Document:

exv10w2

Exhibit 10.2

PARTICIPATION SHARE AGREEMENT

(Class B Shares and Class C Shares)

     THIS PARTICIPATION SHARE AGREEMENT (this “Agreement”) is made as of ___, 2008
(the “Grant Date”), by and between Study Island Holdings, LLC, a Delaware limited liability
company (the “Company”), and the individual named on the signature page hereto (the
“Employee”);

     WHEREAS, the Company has adopted the 2007 Equity Compensation Plan as a means to provide
incentives to employees of and consultants to the Company and its subsidiaries;

     WHEREAS, on the terms and subject to the conditions hereof, the Employee desires to acquire
from the Company, and the Company desires to issue and grant to the Employee, the Company’s Class B
Shares (the “Class B Shares”) and Class C Shares (the “Class C Shares”, and
together with the Class B Shares, the “Participation Shares”), in each case in the amounts
set forth on Schedule I, as hereinafter set forth; and

     WHEREAS, the Class B Shares will be subject to a Distribution Threshold of $65,000,000.

     NOW, THEREFORE, in order to implement the foregoing and in consideration of the mutual
representations, warranties, covenants and agreements contained herein, the parties hereto agree as
follows:

1. Definitions.

     1.1 Agreement. The term “Agreement” shall have the meaning set forth in the preface.

     1.2 Applicable Federal Rate. The term “Applicable Federal Rate” shall have the
meaning as set forth in Section 1274 of the Code.

     1.3 Board. The “Board” shall mean the Company’s Board of Managers.

     1.4 Cause. The term “Cause” means, in the case of any employee or other service provider
who was issued Shares as consideration for such Person’s employment or services rendered to or on
behalf of the Company or its Affiliates, “Cause” as defined in such Person’s written contract of
employment or engagement, if any, as may be in effect at the time of the occurrence of any acts or
omissions that may constitute “Cause”; provided, however, that in the case of any
Person who is not party to any such written contract or whose written contract does not contain a
definition of “Cause”, “Cause” shall mean any of the following, as determined by the Board in good
faith: (a) fraud, embezzlement, material dishonesty or breach of fiduciary duty against the
Company, (b) conviction or pleading of nolo contendere to a felony or a crime

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involving moral turpitude, (c) a material breach of, a material failure to perform, or
material negligence in performance of, the duties of employment or other engagement by the Company
or any of its Affiliates, (d) drug use or intoxication which negatively impacts job performance or
(e) any gross or willful misconduct resulting in a loss to the Company or damage to its reputation.

     1.5 Code. The term “Code” shall mean the Internal Revenue Code of 1986, as amended.

     1.6 Company. The term “Company” shall have the meaning set forth in the preface.

     1.7 Confidential Information. The term “Confidential Information” shall have the
meaning set forth in Section 9.5.

     1.8 Distribution Threshold. The term “Distribution Threshold” shall have the meaning
as set forth in the LLC Agreement.

     1.9 Employee and Employment. The term “employee” shall mean any employee (as defined in
accordance with the regulations and revenue rulings then applicable under Section 3401(c) of the
Code) of the Company or any of its Subsidiaries, and the term “employment” shall include service as
a part- or full-time employee to the Company or any of its Subsidiaries.

     1.10 Employee. The term “Employee” shall have the meaning set forth in the preface.

     1.11 Employee Group. The term “Employee Group” means, collectively, the Employee and the
Employee’s Permitted Transferees.

     1.12 Fair Market Value. The term “Fair Market Value” shall mean the fair market value
thereof as determined as of the applicable reference date in good faith by a majority of the
disinterested members of the Board in good faith or, if there are no such disinterested members or
such disinterested members are unable or unwilling so to act, a majority of the Board in good
faith. The Board shall use the reasonable application of a reasonable valuation method to
determine Fair Market Value in accordance with Section 409A of the Code.

     1.13 Good Reason. The term “Good Reason” shall have the same meaning ascribed to such term
in any employment or severance agreement then in effect between Employee and the Company or one of
its Subsidiaries or, if no such agreement containing a definition of “Good Reason” is then in
effect, shall mean the termination of Employee’s employment only because of one or more of the
following: (a) any act or omission that constitutes a material breach by the Company of any of its
obligations under any employment agreement or terms which remains uncured for twenty days after
written notice to the Company, specifying in reasonable detail the nature of such breach; (b) a
material diminution in the responsibilities or authority of such Employee, which diminution is not
rectified within twenty days after written notice to the Company; or (c) a material reduction in
the base salary of such Employee that is not part of an overall reduction plan implemented by the
Company.

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     1.14 Grant Date. The term “Grant Date” shall have the meaning set forth in the
preamble hereto.

     1.15 LLC Agreement. The term “LLC Agreement” shall mean that certain Amended and
Restated Limited Liability Company Agreement among the Company and its members as amended from time
to time.

     1.16 Management Investors. The term “Management Investors” shall have the meaning set
forth in the preface.

     1.17 Permitted Transferee. The term “Permitted Transferee” means any transferee of
Participation Shares in accordance with to the LLC Agreement.

     1.18 Person. The term “Person” shall mean any individual, corporation, partnership,
limited liability company, trust, joint stock company, business trust, unincorporated association,
joint venture, governmental authority or other entity of any nature whatsoever.

     1.19 Purchaser. The term “Purchaser” shall have the meaning set forth in the preface.

     1.20 Sale of the Company. The term “Sale of the Company” shall mean the sale of more than
80% of the voting securities of the Company or the Purchaser or substantially all of the assets of
the Company or the Purchaser.

     1.21 Securities Act. The term “Securities Act” shall mean the Securities Act of 1933, as
amended, and all rules and regulations promulgated thereunder, as the same may be amended from time
to time.

     1.22 Subsidiary. The term “Subsidiary” shall mean any Person of which (i) a majority
of the outstanding share capital, voting securities or other equity interests are owned, directly
or indirectly, by the Company or (ii) the Company is entitled, directly or indirectly, to appoint a
majority of the board of directors or managers or comparable supervisory body of such Person.

     1.23 Termination Date. The term “Termination Date” means the date upon which Employee’s
employment with the Company and its Subsidiaries is terminated.

     1.24 Unvested Class B Shares. The term “Unvested Class B Shares” shall have the
meaning set forth in Section 4.1.

     1.25 Vested Class B Shares. The term “Vested Class B Shares” shall have the meaning
set forth in Section 4.1.

     1.26 Vested Participation Shares. The term “Vested Participation Shares” shall mean
the Vested Class B Shares and the Class C Shares.

     Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to
them in the LLC Agreement.

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2. Grant of Participation Shares.

     2.1 Issuance and Grant. Pursuant to the terms and subject to the conditions set forth in
this Agreement, the Company hereby agrees to issue and grant to the Employee the number of Class B
Shares and Class C Shares set forth on Schedule I attached hereto. The Company agrees that
Employee’s provision of services to or for the benefit of the Company and/or Purchaser (subject to
the terms of any agreement that may govern the provision of such services) constitutes sufficient
consideration for the Participation Shares.

     2.2 Section 83(b) Election. Within 10 days after the Grant Date, the Employee shall file
(via certified mail, return receipt requested) with the Internal Revenue Service a completed
election under Section 83(b) of the Code and the regulations promulgated thereunder in the form of
Exhibit A attached hereto. The Employee shall provide the Company with proof of such
timely filing.

