Document:

exv10w35

Exhibit 10.35

AMENDMENT OF

PRO QUEST COMPANY REPLACEMENT BENEFIT PLAN

     WHEREAS, Voyager Learning Company (the “company”) maintains the Pro Quest Company Replacement
Benefit 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 4
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 B

To

PRO QUEST COMPANY REPLACEMENT BENEFIT 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 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.

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     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 B form a part of the plan and shall supersede conflicting
provisions of the plan.

SUPPLEMENT C

To

PRO QUEST COMPANY REPLACEMENT BENEFIT PLAN

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

     On and after November 5, 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 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

2

 

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.

     (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,

3

 

	 	(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 specific 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.

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

     (a) In general if:

4

 

	 	(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:

	 	(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

5

 

	 	 	 	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.

     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.

6

 

*     *     *

     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 REPLACEMENT BENEFIT PLAN

(As Amended and Restated Effective as of January 1, 1991)

          WHEREAS, Bell & Howell Company (the “company”) maintains Bell & Howell Company Replacement
Benefit Plan (the “plan”); and

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

          NOW, THEREFORE, by virtue of the power granted to the company under Section 4 of the plan, and
in exercise of the authority delegated to the undersigned officer by resolution of the Board of
Directors, the plan, as previously amended, be and is hereby further
amended, in the following particulars:

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

“Notwithstanding anything to the contrary herein, no employee who does not have an account under
the plan on December 31, 2000 shall become a participant after that date. With respect to the
employees listed on Appendix A, no further participant contributions pursuant to subsection 2.4
shall be permitted after December 31, 2000, and no employer contributions shall be made for periods
beginning after December 31, 2000.”

          2. Effective October 1, 2000, by substituting the following for subsection 2.5 of the plan:

          “2.5 Adjustment of Accounts

 

 

     According to rules established by the plan administrator, the accounts of each participant
shall be adjusted at the same time as adjustments are made in the profit sharing plan to reflect a
rate of return equal to 120% of the 120 month rolling average of
10 year U.S. Treasury Notes (or
such higher rate of return as the company determines in its sole discretion), which rate of return
shall be determined each October 31 for the subsequent calendar year, except that the rate of
return for the period beginning on October 1, 2000 and ending on December 31, 2000 shall be 8.0%.”

     3. Effective January 1, 2001, by adding the following new subsection 3.11 to the plan
immediately following subsection 3.10 thereof:

     “3.11 Change in Control

In the event of a change in control of the company, the employers 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 mean the occurrence of any of the
following events, as a result of one transaction or a series of transactions:

	 	(a)	 	any ‘person’ (as that term is used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934, but excluding the company and any qualified or non-qualified plan maintained by the
company) becomes the ‘beneficial owner’ (as defined in Rule 13d-3 promulgated under such Act),
directly or indirectly, of securities of the company representing more than 50% of the
combined voting power of the company’s then outstanding securities;
	 
	 	(b)	 	individuals who constitute a majority of the Board of Directors of the company immediately
prior to a contested election for positions on the Board cease to constitute a majority as a
result of such contested election;
	 
	 	(c)	 	the company is combined (by merger, share exchange, consolidation, or otherwise) with another
corporation and as a result of such combination, less than 50% of the outstanding securities
of the surviving or resulting

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	 	 	 	corporation are owned in the aggregate by the former shareholders of the company; or

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

          IN WITNESS WHEREOF, the company has caused this amendment to be executed by its officer
thereunto duly authorized this 21 day of December, 2000.

	 	 	 	 	 	 	 
	 

	 	 	 	BELL & HOWELL COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ James P. Roemer	 	 
	 

	 	 	 	 

James P. Roemer
	 	 
	 

	 	 	 	Chairman, President and Chief
Executive Officer	 	 

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	 	APPENDIX A
	 	 
	 
	 	 	 	 
	 

	 	Aldworth, Alan W.	 	 
	 

	 	Buchardt, Todd W.	 	 
	 

	 	Longo-Kazanova, Linda	 	 
	 

	 	Mater, Dwight A.	 	 
	 

	 	Rhoades, Bruce E.	 	 
	 

	 	Roemer, James P.
	 	 
	 

	 	Johnson, Paul R.	 	 
	 

	 	Musacchia, Jacqueline A.	 	 
	 

	 	Prince, Larry D.	 	 
	 

	 	Rotuno, Charles E.	 	 
	 

	 	Seichter, Rudolf F.	 	 
	 

	 	Barcelona, James D.	 	 
	 

	 	Dyer, Carolyn A.	 	 
	 

	 	Gossage, Lew D.	 	 
	 

	 	Hamilton, Thomas M.	 	 
	 

	 	Hirth, Scott D.
	 	 
	 

	 	Reynolds, Joseph P.	 	 
	 

	 	Rood, Paul	 	 
	 

	 	Tillman, Kenneth A.	 	 
	 

	 	Gregory, Kevin	 	 
	 

	 	Baracz, Jerome E.	 	 

A-1

 

SECOND AMENDMENT

OF 

BELL & HOWELL COMPANY REPLACEMENT BENEFIT PLAN

(As Amended and Restated Effective as of January 1, 1991)

          WHEREAS, Bell & Howell Company (the “company”) maintains Bell & Howell Company
Replacement Benefit Plan (the “plan”); and

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

          NOW,
THEREFORE, by virtue of the power granted to the company under
 Section 4 of the plan, and in exercise of the authority delegated to the undersigned
officer by resolution of the Board of Directors, the plan, as previously amended, be and is
hereby further amended in the following particulars:

          1. By inserting the following new sentences immediately after the first sentence
of subsection 1.1 of the plan, effective as of December 15, 1997:

“Bell & Howell Company became known as Bell & Howell Operating Company on
November 16, 1995, and Bell & Howell Operating Company became known as Bell &
Howell Company on December 15, 1997. All references herein to the ‘company’
mean Bell & Howell Company prior to November 16, 1995, Bell & Howell Operating
Company from November 16, 1995 until December 14, 1997, and Bell & Howell
Company on and after December 15, 1997.”

 

 

          2. By substituting the following for subsection 2.5 of the plan, effective October 1, 2000:

          “2.5 Adjustment of Accounts

     According to rules established by the plan administrator, the accounts of each
participant shall be adjusted at the same time as adjustments are made in the profit
sharing plan to reflect a rate of return equal to 120% of the 120 month rolling
average of 10 year U.S. Treasury Notes (or such higher rate of return as the company
determines in its sole discretion), which rate of return shall be determined each
December 31 for the subsequent calendar year, except that the rate of return for the
period beginning on October 1, 2000 and ending on December 31, 2000 shall be 8.0%.”

