Document:

EXHIBIT 10.17

 Exhibit 10.17 
 Execution Copy 
 FIRST AMENDMENT AND CONSENT 
 FIRST AMENDMENT AND CONSENT, dated as of March 31, 2006 (the “First Amendment”), to the Amended and Restated Credit Agreement, dated as
of April 28, 2005 (as amended, supplemented or otherwise modified, the “Credit Agreement”), among EDUCATE OPERATING COMPANY, LLC, a Delaware limited liability company (the “Borrower”), the several banks and other
financial institutions or entities from time to time parties thereto (the “Lenders”), MERRILL LYNCH CAPITAL, a division of Merrill Lynch Business Financial Services Inc., as documentation agent (the “Documentation
Agent”), and JPMORGAN CHASE BANK, N.A., as administrative agent (the “Administrative Agent”). 
 W I
T N E S S E T H: 
 WHEREAS, the Borrower, the Lenders, the Documentation Agent and
the Administrative Agent are parties to the Credit Agreement; 
 WHEREAS, the Administrative Agent has requested certain amendments to the
Credit Agreement as set forth herein, including the addition of provisions providing for the making of incremental term loans to the Borrower in the aggregate amount of $21,050,000; and 
 WHEREAS, the Lenders and the other persons who will make such incremental term loans and the Required Lenders have consented to the requested amendments
as set forth herein; 
 NOW THEREFORE, in consideration of the premises and the mutual covenants hereinafter set forth, the parties hereto
hereby agree as follows: 
 1. Defined Terms. Unless otherwise defined herein, capitalized terms used herein which are defined in the
Credit Agreement are used herein as therein defined. 
 2. Amendments to Section 1. Section 1.1 of the Credit Agreement is hereby
amended by inserting, in proper alphabetical order, the following new or substitute defined terms and related definitions: 
 “Amended
Term Loans”: collectively, the Continued Term Loans and the Additional Term Loans and, from and after the First Amendment Effective Date, the Incremental Term Loans. 
 “Applicable Margin”: (a) with respect to Revolving Loans, the rate per annum set forth under the relevant column heading in the grid
below captioned “Revolving Loans Pricing Grid” and (b) with respect to Amended Term Loans, from and after the First Amendment Effective Date, the rate per annum set forth under the relevant column heading in the grid below captioned
“Amended Term Loans Pricing Grid.” 

 Revolving Loans Pricing Grid 
  

					
	 Consolidated Leverage Ratio
	  	ABR Loans	 	Eurodollar Loans
	 Greater than or equal to 2.75:1.00
	  	2.00%	 	3.00%
	 Greater than or equal to 2.25:1.00 and less than 2.75:1.00
	  	1.50%	 	2.50%
	 Less than 2.25:1.00
	  	1.25%	 	2.25%
	
	Amended Term Loans Pricing Grid
			
	 Consolidated Leverage Ratio
	  	ABR Loans	 	Eurodollar Loans
	 Greater than or equal to 3.25:1.00
	  	2.00%	 	3.00%
	 Greater than or equal to 2.75:1.00 and less than 3.25:1.00
	  	1.75%	 	2.75%
	 Greater than or equal to 2.25:1.00 and less than 2.75:1.00
	  	1.25%	 	2.25%
	 Less than 2.25:1.00
	  	1.00%	 	2.00%

 For the purposes of the above pricing grids, changes to the Applicable Margin resulting from
changes in the Consolidated Leverage Ratio shall become effective on the date that is three Business Days after the date on which financial statements are delivered to the Lenders pursuant to Section 6.1 and shall remain in effect until the next
change to be effected pursuant to this paragraph. If any financial statements referred to above are not delivered within the time periods specified in Section 6.1, then, until the date that is three Business Days after the date on which such
financial statements are delivered, the highest rate set forth in each column of the above pricing grid shall apply. In addition, at all times while an Event of Default shall have occurred and be continuing, the highest rate set forth in each column
of the above pricing grid shall apply. Each determination of the Consolidated Leverage Ratio pursuant to the above pricing grid shall be made in a manner consistent with the determination thereof pursuant to Section 7.1. 
 “Education Station Sale”: any Disposition by the Borrower or any of it subsidiaries of any of the Education Station business assets,
including, without limitation, the Disposition of any membership interest in Education Station, LLC and the Disposition by Education Station, LLC of any of its assets. 
 “First Amendment”: the First Amendment and Consent, dated as of March 31, 2006, to this Agreement. 
 “First Amendment Effective Date”: March 31, 2006. 
  

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 “Incremental Term Commitment”: as to any Incremental Term Lender, the obligation of such
Incremental Term Lender to make an Incremental Term Loan to the Borrower in a principal amount not to exceed the amount set forth under the heading “Incremental Term Commitment” opposite such Incremental Term Lender’s name on Schedule
1.1A. The original aggregate amount of the Incremental Term Commitments shall be $21,050,000, so that the aggregate principal amount of the Amended Term Loans after giving effect to the borrowing of the Incremental Term Loans shall be $160,000,000.

