Document:

Exhibit 10.2

Exhibit 10.2

April 9, 2009

Ron Klausner

Re: Employment Terms

Dear Ron:

Your agreement dated May 7, 2007 is hereby amended and restated in its entirety to reflect your
continued employment with Voyager Learning Company (the “Company”). Capitalized terms used in this
letter and not otherwise defined herein are defined in Exhibit A.

	1.	 	Salary

During your employment with the Company, you will be paid a base salary (“Base Salary”) of
$20,656.73 bi-weekly ($537,075.00 if annualized), payable in accordance with the regular
payroll practices of the Company. Your “Regular Salary” includes your Base Salary plus
another $20,800.00 annualized, for a total Regular Salary of $557,875.00. You acknowledge
and understand that all calculations for annual bonus, merit pay, severance, company paid
disability, 401(k) match and any other benefit or compensation plan or program sponsored or
maintained by the Company or its affiliates will utilize your Base Salary and not your
Regular Salary.

	2.	 	2009 Bonus

	 	(a)	 	You will be able to participate in the Company’s 2009 Financial Bonus Plan, as
such plan may be amended from time to time. Your target bonus opportunity for 2009 is
70% of Base Salary. Your minimum bonus for this year is 0% and maximum bonus is 200%,
if performance targets are exceeded in accordance with the terms of the 2009 Financial
Bonus Plan. In no event will you be entitled to earn an annual bonus in excess of 200%
of target. You will separately be receiving a letter setting forth your performance
goals for 2009 under the 2009 Financial Bonus Plan. Should you remain employed with
the Company through December 31, 2009, payment under the terms of this bonus plan will
be made no later than March 14, 2010.

 

 

 

	 	(b)	 	In the event that the Company terminates your employment without Cause or you
terminate employment for Good Reason, you will be entitled to a pro-rata portion of
your annual bonus for the year in which your termination occurs, payable at the time
that annual bonuses are paid to other senior executives, but no later than March 14 of
the following year (determined by multiplying the amount you would have received based
upon actual performance had your employment continued through the end of such year by a
fraction, the numerator of which is the number of days during the year of termination
that you are employed by the Company and the denominator of which is 365). If a Change
of Control of the Company occurs in 2009 and you do not voluntarily terminate your
employment for at least six months after the Change of Control of the Company, you
will be paid 200% of your 2009 target bonus promptly following such six-month
anniversary of the Change of Control of the Company. The amount of your 2009
performance bonus, if any, will be reduced by the bonus described in the preceding
sentence.

	 	(c)	 	With respect to calendar years after 2009, if you remain employed by the
Company, you will be eligible to participate in the Company’s then current annual bonus
plan, in accordance with the terms of such plan.

	3.	 	Benefits

During your employment with the Company, you will be entitled to participate in the employee
retirement and welfare benefit plans and programs set forth in Exhibit C, in accordance with
the terms and conditions of such programs as in effect from time to time.

	4.	 	Severance and Change on Control Protection

	 	(a)	 	Subject to Section 6 below, you will be entitled to the following benefits
under this Section 4 upon the earlier of (i) the sixth month anniversary of a 409A
Change of Control of the Company provided you have not voluntarily terminated your
employment or been terminated by the Company for Cause before such sixth month
anniversary or (ii) the date the Company terminates your employment without Cause or
you resign for Good Reason at any time during a two year period beginning on a Change
of Control of the Company or an Acquisition of at Least 30% of the Company’s
Outstanding Voting Stock and Board Change: a single lump sum payment in an amount
equal to the sum of (i) 150% of your then current Base Salary and (ii) an amount equal
to any accrued but unused vacation days, with such payments commencing on the earliest
payroll date that does not result in adverse tax consequences to you under Section 409A
of the Code.

 

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	 	(b)	 	In addition, if the Company terminates your employment without Cause or you
resign for Good Reason at any time during a two year period beginning on a Change of
Control of the Company or an Acquisition of at Least 30% of the Company’s Outstanding
Voting Stock and Board Change, you are entitled, subject to your continued co-payment
of premiums, continued participation for eighteen months in all medical, dental and
vision plans which cover you (and eligible dependents) upon the same terms and
conditions (except for the requirements of
your continued employment) in effect for active employees of the Company. If you
obtain other employment that offers substantially similar or improved benefits, as
to any particular medical, dental or vision plan, such continuation of coverage by
the Company for such similar or improved benefit under such plan under this Section
4(b) will immediately cease. The continuation of health benefits under this
subparagraph shall reduce and count against your rights under the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended. To the extent that such
post-employment coverage cannot be provided under any such plan, the Company, at its
election, will either (i) arrange to make available to you coverage through an
insured arrangement that provides benefits substantially similar and on the same
terms and conditions to those provided under such plan, or (ii) pay such benefits as
described in (i) above directly. The obligations of the Company to provide any
alternative coverage described in the preceding sentence are expressly conditional
on you taking all reasonable actions and providing all reasonable information, as
the Company shall request, as is necessary for it to fulfill such obligations.

	5.	 	Regular Severance Benefits

	 	(a)	 	Subject to Section 6 below, you shall be entitled to regular severance benefits
under Section 5(c) below if: (1) the Company terminates your employment without Cause
or you resign for Good Reason at any time before a Change of Control of the Company or
an Acquisition of at Least 30% of the Company’s Outstanding Voting Stock and Board
Change and (2) you neither are entitled to nor received benefits under Section 4.
Under no circumstances shall you receive benefits under both Section 4 and Section 5 of
this Agreement.

	 	(b)	 	You will be considered to be entitled to enhanced severance benefits under
Section 4 above if your employment is involuntarily terminated by the Company without
Cause, or you resign for Good Reason prior to such date, and such termination of
employment or change in the terms of your employment occurs within the 60 day period
prior to a definitive purchase or acquisition agreement that results in a Change of
Control of the Company.

	 	(c)	 	The severance benefits payable under Section 5(a) shall be the same in all
respects as under Section 4(a) and 4(b) above, except that: (i) 100% shall be used in
lieu of 150% in Section 4(a), and (ii) the period of continued participation in
medical, dental and vision plans described in Section 4(b) shall be twelve months
instead of eighteen months.

