Document:

ex10_2.htm

DEUTSCHE BANK SECURITIES INC.

DEUTSCHE BANK TRUST COMPANY AMERICAS

60 Wall Street

New York, New York 10005

 

August 20, 2009                                                                                                           CONFIDENTIAL

Simmons Bedding Company

One Concourse Parkway, Suite 800

Atlanta, Georgia 30328

Attn:           William S. Creekmuir

Executive Vice President, Chief Financial Officer, Treasurer and Assistant Secretary

Commitment Letter

Ladies and Gentlemen:

You have advised Deutsche Bank Trust Company Americas (“DBTCA”), and Deutsche Bank Securities Inc. (“DBSI” and, together with DBTCA, “DB”,
“we” or “us”) that Bedding Holdco Incorporated (“BHI”), Simmons Bedding Company (“SBC”) and certain of SBC’s subsidiaries (individually and collectively, the “Entities,”
and together with SBC and BHI, collectively, the “Company”) are considering filing voluntary petitions under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”), in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”).  In
connection with such consideration, the Company has requested that we agree to structure, arrange and syndicate a super-priority secured debtor-in-possession revolving credit facility in an aggregate principal amount of US$35,000,000 (the “Facility”) and that DBTCA commit to provide the entire principal amount of the Facility and to serve as administrative agent for the Facility.  Capitalized terms used but not defined herein
have the meanings assigned to them in the Term Sheet (as defined below).

In connection with the foregoing, DBTCA is pleased to advise you of its commitment to provide the entire amount of the Facility upon the terms and subject to the conditions set forth or referred to in this Commitment Letter and in the Summary of Terms and Conditions attached hereto as Exhibit A (the “Term
Sheet”; this letter, together with the Term Sheet and the attachments thereto, the “Commitment Letter”).  DBTCA is referred to herein as the “Initial Lender.”

 

It is agreed that (a) DBSI will act as sole bookrunner for the Facility (the “Bookrunner”), (b) DBSI will act as lead arranger for the Facility and (c) DBTCA will act as administrative agent for the Facility.  You agree that we may appoint additional financial
institutions agreed to by you to act as named agents for the Facility.  You agree that no additional bookrunners, agents, co-agents or arrangers will be appointed, no additional titles will be awarded and no compensation (other than compensation expressly contemplated by the Term Sheet or the Fee Letter referred to below) will be paid in connection with the Facility unless you and we shall so agree.

 

The Bookrunner reserves the right, prior to or after the execution of the Facility Documentation (as defined below), to syndicate the Facility (including, in its discretion, all or part of the commitments of the Initial Lender hereunder)
to a group of financial institutions identified by us in consultation with you (including, without limitation, certain of the financial institutions party to that certain Second Amended and Restated Credit and Guaranty Agreement, dated as of May 25, 2006, by and among BHI, SBC, certain subsidiaries of SBC party thereto, the financial institutions party thereto as lenders (collectively, the “Pre-Petition Lenders”) and Deutsche Bank AG,
New York Branch, as administrative agent and collateral agent) (such institutions, together with the Initial Lender but excluding the Disqualified Institutions (as defined below), collectively, the “Lenders”) other than (i) those financial institutions or other institutional lenders reasonably acceptable to the Bookrunner and identified to it in writing by you prior to the date hereof and (ii) those persons (or affiliates of such persons)
that are competitors of the Company and its subsidiaries and identified by you, in writing, prior to the date hereof, to the Bookrunner (collectively, the “Disqualified Institutions”).  The Bookrunner intends to commence its syndication efforts promptly upon the execution of this Commitment Letter, and you agree to use commercially reasonable efforts to assist the Bookrunner in completing a syndication that is satisfactory
to the Bookrunner and you until the entry of the final order approving the Facility (the “Final Order”).  Such assistance shall include (a) your using commercially reasonable efforts to ensure that the Bookrunner’s syndication efforts benefit materially from the existing banking relationships of SBC and its domestic subsidiaries, (b) the hosting, with the Bookrunner, of one or more meetings or conference calls with the
Lenders, (c) direct contact (mutually agreed by you and the Bookrunner, either in person or telephonically) between your senior management and advisors, on the one hand, and the senior management and advisors of the Lenders, on the other hand, (d) entry into confidentiality agreements with prospective Lenders that are in form and substance reasonably acceptable to you and (e) reasonable assistance in the preparation of an information package (including a confidential information memorandum) and other marketing
materials to be used in connection with the syndication.  At the request of the Bookrunner, you agree to assist in the preparation of a version of the information package and presentation consisting exclusively of information and documentation that is either publicly available or not material with respect to the Company and any of their respective securities for purposes of United States Federal and state securities laws (any such information and documentation being “Public
Lender Information”) and with any information and documentation that is not Public Lender Information being referred to herein as “Private Lender Information”).  You agree that (A) each document to be disseminated by the Bookrunner or any other agent to any Lender in connection with the Facility shall be deemed to contain Private Lender Information unless you specify otherwise and (B) any such document
that contains solely Public Lender Information will be identified by you as containing solely Public Lender Information.  Notwithstanding anything to the contrary in the foregoing, you acknowledge and agree that each of the following documents contain solely Public Lender Information (unless you notify us promptly that such document contains Private Lender Information):  (a) any drafts or final definitive documentation with respect to the Facility; (b) any administrative materials prepared
by us for Lenders (such as a Lender meeting invitation); and (c) any notification of changes in the terms of the Facility; provided that in the cases of clauses (b) and (c) above, any accompanying explanation or discussion has been approved in writing by the Company (to the extent such explanation would otherwise contain Private Lender Information). Notwithstanding any other provision of this Commitment Letter or the Fee Letter to the contrary, (I) until the closing of the Facility, unless the Company otherwise
agrees in writing, the Initial Lender shall not be relieved of or novated from its obligations hereunder and (II) neither the commencement nor the completion of the syndication of the Facility shall constitute a condition precedent to the commitments of the Initial Lender hereunder.

