Document:

exv10w29

 

 

Exhibit 10.29

July 13, 2006 
 Todd W. Buchardt 
 Ann Arbor,
Michigan 48108 
  

	Re:	Employment Terms  

 Dear Todd: 
 This Agreement is being provided to you because you are a key employee who performs highly specialized and unique duties that are critical to ProQuest Company.
Capitalized terms set forth in this letter are defined in Exhibit A. 
  

	1.	Term 

 The term (the “Term”) of this
Agreement shall commence on the date of this letter and end on the Termination Date; provided, however, should a Change of Control of the Company or an Acquisition of at Least 30% of the Company’s Outstanding Voting Stock and Board Change occur
at any time prior to the Termination Date, all provisions of this Agreement shall apply and continue in full force and effect until all parties have discharged their duties hereunder. Set forth as Exhibit D below is a list of the Base Salary,
Regular Salary, bonus and benefits that you shall be eligible to receive while you are employed by ProQuest Company during the Term. No provision of this Agreement shall be deemed to restrict any rights of ProQuest Company to sell, transfer or
otherwise dispose of any line of business or any part thereof on such terms and conditions as ProQuest Company, in its sole discretion, deems appropriate. 
  

	2.	Additional Restructuring Duties 

 In addition to
fulfilling your current job responsibilities and those set forth in Section 15 below, you agree to cooperate fully with ProQuest Company and its investment bankers, attorneys, accountants and advisors in connection with its restructuring
efforts, and with ProQuest Company and its lenders as reasonably required under the Loan Agreement. You agree to participate in making management presentations to prospective buyers, play 

  

 777 Eisenhower Parkway, P.O. Box 1346, Ann Arbor, Ml 48106-1346 USA tel 734.761.4700 web
www.proquestcompany.com 

 

 

an active and positive role in fairly representing ProQuest Company’s interests, be an advocate for ProQuest Company’s positions and work with
other employees or advisors of ProQuest Company and its affiliates to secure their continued loyalty to a prospective buyer. If you are offered an employment opportunity, an equity interest or any other consideration from a prospective buyer during
the Term hereof, by signing this Agreement you agree to keep ProQuest Company advised of your negotiations with the prospective buyer and to accept any such offer prior to a sale only with ProQuest Company’s advance written permission.

  

	3.	Restricted Stock 

 ProQuest Company will grant you a
restricted stock award of 60,000 shares in substantially the form attached to this letter as Exhibit B on or about the earlier of December 29, 2006 or an event that entitles you to accelerated vesting of your award as described in this Section.
You shall vest in 50% of the shares subject to this restricted stock award on March 31, 2007 and the remaining 50% of such shares on March 31, 2008, provided you are then employed by ProQuest Company. Vesting shall fully accelerate on the
first to occur of the following events: 
  

	 	(a)	you remain employed by ProQuest Company on a Change of Control of the Company (other than an Asset Sale); 

  

	 	(b)	you remain employed on December 31, 2007 following an Asset Sale; 

  

	 	(c)	ProQuest Company terminates your employment without Cause; 

  

	 	(d)	you terminate employment with ProQuest Company for Good Reason; 

  

	 	(e)	you become entitled to receive enhanced severance benefits under Section 5 of this Agreement; or 

  

	 	(f)	you die or suffer a Disability while employed by ProQuest Company or its affiliates. 

 You shall retain the LTIP Award and your rights to receive a tax gross-up payment for golden parachute excise taxes shall survive termination of the LTIP Award; provided, however, that ProQuest Company shall not be
obligated to make any such tax gross-up payment to the extent that Section 8 below limits your payments under this Agreement or otherwise. 
 In addition to the general prohibition on stock sales when in possession of material inside information, ProQuest Company common stock may not be sold or otherwise transferred within ninety days of your termination of employment without the
express written consent of ProQuest Company’s general counsel. 
  

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	4.	2006 Bonus 

 
 

	 	(a)	Your target bonus opportunity for 2006 is 100% of Base Salary. You will be receiving separately a letter setting forth your performance goals for 2006 under the 2006 Financial Bonus
Plan. Should you remain employed with ProQuest Company through December 31, 2006, payment under the terms of this bonus plan will be made no later than March 14, 2007. 

  

	 	(b)	In the event that ProQuest Company terminates your employment without Cause or you terminate employment for Good Reason during the Term and prior to a Change of Control of the
Company, you shall 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, 2007 (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 are employed
by ProQuest Company and the denominator of which is 365). 

  

	 	(c)	In the event that there is a Change of Control of the Company before December 31, 2006, other than an Asset Sale, then you shall be entitled to a bonus for 2006 not less than a
pro-rata portion of the amount payable under the 2006 Financial Bonus Plan determined by multiplying the amount you would have received by a fraction the numerator of which is the number of days elapsed in 2006 prior to the effective date of the
Change of Control and the denominator of which is 365 paid on the effective date of such Change of Control of the Company. 

  

	5.	Enhanced Severance Protection 

 Subject to
Section 7 below, you shall be entitled to the following enhanced severance benefits under this Section 5 if ProQuest 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)	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. 

  

	 	(b)	 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 

  

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ProQuest 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 ProQuest Company for such similar or improved benefit under such plan under this Section 5(b) shall 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, ProQuest 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 ProQuest 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 ProQuest Company shall
request, as is necessary for it to fulfill such obligations. 

 
Effective as of a Change of Control of the Company,
ProQuest Company shall establish a rabbi trust with a third party financial institution for the purpose of funding enhanced severance benefits that may be payable under this Agreement, provided that doing so would not violate the Loan Agreement.

  

	6.	Regular Severance Benefits 

  

	 	(a)	Subject to Section 7 below, you shall be entitled to regular severance benefits under Section 6(c) below if: (1) ProQuest 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 are not entitled to enhanced severance
benefits under Section 5. Under no circumstances shall you receive severance benefits under both Section 5 and Section 6 of this Agreement. 

  

	 	(b)	You will be considered to be entitled to enhanced severance benefits under Section 5 above if your employment is involuntarily terminated by ProQuest 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 agreement that results in a Change of Control of the Company.

  

	 	(c)	The severance benefits payable under Section 6(a) shall be the same in all respects as under Section 5(a) and 5(b) above, except that: (i) 100% shall be used in lieu
of 150% in Section 5(a), and (ii) the period of continued participation in medical, dental and vision plans described in Section 5(b) shall be twelve months instead of eighteen months. 

  

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	 	(d)	Your rights to regular severance benefits as set forth in Section 6(a) shall continue to apply after the Termination Date and for the remainder of your employment with ProQuest
Company. 

 
 

	7.	Conditions to Receiving Severance Benefits 

 Any
severance benefits payable under this Agreement shall be in lieu of any other severance benefits that you may have otherwise been eligible to receive from ProQuest Company or its affiliates under the ProQuest Company Separation Benefits Plan or
otherwise. If you terminate employment in a manner entitling you to severance benefits under either Section 5 or 6 above and your death occurs before full payment of such severance 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 C to this Agreement to receive the severance benefits. The severance benefits under 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 ProQuest Company to you under this Agreement. 
  

	8.	Cap on Payments to Avoid Excise Taxes 

  

	 	(a)	By signing this Agreement, you agree that, subject to the exception provided in Section 8(d) below, the present value of your “Total Payments” will not exceed an
amount equal to the “280G Cap.” 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)(l) and (2) of the Code and the regulations thereunder. Generally, your “annualized includable compensation” is the average of your annual taxable income from ProQuest 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 

  

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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)	ProQuest 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) to provide an opinion concerning whether your Total Payments exceed the limit discussed above. ProQuest 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. If the opinion provides that there would be an excess parachute payment subject to excise tax under Section 4999 of the Code,
your payments under this Agreement will be reduced to the 280G Cap in such manner as determined by ProQuest Company after consultation with you. If ProQuest Company believes that your Total Payments will exceed the 280G Cap, it will nonetheless make
payments to you, at the times stated above, in the maximum amount that it believes may be paid without exceeding the 280G Cap. The balance, if any, will then be paid after the opinion called for above has been received. 

  

	 	(c)	It is possible that you might receive a payment or distribution that should not have been made due to the 280G Cap (“Overpayment”) notwithstanding the best efforts of
ProQuest Company. ProQuest Company shall promptly notify you in writing if it determines you have unintentionally received an Overpayment together with a copy of the detailed calculation supporting such determination. You shall be responsible to
repay any Overpayment together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code upon receiving notice of an Overpayment. 

  

	 	(d)	The limitation on making Total Payments in excess of the 280G Cap under this Section 8 only applies during such period of time as doing so would violate the Loan Agreement. You
shall be entitled to receive the Total Payments in excess of the 280G Cap and the tax gross-up payment under the LTIP after ProQuest Company repays the principal and interest with respect to the Loan Agreement. Any amounts in excess of the 280G Cap
and the tax gross-up payment shall be made by the Company within 10 business days of repayment of the principal and interest under the Loan Agreement. By signing this Agreement, you acknowledge that ProQuest Company cannot assure when and if the
principal and interest under the Loan Agreement will be repaid. 

  

	9.	Successors and Assigns 

 This Agreement shall be
binding upon any successor or assign of ProQuest Company, including any entity that (whether directly or indirectly, by purchase, merger, reorganization, consolidation, acquisition of property or stock, liquidation or otherwise) 

  

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is the survivor of ProQuest Company or that acquires ProQuest Company and/or substantially all the assets of ProQuest Company in accordance with the
operation of law, and such successor entity shall be deemed to be “ProQuest 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. 
  

	10.	Company Right to Recover Payments Under This Agreement 

 You hereby agree that, if it is ever determined by ProQuest Company that any action or inaction by you constituted grounds for termination for Cause, then ProQuest 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 ProQuest Company. ProQuest 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 ProQuest Company to you, or (iii) any combination of (i) and (ii) above. 
  

	11.	At-Will Employment 

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

	12.	Withholding 

 ProQuest Company may withhold from any
amounts payable under this Agreement (including vesting of your restricted stock award) such federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation. 
  

	13.	Section 409A 

 If any payment or benefit permitted
or required under this Agreement is reasonably determined by either party to be subject for any reason to a material risk of additional tax under Section 409A(a)(l)(B) of the Code when final regulations are issued thereunder, then you and
ProQuest Company shall promptly agree in good faith on appropriate provisions to avoid such risk without materially changing the economic value of this Agreement to either party. 
  

	14.	Indemnification 

 ProQuest 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 ProQuest Company’s Articles of Incorporation and Bylaws for any acts or omissions by reason of being a director,
officer or employee of ProQuest Company. 
  

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	15.	Cooperation 

 
You agree to reasonably cooperate with
ProQuest 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 ProQuest
Company (including, without limitation, you being available to ProQuest Company upon reasonable notice and at reasonable times for interviews and factual investigations, appearing at ProQuest 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 ProQuest 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 the Term. If your cooperation under this Section is requested after your termination of employment,
ProQuest 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. 
  