 “Incremental Term Lender”: each Lender that has an Incremental Term Commitment or that holds an Incremental Term Loan.
The Incremental Term Lenders are set forth on Schedule 1.1A. To confirm its Incremental Term Commitment and, in the case of an Incremental Term Lender that has not previously been a Lender hereunder, to evidence its agreement to be bound by the
terms and provisions of this Agreement as a “Lender” hereunder, each Incremental Term Lender has executed and delivered the First Amendment (and it is agreed that no further confirmation shall be required of any such Incremental Term
Lender, the Borrower, the Administrative Agent or the other Lenders). 
 “Incremental Term Loan”: as defined in Section
2.1A. 
 “Incremental Term Percentage”: as to any Incremental Term Lender at any time, the percentage which such Incremental
Term Lender’s Incremental Term Commitment then constitutes of the aggregate Incremental Term Commitments. 
 3. Amendments to Section
2 of the Credit Agreement. (a) Section 2.1 of the Credit Agreement is hereby amended by deleting the following clause from the second parenthetical clause of the first sentence of Section 2.1 of the Credit Agreement: 
 “, and, together with the Continued Term Loans, ‘Amended Term Loans’”. 
 (b) Section 2 of the Credit Agreement is hereby amended by adding the following subsections 2.1A and 2.2A immediately following subsections 2.1 and 2.2,
respectively: 
 2.1A. Incremental Term Loan Commitments. Subject to the terms and conditions hereof, each Incremental Term Lender
severally agrees to make a term loan (an “Incremental Term Loan”) to the Borrower on the First Amendment Effective Date in the amount of the Incremental Term Loan Commitment of such Incremental Term Lender. 
 2.2A Procedure for Incremental Term Loan Borrowing. (a) The Borrower shall give the Administrative Agent notice (which notice must be received by
such Agent prior to 10:00 a.m., New York City time, on the First Amendment Effective Date), requesting that the Incremental Term Lenders make the relevant Incremental Term Loans on the First Amendment Effective Date. Upon receipt of such notice the
Administrative Agent shall promptly notify each relevant Incremental Term Lender thereof. Not later than 12:00 noon, New York City time, on the date of such borrowing, each Incremental Term Lender shall make available to the Administrative Agent at
the Funding Office an amount in immediately available funds equal to the Incremental Term Loan to be made by such Lender. The Administrative Agent shall credit the account of the Borrower on the books of such office of the Administrative Agent with
the aggregate of the amounts made available to the Administrative Agent by the Incremental Term Lender in immediately available funds. The Administrative Agent shall set the initial Interest Periods for the Incremental Term Loans to coincide, on a
ratable basis, with the remaining portions of the Interest Periods for the Amended Term Loans as of the First Amendment Effective Date, and for such initial Interest Periods only and notwithstanding Section 2.15, the Eurodollar Rates applicable to
the Incremental Term Loans may be different than the Eurodollar Rates then applicable to the other Amended Term 
  

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 Loans. Following the making of the Incremental Term Loans, except as provided in the immediately preceding sentence and
except that no principal payment shall be payable in respect to the Incremental Term Loans on March 31, 2006, the Incremental Term Loans shall be Amended Term Loans and treated as such, on a ratable basis with the other Amended Term Loans, for all
purposes hereof. 
 (c) Section 2.3 of the Credit Agreement is hereby amended by deleting the portion of the table therein from and following
June 30, 2006 and substituting therefor the following: 
  

				
	 Installment
	  	Principal Amount
	 June 30, 2006
	  	$	403,157
	 September 30, 2006
	  	$	403,157
	 December 31, 2006
	  	$	403,157
	 March 31, 2007
	  	$	403,157
	 June 30, 2007
	  	$	403,157
	 September 30, 2007
	  	$	403,157
	 December 31, 2007
	  	$	403,157
	 March 31, 2008
	  	$	403,157
	 June 30, 2008
	  	$	403,157
	 September 30, 2008
	  	$	403,157
	 December 31, 2008
	  	$	403,157
	 March 31, 2009
	  	$	403,157
	 June 30, 2009
	  	$	403,157
	 September 30, 2009
	  	$	403,157
	 December 31, 2009
	  	$	403,157
	 March 31, 2010
	  	$	403,157
	 June 30, 2010
	  	$	403,157
	 September 30, 2010
	  	$	403,157
	 December 31, 2010
	  	$	403,157
	 March 31, 2011
	  	$	403,157
	 June 30, 2011
	  	$	403,157
	 September 30, 2011
	  	$	403,157
	 December 31, 2011
	  	$	75,390,273
	 March 31, 2012
	  	$	75,390,273

 (d) Section 2.9 (c) of the Credit Agreement is hereby amended by (i) deleting the word
“and” immediately before clause (iii) (B) and inserting a comma and (ii) inserting “and (C) in the event of an Education Station Sale, 50% of the Net Cash Proceeds from such Education Station Sale” immediately after the
parenthetical ending with the words “but giving effect to any prepayment under this Section 2.9” in clause (iii) (B). 
 4.
Amendment to Section 6 of the Credit Agreement. Section 6.9 of the Credit Agreement is hereby amended by deleting “35%” and replacing it with “31%”. 
  