          3. By substituting the following for subsection 2.8 of the plan, effective as of January 1,
2000:

          “2.8 Payment of Replacement Benefits

     If a participant separates from service with the employers, the participant’s
replacement benefits shall be paid to him in installments over a period of
five years, unless the participant had filed with the plan administrator, in
accordance with such rules as shall be established by the administrator, an
irrevocable election of an installment period of either 10 years or 15 years, or a
lump sum payment. A participant whose total balances under this plan, valued as of the
adjustment date coincident with or next following the date of his separation from
service with the employers, exceed $5,000, may elect to defer payment of his account
balances until the date be attains age 70, provided that all of a participant’s
account balances must be paid out on or before the date he attains age 75.
Notwithstanding any other provision of the plan, if, at any adjustment date, the value
of the total balances under this plan of a participant whose separation from service
with the employers has occurred (or of the beneficiary of a deceased participant) does
not then exceed $5,000, the plan administrator may direct the immediate distribution
of such account balances in the form of a single lump sum payment.”

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          4. By substituting the number “$25,000” for the number $5,000” where the latter number appears
in subsection 2.8 of the plan, effective January 1, 2001.

          5. By substituting the following for the first sentence of subsection 2.9 of the plan,
effective as of January 1, 2000:

“A participant who is no longer actively employed by a Bell & Howell Company (as that
term is defined in the profit sharing plan) may request a ‘non-active withdrawal’ of
any part or all of his account balances under the plan in the event of unforeseeable
financial hardship.”

          IN WITNESS WHEREOF, the company has caused this amendment to be executed by its officer
thereunto duly authorized this 27 day of
September, 2000.

	 	 	 	 	 	 	 
	 

	 	 	 	BELL & HOWELL COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ James P. Roemer	 	 
	 

	 	 	 	 

James P. Roemer
	 	 
	 

	 	 	 	Chairman, President and Chief
Executive Officer	 	 

-3-

 

FIRST AMENDMENT

OF

BELL & HOWELL COMPANY REPLACEMENT BENEFIT PLAN

(As amended and restated effective as of January 1, 1991)

          WHEREAS, Bell & Howell Company (the “company”) maintains BELL & HOWELL COMPANY REPLACEMENT
BENEFIT PLAN, as amended and restated effective as of January 1, 1991 (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 4 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 in the following
particulars, effective as of November 1, 1993:

          1. By substituting the following new sentence for the second sentence of subsection 2.8 of
the plan:

“A participant whose total balances under this plan, valued as of the adjustment
date coincident with or next following his settlement date under the profit sharing
plan, equal or exceed $3,500, may elect to defer payment of his account balances
until the date he attains age 70-1/2.”

          2. By renumbering subsection 2.9 as subsection 2.10, and inserting the following new
subsection 2.9 immediately after subsection 2.8 of the plan:

“2.9. Non-Active Withdrawals. A participant who is no longer actively employed by
a Bell & Howell Company (as that term is defined in the profit sharing plan) may

 

 

request a ‘non-active withdrawal’ of any part or all of his account balances under the plan
for any reason. A participant may elect to make only one non-active withdrawal in any calendar
year. The participant’s request must be made by written application filed with the plan
administrator. Payment of the amount of the non-active withdrawal requested by a participant, if
approved, will be made pursuant to and in accordance with rules established by the plan
administrator and uniformly applied to participants similarly situated.”

          3. By adding the following new subsection 3.10 to the plan immediately after subsection
3.9 thereof:

“3.10. 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 will afford
such participant, beneficiary or other person a full and fair review of the plan
administrator’s decision, if so requested, in a manner that conforms to the
requirements of Dept. of Labor Reg. Sec. 2560.503-1.”

*           *           *

          IN WITNESS WHEREOF, the undersigned has executed this
amendment on behalf of the company this 11th day of January, 1994.

	 	 	 	 	 	 	 
	 	 	BELL & HOWELL COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ [ILLEGIBLE]	 	 
	 

	 	 	 	 

Its President, Chairman & CEO
	 	 

-2-

 

AMENDMENT AND RESTATEMENT OF

BELL & HOWELL COMPANY REPLACEMENT BENEFIT PLAN

WHEREAS, Bell & Howell Company (the “company”) maintains the Bell & Howell Company Replacement
Benefit Plan (the “plan”) to provide benefits under the plan for designated employees that would be
provided under Bell & Howell Profit Sharing Retirement Plan (the “profit sharing plan”) but for the
limitations imposed by Sections 402(g) and 415 of the Internal Revenue Code (the “Code”), and but
for participants’ elections to defer compensation under the Bell & Howell Company Deferred
Compensation Plan; and

WHEREAS, pursuant to a resolution adopted by the Board of Directors of the company, the officers of
the company were authorized and directed to amend the plan to provide for full vesting of
participants’ accounts, to provide for payment in a lump sum, and to provide benefits to designated
employees that would be provided under the profit sharing plan but for the nondiscrimination
requirements of Sections 401(k) and 401(m) of the Code and the limitations on compensation imposed
by Section 401(a)(17) of the Code; and

WHEREAS, the officers of the company have caused such an amendment of the plan to be
prepared in the form of a restatement of the entire plan, a copy of which is attached
hereto;

NOW, THEREFORE, pursuant to the authority delegated to the undersigned officers of the company by
said resolution, Bell & Howell Company Replacement Benefit Plan be and is amended and restated by
the company in the form attached hereto effective as of January 1, 1991.

Dated this 12th day of November, 1992.

	 	 	 	 	 	 	 
	 	 	BELL & HOWELL COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ [ILLEGIBLE]	 	 
	 

	 	 	 	 

Its Sr VP & CFO
	 	 

ATTEST:

	 	 	 
	/s/
[ILLEGIBLE]
	 	 
	 

Its Secretary

	 	 
	 
	 	 
	(Seal)
	 	 

 

 

BELL & HOWELL COMPANY REPLACEMENT BENEFIT PLAN 

(As amended and restated effective as of January 1, 1991)

McDermott, Will & Emery

Chicago

 

 

BELL & HOWELL COMPANY REPLACEMENT BENEFIT PLAN 

(As amended and restated effective as of January 1, 1991)

SECTION 1

Introduction

1.1. The Plan and Its Effective Date. BELL & HOWELL COMPANY REPLACEMENT BENEFIT
PLAN (“the plan”) was established by BELL & HOWELL COMPANY (the “company”), effective as of January
1, 1983. The plan has previously been amended and restated and the provisions of this subsection
and the following provisions constitute an amendment and restatement of the plan, as previously
amended, effective as of January 1, 1991 (the “effective date”).