	16.	Entire Agreement; Modification 

 This Agreement
contains the entire agreement between you and ProQuest 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 the offer letter dated May 1, 2001 and signed by you and James P. Roemer and the offer letter dated February 27, 1998 and signed by you and Nils Johansson. Any modification of this Agreement will only be effective
if done in writing and signed by you and the Chief Executive Officer of ProQuest Company. If for any reason any provision of this Agreement shall be held invalid, that invalidity will not affect the remainder of this Agreement. 
  

	17.	Non-Compete Agreement 

 By signing this Agreement,
you acknowledge that (a) the Employee Confidentiality and Restrictive Covenant Agreement dated March 22, 2002 and signed by you and James P. Roemer (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 ProQuest Company. 
  

	18.	Survival of Terms 

 The provisions of Sections 6, 8,
9, 10, 14, 15, 17 and the other provisions of this Agreement which by their terms contemplate survival of the termination of this Agreement, shall survive expiration of the Term and be deemed to be independent covenants. 
  

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	19.	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. 
  

	20.	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
ProQuest Company. Please review this Agreement carefully and, if it correctly states our agreement, sign and return to me the enclosed copy. 
  

	
	Best regards,
	
	 /s/ Alan W. Aldworth

	Alan W. Aldworth
	Chairman, President and Chief Executive Officer
	ProQuest Company

 Read, accepted and agreed to this 18th day of July, 2006 
  

	
	 /s/ Todd W. Buchardt

	Todd W. Buchardt

  

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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 ProQuest Company representing 30% or more of the combined voting power of ProQuest Company’s then outstanding
securities after the date hereof (other than ProQuest Company, its subsidiaries or any employee benefit plan of ProQuest 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 ProQuest Company’s securities by either of the foregoing) and, 

  

	(b)	individuals who, as of April 6, 2006, constitute ProQuest Company’s Board of Directors (the “Incumbent Board”) cease for any reason to constitute at least a
majority of ProQuest 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 ProQuest 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 ProQuest Company’s Board, as such terms are used in Rule 14a-l 1 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 ProQuest Company’s assets to an entity less than 50% of the outstanding voting securities of which are owned in aggregate by ProQuest Company, its subsidiaries or any employee benefit plan of ProQuest Company or its
subsidiaries. A sale, lease or transfer of “substantially all” assets of ProQuest Company means a sale, lease or transfer of ProQuest Company’s assets such that the gross revenues attributable to the remaining ProQuest Company’s
assets held and operated by ProQuest Company during the immediately preceding 12 month period does not exceed S170.1 million. ProQuest Company shall measure whether there has been a sale, lease or transfer of “substantially all” assets as
of the 1st day of each calendar month during the Term. 
 Cause 
 “Cause” means termination of your employment with ProQuest 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 

  

 A-1 

 

 

that (A) a demand for performance of services has been delivered to you by ProQuest 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 ProQuest Company or its affiliates; or (4) your conviction of or plea of guilty or nolo contendere to a felony. 
 Change of Control of the Company 
 A “Change of Control of the Company” shall occur upon any of the
following events on or before the Termination Date: 
  

	(a)	a consummation of any consolidation or merger of ProQuest 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 ProQuest 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 ProQuest Company’s common stock, directly, or indirectly, have at least a 50% ownership interest); 

  

	(b)	an Asset Sale; 

  

	(c)	approval by ProQuest Company’s stockholders of any plan or proposal for the liquidation or dissolution of ProQuest Company; or 

  

	(d)	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
ProQuest Company’s Board of Directors), contested election or substantial stock accumulation (“Control Transaction”), the members of ProQuest 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 ProQuest Company’s Board of Directors. 

 Code

 “Code” means the Internal Revenue Code of 1986, as amended. 
 Disability 
 “Disability” means a mental or physical condition which, in the opinion of the Compensation
Committee of ProQuest Company (i) 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 ProQuest Company or its affiliates. 
  

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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 ProQuest
Company’s Chief Executive Officer, (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 ProQuest 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, a reduction of your bonus
target below 50% 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 ProQuest 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 with any other benefit of equivalent or greater value during the Term shall not constitute a material failure to
pay your benefits. 

  

	(b)	“Good Reason”, solely for the purposes of Section 5, shall also include: (1) a reduction in your rate of total compensation, in the aggregate, after taking into
account your Regular Salary, bonus, incentive compensation, equity compensation, fringe benefits, retirement benefits and any other benefits set forth in Exhibit D, or an adverse change in the form or timing of the payment of your Regular Salary,
bonus or accrued benefits under the SERP or EDCP, as in effect at any time during the 90 calendar day period immediately prior to a Change of Control of the Company (other than an Asset Sale or an Acquisition of Greater than 30% of the
Company’s Outstanding Voting Stock and Board Change) or (2) you resign from ProQuest Company for any reason between December 31, 2007 and January 30, 2008 following an Asset Sale. For purposes of determining whether there has
been a decrease in your rate of total compensation under clause (1) above, equity compensation shall be deemed to provide you with an annual value equal to 124% of your then current Base Salary. 

  

	(c)	Notwithstanding anything to the contrary in (a)(l) 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 ProQuest Company or any of its affiliates, including, without limitation, a sale or other transfer of property or other assets of ProQuest 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. 

  

	(d)	You shall only be entitled to terminate employment for Good Reason by giving ProQuest Company written notice of the termination, setting forth in reasonable detail the specific
conduct of ProQuest 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.

  

 A-3 

 

 
Loan Agreement 
 “Loan Agreement” shall mean the Waiver and Omnibus Amendment Agreement dated as of May 4, 2006 to the Credit Agreements and Note Purchase Agreements. 
 LTIP Award 
 “LTIP Award” means the Multi-Year Stock Option Grant dated February 4, 2004. 

Termination Date 
 “Termination Date” for purposes of
this Agreement shall be December 31, 2007, unless extended by the Compensation Committee of ProQuest Company in its sole discretion. 
  

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Exhibit B 
 RESTRICTED STOCK AGREEMENT 
 UNDER THE 2003 PROQUEST 
 STRATEGIC PERFORMANCE PLAN 
  

			
	Name of Grantee:	  	Todd W. Buchardt
		
	Social Security No.:	  	«SSN»
		
	No. of Shares:	  	60,000 Shares of Common Stock
		
	Grant Date:	  	«GrantDate»
		
	Vested Shares	  	
	(from continuous employment):	  	50% of the Shares on March 31, 2007
		  	50% of the Shares on March 31, 2008

 This Restricted Stock Agreement (the “Agreement”) is between ProQuest Company, a
Delaware corporation (the “Company”), and you, the Grantee named above, as an employee of the Company or one of its Subsidiaries. 
 This Agreement is effective as of the date of grant indicated above (the “Grant Date”). 
 The Company wishes to award to
you a number of shares of the Company’s Common Stock, no par value (the “Common Stock”), subject to certain restrictions as provided in this Agreement, in order to carry out the purposes of the 2003 ProQuest Strategic Performance Plan
(the “Plan”) and the retention agreement between you and the Company dated July 13, 2006 (the “Retention Agreement”). 
 Accordingly, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and you hereby agree as follows: 
  

	 	1.	Award of Restricted Stock. 

 The Company hereby
grants to you, effective as of the Grant Date, an Award of Restricted Stock for that number of shares of Common Stock indicated above (the “Shares”), on the terms and conditions set forth in this Agreement and in accordance with the terms
of the Plan. 
  

	 	2.	Rights with Respect to the Shares. 

 With respect
to the Shares, you shall be entitled effective as of the Grant Date to exercise the rights of a shareholder of Common Stock of the Company, including the right to vote the Shares and the right, subject to Section 8(b) below, to receive
dividends on the Shares, unless and until the Shares are forfeited under Section 5 below. Notwithstanding the foregoing, you shall be subject to the transfer restrictions in Section 6. Your rights with respect to the Shares shall remain
forfeitable at all times prior to the date or dates on which such rights become vested 
  

 B-I 

 

 
under this Agreement (the “Restricted Period”). In addition, your rights to Shares that have vested shall be
subject to forfeiture in the event that you violate the terms of your Confidentiality, Non-Solicitation and Non-Competition Agreement with the Company (the “Non-Compete Agreement”) as provided in Sections 5 and 10 below. 
  

	 	3.	Scheduled Vesting. 

 Subject to the terms and
conditions of this Agreement, Shares shall become vested in the amount or amounts set forth herein if you remain continuously employed by the Company or a Subsidiary from the Grant date until the respective date or dates described above in this
Agreement. Vesting or becoming vested entitles you to transfer your Shares, and to retain your Shares after termination of employment with the Company and its Subsidiaries subject to Section 10 below. Shares that vest under this Agreement are
referred to as “Vested Shares.” 
  

	 	4.	Accelerated Vesting. 

 Vesting shall fully
accelerate on the first to occur of the following events: 
 (a) you remain employed by the Company on a Change of Control of the Company
(other than an Asset Sale); 
 (b) you remain employed on December 31, 2007 following an Asset Sale; 
 (c) ProQuest Company terminates your employment without Cause; 
 (d) you terminate employment with ProQuest Company for Good Reason; 
 (e) you become entitled to receive
enhanced severance benefits under Section 5 of the Retention Agreement; or 
 (f) you die or suffer a Disability while employed by
ProQuest Company or its affiliates. 
 The terms “Change of Control of the Company”, “Asset Sale”, “Cause”,
“Good Reason” and “Disability” shall have the meanings as set forth in the Retention Agreement. 
  

	5.	Forfeiture. 

 Subject to the provisions of
Section 10 herein, your rights to Shares that become Vested Shares shall not be subject to forfeiture. Except as provided in Section 4 above, your rights to Shares that are not then Vested Shares shall be immediately and irrevocably
forfeited upon your termination of employment, including the right to vote such Shares and the right to receive cash dividends on such Shares as provided in Section 8(b) of this Agreement. No transfer by will or the applicable laws of descent
and distribution of any Shares which vest by reason of your death shall be effective to bind the Company unless the Committee administering the Plan shall have been furnished with written notice of such transfer and a copy of the will or such other
evidence as the Committee may deem necessary to establish the validity of the transfer. 
  

 B-2 

 

 
“Employment” covered under this Agreement shall mean the performance of services for the
Company or a Subsidiary as an employee for federal income tax purposes. You shall be deemed to have terminated employment either upon an actual termination of service with the Company and its Subsidiaries, or at the time that the Subsidiary with
which you are employed ceases to be a Subsidiary under the terms of the Plan, provided that you are not employed immediately thereafter by the Company. Your employment with the Company or one of its Subsidiaries shall not be deemed to have
terminated if you take any military leave, sick leave, or other bona fide leave of absence approved by the Company or the Subsidiary, as applicable, regardless of whether pay is suspended during such leave. 
  

	 	6.	Transfer Restrictions. 

 Notwithstanding anything to
the contrary in Sections 2, 3 and 4 of this Agreement, the Shares may not be sold, assigned, transferred, pledged, or otherwise encumbered by you (collectively, the “Transfer Restrictions”) during the period commencing on the Grant Date
and terminating at the end of the Restricted Period. The Committee shall have the authority, in its discretion, to accelerate the time at which any or all of the Transfer Restrictions shall lapse with respect to any Shares, or to remove any or all
such restrictions, whenever the Committee may determine that such action is appropriate by reason of any changes in circumstances occurring after the commencement of the Restricted Period. 
  