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 5. Amendment to Section 7 of the Credit Agreement. (a) Section 7.1(a) of the Credit Agreement is
hereby amended by deleting the portion of the table set forth therein covering the fiscal quarters set forth below and substituting therefor the following: 
  

			
	Fiscal
Quarter                                       
 	  	            Consolidated Leverage Ratio            
	 12/31/05
 03/31/06
 06/30/06
 09/30/06
 12/31/06
 03/31/07
 06/30/07
 09/30/07 – 12/31/07
 03/31/08 – 12/31/08
 03/31/09 and thereafter
	  	3.75:1.00
4.75:1.00
4.75:1.00
4.25:1.00
3.25:1.00
3.00:1.00
2.75:1.00
2.50:1.00
2.25:1.00
2.00:1.00

 (b) Section 7.1(b) of the Credit Agreement is hereby amended by deleting the portion of the table
set forth therein covering the fiscal quarters set forth below and substituting therefor the following: 
  

			
	Fiscal
Quarter                                       
 	  	    Consolidated Interest Coverage Ratio    
	 03/31/06
 06/30/06
 09/30/06
 12/31/06 and thereafter
	  	3.50:1.00
3.50:1.00
3.75:1.00
4.50:1.00

 (c) Section 7.1(c) of the Credit Agreement is hereby amended by deleting the portion of the table
set forth therein covering the fiscal quarters set forth below and substituting therefor the following: 
  

			
	Fiscal
Quarter                                       
 	  	Consolidated Fixed Charge Coverage Ratio
	 03/31/06
 06/30/06
 09/30/06
 12/31/06 and thereafter
	  	1.60:1.00
1.60:1.00
1.75:1.00
2.15:1.00

 (b) Section 7.7 of the Credit Agreement is hereby amended to read in its entirety as follows:

 “7.7 Capital Expenditures. Make or commit to make any Capital Expenditure, Product Development Expenditure, Franchise
Acquisition Expenditure or New Center Expenditures, except (a) Capital Expenditures and Product Development Expenditures (excluding Capital Expenditures referred to in clause (b) of this Section) of the Borrower and its Subsidiaries in the ordinary
course of business not exceeding in the aggregate $20,000,000 for fiscal year 2006 of the Borrower, $22,500,000 for fiscal year 2007 of the Borrower and $25,000,000 for each of fiscal years 2008 and thereafter and (b) Franchise Acquisition
Expenditures and New Center Expenditures of the Borrower and its Subsidiaries not exceeding (i) if on the date of any such expenditure the Consolidated Leverage Ratio most recently reported pursuant to Section 6.2(b) is greater than 3.25:1.00,
$10,000,000 in the then current fiscal year of the Borrower, (ii) if such Consolidated Leverage Ratio is greater than 2.75:1.00 but equal to or less than 3.25:1.00, $15,000,000 in such fiscal year and (iii) otherwise, $25,000,000 in such fiscal
year; provided, that (x) any such amount referred to in Section 7.7(a) above, if not so expended in the fiscal year for which it is permitted, may be carried over for expenditure in the next succeeding fiscal year (but solely in 
  

 5 

 such immediately succeeding fiscal year) and any Capital Expenditures or Product Development Expenditures, as the case
may be, in such next succeeding fiscal year shall respectively be deemed made first in respect of such carried over amounts and (y) any such amount referred to in Section 7.7(b) above, if not so expended in the fiscal year for which it is permitted,
may be carried over in an amount not to exceed $5,000,000 for expenditure in the next succeeding fiscal year (but solely in such immediately succeeding fiscal year) and any Franchise Acquisition Expenditures or New Center Expenditures in such next
succeeding fiscal year shall be deemed made first in respect of such carried over amount (it being understood, that for the purposes of determining the carry-over amount from any initial fiscal year of the Borrower into the next succeeding fiscal
year, reference shall be made to the Consolidated Leverage Ratio at the end of such initial fiscal year). Notwithstanding the foregoing, the Borrower and its Subsidiaries shall not be permitted to make any Franchise Acquisition Expenditure or any
New Center Expenditure, in the event that, after giving effect to such Franchise Acquisition Expenditure or such New Center Expenditure on the date of such expenditure, availability under Section 2.4 hereof is less than $15,000,000.”

