Document:

EX-10.2

 

Exhibit 10.2

NONCOMPETITION AGREEMENT

     This Non-Competition Agreement (the “Agreement”) is made as of January 31, 2007, by and
between Haights Cross Communications, Inc. (the “Company”) and Peter J. Quandt (“Quandt”).

     WHEREAS, Quandt serves as Chairman, Chief Executive Officer and President of the Company,
pursuant to the terms of an Employment Agreement dated as of January 1, 2007 (the “Employment
Agreement”), and also is a shareholder of the Company and serves as a director of the Company and
certain of its subsidiaries;

     WHEREAS, as a result of his positions, Quandt has and will in the future obtain extensive and
valuable knowledge of confidential information regarding the business of the Company and its
subsidiaries related to the operation of the Company, Buckle Down Publishing/Triumph Learning,
Sundance Publishing/Newbridge Educational Publishing, Oakstone Publishing, Options Publishing,
Recorded Books, and such other subsidiaries and affiliates as the Company may acquire in the future
(the “Business”);

     WHEREAS, Quandt’s services to the Company are unique and extraordinary;

     WHEREAS, Section 6(b) of the Employment Agreement contemplates the Company and Quandt entering
into this Agreement.

     NOW THEREFORE, the Company and Quandt, for good and valuable consideration, receipt of which
is hereby acknowledged, agree as follows:

     1. Restricted Territory. In addition to other terms defined herein, the following
term when used herein shall have the following meaning:

          “Restricted Territory” means the 50 states of the United States of America.

     2. Noncompetition and Nonsolicitation. During his employment with the Company and for
twenty (20) months thereafter, Quandt (i) will not, directly or indirectly, whether as owner,
partner, shareholder, consultant, agent, employee, co-venturer or otherwise, engage, participate,
assist or invest in any Competing Business (as hereinafter defined); (ii) will refrain from
directly or indirectly employing, attempting to employ, recruiting or otherwise soliciting,
inducing or influencing any person to leave employment with the Company (other than terminations of
employment of subordinate employees undertaken in the course of Quandt’s employment with the
Company); and (iii) will refrain from soliciting or encouraging any customer or supplier to
terminate or otherwise modify adversely its business relationship with the Company. Quandt
understands that the restrictions set forth in this Section 2 are appropriate given that Quandt’s
services are unique and extraordinary, and Quandt further understands that such restrictions are
intended to protect the Company’s interest in its

 

 

confidential information and established employee, customer and supplier relationships and
goodwill, and agrees that such restrictions are reasonable and appropriate for this purpose. For
purposes of this Agreement, the term “Competing Business” shall mean a business conducted in all or
any portion of the Restricted Territory which is competitive with any business which the Company or
any of its direct or indirect subsidiaries conducts as of and subsequent to the date of this
Agreement. Notwithstanding the foregoing, Quandt may own up to one percent (1%) of the outstanding
stock of a publicly held corporation which constitutes or is affiliated with a Competing Business.

     3. Non-Compete Payment. In consideration for Quandt’s agreement to abide by the
restrictions contained in Section 2, if Quandt’s employment is terminated without Cause (as defined
in Section 5(b) of the Employment Agreement or by Quandt for Good Reason (as defined in Section
3(b) of the Employment Agreement), and if Quandt executes the Separation and Release Agreement
referenced in Section 10 of the Employment Agreement and the Separation and Release Agreement
becomes irrevocable, the Company hereby agrees to pay to Quandt, during the twenty (20) month
period following such termination, the gross amount of $1,250,000 in monthly installments of
$62,500, subject to applicable tax withholdings, payable on or before the fifteenth day of each
month.

     4. Specific Performance. Quandt acknowledges that, in view of the nature of the
Business, the restrictions contained in Section 2 hereof are reasonably necessary to protect the
legitimate business interests of the Company and that any violation of such restrictions may result
in irreparable injury to the Company and the Business for which damages may not be an adequate
remedy. Quandt therefore acknowledges that, if a court of competent jurisdiction shall find that
any such restrictions are violated, the Company shall be entitled to preliminary and injunctive
relief (without the requirement of posting a bond) as well as to an equitable accounting of
earnings, profits and other benefits arising from such violation.

     5. Non-Exclusivity. The rights and remedies of the Company hereunder are not
exclusive of, or limited by, or in limitation of, any other rights or remedies which it may have,
whether at law, in equity, by contract or otherwise, all of which shall be cumulative.

     6. Successors and Assigns.

     (a) This Agreement shall be binding upon and shall inure to the benefit of the Company and its
successors and assigns, and the term the “Company” as used herein shall include its successors and
assigns. The term “successors and assigns” as used herein shall include but not be limited to a
corporation or other entity acquiring all or substantially all of the stock, assets, or business of
the Company whether by operation of law or otherwise.

     (b) Neither this Agreement nor any right or interest hereunder shall be assignable or
transferable by Quandt, his heirs, beneficiaries or legal representatives except by will or by the
laws of descent and distribution. This Agreement shall be binding upon and inure to the benefit of
Quandt, his heirs, beneficiaries and legal representatives.