 1.2. Purpose. The company maintains the Bell & Howell Profit Sharing
Retirement Plan (the “profit sharing plan”), which is intended to meet the requirements of a
“qualified plan” under Section 401(a) of the Internal Revenue Code (the “Code”). The Code places
limitations on the amount of contributions that may be made by or on behalf of highly compensated
employees to the profit sharing plan. However, the Act permits the payment under a non-qualified
“excess benefit plan” of amounts that may not be contributed to a qualified plan because of such
limitations. The purpose of this plan is to provide certain benefits for a select group of highly
compensated employees to replace amounts that may not be contributed under the profit sharing plan.

1.3. Plan Administration. The administration of the plan is the sole
responsibility of the company (the “plan administrator”).

SECTION 2

 Participation and Replacement Benefits

2.1. Eligibility. Subject to the conditions and limitations of the plan, an employee of
the company or any other employer (as defined in the profit sharing plan) who is a participant in
the profit sharing plan is eligible to participate in the plan and may become entitled to benefits
payable hereunder (“replacement benefits”) if he is designated by the plan administrator as a
“covered employee” under the plan and his contri-

 

 

butions or contributions payable on his behalf are limited or reduced to comply with Code
requirements. To be designated a covered employee, an employee must be a member of a select
group of management or highly compensated employees as defined in Title I of the Employee
Retirement Income Security Act of 1974 and any regulations thereunder.

2.2.
Election to Participate. Each eligible employee may
elect to participate in the plan by signing and filing an election form furnished by the
plan administrator. The election form must be signed and filed prior
to January 1 of each
year that the employee elects to participate in the plan. If an eligible employee does not
file an election form prior to January 1, the employee may not enroll in the plan until
January 1 of the following year. Once an election form has been signed and filed, it may
not be revoked until January 1 of the year following the year for which the election was
made.

2.3. Employer Account. Section 415 of the Code limits the amount of
contributions (including both participant and employer contributions) that may be credited
annually to an employee’s account under the profit sharing plan to the lesser of $30,000 or
25% of compensation. In addition, Section 401(a)(17) of the Code requires the exclusion of
compensation in excess of $200,000 (indexed for inflation) in calculating contributions
under that plan. The nondiscrimination test under Section 401(m) of the Code may also
reduce the amounts that may be credited to an employee’s profit sharing plan account. For
each plan year commencing on or after the effective date there shall be added to a
participant’s “employer account” for that plan year an amount equal to the sum of:

	 	(a)	 	the difference, if any, between (i) the
amount of employer contributions actually allocated to his employer
contributions account under the profit sharing plan for that plan
year and (ii) the amount of employer contributions that would have
been allocated to his employer contributions account under the
profit sharing plan for that plan year if the limitations of
Section 415 of the Code did not apply to the participant or the
nondiscrimination test under Section 401(m) of the Code did not
reduce amounts that would otherwise have been credited to that
participant for that plan year; and
	 
	 	(b)	 	an amount equal to the product obtained by
multiplying the number of additional al-

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	 	 	 	location units the participant would have been entitled to under the
profit sharing plan for that plan year if Section 401(a) (17) of the
Code did not apply to the participant for that plan year by the actual
unit value of the allocation units credited to that participant for
that plan year under the profit sharing plan.

All additions to a participant’s “employer account” required to be made under the plan for plan
years (as defined in the profit sharing plan) ending prior to the effective date have been made.

2.4. Participant Account. Before-tax contributions to the profit sharing plan may not
exceed the dollar limitation specified in Section 402(g) of the Code of $7,000 per year (indexed
for inflation). The nondiscrimination test under Section 401(k) of the Code, as well as the
restrictions of Section 415 described above, may also limit a participant’s before-tax
contributions to the profit sharing plan. If, as a result of those restrictions, a participant is
limited in the amount of before-tax contributions he may make under the profit sharing plan
pursuant to a compensation deferral arrangement, he may (but need not) elect to have additions made
to his participant account under the plan pursuant to this subsection 2.4. For each plan year
commencing on or after the effective date there shall be added to the “participant account” of each
participant under the plan so electing during that plan year an amount equal to the difference, if
any, between:

	 	(a)	 	the amount of his participant contributions (both
mandatory and voluntary) actually made under the profit sharing plan
during that plan year; and
	 
	 	(b)	 	the amount of participant contributions he would have
made under the profit sharing plan during such plan year if the
limitations of Sections 402(g) or 415 of the Code did not apply to that
participant for that plan year or if his contributions were not limited
or reduced based on the nondiscrimination test under Section 401(k) of
the Code;

but only to the extent his compensation for such plan year is actually reduced by an amount
representing such difference. The amount by which a participant’s compensation is so reduced shall
become part of the company’s general operating assets. All additions to a participant’s
“participant account” required

-3-

 

to be made under the plan for plan years (as defined in the profit sharing plan) ending prior to
the effective date have been made.

2.5. Adjustment of Accounts. According to rules established
by the plan administrator, the accounts of each participant shall be adjusted at the same time as adjustments are made in
the profit sharing plan to reflect the investment results which would have been achieved if the corresponding amounts had been
contributed to the profit sharing plan (or a successor plan) instead of being added to the participant’s accounts hereunder.

2.6. Account Statements. According to rules established by
the plan administrator, each participant shall receive a
statement describing any additions to and adjustment of the participant’s accounts pursuant to
subsections 2.3, 2.4 and 2.5.

2.7. Amount of Replacement Benefits. As of the effective date, the replacement benefits
payable to a participant or to his beneficiary shall be the entire balances of his employer and
participant accounts.

2.8. Payment of Replacement Benefits. The replacement
benefits that a participant becomes entitled to receive under the
plan shall be paid to him, or in the event of his death to his
beneficiary, in a single lump sum payment as soon as
practicable after his settlement date under the profit sharing plan. A participant may, however,
elect to defer payment of his account balances until the date he attains age 70-1/2.

2.9. Funding. Benefits payable under the plan to a
participant or his beneficiary shall be paid directly by the company. The company shall not be
required to segregate on its books or otherwise any amount to be used for payment of benefits under
the plan. The right of a participant or his beneficiary to any benefits payable under the plan
shall be the right of a general creditor of the company.

SECTION 3

General Provisions

3.1. Beneficiary. A participant’s “beneficiary” under the plan means any person or
persons who become entitled to benefits under the profit sharing plan because of the participant’s

 -4-

 

death, unless the participant designates another person or persons as his beneficiaries
hereunder.