 

The Bookrunner will manage, in consultation with you, all aspects of the syndication, including but not limited to decisions as to the selection of institutions to be approached (other than Disqualified Institutions) and when they will be approached, when their commitments will be accepted, which institutions will participate, the allocations
of the commitments among the Lenders and the amount and distribution of fees among the Lenders, provided, however, that in connection with any syndication efforts made prior to the entry of the Final Order, the Bookrunner shall use commercially reasonable efforts to syndicate the commitments of the Initial Lender to the Pre-Petition Lenders (other than any Disqualified Institutions).
To assist the Bookrunner in its syndication efforts, you agree to reasonably promptly prepare and provide to the Bookrunner and the Initial Lender all information with respect to SBC and its subsidiaries, including all projections (the “Projections”) and all financial information, as they may reasonably request in connection with and deem reasonably necessary for the Facility.  You
hereby represent and covenant that (a) all information other than the Projections and information of an industry specific or general economic nature that has been or will be made available to the Bookrunner or the Initial Lender in writing by you or any of your representatives in connection with the Facility (collectively, the “Information”) is or will be, when furnished and taken as a whole, complete and correct in all material
respects and does not or will not, when furnished, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein, taken as a whole, not materially misleading in light of the circumstances under which such statements are made and (b) the Projections that have been or will be made available to the Bookrunner or the Initial Lender by you or any of your representatives in connection with the Facility have been or will be prepared in good
faith based upon assumptions that you believe to be reasonable at the time made (it being understood that such Projections are not to be viewed as facts and that actual results during the period or periods covered by any such Projections may differ materially from the projected results and that no assurance can be given that the projected results will be realized).  In arranging and syndicating the Facility, we will be entitled to use and rely primarily on the Information and the Projections without
responsibility for independent verification thereof.

 

As consideration for the commitments of the Initial Lender hereunder and the agreement of the Bookrunner hereunder to perform the services described herein, SBC agrees to pay or cause to be paid to DBTCA (for its account and for the account of the Bookrunner, in
each case as further described in the Term Sheet or the Fee Letter) the nonrefundable fees set forth in the Term Sheet and in the Arrangement Fee Letter, dated the date hereof and delivered herewith (the “Fee Letter”) as and when provided in the Term Sheet or the Fee Letter, as the case may be, and subject to the terms and conditions set forth herein and the approval of the Bankruptcy Court.

 

The commitments of the Initial Lender hereunder and the agreement of the Bookrunner to perform the services described herein are subject to (a) our not having discovered or otherwise become aware after the date hereof that any information disclosed in the Company’s annual report on Form 10-K filed with the U.S. Securities and Exchange
Commission with respect to the fiscal year ended December 31, 2008 was materially and adversely inaccurate with respect to the business, operations, assets, properties or financial condition of the Company and its subsidiaries, taken as a whole, as of the date of such filing, (b) there not having occurred any event, development, change or condition that has had or could be reasonably expected to have a material adverse effect on the business, operations, assets, property, or financial condition of the Company,
taken as a whole, since December 31, 2008 (other than those which may occur as a result of the events and circumstances giving rise to, leading up to and following the commencement of proceedings under Chapter 11 of the Bankruptcy Code), (c) the negotiation, execution and delivery of definitive financing documentation with respect to the Facility reflecting the terms set forth herein and in the Term Sheet and otherwise reasonably satisfactory to DB and you and DB’s and your respective counsel (such documentation,
“Facility Documentation”) and (d) our satisfaction with the entry of an interim order  (the “Interim Order”), which order shall, among other things, approve (i) the Facility and the borrowing of up to an amount to be agreed under the Facility, (ii) the Bankruptcy Code Sections 364(c)(1), (2) and (3) and 364(d) liens and superpriority claims for the
Facility and (iii) the payment by the Company of all of the fees that are provided for in the Fee Letter.  The terms and conditions of the commitments of the Initial Lender hereunder and of the Facility are not limited to those set forth herein and in the Term Sheet. Those matters that are not covered by the provisions hereof and of the Term Sheet are subject to the approval and agreement of DB and the Company.

 

SBC agrees (a) to indemnify and hold harmless each of the Bookrunner and the Initial Lender and their respective officers, directors, employees, affiliates, advisors, agents and controlling persons (each, an “Indemnified
Party”) from and against any and all losses, claims, damages and liabilities to which any such person may become subject, in each case, arising out of or in connection with this Commitment Letter, the Fee Letter, the Facility, the use of any proceeds thereof or any claim, litigation, investigation or proceeding relating to any of the foregoing (any of the foregoing, a “Proceeding”), regardless of whether any of such Indemnified
Parties is a party thereto or whether a Proceeding is initiated by or on behalf of a third party or you or any of your affiliates, and to reimburse each of such Indemnified Parties within a reasonable period of time following receipt of a reasonably detailed invoice therefor, for any reasonable and documented out-of-pocket expenses incurred in connection with investigating or defending any of the foregoing (but limited, in the case of counsel, to the reasonable and documented out-of-pocket fees and expenses of
one law firm to all indemnified parties, taken as a whole, and, if reasonably necessary, one local counsel in each material relevant local jurisdiction); provided that the foregoing indemnity will not, as to any Indemnified Party, apply to losses, claims, damages, liabilities or related expenses to the extent that they are determined by the final judgment of a court of competent jurisdiction to have resulted from the bad faith, willful misconduct
or gross negligence of such Indemnified Party or in connection with any dispute solely among the Indemnified Parties and (b) within a reasonable period of time following receipt of a reasonably detailed invoice therefor, to reimburse each of the Bookrunner and the Initial Lender for all reasonable and documented out-of-pocket expenses (including syndication expenses, without duplication, expenses required to be reimbursed pursuant to the Engagement Letter dated June 4, 2009, between you and us (the “Engagement
Letter”), and the reasonable and documented out-of-pocket fees, charges and disbursements of one law firm and, if reasonably necessary, one local counsel in each material relevant jurisdiction, in each case, to the Bookrunner and the Initial Lender, taken as a whole) incurred in connection with the arrangement and syndication of the Facility and any related documentation (including this Commitment Letter, the Fee Letter and the Facility Documentation).  No Indemnified Party shall be liable
for any damages arising from the unauthorized use by others of information or other materials obtained through electronic, telecommunications or other information transmission systems except to the extent such unauthorized use resulted from an Indemnified Party’s bad faith, willful misconduct or gross negligence, and neither the Company nor any Indemnified Party shall be liable for any special, indirect, punitive or consequential damages in connection with its activities related to this Commitment Letter
or the Facility except, in the case of the Company, to the extent such damages would otherwise be subject to indemnity hereunder.