 6. Amendment to Schedules. The Schedules to the Credit Agreement are hereby amended by adding thereto a new Schedule 1.1A in the
form of Schedule 1.1A attached hereto. 
 7. Consent. Notwithstanding the provisions of Section 7.4 and Section 7.5, the Lenders
consent to the Education Station Sale and such consent does not affect availability of any other exception in said Sections 7.4 and 7.5. 
 8. Conditions to Effectiveness of this Amendment and Consent. This First Amendment shall become effective on and as of the date (such date the “First Amendment Effective Date”) of the execution and delivery of this
First Amendment by the Borrower, the Administrative Agent, the Incremental Term Lenders and the Required Lenders and satisfaction, prior to or concurrently with the making of the Incremental Term Loans, of the following conditions precedent:

 (a) The Administrative Agent shall have received payment, for distribution to each Lender that has signed and delivered this First
Amendment and Consent to the Administrative Agent by not later than 12:00 Noon (New York City time) on March 24, 2006 (or such later time or date as agreed by the Borrower and the Administrative Agent), of an amendment fee equal to 0.25% of the
Aggregate Exposure of such Lender then in effect immediately prior to the First Amendment Effective Date. 
 (b) The Lenders and the
Administrative Agent shall have received all other fees required to be paid, and all expenses for which invoices have been presented (including the reasonable fees and expenses of legal counsel). 
 (c) The Administrative Agent shall have received (i) a certificate of the Secretary or Assistant Secretary or similar officer of the Borrower, dated the
First Amendment Effective Date, and certifying (A) that attached thereto is a true and complete copy of resolutions duly adopted by the Board of Directors (or equivalent governing body) of the Borrower (or its managing member) authorizing the
execution, delivery and performance of this First Amendment and the borrowing of the Incremental Term Loans, and that such resolutions have not been modified, rescinded or amended and are in full force and effect on the First Amendment Effective
Date, (B) as to the incumbency and specimen signature of each officer executing this First Amendment or any other document delivered in connection herewith on behalf of the Borrower and (C) as to the incumbency and specimen signature of the
Secretary or Assistant Secretary or similar officer executing such certificate; and (ii) a good standing certificate for the Borrower from its jurisdiction of organization. 
 (d) The Administrative Agent shall have received the legal opinion of counsel to the Borrower and its Subsidiaries, substantially in the form of Exhibit
A attached hereto. 
  

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 (e) The Administrative Agent shall have received an Acknowledgement and Consent in the form of Exhibit B
attached hereto, executed and delivered by each Loan Party other than the Borrower. 
 9. Miscellaneous. 
 (a) Applicable Margin. Payment of interest and fees accrued during the period prior to the First Amendment Effective Date shall be based upon the
Applicable Margin in effect prior to the First Amendment becoming effective. 
 (b) Representation and Warranties. The Borrower hereby
represents that as of the First Amendment Effective Date each of the representations and warranties made by any Loan Party in or pursuant to the Loan Documents is true and correct in all material respects as if made on and as of such date (it being
understood and agreed that any representation or warranty that by its terms is made as of a specific date shall be required to be true and correct in all material respects only as of such specified date), and no Default or Event of Default has
occurred and is continuing after giving effect to the amendments contemplated herein. 
 (c) Effect. Except as expressly amended
hereby, all of the representations, warranties, terms, covenants and conditions of the Loan Documents shall remain unamended and not waived and shall continue to be in full force in effect. 
 (d) Counterparts. This First Amendment may be executed by one or more of the parties to this First Amendment on any number of separate
counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. A set of the copies of this First Amendment signed by all the parties shall be lodged with the Borrower and the Administrative
Agent. 
 (e) Severability. Any provision of this First Amendment which is prohibited or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. 
 (f) Integration. This First Amendment and the other Loan Documents
represent the agreement of the Loan Parties, the Administrative Agent and the Lenders with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by the Administrative Agent or any Lender
relative to the subject matter hereof not expressly set forth or referred to herein or in the other Loan Documents. 
 (g) GOVERNING
LAW. THIS FIRST AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS FIRST AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this First Amendment and Consent to be duly executed
and delivered by their proper and duly authorized officers as of the day and year first above written. 
  

			
	EDUCATE OPERATING COMPANY, LLC
		
	By:	 	 /s/ Kevin E. Shaffer

	Name:	 	Kevin E. Shaffer
	Title:	 	Vice President

  
  

			
	 JPMORGAN CHASE BANK N.A., as
 Administrative
Agent and as a Lender

		
	By:	 	 /s/ Neil R. Boylan

	Name:	 	Neil R. Boylan
	Title:	 	Managing Director

  
  

			
	 MERRILL LYNCH CAPITAL, a division of
 Merrill
Lynch Business Financial Services Inc., as
 Documentation Agent and as a Lender

		
	By:	 	 /s/ D. Darby Jones

	Name:	 	D. Darby Jones
	Title:	 	AVP

  
  