3. Investment Representations and Covenants of the Employee.

     3.1 Participation Shares Unregistered. The Employee acknowledges and represents that the
Employee has been advised by the Company that:

     (a) the offer and grant of the Participation Shares have not been registered under the
Securities Act;

     (b) the Participation Shares must be held indefinitely and the Employee must continue
to bear the economic risk of the investment in the Participation Shares unless the offer and
grant of such Participation Shares are subsequently registered under the Securities Act and
all applicable state securities laws or an exemption from such registration is available;

     (c) there is no established market for the Participation Shares and it is not
anticipated that there will be any public market for the Participation Shares in the
foreseeable future;

     (d) a restrictive legend in the form set forth below and the legends set forth in
Section 3.10.3 and 3.10.4 of the LLC Agreement shall be placed on the
certificates representing the Participation Shares:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
CERTAIN REPURCHASE OPTIONS AND OTHER PROVISIONS SET FORTH IN A
PARTICIPATION SHARE AGREEMENT BETWEEN THE ISSUER AND [___]
DATED AS OF [___], 2008, AS AMENDED AND MODIFIED FROM TIME TO
TIME, A COPY OF WHICH MAY BE OBTAINED BY THE HOLDER HEREOF AT THE
ISSUER’S PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE”; and

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     (e) a notation shall be made in the appropriate records of the Company indicating that
the Participation Shares are subject to restrictions on transfer and, if the Company should
at some time in the future engage the services of a securities transfer agent, appropriate
stop-transfer instructions will be issued to such transfer agent with respect to the
Participation Shares.

     3.2 Additional Investment Representations. The Employee represents and warrants that:

     (a) the Employee’s financial situation is such that Employee can afford to bear the
economic risk of holding the Participation Shares for an indefinite period of time, has
adequate means for providing for Employee’s current needs and personal contingencies, and
can afford to suffer a complete loss of Employee’s investment in the Participation Shares;

     (b) the Employee’s knowledge and experience in financial and business matters are such
that Employee is capable of evaluating the merits and risks of the investment in the
Participation Shares;

     (c) the Employee understands that the Participation Shares are a speculative investment
which involves a high degree of risk of loss of Employee’s investment therein, there are
substantial restrictions on the transferability of the Participation Shares and, on the
Grant Date and for an indefinite period thereafter, there will be no public market for the
Participation Shares and, accordingly, it may not be possible for the Employee to liquidate
Employee’s investment in case of emergency, if at all;

     (d) the terms of this Agreement provide that if the Employee ceases to be an employee
of the Company or its Subsidiaries, the Company and its affiliates have the right to
repurchase the Participation Shares at a price which may, under certain circumstances, be
less than the Fair Market Value thereof;

     (e) the Employee understands and has taken cognizance of all the risk factors related
to the acquisition of the Participation Shares and, other than as set forth in this
Agreement, no representations or warranties have been made to the Employee or Employee’s
representatives concerning the Participation Shares or the Company or their prospects or
other matters;

     (f) the Employee has been given the opportunity to examine all documents and to ask
questions of, and to receive answers from, the Company and its representatives concerning
the Company and its Subsidiaries, the Company’s organizational documents and the terms and
conditions of the acquisition of the Participation Shares and to obtain any additional
information which the Employee deems necessary; and

     (g) all information which the Employee has provided to the Company and the Company’s
representatives concerning the Employee and Employee’s financial position is complete and
correct as of the date of this Agreement.

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4. Vesting of Class B Shares.

     4.1 General. The Class B Shares issued to the Employee pursuant to this Agreement
shall “vest” as provided in this Section 4. For purposes of this Agreement and the LLC
Agreement, any Class B Shares which have vested pursuant to this Section 4 shall be
“Vested Class B Shares”, and any Class B Shares which have not vested pursuant to this
Section 4 and that remain outstanding and unvested shall be “Unvested Class B Shares”.
Unless otherwise stated, the provisions of this Section 4 shall be in all respects subject
to the provisions of Section 6 and Section 7 below.

     4.2 Time Vesting of Class B Shares. Subject to Section 6, for so long as the
Employee remains employed by the Company or any of its subsidiaries, the Class B Shares will become
“Vested Class B Shares” as follows: twenty percent (20%) of the Class B Shares shall vest on each
of: the one year anniversary of the Grant Date, the second year anniversary of the Grant Date, the
third year anniversary of the Grant Date, the fourth year anniversary of the Grant Date and the
fifth year anniversary of the Grant Date, such that on the fifth year anniversary of the Grant
Date, one hundred percent (100%) of the Class B Shares will have become Vested Class B Shares. The
Class B Shares are subject to a Distribution Threshold of $65,000,000.

     4.3 Acceleration of Class B Shares. Notwithstanding the foregoing, all Unvested Class
B Shares held by the Employee shall fully vest upon a Sale of the Company to the extent that (a)
the Employee’s employment with the Company or its Subsidiaries has not been terminated prior to the
consummation of such Sale of the Company or (b) the Employee’s employment with the Company and its
Subsidiaries is terminated other than for Cause after the date which is 60 days prior to the date
of execution of definitive and final agreements with respect to such Sale of the Company.

5. Vesting of Class C Shares. Subject to Section 6, the Class C Shares issued
pursuant hereto are fully vested as of the date hereof.

6. Forfeiture of Participation Shares.

     6.1 The holder of any Participation Shares shall forfeit to the Company all or a portion of
such Shares as follows:

               (a) if the Employee’s employment with the Company or any of its Subsidiaries is terminated at
any time by the Company or any of its Subsidiaries for Cause, or by the Employee without Good
Reason, such holder shall automatically forfeit all of such holder’s Participation Shares (whether
or not such Shares are Vested Participation Shares) to the Company without consideration therefor,
and the Company shall promptly thereafter cancel and retire such Shares;

               (b) if the holder of Participation Shares breaches or violates the covenants or other
agreements relating to non-competition, non-solicitation and/or non-disclosure in any agreement as
may now or hereafter exist between such holder and the Company or any of its Subsidiaries and such
breach or violation is not cured to the satisfaction of the Company within

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10 business days notice thereof by the Company to such holder, such holder shall automatically
forfeit all of such holder’s Participation Shares (whether or not such Shares are Vested
Participation Shares) to the Company without consideration therefor, and the Company shall promptly
thereafter cancel and retire such Shares; and

               (c) all unvested Class B Shares and all Class C Shares shall be forfeited if Employee’s
employment with the Company or its Subsidiaries ceases for any reason.

     6.2 Upon a forfeiture of an individual’s Participation Shares pursuant to this Section
6, if the individual fails or refuses to execute such documents or instruments of transfer as
requested by the Board of Managers, the Board of Managers may appoint any Person to act as
attorney-in-fact for such Person in order to execute such documents or instruments of transfer.

7. Repurchase Right.

     7.1 If the Employee’s employment with the Company and its Subsidiaries terminates for any
reason other than those set forth in Section 6(a) and (b), the Company shall have
the right and option to purchase for a period of 18 months following the Termination Date, and each
member of the Employee Group shall be required to sell to the Company, any or all of such Vested
Participation Shares then held by such member of the Employee Group at a price per unit equal the
Fair Market Value of such Share measured as of the date of repurchase (it being understood that if
Vested Participation Shares of any class subject to repurchase hereunder may be repurchased at
different prices, the Company may elect to purchase some or all of the Vested Participation Shares
of one or both classes).

     7.2 If the Company desires to exercise one of its options to purchase Vested Participation
Shares pursuant to this Section 7, the Company shall send written notice to each member of
the Employee Group holding Vested Participation Shares of its intention to purchase Vested
Participation Shares, specifying the number of Vested Participation Shares to be purchased and the
purchase price thereof (the “Repurchase Notice”). The closing of the purchase of the
Vested Participation Shares shall take place at the principal office of the Company on a date
specified by the Company no later than the 30th day after the giving of the Repurchase Notice.

     7.3 If there is more than one member of the Employee Group, the failure of any one member
thereof to perform its obligations hereunder shall not excuse or affect the obligations of any
other member thereof, and the closing of the purchases from such other members by the Company shall
not excuse, or constitute a waiver of its rights against, the defaulting member.