 

It is understood and agreed that this Commitment Letter shall not constitute or give rise to any obligation on the part of the Bookrunner, the Initial Lender or any of their respective affiliates to provide any financing, except as expressly provided herein.

 

You acknowledge and agree that (a) no fiduciary, advisory or agency relationship between you, on the one hand, and the Bookrunner or the Initial Lender, on the other hand, is intended to be or has been created in respect of any of the transactions contemplated by this Commitment Letter, irrespective of whether the Bookrunner or the Initial
Lender has advised or is advising you on other matters, (b) the Bookrunner and the Initial Lender, on the one hand, and you, on the other hand, have an arms-length business relationship that does not directly or indirectly give rise to, nor do you rely on, any fiduciary duty on the part of the Bookrunner or the Initial Lender, (c) you are capable of evaluating and understanding, and you understand and accept, the terms, risks and conditions of the transactions contemplated by this Commitment Letter, (d) you have
been advised that each of the Bookrunner and the Initial Lender is engaged in a broad range of transactions that may involve interests that differ from your interests and that neither the Bookrunner nor the Initial Lender has any obligation to disclose such interests and transactions to you by virtue of any fiduciary, advisory or agency relationship and (e) you waive, to the fullest extent permitted by law, any claims you may have against the Bookrunner and the Initial Lender for breach of fiduciary duty or alleged
breach of fiduciary duty and agree that neither the Bookrunner nor the Initial Lender shall have any liability (whether direct or indirect) to you in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of you, including your stockholders, employees or creditors.  Additionally, you acknowledge and agree that, neither the Bookrunner nor the Initial Lender is advising you as to any legal, tax, investment, accounting or regulatory matters in
any jurisdiction.  You shall consult with your own advisors concerning such matters and shall be responsible for making your own independent investigation and appraisal of the transactions contemplated hereby, and neither the Bookrunner nor the Initial Lender shall have any responsibility or liability to you with respect to your investigation and appraisal of such transactions.

 

You acknowledge that the Bookrunner, the Initial Lender and their respective affiliates may be providing debt financing, equity capital or other services (including but not limited to financial advisory services) to other companies in respect of which you may have conflicting interests
regarding the transactions described herein and otherwise. Neither the Bookrunner, the Initial Lender nor any of their respective affiliates will use confidential information obtained from you by virtue of the transactions contemplated by this Commitment Letter or their other relationships with you in connection with the performance by the Bookrunner, the Initial Lender or any of their respective
affiliates of services for other companies, and neither the Bookrunner, the Initial Lender or any of their respective affiliates will furnish any such information to other companies. You also acknowledge that neither the Bookrunner, the Initial Lender nor any of their respective affiliates has any obligation to use in connection with the transactions contemplated by this Commitment Letter,
or to furnish to the Company or its subsidiaries or representatives, confidential information obtained by the Bookrunner, the Initial Lender or any of their respective affiliates from any other company or person.

 

This Commitment Letter shall not be assignable by you without the prior written consent of the Bookrunner and the Initial Lender (and any purported assignment without such consent shall be null and void). This Commitment Letter is intended to be solely for the benefit of the parties
hereto (and Indemnified Parties), is not intended to confer any benefits on, or create any rights in favor of, any person other than the parties hereto (and Indemnified Parties) and may not be amended or waived except by an instrument in writing signed by SBC, the Bookrunner and the Initial Lender. Any and all obligations of, and services to be provided by, the Bookrunner or the Initial Lender hereunder
may be performed, and any and all rights of such person hereunder may be exercised, by or through their respective affiliates without affecting or releasing the obligations of such person hereunder. This Commitment Letter may be executed in any number of counterparts, each of which shall be an original and all of which, when taken together, shall constitute one agreement. Delivery of an executed signature page of this Commitment Letter by facsimile, portable document format (“.pdf”) or other electronic
transmission shall be effective as delivery of a manually executed counterpart hereof. This Commitment Letter, the Fee Letter and the Engagement Letter are the only agreements entered into among us with respect to the Facility and set forth the entire understanding of the parties with respect thereto. THIS COMMITMENT LETTER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF, TO THE EXTENT THAT THE SAME ARE NOT
MANDATORILY APPLICABLE BY STATUTE AND WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION).

 

EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF ANY PARTY RELATED TO OR ARISING OUT OF THIS COMMITMENT LETTER OR THE PERFORMANCE OF SERVICES HEREUNDER.

 

Each of the parties hereto hereby irrevocably and unconditionally (a) submits, for itself and its property, to the exclusive (subject to the proviso below) jurisdiction of any New York State court or Federal court of the United States of America sitting in New York County, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to this Commitment Letter or the Fee Letter or the transactions contemplated hereby, or for recognition or enforcement of any judgment, and agrees that all claims in respect of any such action or proceeding may be heard and determined only in such courts located in New York County, provided however, that DB shall be entitled to assert jurisdiction over you
and your property in any court in which jurisdiction may be laid over you or your property in order to enforce any judgment obtained in any action or proceeding in any such court located in New York County or any appellate court from any thereof and the parties also submit to the jurisdiction of the Bankruptcy Court, (b) waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or
relating to this Commitment Letter or the Fee Letter or the transactions contemplated hereby in any New York State or Federal court, (c) waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court and (d) agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Service of any process,
summons, notice or document by registered mail or overnight courier addressed to you at the address above shall be effective service of process against you for any suit, action or proceeding brought in any such court.

 

This Commitment Letter is delivered to you on the understanding that this Commitment Letter and the Fee Letter, and their respective terms and substance (and any other work product provided by the Bookrunner, the Initial Lender or any of their respective affiliates, employees, officers,
attorneys or other professional advisors in connection herewith or therewith, in each case that is (i) not based upon any information provided by or on behalf of the Company or which is otherwise publicly available and (ii) designated as privileged or confidential), shall be for your confidential use only and shall not be disclosed by you (or on your behalf) to any other person other than to prospective purchasers of the Company and your and their affiliates, controlling persons, directors, employees, officers,
accountants, attorneys, agents, financial advisors and other advisors involved in the consideration of this matter; provided that nothing herein shall prevent you from disclosing such information (a) pursuant to the order of any court or administrative or regulatory agency or in any legal, judicial, administrative or regulatory proceeding or (b) otherwise as required by applicable law or regulation (including in any public record in which it is
required by law to be filed) or by subpoena or similar legal process (in which case you shall inform the Bookrunner and the Initial Lender promptly to the extent permitted by law).  The restrictions contained in the preceding sentence shall cease to apply (except in respect of the Fee Letter and its terms and substance) after this Commitment Letter has been accepted by you.