	 	7.	Issuance and Custody of Certificates. 

 (a) The
Company shall cause the Shares to be issued in your name, either by book- entry registration or issuance of a stock certificate or certificates, which certificate or certificates shall be held by the Company. The Shares shall be restricted from
transfer during the Restricted Period and shall be subject to an appropriate stop-transfer order. If any certificate is issued, the certificate shall bear an appropriate legend referring to the restrictions applicable to the Shares. 
 (b) If any certificate is issued, you shall be required to execute and deliver to the Company a stock power or stock powers relating to the Shares.

 (c) Upon vesting, the Company shall promptly cause your Vested Shares (less any Shares that may have been withheld to pay taxes) to be
delivered to you, free of the restrictions and/or legend described in Section 7(a) hereof, either by book-entry registration or in the form of a certificate or certificates, registered in your name or in the names of your legal representatives,
beneficiaries or heirs, as applicable. 
  

	 	8.	Distributions and Adjustments. 

 (a) If any Shares
vest subsequent to any change in the number or character of the Common Stock of the Company without additional consideration paid to the Company (through any stock dividend or other distribution, recapitalization, stock split, reverse stock split,

  

 B-3 

 

 

reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of shares or otherwise), you shall then receive upon such
vesting the number and type of securities or other consideration which you would have received if such Shares had vested prior to the event changing the number or character of the outstanding Common Stock. 
 (b) Unless the Committee determines otherwise, payment of any cash dividend, additional share of Common Stock of the Company, any other securities of the
Company and any other property distributed with respect to the Shares shall be deferred until such shares become Vested Shares (and shall be subject to forfeiture upon forfeiture under Section 5 above of any unvested Shares to which such
deferred dividends relate). Any deferred payments under this Section 8(b) shall be held by the Company on your behalf and, to the extent practicable, shall be reinvested in Common Stock. The dividends allocable to the Shares shall be paid to
you (without interest) upon the vesting date for such shares. 
  

	 	9.	Taxes. 

 (a) You acknowledge that you will consult
with your personal tax advisor regarding the federal, state and local tax consequences of the grant of the Shares, payment of dividends on the Shares, the vesting of the Shares and any other matters related to this Agreement. You are relying solely
on your advisors and not on any statements or representations of the Company or any of its agents. You understand that you are responsible for your own tax liability that may arise as a result of this grant of the Shares or any other matters related
to this Agreement. You understand that Section 83 of the Code treats as taxable ordinary income the fair market value of the Shares as of the date the Shares vest hereunder. Alternatively, you understand that you may elect to be taxed at the
time the Shares are granted rather than when the Shares vest hereunder by filing an election under Section 83(b) of the Code with the Internal Revenue Service within 30 days from the Grant Date. 
 (b) In order to comply with all applicable federal, state or local income tax laws or regulations, the Company may take such action as it deems
appropriate to ensure that all income and payroll taxes, which are your sole and absolute responsibility, are withheld or collected from you at the minimum required withholding rate. 
 (c) In accordance with the terms of the Plan, and such rules as may be adopted by the Committee administering the Plan, you may elect to satisfy any
applicable tax withholding obligations arising from the receipt of, or the lapse of restrictions relating to, the Shares (including property attributable to the Shares described in Section 8(b) above) by: 
 (i) delivering cash (including check, draft, money order or wire transfer made payable to the order of the Company), 
 (ii) having the Company withhold a portion of the Vested Shares having a Fair Market Value equal to the amount of such taxes, or 
 (iii) delivering to the Company shares of Common Stock having a Fair Market Value equal to the amount of such taxes. The Company will not deliver any
fractional Share but will pay, in lieu thereof, the Fair Market Value of such fractional Share. Your election must be made on or before the date that the amount of tax to be withheld is determined. 
  

 B-4 

 

	 	10.	Remedy for Violation of Non-Compete Agreement. 

 
(a)
You specifically recognize and affirm that strict compliance with terms of the covenants set forth in the Non-Compete Agreement is required as a condition of this Award of Restricted Stock. Notwithstanding the other provisions of this Agreement,
including the Vested Shares provisions of Section 5, if you violate the terms of the Non-Compete Agreement, then 
 (i) all of your
Shares, whether or not vested, shall be immediately forfeited and revert to the Company, and 
 (ii) if you previously transferred the Shares
for consideration to a third party, then you shall immediately deliver to the Company an amount in cash equal to the aggregate Fair Market Value of such Shares as of the date of such transfer 
 (b) You agree that should all or any part or application of the Non-Compete Agreement be held or found invalid or unenforceable for any reason whatsoever
by a court of competent jurisdiction in an action between you and the Company (or its affiliates), the Company nevertheless shall be entitled to recover the full value of this Award of Restricted Stock, pursuant to Section 10(a) above, if you
violate any of the terms of the terms and conditions set forth in the Non-Compete Agreement. 
 (c) The rights of the Company set forth in
this Section 10 shall not limit or restrict in any manner any rights or remedies which the Company or any of its affiliates may have under law or under the Non-Compete Agreement or any other separate agreement or arrangement with you.

  

	 	11.	General Provisions. 

 (a) Interpretations.
This Agreement is subject in all respects to the terms of the Plan. A copy of the Plan is available upon your request. Terms used herein which are defined in the Plan shall have the respective meanings given to such terms in the Plan, unless
otherwise defined herein. In the event that any provision of this Agreement is inconsistent with the terms of the Plan, the terms of the Plan shall govern. Any question of administration or interpretation arising under this Agreement shall be
determined by the Committee administering the Plan, and such determination shall be final, conclusive and binding upon all parties in interest. 
 (b) Integrated Agreement. This Agreement, the Retention Agreement, the Non-Compete Agreement and the Plan constitute the entire understanding and agreement between you and the Company with respect to the subject matter contained
herein and supersedes any prior agreements, understandings, restrictions, representations, or warranties between you and the Company with respect to such subject matter other than those as set forth or provided for herein. 
  

 B-5 

 

 
(c) No Right to Employment. Nothing in this Agreement or the Plan shall be construed as giving you
the right to be retained as an employee of the Company or a Subsidiary of the Company. In addition, the Company or a Subsidiary of the Company may at any time dismiss you from employment free from any liability or any claim under this Agreement,
unless otherwise expressly provided in this Agreement. 
 (d) Securities Matters. The Company shall not be required to deliver any
Shares until the requirements of any federal or state securities or other laws, rules or regulations (including the rules of any securities exchange) as may be determined by the Company to be applicable are satisfied. 
 (e) Headings. Headings are given to the sections and subsections of this Agreement solely as a convenience to facilitate reference. Such headings
shall not be deemed in any way material or relevant to the construction or interpretation of this Agreement or any provision hereof. 
 (f)
Saving Clause. If any provision(s) of this Agreement shall be determined to be illegal or unenforceable, such determination shall in no manner affect the legality or enforceability of any other provision hereof. 
 (g) Governing Law. The internal law, and not the law of conflicts, of the State of Delaware will govern all questions concerning the validity,
construction and effect of this Agreement. 
 (h) Notices. You should send all written notices regarding this Agreement or the Plan to
the Company at the following address: 
 ProQuest Company 
 300 N. Zeeb Road 
 Ann Arbor, MI 48103 
 Attn: Senior Vice President and General Counsel 
 (i) Benefit and Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their respective successors, permitted assigns, and legal representatives. The Company has the right to assign
this Agreement, and such assignee shall become entitled to all the rights of the Company hereunder to the extent of such assignment. 
  

 B-6 

 

 
IN WITNESS WHEREOF, the Company has executed this Agreement in duplicate as of the day and year first above written.

  

			
	PROQUEST COMPANY
		
	By:	 	

		 	Alan W. Aldworth
	Its:	 	Chairman, President and Chief Executive Officer

 Please indicate your acceptance of the terms and conditions of this Agreement by signing in the space
provided below and returning a signed copy of this Agreement to the Company. IF A FULLY EXECUTED COPY OF THIS AGREEMENT AND NON-COMPETE AGREEMENT HAVE NOT BEEN RECEIVED BY THE SENIOR VICE PRESIDENT AND GENERAL COUNSEL OF THE COMPANY, THE COMPANY
SHALL REVOKE ALL SHARES ISSUED TO YOU, AND AVOID ALL OBLIGATIONS, UNDER THIS AGREEMENT. 
 The undersigned hereby accepts, and agrees to, all terms and
provisions of this Agreement. 
  

							
		 	  
	 		 	  

	By:	 	Todd W. Buchardt	 		 	Date:

  

 B-7 

 

 
Exhibit C 
 AGREEMENT AND GENERAL RELEASE 
 ProQuest 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 Todd W. Buchardt
(“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 retention agreement between
Employer and Executive dated July 13, 2006 (the “Retention Agreement”) 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 Retention
Agreement. 
 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 ProQuest Company, or his/her designee, or mailed to Employer, 300 N. Zeeb Road, Ann Arbor, Michigan 48103, 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. 
 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; 

  

 C-1 

 

	 	•	 	 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 Retention Agreement which are intended to survive termination of employment; or (iv) Employee’s rights as a stockholder. 
 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 

 C-2 

 

 

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
Retention Agreement. 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. Non-admission 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.

  

 C-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 Retention Agreement which are
intended to survive termination of the Retention Agreement 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
Retention Agreement 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: 
  

									
		 		 		 	PROQUEST COMPANY
				
	  
	 		 	By:	 	  

	TODD W. BUCHARDT	 		 	 Name:
	 	  

		 		 		 	 Title:
	 	  

					
	Date:	 	  
	 		 	Date:	 	  

  

 C-4 

 

 
Exhibit D 
 SALARY, BONUS AND BENEFITS 
 Salary 
  

	 	•	 	 Base Salary: You are paid a “Base Salary” of $ 11,024.00 bi-weekly ($286,624.00 if annualized), and are eligible for consideration for a merit increase in
May 2007. 

  

	 	•	 	 Regular Salary: Your “Regular Salary” includes your Base Salary plus another $20,800.00 annualized, for a total Regular Salary of $307,424.00 annualized,
phased in based on year-to-date utilization of discontinued benefits effective July 31, 2006. 

  

	 	•	 	 Calculations for Bonus, merit pay, SERF, severance, company paid disability, 401k 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 percent of target. Additional bonus opportunity is provided for 2006 in this agreement in section 4. 

 Benefits 
 You shall be entitled to the following benefits while
employed by ProQuest Company under this Agreement through December 31, 2007: 
  

	 	•	 	 You are eligible for the Stock purchase bonus of 15% plus commissions or transaction fees contingent on holding such shares for a period of 24 months after
purchase. 

  

	 	•	 	 You are eligible to participate in the ProQuest Executive Deferred Compensation Plan (EDCP). 

  

	 	•	 	 You participate in the ProQuest Supplemental Executive Retirement Plan (SERF). Under this plan, on December 31 of each year, the Company makes a contribution
to the Trust established under the EDCP, and credits your account in an amount equal to 15% of the sum of (a) your Base Salary and your management bonus under the Financial Bonus Plan for the year and (b) amounts of Base Salary and
management bonus deferred by you under the EDCP for the year. 