8. Certain Limitations on the Company’s Right to Purchase Participation Shares.

     8.1 Timing and Method of Payment.

               (a) Subject to the terms and conditions set forth herein, at the closing of the purchase of
Participation Shares pursuant to Section 7, the Company will pay the purchase price with
respect to the called Participation Shares as set forth in Section 8.2; provided that, the

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Company shall not be required to make such cash payment if it is prohibited from making such
cash payment, or one of the Company’s Subsidiaries is prohibited from making a distribution to the
Company to provide the Company with sufficient funds to make such cash payment, by applicable law,
regulation or order of any governmental or judicial authority, the LLC Agreement or other operating
agreement of the Company or its Subsidiaries, or the financing documents or financial provisions of
the organizing documents of the Company or its Subsidiaries (any such restriction, a “Payment
Restriction”). If such a Payment Restriction exists, the Company will pay such purchase price
in the form of a junior subordinated note of the Company (a “Junior Subordinated Note”) (or
partially in cash, to the extent such partial cash payment is not so prohibited) bearing interest
at the Applicable Federal Rate, compounded annually. The principal and interest with respect to
such note shall be payable within a ten (10) business day period after the earliest to occur of (w)
the date on which such Payment Restriction no longer exists, (x) the date of the Sale of the
Company and (y) the date of an Initial Public Offering. In no event shall the Company have any
obligation to take any action to eliminate or reduce the duration of the Payment Restriction.

     8.2 Payment for Participation Shares. If at any time the Company elects to purchase any
Participation Shares pursuant to Section 7, the Company shall pay the purchase price for
the Participation Shares it purchases (a) first, by the cancellation of any indebtedness, if any,
owing from the Employee to the Company or any of its Subsidiaries (which indebtedness shall be
applied pro rata against the proceeds receivable by each member of the Employee Group receiving
consideration in such repurchase) and (b) then, by the Company’s delivery of a check or wire
transfer of immediately available funds or, if applicable, a Junior Subordinated Note, for the
remainder of the purchase price, if any, against delivery of the certificates or other instruments
representing the Participation Shares so purchased, duly endorsed. The Company shall have the
right set forth in clause (a) of the first sentence of this Section 8.2 whether or not the
member of the Employee Group selling such Participation Shares is an obligor of the Company. Any
Junior Subordinated Note shall become prepayable (or redeemable) upon a Sale of the Company from
net cash proceeds, if any, payable to the Company or its equity holders; to the extent that
sufficient net cash proceeds are not so payable, the Junior Subordinated Note shall be cancelled in
exchange for such other non-cash consideration received by equity holders in the Sale of the
Company having a Fair Market Value equal to the principal of and accrued interest on the note. The
principal of and accrued interest on any such note may be prepaid in whole or in part at any time
at the option of the Company.

9. Noncompetition; Nonsolicitation, Protection of Confidential Information.

     9.1 Applicability. This Section 9 will survive the termination of this
Agreement and the Employee’s employment with the Company. As used in this Section 9, the
“Company” shall mean the Company and the Company’s Subsidiaries.

     9.2 Restricted Period. As used in this Section 9, the “Restricted Period”
means the period commencing on the Grant Date and ending two years following the Termination Date
(the “Trigger Date”).

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     9.3 Noncompetition. During the Restricted Period, the Employee will not engage in any
business in any manner, directly or indirectly, individually or as a consultant to, or as an
employee, officer, director, stockholder, partner or other owner or participant of, any entity that
(a) is in competition with any business of the Company or any business in which, to the Employee’s
knowledge, the Company had plans to engage or was considering engaging as of the Trigger Date, or
(b) inevitably will result in the disclosure or use of the Company’s Confidential Information, as
defined in Section 9.5 below, in either case in any state in the United States where the
Company’s does business as of the Trigger Date or where, to the Employee’s knowledge, the Company
had plans to engage or was considering engaging as of the Trigger Date.

     9.4 Nonsolicitation. As used in this Section 9, “Solicitation” means,
directly or indirectly, individually or as a consultant to, or as an employee, officer, director,
stockholder, partner or other owner or participant of, any entity, (a) the solicitation of,
inducement of, or attempt to induce, any employee, agent or consultant (including freelance writers
and content providers) of the Company to leave the employ of, or stop providing services to, the
Company; (b) the offering or aiding another to offer employment to, or interfering or attempting to
interfere with the Company’s relationship with, any employees or consultants (including freelance
writers and content providers) of the Company; (c) the solicitation of, or assistance to any entity
or person in solicitation of, any customers suppliers (including freelance writers and content
providers) of the Company to discontinue doing business with the Company; or (d) interfering with
any relationship between the Company and any of its customers or suppliers (including freelance
writers and content providers).

     During the Restricted Period, the Employee will not engage in or attempt to engage in any
Solicitation, provided that Solicitation will not be considered to have occurred by the general
advertising for or hiring of any employee by entities with which the Employee is associated, as
long as he does not directly or indirectly (i) induce such employee to leave the Company, (ii)
contact such employee prior to his departure from the Company regarding employment, or (iii) in the
case of hiring such employee, control such entity or have any input in the decision to hire such
employee.

     9.5 Protection of the Company’s Confidential Information. As used in this Agreement,
“Confidential Information” means all information that relates to the business, technology, manner
of operation, suppliers, customers, finances, employees, plans, proposals or practices of the
Company or of any third parties doing business with the Company, and includes, without limitation,
the identities of and other information regarding the Company’s suppliers, customers and prospects,
supplier lists, employee information, business plans and proposals, software programs, marketing
plans and proposals, technical plans and proposals, research and development, budgets and
projections, nonpublic financial information, and all other information the Company designates as
“confidential” or intends to keep as confidential or proprietary. Excluded from the definition of
Confidential Information is information that is or becomes generally known to the public, other
than through the breach of this Agreement by the Employee. For this purpose, information known or
available generally within the trade or industry of the Company shall be deemed to be generally
known to the public.

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     The Employee understands and agrees that Confidential Information will be considered the trade
secrets of the Company and will be entitled to all protections given by law to trade secrets and
that the provisions of this Agreement apply to every form in which Confidential Information exists,
including, without limitation, written or printed information, films, tapes, computer disks or
data, or any other form of memory device, media or method by which information is stored or
maintained. The Employee acknowledges that in the course of employment with the Company, he has
received and may receive Confidential Information of the Company. The Employee further
acknowledges that Confidential Information is a valuable, unique and special asset belonging to the
Company. For these reasons, and except as otherwise directed by the Company, the Employee agrees,
during his employment, and at all times after the termination of his employment with the Company,
that he will not disclose or disseminate to anyone outside the Company, nor use for any purpose
other than as required by his work for the Company, nor assist anyone else in any such disclosure
or use of, any Confidential Information. Upon the Company’s request at any time and for any
reason, the Employee shall immediately deliver to the Company all materials (including all soft and
hard copies) in the Employee’s possession which contain or relate to Confidential Information.

     9.6 Ownership of Intellectual Property. All inventions, modifications, discoveries,
designs, developments, improvements, processes, software programs, works of authorship,
documentation, formulae, data, techniques, know-how, trade secrets or intellectual property rights
or any interest therein (for purposes of this Section 9, the “Developments”) made
by the Employee, either alone or in conjunction with others, at anytime or at any place during the
Employee’s employment with the Company, whether or not reduced to writing or practice during such
period of employment, which relate to the business in which the Company is engaged or, to the
knowledge of the Employee, in which the Company intends to engage, shall be and hereby are the
exclusive property of the Company without any farther compensation to the Employee. In addition,
without limiting the generality of the prior sentence, all Developments which are copyrightable
work by the Employee are intended to be “work made for hire” as defined in Section 101 of the
Copyright Act of 1976, and shall be and hereby are the property of the Company.