 

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	6.	 	Conditions to Receiving Severance Benefits

Benefits payable under this Agreement shall be in lieu of any other severance benefits that
you may have otherwise been eligible to receive from the Company or its affiliates under the
Company Separation Benefits Plan or otherwise. If you terminate employment in a manner
entitling you to benefits under either Section 4 or 5 above and your death occurs before
full payment of such benefits, any amount remaining to be paid shall be
paid to your surviving spouse, or, if none, to your estate. You must sign a release
agreement in substantially the same form as attached as Exhibit B to this Agreement to
receive the benefits. The benefits under Section 4 or Section 5 of this Agreement will
commence as soon as reasonably practicable after the termination of the revocation period
provided in the release agreement. You shall not be required to seek other employment to
mitigate damages, and any income earned by you from other employment or self-employment
shall not be offset against any obligations of the Company to you under this Agreement.

	7.	 	Tax Payments

	 	(a)	 	Your rights to receive a tax gross-up payment for golden parachute excise taxes
under the Multi-Year Stock Option Grant dated February 4, 2004 survives whether or not
such Multi-Year Stock Option Grant is terminated and you are entitled to such
tax-gross-up rights, including those set forth in the Appendix to the Multi-Year Stock
Option Grant. For purposes of this Section, the following specialized terms will have
the following meanings:

	 	(1)	 	“Base Period Income” “Base Period Income” is an amount
equal to your “annualized includable compensation” for the “base period” as
defined in Sections 280G(d)(1) and (2) of the Code and the regulations
thereunder. Generally, your “annualized includable compensation” is the
average of your annual taxable income from the Company for the “base period,”
which is the five calendar years prior to the year in which a “change of
ownership or control,” as defined in Section 280G(b)(2) of the Code, occurs.
These concepts are complicated and technical and all of the rules set forth in
the applicable regulations apply for purposes of this Agreement.

	 	(2)	 	“280G Cap” “280G Cap” means an amount equal to 3 times
your “Base Period Income,” less $1,000.00. This is the maximum amount which
you may receive without becoming subject to the excise tax imposed by Section
4999 of the Code.

	 	(3)	 	“Total Payments” The “Total Payments” include any
“payments in the nature of compensation” (as defined in Section 280G of the
Code and the regulations thereunder), made under this Agreement or otherwise,
to or for your benefit, the receipt of which is contingent on a change of
control and to which Section 280G of the Code applies.

	 	(b)	 	The Company will, at its expense, retain a “Consultant” (which shall be a law
firm, a certified public accounting firm, and/or a firm of recognized executive
compensation consultants selected by the Company and mutually agreeable to the Company
and you) to provide an opinion concerning whether your Total Payments exceed the 280G
Cap. The Company will select the Consultant. The opinion required by this Section
shall set forth the amount of your Base Period
Income, the present value of the Total Payments and the amount and present value of
any excess parachute payments.

 

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	8.	 	Successors and Assigns

This Agreement shall be binding upon any successor or assign of the Company, including any
entity that (whether directly or indirectly, by purchase, merger, reorganization,
consolidation, acquisition of property or stock, liquidation or otherwise) is the survivor
of the Company or that acquires the Company and/or substantially all the assets of the
Company in accordance with the operation of law, and such successor entity shall be deemed
to be “the Company” for purposes of this Agreement (except for purposes of determining
whether there has been a Change of Control of the Company or an Acquisition of at Least 30%
of the Company’s Outstanding Voting Stock and Board Change). This Section will continue to
apply in the event of any subsequent merger or consolidation or transfer of assets.

	9.	 	Company Right to Recover Payments Under This Agreement

You hereby agree that, if it is ever determined by the Company that any action, or inaction
by you constituted grounds for termination for Cause, then the Company may recover all of
any award or payment made to you pursuant to this Agreement, and you agree to repay and
return any such award or payment to the Company. The Company may, in its sole discretion,
affect any such recovery by (i) obtaining repayment directly from you; (ii) setting off the
amount owed to it against any amount or award that would otherwise be payable by the Company
to you, or (iii) any combination of (i) and (ii) above.

	10.	 	At-Will Employment

This Agreement does not change the at-will nature of your employment relationship with the
Company.

	11.	 	Withholding

The Company may withhold from any amounts payable under this Agreement such federal, state,
local or foreign taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

 

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	12.	 	Section 409A

The payments pursuant to this Agreement are intended to be exempt from or, comply
with, the requirements of Section 409A and this Agreement is intended to be
interpreted and operated accordingly to the fullest extent possible; provided,
however, that notwithstanding anything to the contrary in this Agreement in no event
shall the Company be liable to you for or with respect to any taxes, penalties or
interest which may be imposed upon you pursuant to Section 409A. Without
limitation on the foregoing, the cash in lieu of SERP described in Exhibit C is
intended to be exempt from the requirements of Section 409A as a short-term
deferral payment. In accordance with the preceding sentences, the date on which a
“separation from service” pursuant to Section 409A (“Separation from Service”)
occurs shall be treated as the termination of employment date for purposes of
determining the timing of payments under this Agreement to the extent necessary to
have such payments under this Agreement be exempt from the requirements of Section
409A or comply with the requirements of Section 409A. To the extent that any
payments pursuant to this Agreement constitute “deferral of compensation” subject to
Section 409A (after taking into account to the maximum extent possible any
applicable exemptions) (a “409A Payment”) treated as payable upon Separation from
Service, then, if you are a “Specified Employee” pursuant to Section 409A on the
date of your Separation from Service, then to the extent required for you not to
incur additional taxes pursuant to Section 409A, no such 409A Payment shall be made
before the earlier of (i) 6 months after your Separation from Service; or (ii) the
date of your death. Should the preceding sentence result in payments to you at a
later time than otherwise would have been made under this letter, on the first day
any such payments may be made without incurring additional tax pursuant to Section
409A (“409A Payment Date”), the Company shall make such payments provided that any
amounts that would have been paid earlier but for the application of this Section 12
shall be paid in a lump sum on the 409A Payment Date together with, subject to the
following sentence, accrued interest at the earnings rate (but not below 0) of any
rabbi trust containing your severance amounts (“Rabbi Trust”). To the extent
administratively feasible, you shall be entitled to direct the investment of the
portion of the assets in the Rabbi Trust attributable to the amount you are entitled
to under this Agreement for which payment is delayed because of Section 409A and to
the extent you exercise this discretion, instead of being entitled to the amount
delayed because of Section 409A with accrued interest at the earnings rate of the
Rabbi Trust you shall be entitled to the amount delayed because of Section 409A
adjusted by earnings and losses attributable to your investment direction. For
purposes of Section 409A, each payment installment shall be treated as a separate
payment. To the extent required for payments under this Agreement to comply with or
be exempt from Code Section 409A (with the intention to comply with Treasury
Regulation §1.409A-3(d) with the treatment of the 38th day after termination of
employment as the designated payment date), payments shall be made no sooner than
the 8th day after termination of employment nor later than the 38th day after
termination of employment based on when the release required by Section 6 is
executed and becomes non-revocable and if such 30-day period spans two calendar
years, payment shall be made in the later calendar year. The parties agree to
cooperate to minimize the impact of Section 409A without materially changing the
economic value of this Agreement to either party.