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     7. Miscellaneous. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing and signed by
Quandt and the Company. No waiver by either party hereto at any time of any breach by the other
party hereto of, or compliance with, any condition or provision of this Agreement to be performed
by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time. No agreement or representation, oral or otherwise,
express or implied, with respect to the subject matter hereof has been made by either party which
is not expressly set forth in this Agreement. No failure or delay of the Company in enforcing any
of its rights hereunder at any time shall constitute or evidence any waiver of such rights.

     8. Governing Law. This Agreement shall be governed by and in accordance with the law
of the State of New York, without giving effect to the principles governing conflicts of law.

     9. Severability. Should any provision of this Agreement or part thereof be held under
any circumstances in any jurisdiction to be invalid or unenforceable for any reason, including,
without limitation, because of its geographic or business scope or duration, such provision shall
be construed in such a way as to make it valid and enforceable to the maximum extent possible. Any
invalidity or unenforceability of any provision in this Agreement shall not affect the validity or
enforceability of any other provision or other part of such provision of this Agreement or any
other agreement or instruments.

     10. Entire Agreement. This Agreement shall constitute the entire agreement between
the parties hereto with respect to the subject matter hereof and supersedes all prior agreements,
understandings and arrangements, oral or written, between the parties hereto on the subject matter
hereof.

     11. Counterparts. This Agreement may be executed and delivered in counterparts,
including by facsimile, each of which shall be deemed an original. It shall not be necessary for
each party to sign each counterpart so long as each party has signed at least one counterpart.

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     IN WITNESS WHEREOF, the parties have signed this Agreement as of the date and year first above
written.

	 	 	 	 	 
	 	HAIGHTS CROSS COMMUNICATIONS, INC.

 	 
	 	By:  	/s/ Christopher S. Gaffney
 	 
	 	 	Name:  Christopher S. Gaffney	

	 	 	Title: Director
	 
	 	PETER J. QUANDT

 	 
	 	/s/ Peter J. Quandt
 	 
	 	 	 
	 	 	 
	 

4EX-10.3

 

Exhibit 10.3

EMPLOYMENT AGREEMENT

     AGREEMENT, made as of January 31, 2007, by and between Haights Cross Communications, Inc. (the
“Company”), and Paul J. Crecca (“Crecca”).

     1. EMPLOYMENT 

     (a) Position. The Company agrees to employ Crecca, and Crecca agrees to serve as
Executive Vice President and Chief Financial Officer of the Company. Crecca shall report to Peter
J. Quandt (“Quandt”), Chairman and Chief Executive Officer.

     (b) Principal Office. Crecca’s principal office shall be at the principal executive
offices of the Company in White Plains, New York, except for reasonable business travel obligations
commensurate with Crecca’s position. Crecca’s principal office shall not be located more than ten
miles from White Plains, New York.

     (c) Duties and Powers. Crecca shall have the customary duties, powers,
responsibilities and authority of a Chief Financial Officer. Crecca shall perform such duties and
exercise such powers upon such terms and conditions as Quandt or the Board of Directors shall
reasonably impose. Crecca shall devote his full working time and best efforts to the performance
of his duties under this Agreement, except that, with the consent of the Board of Directors (which
consent shall not be unreasonably withheld), Crecca may engage in charitable and community affairs
activities. Crecca also agrees that participation as a member of an outside corporate board will
only be undertaken with permission of the Board of Directors.

 

 

     (d) Term. The term of Crecca’s employment under this Agreement shall commence as of
January 1, 2007, and shall terminate on December 31, 2008, unless extended or sooner terminated in
accordance with the provisions of this Agreement (the “Term”). The Term shall be extended
automatically for periods of one year (the first possible automatic extension date being January 1,
2009) unless either the Company or Crecca has given written notice to the other not later than six
months prior to the expiration of the Term (the first possible such notice date being July 1, 2008)
of such party’s election not to extend the Term.

     2. COMPENSATION AND BENEFITS. During the Term (i.e., the period of employment of
Crecca hereunder), the Company shall pay Crecca the following amounts and provide to Crecca the
following benefits:

     (a) Base Salary. The Company shall pay Crecca an annual base salary of $360,000 for
the year 2007, increasing by 4% (four percent) in each subsequent calendar year of the Term (“Base
Salary”).

     (b) Annual Bonus. The Company shall pay Crecca an annual bonus (“Bonus”) of not less
than 44% (forty-four percent) of Base Salary in each year of the Term and, in each year of the
Term, Crecca shall be eligible for a greater Bonus within the Board of Directors’ sole discretion.
Bonus shall be paid no later than March 15 of the year following the applicable Bonus year. Bonus
for 2006 shall be payable at the rate of 44%, or a greater rate at the discretion of the Board of
Directors, of 2006 Base Salary as if this Agreement was in effect from January 1, 2006.

     (c) Other Compensation Plans and Programs. Crecca shall be eligible to participate in
any other Company compensation plans and programs for senior executives

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of the Company, including without limitation a monthly automobile allowance, without discrimination
or duplication.

