing 1.5% of the issued and
outstanding shares of common stock of NCC on a fully-diluted basis, including without limitation, any shares issuable to option and warrant holders and holders of convertible debt or other convertible securities of NCC. 
 (c) On the Closing Date, HSI shall pay Fifty Thousand Dollars ($50,000) to the Existing Shareholders as purchase price consideration for the Share
Exchange (the “Cash Payment”). 
 (d) On the Closing Date, HSI shall be acquired and shall become a wholly owned subsidiary of NCC
and all liabilities and obligations of NCC in existence on the Closing Date shall be paid in full. 
 Section 2.02 Exchange of Stock
Certificates. 
 (a) The identity and address of the stock transfer agent (the “Exchange Agent”) will be disclosed at a
reasonable time after the Closing Date. 
  

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 (b) NCC will, promptly after the Closing Date, issue and deliver to the Exchange Agent the share
certificates representing shares of NCC’s Common Stock (each a “New Certificate”). 
 (c) The Exchange Agent, upon receiving
the items specified in subsection (b) hereof, shall promptly mail to each holder of one or more certificates formerly representing HSI Common Stock a notice notifying such holder to surrender his, her or its certificate or certificates to the
Exchange Agent for exchange. Such notice shall be mailed to holders by regular mail at their addresses on the records of HSI. 
 (d) Upon
receipt from a former shareholder of HSI of certificates representing shares of HSI’s Common Stock, the Exchange Agent shall forward to such former shareholder of HSI (i) a New Certificate representing his, her or its shares of Public
Company Common Stock, and (ii) dividends, if any, declared thereon subsequent to the Effective Date (without interest). 
 (e) If any
New Certificate is to be issued in a name other than that in which the certificate formerly representing HSI’s Common Stock (an “Old Certificate”) and surrendered for exchange was issued, the Old Certificate so surrendered shall be
properly endorsed and otherwise in proper form for transfer and the person requesting such exchange shall pay to the Exchange Agent any transfer or other taxes required by reason of the issuance of the New Certificate in any name other than that of
the registered holder of the Old Certificate surrendered, or establish to the satisfaction of the Exchange Agent that such tax has been paid or is not payable. 
 (f) In the event that any Old Certificates have not been surrendered for exchange in accordance with this Agreement on or before the second anniversary of the Closing Date, NCC may at any time thereafter, with or
without notice to the holders of record of such Old Certificates, sell for the accounts of any or all of such holders any or all of the shares of HSI’s Common Stock which such holders are entitled to receive under this Section (the
“Unclaimed Shares”). Any such sale may be made by public or private sale or in such manner and at such times as NCC shall determine. NCC shall not be obligated to make any sale of Unclaimed Shares if it shall determine not to do so, even
if notice of sale of the Unclaimed Shares has been given. The net proceeds of any such sale of Unclaimed Shares shall be held for holders of the unsurrendered Old Certificates, whose unclaimed shares have been sold, to be paid to them upon surrender
of the Old Certificates. From and after any such sale, the sole right of the holders of the unsurrendered Old Certificates whose Unclaimed Shares have been sold shall be the right to collect the net sale proceeds held by NCC for their respective
accounts, and such holders shall not be entitled to receive any interest on such net sale proceeds held by NCC. 
 (g) If any Old
Certificates are not surrendered prior to the date on which such certificates would otherwise escheat to or become the property of any governmental unit or agency, the unclaimed items shall, to the extent permitted by abandoned property and any
other applicable law, become the property of NCC (and to the extent not in its possession shall be paid over to it), free and clear of all claims or interest of any person previously entitled to such claims. Notwithstanding the foregoing, neither
NCC nor its agents or any other person shall be liable to any former holder of HSI’s Common Stock for any property delivered to a public official pursuant to applicable abandoned property, escheat or similar laws. 
  

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 (h) All cash and shares of NCC issued in accordance with the terms hereof shall be deemed to have been
issued in full satisfaction of all rights pertaining to such shares of HSI’s Common Stock and there shall be no further registration of transfers on the records of NCC of shares of HSI’s Common Stock that were outstanding immediately prior
to the Closing Date. If, after the Closing Date, Old Certificates are presented to NCC for any reason, they shall be canceled and exchanged as provided in this Section. 
 (i) In the event that any Old Certificates shall have been lost, stolen or destroyed, NCC shall issue in exchange for such lost, stolen or destroyed Old Certificates, upon the making of an affidavit of that fact by
the holder thereof, the cash and/or certificates representing the shares of NCC’s Common Stock that the shares of HSI were converted into and any dividends or distributions payable pursuant thereto; provided, however, that, as a condition
precedent to the issuance of such cash and certificates representing shares of HSI’s Common Stock and other distributions, the owner of such lost, stolen or destroyed Old Certificates shall indemnify NCC against any claim that may be made
against NCC with respect to the Old Certificates alleged to have been lost, stolen or destroyed. 
 Section 2.03. Federal income tax
treatment. It is the mutual expectation of the parties that the Share Exchange will qualify as a tax-free reorganization under section 368(a) of the Internal Revenue Code of 1986, as amended (the “Code”), and that the business
combination contemplated hereby be accounted for as a reverse acquisition under the purchase method for business combinations. The combination of the two companies is recorded as a recapitalization of HSI, pursuant to which HSI is treated as the
continuing entity. 
 Section 2.04. Transaction costs. Each party shall pay all costs and expenses which it incurs in connection
with this Agreement and the transactions contemplated hereby. 
 Section 2.05. Press releases. No party will issue a press
release regarding the subject matter of this Agreement and the transaction contemplated hereby, either before or after closing, without the prior approval thereof by the other party and its counsel. 
 ARTICLE III 
 CLOSING OF THE TRANSACTION

