Document:

EX-10.32

Exhibit 10.32

PLATO LEARNING, INC.

2006 STOCK INCENTIVE PLAN

STOCK APPRECIATION RIGHTS AGREEMENT

PLATO Learning, Inc., a Delaware corporation (the “Company”), hereby grants to
[(Name)] (the “Participant”) on this [(Date)] (the “Grant Date”) an Award
of [(Number)] stock appreciation rights (“SARs”) pursuant to the provisions of the
PLATO Learning, Inc. 2006 Stock Incentive Plan (the “Plan”). Each SAR represents a
contingent right to receive shares of the Company’s common stock, $.01 par value
(“Shares”), in the future based upon the appreciation in value of the Share underlying each
SAR above [(Price)] (the “Grant Price”), subject to the terms and conditions set
forth in this Agreement (this “Agreement”). Any term capitalized herein but not defined
will have the meaning set forth in the Plan.

1. SAR Award Subject to Acceptance of Agreement.

The Award of any SAR pursuant to this Agreement become null and void unless the Participant
shall accept this Agreement by executing it in the space provided below and return it to the
Company within 45 days following the Grant Date.

2. Terms of SAR Award.

2.1 Maximum Term of SARs. In no event may a SAR be exercised, in whole or in part,
after 5:00 p.m., Minneapolis time, on the date that is eight (8) years after the Grant Date (the
“Expiration Date”).

2.2 Vesting of SARs. The SARs will vest and become exercisable as to one-third of the
Shares to which the SARs relate on December 10, 2008; (2) one-third of the Shares to which
the SARs relate on December 10, 2009; and (3) one-third of the Shares to which the SARS relate on
December 10, 2010. Each of the vesting dates is contingent upon 1) the Participant having
provided continuous Service to the Company or an Affiliate from the Grant Date through each such
vesting dates, and 2) the Company achieving the 2008 year-end free cash flow target of $X.X
million. Any SARs that are not vested upon the termination of the Participant’s Service shall be
forfeited, and all SARs will be forfeited if the Company does not achieve the 2008 year-end free
cash flow target of $X.X million.

2.3 Method of Exercise and Distribution of SARs. The SARs may be exercised by written
notice to the Company indicating the number of Shares to which the SARs relate being exercised.
When a SAR is vested and exercisable, it may be exercised in whole or in part at any time as to any
or all full Shares under the SAR. Any amount due to the Participant upon exercise of a SAR will be
paid in Shares with a Fair Market Value equal to the amount, if any, by which the Fair Market Value
of a Share on the date of exercise exceeds the Grant Price of the SAR, rounded down to the nearest
whole Share. The Participant will not receive a distribution if the Fair Market Value on the date
of exercise does not exceed the Grant Price.

2.4 Termination of SAR. Each vested SAR shall terminate and shall cease to be
exercisable as follows:

(a) If a Participant’s Service with the Company and any Affiliate terminates by reason of
death, any SAR may thereafter be exercised, to the extent then exercisable, by the legal
representative of the estate or by the legatee of the Participant under the will of the
Participant, but may not be exercised after twelve months from the date of such death or the
expiration of the stated term of the SAR, whichever period is shorter.

(b) If a Participant’s Service with the Company and any Affiliate terminates by reason of
Disability, any SAR held by such Participant may thereafter be exercised, to the extent it was
exercisable at the time of termination due to Disability, but may not be exercised after twelve
months from the date of such termination of Service or the expiration of the stated term of the
SAR, whichever period is the shorter.

(c) If a Participant’s Service with the Company and any Affiliate terminates by reason of
Retirement, any SAR held by such Participant may thereafter be exercised, to the extent it was
exercisable at the time of termination due to Retirement, but may not be exercised after thirty-six
months from the date of such termination of Service or the expiration of the stated term of the
SAR, whichever period is the shorter.

(d) If a Participant’s Service terminates for any reason other than Death, Disability or
Retirement, except if the Participant’s Service terminates for Cause, any SAR held by such
Participant may thereafter be exercised to the extent it was exercisable at the time of such
termination, but may not be exercised after 90 days after such termination, or the expiration of
the stated term of the SAR, whichever period is the shorter. In the event a Participant’s Service
with the Company is terminated for Cause, all unexercised SARs granted to such Participant shall
immediately terminate.