     (d) Employee Benefits. In accordance with the terms of the applicable plan documents
or policies, the Company shall provide Crecca with coverage under all employee medical and welfare
benefit programs, plans and practices which the Company generally makes available to its senior
officers, which may be reviewed and changed from time to time.

     (e) Vacation. Crecca shall be entitled to four weeks’ paid vacation each year, which
may be taken consistent with Company’s policies and procedures. Crecca shall also be entitled to
ten personal/sick days each year.

     (f) Expenses. In accordance with the Company’s expense policies, which may be amended
from time to time, the Company shall reimburse Crecca for all reasonable business expenses incurred
by Crecca in carrying out his duties under this Agreement, upon timely presentation by Crecca of
appropriately itemized accounts of such expenditures, and approved in accordance with Company
policy (“Business Expenses”). In addition, the Company will reimburse Crecca for up to $3,000 in
legal fees incurred in respect of advice, negotiation, drafting and revising of this Agreement.

     3. TERMINATION OF EMPLOYMENT BY THE COMPANY OTHER THAN FOR CAUSE OR BY CRECCA FOR GOOD REASON 

     The Company may terminate Crecca’s employment other than for Cause and Crecca may terminate
his employment for Good Reason, in each case subject to the notice requirement set forth in this
Section 3. If, within the notice period pursuant to Section 3(a), the grounds for such termination
are cured as expressly permitted

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hereunder, the notice of termination shall be void and no termination pursuant to such notice shall
occur. A non-extension of the Term, if elected by the Company, shall be deemed to be a termination
of Crecca’s employment other than for Cause if Crecca remains employed until the end of the Term
and his employment then in fact terminates due to the non-extension of the Term hereunder.

     (a) Notice and Payment Obligations. Any termination of Crecca’s employment by the
Company other than for Cause shall only become effective at least 30 (thirty) days after written
notice to Crecca from the Company. Any termination of employment by Crecca for Good Reason shall
only become effective at least 30 (thirty) days after written notice to the Company from Crecca
specifying the basis for his belief that he has Good Reason to terminate his employment. If the
Company terminates the employment of Crecca other than for Cause and other than as a result of
death or Permanent Disability (as defined hereinafter) or if Crecca terminates his employment for
Good Reason (as hereinafter defined), the Company shall pay Crecca in full satisfaction of its
obligations to him the following amounts:

          i. (A) The Base Salary accrued to the date of termination of employment, and (B) any amounts
payable under all applicable Company plans or programs, determined pursuant to the terms of such
plans or programs, such amounts to be paid in full on the first business day of the month following
such termination (the amounts in Clauses (A) and (B), collectively, the “Accrued Amounts”); plus

          ii. A cash lump sum payment of pro rata Bonus, equal to the higher of the current year target
amount (i.e. target amount being 44% of current year Base Salary) of Bonus payable to Crecca or the
actual Bonus paid or payable for performance in the

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year prior to the year of termination, multiplied by a fraction the numerator of which is the
number of days from January 1 of the year of termination to the termination date and the
denominator of which is 365 (but without duplication of any Bonus payout for the year of
termination that is part of the Accrued Amounts), paid in full at the same date as payment is
required under clause (i) above; plus

          iii. A cash lump sum payment in respect of vacation days accrued according to the Company’s
rules to the date of termination that Crecca has not taken (the “Vacation Payment”), paid in full
at the same date as payment is required under clause (i) above, or on such earlier date as may be
required by law; plus

          iv. Payment for any unreimbursed Business Expenses, paid in full at the same date as payment
is required under clause (i) above; plus

          v. An additional amount (the “Termination Amount”) equal to two times the sum of (a) Crecca’s
Base Salary (calculated at the salary level in effect at the time of termination, as adjusted
pursuant to Section 2(a)), plus (b) the higher of the current year target amount of Bonus payable
to Crecca or the actual Bonus paid or payable for performance in the year prior to the year of
termination, plus (c) an amount equal to the annual cost of medical plan benefits under COBRA or
similar plan, payment of the Termination Amount being subject to the execution of a Release
pursuant to Section 10. The Termination Amount (less applicable taxes) shall be payable in one
lump sum within 30 days following the date of termination and receipt of the executed Release
pursuant to Section 10; plus

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          vi. Any amounts payable under the Noncompetition Agreement referenced in Section 6(b).

     (b) Definition of Good Reason. “Good Reason” shall mean (i) the failure of the
Company to pay any amount due under this Agreement; (ii) a material breach of this Agreement by the
Company; (iii) a meaningful diminution by the Company in the title, status, duties, powers,
responsibilities or authority of Crecca; (iv) the failure of any successor to the Company (through
merger or acquisition of assets or any other transaction that constitutes a Sale Event in which
liabilities of the Company of this nature are to be assumed) to assume and fully perform all of the
remaining obligations of the Company under this Agreement; or (v) the Company requires Crecca to
be based at any office more than ten miles from White Plains, New York; provided, however, that
none of the foregoing events or matters shall be deemed to constitute Good Reason if the Company
has, prior to the date of termination, fully cured and corrected the event or matter that would
have constituted Good Reason. In addition, Crecca may elect to terminate for “Good Reason” during
the period of 3 (three) months that begins 6 (six) months after a transaction or series of
transactions in which the persons who on the date of this Agreement beneficially owned the Common
Stock of the Company, the Class A Preferred Stock of the Company, and the Class B Preferred Stock
of the Company have, in the case of each such class of stock, ceased to beneficially own at least
50% of that class of stock and such persons, in the aggregate but regardless of whether acting as a
group, no longer beneficially own securities of the Company that enable them to effectively control
the Company through the power to elect at least 50% of the members of the Board of Directors (for
this purpose, “beneficially own” and related terms shall

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have the meaning ascribed to them under Section 13(d) of the Securities Exchange Act of 1934, as
amended).