  

	 	•	 	 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 four times Base Salary up to a maximum of $ 1,300,000 subject to the terms of the Policy. 

 D-l 

 

	 	•	 	 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 within the first 12 months of employment. 

  

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

 D-2exv10w34

Exhibit 10.34

FOURTH AMENDMENT

OF

BELL & HOWELL COMPANY SUPPLEMENTAL RETIREMENT PLAN

(As Amended and Restated Effective as of June 1, 1992)

     WHEREAS, Voyager Learning Company (the “company”) maintains the Bell & Howell Company
Supplemental Retirement Plan, as amended and restated effective as of June 1, 1992 (the “plan”);
and

     WHEREAS, the plan has been amended previously and further amendment of the plan now is
considered desirable;

          NOW, THEREFORE, by virtue and in exercise of the power reserved to the company under Section 9
of the plan, and pursuant to the authority delegated to the undersigned officer of the company by
the Board of Directors of the company, the plan, as previously amended, be and is further amended
by adding the following new Supplements to the plan, effective November 5, 2008:

“SUPPLEMENT A

To

BELL & HOWELL COMPANY SUPPLEMENTAL RETIREMENT PLAN

Lump Sum Distribution Elections by Participants During 2008.

     During 2008, all participants covered by the plan will be permitted to elect to receive lump
sum distributions of their benefits, but only with respect to the benefits payable to them after
December 31, 2008. Such elections shall not result in any change the benefits payable to
participants during 2008. For each participant who elects a lump sum distribution during 2008, if
the participant’s election is accepted by the company, lump sum distributions will be payable on or
about January 31, 2009.

     The amount of each participant’s lump sum distribution from the plan will be determined in
accordance with uniform factors established by the company and communicated to

1

 

participants. The factors established by the company may be changed subsequently, but only if the
change is not detrimental to participants whose elections have been approved by the company and the
change applies uniformly to all participants.

     Each participant’s election shall be subject to approval by the company, and no election shall
take effect until the company has approved the election. The company reserves the right to accept
or reject lump sum elections. The company also reserves the right to require that participants who
elect lump sum distributions provide all documentation, requested by the company, including
elections and releases in the form approved by the company.

     The provisions of this Supplement A form a part of the plan and shall supersede any
conflicting provisions of the plan.

SUPPLEMENT B

To

BELL & HOWELL COMPANY SUPPLEMENTAL RETIREMENT PLAN

Provisions To Comply With Section 409A Of The Internal Revenue Code

     On and after October 1, 2008, the plan will be operated in accordance with Section 409A of the
Internal Revenue Code, including the following provisions.

     1. Distributions

     (a) Amounts payable under the Plan may not be distributed earlier than:

	 	(i)	 	a participant’s separation from service, as determined
by regulations adopted by the Secretary of Treasury,
	 
	 	(ii)	 	a participant’s death,
	 
	 	(iii)	 	a participant’s “disability,” which means that
either the participant is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to
last for a continuous period of not less than twelve months, or the
participant is, by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to
last for a continuous period of not less than twelve months, receiving
income replacement benefits for a period of not less than three months
under an accident and health plan covering employees of the Company, or
	 
	 	(iv)	 	a change in the ownership or effective control of
the Company, or in the ownership of a substantial portion of the assets of
the

2

 

	 	 	 	Company, as defined in regulations adopted by the Secretary of Treasury.

     (b) Special Rules For Public Companies. In the case of any specified employee (as
defined below), the requirement of subparagraph (a)(i) above is met only if distributions
may not be made before the date which is 6 months after the date of separation from service
(or, if earlier, the date of death of the specified employee). For purposes of the preceding
sentence, a specified employee is a key employee (as defined in Section 416(i) of the Code
without regard to paragraph (5) thereof) of a corporation any stock in which is publicly
traded on an established securities market or otherwise. Any payments which are delayed on
account of the first sentence of this paragraph will be paid in full within 30 days after
the end of the 6 month period described in the first sentence.

     2. No Acceleration Of Benefits.

          The Plan does not permit the acceleration of the time or schedule of any payment under the
Plan, except with regard to a Change of Control (see paragraph 1, above) and except as provided by
paragraph 8 below. The definition of a Change of Control for Plan purposes will at all times
comply with the requirements of Code Section 409A and the regulations thereunder.

     3. Deferral Elections By Participants.

     (a) In General. The requirements of this paragraph are met if the Plan allows for
deferral elections and if the requirements of subparagraphs (b) and (c) are met.

     (b) Initial Deferral Decision.

	 	(i)	 	In General. Compensation for services performed
during a taxable year may be deferred at the participant’s election only if
the Plan provides for such elections and only if the election to defer such
compensation is made not later than the close of the preceding taxable year
or at such other time as provided in regulations.
	 
	 	(ii)	 	First Year Of Eligibility. In the case of the
first year in which a Participant becomes eligible to participate in the
Plan, such election may be made with respect to services to be performed
subsequent to the election within 30 days after the date the participant
becomes eligible to participate in such Plan.
	 
	 	(iii)	 	Performance-Based Compensation. In the case of
any performance-based compensation based on services performed over a
period of at least 12 months, such election may be made no later than 6
months before the end of the period.

3

 

     (c) Changes In Time And Form Of Distribution. If the Plan permits a subsequent election
to provide for a delay in a payment or a change in the form of payments, then:

	 	(i)	 	such election may not take effect until at least 12
months after the date on which the election is made,
	 
	 	(ii)	 	in the case of an election related to a payment not on
account of death, the first payment with respect to which such election is
made be deferred for a period of not less than 5 years from the date such
payment would otherwise have been made, and
	 
	 	(iii)	 	if permitted by the Plan, any election related to a
payment at a specified time may not be made less than 12 months prior to
the date of the first scheduled payment under such paragraph.

     4. Offshore Property In A Trust.

          In the case of assets set aside (directly or indirectly) in a trust (or other arrangement
determined by the Secretary of Treasury) for purposes of paying deferred compensation under a
nonqualified deferred compensation plan, for purposes of Section 83 of the Code such assets shall
be treated as property transferred in connection with the performance of services, whether or not
such assets are available to satisfy claims of general creditors, if either of the following
applies:

     (a) at the time of the set aside, such assets (or such trust or other arrangement) are
located outside of the United States, or

     (b) at the time transferred, such assets (or such trust or other arrangement) are
subsequently transferred outside of the United States.

     This paragraph shall not apply to assets located in a foreign jurisdiction if substantially
all of the services to which the nonqualified deferred compensation relates are performed in such
jurisdiction.

     5. If Assets Are Restricted For Plan Payments Only, After A Change In Employer’s Financial
Health.

          In the case of compensation deferred under a nonqualified deferred compensation plan, there
is a transfer of property within the meaning of Section 83 of the Code with respect to such
compensation as of the earlier of:

     (a) the date on which the Plan first provides that assets will become restricted to the
provision of benefits under the Plan in connection with a change in the Company’s financial
health, or

     (b) the date on which assets are so restricted, whether or not such assets are available
to satisfy claims of general creditors.

4

 

     6. Plan Funding During A Restricted Period For A Defined Benefit Pension Plan.

     (a) In general if:

	 	(i)	 	during any restricted period with respect to a
single-employer defined benefit plan, assets are set aside or reserved
(directly or indirectly) in a trust (or other arrangement as determined by
the Secretary) or transferred to such a trust or other arrangement for
purposes of paying deferred compensation of an applicable covered employee
(as defined below) under a nonqualified deferred compensation plan of the
Company or member of a controlled group which includes the Company, or
	 
	 	(ii)	 	a nonqualified deferred compensation plan of the Company
or member of a controlled group which includes the Company provides that
assets will become restricted to the provision of benefits under the Plan
in connection with such restricted period (or other similar financial
measure determined by the Secretary) with respect to the defined benefit
plan, or assets are so restricted,

such assets shall, for purposes of section 83, be treated as property transferred in connection
with the performance of services whether or not such assets are available to satisfy claims of
general creditors. Clause (i) shall not apply with respect to any assets which are so set aside
before the restricted period with respect to the defined benefit plan.

     (b) Restricted Period. For purposes of this section, the term “restricted period”
means, with respect to any plan described in subparagraph (a):

	 	(i)	 	any period during which the plan is in at-risk status
(as defined in Code Section 430(i));
	 
	 	(ii)	 	any period the Company is a debtor in a case under title
11, United States Code, or similar Federal or State law, and
	 
	 	(iii)	 	the 12-month period beginning on the date which is 6
months before the termination date of the plan if, as of the termination
date, the plan is not sufficient for benefit liabilities (within the meaning
of section 4041 of the Employee Retirement Income Security Act of 1974).

     (c) Special Rule For Payment Of Taxes On Deferred Compensation Included In Income. If an
employer provides directly or indirectly for the payment of any Federal, State, or local
income taxes with respect to any compensation required to be included in gross income by
reason of this paragraph:

5

 

	 	(i)	 	interest shall be imposed under Code Section 409A(a)(1)(B)(i)(I) on
the amount of such payment in the same manner as if such payment was part
of the deferred compensation to which it relates,
	 
	 	(ii)	 	such payment shall be taken into account in determining
the amount of the additional tax under Code Section 409A(a)(1)(B)(i)(II) in
the same manner as if such payment was part of the deferred compensation to
which it relates, and
	 
	 	(iii)	 	no deduction shall be allowed under this title with
respect to such payment.

     (d) Other Definitions. For purposes of this section:

	 	(i)	 	Applicable Covered Employee. The term “applicable
covered employee” means any:

                    (1) covered employee of the Company,

                    (2) covered employee of a member of a controlled group which includes the Company, and

                    (3) former employee who was a covered employee at the time of termination of employment
with the Company or a member of a controlled group which includes the Company.

     (e) Covered Employee. The term “covered employee” means an individual described
in Code Section 162(m)(3) or an individual subject to the requirements of section 16(a) of
the Securities Exchange Act of 1934.

     7. Income Inclusion For Offshore Trusts, Company’s Financial Health and Restricted
Period.

          For each taxable year that assets are treated as transferred as provided above in paragraph 4,
5 or 6 and such assets remain set aside in a trust or other arrangement, any increase in value in,
or earnings with respect to, such assets shall be treated as an additional transfer of property (to
the extent not previously included in income).

     8. Transition Elections By Participants During 2008.

          Notwithstanding any contrary provision of the plan or this supplement, participants may make
transition distribution elections during 2008 with respect to benefits payable in later years,
consistent with IRS final regulations and applicable guidance under Section 409A of the Code.

     9. Effective Date Of This Supplement.

          November 5, 2008.

6

 

     10. Subject to IRS Guidance and Regulations.

          The provisions of this Supplement shall be interpreted consistently with IRS guidance and
regulations promulgated under Section 409A of the Code.