	13.	 	Indemnification

The Company shall indemnify you to the same extent that its officers, directors and
employees are entitled to indemnification as of the date hereof pursuant to the Company’s
Articles of Incorporation and Bylaws for any acts or omissions by reason of being a
director, officer or employee of the Company.

 

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	14.	 	Cooperation

You agree to reasonably cooperate with the Company and its affiliates during your employment
and thereafter in any internal investigation, any administrative, regulatory or judicial
investigation or proceeding or any dispute with a third party as reasonably requested by the
Company (including, without limitation, your being available to the Company upon reasonable
notice and at reasonable times for interviews and factual investigations, appearing at the
Company’s request upon reasonable notice and at reasonable times to give testimony without
requiring service of a subpoena or other legal process, delivering to the Company requested
information and relevant documents which are or may come into your possession, all at times
and on schedules that are reasonably consistent with your other permitted activities and
commitments). The obligations under this Section shall survive expiration of your
employment with the Company. If your cooperation under this Section is requested after your
termination of employment, the Company shall (i) provide you reasonable advance notice after
giving due consideration to your then current employment obligations, and (ii) reimburse you
for all reasonable travel expenses and other reasonable out-of-pocket expenses upon
submission of receipts.

	15.	 	Entire Agreement: Modification

This Agreement contains the entire agreement between you and the Company concerning the
matters set forth herein and supersedes any other discussions, agreements, representations
or warranties of any kind with regard to these matters. You acknowledge that this Agreement
supercedes your offer letter agreements with the Company dated March 9, 2003, March 14,
2003, September 20, 2005 and May 7, 2007. Any modification of this Agreement will only be
effective if done in writing and signed by you and the Chief Executive Officer of the
Company. If for any reason any provision of this Agreement shall be held invalid, that
invalidity will not affect the remainder of this Agreement.

	16.	 	Non-Compete Agreement

By signing this Agreement, you acknowledge that (a) the Employee Confidentiality and
Restrictive Covenant Agreement dated April 2, 2003 between you and the Company (the
“Non-Compete Agreement”) remains a valid and binding agreement and (b) the Non-Compete
Agreement shall inure to the benefit of any successor or assign of the Company.

	17.	 	Survival of Terms

The provisions of Sections 6, 7, 8, 9, 13, 14, 16 and the other provisions of this Agreement
which by their terms contemplate survival of the termination of this Agreement, shall
survive expiration of this Agreement and/or your employment with the Company and be deemed
to be independent covenants.

 

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	18.	 	Acknowledgment

You acknowledge that you have had an opportunity to fully discuss and review the terms of
this Agreement with an attorney of your own choosing. You further acknowledge that
you have carefully read this Agreement, understand its contents and freely and voluntarily
assent to all of its terms and conditions, and sign your name of your own free act.

	19.	 	Governing Law

This Agreement is governed by the laws of Michigan (excluding conflicts of laws).

We hope that these adjustments to your compensation reinforce the degree to which you are valued by
the Company. Please review this Agreement carefully and, if it correctly states our agreement,
sign and return to me the enclosed copy.

	 	 	 
	Best regards,
	 	 
	 
	/s/ Richard Surratt
	 	 
	 

Richard Surratt 

President and Chief Executive Officer the Company

	 	 
	 
	 	 
	Read, accepted and agreed to this 9th day of April 2009
	 	 
	 
	 	 
	/s/ Ron Klausner
	 	 
	 

Ron Klausner

	 	 

 

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Exhibit A

DEFINITIONS

Acquisition of at Least 30% of the Company’s Outstanding Voting Stock and Board Change
An “Acquisition of at Least 30% of the Company’s Outstanding Voting Stock and Board Change” shall
occur if:

	(a)	 	any “person” or “group” (as such terms are used in Section 13(d) and 14(d) of the Securities
Exchange Act of 1934 (the “Exchange Act”)) is or becomes the “beneficial owner” (as defined in
Rule 13d-3 under the Exchange Act) directly or indirectly, of securities of the Company
representing 30% or more of the combined voting power of the Company’s then outstanding
securities after the date hereof (other than the Company, its subsidiaries or any employee
benefit plan of the Company or its subsidiaries; and, for purposes of the Agreement, no Change
of Control of the Company shall be deemed to have occurred as a result of the “beneficial
ownership,” or changes therein, of the Company’s securities by either of the foregoing) and,

	(b)	 	individuals who, as of April 6, 2007, constitute the Company’s Board of Directors (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Company’s
Board of Directors, provided that any person becoming a director subsequent to the date hereof
whose election, or nomination for election, by the stockholders of the Company was approved by
a vote of at least a majority of the directors then comprising the Incumbent Board (other than
an election or nomination of an individual whose initial assumption of office is in connection
with an actual or threatened election contest relating to the election of the members of the
Company’s Board, as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the
Exchange Act) shall be considered as though such person were a member of the Incumbent Board,

Asset Sale

“Asset Sale” means a sale, lease or transfer of all or substantially all of the Company’s assets to
an entity less than 50% of the outstanding voting securities of which are owned in aggregate by the
Company, its subsidiaries or any employee benefit plan of the Company or its subsidiaries.