     4. TERMINATION OF EMPLOYMENT DUE TO PERMANENT DISABILITY OR DEATH 

     If Crecca shall be unable to perform the essential functions of his employment hereunder, with
reasonable accommodation, because of illness, physical or mental disability or other incapacity for
a period of 180 days in any 365 consecutive day period, or upon diagnosis of a permanent or
complete disability (in either event, a “Permanent Disability”), the Company may terminate Crecca’s
employment 30 days after written notice to Crecca if Crecca has not resumed the full-time
performance of his duties before the end of such 30-day period. The existence of a Permanent
Disability shall be determined by a medical doctor reasonably acceptable to the Company and to
Crecca. Crecca’s employment shall end automatically upon Crecca’s death. Upon any termination for
Permanent Disability or death, the Company shall pay Crecca or Crecca’s estate in full satisfaction
of its obligations to him the Accrued Amounts, the Vacation Payment, any unreimbursed Business
Expenses, and a cash lump sum payment of pro rata Bonus equal to the current year target amount of
Bonus payable to Crecca multiplied by a fraction the numerator of which is the number of days from
January 1 of the year of termination to the termination date and the denominator of which is 365
(but without duplication of any Bonus payout for the year of termination that is part of the
Accrued Amounts). Payments under this Section 4 shall be made within 30 days after the termination
event, and amounts payable under the Noncompetition Agreement referenced in Section 6(b) shall be
payable in accordance with that Agreement.

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     5. TERMINATION OF EMPLOYMENT BY THE COMPANY FOR CAUSE OR BY CRECCA WITHOUT GOOD REASON 

     The Company may terminate Crecca’s employment for Cause and Crecca may terminate his
employment voluntarily without Good Reason, in each case subject to the notice requirement set
forth in this Section 5. If, within such notice period, the grounds for termination by the Company
for Cause are cured as expressly permitted hereunder, the notice of termination shall be void and
no termination pursuant to such notice shall occur.

     (a) Company Obligations. If the Company terminates Crecca’s employment for Cause, or
if Crecca terminates his employment without Good Reason, the Company shall pay Crecca in full
satisfaction of its obligations to him the Accrued Amounts, any unreimbursed Business Expenses,
plus Vacation Payment, plus, if termination is not by the Company for Cause, a cash lump sum
payment of pro rata Bonus equal to the current year target amount of Bonus payable to Crecca
multiplied by a fraction the numerator of which is the number of days from January 1 of the year of
termination to the termination date and the denominator of which is 365 (but without duplication of
any Bonus payout for the year of termination that is part of the Accrued Amounts). Payments under
this Section 5 shall be made within 30 days after the termination date. In addition, the Company
shall pay to Crecca any amounts payable under the Noncompetition Agreement referenced in Section
6(b) at the times specified in the Noncompetition Agreement.

     (b) Definition of Cause. “Cause” shall mean (i) any action by Crecca involving theft,
fraud, embezzlement or other act of similarly grave misconduct that results in significant damage
to the business or reputation of the Company; (ii) any

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material breach of the provisions of Section 6 of this Agreement by Crecca or any material breach
of any other material provision of this Agreement by Crecca; (iii) any action by Crecca involving
material malfeasance or material misconduct in connection with his employment, continuing failure
to perform any material duties hereunder, or failure to follow any lawful, reasonable and material
direction of the Chief Executive, President or Board of Directors of the Company; or (iv) Crecca’s
conviction of any felony that involves dishonesty, fraud, or moral turpitude.

     (c) Notice of Termination. Termination of employment for Cause shall be made by
delivering to Crecca a letter signed by a majority of the Board of Directors of the Company,
specifying, in factual detail, grounds for termination and providing Crecca with a 30-day period to
cure such grounds if cure is possible. If cure is not effected, termination shall be effective at
the end of the 30-day period, provided, however, that Crecca shall have the opportunity, if he so
desires, to place the matter before the Board of Directors of the Company, by means of a personal
appearance by him and his counsel, before such termination shall be effective. The Company and
Crecca agree that they both are obligated to conduct the in-person meeting contemplated herein
within 30 days of the notice of termination for Cause. Any termination of employment by Crecca
without Good Reason shall only become effective at least 30 (thirty) days after written notice to
the Company from Crecca.