 

The Bookrunner and the Initial Lender will use all confidential information provided to it by or on behalf of the Company hereunder solely for the purpose of providing the services which are the subject of this Commitment Letter and will not disclose any such information other than
to its affiliates, controlling persons, directors, employees, officers, accountants, attorneys, agents, financial advisors and other advisors involved in the consideration of this matter; provided that nothing herein shall prevent the Bookrunner or the Initial Lender from disclosing such information (a) pursuant to the order of any court or administrative or regulatory agency or in any legal, judicial, administrative or regulatory proceeding,
(b) otherwise as required by applicable law or regulation (including in any public record in which it is required by law to be filed) or by subpoena or similar legal process (in which case the Bookrunner or the Initial Lender, as applicable, shall inform SBC promptly to the extent permitted by law) or (c) to prospective Lenders, participants or assignees under the Facility in each case who sign a confidentiality agreement as required hereunder.

 

The compensation, reimbursement, indemnification, confidentiality, jurisdiction and waiver of jury trial provisions contained herein shall remain in full force and effect regardless of whether definitive financing documentation for the Facility shall be executed and delivered and notwithstanding the termination of this Commitment Letter,
provided that this Commitment Letter shall in all other respects be superseded by the definitive financing documentation for the Facility upon the effectiveness thereof.

 

Each of the Bookrunner and the Initial Lender hereby notifies you that pursuant to the requirements of the U.S.A. PATRIOT ACT (Title III of Pub. L. 107 56 (signed into law October 26, 2001)) (the “Patriot Act”),
it, on behalf of itself and each of the Lenders, may be required to obtain, verify and record information that identifies the Company, which information may include the name and address of the Company, and other information that will allow the Bookrunner, the Initial Lender and each of the Lenders to identify the Company in accordance with the Patriot Act. This notice is given in accordance with the requirements of the Patriot Act and is effective for
the Bookrunner and the Initial Lender on behalf of themselves and each of the Lenders.

 

 

If the foregoing correctly sets forth our agreement, please indicate your acceptance of the terms of this Commitment Letter and the Fee Letter by returning to us executed counterparts of this Commitment Letter and the Fee Letter not later than 5:00 p.m., New York City time, on August 20, 2009. The commitment of the Initial Lender hereunder
and the agreement of the Bookrunner hereunder to perform the services contemplated herein will expire at such time in the event we have not received such executed counterparts in accordance with the immediately preceding sentence. In the event that the entry of the initial order approving the Facility does not occur on or before October 31, 2009, then this Commitment Letter and the commitments hereunder shall automatically terminate unless the Bookrunner
and the Initial Lender shall, in their sole discretion, agree in writing to an extension.

 

[Remainder of this page intentionally left blank]

  

  

  

We are pleased to have been given the opportunity to assist you in connection with this important financing.

 

 

Very truly yours,

DEUTSCHE BANK TRUST COMPANY  AMERICAS

	
By
	 /s/ Keith C. Braun

Name:  Keith C. Braun

Title:  Managing Director

	
By
	 /s/ Vincent D'Amore

Name:  Vincent D'Amore

Title:  Director

	
  
	
DEUTSCHE BANK SECURITIES INC.

	
  
	
By
	 /s/ Keith C. Braun

Name:  Keith C. Braun

Title:  Managing Director

	
  
	
By
	 /s/ Vincent D'Amore

Name:  Vincent D'Amore

Title:  Director

  

  

  

 

Accepted and agreed to as of the date first

written above by:

SIMMONS BEDDING COMPANY

For itself and each of its affiliates

constituting the Company

By:  /s/ William S. Creekmuir

Name: William S. Creekmuir

Title: Executive Vice President,

Chief Financial Officer,

Treasurer and Assistant Secretary

  

  

  

EXHIBIT A

Term SheetEX-10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is entered into by and between Michael Chasen (“you”)
and Blackboard Inc. (“Blackboard”).

WHEREAS, Blackboard desires to continue to employ you on the terms and conditions hereinafter
set forth and you desire to accept such continuation of employment;

NOW, THEREFORE, in consideration of the promises and the mutual agreements contained herein,
the parties agree as follows:

1. Responsibilities. Blackboard agrees to continue to employ you as President and Chief
Executive Officer. You shall devote your entire business time, attention, skill and energy
exclusively to the business of Blackboard and perform the responsibilities assigned to you in
accordance with the standards and policies that Blackboard may from time to time establish. You
may engage in appropriate civic or charitable activities and devote a reasonable amount of time to
private investments or boards or other activities provided that such activities do not interfere or
conflict with your responsibilities and are not or are not likely to be contrary to Blackboard’s
interests. You and Blackboard agree that your position is essential to Blackboard’s success and
that the highest level of performance is required from you.

2. Term of Employment. Blackboard agrees to employ you, and you agree to remain in
employment with Blackboard, until June 30, 2013 (the “Term”), unless your employment terminates
earlier pursuant to Section 5 below. Upon expiration of the Agreement, the Agreement will extend
automatically until it is terminated pursuant to Section 5.

3. Compensation.

(a) Base Compensation. Your annual base compensation shall be US$550,000 (“Base
Compensation”), less applicable taxes and withholdings, payable in accordance with Blackboard’s
regular payroll practices from time to time in effect. The Compensation Committee of the Board of
Directors (the “Committee”) may review and adjust your Base Compensation periodically.