 

A-1

 

Cause

“Cause” means termination of your employment with the Company or its affiliates by reason of (1) an
act of fraud, embezzlement or theft in connection with your duties or in the course of your
employment; (2) unreasonable neglect or refusal by you to perform your material duties (other than
as a result of illness, accident or other physical or mental incapacity), provided that (A) a
demand for performance of services has been delivered to you by the Company’s Chief Executive
Officer at least sixty days prior to such termination identifying the manner in which the Chief
Executive Officer believes that your have failed to perform and (B) you have thereafter failed to
remedy such failure to perform; (3) you engage in willful, reckless, or grossly negligent
misconduct which is or may be materially injurious to the Company or its affiliates; or (4) your
conviction of or plea of guilty or nolo contenders to a felony.

Change of Control of the Company

A “Change of Control of the Company” shall occur upon any of the following events:

	(a)	 	a consummation of any consolidation or merger of the Company pursuant to which shares of
common stock would be converted into or exchanged for cash, securities or other property,
other than a consolidation or merger of the Company in which the holders of common stock
immediately prior to the merger have, directly or indirectly, at least a 50% ownership
interest in the outstanding common stock of the surviving corporation immediately after the
merger (other than with entities in which the holders of the Company’s common stock, directly,
or indirectly, have at least a 50% ownership interest);
	 
	(b)	 	an Asset Sale; or

	(c)	 	as the result of, or in connection with, any cash tender offer, exchange offer, merger or
other business combination, sale of assets, proxy or consent solicitation (other than by the
Company’s Board of Directors), contested election or substantial stock accumulation (“Control
Transaction”), the members of the Company’s Board of Directors immediately prior to the first
public announcement relating to such Control Transaction shall thereafter cease to constitute
a majority of the Company’s Board of Directors.

A “409A Change of Control of the Company” is a Change of Control of the Company that both (1)
occurs in 2009 and (2) is a change in the ownership or effective control of the Company or in the
ownership of a substantial portion of the assets of the Company for purposes of Section 409A.

Code

“Code” means the Internal Revenue Code of 1986, as amended.

 

A-2

 

Disability

“Disability” means a mental or physical condition which, in the opinion of the Compensation
Committee of the Board of Directors of the Company (1) renders you unable or incompetent to carry
out the material job responsibilities which you held or the material duties to which you were
assigned at the time the disability was incurred, and (2) is expected to be permanent or to last
for an indefinite duration or a duration in excess of six months, or results in you receiving
benefits under any long term disability plan offered by the Company or its affiliates.

Good Reason

	(a)	 	“Good Reason” in all events means the occurrence of any of the following events, without your
written consent: (1) you are no longer a direct report to the Company’s Chief Executive
Officer or to the Company’s Board of Directors (it being understood that a promotion or an
enhancement of duties will not constitute Good Reason hereunder), (2) you are assigned any
duties inconsistent in any material respect with your position, authority, duties or
responsibilities, or any other action that results in a significant diminution in such
position, authority, duties or responsibilities, each as in effect as of the date hereof (or
such later date to the extent of any actions by the Company are consented to in writing by
you), unless the action is remedied by the Company within ten days after receipt of notice
thereof given by you, (3) your assignment for longer than six months to a location in excess
of fifty miles from your then current office, (4) a reduction of your Regular Salary or a
reduction of your bonus target below 70% of your Base Salary, or (5) material failure to pay
your Regular Salary, bonus, equity compensation or benefits under this Agreement, unless any
such action under this clause is remedied by the Company within ten business days after
receipt of notice thereof given by you. For purposes of clause (5), the substitution of any
benefit stated under Exhibit D to this Agreement with any other benefit of equivalent or
greater value during your employment with the Company prior to December 31, 2009 shall not
constitute a material failure to pay your benefits. You acknowledge that the Company has the
right to restructure and/or alter your benefits package as of January 1, 2010 and any such
restructuring of benefits or amendment or termination of some or all of the benefits set forth
on Exhibit C to this Agreement as of or following such date will not give you the right to
terminate for Good Reason.

 

A-3

 

	(b)	 	Notwithstanding anything to the contrary in (a)(1) or (a)(2) above, you shall not have “Good
Reason” to terminate your employment due solely to one or more of the following events:
(1) there is a diminution of the business of the Company or any of its affiliates, including,
without limitation, a sale or other transfer of property or other assets of the Company or any
of its affiliates, or a reduction in your business unit’s head count or budget, or (2) a
suspension of your position, job functions, authorities, duties and
responsibilities while on paid administrative leave due to a reasonable belief that you have
engaged in conduct described in Section 10 of the Agreement.

	(c)	 	You shall only be entitled to terminate employment for Good Reason by giving the Company
written notice of the termination, setting forth in reasonable detail the specific conduct of
the Company or its affiliates that constitutes Good Reason. An event shall not be deemed to
constitute Good Reason if you fail to deliver notice of termination for Good Reason within one
month of your actual knowledge of such event.

Section 409A

“Section 409A” means Section 409A of the Code.

 

A-4

 

Exhibit B

AGREEMENT AND GENERAL RELEASE

The Company, its affiliates, subsidiaries, divisions, successors and assigns in such capacity,
and the current, future and former employees, officers, directors, trustees and agents thereof
(collectively referred to throughout this Agreement as “Employer”), and Ron Klausner (“Executive”),
the Executive’s heirs, executors, administrators, successors and assigns (collectively referred to
throughout this Agreement as “Employee”) agree:

1. Last Day of Employment. Executive’s last day of employment with Employer is
[DATE]. In addition, effective as of [DATE], Executive resigns from the Executive’s position as
[TITLE] of Employer and will not be eligible for any benefits or compensation after [DATE], other
than as specifically provided in the employment letter between Employer and Executive dated April
9, 2009 (the “Employment Letter”) and Executive’s right to indemnification and directors and
officers liability insurance. Executive further acknowledges and agrees that, after [DATE], the
Executive will not represent the Executive as being a director, employee, officer, trustee, agent
or representative of Employer for any purpose. In addition, effective as of [DATE], Executive
resigns from all offices, directorships, trusteeships, committee memberships and fiduciary
capacities held with, or on behalf of, Employer or any benefit plans of Employer. These
resignations will become irrevocable as set forth in Section 3 below.