     6. NONDISCLOSURE OF CONFIDENTIAL INFORMATION; NONCOMPETITION 

     (a) Nondisclosure. Crecca shall not at any time during or after his employment
hereunder, without the prior written consent of the Company, make any use

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of or disclose to any person or entity any Confidential Information, as defined herein, except (i)
while employed by the Company, in connection with the business of and for the benefit of the
Company or (ii) as required by law. “Confidential Information” shall mean material non-public
information concerning the Company’s financial data, strategic business plans, product development
(or other proprietary product data), customer lists, consignments, transactions, estimates,
marketing plans, personnel and compensation, and other material non-public proprietary or
confidential information of the Company, its affiliates or its customers or clients.
Notwithstanding the foregoing, subsequent to the termination of his employment with the Company,
Crecca may share with (i) potential investors in connection with starting a new business venture or
(ii) potential employers information by business unit concerning the acquisition price, historical
revenue data, EBITDA and net EBITDA.

     (b) Noncompetition. Crecca shall be subject to a Noncompetition Agreement, to be
embodied in a separate document to this Employment Agreement, and the Noncompetition Agreement,
when executed, shall be deemed a material term of this Employment Agreement. Payments to Crecca
for his entry into and performance under the Noncompetition Agreement shall be made as specified in
such Noncompetition Agreement.

     7. OBLIGATIONS ON TERMINATION. Upon the termination of Crecca’s employment under this
Agreement by either party, Crecca shall:

     (a) Within seven (7) days of a request from the Company resign from each and every office held
by him with Company. and his membership in any organization acquired by virtue of his employment
under this Agreement, and should he fail to do so

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he hereby irrevocably authorizes the Board of Directors of the Company in his name and on his
behalf to sign any documents and do any thing necessary or requisite to give effect thereto; and,

     (b) Deliver to the Company all property in his possession or under his control that belongs to
the Company including but not limited to keys, security and computer passes, computer hardware,
software and files, cellular phones and beepers, facsimile machines, modems, and all documents and
other records (whether on paper, magnetic tape, computer disk or in any other form and including
correspondence, lists of clients or customers, notes, memoranda, software, plans, drawings and
other documents and records of whatsoever nature and all copies thereof) made or compiled or
acquired by Crecca during his employment hereunder and concerning the business, finances or affairs
of the Company or its clients or customers. Notwithstanding the foregoing, Crecca shall be
entitled to retain the three laptop computers he currently utilizes, including standard software
programs contained on such laptop computers, but excluding any proprietary information of the
Company. For purposes of this provision 7(b), records containing the names, addresses and contact
information of persons collected in the course of Crecca’s employment under this Agreement shall
not be deemed proprietary information of the Company and Crecca is hereby authorized to retain a
copy of such records.

     8. NO MITIGATION OF DAMAGES OFFSET. Crecca shall not be required to mitigate any
amounts due Crecca provided under this Agreement by seeking other employment or otherwise. Any
payments made by the Company to Crecca after the termination of employment shall not be subject to
offset and shall not be reduced by any compensation Crecca receives from any subsequent employment.

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     9. NOTICES. All notices or communications hereunder shall be in writing, addressed as
follows:

To the Company:

Haights Cross Communications, LLC

10 New King Street

White Plans, NY 10604

with a copy to:

David F. Dietz, Esq.

Goodwin Procter LLP

Exchange Place

Boston, MA 02109-2881

To Crecca:

30 Oak Hill Drive

Wayne, NJ 07470

with copy to:

Steven Hall & Partners

645 Fifth Avenue

New York, New York 10022

Attn: Steven C. Root

Any such notice or communication shall be sent certified or registered mail, return receipt
requested, postage prepaid, addressed as above (or to such other address as such party may
designate in a notice duly delivered as described above), and such notice shall be deemed to be
given on the third business day after the actual date of mailing.

     10. RELEASE. Upon any termination of employment pursuant to Section 3 or 4, Crecca
agrees to enter into a Separation and Release Agreement, in the form attached hereto as Exhibit A,
of all his rights and obligations in respect of the Company, other than Crecca’s rights and
obligations under this Agreement and the Noncompetition Agreement. The Separation and Release
Agreement shall be entered into by Crecca within 5 business days after any termination of
employment pursuant to Section 3 or 4.

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Crecca (or, in the event of Crecca’s death or disability, his estate or personal representative)
shall be required to provide such Separation and Release Agreement to the Company and such
Separation and Release Agreement must become irrevocable before the Company shall be required to
make any payments to Crecca under Sections 3(a)(ii, 3(a)(v), 3(a)(vi), or the pro rate bonus
pursuant to Section 4 of this Agreement, or under Section 3 of Crecca’s Noncompetition Agreement,
and as a condition to the Company’s obligation to make such payments.

     11. SEVERABILITY AND WAIVER. If any provision of this Agreement shall be declared to
be invalid or unenforceable, in whole or in part, such invalidity or unenforceability shall not
affect the remaining provisions hereof, which shall remain in full force and effect. Failure to
insist upon strict compliance with any of the terms of this Agreement shall not be deemed a waiver
of such term unless such waiver is in writing signed by the party against whom it is asserted. Any
waiver of any right hereunder at any time shall not be deemed a waiver at any other time or times.