     The Employee shall promptly disclose any Developments to the Company. If any Development is
not the property of the Company by operation of law, other provisions of this Agreement or
otherwise, the Employee will, and hereby does, assign to the Company all right, title and interest
in such Development, without further consideration, and will assist the Company and its nominees in
every way, at the Company’s expense, to secure, maintain and defend the Company’s rights in such
Development. The Employee shall sign all instruments necessary for the filing and prosecution of
any applications for, or extension or renewals of, letters patent (or other intellectual property
registrations or filings) of the United States or any foreign country which the Company desires to
file and relates to any Development. The Employee hereby irrevocably designates and appoints the
Company and its duly authorized officers and agents as such Employee’s agent and attorney-in-fact
(which designation and appointment shall be deemed coupled with an interest and shall survive the
Employee’s death or incapacity), to act for and in the Employee’s behalf to execute and file any
such applications, extensions or renewals and to do all other lawfully permitted acts to further
the prosecution and

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issuance of such letters patent, other intellectual property registrations or filings, or such
other similar documents with the same legal force and effect as if executed by the Employee.

     9.7 Repayment of Proceeds. If Employee violates any provision of this Section 9,
then Employee shall be required to pay to the Company, within ten business days following the date
on which Employee commits such violation, an amount equal to the aggregate proceeds, if any,
Employee received upon the sale or other disposition of Employee’s Participation Shares.

     9.8 Equitable Relief. The Employee acknowledges that (a) the provisions of this
Section 9 are essential to the Company; (b) that the Company would not enter into this
Agreement if it did not include this Section 9; and (c) that damages sustained by the
Company as a result of a breach of this Section 9 cannot be adequately remedied by monetary
damages. Furthermore, the Employee agrees that the Company, notwithstanding any other provision of
this Agreement, and in addition to any other remedy it may have under this Agreement, or at law,
will be entitled to injunctive and other equitable relief to prevent or curtail any breach of this
Section 9.

10. Miscellaneous.

     10.1 Transfers to Permitted Transferees. Prior to the transfer of Participation Shares to
a Permitted Transferee (other than a transfer subsequent to a Sale of the Company), the Employee
shall deliver to the Company a written agreement of the proposed transferee (a) evidencing such
Person’s undertaking to be bound by the terms of this Agreement and (b) acknowledging that the
Participation Shares transferred to such Person will continue to be Participation Shares for
purposes of this Agreement in the hands of such Person. Any transfer or attempted transfer of
Participation Shares in violation of any provision of this Agreement or the LLC Agreement shall be
void, and the Company shall not record such transfer on its books or treat any purported transferee
of such Participation Shares as the owner of such Participation Shares for any purpose.

     10.2 Recapitalizations, Exchanges, Etc., Affecting Participation Shares. The provisions of
this Agreement shall apply, to the full extent set forth herein with respect to Participation
Shares, to any and all securities of the Company or any successor or assign of the Company (whether
by merger, consolidation, sale of assets or otherwise) which may be issued in respect of, in
exchange for, or in substitution of the Participation Shares, by reason of any dividend payable in
shares, issuance of shares, combination, recapitalization, reclassification, merger, consolidation
or otherwise.

     10.3 Employee’s Employment by the Company. Nothing contained in this Agreement shall be
deemed to obligate the Company or any Subsidiary of the Company to employ the Employee in any
capacity whatsoever or to prohibit or restrict the Company (or any such Subsidiary) from
terminating the employment of the Employee at any time or for any reason whatsoever, with or
without Cause.

     10.4 Binding Effect. The provisions of this Agreement shall be binding upon and accrue to
the benefit of the parties hereto and their respective heirs, legal representatives,

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successors and assigns; provided, however, that no transferee shall derive any rights under
this Agreement unless and until such transferee has executed and delivered to the Company a valid
undertaking and becomes bound by the terms of this Agreement.

     10.5 Amendment; Waiver. This Agreement may be amended only by a written instrument signed
by the parties hereto. No waiver by any party hereto of any of the provisions hereof shall be
effective unless set forth in a writing executed by the party so waiving.

     10.6 Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Delaware applicable to contracts made and to be performed
therein.

     10.7 Jurisdiction. Any suit, action or proceeding with respect to this Agreement, or any
judgment entered by any court in respect of any thereof, shall be brought in any court of competent
jurisdiction in the State of Delaware, and each of the Company and the members of the Employee
Group hereby submits to the exclusive jurisdiction of such courts for the purpose of any such suit,
action, proceeding or judgment. Each of the members of the Employee Group and the Company hereby
irrevocably waives (a) any objections which it may now or hereafter have to the laying of the venue
of any suit, action or proceeding arising out of or relating to this Agreement brought in any court
of competent jurisdiction in the State of Delaware, (b) any claim that any such suit, action or
proceeding brought in any such court has been brought in any inconvenient forum and (c) any right
to a jury trial.

     10.8 Notices. All notices and other communications hereunder shall be in writing and shall
be deemed to have been duly given when personally delivered, telecopied (with confirmation of
receipt), one day after deposit with a reputable overnight delivery service (charges prepaid) and
three days after deposit in the U.S. Mail (postage prepaid and return receipt requested) to the
address set forth below or such other address as the recipient party has previously delivered
notice to the sending party.

	 	 	 	 	 
	 

	 	(a)
	 	If to the Company:
	 
	 	 	 	 
	 

	 	 	 	Study Island Holdings, LLC
	 

	 	 	 	c/o Providence Equity Partners
	 

	 	 	 	50 Kennedy Plaza, 18th Floor
	 

	 	 	 	Providence, Rhode Island 02703
	 

	 	 	 	Facsimile: (401) 751-1790
	 

	 	 	 	Attention: Peter O. Wilde
	 
	 	 	 	 
	 

	 	 	 	With a copy (which shall not constitute notice) to:
	 
	 	 	 	 
	 

	 	 	 	Weil, Gotshal & Manges LLP
	 

	 	 	 	100 Federal Street, 34th Floor
	 

	 	 	 	Boston, Massachusetts 02110
	 

	 	 	 	Facsimile: (617) 772-8333
	 

	 	 	 	Attention: Kevin J. Sullivan, Esq.

12

 

               (b) If to the Employee, to the address as shown on the unit register of the Company.

     10.9 Counterparts. This Agreement may be executed in separate counterparts, and by
different parties on separate counterparts each of which shall be deemed an original, but all of
which shall constitute one and the same instrument.

     10.10 Injunctive Relief. Without intending to limit the remedies available to each of the
parties hereto, the Company, the Employee and the Employee’s Permitted Transferees each
acknowledges that a breach of any of the terms of this Agreement may result in material and
irreparable injury for which there is no adequate remedy at law, that it will not be possible to
measure damages for such injuries precisely and that, in the event of such a breach or threat
thereof, each party hereto shall be entitled to seek a temporary restraining order and/or
preliminary or permanent injunction restraining the other party (and their Permitted Transferees)
from engaging in activities prohibited by this Agreement or such other relief as may be required
specifically to enforce any of the terms hereof. If for any reason it is held that the
restrictions under this Agreement are not reasonable or that consideration therefore is inadequate,
such restrictions shall be interpreted or modified to include as much of the duration and scope
identified in this Agreement as will render such restrictions valid and enforceable.