 Section 3.01. Location, date and time of the Closing. The Closing of the transaction contemplated by this Agreement shall
take place on or before May 8, 2009, at 4:00 p.m. Chicago, Illinois time (“Closing Date”). The Closing shall take place at a location agreed to by the parties. The acts and deliveries which occur on the Closing Date for the purpose of
consummating the transactions contemplated by this Agreement and the event itself are referred to herein as the “Closing”. 
 Section 3.02. NCC’s deliveries at the Closing. At the Closing, NCC will deliver to HSI: 
  

	 	(a)	Certificate of good standing of NCC; 

  

 4 

	 	(b)	Officer’s and Secretary’s and Certificates of NCC in the form set forth in Exhibit C and Exhibit D, respectively; 

  

	 	(c)	An action by written consent of NCC’s board of directors approving the Share Exchange; 

  

	 	(d)	A resignation from each and every member of NCC’s board of directors, officers and employees, together with cancellation of any and all employment and compensation agreements
with the consent of the employee; and 

  

	 	(e)	Articles of Share Exchange. 

 Section 3.03.
HSI’s deliveries at the Closing. At the Closing, HSI will deliver to the stockholders of NCC: 
  

	 	(a)	Certificate of good standing of HSI; 

  

	 	(b)	Officers’ and Secretary’s Certificates of HSI in the form set forth in Exhibit C and Exhibit D, respectively; 

  

	 	(c)	An action by written consent of HSI’s board of directors approving the Share Exchange; and 

  

	 	(d)	Articles of Share Exchange. 

  

	 	(e)	The Cash Payment by certified check or wire transfer in immediately available funds. 

 Section 3.04. Closing Memorandum and receipts. As evidence that all parties deem the Closing to have been completed and the transactions contemplated by this Agreement to have been consummated, the parties
jointly will execute and deliver a Closing Memorandum, in the form of Exhibit E, acknowledging such completion and consummation. 
 Section 3.05. Waiver of conditions. Notwithstanding Section 11.03, any condition to the Closing which is to the benefit of any party and which is not satisfied prior to or at the Closing, excluding nevertheless any
provision of this Agreement which by its terms is to be performed in the future, will be deemed to be waived by the benefited party or otherwise satisfied and waived by virtue of that party executing the Closing Memorandum, except to the extent any
such unsatisfied or unperformed condition is expressly preserved by listing it in the Closing Memorandum for satisfaction or performance after the Closing. 
 Section 3.06. Further assurances. At any time and from time to time after the Closing, at the reasonable request of any party and without further consideration, the other party shall execute and deliver
such other instruments and documents reasonably desirable or necessary to complete and confirm the transactions contemplated by this Agreement. 
 Section 3.07. Conditions precedent to HSI’s obligation to Close. All obligations of NCC hereunder are subject, at the option of HSI, to the fulfillment of each of the following conditions at or prior to the Closing, and NCC
shall exert commercially reasonable efforts to cause each such condition to be so fulfilled: 
 (a) All representations and warranties of NCC
contained herein and in any document delivered pursuant hereto shall be true and correct in all material respects when made and shall be deemed to have been made again and given at and as of the date of the Closing of the transactions contemplated
by this Agreement, and shall then be true and correct in all material respects, except for changes in the ordinary course of business after the date hereof in conformity with the representations, covenants and agreements contained herein.

  

