RENAISSANCE LEARNING, INC.
INCENTIVE BONUS PLAN
Effective as of July 16, 2003
Revised as of July 2008
1. Purpose . The Compensation Committee of the Board of Directors of Renaissance Learning, Inc. has
adopted this Incentive Bonus Plan to establish a correlation between the annual incentives awarded to Participants
and the Company’s financial performance. Subject to the terms and conditions of this Plan, Participants will receive
an incentive bonus tied to Performance Goals. The Plan will be applicable to the plan year ending June 30, 2009
and subsequent years unless and until terminated or amended by the Compensation Committee.
2. Definitions . As used in the Plan, the following terms have the meanings indicated:
(a) “Board” means the Board of Directors of the Company.
(b) “Code” means the Internal Revenue Code of 1986, as amended.
(c) “Committee” means the Compensation Committee of the Board.
(d) “Company” means Renaissance Learning, Inc. and its consolidated subsidiaries.
(e) “Disability” means a condition that meets the requirements set forth in Section 22(e)(3) of the Code,
as determined by the Committee.
(f) “Participant” means any executive officer or other employee of the Company participating in the Plan
for the applicable Plan Year.
(g) “Performance Goal” means a goal established by the Committee to measure the performance of the
Company for the purpose of determining whether, and to what extent, an award will be payable under the Plan
for the Plan Year.
(h) “Plan Year” means the 12 months period commencing July 1 of each year and ending June 30 of the
(i) “Plan” means this Renaissance Learning, Inc. Incentive Bonus Plan, as amended from time to time.
(j) “Retirement” means the termination of employment of a Participant after the attainment of age 62 with
at least ten years of service with the Company, or due to early retirement with the consent of the Committee.
(k) “Salary” means base salary actually earned by a Participant during