     10.11 Rights Cumulative; Waiver. The rights and remedies of the Employee and the Company
under this Agreement shall be cumulative and not exclusive of any rights or remedies which either
would otherwise have hereunder or at law or in equity or by statute, and no failure or delay by
either party in exercising any right or remedy shall impair any such right or remedy or operate as
a waiver of such right or remedy, nor shall any single or partial exercise of any power or right
preclude such party’s other or further exercise or the exercise of any other power or right. The
waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be
construed as a waiver of any preceding or succeeding breach and no failure by either party to
exercise any right or privilege hereunder shall be deemed a waiver of such party’s rights or
privileges hereunder or shall be deemed a waiver of such party’s rights to exercise the same at any
subsequent time or times hereunder.

* * * * *

13

 

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

	 	 	 	 	 
	 	STUDY ISLAND HOLDINGS, LLC,
a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	  	 
	 	[Name of Employee] 	 
	 	 	 
	 

[Signature Page to Participation Share Agreement]

 

SCHEDULE I

	 	 	 
	Participation Shares	 	Number
	Class B Shares:

	 	 
	Class C Shares:
	 	 

 

 

EXHIBIT A

ELECTION TO INCLUDE PARTICIPATION SHARES IN GROSS

INCOME PURSUANT TO SECTION 83(b) OF THE

INTERNAL REVENUE CODE

     The undersigned acquired shares (the “Participation Shares”) of Study Island Holdings,
LLC (the “Company”) on [___], 2008. The Participation Shares entitled the undersigned to
a “profits interest” in the Company and are subject to certain restrictions pursuant to the
Participation Share Agreement.

     Pursuant to §83(b) of the Internal Revenue Code, as amended, and Treasury Regulation §1.83-2
promulgated thereunder, the undersigned hereby makes an election, with respect to the Participation
Shares (described below), to report as taxable income for calendar year 2007 the excess, if any, of
the Participation Shares’ fair market value on [___], 2008 over the purchase price thereof.

     The following information is supplied in accordance with Treasury Regulation §1.83-2(e):

     1. The name, address and social security number of the undersigned:

     [Name]

     [Address]

     SSN:__________________

     2. A description of the property with respect to which the election is being made: ___
Class B Shares and ___Class C Shares.

     3. The date on which the property was transferred: [___], 2008 (“Grant Date”). The
taxable year for which such election is made: calendar year 2008.

     4. The restrictions to which the property is subject. So long as the undersigned remains
employed by the Company, the Class B Shares will vest twenty percent (20%) on each of the first,
second, third, fourth and fifth anniversaries of the Grant Date. The Class C Shares will be
forfeited on the day that the undersigned ceases to be employed by the Company.

     5. The aggregate fair market value on [___], 2008 of the property with respect to which the
election is being made, determined without regard to any lapse restrictions: $0.

     6. The aggregate amount paid for such property: $0.

 

 

     A copy of this election has been furnished to the Secretary of the Company pursuant to
Treasury Regulation §1.83-2(e)(7).

	 	 	 	 	 
	Dated: [___], 2007

	 	 
	 	 
	 

	 	 	 	 
	 

	 	[Name]exv10w5

Exhibit 10.5

Execution Copy

EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is entered into as of this 10th day of
January, 2007, by and between Study Island, LLC, a Delaware limited liability company (the
“Company”), and Cameron Chalmers (the “Executive”).

     WHEREAS, the Company desires to engage the services of the Executive and the Executive
desires to be employed by the Company;

     WHEREAS, the Company desires to be assured that the unique and expert services of the
Executive will be available to the Company, and that the Executive is willing and able to render
such services on the terms and conditions hereinafter set forth;

     WHEREAS, the Company desires to be assured that the confidential information and good will of
the Company will be preserved for the exclusive benefit of the Company.

     NOW, THEREFORE, in consideration of such employment and the mutual covenants and promises
herein contained, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Company and the Executive agree as follows:

     1 EMPLOYMENT AND RESPONSIBILITIES

     The Company will employ the Executive in the position of Founder and Manager, beginning on the
date hereof (the “Start Date”). The Executive will have such authority, and will perform
all of the duties, normally associated with this position as well as other duties as may be
reasonably assigned to him from time to time by the Board of Managers of the Company (the
“Board”) consistent with his position as Founder and Manager.

     2 ATTENTION AND EFFORT

     The Executive will devote all of his business time, ability, attention and best efforts to the
performance of his duties hereunder in a manner which will faithfully and diligently further the
Company’s business to the exclusion of all other business activities. However, the Executive may
devote reasonable periods of time to engaging in charitable or community service activities, so
long as none of these activities interfere with his duties under this Agreement. Executive agrees
to perform his duties and responsibilities within Company policies, standard work hours and
attendance and general work practices.

     3 TERM

     This Agreement shall be effective on the Start Date and will remain in effect until it is
terminated in accordance with Section 6 below.

     4 COMPENSATION

     During the term of employment under this Agreement, the Company agrees to pay to the
Executive, and he agrees to accept in full consideration for all services performed by him, the
following compensation:

 

 

     4.1 Base Salary: The Company will pay the Executive an annual base salary of One Hundred and
Twenty-five thousand dollars ($125,000), before all customary payroll deductions. This annual base
salary will be paid in accordance with the usual payroll practices of the Company.

     4.2 Bonus: During the Executive’s employment term, the Executive will participate in the
Company-wide bonus plan in which all employees of the Company participate based on the bonus plan’s
policies and procedures then in effect. In addition, Executive will be eligible to receive in
respect of each fiscal year of the Company (commencing with the fiscal year ending on December 31,
2007) an annual bonus in an amount equal to up to two-thirds (2/3’s) of his base salary based on,
among other things, performance targets established by the Board of Managers by reference to the
operating plan approved from time to time by the Board of Managers.

     4.3 Incentive Equity: On the Start Date, Executive will be granted incentive equity pursuant
to the long term incentive equity program of the Company’s parent company, Study Island Holdings
LLC (“Holdings”), on the terms and conditions set forth in Exhibit A.

     4.4 Withholding: The Company may withhold from any compensation and benefits payable to the
Executive all applicable federal, state and local withholding taxes.

     5 BENEFITS

     5.1 Description of Benefits: During the term of employment under this Agreement, the
Executive will be entitled to participate in all employee incentive, pension and welfare benefit
plans and programs made available generally to other senior executives of the Company, as such
plans or programs may be in effect from time to time (including, without limitation, incentive
equity, profit sharing, savings and other pension and retirement plans or programs, medical,
dental, hospitalization, short-term and long-term disability and life insurance plans, accidental
death and dismemberment protection, and any other pension or retirement plans or programs and any
other employee incentive compensation plans, employee welfare benefit plans or programs that may be
sponsored by the Company from time to time and provided that Executive meets the eligibility
requirements and other terms, conditions and restrictions of the respective plans and programs,
including any plans that supplement the above-listed types of plans or programs, whether funded or
unfunded). Payment for such coverages will be the sole responsibility of the Executive, unless
the Company makes such coverages available to similarly situated executives on a shared cost basis.
In addition, the Executive will be entitled to four weeks of paid vacation per year. The
Company will pay for all reasonable expenses actually incurred by the Executive directly in
connection with the business affairs of the Company and the performance of his duties hereunder,
upon presentation of proper receipts or other proof of expenditure and subject to such reasonable
guidelines or limitations provided by the Company from time to time.

     6 TERMINATION

     The Executive’s employment under this Agreement may be terminated as follows, but in the event
of any such termination, the provisions of Sections 7 and 8 will survive the termination of
the Executive’s employment.

2

 

     6.1 By the Company: The Company may terminate the employment of the Executive, with or
without Cause (as defined in Section 7.5 hereof), at any time during the term hereof by
delivery of a Notice of Termination (as defined below) to the Executive.

     6.2 By the Executive: The Executive may terminate his employment at any time, for any
reason, by delivery of a Notice of Termination to the Company.