(b) Bonus Compensation. To be eligible to receive an annual bonus for any fiscal
year, you must meet financial performance targets set by the Board and be employed through the
payment date of the bonus. Your target bonus shall be 100% of your Base Compensation. The actual
amount of the bonus, if any, will be determined by the Compensation Committee in its sole
discretion (the “Bonus”). If a Bonus is awarded, it will be paid no later than March 15 of the
year following that for which the Bonus is being awarded. You will receive your Bonus for fiscal
year 2009, if any, by March 15, 2010. The Committee may review and adjust your Bonus Compensation
periodically

(c) Restricted Stock Unit Award. You will be granted an award of 120,000 restricted
stock units (“RSUs”). The RSUs will vest on June 30, 2013 or, if it would occur prior to then,
upon a Change in Control Event (as defined in the Blackboard Amended and Restated 2004 Stock
Incentive Plan (the “2004 Plan”)); provided, however, that the shares of common stock underlying
the RSUs shall not be delivered to you until the earlier of (i) the date of your “separation from
service” (as defined below) and (ii) a “Section 409A Change in Control Event” (as defined below);
and, provided, further, however, that in the event that you are terminated for Cause, the RSUs
(whether vested or unvested) will be immediately and automatically forfeited. If you are
terminated without Cause, resign for Good Reason, die, or incur a Disability, in each case prior to
June 30, 2013, such portion of the award shall vest as determined by the sum of the digits method
using the number of whole calendar months elapsed after June 2009 (e.g., if terminated after 12
months, then 78/1176 of the award shall vest). At your written election received by the Company no
later than 30 days following the date that the Board of Directors approves the grant of the RSUs to
you, you may choose to receive up to one half (1/2) of your vested shares on December 31, 2015.
For purposes of this Agreement, a “Section 409A Change in Control Event” shall be an event or
occurrence that constitutes both (i) a Change in Control Event as defined in the 2004 Plan and (ii)
a “change in control event” as defined in Treasury Regulation Section 1.409A-3(i)(5)(i). The RSUs
shall be subject to the terms and conditions of Section 6(b) hereof. In the event of any conflict
between this Section 3(c) and the written agreement granting the RSUs, such latter agreement shall
govern.

(d) Long-Term Cash Incentive. Your long-term cash incentive awards relating to fiscal
year 2010 and later are canceled but the long-term cash incentive awards relating to fiscal year
2009 will be paid in 2010 according to its terms. No further payments will be made under such
awards after this year including awards made in prior years.

(e) Business Expenses. During the Term, Blackboard shall pay or reimburse you for all
ordinary and reasonable business-related expenses you incur in the performance of your duties under
this Agreement. Blackboard will reimburse you for all such expenses upon the presentation by you
of an itemized account of such expenditures, together with supporting receipts and other
appropriate documentation.

4. Employee Benefits.

(a) In General. During the Term, you shall be eligible for all employee benefits that
Blackboard may provide to employees who are officers of Blackboard, which may include, but are not
limited to benefits such as health insurance plans, a stock option plan, paid holidays and 401(k),
subject in each case to the generally applicable terms and conditions of any such plan or program
in question and to the determinations of any person or committee administering any such plan or
program. Blackboard reserves the right to modify or terminate any such benefit at any time.

(b) Vacation. You shall be eligible to take paid vacation during each calendar year
in accordance with Blackboard’s Employment Manual.

5. Termination of Employment. Upon the effective date of termination of your employment
with Blackboard (the “Termination Date”), you will not be eligible for further compensation,
benefits or perquisites under Sections 3 and 4 of this Agreement, other than those that have
already accrued or vested as of the Termination Date. Termination of your employment may occur
under any of the following circumstances:

(a) Termination of Employment by Blackboard. Blackboard has the right to terminate
your employment at any time with or without Cause. For all purposes under this Agreement,
(“Cause”) shall mean:

(i) nonfeasance or your material breach of this Agreement, provided that Blackboard first
provides you with written notice of such failure and you fail to cure it within thirty (30) days of
such notice;

(ii) an act or omission by you that constitutes gross misconduct, moral turpitude or
fraud;

	 	(iii)	 	a conviction for, or a plea of “guilty” or “no contest” to, a
felony; or,

(iv) a material breach of any legally recognized duty owed to Blackboard (e.g., your duty of
loyalty and confidentiality).

(b) Resignation by You. You have the right to resign your employment with Blackboard
at any time, with or without Good Reason, provided that you may resign with Good Reason only if (i)
you provide notice of such reason for resignation to Blackboard within 90 days of the initial
existence of the condition giving rise to the Good Reason and stating that such reason will be
grounds for resignation with Good Reason, and (ii) if Blackboard fails to cure such reason within
thirty (30) days following receipt of such notice. Furthermore, any such resignation shall occur
within one (1) year of the occurrence of a Good Reason event.

(i) For purposes of this Agreement, “Good Reason” shall mean (A) a material failure by
Blackboard to perform its obligations under this Agreement; (B) your material relocation
outside of your current residential area without your consent; or (C) a material diminution
of your compensation, duties, or responsibilities at any time or for any reason other than
for Cause during the Term of this Agreement;

(ii) During the Term, you agree to provide Blackboard ninety (90) days’ prior written notice
of your resignation, with or without Good Reason. Blackboard may in its sole discretion
place you on paid administrative leave as of any date prior to the end of such ninety (90)
day notice period and request that you no longer be present on Blackboard premises. During
any period of paid administrative leave, you will not be authorized to act as a
representative, or make any statements on behalf of, Blackboard; or

(c) Death or Disability. Your employment shall be deemed to have been terminated by
you upon your (i) death or (ii) inability to perform your duties under this Agreement, even with
reasonable accommodation, for more than twenty-six (26) weeks, whether or not consecutive, in any
twelve-month period (“Disability”). Termination will be effective upon the occurrence of such
event.

6. Severance Benefits.

(a) Severance. If during the Term of this Agreement, Blackboard terminates your
employment without Cause (as defined in Section 5(a)) or you resign for Good Reason (as defined in
Section 5(b)) and comply with the obligations set forth herein, then Blackboard will pay you
$999,999 (“Severance Payment”) within 30 days following the effective date of termination and on
each of the next two succeeding anniversaries of the date of your termination. Each Severance
Payment shall be less applicable taxes and withholdings. To receive the Severance Payments you
must sign a release of any and all claims in the form provided by Blackboard (the “Release”), and
any applicable revocation period within respect to such release must expire within 30 days
following your date of termination. Notwithstanding the foregoing, in the event that your
termination occurs within the two year period following a Section 409A Change in Control Event, the
aggregate amount of the three installments of the Severance Payments shall be made to you in a lump
sum within 30 days following your termination of employment, provided that the Release is executed
and any applicable revocation period with respect thereto has expired as of such date.