     12. LEGAL FEES. Each party shall bear its own legal fees and other fees and expenses
which may be incurred in enforcing its respective rights under this Agreement, except as provided
in this Section 12. In addition to the reimbursement of Crecca’s expenses provided under Section
2(f), all reasonable costs and expenses (including fees and disbursements of counsel) incurred by
Crecca in enforcing his rights pursuant to this Agreement shall be reimbursed to Crecca promptly by
the Company in the event that Crecca is successful in enforcing such rights.

     13. ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit of the
heirs and representatives of Crecca and the assigns and successors of the

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Company, but neither this Agreement nor any rights hereunder shall be assignable by Crecca (except
by will or by operation of the laws of intestate succession) or by the Company, except that the
Company may assign this Agreement to any affiliate or to any successor (whether by merger, purchase
or otherwise) to all or substantially all of the stock, assets or businesses of the Company, if
such affiliate or successor expressly agrees to assume the obligations of the Company hereunder
and, in the case of any assignment other than to an affiliate of the Company, Crecca consents to
such assumption, which consent shall not be unreasonably withheld.

     14. AMENDMENT. This Agreement may only be amended by a written agreement signed by
Crecca and the Company.

     15. SURVIVAL. The respective rights and obligations of the parties hereunder shall
survive any termination of this Agreement to the extent necessary to the intended preservation of
such rights and obligations.

     16. DISPUTE RESOLUTION. This Agreement shall be construed, interpreted and governed
in accordance with the laws of the State of New York, without reference to conflicts of law rules,
In the event of any dispute arising out of, under or relating to this Agreement, the parties shall
first endeavor in good faith to resolve such dispute by negotiation. In the event that they are
unable to do so, the parties shall enter into mediation using a mediator acceptable to both
parties. In the event that such mediation does not result in a settlement of the dispute, then the
parties hereby consent to arbitrate the dispute before the American Arbitration Association in New
York City.

     17. INTERPRETATION. The headings of Sections of this Agreement are for convenience of
reference only and are not intended to qualify the meanings of the

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Section. Any reference to a Section number shall refer to a Section of this Agreement, unless
otherwise stated.

     18. EFFECT ON PRIOR AGREEMENTS. This Agreement contains the entire understanding
between the parties hereto and supersedes in all respects any prior or other agreement or
understanding, whether oral or written, between the Company and Crecca with respect to Crecca’s
employment.

     19. TAX LAW COMPLIANCE.

     (a) Compliance with Code Section 409A. In the event that, as a result of Section 409A
of the Internal Revenue Code (the “Code”) (and any related regulations or other pronouncements),
any of the payments that Crecca is entitled to under the terms of this Agreement or any other plan
or arrangement of the Company involving deferred compensation (as defined under Code Section 409A)
may not be made at the time contemplated by the terms hereof or thereof without causing Crecca to
be subject to constructive receipt of income at a date prior to actual payment or an income tax
penalty or interest, and the timing of payment is the sole cause of such adverse tax consequences,
the Company will make such payment on the earliest date thereafter that a distribution could be
triggered under Code Section 409A without Crecca incurring such adverse tax consequences. In the
case of any payment triggered by termination of employment hereunder, in the event of any delay in
the payment date under this Section 19, the Company will adjust the payments to reflect the
deferred payment date by crediting interest thereon at the prime rate in effect at the time such
amount first would have been payable, as quoted by the Company’s principal lending bank. In
addition, other provisions of this Agreement or any other such plan or arrangement notwithstanding,
the

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Company shall have no right to accelerate or delay any such payment or to make any such payment as
the result of any specific event except to the extent permitted under Section 409A without
resulting in adverse tax consequences.

     (b) Golden Parachute Excise Tax. Other provisions of this Agreement the contrary
notwithstanding, to the extent that any of the payments and benefits provided for under this
Agreement or any other agreement or arrangement between the Company and Crecca (collectively, the
“Payments”) (i) constitute a “parachute payment” within the meaning of Section 280G of the Code
and (ii) but for this Section 19(b), would be subject to the excise tax imposed by Section 4999 of
the Code, then the Payments shall be payable either (i) in full or (ii) as to such lesser amount
which would result in no portion of such Payments being subject to excise tax under Section 4999 of
the Code; whichever of the foregoing amounts, taking into account the applicable federal, state and
local income taxes payable by Crecca and the excise tax imposed by Section 4999 payable by Crecca,
results in Crecca’s receipt on an after-tax basis of the greatest amount of economic benefits under
this Agreement, notwithstanding that all or some portion of such benefits may be taxable under
Section 4999 of the Code. Unless Crecca and the Company otherwise agree in writing, any
determination required under this Section shall be made in writing by independent advisors selected
by the Company (the “Advisors”), whose determination shall be conclusive and binding upon Crecca
and the Company for all purposes. For purposes of making the calculations required by this Section
19(b), the Advisors may make reasonable assumptions and approximations concerning applicable taxes
and may rely in reasonable, good faith interpretations concerning the application of Section 280G
and 4999 of the Code. The Company and Crecca shall furnish to the

16

 

Advisors such information and documents as the Advisors may reasonably request in order to
make a determination under this Section 19(b). If this Section 19(b) is applied to reduce an
amount payable to Crecca, and the Internal Revenue Service successfully asserts that, despite the
reduction, Crecca has nonetheless received payments which are in excess of the maximum amount that
could have been paid to him without being subjected to any excise tax, then, unless it would be
unlawful for the Company to make such a loan or similar extension of credit to Crecca, Crecca may
repay such excess amount to the Company as though such amount constitutes a loan to Crecca made at
the date of payment of such excess amount, bearing interest at the prime rate of the Company’s
principal lending bank.