3.2. Employment Rights. Establishment of the plan shall not
be construed to give any participant the right to be retained
in the company’s or any other employer’s service or to any
benefits or payments not specifically provided by the plan.

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

3.4. Controlling Law. The laws of Illinois shall be controlling in all matters relating to the plan.

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

3.6. Action by the Company. Any action required of or
permitted by the company under the plan shall be by resolution of
its Board of Directors or any person or persons authorized by
resolution of its Board of Directors.

3.7. Successor to the Company. The term “company” as used in
the plan shall 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.

3.8. 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.

3.9. Plan Administrator’s Discretionary Authority. The plan
administrator has the specific power to determine within its
complete discretion all questions arising under the plan,
including the power to determine the rights or eligibility of

 -5-

 

employees or participants and any other persons, and the
amounts of replacement benefits, and to remedy ambiguities, inconsistencies or
omissions.

SECTION 4

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; provided,
however, that no amendment of the plan nor the termination of the
plan may (a) cause the
reduction of any benefits that would be payable under this plan prior to the date on which
such amendment is made by the company or the plan is terminated by the company, other than a
reduction due to the adjustment of accounts as provided in subsection 2.5, or (b) eliminate
the right of a participant or beneficiary to have his accounts adjusted as provided in
subsection 2.5.

 -6-exv10w36

Exhibit 10.36

AMENDMENT TO EMPLOYMENT AGREEMENT

     This Amendment to Employment Agreement (the “Amendment”), dated as of the 7th day of
August, 2009, is made by and between Cambium-Voyager Holdings, Inc. (the “Corporation”),
Voyager Learning Company (“Voyager”) and Ron Klausner (the “Executive”).

WITNESSETH THAT:

     WHEREAS, Voyager and the Executive are parties to an Employment Agreement, originally dated as
of May 7, 2007, and as amended and restated as of April 9, 2009 (as amended, the “Employment
Agreement”); and

     WHEREAS, Voyager has entered into that certain Agreement and Plan of Mergers, by and among
Voyager, the Corporation, Vowel Acquisition Corp., VSS-Consonant Holdings II Corp., Consonant
Acquisition Corp., and certain other entities signatory thereto (the “Merger Agreement”);
and

     WHEREAS, in connection with the Mergers (as defined in the Merger Agreement), Voyager shall
become a wholly owned subsidiary of the Corporation; and

     WHEREAS, subject to and contingent upon the consummation of the Mergers, the Corporation and
the Executive mutually desire the Executive to serve as the Chief Executive Officer of the
Corporation, pursuant to the terms of the Employment Agreement, as amended hereby; and

     WHEREAS, as provided in the Merger Agreement, certain amounts shall be deposited into the
Voyager Learning Company Executive and Deferred Benefit Trust (the “Rabbi Trust”) for the
benefit of the Executive, all of which amounts shall be paid from the Rabbi Trust to the Executive
solely to the extent provided for hereunder; and

     WHEREAS, subject to and contingent upon the consummation of the Mergers, in order to
facilitate the foregoing, the Corporation, Voyager and the Executive desire to amend the Employment
Agreement in certain respects on the terms and conditions set forth herein.

     NOW THEREFORE, in consideration of the foregoing premises and for other good and valuable
consideration the receipt of which is hereby acknowledged, the Corporation, Voyager and the
Executive hereby agree as follows:

     1. Sections 2 through and including Section 9 of this Amendment are subject to
and contingent upon the consummation of the Mergers, and such sections shall become effective only
as of the Effective Time (as defined in the Merger Agreement). If the Merger Agreement is
terminated for any reason, then this Amendment shall be void ab initio.

     2. At the Effective Time, Voyager hereby transfers and assigns the Employment Agreement, as
amended hereby, and all liabilities and obligations thereunder (excluding the payment obligations
referenced in Section 4 and Section 8 below which shall be retained by the Rabbi Trust and Voyager
as provided in such sections), to the Corporation, the Corporation hereby acknowledges and accepts
such transfer and assignment, and the Executive hereby consents to such transfer and assignment.
All references to the “Company” set forth in the Employment Agreement shall mean the Corporation.
Capitalized terms used in this Amendment but not defined herein shall have the meanings set forth
in the Employment Agreement.

     3. During the Executive’s employment with Corporation from and after the Effective Time,
pursuant to the Employment Agreement as amended hereby, the Executive shall serve the Corporation
as

 

 

its Chief Executive Officer, and shall report directly to the Board of Directors of the
Corporation (the “Board”) and, if any, to the non-executive chairman of the Board. At the
Effective Time, the Executive shall be elected to serve as a member of the Board. Following the
Effective Time and so long as the Executive
remains employed by the Corporation as Chief Executive Officer, the Executive shall be nominated by
the Corporation for election to the Board in accordance with the Corporation’s governance policies
and applicable law; provided, that, Executive’s continuing service as a member of
the Board shall remain subject to election by the Corporation’s stockholders in accordance with the
Corporation’s governance policies and applicable law. In the event the Executive’s employment with
the Corporation shall terminate for any reason whatsoever (including without limitation, at the End
Date, as defined below), the Executive agrees that he shall immediately resign his position as a
member of the Board, and each other position that he then holds with the Corporation or any of its
affiliates. If the Executive shall fail to so resign, then such failure shall constitute Cause, and
the Board shall thereupon have the right to remove the Executive from all such positions without
further action, deed or notice.