     6.3 Term: The Executive’s employment hereunder initially shall be for a term commencing on
the Start Date and ending on the day preceding the second anniversary of the Start Date. The
Agreement shall be automatically extended from year to year thereafter unless either party gives
not less than sixty (60) days prior written notice to the other that such party elects to have the
Agreement terminated effective at the end of the initial or then current renewal term. The
provision of the foregoing notice shall result in the expiration of this Agreement at the end of
the then current term and shall not be deemed a termination of Executive’s employment by the
Company. The Executive’s employment will terminate automatically upon the Executive’s death or
total disability. The term “total disability” will mean the Executive’s inability to
perform the duties set forth in Section 1 hereof for a period of twelve (12) consecutive
weeks, or a cumulative period of 90 business days in any 

12-month period, as a result of physical
or mental illness or loss of legal capacity.

     6.4 Notice: The term “Notice of Termination” means at least one hundred twenty (120)
days’ prior written notice of termination of the Executive’s employment (the “Advance Notice
Period”), during which period the Executive’s employment and performance of services will
continue; provided, however, that (i) the Executive may, upon termination of his employment for
Good Reason, make such notice effective immediately, (ii) the Company may, upon termination of his
employment with or without Cause, make such notice immediately and (iii) the Company may, upon
notice to the Executive and without reducing compensation during any Advance Notice Period, excuse
him from any or all of his duties during any Advance Notice Period. The effective date of
termination of employment (the “Termination Date”) will be the date on which such Advance
Notice Period expires (or the date of notice, if the Company exercises its rights under clause (ii)
hereof or if the Executive exercises his rights under clause (i) hereof) or as otherwise provided
in Section 6.3 above.

     7 TERMINATION PAYMENTS

     In the event of termination of the employment of the Executive, all compensation and benefits
set forth in this Agreement will terminate as of the Termination Date except as specifically
provided in this Section 7:

     7.1 Termination by the Company:

     (a) If the Company terminates the Executive’s employment without Cause (other than as
result of death or total disability), he will not be entitled to receive any of the payments or
benefits provided for herein except the Company shall (i) pay his base salary through the
Termination Date, (ii) pay his base salary during the Severance Period (as defined in Section
7.7 below) payable at the same time such payment would be made during Executive’s regular
employment with the Company, (iii) provide Executive with all benefits that are accrued but

3

 

unpaid as of the Termination Date, and (iv) provide the Executive with all benefits expressly
available upon termination of employment in accordance with the plans and programs of the Company
applicable to the Executive on the Termination Date (but without duplication of any benefits or
payments otherwise provided for hereunder).

     (b) If the Company terminates the Executive’s employment for Cause, he will not be entitled to
receive any of the payments or benefits provided for herein except the Company shall (i) pay his
base salary through the Termination Date, (ii) provide the Executive with all benefits that are
accrued but unpaid as of the Termination Date, and (iii) provide the Executive with all benefits
expressly available upon termination of employment in accordance with the plans and programs of the
Company applicable to the Executive on the Termination Date (but without duplication of any
benefits or payments otherwise provided for hereunder).

     7.2 Termination by the Executive:

     (a) If the Executive terminates his employment with the Company with Good Reason (as
hereinafter defined), he will not be entitled to receive any of the payments or benefits provided
for herein except the Company shall (i) pay his base salary through the Termination Date, (ii) pay
his base salary during the Severance Period payable at the same time such payment would have been
made during the Executive’s regular employment with the Company, (iii) provide Executive with all
benefits that are accrued but unpaid as of the Termination Date and (iv) provide the Executive with
all benefits expressly available upon termination of employment in accordance with the plans and
programs of the Company applicable to the Executive on the Termination Date (but without
duplication of any benefits or payments otherwise provided for hereunder).

     (b) If the Executive terminates his employment with the Company without Good Reason, he will
not be entitled to any payments or benefits provided for herein except the Company shall (i) pay
his base salary through the Termination Date, (ii) provide the Executive with all benefits that are
accrued but unpaid as of the Termination Date, and (iii) provide the Executive with all benefits
expressly available upon termination of employment in accordance with the plans and programs of the
Company applicable to the Executive on the Termination Date (but without duplication of any
benefits or payments otherwise provided for hereunder).

     7.3 Expiration of Term, Death or Disability: If the Executive’s employment is terminated
pursuant to Section 6.3 hereof as a result of the expiration of the term of such
employment, or his death or total disability, he will not be entitled to any payments or benefits,
except the Company shall (i) pay his base salary through the Termination Date, (ii) provide
Executive with all benefits that are accrued but unpaid as of the Termination Date, and (iii)
provide the Executive with all benefits expressly available upon termination of employment in
accordance with the plans and programs of the Company applicable to the Executive on the
Termination Date (but without duplication of any benefits or payments otherwise provided for
hereunder).

     7.4 Payment Schedule: All payments of base salary under this Section 7 (including
wages for services performed prior to the Termination Date) shall be paid in accordance with the
Company’s normal payroll practices.

4

 

     7.5 Cause: Wherever reference is made in this Agreement to termination being with or without
Cause, “Cause” shall mean (i) Executive refuses or fails to perform any of his duties and
responsibilities as determined from time to time by the Board, including, without limitation (a)
Executive’s persistent neglect of duty or chronic unapproved absenteeism (other than for a
temporary or permanent disability) which remains uncured to the reasonable satisfaction of the
Board following thirty (30) days’ written notice from the Company of such alleged fault and (b)
Executive’s refusal to comply with any lawful directive or policy of the Board which refusal is not
cured by Executive within thirty (30) days of such written notice from the Company; provided,
however, that the Company shall not be required to give Executive a cure period with respect to
this clause (i) on more than one occasion; (as used in this Section 7.5, “Company”
shall mean Holdings, the Company and each of the Company’s subsidiaries), (ii) Executive acts
(including a failure to act) in a manner which constitutes willful misconduct, gross negligence, or
insubordination, (iii) the Company determines that, in the reasonable judgment of the Board, (x)
Executive has committed an act of fraud, personal dishonesty or misappropriation relating to the
Company or Holdings, has violated any material provision of any written policy of the Company or
Holdings or (y) Executive has committed any other act causing material harm to the Company’s or
Holding’s standing or reputation, or any act of dishonesty, embezzlement, unauthorized use or
disclosure of Confidential Information or other intellectual property or trade secrets, common law
fraud or other fraud with respect thereto, (iv) a material breach by the Executive of this
Agreement, any other written agreement with the Company, any fiduciary duty to the Company, (v)
Executive’s arrest, indictment for or conviction (or the entry of a plea of a nolo contendere or
equivalent plea) in a court of competent jurisdiction of a felony or any misdemeanor involving
material dishonesty or moral turpitude, or (vi) the Executive’s habitual or repeated misuse of, or
habitual or repeated performance of the Executive’s duties under the influence of, alcohol or
controlled substances.

     7.6 Good Reason: Whenever reference is made in this Agreement to termination being with or
without Good Reason, “Good Reason” shall mean the occurrence of any of the following events without
the Executive’s express written consent: (i) any breach by the Company of any material provision
of this Agreement for which the Company has received a written notice that specifies the Company’s
violation and for which the Company has been given a reasonable opportunity to cure and fails to
cure, (ii) a reduction in the Executive’s base salary or (iii) a material reduction or diminution
of the Executive’s duties, responsibilities or authorities which are caused by an act of the
Company.

     7.7 Severance Period: Whenever reference is made in this Agreement to the Severance Period,
“Severance Period” shall mean the period commencing on the Termination Date and ending on
the twelve-month anniversary of the Termination Date.

     7.8 Payments Contingent on Release: The Company’s obligation to make any payments of salary
or bonus under this Section 7 shall be contingent upon the Executive executing a general
release concerning the Executive’s employment in form and substance reasonably acceptable to the
Company and the Executive. No such contingency shall apply to any obligation to provide benefits
under this Section 7.