2. Consideration. The parties acknowledge that this Agreement and General Release is
being executed in accordance with the Employment Letter.

3. Revocation. Executive may revoke this Agreement and General Release for a period
of seven (7) calendar days following the day Executive executes this Agreement and General Release.
Any revocation within this period must be submitted, in writing, to Employer and state, “I hereby
revoke my acceptance of our Agreement and General Release.” The revocation must be personally
delivered to the General Counsel for the Company, or his/her designee, or mailed to Employer,
[Address], Attn: Senior Vice President and General Counsel, and postmarked within seven (7)
calendar days of execution of this Agreement and General Release. This Agreement and General
Release shall not become effective or enforceable until the revocation period has expired. If the
last day of the revocation period is a Saturday, Sunday, or legal holiday in Michigan then the
revocation period shall not expire until the next following day which is not a Saturday, Sunday, or
legal holiday.

 

B-1

 

4. General Release of Claim. Employee knowingly and voluntarily releases and forever
discharges Employer from any and all claims, causes of action, demands, fees and liabilities of any
kind whatsoever, whether known and unknown, against Employer, Employee has, has ever had or may
have as of the date of execution of this Agreement and General Release, including, but not limited
to, any alleged violation of:

	 	•	 	The National Labor Relations Act, as amended;

	 	•	 	Title VII of the Civil Rights Act of 1964, as amended;

	 	•	 	The Civil Rights Act of 1991;

	 	•	 	Sections 1981 through 1988 of Title 42 of the United States Code, as
amended;

	 	•	 	The Employee Retirement Income Security Act of 1974, as amended;

	 	•	 	The Immigration Reform and Control Act, as amended;

	 	•	 	The Americans with Disabilities Act of 1990, as amended;

	 	•	 	The Age Discrimination in Employment Act of 1967, as amended;

	 	•	 	The Older Workers Benefit Protection Act of 1990;

	 	•	 	The Worker Adjustment and Retraining Notification Act, as amended;

	 	•	 	The Occupational Safety and Health Act, as amended;

	 	•	 	The Family and Medical Leave Act of 1993;

	 	•	 	Any wage payment and collection, equal pay and other similar laws, acts and
statutes of the State of [Michigan];

	 	•	 	Any other federal, state or local civil or human rights law or any other
local, state or federal law, regulation or ordinance;

	 	•	 	Any public policy, contract, tort, or common law; or

	 	•	 	Any allegation for costs, fees, or other expenses including attorneys’ fees
incurred in these matters.

Notwithstanding anything herein to the contrary, the sole matters to which the Agreement and
General Release do not apply are: (i) Employee’s rights of indemnification and directors and
officers liability insurance coverage to which Executive was entitled immediately prior to [DATE]
with regard to Executive’s service as an officer and director of Employer; (ii) Employee’s rights
under any tax-qualified pension or claims for accrued vested benefits under any other employee
benefit plan, policy or arrangement maintained by Employer or under COBRA; (iii) Employee’s rights
under the provisions of the Employment Letter which are intended to survive termination of
employment; or (iv) Employee’s rights as a stockholder.

 

B-2

 

5. No Claims Permitted. Employee waives Executive’s right to file any charge or
complaint against Employer arising out of Executive’s employment with or separation from Employer
before any federal, state or local court or any state or local administrative agency, except where
such waivers are prohibited by law. This Agreement, however, does not prevent Employee from filing
a charge with the Equal Employment Opportunity Commission, any other federal government agency,
and/or any government agency concerning claims of discrimination, although Employee waives the
Executive’s right to recover any damages or other relief in any claim or suit brought by or through
the Equal Employment Opportunity Commission or any other state or local agency on behalf of
Employee under the Age Discrimination in Employment
Act, Title VII of the Civil Rights Act of 1964 as amended, the Americans with Disabilities
Act, or any other federal or state discrimination law, except where such waivers are prohibited by
law.

6. Affirmations. Employee affirms Executive has not filed, has not caused to be
filed, and is not presently a party to, any claim, complaint, or action against Employer in any
forum or form. Employee further affirms that the Executive has been paid and/or has received all
compensation, wages, bonuses, commissions, and/or benefits to which Executive may be entitled and
no other compensation, wages, bonuses, commissions and/or benefits are due to Executive, except as
provided in the Employment Letter. Employee also affirms Executive has no known workplace
injuries.

7. Cooperation; Return of Property. Employee agrees to reasonably cooperate with
Employer and its counsel in connection with any investigation, administrative proceeding or
litigation relating to any matter that occurred during Executive’s employment in which Executive
was involved or of which Executive has knowledge. Employer will reimburse the Employee for any
reasonable out-of-pocket travel, delivery or similar expenses incurred in providing such service to
Employer. Employee represents that Executive has returned to Employer all property belonging to
Employer, including but not limited to any leased vehicle, laptop, cell phone, keys, access cards,
phone cards and credit cards, provided that Executive may retain, and Employer shall cooperate in
transferring, Executive’s cell phone number and any home communication and security equipment as
well as Executive’s rolodex and other address books.

8. Governing Law and Interpretation. This Agreement and General Release shall be
governed and conformed in accordance with the laws of the State of Michigan without regard to its
conflict of laws provisions. In the event Employee or Employer breaches any provision of this
Agreement and General Release, Employee and Employer affirm either may institute an action to
specifically enforce any term or terms of this Agreement and General Release. Should any provision
of this Agreement and General Release be declared illegal or unenforceable by any court of
competent jurisdiction and should the provision be incapable of being modified to be enforceable,
such provision shall immediately become null and void, leaving the remainder of this Agreement and
General Release in full force and effect. Nothing herein, however, shall operate to void or
nullify any general release language contained in the Agreement and General Release.