     4. Notwithstanding Sections 2(b) and 2(c) of the Employment Agreement, with respect to
calendar year 2010 and subsequent years during which the Executive remains employed and eligible
for a bonus, his bonus range shall be 0% to a maximum of 140% of Base Salary, with a target level
of 70% of Base Salary, and all determinations relating to the Executive’s annual bonus
opportunities and payments within such range shall be made by the Compensation Committee of the
Board (the “Committee”) in its sole and absolute discretion, including with respect to any
applicable performance goals, the Board-approved budget for such year, and the Executive’s
achievement of other goals set by the Committee for such year (“Post 2009 Annual Bonus”).
The Executive and the Corporation acknowledge that the Executive’s regular annual bonus in respect
of calendar year 2009 shall be paid by the trustee of the Rabbi Trust from the Rabbi Trust and only
secondarily from Voyager if the Rabbi Trust cannot or does not pay in full (subject to the terms of
the Rabbi Trust). Such payment shall be made at the same time bonuses are paid to other senior
executives, but no later than March 14, 2010. In addition, if both the Effective Time occurs and
the Executive remains continuously employed with the Corporation through the date which is six
months immediately following the Effective Time (the “2009 Bonus Date”), then the Executive
shall be paid from the Rabbi Trust, and only secondarily from Voyager if the Rabbi Trust cannot or
does not pay in full (subject to the terms of the Rabbi Trust), a bonus equal to the excess of
$751,906 over the amount of the regular annual bonus already paid to Executive in respect of
calendar year 2009, if any, as provided in the preceding provisions of this paragraph, which excess
amount shall be paid on the 2009 Bonus Date (the “2009 Bonus”); provided,
however, if the Corporation terminates the Executive without Cause or in the event he
resigns for Good Reason, in either case, before the 2009 Bonus Date, then, the Executive shall be
entitled to payment of the 2009 Bonus upon the Release Effective Date. Notwithstanding the
foregoing to the contrary, the 2009 Bonus shall be forfeited in the event the Executive’s
employment is terminated by the Corporation for Cause, or in the event the Executive resigns from
his employment prior to the 2009 Bonus Date other than for Good Reason (unless, following the fifth
month after the Effective Time, he has complied with the requirements under Section 6 of this
Amendment, except that he must remain continuously employed through such 2009 Bonus Date). The
trustee of the Rabbi Trust shall be provided specific directions to pay, or not pay, the Executive,
the 2009 Bonus in accordance with this paragraph.

     5. (a) At the Effective Time, the Executive shall be granted an option to purchase 750,000
shares of Corporation common stock pursuant to the Corporation’s 2009 Equity Incentive Plan. The
terms and conditions of such stock options shall be determined by the Committee in its sole and
absolute discretion; provided, however, that such terms and conditions shall be no
less favorable to the Executive than those set forth on Annex A hereto; and,
provided, further, however, that such options shall vest ratably over four
years beginning on the date of grant, such that the number of vested option shall equal the total
number of options initially granted multiplied by a fraction, the numerator of which is the number
of days employed by the Corporation since the date of grant, and the denominator of which is 1,460.

 

 

          (b) With respect to the Executive’s stock appreciation right, granted as of April 24, 2007,
relating to 300,000 shares of Voyager common stock (i) rights with respect to 200,000 shares shall
be retained by the Executive and adjusted and converted in accordance with the terms of the Merger
Agreement and (ii) rights with respect to 100,000 shares shall automatically terminate at Effective
Time.

     6. As provided under Section 10 of the Employment Agreement, the Executive’s employment with
the Corporation is and shall remain at-will and, accordingly, the Executive may resign, and the
Corporation may terminate the Executive, from his employment at any time and for any or no reason.
The Executive’s rights, benefits and entitlements upon any such termination shall be as set forth
in this Amendment. Notwithstanding the foregoing, the Corporation hereby agrees that in the event
the Executive desires to resign from employment with the Corporation, if and only if (i) the
Executive remains employed with the Corporation, in good standing, as Chief Executive Officer for a
period of at least five (5) months following the Effective Time, (ii) at any time following such
five (5) month period the Executive provides seven (7) months advance notice of such resignation
(the “Notice Period”), and (iii) during the Notice Period, the Executive (X) assists the
Board in any replacement search for his successor and in transitioning his duties to his designated
successor and (Y) continues to perform his duties on behalf of the Corporation in accordance with
the Employment Agreement through the last day of the Notice Period (the “End Date”), the
Executive shall be entitled to receive from the Corporation (A) salary and employee benefits
(including his Post-2009 Annual Bonus with respect to any calendar year that ends during the Notice
Period) subject to and in accordance with the Employment Agreement and (B) the Pro Rata Bonus (as
defined below). The “Pro Rata Bonus” shall be a bonus in respect of the calendar year in
which the End Date occurs. The amount of the Pro Rata Bonus shall equal the amount of Post 2009
Annual Bonus that the Executive would have earned assuming that he remained employed with the
Corporation for the entire calendar year, and based upon the Corporation’s actual performance as
compared to any applicable performance goals pre-established by the Committee, multiplied by a
fraction, the numerator of which is the number of days the Executive worked during such calendar
year, and the denominator of which is equal to 365. Such Pro Rata Bonus shall be paid in accordance
with the Corporation’s bonus plan, and upon the later of (x) the Release Effective Date (as defined
below), and (y) at or about the same time annual bonuses are paid to other executives of the
Corporation, but in no event later than March 15 of the calendar year following the year in which
the End Date occurs. If the foregoing payments and benefits become payable as provided above and
are so paid or provided, no additional payments and benefits shall be owed or paid under Section 7
of this Amendment, or under any severance plan, policy or arrangement of the Corporation.

     7. As of the Effective Time, and except as provided in Section 8(b) below, Sections 4 and 5 of
the Employment Agreement (entitled, respectively, “Severance and Change in Control Protection” and
“Regular Severance Benefits”) are hereby terminated, deleted in their entirety, and replaced by the
following provisions; provided, however, that the terms and conditions in Section 6
of the Employment Agreement (entitled, “Conditions to Receiving Severance Benefits”) shall remain
in full force and effect and shall apply with respect to the payments discussed immediately below:

The Executive’s Entitlement to Severance Payments.

If the Executive’s employment terminates either by the Corporation without Cause or by the
Executive’s resignation for Good Reason, in either case, following the Effective Time and on or
prior to December 31, 2010, then the Executive shall be entitled to his Base Salary through, and at
the rate in effect on, the date of termination, plus an amount equal to the greater of (x) 100% of
the Executive’s then-current annualized rate of Base Salary, or (y) the Executive’s Post 2009
Annual Bonus applicable in respect of 2010, at the target level determined in accordance with
Section 4 above, and calculated as if the Executive was employed for all of 2010 (and assuming that
all applicable performance goals were attained at such target level). Such amount shall be paid
upon the later of (x) the Release

 

 

Effective Date and (y) at or about the same time annual bonuses in respect of the calendar year in
which the Executive’s termination occurs are paid to other executives of the Corporation but not
later than March 15 after such calendar year.