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 (b) All covenants, agreements and obligations required by the terms of this Agreement to be performed by
NCC at or before the Closing shall have been duly and properly performed in all material respects to HSI’s reasonable satisfaction. 
 (c) Since the date of this Agreement there shall not have occurred any material adverse change in NCC’s operating or financial condition, prospects (financial or otherwise), business, properties or assets which may cause a reasonable
investor to make a different investment decision regarding an investment in NCC. 
 (d) All documents required to be delivered to HSI at or
prior to the Closing shall have been so delivered. 
 (e) The transaction contemplated by this Agreement shall have been approved in writing
by NCC’s board of directors. 
 (f) NCC shall have not suffered or incurred a material damage, destruction or loss not fully covered by
insurance and which has a materially adverse affect on its business and operations. 
 (g) HSI shall have received a certificate of good
standing for NCC. 
 (h) HSI shall have received audited financial statements of NCC at and for the years ended December 31, 2007 and
2008, prepared in accordance with generally accepted accounting principles. 
 Section 3.08. Conditions precedent to NCC’s
obligation to Close. All obligations of NCC at the Closing are subject, at the option of NCC, to the fulfillment of each of the following conditions at or prior to the Closing, and HSI shall exert commercially reasonable efforts to cause each
such conditions to be so fulfilled. 
 (a) All representations and warranties of HSI contained herein or in any document delivered pursuant
hereto shall be true and correct in all material respects when made and as of the Closing. 
 (b) All covenants, agreements and obligations
required by the terms of this Agreement to be performed by HSI at or before the Closing shall have been duly and properly performed in all material respects to NCC’s reasonable satisfaction. 
 (c) All documents required to be delivered to NCC at or prior to the Closing shall have been so delivered. 
 (d) The transactions contemplated by this Agreement shall have been approved in writing by HSI’s board of directors. 
 (e) NCC shall have received a certificate of good standing for HSI. 
 (f) NCC shall have received audited financial statements of HSI for the years ended December 31, 2007 and 2008 and pro forma combined consolidated financial statements of HSI and NCC for the year ended
December 31, 2008 prepared in accordance with generally accepted accounting principles. 
  

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 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF THE PARTIES 
 Section 4.01. Representations and warranties
of NCC. NCC (as used in the following representations and warranties with respect to status or condition, “NCC” includes every subsidiary of NCC, all of which are identified in Schedule A) represents and warrants to HSI, as follows:

 (a) NCC and each subsidiary is a duly organized and an existing entity in good standing under the laws of its state of incorporation and
has full corporate power to execute, deliver and perform this Agreement. 
 (b) NCC and each subsidiary is qualified to do business and in
good standing in each state and jurisdiction in which the nature of its activities and ownership of property require it to be qualified as a foreign corporation. 
 (c) All information set forth in registrations and reports filed by NCC pursuant to §§12(g) and 13 under the Exchange Act contain accurate and complete material information as required by such registrations
and reports as of the date of such information reflected therein, except as amended or modified in writing delivered by NCC to HSI; and, all the information NCC has filed through the SEC’s EDGAR website http://www.sec.gov relating to NCC was,
to the best knowledge of NCC, on the date reflected in each such item of information accurate in all material respects and, to the best knowledge of NCC, such information at the date hereof taken as a whole provides full and fair disclosure of all
material information relating to NCC and does not, omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 
 (d) This Agreement has been duly and validly authorized, executed and delivered by NCC and constitutes the legal, valid and binding obligation of NCC
enforceable against it, in accordance with its terms, subject, as to enforceability, to bankruptcy, insolvency, reorganization and other laws of, relating to or affecting stockholders and creditors rights generally and to general equitable
principles. 
 (e) The execution of this Agreement and consummation of the transactions contemplated hereby does not conflict with and will
not result in a material breach of any agreement (financing or otherwise), mortgage, instrument, judgment, decree, law or governmental regulation, license, permit or authorization by NCC or in the loss, forfeiture or waiver of any rights, license,
authorization or franchise owned by NCC, from which NCC benefits or which is desirable in the conduct of NCC’s business. 
 (f) To the
best knowledge of NCC, except for such actions as may have been taken and the filing of the “Super 8-K, including the audited HSI consolidated financial statements for the years ended December 31, 2007 and December 31, 2008 and the
pro forma combined consolidated financial statements of NCC and HSI for the year ended December 31, 2008, no further action by or before any governmental body or authority of the United States of America or any state or subdivision thereof or
any self-regulatory body to which NCC is subject is required in connection with the execution and delivery of this Agreement by NCC and the consummation of the transactions contemplated hereby. 
  

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 (g) NCC has not conducted any business activity since inception. 
 (h) Neither NCC nor any of its employees, to NCC best knowledge, has since inception given or agreed to give any gift or similar benefit valued at more
than $20 annually to any customer, supplier, governmental employee or other person who is or may be or have been in a position to help or hinder NCC’s business, or a gift or similar benefit in any amount or value which might subject NCC to
damage or penalty in civil, criminal or governmental litigation or proceedings. 
 (i) NCC’s audited financial statements delivered to
HSI have been prepared in accordance with generally accepted accounting principles consistently applied and maintained throughout the periods indicated, fairly present the financial condition of NCC in all material respects at the dates and the
results of operations for the periods indicated, contain all normally recurring adjustments and do not omit to disclose any contingent, undisclosed or hidden liabilities. 
 (j) NCC does not own any properties or assets, including intangible assets, which are not reflected on its most recent balance sheet and none of which are subject to any mortgage, pledge, lien, charge, security
interest, encumbrance, restriction, lease, license, easement, liability or adverse claim of any nature whatsoever, direct or indirect, whether accrued, absolute, contingent or otherwise, except as expressly set forth in the notes to NCC’s
financial statements as securing specific liabilities or subject to specific capital leases and have arisen only in the ordinary course of business. All of the properties and assets owned, leased or used by NCC are in good operating condition and
repair, are suitable for the purposes used, are adequate and sufficient for NCC’s current operations and are directly related to NCC’s business. 
 (k) NCC does not have any material contracts, agreements, leases, licenses and commitments, other than those which have been fully performed. 
 (l) There is no claim, legal action, suit, arbitration, governmental investigation, or other legal or administrative proceeding, nor any order, decree,
judgment or judgment in progress, pending or in effect, or to NCC’s knowledge, threatened, against or relating to NCC, its directors, officers or employees with respect to NCC or its business or for which NCC may have an indemnity obligation,
it properties, assets or business or the transaction contemplated by this Agreement and NCC does not know or have any reason to be aware of any basis for the same, including any basis for a claim of sexual harassment or racial or age discrimination.