9. Nonadmission of Wrongdoing. Employee agrees neither this Agreement and General
Release nor the furnishing of the consideration for this Release shall be deemed or construed at
any time for any purpose as an admission by Employer of any liability or unlawful conduct of any
kind.

10. Amendment. This Agreement and General Release may not be modified, altered or
changed except upon express written consent of both parties wherein specific reference is made to
this Agreement and General Release.

 

B-3

 

11. Entire Agreement. This Agreement and General Release sets forth the entire
agreement between the parties hereto and fully supersedes any prior agreements or understandings
between the parties; provided, however, that notwithstanding anything in this
Agreement and General Release, the provisions in the Employment Letter which are intended to
survive termination of the Employment Letter shall survive and continue in full force and effect.
Employee acknowledges Executive has not relied on any representations, promises, or agreements of
any kind not contained herein or in the Employment Letter made to Executive in connection with
Executive’s decision to accept this Agreement and General Release.

EMPLOYEE HAS BEEN ADVISED THAT EXECUTIVE HAS UP TO TWENTY-ONE (21) CALENDAR DAYS TO REVIEW
THIS AGREEMENT AND GENERAL RELEASE AND HAS BEEN ADVISED IN WRITING TO CONSULT WITH AN ATTORNEY
PRIOR TO EXECUTION OF THIS AGREEMENT AND GENERAL RELEASE.

EMPLOYEE AGREES ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS AGREEMENT AND GENERAL
RELEASE DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL TWENTY-ONE (21) CALENDAR DAY
CONSIDERATION PERIOD.

HAVING ELECTED TO EXECUTE THIS AGREEMENT AND GENERAL RELEASE, TO FULFILL THE PROMISES SET
FORTH HEREIN, AND TO RECEIVE THE SUMS AND BENEFITS SET FORTH IN THE RETENTION AGREEMENT, EMPLOYEE
FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT AND GENERAL RELEASE
INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS EXECUTIVE HAS OR MIGHT HAVE AGAINST EMPLOYER.

IN WITNESS WHEREOF, the parties hereto knowingly and voluntarily executed this Agreement and
General Release as of the date set forth below:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	VOYAGER LEARNING COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	RON KLAUSNER	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 	 	 

	 	 
	Date:

	 	 	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 

	 	 

 

B-4

 

Exhibit C

BENEFITS

You shall be entitled to the following benefits while employed by the Company under this Agreement
through December 31, 2009. Except with respect to the SERP-replacement benefit described below, if
you remain employed after this date, the Company will inform you of the benefits you will be
entitled to as of January 1, 2010.

	•	 	In lieu of the ProQuest Supplemental Executive Retirement Plan (SERP), you are eligible for
a lump sum cash payment equal to 15% of the sum of your Base Salary and your management bonus
under the Financial Bonus Plan for each calendar year you remain employed. You must be
employed as of December 31 of the relevant year to receive payment for that year.
	 
	•	 	You receive at Company expense Basic Term Life Insurance equal to two times annual Base
Salary, and under the terms of the policy, you may elect to purchase additional term life
insurance up to four times Base Salary up to a maximum of $1,300,000 subject to the terms of
the policy.
	 
	•	 	You have Short-Term Disability protection at Company expense.
	 
	•	 	You are covered at Company expense for Long-Term Disability benefits which will begin after
you have been totally disabled for a period of six continuous months.
	 
	•	 	You participate in the Profit Sharing Retirement (401k) Plan.
	 
	•	 	You are eligible for four weeks of annual vacation, accrued at 13.33 hours per month, 4
floating holidays (personal days) and 8 company holidays.
	 
	•	 	You participate in benefit programs including group insurance plans for medical, dental,
vision, as well as access to a Health Savings Account or Flexible Spending Account.
	 
	•	 	If asked by the Company and you agree to relocate, you are eligible for relocation benefits
as detailed in the Senior Management Homeowner Relocation Plan summary. This benefit must be
reimbursed to the Company if you leave within 12 months of accepting the relocation benefit.
	 
	•	 	You are eligible to participate in Dependent Life Insurance, Voluntary Accidental Death &
Dismemberment Insurance and the Group Legal Plan.

 

C-1Exhibit 10.3

Exhibit 10.3

May 8, 2009

Todd W. Buchardt

Re: Amendment to Executive Letter Agreement

Dear Todd:

This letter sets forth the terms and conditions regarding your continued employment with
Voyager Learning Company, formerly known as ProQuest Company (“Voyager”) and the compensation that
the CEO has approved for you. For purposes of this letter, the “Company” refers to Voyager and its
subsidiaries and affiliates. Unless otherwise specified, capitalized terms used in this letter
have the meaning assigned to such terms in your letter agreement with Voyager dated July 13, 2006
(the “Executive Letter”).

1. Transition Period. You commit to remaining employed with Voyager from the date of this
letter until the earliest of: (i) the effective date of your termination pursuant to your notice of
resignation to Voyager; or (ii) the date that Voyager terminates your employment, (the “Transition
Period”). You will continue to serve as Senior Vice President and General Counsel during the
Transition Period.

2. Compensation During the Transition Period. You will be eligible to earn the salary,
compensation and benefits as set forth in the revised Exhibit D attached to this letter during the
Transition Period.

3. Eligibility to Receive Regular Severance under the Executive Letter after the Transition
Period. Upon providing your notice of resignation to the Company, you will be treated as
having terminated your employment for “Good Reason” for purposes of Section 6(d) of the Executive
Letter. The parties agree that it has been more than two years since a “Change of Control of the
Company or an Acquisition of at Least 30% of the Company’s Outstanding Voting Stock and Board
Change” as such terms are defined in the Executive Letter and you no longer have rights to enhanced
severance benefits under Section 5 of the Executive Letter but you remain eligible for regular
severance benefits under Section 6(d) of the Executive Letter. However, the parties agree that the
period of continued participation in medical, dental and vision plans described in Section 5(b)
shall continue to be eighteen months instead of the twelve months provided by Section 6(c) of the
Executive Letter. In addition, the parties agree that the Company will provide such continuation
of medical, dental and vision coverage in such manner that the coverage and benefits are not
taxable to you or the Company shall pay you an additional amount to cover the payment of all
federal, state, local and other taxes with respect to such coverage and benefits as

 

 

 

well as the tax reimbursement provided by this sentence such that the coverage and benefits as well
as the tax reimbursement does not result in any additional tax cost to you. For further
clarification, the following sentence is added at the end of paragraph (a) of the definition of
“Good Reason” in the Executive Letter:

“Good Reason”, solely for the purpose of Section 6(d), shall also include you resign from
Voyager for any reason.