If the Executive’s employment terminates either by the Corporation without Cause, or by the
Executive’s resignation for Good Reason, in either case on or after January 1, 2011, then the
Executive shall be entitled to the following:

(A) his Base Salary through, and at the rate in effect on, the date of termination, paid in
accordance with the Corporation’s regular payroll schedule; and

(B) an amount equal to 100% of the Post 2009 Annual Bonus for the year in which such termination
occurs, calculated as if the Executive was employed for the entire year in which such termination
occurred (but subject to the Committee’s determination of Executive’s achievement of applicable
performance goals for such year), multiplied by a fraction, the numerator of which is equal to the
number days the Executive worked in the year of termination, and the denominator of which is equal
to 365. Such amount shall be paid upon the later of (x) the Release Effective Date, and (y) at or
about the same time annual bonuses in respect of such year of termination are paid to other
executives of the Corporation (but no later than March 15 of the year immediately following the
year in which such termination occurs); and

(C) payments that in the aggregate equal 100% of the then-current annual Base Salary (the
“Aggregate Amount”), paid as follows: (i) a portion of the Aggregate Amount equal to the maximum
amount that will qualify under the limitation set forth under Treasury Regulation
1.409A-1(b)(9)(iii)(A), shall be paid in equal installments ratably in the form of salary
continuation payments in accordance with the Corporation’s regular payroll schedule for a period of
one year commencing with the first regularly scheduled payroll date immediately following the
Release Effective Date; and (ii) a portion of the Aggregate Amount equal to the excess of the
Aggregate Amount over the sum of the payments described in clause (i), shall be paid in a lump sum
on the 5th business day immediately following the Release Effective Date (but no later than March
15 of the year immediately following the year in which such termination occurs).

In addition, if the Executive’s employment terminates either by the Corporation without Cause or on
account of Executive’s resignation for Good Reason, then the Executive will be entitled, subject to
his continued payment of any required premiums, to continued participation for eighteen months in
all medical, dental and vision plans which cover him (including eligible dependents) upon the same
terms and conditions (except for the requirements of his continued employment) in effect for active
employees of the Corporation. If Executive obtains other employment that offers substantially
similar or improved benefits as to any particular medical, dental or vision plan, such continuation
of coverage by the Corporation for such similar or improved benefit under such plan under this
paragraph will cease. The continuation of health benefits under this subparagraph shall reduce and
count against Executive’s right under the Consolidated Omnibus Budget Reconciliation Act of 1985,
as amended (“COBRA”). To the extent that such post-employment coverage cannot be provided to
Executive (including his eligible dependents) under any such plan at the same cost as in effect for
active employees of the Corporation (either because the plan does not permit the foregoing coverage
for

 

 

terminated employees on such terms or such post-employment coverage would have material adverse tax
consequences to the Executive) but that coverage under COBRA is available, then the Executive will
be required to pay the applicable premium for such coverage under COBRA but shall be reimbursed by
the Corporation each month for the amount of any monthly premium cost paid by the Executive in
excess of the cost of the coverage applicable to active employees.

In the event (i) the Executive is terminated by the Corporation for Cause at anytime during his
employment, or (ii) the Executive resigns other than for Good Reason (unless, following the fifth
month after the Effective Time, he has complied with the requirements of Section 6 of this
Amendment), then the Executive shall: (a) only be entitled to his Base Salary through the date of
termination; (b) not be entitled to any further payments under his Employment Agreement or this
Amendment; and (c) all outstanding vested and unvested stock options and equity compensation awards shall immediately and automatically
terminate and be forfeited.

     8. (a) Retention Bonus. In addition to the other payments provided for in the
Employment Agreement and this Amendment, as provided for under the Rabbi Trust, if both the
Effective Time occurs and the Executive remains continuously employed with the Corporation through
the first anniversary of the Effective Time, then the Executive shall be paid, from the Rabbi Trust
and only secondarily from Voyager if the Rabbi Trust cannot or does not pay in full (subject to the
terms of the Rabbi Trust), a special payment equal to $268,538 which shall be paid on such first
anniversary (the “Retention Bonus”); provided, however, if the Corporation
terminates the Executive without Cause or in the event he resigns for Good Reason, in either case,
before such anniversary, then, in addition to any other rights under this Amendment, the Executive
shall be entitled to payment of the Retention Bonus upon the Release Effective Date.
Notwithstanding the foregoing to the contrary, the Retention Bonus shall be forfeited in the event
the Executive’s employment is terminated by the Corporation for Cause, or in the event the
Executive resigns from his employment other than for Good Reason (unless, following the fifth month
after the Effective Time, he has complied with the requirements of Section 6 of this Amendment,
except that he must remain continuously employed through such first anniversary).

     (b) Change of Control Bonus. In addition to the other payments provided for in the
Employment Agreement and this Amendment, as provided for under Section 4(a) of the Agreement and as
amended hereby, if both the Effective Time occurs and the Executive remains continuously employed
with the Corporation through the date which is six months immediately following the Effective Time
(the “Six Month Date”), then the Executive shall be paid, from the Rabbi Trust and only
secondarily from Voyager if the Rabbi Trust cannot or does not pay in full (subject to the terms of
the Rabbi Trust), a special payment equal to $805,612 which shall be paid on the Six Month Date
(the “Change of Control Bonus”); provided, however, if the Corporation
terminates the Executive without Cause or in the event he resigns for Good Reason, in either case,
before Six Month Date, then, in addition to any other rights under this Amendment, the Executive
shall be entitled to payment of the Change of Control Bonus upon the Release Effective Date.
Notwithstanding the foregoing to the contrary, the Change of Control Bonus shall be forfeited in
the event the Executive’s employment is terminated by the Corporation for Cause, or in the event
the Executive resigns from his employment other than for Good Reason (unless, following the fifth
month after the Effective Time, he has complied with the requirements of Section 6 of this
Amendment, except that he must remain continuously employed through such Six Month Date). The
Executive’s right to receive a tax gross-up payment as provided under Section 7 of the Employment
Agreement, as amended hereby, shall not apply to, or in respect of, the Change of Control Bonus.

     (c) Directions to Trustee. With respect to the payments discussed in Section 8(a) and
8(b) above, the trustee of the Rabbi Trust shall be provided specific directions to pay, or not
pay, the Executive, such payments in accordance with this paragraph.

 

 

     9. Notwithstanding anything in this Amendment or in the Employment Agreement to the contrary,
any payments (other than regularly scheduled Base Salary or other amounts earned but not yet paid,
including without limitation expense reimbursements and accrued but unused vacation pay in
accordance with the Employer’s normal practices) due to the Executive following a termination of
Executive’s employment (except in the case of Executive’s death or Disability), the Corporation’s
obligation to make any such payment shall be conditioned upon the Executive executing and
delivering to the Corporation a general release, in form annexed to the Employment Agreement as
Exhibit B, and such release becoming fully effective and irrevocable under applicable law;
provided, however, if Executive shall fail to deliver such release within 30 days
of termination, then he shall no longer be entitled to such payments. The date on which such
release becomes fully effective and irrevocable under applicable law shall be referred to as the
“Release Effective Date”. This Section 9 shall be subject to the provisions of Section 12
of the Employment Agreement which remain in effect for all other purposes of this Amendment and the
Employment Agreement.