 (m) All taxes, including without limitation, income, property, special assessments, sales, use, franchise, intangibles, employees’
income withholding and social security taxes, including employer’s contribution, other than those for which a return or deposit is not yet due and have been disclosed to HSI, imposed by the United States or any state, municipality, subdivision,
authority, which are due and payable, and all interest and penalties thereon, unless disputed in good faith in proper proceedings and reserved for or set aside, have been paid in full and all tax returns required to be filed in connection therewith
have been accurately prepared and timely filed and all deposits required by law to be made by NCC with respect to employees’ withholding and social security taxes have been made. NCC is not and has no reason to believe that it will be the
subject of an audit by any taxing authority. There is not now in force any extension of time with respect to the date when tax return was or is due to be filed, or any waiver or agreement by NCC for the extension of time for the assessment of any
tax and NCC is not a “consenting corporation” within the meaning of Section 341(f)(1) of the Tax Code. 
  

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 (n) NCC does not have any employee benefit, pension or profit sharing plans subject to ERISA and no such
plans to which NCC is obligated or required to make contributions. 
 (o) NCC does not have and has not had any employees other than its
executive officers, none of which have employment or compensation agreements with NCC. 
 (p) No person has guaranteed any obligation of NCC,
and NCC has not guaranteed the obligation of any other person. 
 (q) NCC does not have and has not had any operations. 
 (r) Except for the shares of common stock identified in Section 2.02, NCC does not have any other equity securities, or securities convertible into,
exchangeable for, exercisable for equity securities, or contracts or agreements to sell or deliver any equity securities. 
 Section 4.02. HSI’s representations and warranties. HSI (as used in the following representations and warranties with respect to status or condition, “HSI” includes every subsidiary of HSI, all of which are
identified in Schedule C) represents and warrants to NCC that: 
 (a) HSI is a duly incorporated and existing corporation in good standing
under the laws of its state of incorporation and has full corporate power to execute and deliver this Agreement. 
 (b) This Agreement has
been duly and validly authorized, executed and delivered by HSI and constitutes the legal, valid and binding obligation of HSI enforceable against it, in accordance with its terms, subject, as to enforceability, to bankruptcy, insolvency,
reorganization and other laws of, relating to or affecting stockholders and creditors rights generally and to general equitable principles. 
 (c) The information HSI has delivered to NCC relating to HSI was, to the best knowledge of HSI, on the date reflected in each such item of information accurate in all material respects and, to the best knowledge of HSI, such information at
the date hereof taken as a whole provides full and fair disclosure of all material information relating to HSI and does not, to the best knowledge of HSI, omit to state any material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. 
 (d) HSI’s audited financial statements delivered to NCC, as described in
Section 3.08(g) hereof, have been prepared in accordance with generally accepted accounting principles consistently applied and maintained throughout the periods indicated, fairly present the financial condition of HSI in all material respects
at the dates and the results of operations for the periods indicated. 
 Section 4.03. Nature and survival of representation and
warranties; Remedies. All statements of fact contained in this Agreement, any certificate delivered pursuant to this Agreement, or any letter, document or other instrument delivered by or on behalf of NCC or of HSI, and their respective
officers, pursuant to the terms of this Agreement shall be deemed representations and warranties made by NCC or by HSI, respectively, as the case may be, to each other under this Agreement. For purposes of this Section 4.03 and
Section 10.01 only, any party or other person seeking to enforce, or claiming the benefit of, any representation and 

  