Please note that Voyager has contributed to an existing rabbi trust with Wachovia with respect to
severance benefits and the additional transitional compensation set forth in Section 5 of this
letter for you and that you may be entitled to payment directly from Wachovia or a successor
trustee and receipt from Wachovia or a successor trustee will satisfy your right to receive
severance benefits under the Executive Letter or benefits under this letter to the same extent as
if paid by the Company.

4. Eligibility to Receive Additional Compensation.

(a) Prior to a Change in Control. In addition to the Regular Severance Benefits as
described in the Executive Letter as modified by section 3 of this letter and the cash in lieu of
SERP described in Exhibit D, you will be entitled (subject to signing a release substantially in
the form attached to the Executive Letter) to the following bonus compensation if a Change of
Control of the Company does not occur in 2009 prior to your termination of employment with the
Company and you remain employed with and fulfill your duties to the Company until the earlier of:
(i) the end of the Transition Period (other than if the Transition Period ends by a termination of
your employment by the Company for Cause as such term is defined in the Executive Letter) or (ii)
December 31, 2009:

	 	(1)	 	a single lump sum equal to the amount of your bonus for 2009 as
determined by the Voyager bonus plan for similarly situated executives
(prorated as set forth in subsection (a)(2) only if you resign your employment
in 2009 without Good Reason);

	 	(2)	 	where the amounts in subsection (a)(1) above shall be a pro
rata amount because you resigned your employment in 2009 without Good Reason,
such prorated amount shall be calculated as a percentage as follows:

	 	i.	 	the numerator shall be the number
of days you are employed during 2009; and

	 	ii.	 	the denominator shall be the
number of days in 2009.

The amount described in this Section 4(a), if earned, shall be paid at the same time other Voyager
bonuses are paid to the executive leadership team.

(b) On or After a Change in Control. In addition to the Regular Severance Benefits as
described in the Executive Letter as modified by section 3 of this letter and the cash in lieu of
SERP described in Exhibit D, you will be entitled (subject to signing a release substantially in

 

2

 

the form attached to the Executive Letter) to the following bonus compensation if a Change of
Control of the Company occurs in 2009 on or prior to your termination of employment with the
Company and you remain employed with and fulfill your duties to the Company until the earlier of:
(i) the end of the Transition Period (other than if the Transition Period ends by a termination of
your employment by the Company for Cause as such term is defined in the Executive Letter) or (ii)
December 31, 2009:

	 	(1)	 	a single lump sum equal to the amount of bonus for on target
performance for 2009 [50% of your annualized Base Salary] (prorated as set
forth in subsection (b)(2) only if you resign your employment in 2009 without
Good Reason);

	 	(2)	 	where the amounts in subsection (b)(1) above shall be a pro
rata amount because you resigned your employment in 2009 without Good Reason,
such prorated amount shall be calculated as a percentage as follows:

	 	i.	 	the numerator shall be the number
of days you are employed during 2009; and

	 	ii.	 	the denominator shall be the
number of days in 2009.

The amount described in this Section 4(b) shall be paid at the earlier of: (i) December 31, 2009 or
(ii) a termination of your employment by either you or the Company other than if the termination of
your employment is by the Company for Cause as such term is defined in the Executive Letter.

5. Eligibility to Receive Additional Transitional Compensation. As additional transitional
compensation, you shall be entitled to a single lump sum of 50% of your annualized Base Salary at
the earlier of: (a) December 31, 2009 or (b) a termination of your employment by either you or the
Company other than if the termination of your employment is by the Company for Cause as such term
is defined in the Executive Letter.

6. Golden Parachute Tax Gross-Up Payment. It is not anticipated that your payments from
the Company in connection with the Change of Control of the Company will trigger “golden parachute”
excise taxes. You will receive a statement summarizing the Company’s basis for this position as
soon as reasonably practicable after your termination of employment. Nonetheless, in the event this
analysis should be contested by the IRS, your right to receive a tax gross up defined in Section 3
of the Executive Letter remains in effect

7. Section 409A. The payments pursuant to this letter and the Executive Letter are
intended to be exempt from or, comply with, the requirements of section 409A of the Internal
Revenue Code of 1986, as amended (“Section 409A”) and this letter and the Executive Letter are
intended to be interpreted and operated accordingly to the fullest extent possible; provided,
however, that notwithstanding anything to the contrary in this letter or the Executive Letter in no
event shall the Company be liable to you for or with respect to any taxes, penalties or interest
which may be imposed upon you pursuant to Section 409A. Without limitation on the foregoing, the
cash in lieu of SERP described in Exhibit D and the additional transitional compensation described
in

 

3

 

