ficant impact on the consolidated financial statements. 3. RESTRUCTURE OF CERTAIN SUBSIDIARIES In May 2011, a wholly owned subsidiary of KUE Inc., Knowledge Schools, Inc., the parent company of KLC, converted from a corporation into a limited liability company and changed its name to Knowledge Schools LLC (KS). In co

d Partner” 41,530,000 Common LP Units Approx. 1,000 General Partner Units 1,000,000 Common LP Units 17.9% to 40.0%" KU Education Inc “KUE Inc.” Knowledge Schools, Inc. Knowledge Learning Corporation “KLC” " KUE owns preferred stock that is convertible into 17.9% of k12's Common Stock. KUE’s ownership varies depend

s assets and the assets of KLC’s subsidiaries except permitted real estate transfers and other permitted transfers. 11.20. Stockholders Agreement of Knowledge Schools, Inc. KLC is a wholly owned subsidiary of KSI, and KS! pursues no other businesses independent of holding KLC’s stock/equity. KSI entered into a Stockhold