 9 

 
warranty under this Agreement is called a Claimant, and any party or other person against whom a right is claimed is called a Defendant. All representations
and warranties of the parties shall survive the Closing; provided, however, that all representations and warranties shall terminate and expire, and be without further force and effect whatever from and after the one year from the date hereof, and
neither HSI, nor NCC shall have any liability whatsoever on account of any inaccurate representation or warranty or for any breach of warranty, unless a Claimant shall, on or prior to the expiration of such one year period, serve written notice on a
Defendant, setting forth in reasonable detail the breach and any direct, incidental or consequential damages (including amounts) the Claimant may have suffered as a result of such breach. 
 ARTICLE V 
 COVENANTS OF THE PARTIES 
 Section 5.01. Conduct of business prior to Closing. From the date hereof to the Closing, NCC and HSI shall each conduct its business and
affairs only in the ordinary course and consistent with its prior practice and shall endeavor to maintain, keep and preserve its assets and properties in good condition and repair and maintain insurance thereon in accordance with present practices,
it will use its best efforts (i) to preserve its business and organization intact, (ii) to keep available to NCC and HSI the respective services of each of its present employees, agents and independent contractors, (iii) to preserve
for the benefit of the goodwill of suppliers, customers, distributors, landlords and others having business relations with it, and (iv) to cooperate and use reasonable efforts to obtain the consent of any landlord or other party to any lease or
contract where the consent of such landlord or other party may be required by reason of the transactions contemplated hereby. 
 Section 5.02. Notice of changes in information. Each party shall give the other party prompt written notice of any change in any of the information contained in their respective representations and warranties made in Article IV,
or elsewhere in this Agreement, or the exhibits and schedules referred to herein or any written statements made or given in connection herewith which occurs prior to the Closing. 
 Section 5.03. Notice of litigation or government actions. Each party shall advise the other party with respect to the filing or commencement
of any litigation or governmental or agency proceedings against such party. 
 Section 5.04. Action to preserve business and
assets. Notwithstanding anything contained in this Agreement to the contrary, each party will not take or fail to take any action that in its reasonable business judgment, is likely to give rise to a substantial penalty or a claim for damages by
any third party against it, or is likely to result in losses, or is otherwise likely to prejudice in any material respect or unduly interfere with the conduct of its business and operations in the ordinary course consistent with prior practice, or
is likely to result in a breach by it of any of its representations, warranties or covenants contained in this Agreement (unless any such breach is first waived in writing by the other party). 
 Section 5.05. Access to information and documents. Upon reasonable notice and during regular business hours, each party will give to the
other party, its attorneys, accountants and other representatives full access to its personnel (subject to reasonable approval as to the time thereof) and all properties, documents, contracts, books and records and will furnish copies of such
documents 

  

 10 

 
(certified by officers, if so requested) and with such information with respect to its business, operations, affairs and prospects (financial and otherwise)
as the other party may from time to time request, and the party to whom the information is provided will not improperly disclose the same prior to the Closing. Each party will afford the other party an opportunity to ask questions and receive
answers thereto in furtherance of it’s duly diligence examination. Any such furnishing of such information or any investigation shall not affect that party’s right to rely on the other party’s representations and warranties made in
this Agreement or in connection herewith or pursuant hereto, except to the extent that written disclosure of information at a variance or in conflict with any such representation or warranty is made and provides specific notice of such variance or
conflict. 
 Section 5.06. Cooperation by the parties. Each party hereto shall cooperate and shall take such further action as
may be reasonably requested by any other party in order to carry out the provisions and purposes of this Agreement. 
 ARTICLE VI 

FEDERAL INCOME TAX MATTERS 
 Section 6.01. Federal income tax treatment. Each party shall be responsible for obtaining his, her or its own tax advice with respect to and understanding the federal income tax consequences of the transactions and the federal
income tax consequences thereof contemplated by this Agreement and waives any reliance with respect thereto on any other party. 
 ARTICLE VII

 STATUS OF SHARES 
 Section 7.01. Investment legend on certificates. Each of the certificates evidencing NCC’s shares of common stock shall contain the following legend or a legend of similar import: 
 THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND IS A “RESTRICTED SECURITY” AS DEFINED UNDER SAID ACT. ACCORDINGLY,
NEITHER THIS SECURITY NOR ANY INTEREST THEREIN MAY BE SOLD, OFFERED FOR SALE, ASSIGNED, TRANSFERRED, PLEDGED OR HYPOTHECATED, EXCEPT BY BONA FIDE GIFT OR INHERITANCE, IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS SECURITY UNDER
SAID ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED. 
 ARTICLE VIII 
 TERMINATION PRIOR TO CLOSING 
 Section 8.01. Termination for default. A party may, by notice to the other party given in the manner provided below on or at any time prior to the Closing Date, terminate this Agreement if default shall be made by the other
party in the observance or in the due and timely performance of any of any material covenants and agreements contained in this Agreement, made by each of HSI or NCC pursuant to or imposed upon it in this Agreement, if the default has not been fully
cured within five Business Days after receipt of the notice specifying the default. 
 Section 8.02. Termination for failure to
Close. If the Closing does not occur on or before the date provided in Section 3.01, any party, if that party is not then in default in the observance or in the due or timely performance of any covenants and conditions under this Agreement,
may at any time terminate this Agreement by giving written notice to the other parties; provided, that the parties may extend the Closing date in writing. 
  

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 Section 8.03. Termination for loss of bargain. A party may, at its option, terminate this
Agreement prior to the Closing if (i) in completion of its due diligence examination of the other party, it discovers the existence of a material, adverse variance from its due diligence examination prior to the date of this Agreement, or
(ii) the business or assets of the other party have suffered any material damage, destruction or loss (whether or not covered by insurance), or (iii) the party is prevented by order of court or administrative action from consummating the
transactions contemplated by this Agreement, whether or not the party has exhausted its appeals. 
 ARTICLE IX 
 NOTICES 
 Section 9.01.
Procedure for giving notices. Any and all notices or other communications required or permitted to be given under any of the provisions of this Agreement shall be in writing and shall be deemed to have been duly given when personally
delivered (excluding telephone facsimile and including receipted express courier and overnight delivery service) or mailed by first class certified U.S. mail, return receipt requested showing name of recipient, addressed to the proper party.