     IN WITNESS WHEREOF, the parties have signed this Agreement as of the date and year first above
written.

	 	 	 	 	 
	 	HAIGHTS CROSS COMMUNICATIONS, INC.

 	 
	 	By:  	/s/ Christopher S. Gaffney
 	 
	 	 	Christopher S. Gaffney, Director 	 
	 	 	 	 
	 
	 	 	 
	 	                                                  /s/ Paul J. Crecca
 	 
	 	Paul J. Crecca 	 
	 	 	 
	 

17

 

EXHIBIT A

Haights Cross Communications, Inc.

Separation and Release Agreement

On ___, 20___this Separation and Release Agreement (the “Release”) by and between NAME
(“Employee”), on the one hand and Haights Cross Communications, Inc. (the “Company”) on the other
hand, is presented to Employee. The Release, executed on the date specified below (the date of
execution by the Employee hereinafter referred to as the “Execution Date”), shall be in full force
and effect as of the Effective Date (as defined below).

RECITAL

Employee and Company desire to reach a mutual understanding and acceptance of the terms and
conditions related to Employee’s separation from employment with Company.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained it is hereby
agreed as follows:

     1. Employee shall cease to be an employee of Company as of                     , 20      (the “Separation
Date”).

     2. In consideration of Employee’s accepting and not revoking this Release, Employee shall be
entitled to receive certain amounts payable in accordance with Section 3(a)(ii), 3(a)(v), 3(a)(vi)
and 4 of the Employee’s Employment Agreement dated January 1, 2007 (the “Employment Agreement”) and
Section 3 of the Noncompetition Agreement referenced in Section 7(b) of the Employment Agreement
(the “Noncompetition Agreement”), which amounts would not be due him if he did not execute this
Release.

     3. Employee agrees that the Company is authorized to open any and all business mail addressed
to Employee at the Company’s address. Employee further understands that the Company will not be
responsible for forwarding mail.

     4. Release 

	 	(a)	 	In consideration for, among other things, certain payments under
Section 3(a)(ii), 3(a)(v), 3(a)(vi) and the pro rata bonus pursuant to Section 4 of
the Employment Agreement and Section 3 of the Noncompetition Agreement, Employee,
for himself, his agents, legal representatives, assigns, heirs, distributes,
devisees, legatees, administrators, personal representatives and executors
(collectively, the “Releasing Parties”), hereby releases and discharges the Company
and its present and past subsidiaries and affiliates, its and their respective
successors and assigns, and the present and past

 

 

	 	 	 	shareholders, officers, directors, employees, agents and representatives of each
of the foregoing (collectively, the “Releasees”), from any and all claims,
demands, actions, liabilities and other claims for relief and remuneration
whatsoever, whether known or unknown, from the beginning of the world to the
date Employee signs this Release, excluding any and all claims, demands,
actions, liabilities and other claims for relief and remuneration under the
Employment Agreement and the Noncompetition Agreement, but otherwise including,
without limitation, any claims arising out of or relating to Employee’s
employment with and termination of employment from the Company, for wrongful
discharge, for breach of contract, for discrimination or retaliation under any
federal, state or local fair employment practices laws, including, Title VII of
the Civil Rights Act of 1964 (as amended by the Civil Rights Act of 1991), the
Family and Medical Leave Act, the Americans with Disabilities Act, the Age
Discrimination in Employment Act, for defamation or other torts, for wages,
bonuses, incentive compensation, stock, stock options, vacation pay or any other
compensation or benefit and any claims under any tort or contract (express or
implied) theory, and any of the claims, matters and issues which could have been
asserted by the Releasing Parties against the Released Parties in any legal,
administrative or other proceeding in any jurisdiction.

	 	(b)	 	Employee further agrees not seek or accept any damages or relief for
his own benefit, including attorneys’ fees or costs, with respect to any claims
released by the language above; however, Employee shall have the right to seek
recovery of any costs incurred, including attorney fees and costs, in enforcing
his rights under the Employment Agreement and Noncompetition Agreement in
accordance with Section 13 of the Employment Agreement.

     5. It is understood and agreed that, with the exception of all obligations of the Company
under the Employment Agreement, the Noncompetition Agreement, and Section 3(b) of this Release, all
which shall remain fully binding and in full effect subsequent to the execution of this Release,
the release set forth in the preceding Section is intended as and shall be deemed to be a full and
complete release of any and all claims that Employee may or might have against Releasees, or any of
them, arising out of any occurrence arising on or before the Execution Date and said release is
intended to cover and does cover any and all future damages not now known to Employee or which may
later develop or be discovered, including all causes of action therefore and arising out of or in
connection with any occurrence arising on or before the Execution Date.