(b) Section 409A. Subject to this Section 6(b), any payments or benefits under
Section 6 shall begin only upon the date of your “separation from service” as defined below which
occurs on or after the date of termination under Section 5. The following rules shall apply with
respect to distribution of the payments and benefits, if any, to be provided to you under this
Section 6:

(i) It is intended that each installment of the payments and benefits provided under
Section 6 shall be treated as a separate “payment” for purposes of Section 409A of the U.S.
Internal Revenue Code of 1986, as amended, and the guidance issued thereunder (“Section
409A”). Neither Blackboard nor you shall have the right to accelerate or defer the delivery
of any such payments or benefits except to the extent specifically permitted or required by
Section 409A;

(ii) If, as of the date of your “separation from service” from Blackboard, you are not
a “specified employee” (each within the meaning of Section 409A), then each installment of
the payments and benefits shall be made on the dates and terms set forth in Section 6; and

(iii) If, as of the date of your “separation from service” from Blackboard, you are a
“specified employee” (each, for purposes of this Agreement, within the meaning of Section
409A), then:

(A) Each installment of the payments and benefits due under Section 6 that, in
accordance with the dates and terms set forth herein, will in all circumstances, regardless
of when the separation from service occurs, be paid within the short-term deferral period
(as defined under Section 409A) shall be treated as a short-term deferral within the meaning
of Treasury Regulation Section 1.409A-1(b)(4) to the maximum extent permissible under
Section 409A; and

(B) Each installment of the payments and benefits due under Section 6 that is not
described within Section 6(b)(iii)(A) and that would, absent this subsection, be paid within
the six-month period following your “separation from service” from Blackboard shall not be
paid until the date that is six months and one day after such separation from service (or,
if earlier, your death), with any such installments that are required to be delayed being
accumulated during the six-month period and paid in a lump sum on the date that is six
months and one day following your separation from service and any subsequent installments,
if any, being paid in accordance with the dates and terms set forth herein; provided,
however, that the preceding provisions of this sentence shall not apply to any installment
of payments and benefits if and to the maximum extent that that such installment is deemed
to be paid under a separation pay plan that does not provide for a deferral of compensation
by reason of the application of Treasury Regulation 1.409A-1(b)(9)(iii) (relating to
separation pay upon an involuntary separation from service) or Treasury Regulation
1.409A-1(b)(9)(iv) (relating to reimbursements and certain other separation payments). Any
installments that qualify for the exception under Treasury Regulation Section
1.409A-1(b)(9)(iii) must be paid no later than the last day of the second taxable year
following the taxable year in which the separation from service occurs.

(iv) The determination of whether and when a separation from service has occurred shall
be made in a manner consistent with, and based on the presumptions set forth in, Treasury
Regulation Section 1.409A-1(h).

(v) All reimbursements and in-kind benefits provided under the Agreement shall be made
or provided in accordance with the requirements of Section 409A to the extent that such
reimbursements or in-kind benefits are subject to Section 409A.

(c) 280G Gross Up. In the event that it is determined that any payment, award,
benefit or distribution made hereunder or otherwise by the Company (or its successor) to or
for your benefit (collectively, “Payments”) would be subject to Section 280G of the Code and
the excise tax under Section 4999 of the Code (in each case, including any corresponding
provisions of state or local law) as a result of such Payments being contingent upon a
change in control (collectively, the “Excise Tax”), then Blackboard will pay to you an
amount (the “280G Payment”) that is equal to the sum of (i) the excess, if any, of (A) your
actual Excise Tax over (B) the Excise Tax that you would have owed had the RSUs vested
ratably on a monthly basis between the date of grant of the RSUs and June 30, 2013 (such
amount, the “Excise Tax Amount”) and (ii) any federal and state income, employment, Excise
Taxes or other taxes payable by you as a result of receiving the Excise Tax Amount;
provided, however, that in no event shall Blackboard be obligated to make a 280G Payment
under this provision in excess of one (1) million dollars. The 280G Payment shall be made
to you as soon as practicable following the determination that such payment is due to you,
provided that in no event will the 280G Payment be made to you later than the end of your
taxable year following the year in which the Excise Tax is due to the taxing authorities.
You and Blackboard shall cooperate in good faith on the determination of whether a 280G
Payment is due.

7. Return of Property. Upon termination of your employment with Blackboard for any reason,
you agree to immediately return to Blackboard all equipment, credit cards and other property
belonging to Blackboard. This includes all documents and other information prepared by you or on
your behalf or provided to you in connection with performing your duties for Blackboard, regardless
of the form in which such documents or information are maintained or stored, including computer,
typed, written, imaged, audio, video, micro-fiche, electronic or any other means of recording or
storing documents or other information. You hereby warrant that you will not retain in any form
any such document or other information or copies thereof, except as provided in the following
sentence. You may retain a copy of any documents describing any rights or obligations you may have
after the Termination Date under any employee benefit plan or other agreements. If Blackboard
contends that you have improperly retained any property, it will notify you in writing within ten
(10) days of such and afford you five (5) days to provide a substantive written response thereto.