 Section 9.02. Addresses for notices. For purposes of sending notices under this Agreement, the addresses of the parties are as
follows: 
  

			
	As to HSI:	 	Thomas Morrow, CEO
		 	Home School, Inc.
		 	2700 South River Road, Suite 106
		 	Des Plaines, IL 60018
		
	As to NCC:	 	 Robert Papiri, President & CEO
 Narayan Capital Corp.

 P.O. Box 433

		 	Cupertino, CA 95015

 Section 9.03. Change of address. A party may change its address for notices by sending
a notice of such change to all other parties by the means provided in Section 9.01. 
 ARTICLE X 
 LEGAL, INDEMNIFICATION AND OTHER COSTS 
 Section 10.01. Party entitled to recover. In the event that any party (the “Defaulting Party”) defaults in his or its obligation under this Agreement and, as a result thereof, the other party (the “Non-Defaulting
Party”) seeks to legally enforce his or its rights hereunder against the Defaulting Party (whether in an action at law, in equity or in arbitration), then, in addition to all damages and other remedies to which the Non-Defaulting Party is
entitled by reason of such default, the Defaulting Party shall promptly pay to the Non-Defaulting Party an amount equal to all costs and expenses (including reasonable attorneys’ fees and expert witness fees) paid or incurred by the
Non-Defaulting Party in connection with such enforcement, provided the Non-Defaulting Party is the prevailing party in any litigation resulting therefrom. 
  

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 Section 10.02. Indemnification of parties. 
 (a) Sellers hereby agree to hold harmless and indemnify HSI from and against any action, suit, proceeding, loss, damage, or expense (including, without
limitation, reasonable attorneys’ fees and court costs), arising out of, or relating to, (i) any breach by Sellers of this Agreement or any of the representations, warranties, covenants or obligations of Sellers contained herein, and
(ii) any liability or obligation of Sellers existing prior to, or arising after, the Closing Date. 
 (b) HSI hereby agrees to hold
harmless and indemnify Sellers from and against any action, suit, proceeding, loss, damage, or expense (including, without limitation, reasonable attorneys’ fees and court costs), arising out of, or relating to, (i) any breach by HSI of
this Agreement or any of the representations, warranties, covenants or obligations of HSI contained herein. 
 (c) Neither Sellers nor HSI
shall be required to make any indemnification payment pursuant to this Section 10.02 until such time as the total amount of all damages (including the damages arising from such breach and all other damages arising from any other breaches of any
representations, warranties or covenants) that have been directly or indirectly suffered or incurred by the other party exceeds Five Thousand Dollars ($5,000) (the “Basket”) in the aggregate. 
 (d) At such time as the total amount of such damages exceeds the Basket in the aggregate, the party seeking indemnification hereunder (the
“Indemnified Party”) shall be entitled to be indemnified against all damages in excess of the initial Five Thousand Dollars ($5,000) of damages. 
 (e) The maximum aggregate dollar amount of the collective indemnification liability of the parties hereunder shall be the Cash Payment to the extent actually paid, except if any party shall have made any
representation or warranty herein that was fraudulent, in which event the foregoing limitation shall not apply. 
 ARTICLE XI 
 MISCELLANEOUS 
 Section 11.01.
Effective date. The effective date of this Agreement shall for all purposes be the date set forth in first paragraph hereof notwithstanding a later actual date of execution by any individual party. 
 Section 11.02. Entire agreement. This writing constitutes the entire agreement of the parties with respect to the subject matter hereof,
superseding all prior agreements, understandings, representations and warranties. 
 Section 11.03. Waivers. No waiver of any
provision, requirement, obligation, condition, breach or default hereunder, or consent to any departure from the provisions hereof, shall be considered valid unless in writing and signed by the party giving such waiver, and no such waiver shall be
deemed a waiver of any subsequent breach or default of the same or similar nature. 
  