     10. Effective immediately following the Effective Time, other than with respect to any
transactions contemplated by the Merger Agreement, Section 7 of the Employment Agreement is hereby
amended and restated in its entirety and replaced with the following, with the intention that this
provision shall replace and supersede the tax gross-up payment for golden parachute excise taxes
under the Multi-Year Stock Option Grant dated February 4, 2004:

If any payments or benefits, whether pursuant to the terms of this Amendment, the Employment
Agreement or any other plan, arrangement or agreement of the Corporation or any person affiliated
with the Corporation (collectively, the “Payments”), received or to be received by the Executive
will be subject to the tax (the “Excise Tax”) imposed by Section 4999 of the Internal Revenue Code
(or any similar tax that may hereafter be imposed), then the Corporation shall pay to the Executive
an additional amount (the “Gross-Up Payment”). The Gross-Up Payment shall be an amount which, when
combined with the net amount of the Payments retained by the Executive (after giving effect to the
application of the Excise Tax and all other applicable taxes on the Payments) will result in the
net amount received by the Executive equaling the net amount of the Payments the Executive would
have received absent application of the Excise Tax. The process for calculation of the Excise Tax,
determining the amount of any Gross-Up Payment and other procedures relating to this Section 10 are
as follows:

     (a) Subject to paragraph (c) below, all determinations required to be made under this
provision, including whether a Gross-Up Payment is required and the amount of such Gross-Up
Payment, shall be made by the Auditor selected in accordance with paragraph (b) below. The Auditor
shall provide detailed supporting calculations both to the Corporation and the Executive within
thirty (30) business days after the event giving rise to the application of Section 4999 of the
Internal Revenue Code or such earlier time as requested by the Corporation. If the Auditor
determines that no Excise Tax is payable to the Executive, it shall furnish the Executive with a
written report indicating that he has substantial authority not to report any Excise Tax on his
federal income tax return. Any determination by the Auditor shall be binding upon the Corporation
and the Executive. Any Gross-Up Payment, as determined pursuant to this provision shall be paid by
the Corporation to the Executive (or to the appropriate taxing authority on Executive’s behalf)
when the applicable tax is due. As a result of the uncertainty in the application of Section 4999
of the Code at the time of the initial determination by the Auditor hereunder, it is possible that
Gross-Up Payments which will not have been made by the Corporation should have been made
(“Underpayment”), consistent with the calculations required to be made hereunder. In the event that
the Corporation exhausts its remedies pursuant to paragraph (c) below and the Executive thereafter
is required to make a payment or additional payment of any Excise Tax, the Auditor shall determine
the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid
by the Corporation to or for the benefit of the Executive, but in no event later than thirty (30)
days after a demand for payment by

 

 

the Internal Revenue Service to the Executive. In no event shall the Gross-Up Payment or the
Underpayment be made later than the end of the Executive’s taxable year next following the
Executive’s taxable year in which the related taxes are remitted to the taxing authority.

     (b) The Auditor shall be the Corporation’s then current public accounting firm. The
Corporation shall be responsible for paying any applicable Auditor’s fee.

     (c) The Executive shall notify the Corporation in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Corporation of the Gross-Up Payment.
Such notification shall be given as soon as practicable but no later than fifteen (15) business
days after the Executive knows of such claim and shall apprise the Corporation of the nature of
such claim and the date on which such claim is requested to be paid. The Executive shall not pay
such claim prior to the expiration of the period ending on the day prior to the day that any
payment of taxes with respect to such claim is due or the thirty day period following the date on
which the Executive gives such notice to the Corporation, whichever period is shorter. If the
Corporation notifies the Executive in writing prior to the expiration of such period that it
desires to contest such claim, the Executive shall (i) give the Corporation any information
reasonably requested by the Corporation relating to such claim, (ii) take such action in connection
with contesting such claim as the Corporation shall reasonably request in writing from time to
time, including, without limitation, accepting legal representation with respect to such claim by
an attorney reasonably selected by the Corporation, (iii) cooperate with the Corporation in good
faith in order effectively to contest such claim, and (iv) permit the Corporation to participate in
any proceedings relating to such claim; provided, however, that the Corporation shall bear and pay directly all costs
and expenses (including attorneys fees and any additional interest and penalties) incurred in
connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax
basis, for any Excise Tax or other related tax, including interest and penalties with respect
thereto, imposed as a result of such representation and payment of costs and expenses or reimburse
the Executive on an after tax basis for tax preparation expenses associated with the preparing;
refiling; extensions; or other actions taken by the Executive’s tax preparer to comply with these
instructions or the Corporation’s subsequent instructions. Any payment or reimbursement of costs
and expenses shall be paid within 10 business days after they are incurred, but in any event no
later than the end of the Executive’s taxable year following the Executive’s taxable year in which
the taxes that are the subject of the contest are remitted to the taxing authority, or where as a
result of such contest no taxes are remitted, the end of the Executive’s taxable year following the
Executive’s taxable year in which the audit is completed or there is a final and nonappealable
settlement or other resolution of the litigation. Any Excise Taxes or income taxes imposed as a
result of such representation and payment of costs and expenses shall be reimbursed to the
Executive within 10 business days after they are incurred but in any event no later than the end of
the Executive’s taxable year next following the Executive’s taxable year in which the Executive
remits the related taxes. Without limitation on the foregoing provisions of this paragraph (c), the
Corporation shall control all proceedings taken in connection with such contest and, at its sole
option, may pursue or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect to such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any
permissible manner, and the Executive agrees to prosecute such contest to a determination before
any administrative tribunal, in a court of initial jurisdiction and in one or more appellate
courts, as the Corporation shall determine; provided, however, that if the Corporation directs the
Executive to pay such claim and sue for a refund, the Corporation shall immediately distribute the
amount of such payment to the Executive and shall indemnify and hold the Executive harmless, on an
after-tax basis, from any Excise Tax and other related tax, including interest or penalties with
respect thereto, imposed with respect to such distribution or with respect to any imputed income
with respect to such

 

 

distribution; and further provided that any extension of the statute of limitations relating to
payment of taxes for the taxable year of the Executive with respect to which such contested amount
is claimed to be due is limited solely to such contested amount. Any Excise Taxes or income taxes
imposed as a result of such distribution shall be reimbursed to the Executive within 10 business
days after they are incurred but in any event no later than the end of the Executive’s taxable year
next following the Executive’s taxable year in which the Executive remits the related taxes.
Furthermore, the Corporation’s control of the contest shall be limited to issues with respect to
which a Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle
or contest, as the case may be, an other issue raised by the Internal Revenue Service or any other
authority.