			
	Allied Irish Banks Plc, as a Lender
		
	By:	 	 /s/ Margaret Brennan

	Name:	 	Margaret Brennan
	Title:	 	Senior Vice President
		
	By:	 	 /s/ Joseph S. Augustini

	Name:	 	Joseph S. Augustini
	Title:	 	Vice President

  
  

			
	AIB Debt Management Limited, as a Lender
		
	By:	 	 /s/ Margaret Brennan

	Name:	 	Margaret Brennan
	Title:	 	 Senior Vice President
 Investment Advisor to

AIB Debt Management, Limited

		
	By:	 	 /s/ Joseph Augustini

	Name:	 	Joseph Augustini
	Title:	 	 Vice President
 Investment Advisor to
 AIB Debt Management, Limited

  
  

			
	Atlas Loan Funding 1, LLC, as a Lender
	 By: Atlas Capital Funding, Ltd.

	 By: Structured Asset Investors, LLC

	 Its Investment Manager

		
	By:	 	 /s/ Diana M. Himes

	Name:	 	Diana M. Himes
	Title:	 	Associate

  
  

			
	Atlas Loan Funding 2, LLC, as a Lender
	 By: Atlas Capital Funding, Ltd.

	 By: Structured Asset Investors, LLC

	 Its Investment Manager

		
	By:	 	 /s/ Diana M. Himes

	Name:	 	Diana M. Himes
	Title:	 	Associate

  
  

			
	WB Loan Funding 4, LLC, as a Lender
		
	By:	 	 /s/ Diana M. Himes

	Name:	 	Diana M. Himes
	Title:	 	Associate

  
  

			
	Bank of America, N.A., as a Lender
		
	By:	 	 /s/ Mary K. Giermek

	Name:	 	Mary K. Giermek
	Title:	 	Senior Vice President

  
  

			
	BABSON CLO LTD 2005-I
	SUFFIELD CLO, LIMITED
	By: Babson Capital Management LLC
	As Collateral Manager
		
	By:	 	 /s/ David P. Wells

	Name:	 	David P. Wells, CFA
	Title:	 	Managing Director
	
	HAKONE FUND LLC
	By: Babson Capital Management LLC as
	Investment Manager
		
	By:	 	 /s/ David P. Wells

	Name:	 	David P. Wells, CFA
	Title:	 	Managing Director
	
	BILL & MELINDA GATES FOUNDATION
	By: Babson Capital Management LLC as
	Investment Adviser
		
	By:	 	 /s/ David P. Wells

	Name:	 	David P. Wells, CFA
	Title:	 	Managing Director
	
	MASSACHUSETTS MUTUAL LIFE
	INSURANCE COMPANY
	By: Babson Capital Management LLC as
	Investment Adviser
		
	By:	 	 /s/ David P. Wells

	Name:	 	David P. Wells, CFA
	Title:	 	Managing Director

  
  

			
	CIT Lending Services Corporation, as a Lender
		
	By:	 	 /s/ David Manheim

	Name:	 	David Manheim
	Title:	 	Vice President

  
  

			
	 Denali Capital LLC, managing member of DC Funding Partners LLC, portfolio manager for DENALI CAPITAL CLO I, LTD., or an
 affiliate, as a Lender

		
	By:	 	 /s/ John Thacker

	Name:	 	John Thacker
	Title:	 	Chief Credit Officer

  
  

			
	 Denali Capital LLC, managing member of DC Funding Partners LLC, portfolio manager for DENALI CAPITAL CLO III, LTD., or an
 affiliate, as a Lender

		
	By:	 	 /s/ John Thacker

	Name:	 	John Thacker
	Title:	 	Chief Credit Officer

  
  

			
	 Denali Capital LLC, managing member of DC Funding Partners LLC, portfolio manager for DENALI CAPITAL CLO VI, LTD., or an
 affiliate, as a Lender

		
	By:	 	 /s/ John Thacker

	Name:	 	John Thacker
	Title:	 	Chief Credit Officer

  
  

			
	 EAGLE LOAN TRUST
 By: Stanfield Capital Partners, LLC
 as its Collateral Manager, as a Lender

		
	By:	 	 /s/ Christopher E. Jansen

	Name:	 	Christopher E. Jansen
	Title:	 	Managing Partner

  
  

			
	 Stanfield Vantage CLO, Ltd
 By: Stanfield Capital Partners, LLC
 as its Asset Manager, as a Lender

		
	By:	 	 /s/ Christopher E. Jansen

	Name:	 	Christopher E. Jansen
	Title:	 	Managing Partner

  
  

			
	 Stanfield Modena CLO, Ltd
 By: Stanfield Capital Partners, LLC
 as its Asset Manager, as a Lender

		
	By:	 	 /s/ Christopher E. Jansen

	Name:	 	Christopher E. Jansen
	Title:	 	Managing Partner

  
  