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 Section 11.04. Amendments. This Agreement may not be modified, amended or terminated except
by a written agreement specifically referring to this Agreement signed by all of the parties hereto and amendment, modification or alteration of, addition to or termination of this Agreement or any provision of this Agreement shall not be effective
unless it is made in writing and signed by the parties. 
 Section 11.05. Construction. This Agreement has been negotiated by the
parties, section by section, and no provision hereof shall be construed more strictly against one party than against the other party by reason of such party having drafted such provision. The order in which the provisions of this Agreement appear
are solely for convenience of organization; and later appearing provisions shall not be construed to control earlier appearing provisions. 
 Section 11.06. Invalidity. It is the intent of the parties that each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. If any provision hereof shall be
prohibited, invalid, illegal or unenforceable, in any respect, under applicable law, such provision shall be ineffective to the extent of such prohibition, invalidity or non enforceability only, without invalidating the remainder of such provision
or the remaining provisions of this Agreement; and, there shall be substituted in place of such prohibited, invalid, illegal or unenforceable provision a provision which nearly as practicable carries out the intent of the parties with respect
thereto and which is not prohibited and is valid, legal and enforceable. 
 Section 11.07. Multiple counterparts. This Agreement
may be executed in one or more counterparts, each of which shall be an original and, taken together, shall be deemed one and the same instrument. 
 Section 11.08. Assignment, parties and binding effect. This Agreement, and the duties and obligations of any party shall not be assigned without the prior written consent of the other party(ies). This Agreement shall benefit
solely the named parties and no other person shall claim, directly or indirectly, benefit hereunder, express or implied, as a third-party beneficiary, or otherwise. Wherever in this Agreement a party is named or referred to, the successors
(including heirs and personal representative of individual parties) and permitted assigns of such party shall be deemed to be included, and all agreements, promises, covenants and stipulations in this Agreement shall be binding upon and inure to the
benefit of their respective successors and permitted assigns. 
 Section 11.09. Survival of representations and warranties. The
representations and warranties made herein shall survive the execution and delivery of this Agreement and full performance hereunder of the obligations of the representing and warranting party, subject to the provisions of Section 4.03.

 Section 11.10. Jurisdiction and venue. Any action or proceeding for enforcement of this Agreement and the instruments and
documents executed and delivered in connection herewith which is determined by a court of competent jurisdiction not, as a matter of law, which seeks injunctive relief shall be brought and enforced in the courts of the State of Illinois, and the
parties irrevocably submit to the jurisdiction of each such court in respect of any such action or proceeding. 
  

 14 

 Section 11.11. Applicable law. This Agreement and all amendments thereof shall be governed by
and construed in accordance with the law of the State of Illinois applicable to contracts made and to be performed therein (not including the choice of law rules thereof). 
 IN WITNESS WHEREOF, the parties hereto have caused this agreement to be signed by their respective officers thereunto duly authorized and their
respective corporate seals to be hereunto affixed, the day and year first above written. 
  

			
	NARAYAN CAPITAL CORP.
		
	By:	 	 /s/ Robert Papiri

		 	Robert Papiri, President & CEO
	
	HOME SCHOOL, INC.
		
	By:	 	 /s/ Thomas Morrow

		 	Thomas Morrow, Chairman & CEO
	
	SELLERS:
	
	 /s/ Thomas Morrow

	THOMAS MORROW
	
	 /s/ David Nicholson

	DAVID NICHOLSON
	
	 /s/ Kenneth Lydecker

	KENNETH LYDECKER
	
	 /s/ Christopher Davies

	CHRISTOPHER DAVIES

  

 15 

 EXHIBIT A 
 EXCHANGE OF SHARES OF HSI’S COMMON 
 STOCK FOR NCC’S COMMON STOCK 

 

			
	Name of Stockholder	  	Shares exchanged for NCC
Shares
	 Thomas Morrow
	  	143,366,940
	 David Nicholson
	  	56,818,260
	 Be-Be North
	  	15,060,060
	 Kenneth Lydecker (Part Sterling IRA Acct)
	  	13,707,540
	 Mark Jordan
	  	6,120,000
	 Perry Marshall
	  	6,078,020
	 Howie Alper
	  	3,900,000
	 Chalmer Wilkins (Sterling IRA Acct)
	  	3,600,000
	 Bliss & Richard Pleet
	  	3,060,000
	 Steve Rients (Sterling IRA Acct)
	  	2,700,000
	 Tim Perry (Sterling IRA Acct)
	  	2,430,000
	 Terri & Louie LoBianco
	  	2,350,120
	 Joel Schauer
	  	2,250,120
	 Brad Clodfelter
	  	2,160,000
	 Jamey Wright
	  	2,160,000
	 Goldstar Acquistions, LLC
	  	2,003,900
	 Estate of Thomas Smith
	  	1,800,000
	 Adam Hecktman
	  	1,800,000
	 James Treleaven
	  	1,697,760
	 Bob Shuman
	  	1,620,000
	 Denise Kowalski (IRA Acct)
	  	1,239,000
	 Bobette Puckett
	  	1,080,000
	 Lisa Morrow
	  	1,002,420
	 Joe Gurdak (Pension Acct)
	  	900,000
	 William Rients (Sterling IRA Acct)
	  	900,000
	 Christopher Davies
	  	857,520
	 Judy & Don Braun
	  	750,060
	 Tony Langford
	  	742,380
	 Dieter Gutt
	  	720,000
	 Ed Schwall
	  	720,000
	 Dave Gurdak
	  	594,000
	 Virginia Vagt
	  	555,705
	 Josh Kurtz
	  	432,000
	 Bernie Petersen (Trust Acct)
	  	360,000
	 Bob Schauer
	  	360,000
	 Carol Lydecker (Sterling IRA Acct)
	  	360,000
	 Herb Singer
	  	360,000
	 Jeff Lydecker
	  	360,000
	 Jennifer Ottolino
	  	360,000
	 Larry Hayes
	  	360,000
	 Maria Dalmazio
	  	360,000
	 Paul Krappman
	  	360,000
	 Ray Imburgia
	  	360,000
	 Stacy Chirio
	  	360,000
	 Rhea Perry
	  	250,020
	 Marjorie Lock
	  	217,800
	 Paul Shuman
	  	180,000
	 Rob Alexander
	  	129,600
	 Diana Dixon
	  	23,220
	 Lisa Lepcin
	  	23,220
		  	 