2.5 Withholding Taxes. The Company will have the right to deduct or withhold, or
require the Participant to remit to the Company, the minimum amount necessary to satisfy federal,
state and local taxes, domestic or foreign, as required by law or regulation to be withheld with
respect to any taxable event arising under this Plan, including by withholding Shares otherwise
distributable to the Participant pursuant to this Agreement.

3 Judicial Modification. If the final judgment of a court of competent jurisdiction
declares that any term or provision of this Agreement is invalid or unenforceable, the parties
agree that (i) the court making the determination of invalidity or unenforceability shall have the
power to reduce the scope, duration, or geographic area of the term or provision, to delete
specific words or phrases, or to replace any invalid or unenforceable term or provision with a term
or provision that is valid and enforceable and that comes closest to expressing the intention of
the invalid or unenforceable term or provision, (ii) the parties shall request that the court
exercise that power, and (iii) this Agreement shall be enforceable as so modified after the
expiration of the time within which the judgment or decision may be appealed.

4. Transferability of SARs. The SARs awarded under this Agreement are transferable
only by will or the laws of descent and distribution, or pursuant to a domestic relations order (as
defined in Code Section 414(p)). Each SAR will be exercisable during the Participant’s lifetime
only by the Participant or by his or her guardian or legal representative. The Committee may, in
its discretion, require a guardian or legal representative to supply it with evidence the Committee
deems necessary to establish the authority of the guardian or legal representative to exercise a
SAR on behalf of the Participant.

5. Securities Law Requirements.

(a) The SARs awarded under this Agreement are not exercisable in whole or in part, if exercise
may, in the opinion of counsel for the Company, violate the 1933 Act (or other federal or state
statutes having similar requirements), as it may be in effect at that time, or cause the Company to
violate the terms of Section 4.1 of the Plan.

(b) The SARs are subject to the further requirement that, if at any time the Committee
determines in its discretion that the registration, listing or qualification of the Shares subject
to the SARs under any federal securities law, securities exchange requirements or under any other
applicable law, or the consent or approval of any governmental regulatory body, is necessary as a
condition of, or in connection with, the granting of a SAR, the SAR may not be exercised in whole
or in part, unless the necessary registration, listing, qualification, consent or approval has been
effected or obtained free of any conditions not acceptable to the Committee.

(c) With respect to individuals subject to Section 16 of the Exchange Act, transactions under
this Agreement are intended to comply with all applicable conditions of Rule 16b-3, or its
successors under the Exchange Act. To the extent any provision of the Agreement or action by the
Committee fails to so comply, the Committee may determine, to the extent permitted by law, that the
provision or action will be null and void.

6. No Obligation to Exercise SAR. The grant of a SAR imposes no obligation upon the
Participant (or upon a transferee of a Participant) to exercise the SAR.

7. No Limitation on Rights of the Company. The grant of a SAR will not in any way
affect the right or power of the Company to make adjustments, reclassification or changes in its
capital or business structure, or to merge, consolidate, dissolve, liquidate, sell or transfer all
or any part of its business or assets.

8. Plan and SARs Not a Contract of Employment. Neither the Plan nor this Agreement is
a contract of employment, and no terms of employment of the Participant will be affected in any way
by the Plan, this Agreement or related instruments except as specifically provided therein.
Neither the establishment of the Plan nor this Agreement will be construed as conferring any legal
rights upon the Participant for a continuation of employment, nor will it interfere with the right
of the Company or any Affiliate to discharge the Participant and to treat him or her without regard
to the effect that treatment might have upon him or her as a Participant.

9. Participant to Have No Rights as a Stockholder. The Participant will have no
rights as a stockholder with respect to any Shares subject to the SAR.

10. No Deferral Rights. Notwithstanding anything in Article 13 of the Plan to the
contrary, there shall be no deferral of payment, delivery or receipt of any amounts hereunder.