			
	General Electric Capital Corporation, as a Lender
		
	By:	 	 /s/ Robert M. Kadlick

	Name:	 	Robert M. Kadlick
	Title:	 	Duly Authorized Signatory

  
  

			
	Antares Capital Corporation, as a Lender
		
	By:	 	 /s/ Robert M. Kadlick

	Name:	 	Robert M. Kadlick
	Title:	 	Duly Authorized Signatory

  
  

			
	 THE GOVERNOR AND COMPANY OF
 THE BANK OF
IRELAND, as a Lender

		
	By:	 	 /s/ Paul Clarke

	Name:	 	Paul Clarke 
	Title:	 	Authorized Signatory
	
	 THE GOVERNOR AND COMPANY OF
 THE BANK OF
IRELAND, as a Lender

		
	By:	 	 /s/ Ford Young

	Name:	 	Ford Young 
	Title:	 	Authorized Signatory

  
  

			
	 GSC PARTNERS GEMINI FUND LIMITED
  
 By: GSCP (NJ), L.P., as Collateral
Monitor

	By: GSCP (NJ), INC., its General Partner, as a Lender
		
	By:	 	 /s/ John Kline

	Name:	 	John Kline
	Title:	 	Vice-President

  
  

			
	ING Capital LLC, as a Lender
		
	By:	 	 /s/ Khursheed Sorabjee

	Name:	 	Khursheed Sorabjee
	Title:	 	Vice President

  
  

			
	LightPoint CLO 2004-1, Ltd., as a Lender
		
	By:	 	 /s/ Colin Donlan

	Name:	 	Colin Donlan
	Title:	 	Director

  
  

			
	Manufactures and Traders Trust Company, as a Lender
		
	By:	 	 /s/ Scott Royster

	Name:	 	Scott Royster
	Title:	 	Officer

  
  

			
	 General Electric Capital Corporation, as
 Administrator for, Merritt CLO Holdings LLC.

		
	By:	 	 /s/ Brian P. Schwinn

	Name:	 	Brian P. Schwinn
	Title:	 	Duly Authorized Signatory

  
  

			
	 Navigator CDO 2004, Ltd.,
  
 By: Antares Asset Management Inc., as Collateral Manager, as a Lender

		
	By:	 	 /s/ David R. Schmuck

	Name:	 	David R. Schmuck
	Title:	 	Authorized Signatory

  
  

			
	OLYMPIC CLO I, LTD, as a Lender
		
	By:	 	 /s/ John M. Casparian

	Name:	 	John M. Casparian
	Title:	 	 Chief Operating Officer,
 (Manager)
 Centre Pacific, LLC

  
  

			
	SIERRA CLO I, LTD, as a Lender
		
	By:	 	 /s/ John M. Casparian

	Name:	 	John M. Casparian
	Title:	 	 Chief Operating Officer,
 (Manager)
 Centre Pacific, LLC

  
  

			
	SIERRA CLO II, LTD, as a Lender
		
	By:	 	 /s/ John M. Casparian

	Name:	 	John M. Casparian
	Title:	 	 Chief Operating Officer,
 (Manager)
 Centre Pacific, LLC

  

			
	WHITNEY CLO I, LTD, as a Lender
		
	By:	 	 /s/ John M. Casparian

	Name:	 	John M. Casparian
	Title:	 	 Chief Operating Officer,
 (Manager)
 Centre Pacific, LLC

  
  

			
	OSP FUNDING LLC, as a Lender
		
	By:	 	 /s/ M. Cristina Higgins

	Name:	 	M. Cristina Higgins
	Title:	 	Assistant Vice President

  
  

			
	Sankaty Advisors, LLC as Collateral Manager for Race Point CLO, Limited, as Term Lender
		
	By:	 	 /s/ James F. Kellogg III

	Name:	 	James F. Kellogg III
	Title:	 	Managing Director

  
  

			
	Sankaty Advisors, LLC as Collateral Manager for Prospect Funding I, LLC, as Term Lender
		
	By:	 	 /s/ James F. Kellogg III

	Name:	 	James F. Kellogg III
	Title:	 	Managing Director

  
  

			
	Chatham Light II CLO, Limited, by Sankaty Advisors LLC, as Collateral Manager, as a Lender
		
	By:	 	 /s/ James F. Kellogg III

	Name:	 	James F. Kellogg III
	Title:	 	Managing Director

  
  

			
	Sankaty Advisors, LLC as Collateral Manager for Castle Hill III CLO, Limited, as Term Lender
		
	By:	 	 /s/ James F. Kellogg III

	Name:	 	James F. Kellogg III
	Title:	 	Managing Director

  
  

			
	Sankaty Advisors, LLC as Collateral Manager for AVERY POINT CLO, LTD., as Term Lender
		
	By:	 	 /s/ James F. Kellogg III

	Name:	 	James F. Kellogg III
	Title:	 	Managing Director

  
  

