Exhibit 99.2

RENAISSANCE LEARNING, INC.

NONSTATUTORY STOCK OPTION AGREEMENT

This Nonstatutory Stock Option Agreement (this “Agreement”), granted as of “Date,” is between Renaissance Learning, Inc., a Wisconsin corporation (the “Company”), and “Name” (the “Participant”).

W I T N E S S E T H:

WHEREAS, the Board of Directors of the Company has established the 1997 Stock Incentive Plan (the “Plan”) for employees and non-employee directors of the Company and its affiliates; and

WHEREAS, the Company anticipates that the Plan will promote the best interests of the Company and its shareholders (i) by providing participants with an opportunity to acquire a proprietary interest in the Company thereby providing them with a stronger incentive to strive for the continued success and growth of the Company, and (ii) by aiding the Company to attract and retain key personnel and non-employee directors; and

WHEREAS, the Company has granted to the Participant the right to participate in the Plan in the manner and subject to the terms provided in this Agreement and the Plan.

NOW, THEREFORE, in consideration of the benefits that the Company expects to be derived in connection with the services to be hereafter rendered to it or its affiliates by the Participant, the Company and the Participant hereby agree as follows:

1.

Provisions of Plan Control.  This Agreement will be governed by the provisions of the Plan, the terms and conditions of which are incorporated herein by reference.  The Plan empowers the Compensation Committee to make interpretations, rules and regulations thereunder, and, in general, provides that determinations of such Committee with respect to the Plan will be binding upon the Participant.  Unless otherwise provided herein, all capitalized words in this Agreement will have the meaning ascribed to them in the Plan.  A copy of the Plan will be delivered to the Participant upon reasonable request.

2.

Option; Number of Shares; Option Price.  The Participant will have the right and option to purchase the number of shares of the Company’s Common Stock (individually, a “Share” and jointly, the “Shares”) set forth on the Appendix or Appendices hereto pursuant to the terms and conditions set forth in this Agreement (the “Option”).  The purchase price for each of the Option Shares will be the purchase price set forth on the Appendix or Appendices hereto.

3.

Time Limitations on Exercise of Option.  Except as otherwise provided in the Plan and subject to Paragraph 4 hereof, the Participant may exercise an Option pursuant to the vesting schedule set forth on the Appendix or Appendices hereto.  To the extent not previously exercised according to the terms hereof, and notwithstanding any other provision of the Option to the contrary, an Option will expire on the tenth anniversary of its date of grant.

4.

Termination of Employment.  The Option will be exercisable upon the termination of the Participant’s employment relationship with the Company and its subsidiaries only in the manner and to the extent provided in Section 12 of the Plan, as modified herein or on the Appendix or Appendices hereto.  In general, an Option will be exercisable for one year after the Participant’s death or disability as defined in Section 12(c)(ii) of the Plan.  In all other cases, unless the Compensation Committee determines otherwise, an Option will be exercisable for ninety days following the termination of the Participant’s employment for any reason other than Cause.  If a Participant’s employment is terminated for Cause, an Option will expire immediately. Unless otherwise determined by the Compensation Committee, the Option will be exercisable only to the extent it was vested on the date of termination of employment.  In all events, and notwithstanding anything herein contained to the contrary, no Option will be exercisable after the tenth anniversary of its date of grant.

5.

Method of Exercising Option.  An Option may be exercised in whole or in part by delivery to the Company, at the office of its Secretary at Wisconsin Rapids, Wisconsin, of (a) written notice identifying the Option and stating the number of Shares with respect to which it is being exercised, and (b) payment in full of the exercise price of the Shares then being acquired in the form permitted by Section 9 of the Plan.  The Company will have the right to delay the issue or delivery of any Shares to be delivered hereunder until (a) the completion of such registration or qualification of such Shares under federal, state or foreign law, ruling or regulation as the Company will deem to be necessary or advisable, and (b) receipt from the Participant of such documents and information as the Company may deem necessary or appropriate in connection with such registration or qualification or the issuance of Shares hereunder.

6.

Prohibitions Against Transfer.  An Option, and the rights and privileges conferred hereby, may not be transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) by the Participant, or be subject to execution, attachment or similar process, and will be exercisable only by the Participant, except as provided in Section 12(c) of the Plan and the Appendix or Appendices hereto.

7.

Notices.  Any notice to be given to the Company under the terms of this Agreement will be given in writing to the Company in care of its Secretary at 2911 Peach Street, Wisconsin Rapids, Wisconsin  54495-8036.  Any notice to be given to the Participant may be addressed to him at his address as it appears on the payroll records of the Company or any affiliate thereof.  Any such notice will be deemed to have been duly given if and when actually received by the party to whom it is addressed, as evidenced by a written receipt to that effect.

8.

Taxes.  The Company may require payment or reimbursement of or may withhold any tax that it believes is required as a result of the exercise of an Option, and the Company may defer making delivery with respect to Shares for which the Option was exercised until arrangements satisfactory to the Company have been made with respect to such withholding obligations.

IN WITNESS WHEREOF, the Company has caused these presents to be executed as of the date and year first above written, which is the date of the granting of the Option evidenced hereby.

RENAISSANCE LEARNING, INC.

By:

John R. Hickey, President and Chief
Executive Officer

The undersigned Participant hereby accepts the foregoing Option and agrees (i) to the several terms and conditions hereof and of the Plan and (ii) that the terms and conditions of this Agreement will apply to all Appendices hereto.

“Participant Name”

APPENDIX [A]

Participant:  “Name”

Date of Grant:  “Date”

Number of Option Shares Exercise Price

The option shares referenced above will become exercisable in accordance with the following schedule:

Vesting Dates Option Shares

________________________________________

“Participant Name”