5

 

     8 NONCOMPETITION, NONSOLICITATION, PROTECTION OF CONFIDENTIAL INFORMATION

     8.1 Applicability: This Section 8 will survive the termination of this Agreement and
the Executive’s employment with the Company. The Executive acknowledges and agrees that the
consideration for the covenants made by him herein includes the transactions and promises made
under the Purchase Agreement (defined below). As used in this Section 8, “Company”
shall mean Holdings, the Company and all of the Company’s subsidiaries.

     8.2 Restricted Period: As used in this Agreement, the “Restricted Period” means the
period commencing on the Start Date and ending two years following the Termination Date (the
“Trigger Date”).

     8.3 Noncompetition: During the Restricted Period, the Executive will not engage in any
business in any manner, directly or indirectly, individually or as a consultant to, or as an
employee, officer, director, stockholder, partner or other owner or participant of, any entity that
(i) is in competition with the Business (as defined in the Asset Purchase Agreement dated as of the
date hereof by and among the Company, the Executive and the other selling parties thereto (the
“Purchase Agreement”)) or any business in which, to the Executive’s knowledge, the Company
had plans to engage or was considering engaging as of the Trigger Date, or (ii) inevitably will
result in the disclosure or use of the Company’s Confidential Information, as defined in
Section 8.5 below, in either case in any state in the United States where the Company does
business as of the Trigger Date or where, to the Executive’s knowledge, the Company had plans to
engage or was considering engaging as of the Trigger Date.

     8.4 Nonsolicitation: As used in this Agreement, “Solicitation” means, directly or
indirectly, individually or as a consultant to, or as an employee, officer, director, stockholder,
partner or other owner or participant of, any entity, (a) the solicitation of, inducement of, or
attempt to induce, any employee, agent or consultant (including freelance writers and content
providers) of the Company to leave the employ of, or stop providing services to, the Company; (b)
the offering or aiding another to offer employment to, or interfering or attempting to interfere
with the Company’s relationship with, any employees or consultants (including freelance writers and
content providers) of the Company; (c) the solicitation of, or assistance to any entity or person
in solicitation of, any customers suppliers (including freelance writers and content providers) of
the Company to discontinue doing business with the Company; or (d) interfering with any
relationship between the Company and any of its customers or suppliers (including freelance writers
and content providers).

     During the Restricted Period, the Executive will not engage in or attempt to engage in any
Solicitation, provided that Solicitation will not be considered to have occurred by the general
advertising for or hiring of any employee by entities with which the Executive is associated, as
long as he does not directly or indirectly (i) induce such employee to leave the Company, (ii)
contact such employee prior to his departure from the Company regarding employment, or (iii) in the
case of hiring such employee, control such entity or have any input in the decision to hire such
employee.

6

 

     8.5 Protection of the Company’s Confidential Information: As used in this Agreement,
“Confidential Information” means all information that relates to the business, technology,
manner of operation, suppliers, panelists, customers, finances, employees, plans, proposals or
practices of the Company or of any third parties doing business with the Company, and includes,
without limitation, the identities of and other information regarding the Company’s suppliers,
panelists, customers and prospects, supplier lists, panelist list employee information, business
plans and proposals, software programs, marketing plans and proposals, technical plans and
proposals, research and development, budgets and projections, nonpublic financial information, and
all other information the Company designates as “confidential” or intends to keep as confidential
or proprietary. Excluded from the definition of Confidential Information is information that is
or becomes generally known to the public, other than through the breach of this Agreement by the
Executive. For this purpose, information known or available generally within the trade or
industry of the Company shall be deemed to be generally known to the public.

     The Executive understands and agrees that Confidential Information will be considered the
trade secrets of the Company and will be entitled to all protections given by law to trade secrets
and that the provisions of this Agreement apply to every form in which Confidential Information
exists, including, without limitation, written or printed information, films, tapes, computer disks
or data, or any other form of memory device, media or method by which information is stored or
maintained. The Executive acknowledges that in the course of employment with the Company, he has
received and may receive Confidential Information of the Company. The Executive further
acknowledges that Confidential Information is a valuable, unique and special asset belonging to the
Company. For these reasons, and except as otherwise directed by the Company, the Executive
agrees, during his employment, and at all times after the termination of his employment with the
Company, that he will not disclose or disseminate to anyone outside the Company, nor use for any
purpose other than as required by his work for the Company, nor assist anyone else in any such
disclosure or use of, any Confidential Information. Upon the Company’s request at any time and
for any reason, the Executive shall immediately deliver to the Company all materials (including all
soft and hard copies) in the Executive’s possession which contain or relate to Confidential
Information.

     8.6 Ownership of Intellectual Property: All inventions, modifications, discoveries, designs,
developments, improvements, processes, software programs, works of authorship, documentation,
formulae, data, techniques, know-how, trade secrets or intellectual property rights or any interest
therein (collectively, the “Developments”) made by the Executive, either alone or in
conjunction with others, at anytime or at any place during the Executive’s employment with the
Company, whether or not reduced to writing or practice during such period of employment, which
relate to the business in which the Company is engaged or, to the knowledge of the Executive, in
which the Company intends to engage, shall be and hereby are the exclusive property of the Company
without any farther compensation to the Executive. In addition, without limiting the generality
of the prior sentence, all Developments which are copyrightable work by the Executive are intended
to be “work made for hire” as defined in Section 101 of the Copyright Act of 1976, and shall be and
hereby are the property of the Company.

     The Executive shall promptly disclose any Developments to the Company. If any Development is
not the property of the Company by operation of law, other provisions of this Agreement or
otherwise, the Executive will, and hereby does, assign to the Company all right, title

7

 

and interest in such Development, without further consideration, and will assist the Company and
its nominees in every way, at the Company’s expense, to secure, maintain and defend the Company’s
rights in such Development. The Executive shall sign all instruments necessary for the filing and
prosecution of any applications for, or extension or renewals of, letters patent (or other
intellectual property registrations or filings) of the United States or any foreign country which
the Company desires to file and relates to any Development. The Executive hereby irrevocably
designates and appoints the Company and its duly authorized officers and agents as such Executive’s
agent and attorney-in-fact (which designation and appointment shall be deemed coupled with an
interest and shall survive the Executive’s death or incapacity), to act for and in the Executive’s
behalf to execute and file any such applications, extensions or renewals and to do all other
lawfully permitted acts to further the prosecution and issuance of such letters patent, other
intellectual property registrations or filings, or such other similar documents with the same legal
force and effect as if executed by the Executive.

     8.7 Equitable Relief: The Executive acknowledges that (a) the provisions of this Section
8 are essential to the Company; (b) that the Company would not enter into this Agreement if it
did not include this Section 8; and (c) that damages sustained by the Company as a result
of a breach of this Section 8 cannot be adequately remedied by monetary damages.
Furthermore, the Executive agrees that the Company, notwithstanding any other provision of this
Agreement, and in addition to any other remedy it may have under this Agreement, or at law, will
be entitled to injunctive and other equitable relief to prevent or curtail any breach of this
Section 8.

     9 FORM OF NOTICE

     All notices given hereunder shall be given in writing, shall specifically refer to this
Agreement and shall be personally delivered or sent by telecopy or other electronic facsimile
transmission or by registered or certified mail, return receipt requested, at the address set forth
below or at such other address as may hereafter be designated by notice given in compliance with
the terms hereof:

	 	 	 
	If to Executive:

	 	Cameron Chalmers
	 

	 	5618 Morningside Ave.
	 

	 	Dallas, Texas 75206
	 
	 	 
	If to the Company:

	 	c/o Providence Equity Partners Inc.
	 