8. Confidentiality, Intellectual Property.

(a) Confidential Information. You shall not disclose or use at any time, either
during your employment or after your Termination Date, any confidential information, including, but
not limited to, the terms of this Agreement, existing and prospective investments, trade secrets or
proprietary information, strategic sourcing information or analysis, financing information and
sources, patents, patent applications, developmental or experimental work, formulas, test data,
prototypes, models, know how and product specifications, financial information, financial
projections and pro forma financial information, sales and marketing strategies, plans and programs
and product development information, employees’ and consultants’ benefits, perquisites, salaries,
stock options, compensation, formulas or bonuses, and their non-business addresses and telephone
numbers, organizational structure and reporting relationships, business plans, names, addresses,
phone numbers of customers, contracts, including contracts with clients, suppliers, independent
contractors or employees, business plans and forecasts, and existing and prospective projects or
business opportunities (“Confidential Information”) of Blackboard, whether patentable or not, which
you learn as a result of your employment with Blackboard, whether or not you developed such
information. “Confidential Information” shall not include, without limitation, information that is
or later becomes publicly available in a manner wholly unrelated to any breach of this Agreement by
you as of the date it enters the public domain. If you are uncertain whether something is
Confidential Information you should treat it as Confidential Information until you receive
clarification from Blackboard that it is not Confidential Information. Confidential Information
shall remain at all times the property of Blackboard. You may use or disclose Confidential
Information only as authorized and necessary in performing your responsibilities under this
Agreement during your employment with Blackboard; with the General Counsel’s prior written consent;
in a legal proceeding between you and Blackboard to establish the rights of either party under this
Agreement, provided that you stipulate to a protective order to prevent any unnecessary use or
disclosure; or subject to a compulsory legal process that requires disclosure of such information,
provided that you have complied with the following procedures to ensure that Blackboard has an
adequate opportunity to protect its legal interests in preventing disclosure. Upon receipt of a
subpoena that could possibly require disclosure of Confidential Information, you shall provide a
copy of the compulsory process and complete information regarding the circumstances under which you
received it to Blackboard by hand delivery within twenty-four (24) hours. You will not make any
disclosure until the latest possible date for making such disclosure in accordance with the
compulsory process (“Latest Possible Date”). If Blackboard seeks to prevent disclosure in
accordance with the applicable legal procedures, and provides you with notice before the Latest
Possible Date that it has initiated such procedures, you will not make disclosures of any
Confidential Information that is the subject of such procedures, until such objections are
withdrawn or ruled on. You hereby acknowledge that any breach of this Section 8(a) would cause
Blackboard irreparable harm.

(b) Outside Activities. You shall submit to Blackboard’s General Counsel, within a
reasonable time prior to dissemination, the text of any speech, professional paper, article or
similar communication created by you which relates to Blackboard’s present or future business or
research and development endeavors. The General Counsel then will notify you if the dissemination
of the communication is permitted under the terms of this Agreement.

(c) Ownership of Confidential Information; Return of Materials. All Confidential
Information, including without limitation that which is produced by or for Blackboard by you or
anyone else, all materials embodying Confidential Information, and all copies thereof, will remain
the property of Blackboard or of the third party who has furnished it to Blackboard. On your
Termination Date, or at the written request of Blackboard at any time, you will immediately deliver
to Blackboard all materials, and copies thereof, which are in your possession or control and which
contain or are related in any way to any Confidential Information. This includes all documents and
other information prepared by you or on your behalf or provided to you in connection with your
duties while employed by Blackboard, regardless of the form in which such document or information
are maintained or stored, including computer, typed, written, imaged, audio, video, micro-fiche,
electronic or any other means of recording or storing documents or other information. You hereby
warrant that you will not retain in any form any such document or other information or copies
thereof. You may retain a copy of this Agreement and any other document or information describing
any rights you may have after the termination of your employment.

(d) Intellectual Property.

(i) For purposes of this Agreement the following terms will be defined as indicated:

(A) “Inventions” shall mean inventions, ideas, formula, developments, designs, systems,
software, discoveries, and improvements to existing technology, whether or not patentable.

(B) “Improvements” shall mean all inventions, developments, modifications, changes, whether or
not patentable, made to any Inventions and/or Confidential Information.

(C) “Copyrighted Work” shall mean any work of authorship eligible for copyright protection
under the federal and state laws of the United States and foreign countries.

(D) “Copyrights” shall mean any and all rights granted in Copyrighted Works under the laws of
the United States and foreign countries.

(ii) Exclusions. An Invention, Copyright or Copyrighted Work will not be subject to
this Agreement when all the following criteria are met: (A) no equipment, supplies, facilities, or
Confidential Information of Blackboard was used in developing the Invention or Copyrighted Work or
in applying for or obtaining a patent or Copyright; (B) the Invention or Copyrighted Work was
developed entirely on your own time; (C) the Invention or Copyrighted Work does not relate directly
to the business of Blackboard or to Blackboard’s actual or demonstrably anticipated research or
development; and (D) the Invention, Copyright or Copyrighted Work does not result from any work
performed by you for Blackboard or at the request of Blackboard.

(iii) Ownership and Assignment of Rights.

(A) All Inventions, Improvements, or Confidential Information that you have or will conceive
or develop, either alone or with others, shall be the exclusive property of Blackboard. You hereby
assign, and agree to assign, to Blackboard your entire right, title, and interest in and to (I) any
and all such Improvements and Inventions, (II) any and all applications for patent, domestic and
foreign that may be filed on said Improvements and Inventions, and (III) any and all patents that
may issue or be granted on such applications, except those excluded under Section 8(d)(ii) of this
Agreement. Both during and after your Termination Date you will on request immediately sign and
deliver to Blackboard without further consideration any and all documents necessary to perfect the
assignments granted in this Section.

(B) You understand and agree that all Copyrighted Works conceived, developed, created or
contributed to by you shall be considered works made for hire under the copyright laws of the
United States and shall be the exclusive property of Blackboard. Blackboard shall be considered
the author of such Copyrighted Works. You further understand and agree that in the event any
Copyrighted Work created by you within the scope of, or in connection with, your work with
Blackboard, or at the request of Blackboard, fails to meet the legal requirements of a work made
for hire owned by Blackboard, then this Agreement shall operate to assign to Blackboard all of your
rights, title, and interest, including copyrights, in, to and under such Copyrighted Works.
Blackboard shall have sole and absolute discretion to register, enforce, and/or assign Copyrights
for such Copyrighted Works.

(iv) Assistance and Designation of Agent.

(A) Both during and after your Termination Date, you will on request immediately sign and
deliver to Blackboard without further consideration, all instruments in writing requiring your
signature and deemed by Blackboard to be necessary or advisable in, or in connection with, filing
or prosecuting of any application for any patent covering Improvements, Inventions or any
divisional, continuing, renewal or reissue application or reexamination request based upon any
application for patent. In the event that Blackboard is unable for any reason whatsoever to secure
your signature to any lawful and necessary documents required to apply for or execute any patent
application with respect to such idea, process, development, design, system, program, discovery,
invention, improvement or writing (including renewals, extensions, continuations, divisions or
continuations in pat thereof), you hereby irrevocably designate and appoint Blackboard and its
officers and agents, as your agents and attorneys-in-fact to act for and on your behalf and instead
of you, to execute and file any such application and to do all other lawfully permitted acts to
further the prosecution and issuance of patents thereon with the same legal force and effect as if
executed by you.