*     *     *

     IN WITNESS WHEREOF, the undersigned has executed this amendment on behalf of the company this
5th day of November, 2008

	 	 	 	 	 	 	 	 	 
	 	 	VOYAGER LEARNING COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Todd W. Buchardt	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 Todd W. Buchardt	 	 
	 

	 	 	 	Its:
General Counsel	 	 

7

 

THIRD AMENDMENT

OF

BELL & HOWELL COMPANY SUPPLEMENTAL RETIREMENT PLAN

(As Amended and Restated Effective as of June 1, 1992)

          WHEREAS, Bell & Howell Company (the “company”) maintains Bell & Howell Company Supplemental
Retirement Plan, as amended and restated effective as of June 1, 1992 (the “plan”); and

          WHEREAS, the plan has been amended previously and further amendment of the plan now is
considered desirable;

          NOW, THEREFORE, by virtue and in exercise of the power reserved to the company under
Section 9 of the plan, and pursuant to the authority delegated to the undersigned
officer of the company by the Board of Directors of the company, the plan, as previously
amended, be and is further amended in the following particulars:

          1. Effective December 31, 2000, by adding the following new sentence at the end of
subsection 2.1 of the plan:

“Notwithstanding anything to the contrary herein, no employee who is not a participant in
the plan on December 31, 2000 shall become a participant after that date.”

 

 

          2. Effective December 31, 2000, by adding the following new sentence at the end of
subsection 4.1 of the plan:

“Notwithstanding anything to the contrary herein, no participant (except those
participants listed in Appendix A) shall earn any credited service hereunder after
December 31, 2000. In addition, no earnings shall be credited under the plan after
December 31, 2000, except that those participants listed in Appendix A shall continue
to be credited with earnings after such date.”

          3. Effective December 31, 2000, by adding the following new subsection 7.9 to the plan
immediately after subsection 7.8 thereof:

     “7.9 Freezing of Plan

     The plan shall be frozen effective as of December 31, 2000. The benefits of participants
in pay status on December 31, 2000 shall continue to be paid under the terms of this plan. The
benefits of participants who have terminated employment with the company and all affiliates
before December 31, 2000 will be paid under the terms of this plan. The benefits of active
participants on December 31, 2000 that have accrued under the plan up to that date will
be paid by the company pursuant to the terms of the Bell & Howell Company Executive
Deferred Compensation Plan (effective January 1, 2001), except that the benefits of
those participants listed in Appendix A shall be paid under the terms of this plan.”

          4. Effective January 1, 2001, by adding the following new subsection 8.10 to the plan
immediately following subsection 8.9 thereof:

     “8.10 Special Change in Control Provision

     In the event of a Change in Control, the companies will immediately deposit with the
trustee of the Bell & Howell Company Deferred Benefit Trust such amounts as are necessary to
fully fund the benefits that would be payable under the plan to each participant as of the date
of the Change in Control. For these purposes, Change in Control shall have the same meaning as
in subsection 6.2, except that ‘50%’ shall be substituted for ‘20%’ in subparagraph 6.2 (i) and
‘50%’ shall be substituted for ‘75%’ in subparagraph 6.2 (iii).”

-2-

 

          IN WITNESS WHEREOF, the undersigned has executed this amendment on behalf of the company this
 21 day of December, 2000.

	 	 	 	 	 	 	 
	 

	 	 	 	BELL & HOWELL COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ [ILLEGIBLE]	 	 
	 

	 	 	 	 

Its Chairman and Chief Executive Officer
	 	 

-3-

 

APPENDIX A

Johansson, Nils 
Roemer, James P. 
Gozzo, Frank 
Graver, Pat 
Fay,
 William

A-1

 

SECOND AMENDMENT

OF

BELL & HOWELL COMPANY SUPPLEMENTAL RETIREMENT PLAN

(As amended and restated effective as of June 1, 1992)

          WHEREAS, Bell & Howell Operating Company (the “company”) maintains BELL &
HOWELL COMPANY SUPPLEMENTAL RETIREMENT PLAN, as amended and restated effective as
of June 1, 1992 (the “plan”); and

          WHEREAS, the plan has been amended previously and further amendment of the plan
now is considered desirable;

          NOW, THEREFORE, by virtue and in exercise of the
power reserved to the company under Section 9 of the plan, and pursuant to the
authority delegated to the undersigned officer of the company by the Board of
Directors of the company, the plan as amended, be and is further amended, effective as
of January 1, 1996, in the following particulars:

          1. By substituting the following for the second sentence of subsection 2.1 of
the plan:

“Each other employee of the companies will become a participant in the plan on the
first day of any calendar month, if he then meets both of the following
requirements:

	 	(a)	 	He is a Tier I or Tier II employee (as
defined
in subsection 2.2 below); and
	 
	 	(b)	 	If he is eligible to participate in the
profit
sharing plan, he must elect to participate in
the profit sharing plan.”

 

 

          2. By substituting the following for subparagraph
2.2(a) of the plan:

“(a) A ‘Tier I employee’ means—

	 	(i)	 	a corporate officer of Bell & Howell
Operating Company who is both at the level of Vice President or above
and designated by Bell & Howell Operating Company as a Tier I
employee; and
	 
	 	(ii)	 	a President of a subsidiary of Bell & Howell
Operating Company who is designated by Bell & Howell Operating Company
as a Tier I employee.”

          3. By substituting the following for that portion
of subsection 5.1 that precedes subparagraph (a) thereof:

“5.1. Retirement as a Tier I Employee. Subject to the
conditions and limitations of the plan, if a participant
retires or is retired on his normal retirement date, or is
retired on a disability retirement date, and then is a
Tier I employee, and has had at least five full calendar
years of plan participation as a Tier I employee, the participant will be entitled
to monthly supplemental retirement income for life (commencing, in the case of
disability retirement, on the date provided in subsection 7.2), in an amount equal
to:”

          4.
By substituting the following sentence for the
first sentence of subsection 6.1 of the plan:

“Except as provided in subsection 6.2, if a participant voluntarily terminates
employment with the company and all affiliates other than by retirement, or if
such employment is terminated for cause, no benefits will be payable under the
plan to, or with respect to, such participant.”

          5. By substituting the following for subsection 6.2
of the plan:

-2-

 

“6.2. Deferred Vested Benefit. A participant will be entitled to a deferred vested
benefit if the participant meets any one of the following requirements:

	 	(a)	 	if before a participant has attained age
60, but after he has been an employee for
at least ten full calendar years, or after
he has been a participant in the plan for
at least five full calendar years, the
participant’s employment with the company
and all affiliates is involuntarily
terminated for a reason other than for
cause; or
	 
	 	(b)	 	the participant is covered by a hiring
agreement and his employment with the
company and all affiliates terminates at
any time under circumstances entitling the
participant to payments under such hiring
agreement; or
	 
	 	(c)	 	if before a participant has attained age
60, but after he has been an employee for
at least ten full calendar years, at least
five of which were as a participant in the
plan, the participant voluntarily
terminates employment with the company and
all affiliates; or
	 
	 	(d)	 	if a participant is involuntarily terminated
within one year of a ‘Change of Control,’ as
defined below.

A participant described above will be entitled to a deferred monthly supplemental retirement income
for life (commencing as provided in subsection 7.3) of an amount determined in accordance with
Section 5 as if the participant’s employment termination date (or the date of expiration of
severance benefits, if later) or the date of the Change of Control, if applicable, were his normal
retirement date, but based on the participant’s final average earnings and credited service as at
his employment termination date (or the date of expiration of severance benefits, if later) or the
date of the Change of Control, if applicable (with service and earnings modified, in the case of
participants with hiring agreements, as provided in subsection 3.4). A ‘Change of Control’ shall
mean the occurrence of any of the following events, as a result of one transaction or a series of
transactions:

-3-

 

(i) any ‘person’ (as that term is used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, but excluding Bell & Howell
Company (‘Parent’) and any qualified or non-qualified plan maintained
by Parent) becomes the ‘beneficial owner’ (as defined in Rule 13d-3
promulgated under such Act), directly or indirectly, of securities of
Parent representing more than 20% of the combined voting power of
Parent’s then outstanding securities;

(ii) individuals who constitute a majority of the Board of Directors
of Parent immediately prior to a contested election for positions on
the Board cease to constitute a majority as a result of such contested
election;

(iii) Parent is combined (by merger, share exchange,
consolidation, or otherwise) with another corporation and as a
result of such combination, less than 75% of the outstanding
securities of the surviving or resulting corporation are owned in
the aggregate by the former shareholders of Parent; or

(iv) Parent sells, leases, or otherwise
transfers all or substantially all of its properties or
assets to another person or entity.”

          6. By adding the following two new sentences as the final two sentences of subsection
7.1 of the plan:

“In lieu of receiving the monthly supplemental retirement income described in
the next preceding sentence, and subject to subsection 7.4, a participant who
is determined to have retired before attaining age 60 may elect to receive a
monthly supplemental retirement income, payable for life, beginning on the
last day of any calendar month following the calendar month in which the
participant attains age 55 years. The amount of monthly supplemental
retirement income payable to a participant as described in the immediately
preceding sentence shall be reduced by .417% for each month that the payment
commencement date precedes the last day of the calendar month next following
the calendar month in which the participant would have attained age 60.”

-4-

 

          7. By adding the following two new sentences as the
final two sentences of subsection 7.2 of the plan:

“In lieu of receiving the monthly supplemental retirement income described in the
preceding sentence, and subject to subsection 7.4, a participant whose benefit under
the Bell & Howell Company Long-Term Disability Plan ceases before the participant’s
age 60 may elect to receive a monthly supplemental retirement income, payable for
life, beginning on the last day of any calendar month following the later of the
calendar month in which the participant’s long-term disability benefits cease and the
calendar month following the calendar month in which the participant attains age 55
years. The amount of monthly supplemental retirement income payable to a participant
as described in the immediately preceding sentence shall be reduced by .417% for each
month that the payment commencement date precedes the last day of the calendar month
next following the calendar month in which the participant would have attained age
60.”

          8. By adding the following two new sentences as the
final two sentences of subsection 7.3 of the plan:

“In lieu of receiving the monthly supplemental retirement income described in the next
preceding sentence, and subject to subsection 7.4, a participant who qualifies for a
deferred supplemental retirement income under subsection 6.2 may elect to receive a
monthly supplemental retirement income, payable for life, beginning on the last day of
any calendar month following the calendar month in which the participant attains age
55 years. The amount of monthly supplemental retirement income payable to a
participant as described in the immediately preceding sentence shall be reduced by .417%
for each month that the payment commencement date precedes the last day of the
calendar month next following the calendar month in which the participant would have
attained age 60.”

          9. By deleting the word “two” from the third
sentence of subsection 7.5 of the plan and by adding the following

-5-

 

two new sentences as the final two sentences of subsection 7.5 of the plan:

“In lieu of the monthly benefit described in the next preceding two sentences, the
participant’s beneficiary may elect to receive a benefit, payable for life, beginning
on the last day of any calendar month following the calendar month in which the
participant would have attained age 55 years. The amount of benefit payable to a
beneficiary as described in the immediately preceding sentence shall be reduced by .417%
for each month that the payment commencement date precedes the last day of the
calendar month next following the calendar month in which the participant would have
attained age 60.”