		  	289,959,665
		  	 

  

 16 

 EXHIBIT B 
 AMENDED AND RESTATED ARTICLES OF INCORPORATION 
 AND 
 AMENDED AND RESTATED BYLAWS 
  

 17 

 EXHIBIT C 
 OFFICERS’ CERTIFICATE 
 Pursuant to Section 3.0     of the Share
Exchange Agreement, the undersigned,                     , Chief Executive Officer, and
                    , Treasurer, of
                    , a                     
corporation (the “Corporation”), hereby each certifies that he is familiar with the Share Exchange Agreement, dated                     ,
(the “Agreement”), between the Corporation and                      and, to the best of his knowledge, based on reasonable investigation:

 (a) All representations and warranties of the
                     (as defined in the Agreement) contained in the Agreement, and in all Exhibits and Schedules attached thereto containing
information delivered by                     , were true and correct in all material respects when made and when deemed to have been made and are
true and correct at the date hereof, except for changes in the ordinary course of business between the date of the Agreement, in conformity with the covenants and agreements contained in the Agreement. 
 (b) All covenants, agreements and obligations required by the terms of the Agreement to be performed by
                     at or before the Closing have been duly and properly performed in all material respects. 
 (c) Since the date of the Agreement there have not occurred any material adverse change in the condition or prospects (financial or otherwise), business,
properties or assets of the                     . 
 IN WITNESS WHEREOF, each of the undersigned has executed this certificate this                     , 2009.

  

			
	  

	                              
	 	, Chief Executive Officer
	
	  

	                              
	 	, Treasurer

  

 18 

 EXHIBIT D 
 SECRETARY’S CERTIFICATE 
 Pursuant to Section 3.0     of the
Share Exchange Agreement, I,                     , the duly elected, qualified and acting Secretary of
                    , a corporation duly organized, existing and in good standing under the laws of
                    , (the “Corporation”) do hereby certify that: 
 (i) The following is a true and complete copy of Resolution of the Board of Directors of the Corporation taken and adopted on
                    ,    , approving the Share Exchange Agreement dated
                    ,    , by and among the Corporation and
                    , and that said Resolution has not been rescinded, revoked or modified and is in full force and effect at the date hereof:

 (ii) The persons whose names, titles and signatures appear below are each the duly elected, qualified and acting officers of the
Corporation, hold on the date hereof the offices set forth opposite their respective names and the signatures appearing opposite said names are the genuine signatures of said persons: 
  

					
	 Name
	  	 Title
	  	 Signature

	  
	  	Chief Executive Officer	  	  

	  
	  	Secretary	  	  

	  
	  	Treasurer	  	  

 (iii) I am authorized by the Corporation to make the within certifications. 
 IN WITNESS WHEREOF, I have executed this Certificate on
                    , 2009. (CORPORATE SEAL) 
  

	
	  

	Secretary

 I,
                    , Chief Executive Officer of
                    , a                     
corporation, hereby certify that                      is duly elected, qualified and acting Secretary of
                     and that the signature appearing above is his genuine signature. 
 IN WITNESS WHEREOF, I have executed this Certificate on
                    , 2009 
  

	
	  

	Chief Executive Officer

  

 19 

 EXHIBIT E 
 CLOSING MEMORANDUM 
 The undersigned parties to that certain Share Exchange Agreement dated
                    , (“Agreement”) do hereby certify one to the other that; 
 1. The Closing of the Agreement was completed, as contemplated by the Agreement, on
                    , at          o’clock     .m. 
 2. All conditions to each of the parties Closing the Agreement have been satisfied and, to the extent not specifically satisfied, have been waived by the
party entitled to waive the conditions; except, the following conditions, if any, are waived only for the purpose of Closing of the transaction contemplated by the Agreement, and are required to be satisfied after the Closing by the party required
to satisfy such condition: 
 [insert any such conditions and name of the party required to satisfy it] 
 3. Capitalized terms herein have the meaning assigned to them in the Share Exchange Agreement. 
 For the purposes herein set forth, the parties have executed this Memorandum at the date and time written above. 
  

			
	HOME SCHOOL, INC.
		
	By:	 	  

		 	Thomas Morrow, Chairman & CEO
	
	NARAYAN CAPITAL CORP.
		
	By:	 	  

		 	Robert Papiri, President & CEO

  

 20

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