11. Notice. Any notice or other communication required or permitted hereunder must be
in writing and must be delivered personally, or sent by certified, registered or express mail,
postage prepaid. Any such notice will be deemed given when so delivered personally or, if mailed,
three days after the date of deposit in the United States mail, in the case of the Company to 10801
Nesbitt Avenue South, Bloomington, Minnesota, 55437, Attention: Corporate Secretary and, in the
case of the Participant, to the last known address of the Participant in the Company’s records.

12. Governing Law. This Agreement and the SARs will be construed and enforced in
accordance with, and governed by, the laws of the State of Delaware, determined without regard to
its conflict of law rules.

13. Plan Document Controls. The rights granted under this Agreement are in all
respects subject to the provisions of the Plan to the same extent and with the same effect as if
they were set forth fully herein. If the terms of this Agreement conflict with the terms of the
Plan document, the Plan document will control.

PLATO LEARNING, INC.

By:

Michael A. Morache

President and Chief Executive Officer

Accepted this      day of

     , 200

     

[(Name)]EX-10.33

Exhibit 10.33

PLATO LEARNING, INC.

BOARD OF DIRECTORS’ COMPENSATION PLAN

Effective March 27, 2008, the Board of Directors approved compensation for outside Directors
as follows.

Stock Option Grant and Cash Payment — New Directors Initiation:

	•	 	15,000 Stock Options Grant @ FMV as of close of business on the date of election to the
Board of Directors to vest immediately.

	•	 	Prorated Cash payment ($20,000/12 X number of months remaining until the next Annual
Meeting).

Restricted Stock Award, Stock Option Grant & Cash Payment — Continuing Directors Annual
Retainer & Meeting Preparations:

	•	 	1,000 shares Restricted Stock Award @ FMV as of close of business on the date of the Annual
Meeting to vest immediately with restrictions to lapse the earlier of five years, retirement
or resignation from the Board of Directors [relates to director year going forward].

	•	 	10,000 Stock Options Grant @ FMV as of close of business on the date of the Annual Meeting
to vest immediately [relates to director year going forward].

	•	 	$20,000 to be paid as soon as possible after the date of the Annual Meeting (except to
Non-Employee Chairman of the Board, see below) [relates to director year going forward].

Cash and Stock Option Grant —Non-Employee Chairman of the Board:

	•	 	5,000 Stock Options Grant (in addition to the 10,000 grant as listed above) @ FMV as of
close of business on the date of the Annual Meeting to vest immediately [relates to director
year going forward].

	•	 	$30,000 to be paid as soon as possible after the date of the Annual Meeting (in place of
the $20,000 as listed above) [relates to director year going forward].

Stock Option Grant — Audit, Compensation and Nominating & Governance Committee Chairs:

	•	 	1,500 Stock Options Grant @ FMV as of close of business on the date of the Annual Meeting
to vest immediately [relates to director year going forward].

	 	 	 
	Cash Payment — Attendance at Board and Committee Meetings held in Person:

	 

	 	•	 	$1,500 fee for each Board Meeting attended.

	 	•	 	$2,000 fee to the Chair of the Audit Committee, Compensation Committee, and Nominating &
Governance Committee for each Committee Meeting attended.

	 	•	 	$1,250 fee to the Chair of the Marketing Committee, and any other ad-hoc Committee Chair
named, for each Committee Meeting attended.

	 	•	 	$750 fee to any non-Chair Committee Member, for each Committee Meeting attended.

	 	 	 
	Cash Payment — Attendance at Board and Committee Meetings held via Telephone:

	 

	 	•	 	One-half (1/2) of the amounts listed above under: “Cash Payment – Attendance at Board and
Committee Meetings held in Person”.
	 
	 	 	 	Other
—

	 	•	 	Chairman of the Board has the option to recommend an additional stock option grant based
on the Company’s performance and achievement of goals.

	 	•	 	Chairman of the Board has the option to request a prorated refund of stock options granted
or cash payments made to a Board Member who elects to resign at a time other than at the
Annual Meeting.

	 	•	 	All travel and business expenses relating to meeting attendance or to conduct business on
behalf of PLATO Learning are reimbursed.

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