          IN WITNESS WHEREOF, the undersigned has executed this amendment on behalf of the company this
27th day of December, 1995.

	 	 	 	 	 
	 	BELL & HOWELL OPERATING COMPANY

 	 
	 	By  	/s/
[ILLEGIBLE]
 	 
	 	 	Its Chairman and Chief Executive Officer 	 
	 

-6-

 

FIRST AMENDMENT

OF

BELL & HOWELL COMPANY SUPPLEMENTAL RETIREMENT PLAN

(As amended and restated effective as of June 1, 1992)

          WHEREAS, Bell & Howell Operating Company (the “company”) maintains BELL &
HOWELL COMPANY SUPPLEMENTAL RETIREMENT PLAN, as amended and restated effective as
of June 1, 1992 (the “plan”); and

          WHEREAS, amendment of the plan now is considered desirable;

          NOW, THEREFORE, by virtue and in exercise of the
power reserved to the company under Section 9 of the plan, and pursuant to the
authority delegated to the undersigned officer of the company by the Board of Directors
of the company, the plan be and is amended, effective as of January 1, 1994 (unless
otherwise specified), in the following particulars:

          1. By substituting the following sentences for the first sentence of subsection 1.1
of the plan, effective as of November 16, 1995:

“Bell & Howell Company Supplemental Retirement Plan (the ‘plan’) was established by
Bell & Howell Company effective January 4, 1976 (the ‘effective date’). Bell &
Howell Company became known as Bell & Howell Operating Company on November 16,
1995. All references in the plan to the ‘company’ mean Bell & Howell Company prior
to November 16, 1995 and Bell & Howell Operating Company on and after November 16,
1995.”

 

 

          2. By substituting “Bell & Howell Operating
Company” for “Bell & Howell Company” where the latter reference appears in subsection 1.2 of the
plan, effective as of November 16, 1995.

          3. By substituting the following for subsections 4.3
and 4.4 of the plan:

“4.3. Earnings. A participant’s ‘earnings’ for any period means his base
pay plus any management incentive bonus paid during that period as reported on Form
W-2, but only up to 150% of full achievement and excluding bonuses paid under any
long-term bonus program. If the participant elects to retire prior to the end of any
calendar year, the participant’s base pay for that year for purposes of determining
his earnings shall be calculated as if the participant had remained in employment
with the companies through the end of the calendar year.

4.4. Final Average Earnings. A participant’s final average earnings’ means
the average of his earnings for the highest four calendar years out of the last six
calendar years of his credited service. If the participant accrued credited service
over fewer than six calendar years, his final average earnings means the average of
his earnings for the highest four calendar years of his credited service. Such
average is computed by dividing the total of the participant’s earnings for the
applicable four-year period by 4, or by the number of years during his calendar years
of credited service for which he had earnings, if less than 4.”

          4. By substituting the following for subparagraphs
5.1(b)(i) and 5.2(b)(i) of the plan, respectively:

	 	“(i)	 	a percentage of the participant’s
primary social security benefit, which percentage shall be
based on the participant’s age at retirement as follows:

-2-

 

	 	 	 	 	 
	Attained	 	Percentage of
	Age at Retirement	 	Primary Social Security Benefit
	55 - 60
	 	 	70	%
	61
	 	 	76	%
	62
	 	 	82	%
	63
	 	 	88	%
	64
	 	 	94	%
	65
	 	 	100	%”

          5. By substituting the following for subparagraph 5.1(b)(iii) of the plan:

	 	  “(iii) 	 	the monthly amount of retirement income that could be
provided for the participant, by use of the participant’s
other Bell & Howell retirement plan accumulation, on a
life annuity basis commencing on the same date his
supplemental retirement income is to commence.”

          6. By adding the following new subsection 5.3 to
the plan immediately following subsection 5.2 thereof:

“5.3. Accrual of Supplemental Retirement Income. The amount of any
increase in a participant’s supplemental retirement income attributable to a
particular plan year will accrue entirely on the last day of that plan year, or
such earlier date during that plan year in which his employment with the company
and all affiliates terminates.”

          7. By substituting the following for subparagraph 6.2(a) of the plan:

	 	“(a) 	 	if before a participant has attained age 60, but
after he has been a plan participant for at least five full calendar
years, the participant’s employment with the company and all affiliates
is involuntarily terminated for a reason other than for cause; or”

-3-

 

          8. By deleting the parenthetical “(or actual
employment termination date, if applicable)” wherever it
appears in subsection 7.5 of the plan.

          9. By adding the following new subsections 8.8 and
8.9 to the plan immediately following subsection 8.7 thereof:

“8.8. Review of Benefit Determinations. The plan administrator will
provide notice in writing to any participant, beneficiary or other person
whose claim for benefits under the plan is denied and the plan administrator
shall afford such participant, beneficiary or other person a full and fair
review of the plan administrator’s decision, if so requested.

8.9. Decision of Plan Administrator Final. Subject
to applicable law, any interpretation of the
provisions of the plan and any decision on any matter
within the discretion of the plan administrator made
by the plan administrator in good faith shall be
binding on all persons. A misstatement or other
mistake of fact shall be corrected when it becomes
known and the plan administrator shall make such adjustment on account thereof
as the plan administrator considers equitable and practicable.”

          10. By substituting the following for that portion
of the first sentence of Section 9 that immediately precedes
subparagraph (a) thereof:

“While the company expects to continue the plan, it must necessary reserve and
reserves the right to amend the plan from time to time or to terminate the
plan at any time, in accordance with the procedures set forth in subsection
8.7 and subject to the following:”

-4-

 

          IN WITNESS WHEREOF, the undersigned has executed this amendment on behalf of the company this
27th day of December, 1995.

	 	 	 	 	 
	 	BELL & HOWELL OPERATING COMPANY

 	 
	 	By  	/s/
[ILLEGIBLE]
 	 
	 	 	Its  Chairman and Chief Executive Officer 	 
	 

-5-

 

BELL & HOWELL COMPANY SUPPLEMENTAL RETIREMENT PLAN 

(As Amended and Restated Effective as of June 1, 1992)

McDermott, Will & Emery

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	SECTION 1
	 	 	1	 
	Introduction
	 	 	1	 
	The Plan, The New Effective Date
	 	 	1	 
	Purpose
	 	 	1	 
	Plan Year
	 	 	1	 
	Plan Administration
	 	 	1	 
	Unfunded Nature of the Plan
	 	 	1	 
	Gender and Number
	 	 	2	 
	 
	 	 	 	 
	SECTION 2
	 	 	3	 
	Eligibility and Participation
	 	 	3	 
	Eligibility
	 	 	3	 
	Tier I and Tier II Employees
	 	 	3	 
	Participation
	 	 	3	 
	 
	 	 	 	 
	SECTION 3
	 	 	4	 
	Retirement Dates
	 	 	4	 
	Normal Retirement Date
	 	 	4	 
	Disability Retirement Date
	 	 	4	 
	Employment Termination Date
	 	 	4	 
	Special Rules Applicable to Participants with
Special Hiring Agreements
	 	 	4	 
	 
	 	 	 	 
	SECTION 4
	 	 	6	 
	Bases of Benefits
	 	 	6	 
	General
	 	 	6	 
	Credited Service
	 	 	6	 
	Earnings
	 	 	8	 
	Final Average Earnings
	 	 	8	 
	Profit Sharing Plan Employer Account
	 	 	8	 
	Other Bell & Howell Retirement Plan
Accumulation
	 	 	8	 
	Primary Social Security Benefits
	 	 	8	 
	 
	 	 	 	 
	SECTION 5
	 	 	10	 
	Supplemental Retirement Income
	 	 	10	 
	Retirement as a Tier I Employee
	 	 	10	 
	Retirement Other Than as a Tier I Employee
	 	 	10	 
	 
	 	 	 	 
	SECTION 6
	 	 	12	 
	Termination Before Retirement
	 	 	12	 
	No Benefits Payable
	 	 	12	 
	Deferred Vested Benefit
	 	 	12	 
	 
	 	 	 	 
	SECTION 7
	 	 	13	 
	Payment of Supplemental Retirement Income
	 	 	13	 
	Normal Retirement
	 	 	13	 
	Disability Retirement
	 	 	13	 

-i-

 

	 	 	 	 	 
	Termination Before Retirement
	 	 	13	 
	Optional Form of Payment
	 	 	13	 
	Pre-Retirement Death Benefits
	 	 	14	 
	Small Amounts
	 	 	15	 
	Actuarially Equivalent Benefits, Benefit Offset
	 	 	15	 
	Beneficiary
	 	 	15	 
	 
	 	 	 	 
	SECTION 8
	 	 	16	 
	General Provisions
	 	 	16	 
	Interests Not Transferable
	 	 	16	 
	Controlling Law
	 	 	16	 
	Successor to the Company
	 	 	16	 
	Reemployment
	 	 	16	 
	Facility of Payment
	 	 	16	 
	Employment Rights
	 	 	16	 
	Action by the Company
	 	 	16	 
	 
	 	 	 	 
	SECTION 9
	 	 	17	 
	Amendment and Termination
	 	 	17	 

-ii-

 

BELL & HOWELL COMPANY SUPPLEMENTAL RETIREMENT PLAN 

(As Amended and Restated Effective as of June 1, 1992)

SECTION 1

Introduction

1.1.
The Plan, The New Effective Date. BELL & HOWELL COMPANY SUPPLEMENTAL RETIREMENT
PLAN (the “plan”), was established by BELL & HOWELL COMPANY, an Illinois corporation (the
“company”), effective January 4, 1976 (the “effective date”). The plan was previously amended
and restated effective as of January 1, 1985. The following provisions, subject to subsequent
amendments, constitute an amendment and restatement of the plan effective as of June 1, 1992 (the
“new effective date”).

1.2. Purpose. The purpose of the plan is to provide retirement benefits for eligible
corporate officers and other employees of the company and of any of the company’s subsidiaries
participating in the plan (referred to collectively with Bell &
Howell Company as the “companies”), to supplement Social Security benefits and benefits provided
for them by Bell & Howell Profit Sharing Retirement Plan (the “profit sharing plan”) and by
any other retirement plan maintained by any of the companies.

1.3. Plan Year. The plan is administered on the basis of a plan year (the “plan year”)
beginning each January 1 and ending on the next following December 31.

1.4. Plan Administration. The plan is administered by the company (the “plan
administrator”). The plan administrator may adopt such rules of procedure and regulations as in
its opinion may be necessary for the proper and efficient administration of the plan and as are
consistent with the provisions of the plan. The plan administrator also may allocate or delegate
to any person such of the powers, rights and duties reserved to the plan administrator as it may
consider necessary or desirable to properly carry out plan administration.

1.5. Unfunded Nature of the Plan. The plan is intended to constitute an unfunded plan
within the meaning of Section 201(2) of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”), with benefits paid from the general

 

 

assets of the companies. The plan constitutes a mere promise by the companies to pay benefits in
the future. The company has established a trust named the “Bell & Howell Deferred Benefit Trust”
and may establish an additional trust or trusts to pay benefits under the plan, but a participant
or beneficiary does not and will have no rights in the assets of such trust(s), and such trust(s)
are and will be subject to the claims of the companies’ general creditors. The companies are and
will be the owner and beneficiary of any trust(s) established under this subsection 1.5.