Sections 4 and 5 of this letter are intended to be exempt from the requirements of Section 409A as
short-term deferral payments. In accordance with the preceding sentences, the date on which a
“separation from service” pursuant to Section 409A (“Separation from Service”) occurs shall be
treated as the termination of employment date for purposes of determining the timing of payments
under this letter and the Executive Letter to the extent necessary to have such payments under this
letter and the Executive Letter be exempt from the requirements of Section 409A or comply with the
requirements of Section 409A. If you are a “Specified Employee” pursuant to Section 409A on the
date of your Separation from Service, to the extent that any payments pursuant to this letter or
the Executive Letter constitute “deferral of compensation” subject to Section 409A (after taking
into account to the maximum extent possible any applicable exemptions) (a “409A Payment”) treated
as payable upon Separation from Service, then to the extent required for you not to incur
additional taxes pursuant to Section 409A, no such 409A Payment shall be made before the earlier of
(i) 6 months after your Separation from Service; or (ii) the date of your death. Should the
preceding sentence result in payments to you at a later time than otherwise would have been made
under this letter, on the first day any such payments may be made without incurring additional tax
pursuant to Section 409A (“409A Payment Date”), Voyager (or Wachovia or a successor trustee of the
rabbi trust to which the Company has contributed with respect to your severance benefits (“Rabbi
Trust”)) shall make such payments provided that any amounts that would have been paid earlier but
for the application of this Section 7 shall be paid in a lump sum on the 409A Payment Date together
with, subject to the following sentence, accrued interest at the earnings rate (but not below 0%)
of the Rabbi Trust containing your severance amounts. To the extent administratively feasible, you
shall be entitled to direct the investment of the portion of the assets in the Rabbi Trust
attributable to the amount you are entitled to under this letter and the Executive Letter for which
payment is delayed because of Section 409A and to the extent you exercise this discretion, instead
of being entitled to the amount delayed because of Section 409A with accrued interest at the
earnings rate of the Rabbi Trust you shall be entitled to the amount delayed because of Section
409A adjusted by earnings and losses attributable to your investment direction. For purposes of
Section 409A, each payment installment shall be treated as a separate payment. To the extent
required for payments under this letter and the Executive Letter to comply with or be exempt from
Section 409A (with the intention to comply with Treasury Regulation §1.409A-3(d) with the treatment
of the 38th day after termination of employment as the designated payment date), payments shall be
made no sooner than the 8th day after termination of employment nor later than the 38th day after
termination of employment based on when the release required by this letter and the Executive
Letter is executed and becomes non-revocable and if such 30-day period spans two calendar years,
payment shall be made in the later calendar year. The parties agree to cooperate to minimize the
impact of Section 409A without materially changing the economic value of this letter and the
Executive Letter to either party.

8. Effect on Other Agreements. This letter does not reduce or restrict your obligations or
rights under any other agreement between you and the Company or any of its subsidiaries or
affiliates, including without limitation the Executive Letter and the Restricted Stock Termination
Agreement and the Employee Confidentiality and Restrictive Covenant Agreement dated March 22, 2002
and signed by you and James P. Roemer, except to the extent specifically provided in this letter.

 

4

 

9. Withholding. All amounts payable to you by the Company under this letter or otherwise
shall be reduced by applicable taxes and all other deductions as may be required by law or which
have been previously authorized.

Please review this letter carefully. If it correctly states our agreement, please sign and return
the enclosed copy to me.

	 	 	 	 	 
	Best regards,

 	 	 
	/s/ Richard Surratt
 	 	 
	Richard Surratt 	 	 
	President and Chief Executive Officer
Voyager Learning Company 	 	 
	 

Accepted and agreed to this 8th
 _____ 

day of May 2009.

	 	 	 	 	 
	 	 	 
	/s/ Todd W. Buchardt
 	 	 
	Todd W. Buchardt 	 	 
	 	 	 

 

5

 

	 	 	 	 	 

Exhibit D

Revised March    , 2009

SALARY, BONUS AND BENEFITS

Salary

	•	 	Base Salary: You are paid a “Base Salary” of $11,410 bi-weekly
($296,656 if annualized), and are eligible for consideration for a
merit increase in May 2009.

	•	 	Regular Salary: Your “Regular Salary” includes your Base Salary
plus another $20,800 annualized, for a total Regular Salary of
$317,506 annualized.

	•	 	Calculations for Bonus, merit pay, payment in lieu of SERP,
severance, company paid disability, 401(k) match will utilize your
Base Salary and not your Regular Salary.

Bonus

	•	 	As a key executive you participate in the Financial Bonus Plan at
50% of your Base Salary for on target performance. Under this
Bonus you may earn up to 200% of target for performance above
goal. This bonus payout is capped at 200% of target.

Benefits

You shall be entitled to the following benefits while employed by Voyager Learning Company under
this Agreement.

	•	 	In lieu of participation in the ProQuest Supplemental Executive Retirement Plan (SERP), the
Company makes a cash payment to you, less withholding taxes, in an amount equal to 15% of the
sum of your Base Salary and your management bonus under the Financial Bonus Plan for the year.
Such cash payment in lieu of SERP for any calendar year shall be paid no later than March
15th of the following calendar year.

If your employment shall terminate for any reason other than by the Company with Cause prior to
the end of the calendar year, for purposes of calculating the cash payment in lieu of SERP with
respect to Base Salary, Base Salary shall be the Base Salary earned for the period you were
employed during the year. The cash payment in lieu of SERP attributed to such Base Salary for
the year of termination of employment shall be paid to you thirty (30) days following your
termination date (subject to signing a release substantially in the form attached to the
Executive Letter). The cash payment in lieu of SERP with respect to management bonus under the
Financial Bonus Plan shall be paid at the same time as the management bonus, if any, but not
later than March 15th following the year to which the management bonus related.

 

6

 

	•	 	You receive at Company expense Basic term life equal to two times
annual Base Salary, and under the terms of the policy, you may
elect to purchase additional term life insurance up to the amount
offered for similarly situated senior executives subject to the
terms of the Policy.

	•	 	You have Short Term Disability protection at Company expense.

	•	 	You are covered at Company expense for Long-term disability
benefits which will begin after you have been totally disabled for
a period of six continuous months. You are also eligible to
participate under the Supplemental Income Protection Plan—
Supplemental Long Term Disability Plan at the group rate.

	•	 	You participate in the Profit Sharing Retirement Plan 401(k) plan,

	•	 	You are be eligible for four weeks of annual vacation, accrued at
13.33 hours per month, 4 floating holidays (personal days), and 8
company holidays.

	•	 	You participate in benefits programs including group insurance
plans for medical, dental, vision, as well as access to a Health
Savings Account or Flexible Spending Account.

	•	 	If asked by the Company and you agree to relocate, you are
eligible for relocation benefits as detailed in the Senior
Management Homeowner Relocation Plan summary. This benefit must
be reimbursed to the Company if you leave, at your election,
within the first 12 months of employment.

	•	 	You are eligible to participate in Dependent Life Insurance;
Voluntary Accidental Death & Dismemberment; the Group Legal Plan.

 

7

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