			
	Sankaty Advisors, LLC as Collateral Manager for Castle Hill I - INGOTS, Ltd., as Term Lender
		
	By:	 	 /s/ James F. Kellogg III

	Name:	 	James F. Kellogg III
	Title:	 	Managing Director

  
  

			
	Sankaty Advisors, LLC as Collateral Manager for Loan Funding, XI LLC, as Term Lender
		
	By:	 	 /s/ James F. Kellogg III

	Name:	 	James F. Kellogg III
	Title:	 	Managing Director

  
  

			
	Katonah II, Ltd., by Sankaty Advisors LLC as Sub-Advisors, as a Lender
		
	By:	 	 /s/ James F. Kellogg III

	Name:	 	James F. Kellogg III
	Title:	 	Managing Director

  
  

			
	Sankaty Advisors, LLC as Collateral Manager for Castle Hill II - INGOTS, Ltd., as Term Lender
		
	By:	 	 /s/ James F. Kellogg III

	Name:	 	James F. Kellogg III
	Title:	 	Managing Director

  
  

			
	Sankaty Advisors, LLC as Collateral Manager for Race Point II CLO, Limited, as Term Lender
		
	By:	 	 /s/ James F. Kellogg III

	Name:	 	James F. Kellogg III
	Title:	 	Managing Director

  
  

			
	TORONTO DOMINION (NEW YORK), LLC, as a Lender
		
	By:	 	 /s/ Masood Fiktee

	Name:	 	Masood Fiktee
	Title:	 	Authorized Signatory

  
  

			
	TRS CALLISTO LLC, as a Lender
		
	By:	 	 /s/ Alice L. Wagner

	Name:	 	Alice L. Wagner
	Title:	 	Vice President

  
  

			
	 VAN KAMPEN SENIOR LOAN FUND
 By: Van Kampen Asset Management, as a Lender

		
	By:	 	 /s/ Darvin D. Pierce

	Name:	 	Darvin D. Pierce
	Title:	 	Executive Director

  
  

			
	 WhiteHorse I, Ltd.
 WhiteHorse Capital
Partners, L.P., as a Lender

		
	By:	 	 /s/ Ethan Underwood

	Name:	 	Ethan Underwood
	Title:	 	Manager

 Schedule 1.1A 
 Incremental Term Loan Commitments 
  

				
	 Lender Name
	  	Term Loan Commitment
	 JPMorgan Chase Bank, N.A.
	  	$	16,175,000
	 CIT Lending Services Corporation
	  	$	2,000,000
	 Bank of America, N.A.
	  	$	1,750,000
	 The Governor and Company of the Bank of Ireland
	  	$	1,125,000
	 Total
	  	$	21,050,000

 Exhibit A 
 Form of Legal Opinion 

 Exhibit B 
 Form of Acknowledgement and ConsentAdditional Compensation Termination Agreement

 Exhibit 10.1 
 AGREEMENT 
 AGREEMENT (the “Agreement”), dated as of April 10, 2006, between Merrill
Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”) and Cohen & Steers Capital Management, Inc. (“Cohen & Steers”). 
 WHEREAS, Cohen & Steers Quality Income Realty Fund, Inc. (“RQI”) is a non-diversified, closed-end management investment company
registered under the Investment Company Act of 1940, as amended (the “1940 Act”), and its common shares are registered under the Securities Act of 1933, as amended (the “1933 Act”); 
 WHEREAS, Cohen & Steers Premium Income Realty Fund, Inc. (“RPF”) is a non-diversified, closed-end management investment company
registered under the 1940 Act, and its common shares are registered under the 1933 Act; 
 WHEREAS, Cohen & Steers REIT and
Preferred Income Fund, Inc. (“RNP”) is a non-diversified, closed-end management investment company registered under the 1940 Act, and its common shares are registered under the 1933 Act; 
 WHEREAS, Cohen & Steers REIT and Utility Income Fund, Inc. (“RTU”) is a non-diversified, closed-end management investment company
registered under the 1940 Act, and its common shares are registered under the 1933 Act; 
 WHEREAS, Cohen & Steers Select Utility
Fund, Inc. (“UTF”) is a non-diversified, closed-end management investment company registered under the 1940 Act, and its common shares are registered under the 1933 Act; 
 WHEREAS, Cohen & Steers Dividend Majors Fund, Inc. (“DVM”) is a non-diversified, closed-end management investment company registered
under the 1940 Act, and its common shares are registered under the 1933 Act; 
 WHEREAS, Cohen & Steers Worldwide Realty Income
Fund, Inc. (“RWF”) is a non-diversified, closed-end management investment company registered under the 1940 Act, and its common shares are registered under the 1933 Act (RQI, RPF, RNP, RTU, UTF, DVM and RWF being referred to collectively
as the “Funds”); 
 WHEREAS, Cohen & Steers is the investment manager and the administrator of the Funds; 
 WHEREAS, Merrill Lynch acted as an underwriter in an offering of the common shares for each of the Funds (the “Offerings”); 
 WHEREAS, pursuant to an Additional Commission Agreement or Additional Compensation Agreement with respect to each of the Funds entered into by
Cohen & Steers and Merrill Lynch on the respective dates set forth on Schedule A hereto (the “Additional Compensation Agreements”), Cohen & Steers agreed to pay Merrill Lynch additional underwriting compensation in
connection with the Offerings (“Additional Compensation”) and Merrill Lynch agreed in connection therewith to provide, upon request, among other things, certain after-market support and informational services to Cohen & Steers
during the respective terms of the Additional Compensation Agreements (the “Services”), which Merrill Lynch has provided or has been willing to provide through the date hereof; 