1.6. Gender and Number. Where the context admits, words in the masculine gender will
include the feminine and neuter genders, the plural will include the singular and the singular will
include the plural.

-2-

 

SECTION 2

Eligibility and Participation

2.1. Eligibility. Each employee of the companies who was a participant in the plan
immediately prior to the new effective date will continue as a participant in the plan on and after
that date, subject to the conditions and limitations of the plan. Each other employee of the
companies will become a participant in the plan on the new effective date, or on the first day of
any subsequent calendar month, if he then meets all of the following requirements:

	 	(a)	 	He has attained 40 years of age;
	 
	 	(b)	 	He is a Tier I or Tier II employee (as defined below); and
	 
	 	(c)	 	If he is eligible to participate in the profit sharing plan, he
must elect to participate in the profit sharing plan.

2.2. Tier I and Tier II Employees. For purposes of the plan:

	 	(a)	 	A “Tier I employee” means a corporate officer of Bell & Howell Company who
is at the level of Vice President or above.
	 
	 	(b)	 	A “Tier II employee” means an employee of the companies at executive
salary grade level 35 or above.

2.3. Participation. A participant in the plan will continue as such until the later to
occur of his termination of employment with the company and all corporations, partnerships, trades
or businesses treated as a part of a “controlled group” of which the company is a member, under
Section 414(b), (c), (m) or (o) of the Internal Revenue Code of 1986, as amended (“the Code”) (each
an “affiliate”), or the distribution of all benefits, if any, to which he is entitled under the
plan. However, a participant’s right to accrue benefits under the plan is subject to the provisions
of subsections 4.2 and 4.4 as well as Section 9.

-3-

 

SECTION 3

Retirement Dates

3.1. Normal Retirement Date. A participant’s “normal retirement date” will be the date on
which the participant retires or is retired from the employ of the company and all affiliates. A
participant leaving the employ of the company and all affiliates after attaining age 60 years and
for reasons other than disability or termination for cause will be presumed to have retired. The
company will in its discretion determine whether any participant leaving the company voluntarily
before age 60 and for a reason other than disability has retired.

3.2. Disability Retirement Date. A participant’s “disability retirement date” will be the
date on which the participant is retired from the employ of the company and all affiliates because
of disability. A participant will be considered to have incurred a “disability” for purposes of the
plan if the disability qualifies him for long-term disability benefits under the Bell & Howell
Company Long-Term Disability Plan (or would qualify the participant for such benefits if the
participant had enrolled in that plan).

3.3. Employment Termination Date. A participant’s “employment termination date” means one
of the following dates that applies in the participant’s case:

	 	(a)	 	the participant’s normal retirement date or disability retirement
date if he retires under the plan on either such date;
	 
	 	(b)	 	the date of the participant’s termination of employment with the
company and all affiliates, if such termination occurs other than by retirement
under the plan and for a reason other than the participant’s death; or
	 
	 	(c)	 	the date the participant’s employment with the company and all
affiliates terminates because of the participant’s death.

3.4. Special Rules Applicable to Participants with Special Hiring Agreements. Certain
participants in the plan are also covered by special hiring agreements. Such agreements may contain
special provisions concerning the applicable participant’s treatment for purposes of accruing
benefits under this

-4-

 

plan and may provide that during a specified period, the applicable participant will be treated as
if he continued to accrue additional benefits under this plan, based on an assumed service period
and compensation during that period as described in each agreement.

-5-

 

SECTION 4

Bases of Benefits

4.1. General. Benefits payable under the plan with respect to a participant will be based
on the participant’s credited service, final average earnings, profit sharing plan employer
account, other Bell & Howell retirement plan accumulation, and primary social security benefit, as
defined below.

4.2. Credited Service. For purposes of the plan, a participant’s “credited service” means
the sum of the following, rounded down to the nearest whole number of years of credited service):

	 	(a)	 	the participant’s last continuous period of employment with the company
and any of its affiliates during the period of eighteen consecutive calendar
months ending immediately prior to the date the participant last became a
participant in the profit sharing plan;
	 
	 	(b)	 	the participant’s last continuous period of participation in the
profit sharing plan, but excluding:

	 	(i)	 	any portion thereof during which the
participant voluntarily discontinued mandatory contributions
otherwise required of him under the profit sharing plan (or the
equivalent of such contributions under the Bell & Howell Company
Replacement Benefit Plan, if applicable);
	 
	 	(ii)	 	any portion thereof commencing after the date
the participant last became a participant in this plan and during
which he continued as an employee of the company or any affiliate
thereof but ceased to be either a Tier I or Tier II employee;
provided however, the Chief Executive Officer of the company may,
in his discretion, provide, by writing filed with the plan
administrator, that this clause (ii) will apply only in part,

-6-

 

	 		 	or not at all, with respect to any one or more
participants;
	 
	 	(iii)	 	any portion thereof commencing after the date
the participant last became a participant in this plan which is
specified by the company in writing prior to the beginning of such
portion of his last continuous period of participation in the
profit sharing plan; and
	 
	 	(iv)	 	any portion thereof commencing after the
participant’s employment termination date (as a result of
separation from service, 

long-term disability or for any other
reason);

	 	(c)	 	any period during which the participant is ineligible to participate in
the profit sharing plan, but which constitutes credited service under one or
more other qualified or nonqualified plans maintained by the company in order to
provide retirement income benefits for eligible employees; provided, however,
that any period during which a participant earns credited service under more
than one such plan will be counted only once for purposes of this subparagraph
4.2(c);
	 
	 	(d)	 	the period during which the participant is deemed to have continued employment with the
company and any of its affiliates beyond his actual employment termination date
pursuant to a hiring agreement in effect with respect to the participant; and
	 
	 	(e)	 	such other period or periods of employment with the company and its
affiliates (and any predecessor thereto) as are designated as “credited service” by
the company in writing.

Notwithstanding the foregoing, the portion of a participant’s credited service attributable to
employment and participation in the profit sharing plan prior to the new effective date will not,
in the case of a participant in this plan immediately prior to the new effective date, be less than
such portion determined under the terms of this plan as in effect immediately prior to the new
effective date.

-7-

 

4.3. Earnings. A participant’s “earnings” for any period means his base pay plus any management
incentive bonus paid during that period as reported on Form W-2.

4.4. Final Average Earnings. A participant’s “final average earnings” means the average of
his earnings for the highest three calendar years out of the last six calendar years of
his credited service. If the participant accrued credited service over fewer than six calendar
years, his final average earnings means the average of his earnings for the highest three calendar
years of his credited service. Such average is computed by dividing the total of the participant’s
earnings for the applicable three year period by 3, or by the number of years during his calendar
years of credited service for which he had earnings, if less than 3.

4.5. Profit Sharing Plan Employer Account. A participant’s “profit sharing plan employer
account” means his total account balances in the profit sharing plan and the Bell & Howell Company
Replacement Benefit Plan as of his employment termination date (or his actual employment
termination date, if applicable), exclusive of that portion that is attributable to the
participant’s voluntary and mandatory contributions to the profit sharing plan and the Bell &
Howell Company Replacement Benefit Plan.

4.6. Other Bell & Howell Retirement Plan Accumulation. A participant’s “other Bell & Howell
retirement plan accumulation” means the sum of the lump sum actuarially equivalent values of any
employer provided retirement income benefits he is entitled to receive on or after his employment
termination date (or actual employment termination date, if applicable) under one or more qualified
or nonqualified retirement plans to which the company or any of its affiliates has made
contributions on the participant’s behalf.

4.7. Primary Social Security Benefits. A participant’s “primary social security benefit”
means the Primary Insurance Amount that would be payable to the participant on the date he attains
age 65 years under the Social Security Act as in effect on such date; provided, however, that if
the participant’s employment termination date (or actual employment termination date, if
applicable) occurs before he is eligible to receive Social Security benefits, it will be assumed in
determining the participant’s primary social security benefit that the participant will not receive
any compensation after his employment termination date (or his actual employment termination date,
if

-8-

 

applicable)
which would be treated as “wages” for purposes of the Social Security Act. A
participant’s primary social security benefit will be deducted in accordance with Section 5 even
though the participant may not be receiving or may not be eligible to receive Social Security
benefits because of failure to apply for them, entry into covered employment, or otherwise.

-9-

 

SECTION 5

Supplemental Retirement Income

5.1. Retirement as a Tier I Employee. Subject to the conditions and limitations of the
plan, if a participant retires or is retired on his normal retirement date, or is retired on a
disability retirement date, and then is a Tier I employee, the participant will be entitled to
a monthly supplemental retirement income for life (commencing, in the case of disability
retirement, on the date provided in subsection 7.2), in an amount equal to:

	 	(a)	 	2.5 percent of the participant’s final average earnings multiplied by
the participant’s years of credited service (up to a maximum of 20 years of
credited service) reduced by
	 
	 	(b)	 	the sum of

	 	(i)	 	70 percent of the participant’s primary social
security benefit,
	 
	 	(ii)	 	the monthly amount of retirement income that could be
provided for the participant, by use of his profit sharing plan
employer account, on a life annuity basis commencing on the same date
the participant’s supplemental retirement income is to commence, and
	 
	 	(iii)	 	the monthly amount of retirement income that could
be provided for the participant, by use of the participant’s other Bell
& Howell retirement plan accumulation, on a life annuity basis
commencing at age 60, or if later, on the same date his supplemental
retirement income is to commence.

Subject to subsection 7.7, for purposes of determining the monthly amount of retirement income
under subparagraphs (b)(ii) and (b)(iii) above, a factor based on the PBGC immediate and deferred
interest rates will be used.

5.2. Retirement Other Than as a Tier I Employee. Subject to the conditions and
limitations of the plan, if a participant retires or is retired on his normal retirement date, or
is retired on a disability retirement date, and is not then a

-10-

 

Tier I employee, he will be entitled to a monthly supplemental retirement income for life
(commencing, in the case of disability retirement, on the date provided in subsection 7.2), in an
amount equal to:

	 	(a)	 	the sum of

	 	(i)	 	2 percent of the participant’s final average earnings multiplied by the
participant’s years of credited service (up to a maximum of 10 years of credited
service) plus
	 
	 	(ii)	 	1.5 percent of the participant’s final average
earnings multiplied by the participant’s years of credited service in
excess of 10 years (up to a maximum of 20 additional years of credited
service) reduced by

	 	(b)	 	the sum of

	 	(i)	 	70% of the participant’s primary social security
benefit,
	 
	 	(ii)	 	the monthly amount of retirement income that could be
provided for him by use of his profit sharing plan employer account on a
life annuity basis commencing on the same date his supplemental
retirement income is to commence, and
	 
	 	(iii)	 	the monthly amount of retirement income that could be provided for him, by
use of his other Bell & Howell retirement plan accumulation, on a life annuity basis
commencing on the same date his supplemental retirement income is to commence.