(B) You will aid Blackboard promptly on request, and without further consideration, in any
matter pertaining to or relating to the protection of any of the Improvements, Inventions,
applications for patents covering Inventions or Improvements, and/or Copyrighted Works. If such
request is made after your employment has ended, Blackboard will reimburse you for any expenses
incurred and compensate for any services rendered in complying with such request at the same rate
at which you were compensated during the final month of your employment.

9. Non-Solicitation/Non-Competition.

During your employment and for three (3) years following your Termination Date (the “Restricted
Period”) you will not, except with prior written approval of the then Chief Executive Officer,
directly or indirectly, individually or as part of or on behalf of any other person, company,
employer or other entity: (a) hire or attempt to solicit for hire, or encourage to end their
relationship with Blackboard, any persons who have been employed by Blackboard at any time within
the previous six (6) months (a “Covered Employee”); (b) sell or otherwise provide, or solicit for
the purposes of selling or otherwise providing, services or products that are similar or related to
those sold by Blackboard as of the Termination Date to any person or entity that has within the
twelve (12) months preceding the Termination Date purchased any such services or products from
Blackboard and with whom you had direct contact on behalf of Blackboard during that time; or (c)
own, manage, operate, control, be employed by, participate in, work in, advise, consult or contract
with, or support in any manner any business that is similar to the type of business conducted by
Blackboard as of the Termination Date within the geographical area in which, as of the Termination
Date, Blackboard is actively marketing or has made a significant investment in time and money to
prepare to market its products or services within the six (6) month period after the Termination
Date. You agree that these provisions are necessary to protect Blackboard’s legitimate business
interests. You warrant that the provisions will not unreasonably interfere in your ability to earn
a living or to pursue your occupation after the Termination Date. You agree to notify any person or
entity to which you provide services during the Restricted Period of your obligations under this
Section 9.

10. Non-Disparagement. You agree to refrain from making any derogatory or defamatory
remarks or comments that may disparage Blackboard, or any director, officer, employee or agent of
Blackboard during your employment or after your Termination Date.

11. Other Obligations. You warrant that you are not subject to any other obligations
that would conflict with or inhibit your ability to perform your duties under this Agreement. You
represent that you have disclosed to Blackboard the existence and contents of all covenants not to
compete that you have entered into with any other entity. You further warrant that you have not
and will not bring to Blackboard or use in the performance of your responsibilities at Blackboard
any equipment, supplies, facility or trade secret information (that is not generally available to
the public) of any current or former employer or organization other than Blackboard to which you
provided services, unless you have obtained written authorization for their possession and use.

12. Miscellaneous Provisions.

(a) Notices. Unless otherwise provided herein, any notice or other communication required
to be given under the terms of this Agreement must be in writing and must be personally delivered
(i.e., left with an individual 18 years of age or older) or sent by overnight delivery. Documents
sent by overnight delivery will be presumed received on the next business day following the day
sent.

	 	 	 	 	 
	If notice is to be sent to Blackboard, it will be sent to:
	 	If notice is to be
	General Counsel
	 	sent to you, it
	Blackboard Inc.
	 	will be sent to the
	650 Massachusetts Ave., NW, 6th Floor
	 	address that
	Washington DC 20001-3796
	 	Blackboard has on
	With a copy to:
	 	file for you at the
	Douglas B. Mishkin, Esq.
	 	time the notice is
	Patton Boggs, LLP
	 	to be sent.
	2550 M Street, NW
Washington, DC 20037
	 	 	 	 
	 
	 	 	 	 

(b) Dispute Resolution. You and Blackboard agree that any dispute between you and
Blackboard will be finally resolved by binding arbitration in the District of Columbia in
accordance with the Federal Arbitration Act (“FAA”). You and Blackboard agree to follow the
Dispute Resolution Procedures set forth in Attachment A to this Agreement.

(c) Nature of Agreement. This Agreement and the attachment hereto constitute the
entire agreement between you and Blackboard and supercede all prior agreements and understandings
between you and Blackboard relating to the matters covered by this Agreement, except for the
existing stock option agreements between you and Blackboard, which remain in full force and effect.
Any long-term equity incentives between Blackboard and you shall be contained in a separate
agreement. In making this Agreement, the parties warrant that they did not rely on any
representations or statements other than those contained in this Agreement. No modification of or
amendment to this Agreement will be effective unless in writing and signed by Blackboard’s General
Counsel. A delay or failure by Blackboard to exercise any right that is the subject of this
Agreement will not be construed as a waiver of that right. A waiver of a breach on any one
occasion will not be construed as a waiver of any other breach. Regardless of the choice of law
provisions of the District of Columbia or any other jurisdiction, the parties agree that this
Agreement shall be otherwise interpreted, enforced and governed by the laws of the District of
Columbia. This Agreement will continue in effect until all obligations under it are fulfilled. If
any part of this Agreement is held by a court of competent jurisdiction to be void or
unenforceable, the remaining provisions shall continue with full force and effect. This Agreement
is not assignable by you. This Agreement is binding on you with respect to Blackboard, its
successors or assigns. This Agreement may be executed in any number of counterparts each of which
shall be an original, but all of which together shall constitute one instrument. The headings in
this Agreement are for convenience only and shall not effect the interpretation of this Agreement.
You further certify that you fully understand the terms of this Agreement and have entered into it
knowingly and voluntarily.

(d) Effect of Termination. Notwithstanding any termination or expiration of this
Agreement, the rights and obligations under this Agreement, which by their nature should survive,
will remain in effect after the termination or expiration of this Agreement.

(e) Section 409A. This Agreement is intended to comply with the provisions of Section
409A and the Agreement shall, to the extent practicable, be construed in accordance therewith.
Terms defined in the Agreement shall have the meanings given such terms under Section 409A if and
to the extent required in order to comply with Section 409A. Notwithstanding the foregoing, to the
extent that the Agreement or any payment or benefit hereunder shall be deemed not to comply with
Section 409A, then neither Blackboard, the Board of Directors nor its or their designees or agents
shall be liable to you or any other person for any actions, decisions or determinations made in
good faith.

IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of
Blackboard by its authorized officer, as of the day and year set forth under their signatures
below.

Blackboard Inc.

	 	 	 
	     

Michael Chasen
	 	By:      

Matthew Small, Chief Business Officer

	Date:       
	 	Date:

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