     6. By signing and returning this Release, Employee acknowledges that Employee:

	 	(a)	 	has carefully read and fully understands the terms of this Release;

	 	(b)	 	is entering into this Release voluntarily and knowing that Employee is
releasing claims that Employee has or believes Employee may have against Company;
and

2

 

	 	(c)	 	has hereby been advised by the Company to consult with an attorney of
Employee’s choosing about the terms of this Release prior to signing this Release.

     7. Return of Property

	 	(a)	 	Employee agrees to return all Company property in Employee’s possession
to Company immediately, except as otherwise provided in the Employment Agreement.
Employee acknowledges receipt and agrees to the terms of the Notice on Conclusion
of Employment, attached hereto as Exhibit “A.” The terms of Exhibit “A” are
incorporated herein and any violation of Exhibit A shall be deemed a material
violation of this Release.

	 	(b)	 	Should Employee violate any of his obligations under paragraph 7(a) of
this Release (including Exhibit A), or his obligations under Section 6 of his
Employment Agreement or Section 2 of his Noncompetition Agreement, the Company may
cease the making payments and continuing benefits to the extent provided in the
Employment Agreement and Noncompetition Agreement without in anyway affecting the
continuing validity of the release set forth in paragraph 4 of this Release.
Employee agrees that restrictions contained in paragraph 7(a) (including Exhibit A)
are necessary to protect the business of the Company and are considered reasonable
for such purposes. Employee agrees that any breach of any provision of paragraph
7(a) (including Exhibit A), Section 6 of the Employment Agreement or Section 2 of
the Noncompetition Agreement may cause the Company substantial and irreparable
damages which are difficult to measure. Therefore, in the event of any such breach
or threatened breach, Employee agrees that, in addition to all other rights and
remedies, the Company shall have the right to immediate injunctive relief.

     8. Employee agrees and understands that neither the content nor the execution of this Release
shall constitute or be construed as any implied or actual admission by Company of any liability to
or of the validity of any claim by Employee that that the Company engaged in any wrongdoing.

     9. Employee hereby represents and agrees that in entering into this Release, Employee has
relied solely upon Employee’s own judgment, belief and knowledge and Employee’s own legal and other
professional advisors and that no statement made by or on behalf of Company has in any way
influenced Employee in such regard.

     10. Employee hereby represents and warrants to Company that Employee has not assigned any
claim that Employee may or might have against Company, from which the Company would otherwise be
released pursuant to this Release, to any third party.

     11. Each party shall pay its own attorneys’ fees, costs and expenses related to this
Separation and Release Agreement, except as provided in paragraph 4(b).

3

 

     12. This Release shall be governed by and construed in accordance with the laws of the State
of New York, without giving effect to conflict of laws principles.

     13. It is agreed by each of the parties hereto that they have read the above and fully
understand the terms of this Release which they voluntarily execute in good faith and deem to be a
full and equitable settlement of this matter.

     14. The provisions of this Release are severable. If any provision of this Release is
declared invalid or unenforceable, any court of competent jurisdiction reviewing such provision
shall enforce the provision to the maximum extent permissible under applicable law. Any ruling
will not affect the validity and enforceability of any other provision of the Release.

     15. Employee acknowledges that he has been given the opportunity to consider this Release
before signing it. For a period of seven (7) days from the date Employee signs this Release,
Employee has the right to revoke this Release by written notice to the undersigned. This Release
shall not become effective or enforceable until the expiration of the revocation period. This
Release shall become effective on the first business day following the expiration of the revocation
period (the “Effective Date”).

     Employee is advised to consult with an attorney before signing this Release. The foregoing is
agreed to and accepted by:

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Dated:
	 	 	 	 
	 

	 	 
	 	 	 	 

	 	 

Agreed and Accepted for Haights Cross Communications, Inc:

	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 
	 	Dated:
	 	 
	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 

4

 

EXHIBIT “A”

NOTICE ON CONCLUSION OF EMPLOYMENT

In connection with the conclusion of employment with Haights Cross Communications, Inc. and/or its
subsidiaries and affiliates (“Company”), each employee has an obligation to surrender and return to
Company all mail, files, records, manuals, books, blank forms, tapes, discs, photographs,
negatives, documents, letters, memoranda, notes, notebooks, materials, property, reports, data
tables, calculations, information or copies thereof, which are the property of Company or which
relate in any way to the business, products, practices or techniques of Company and all other
property, trade secrets or confidential information of Company and any third parties with whom it
deals, including but not limited to, all keys, passwords, combinations and documents which in any
of these cases are in the employee’s possession or under the employee’s control. After returning
all property to the Company, each employee must delete and finally purge files with Company
information from any personal computer or device that remains in the employee’s possession or
control after the employee’s Separation Date.

The employee also has a continuing obligation to preserve as CONFIDENTIAL and refrain from using
Confidential Information, in accordance with the terms of his Employment Agreement.

5

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