Subject to subsection 7.7, for purposes of determining the monthly amount of retirement income
under subparagraphs (b)(ii) and (b)(ii) above, a factor based on the PBGC immediate and
deferred interest rates will be used.

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SECTION 6 

Termination Before Retirement

6.1. No Benefits Payable. If a participant voluntarily terminates employment with the
company and all affiliates other than by retirement, or if such employment is terminated for cause,
no benefits will be payable under the plan to, or with respect to, such participant. A
participant’s employment with the company and all affiliates will be considered to have been
terminated “for cause” if such employment is terminated because of proven dishonesty, gross
misconduct or insubordination, fraud, embezzlement or conviction of a felony arising in the course
of the participant’s employment with the company or any affiliates, or the wrongful disclosure or
divulgence of any confidential data or information relating to the company or any affiliate.

6.2. Deferred Vested Benefit. A participant will be entitled to a deferred vested benefit
if the participant meets the requirements of (a) or (b) below:

	 	(a)	 	if before a participant has attained age 60, but on or after the last day of the third
plan year following the plan year in which he commenced employment with the companies, the
participant’s employment with the company and all affiliates is involuntarily terminated
for a reason other than for cause; or
	 
	 	(b)	 	the participant is covered by a hiring agreement and his employment
with the company and all affiliates terminates at any time under circumstances
entitling the participant to payments under such hiring agreement.

A participant described above will be entitled to a deferred monthly supplemental retirement
income for life (commencing as provided in subsection 7.3) of an amount determined in accordance
with Section 5 as if the participant’s employment termination date (or the date of expiration of
severance benefits, if later) were his normal retirement date, but based on the participant’s final
average earnings and credited service as at his employment termination date (or the date of
expiration of severance benefits, if later) (with service and earnings modified, in the case of
participants with hiring agreements, as provided in subsection 3.4).

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SECTION 7

Payment of Supplemental Retirement Income

7.1. Normal Retirement. Subject to the provisions of subsection 7.4, if a participant
retires or is retired on his normal retirement date, the participant’s monthly supplemental
retirement income will be paid to him for life, with the first payment due on the last day of the
calendar month next following the calendar month in which the
participant’s normal retirement date occurs, and with
the final payment due on the last day of the calendar month in which the participant’s death
occurs. However, if a participant is determined to have retired before attaining age 60, the first
payment of the participant’s monthly supplemental retirement income will be due on the last day of
the calendar month next following the calendar month in which the participant attained age 60.

7.2. Disability Retirement. Subject to the provisions of subsection 7.4, if a participant
is retired on a disability retirement date, his monthly supplemental retirement income will be paid
to him for life, with the first payment due on the last day of the calendar month next following
the later of the calendar month in which the participant attains age 60 or the calendar month in
which the participant’s benefits under the Bell & Howell Company Long-Term Disability Plan cease,
and with the final payment due on the last day of the calendar month in which the participant’s
death occurs.

7.3. Termination Before Retirement. Subject to the provisions of subsection 7.4, if a
participant’s employment termination occurs other than by retirement under the plan, but he
qualifies for a deferred supplemental retirement income under subsection 6.2, the participant’s
monthly supplemental retirement income will be paid to him for life, with the first payment due on
the last day of the calendar month next following the calendar month in which he attains age 60
years, and with the final payment due on the last day of the calendar month in which his death
occurs.

7.4. Optional Form of Payment. In lieu of the normal form and amount of monthly
supplemental retirement income otherwise payable to him or her, a participant at any time prior to
commencement of payment of his supplemental retirement income may elect payment in the form of the
joint and survivor retirement benefit described below. However, a participant’s election will
become effective at the time of commencement of payment of

-13-

 

his supplemental retirement income only if the participant’s beneficiary is living at such time.
The joint and survivor retirement benefit will be actuarially equivalent to the normal form and
amount of monthly supplemental retirement income, and will consist of a smaller monthly
supplemental retirement income payable to the participant during the participant’s lifetime and, if
the beneficiary is living at the time of the participant’s
death, with payment of one-half of that
amount to the beneficiary for the balance of the beneficiary’s life. Subject to subsection 7.7, the
actuarial equivalence of the joint and survivor retirement benefit will be determined using unisex
table UP 84 with an interest rate of 9%.

7.5. Pre-Retirement Death Benefits. If a participant’s employment termination date (or
actual employment termination date, if applicable) occurs because of death on or after he attains
age 60 years, and his beneficiary then is living, a monthly benefit will be payable to the
beneficiary for the balance of the beneficiary’s life equal to the same monthly amount that would
have been payable to the participant’s beneficiary under subsection 7.4 if the participant had
elected the joint and survivor retirement benefit provided thereunder with such beneficiary as
joint annuitant, had retired under the plan and commenced receiving the reduced monthly
supplemental retirement income payable under subsection 7.4 on the last day of the calendar month
in which the participant’s death occurred, and had died immediately thereafter. With respect to any
participant for whom a hiring agreement is in effect, pre-retirement death benefits will be payable
under the next preceding sentence in the event of such participant’s death after age 60 years but
prior to expiration of the number of months after the participant’s actual termination date equal
to the Termination Factor, as described in the participant’s hiring agreement, if applicable. If a
participant’s employment termination date (or actual employment termination date, if applicable)
occurs because of death before he attains age 60, no benefit will be payable under this plan in
respect of the participant, except as provided in the next following two sentences. If a
participant’s employment termination date (or actual employment termination date, if applicable)
occurs because of death before he attains age 60, and his beneficiary is living at the
participant’s death, a monthly benefit will be payable to the beneficiary, with the first payment
due on the last day of the calendar month next following the calendar month in which the
participant would have attained age 60, and the last payment due on the last day of the calendar
month in which the beneficiary dies. The monthly benefit payable pursuant to the next preceding
sentence will be equal to one-half of the reduced monthly benefit that would have been payable to
the participant if he had terminated employment under subsection 7.3 above on

-14-

 

the date
of death with a deferred supplemental retirement income under subsection 7.3, and had
before death elected the optional form of payment under subsection 7.4.

7.6. Small Amounts. If the monthly amount payable under the plan to a participant or to the
beneficiary of a deceased participant is less than $100.00 then, notwithstanding any other
provisions of the plan, the plan administrator in its discretion may combine such person’s monthly
payments and make payment thereof on a quarterly, semiannual or annual basis. With respect to
participants or their beneficiaries whose payments under the plan begin on or after November 1,
1992, if the lump sum actuarially equivalent value of the supplemental retirement benefit,
survivor’s benefit under subsection 7.4, or pre-retirement death benefit payable under subsection
7.5 is less than $45,000, the plan administrator will make payment thereof in one lump sum.

7.7. Actuarially Equivalent Benefits, Benefit Offset. Actuarially equivalent benefits and
the monthly amount of supplemental retirement income that could be provided for a participant on a
life annuity basis with the participant’s profit sharing plan employer account or with the
participant’s other Bell & Howell retirement plan
accumulation will be determined on the basis of
such reasonable actuarial tables, factors and assumptions as the plan administrator may adopt for
these purposes and apply on a uniform basis. The plan administrator may change such actuarial
tables, factors and assumptions from time to time in its sole discretion.

7.8. Beneficiary. A participant’s beneficiary under this plan means his spouse, if any, on
the date of the participant’s death.

-15-

 

SECTION 8 

General Provisions

8.1. Interests Not Transferable. Except as may be required by the tax withholding
provisions of the laws of the United States or any state, the interests of participants and the
beneficiaries of deceased participants are not subject to the claims of their creditors and may not
be voluntarily or involuntarily transferred, assigned, alienated or encumbered.

8.2. Controlling Law. To the extent not superseded by federal law, the laws of Illinois
will be controlling in all matters relating to the plan.

8.3. Successor to the Company. The term “company” as used in the plan will include any
successor to the company by reason of merger, consolidation, the purchase of all or substantially
all of the company’s assets or otherwise.

8.4. Reemployment. If a participant or former participant is reemployed by the company
after his employment termination date (or actual employment termination date, if applicable) then,
unless and to the extent specified otherwise by the Board of Directors of the company, the
participant will be treated as a new employee for all purposes of the plan.

8.5. Facility of Payment. Any amounts payable hereunder to any person under legal
disability or who, in the judgment of the plan administrator, is unable to properly manage his
affairs may be paid to the legal representative of such person or may be applied for the benefit of
such person in any manner which the plan administrator may select.

8.6. Employment Rights. Establishment of the plan will not be construed to give any
participant the right to be retained in the service of the company or of any affiliate, or to any
benefits or payments not specifically provided by this plan.

8.7. Action by the Company. Any action required of or permitted by the company under the
plan will be by resolution of its Board of Directors or any person or persons, or a committee,
authorized by resolution of its Board of Directors.

-16-

 

SECTION 9 

Amendment and Termination

While the company expects to continue the plan, it must necessarily reserve and reserves the right
to amend the plan from time to time or to terminate the plan at any time, subject to the
following:

	 	(a)	 	no amendment may reduce the supplemental retirement income benefits
a participant has accrued under the plan up to the date the amendment is made
by the Board of Directors of the company but which had not become payable
prior to that date, and no amendment may reduce any benefits which became
payable under the plan to a participant or beneficiary prior to that date
(whether or not payment of such benefits had commenced);
	 
	 	(b)	 	if the plan is terminated by the Board of Directors of the company:

	 	(i)	 	the supplemental retirement income or other
benefits which became payable to any participant or beneficiary
prior to the date of termination of the plan (whether or not
payment of such benefits had commenced) will continue to be paid
by the company as if the plan as in effect immediately prior to
the date of the termination of the plan had continued in effect
thereafter; and
	 
	 	(ii)	 	the supplemental retirement income benefits a
participant has accrued under the plan up to the date of
termination of the plan but which had not become payable prior to
that date will be paid by the company only if such participant
subsequently qualifies for such benefits, assuming the plan as in
effect immediately prior to the date of its termination had
continued in effect thereafter, and any benefits which would have
been payable to the beneficiary of a participant if the plan had
not been terminated (but only

-17-

 

	 	 	 	with respect to the supplemental retirement income benefits
the participant had accrued up to the date of the
termination of the plan) will be paid by the company as if
the plan had continued in effect thereafter; and

	 	(c)	 	no amendment or termination of the plan will cause any reduction in the benefits
accrued or deemed to have accrued at actual termination of employment on behalf of any
participant with respect to whom a hiring agreement is in effect, as provided in subsection
3.4 above.

Reference above to retirement income payments a participant has accrued under the plan up to the
date of an amendment to the plan or the termination of the plan, but which had not become payable
prior to that date, means the monthly supplemental retirement income benefits, if any, such
participant would be entitled to receive under the plan after his employment termination date,
assuming that the plan as in effect immediately prior to the date of such amendment or termination
of the plan had continued in effect, that the participant’s years of credited service up to the
date of such amendment or termination of the plan will not increase and, consequently, that the
participant’s final average earnings at his employment termination date (or actual employment
termination date, if applicable) will equal his final average earnings as of the date of such
amendment or termination of the plan.

-18-

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