 WHEREAS, pursuant to interpretations of the Rules of the National Association of Securities Dealers, Inc.
in effect at the time of the Offerings, each Additional Compensation Agreement limits the amount of Additional Compensation that may be paid to Merrill Lynch under the respective Additional Compensation Agreement (“Additional Compensation
Limit”); 
 WHEREAS, Cohen & Steers and Merrill Lynch desire to terminate the Additional Compensation Agreements in accordance
with the terms of this Agreement. 
 NOW, THEREFORE, in consideration of the mutual terms and conditions set forth below, the parties hereto
agree as follows: 
  

	1.	Cohen & Steers agrees to pay to Merrill Lynch the amount of $72,000,000 (the “Payment”) on the Payment Date (as hereinafter defined). 

  

	2.	In connection with the Payment, Cohen & Steers agrees effective as of March 31, 2006 to discharge Merrill Lynch of any obligation, and as of such date Merrill Lynch
shall have no further duty, to provide to Cohen & Steers any Services. 

  

	3.	As consideration for the Payment, Merrill Lynch acknowledges and agrees that, effective as of March 31, 2006, notwithstanding anything in the Additional Compensation Agreements
to the contrary, the Additional Compensation Agreements shall terminate and the Payment shall discharge Cohen & Steers of any and all obligations under the Additional Compensation Agreements, including but not limited to, the future payment
of Additional Compensation as provided therein. 

  

	4.	Each of Cohen & Steers and Merrill Lynch represents and warrants that the Payment is in accordance with the applicable laws and regulations relating to the Additional
Compensation Limit. Each of Cohen & Steers and Merrill Lynch agrees to indemnify the other, and each of their directors, officers and affiliates, for any breach of this representation and warranty. 

  

	5.	Cohen & Steers shall make the Payment on April 17, 2006 at 10:30 a.m., New York time, or as soon as practicable thereafter (the “Payment Date”).

  

	6.	This Agreement embodies the entire agreement and understanding between the parties hereto and supersedes all prior agreements and understandings relating to the Offerings. If any
provision of this Agreement is determined to be invalid or unenforceable in any respect, such determination will not affect such provision in any other respect or any other provision of this Agreement,, which will remain in full force and effect.
This Agreement may not be amended or otherwise modified or waived except by an instrument in writing signed by both Merrill Lynch and Cohen & Steers. 

  

	7.	All notices required or permitted to be sent under this Agreement shall be sent, if to Cohen & Steers: 

 Cohen & Steers Capital Management, Inc. 
 280 Park Avenue 
 New York, NY 10017 
 Attention: General Counsel 

 or if to Merrill Lynch: 
 Merrill Lynch & Co. 
 Merrill Lynch, Pierce, Fenner & Smith Incorporated 
 4 World Financial Center 
 New York, New York
10080 
 Attention: General Counsel 
 or such other name or address as may be given in writing to the other parties. Any notice shall be deemed to be given or received on the third day after deposit in the US mail with certified postage prepaid or when actually received,
whether by hand, express delivery service or facsimile transmission, whichever is earlier. 
  

	8.	This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement.

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date first above
written. 
  

									
	COHEN & STEERS CAPITAL MANAGEMENT, INC.	 		 	 MERRILL LYNCH & CO MERRILL LYNCH, PIERCE,
 FENNER & SMITH INCORPORATED

					
	By:	 	 /s/ Martin Cohen
	 		 	By:	 	 /s/ Mitchell Cox

	Name:	 	Martin Cohen	 		 	Name:	 	Mitchell Cox
	Title:	 	Co-Chairman and Co-CEO	 		 	Title:	 	First Vice President

 Schedule A 
 Dates of Additional Compensation Agreements 
  

			
	 Fund
	 	 Date of Agreement

	RQI	 	February 28, 2002
	RPF	 	August 30, 2003
	RNP	 	June 27, 2003
	RTU	 	January 30, 2004
	UTF	 	March 30, 2004
	DVM	 	January 26, 2005
	RWF	 	March 31, 2005

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