	 	50 Kennedy Plaza, 18th Floor
	 

	 	Providence, Rhode Island 02903
	 

	 	Attention: Peter O. Wilde, Jr.
	 

	 	Telephone: (401) 751-8666
	 

	 	Facsimile: (401) 751-1790
	 
	 	 
	with a copy:

	 	Weil, Gotshal & Manges LLP
	 

	 	100 Federal Street, 34th Floor
	 

	 	Boston, MA 02110
	 

	 	Attention: Kevin J. Sullivan, Esq.
	 

	 	Telephone: (617) 772-8348
	 

	 	Facsimile: (617) 772-8333

8

 

     If notice is mailed, such notice shall be effective upon mailing, or if notice is personally
delivered or sent by electronic facsimile transmission, it shall be effective upon receipt.

     10 ASSIGNMENT

     This Agreement and all rights under this Agreement shall be binding upon and inure to the
benefit of and be enforceable by the parties hereto and their respective personal or legal
representatives, executors, administrators, heirs, distributees, devisees, legatees, successors and
assigns. Nothing in this Agreement shall be construed to confer any right, benefit or remedy upon
any person that is neither a party hereto nor a personal or legal representative, executor,
administrator, heir, distributee, devisee, legatee, successor or assign of a party hereto. This
Agreement is personal in nature, and none of the parties to this Agreement shall, without the
written consent of the others, assign or transfer this Agreement or any one or more of its rights
or obligations under this Agreement to any other person or entity, except that the Company may
assign its rights and delegate its obligations under this Agreement to any entity that acquires all
or substantially all of its business, whether by sale of assets, merger or like transaction. If
the Executive should die while any amounts are still payable, or any benefits are still required to
be provided, to the Executive hereunder, all such amounts or benefits, unless otherwise provided
herein, shall be paid or provided in accordance with the terms of this Agreement to the Executive’s
devisee, legatee or other designee or, if there be no such person, to the Executive’s estate.

     11 WAIVERS

     No delay or failure by any party hereto in exercising, protecting or enforcing any of its
rights, titles, interests or remedies under this Agreement, and no course of dealing or
performance with respect thereto, will constitute a waiver thereof. The express waiver by a party
hereto of any right, title, interest or remedy in a particular instance or circumstance will not
constitute a waiver thereof in any other instance or circumstance. All rights and remedies shall
be cumulative and not exclusive of any other rights or remedies.

     12 AMENDMENTS IN WRITING

     No amendment, modification, waiver, termination or discharge of any provision of this
Agreement, nor consent to any departure therefrom by either party, will in any event be effective
unless the same is in writing, specifically identifying this Agreement and the provision intended
to be amended, modified, waived, terminated or discharged and signed by the Company and the
Executive. Each amendment, modification, waiver, termination or discharge will be effective only
in the specific instance and for the specific purpose for which given. No provision of this
Agreement will be varied, contradicted or explained by any oral agreement, course of dealing or
performance or any other matter not set forth in an agreement in writing and signed by the Company
and the Executive.

     13 APPLICABLE LAW

     This Agreement will in all respects, including all matters of construction, validity and
performance, be governed by, and construed and enforced in accordance with, the laws of the State
of Delaware, without regard to any rules governing conflicts of laws.

9

 

     14 SEVERABILITY

     If any provision of this Agreement is held invalid, illegal or unenforceable under applicable
law, for any reason, including, without limitation, the duration of such provision, its
geographical scope or the extent of the activities prohibited or required by it, then, to the full
extent permitted by law (a) all other provisions will remain in full force and effect and will be
liberally construed in order to carry out the intent of the parties hereto as nearly as may be
possible, (b) such invalidity, illegality or unenforceability will not affect the validity,
legality or enforceability of any other provision hereof, and (c) any court or arbitrator having
jurisdiction thereover shall (and will have the power to) reform such provision to the extent
necessary for such provision to be enforceable under applicable law.

     15 COUNTERPARTS

     This Agreement, and any amendment or modification entered into pursuant to Section 12
hereof, may be executed in any number of counterparts (including facsimile counterparts), each
of which counterparts, when so executed and delivered, shall be deemed to be an original and all of
which counterparts, taken together, will constitute one and the same instrument.

     16 NO CONFLICTING AGREEMENTS

     The Executive represents and warrants to the Company that the Executive is not a party to or
bound by any confidentiality, noncompetition, nonsolicitation, employment, consulting or other
agreement or restriction which could conflict with, or be violated by, the performance of the
Executive’s duties to the Company or obligations under this Agreement.

     17 KEY PERSON LIFE INSURANCE

     The Executive acknowledges that the Company may wish to purchase insurance on the life of the
Executive, the proceeds of which would be payable to the Company. The Executive hereby consents to
such insurance and agrees to submit to any medical examination and release of medical records
required to obtain such insurance.

     18 ENTIRE AGREEMENT

     This Agreement on and as of the date hereof constitutes the entire agreement between the
Company and the Executive relating to employment of the Executive with the Company, and supersedes
and cancels any and all previous or contemporaneous contracts, arrangements or understandings,
whether oral or written between the Company and the Executive relating to his employment with or
termination from the Company. For the avoidance of doubt, Executive and the Company agree that
this Agreement does not affect either party’s rights or obligations under the Purchase Agreement,
and that the rights and obligations of the Company and the Executive thereunder shall be
independent of this Agreement and may be separately enforced.

The next page is the signature page

10

 

     IN WITNESS WHEREOF, the parties have executed and entered into this Agreement on the date set
forth above.

	 	 	 	 	 	 	 
	 	 	EXECUTIVE:	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Cameron Chalmers	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	STUDY ISLAND, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ David Phillips	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

[Signature page to Chalmers’ Employment Agreement]

 

 

Exhibit A

Terms of Incentive Equity

Capitalized terms used in this Exhibit A and not otherwise defined in the Employment

Agreement shall have the meaning ascribed to them in the Amended and Restated Limited
Liability 

Company Agreement of Holdings.

	 	 	 
	Type of equity

	 	Class B Shares and Class C Shares, collectively, non-voting Participation Shares
	 
	 	 
	Incentive equity pool

	 	The Class B Shares and Class C Shares will each initially represent 5% of the
total capitalization of Holdings
	 
	 	 
	Executive’s Share of Pool

	 	15% of the Participation Shares (split evenly between Class B Shares and Class C
Shares)
	 
	 	 
	Vesting

	 	50% of the Participation Shares will be Class B Shares subject to time based
vesting over five (5) years, with 20% of such Class B Shares vesting per year. 

50% of the Participation Shares will be Class C Shares subject to performance
based vesting on the following terms:

	 	•	 	16 2/3% shall vest upon receipt of non-tax cash distributions to the
investors equal to 3x of Aggregate Net Members Contribution;
	 
	 	•	 	16 2/3% shall vest upon receipt of non-tax cash distributions to the
investors equal to 4x of Aggregate Net Members Contribution; and
	 
	 	•	 	16 2/3% shall vest upon receipt of non-tax cash distributions to the
investors equal to 5x of Aggregate Net Members Contribution.

	 	 	 
	 

	 	Aggregate Net Members Contribution and cash distributions will exclude
proceeds from any post-closing recapitalization completed within six (6) months
of closing under the Asset Purchase Agreement. For example, if total capital
contributions are initially $109 million and post closing recapitalization is $25
million, the total capital contribution multiple will be based on $84 million and
the $25 million of recapitalization proceeds will not be considered cash
distributions toward the multiple target.
	 
	 	 
	Price/Hurdle

	 	Aggregate Net Members Contribution plus preferred return
	 
	 	 
	Other

	 	Other customary terms to be set forth in Holdings’ standard Participation Share
Agreement

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