     (d) If, after the receipt by the Executive of a Gross-Up Payment for any reason, including but
not limited to a distribution by the Corporation pursuant to paragraph (c) above, the Executive
becomes entitled to receive any refund with respect to any such payment, the Executive shall
(subject to the Corporation’s complying with its obligations under paragraph (c)), promptly pay to
the Corporation the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto).

     11. Section 9 of the Employment Agreement is clarified such that any set off described in
clause (ii) of the last sentence thereof shall only be made against amounts that are not subject to
Section 409A of the Internal Revenue Code unless such set off would not result in accelerated or
additional taxes under said Section 409A.

     12. The parties hereto shall, simultaneously with the execution of this Amendment, execute the
Amendment to Employee Invention, Assignment, Confidentiality and Restrictive Covenant Agreement, by
and between Voyager (formerly known as ProQuest Company) and the Executive, dated as of April 2,
2003, in the form set forth as Annex B hereto.

     13. Except as expressly modified herein, the Employment Agreement shall otherwise remain in
full force and effect, and is hereby ratified by the Corporation and Voyager.

     14. This Amendment may be executed in counterparts, each of which shall constitute an
original, but both of which together shall constitute one and same instrument.

     15. This Amendment shall be governed by, and construed and interpreted in accordance with, the
laws of the State of New York, without giving effect to its principles of conflicts of laws.

 

 

     IN WITNESS WHEREOF, the parties have signed this Amendment to Employment Agreement as of the
day and year set forth above.

	 	 	 	 	 
	 	VOYAGER LEARNING COMPANY

 	 
	 	By:  	/s/ Todd W. Buchardt
 	 
	 	 	Name:  	Todd W. Buchardt 	 
	 	 	Title:  	Senior Vice President, General Counsel
and Secretary 	 
	 
	 	CAMBIUM-VOYAGER HOLDINGS, INC.

 	 
	 	By:  	/s/ Scott J. Troeller
 	 
	 	 	Name:  	Scott J. Troeller 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	 	 
	 	/s/ Ron Klausner
 	 
	 	RON KLAUSNER 	 
	 	 	 

 

 

	 	 	 	 	 

ANNEX A

AMENDMENT TO RON KLAUSNER EMPLOYMENT AGREEMENT

TERMS AND CONDITIONS OF OPTION GRANTS AS REFERENCED IN SECTION 5 OF THE

AMENDMENT

 

 

     ANNEX B

AMENDMENT TO EMPLOYEE INVENTION, ASSIGNMENT, CONFIDENTIALITY AND

RESTRICTIVE COVENANT AGREEMENT

     This Amendment to Employee Invention, Assignment, Confidentiality and Restrictive Covenant
Agreement (the “Amendment”), dated as of the 7th day of August, 2009, is made by and
between Cambium-Voyager Holdings, Inc. (the “Corporation”), Voyager Learning Company,
formerly known as ProQuest Company (“Voyager”) and Ron Klausner (the “Executive”).

WITNESSETH THAT:

     WHEREAS, Voyager and the Executive are parties to that certain Employee Invention, Assignment,
Confidentiality and Restrictive Covenant Agreement dated as of April 2, 2003 (the “Inventions
Agreement”); and

     WHEREAS, Voyager has entered into that certain Agreement and Plan of Mergers, by and among
Voyager, the Corporation, Vowel Acquisition Corp., VSS-Consonant Holdings II Corp., Consonant
Acquisition Corp., and certain other entities signatories thereto (the “Merger Agreement”);
and

     WHEREAS, in connection with the Mergers (as defined in the Merger Agreement), Voyager shall
become a wholly owned subsidiary of the Corporation; and

     WHEREAS, subject to and contingent upon the consummation of the Mergers, the Corporation,
Voyager and the Executive desire to amend the Inventions Agreement on the terms and conditions set
forth in this Amendment.

     NOW THEREFORE, in consideration of the foregoing premises and for other good and valuable
consideration the receipt of which is hereby acknowledged, the Corporation, Voyager and the
Executive hereby agree as follows:

     1. Sections 2 through and including Section 5 of this Amendment are subject to
and contingent upon the consummation of the Mergers, and such sections shall become effective only
as of the Effective Time (as defined in the Merger Agreement). If the Merger Agreement is
terminated in accordance with its terms, then this Amendment shall be void ab initio.

     2. Voyager hereby transfers and assigns the Inventions Agreement, as amended hereby, and all
rights thereunder, to the Corporation, the Corporation hereby acknowledges and accepts such
transfer and assignment, and the Executive hereby consents to such transfer and assignment. All
references to the “ProQuest” set forth in the Inventions Agreement shall mean, collectively, the
Corporation and Voyager.

     3. The Executive hereby confirms and agrees that no items have been, or are now required to
be, listed on Exhibit A to the Inventions Agreement.

     4. Section 4 of the Inventions Agreement is hereby amended to provide that each and every
reference to a “twelve (12) month” period set forth in Section 4 of the Inventions Agreement,
including such references in Sections 4.1, 4.2, 4.3 and 4.6, shall be replaced with a reference to
a “twenty-four (24) month” period.

     5. Section 5.7 of the Inventions Agreement is hereby amended to provide that the reference to
“Michigan” shall be replaced with a reference to “New York.”

 

 

     6. Except as expressly modified herein, the Inventions Agreement shall otherwise remain in
full force and effect, and is hereby ratified by the Executive.

     7. This Amendment may be executed in counterparts, each of which shall constitute an original,
but both of which together shall constitute one and same instrument.

     8. This Amendment shall be governed by, and construed and interpreted in accordance with, the
laws of the State of Michigan, without giving effect to its principles of conflicts of laws.

 

 

     IN WITNESS WHEREOF, the parties have signed this Amendment to Employee Invention, Assignment,
Confidentiality and Restrictive Covenant Agreement as of the day and year set forth above.

	 	 	 	 	 
	 	VOYAGER LEARNING COMPANY

 	 
	 	By:  	/s/ Todd W. Buchardt
 	 
	 	 	Name:  	Todd W. Buchardt 	 
	 	 	Title:  	Senior Vice President, General Counsel
and Secretary 	 
	 
	 	CAMBIUM-VOYAGER HOLDINGS, INC.

 	 
	 	By:  	/s/ Scott J. Troeller
 	 
	 	 	Name:  	Scott J. Troeller 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	 	 
	 	/s/ Ron Klausner
 	 
	 	RON KLAUSNER

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