Document:

exv10w01

 

Exhibit 10.1

PLATO LEARNING, INC.

EMPLOYEE RESTRICTED STOCK AGREEMENT

     PLATO Learning, Inc., a Delaware corporation (the “Company”), hereby grants to                      (the
“Employee”) on this            day of                     ,                      (the “Grant Date”), pursuant to the provisions of the PLATO Learning,
Inc. 2006 Stock Incentive Plan (the “Plan”), an award (the “Award”) of                      shares of the Company’s
Common Stock, $.01 par value (“Stock”), subject to the terms and conditions set forth below.

     1. Award Subject to Acceptance of Agreement. The Award shall become null and void
unless the Employee shall accept this Agreement by executing it in the space provided below and
return it to the Company within 60 days following the Grant Date.

     2. Vesting of Shares; Forfeiture. Except as otherwise provided in the Plan and this
Section 2, the Award shall vest in four installments, each equal to 25% of the Stock subject to the
Award, on each of the first four anniversaries of the Grant Date, contingent upon the Participant
having provided continuous employment to the Company or an Affiliate from the Grant Date through
each such anniversary. Any portion of the Stock subject to the Award that is not vested upon the
termination of the Participant’s employment for any reason shall be forfeited automatically as of
such date. Notwithstanding the foregoing; all unvested awards shall vest if the Company terminates
the Employee’s employment without “Cause” or the Employee terminates employment for “Good Reason”
within 24 months following a “Change in Control” (as each term is defined in the Employee’s
employment agreement with the Company of even date herewith, as may be subsequently amended or
superseded). For purposes of this Agreement, “Vest” “Vested” and “Vesting” means that a share of
Restricted Stock ceases to be subject to a risk of forfeiture.

     3. Additional Terms and Conditions of Award.

     3.1 Section 83(b) Election. The Employee may elect within thirty (30) days after the
Grant Date, pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, to include
in his gross income for a taxable year in which the stock is purchased the excess of (a) the fair
market value of the shares covered by the Award on the purchase date over (b) the purchase price
paid for such shares.

     3.2 Withholding Taxes. As a condition precedent to the Award, the Employee shall,
upon request by the Company, pay to the Company such amount of cash as the Company may be required,
under all applicable federal, state or local laws or regulations, to withhold and pay over as
income or other withholding taxes (the “Required Tax Payments”) with respect to the Award. The
Employee may elect to satisfy such withholding tax obligation by having the Company withhold Stock
having a fair market value equal to the Company’s minimum withholding obligation. If the Employee
shall fail to advance the Required Tax Payments after request by the Company, the Company may, in
its discretion, deduct any Required Tax Payments from any amount then or thereafter payable by the
Company to the Employee, either in cash or in Stock.

 

 

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     3.3 Tax Consequences. The Employee has reviewed with the Employee’s own tax advisors
the federal, state, local and foreign tax consequences of this investment and the transactions
contemplated by this Agreement. The Employee is relying solely on such advisors and not on any
statements or representations of the Company or any of its agents. The Employee understands that
the Employee (and not the Company) shall be responsible for the Employee’s own tax liability that
may arise as a result of this investment or the transactions contemplated by this Agreement.

     3.4 Stock. A certificate or shares in book entry evidencing the Award shall be issued
by the Company in the Employee’s name, pursuant to which Employee shall have voting rights and
shall be entitled to receive all dividends unless and until the Award are forfeited pursuant to the
provisions of this Agreement. The certificate or shares in book entry shall bear a legend
evidencing the nature of the Award, and the Company will cause the certificate to be delivered upon
issuance to the Secretary of the Company or to such other depository as may be designated by the
Company as a depository for safekeeping until the Stock vests or is forfeited pursuant to the terms
of the Plan and this Agreement. The Employee shall deliver to the Company a stock power, endorsed
in blank, relating to the Award then subject to the forfeiture restrictions. Upon vesting of the
Award, the Company shall cause a new certificate or certificates or shares in book entry form to be
issued without legend in the name of the Employee for the shares then vested. Notwithstanding any
other provisions of this Agreement, the issuance or delivery of any shares of Stock (whether
subject to restrictions or unrestricted) may be postponed for such period as may be required to
comply with applicable requirements of any national securities exchange or any requirements under
any law or regulation applicable to the issuance or delivery of such shares. The Company shall not
be obligated to issue or deliver any shares of Stock if the issuance or delivery thereof shall
constitute a violation of any provision of any law or of any regulation of any governmental
authority or any national securities exchange.

     3.5 Award Confers No Right to Continued Employment. In no event shall the granting of
the Award or its acceptance by the Employee give or be deemed to give the Employee any right to
continued employment by the Company.

     3.6 Status of Award. The Employee agrees that the Award will not be sold or otherwise
disposed of in any manner, which would constitute a violation of any applicable federal or state
securities laws. The Employee also agrees that Award may not be sold, transferred or otherwise
alienated or hypothecated by the Employee other than by will or the laws of descent and
distribution until the restrictions are removed or lapse. Employee also agrees (i) that the
certificates representing the Award may bear such legend or legends as the Company deems
appropriate in order to assure compliance with applicable securities laws, (ii) that the Company
may refuse to register the transfer of the Award on the stock transfer records of the Company if
such proposed transfer would be in the opinion of counsel satisfactory to the Company constitute a
violation of any applicable securities law and (iii) that the Company may give related instructions
to its transfer agent, if any, to stop registration of the transfer of the Award.

     3.7 Counterparts. This Agreement may be executed in two counterparts each of which
shall be deemed an original and both of which together shall constitute one and the same
instrument.

 

 

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     3.8 Agreement Subject to Plan. This Agreement is subject to the provisions of the
Plan, and shall be interpreted in accordance therewith, except where specifically provided
otherwise in this Agreement. The Employee hereby acknowledges receipt of a copy of the Plan.

	 	 	 	 	 
	 	PLATO LEARNING, INC.

 	 
	 	By:  	 	 
	 	 	Michael A. Morache 	 
	 	 	 	 
	 

	 	 	 	 	 
	Accepted this ___day of

_______________, 200___

_____________________

[Name of Employee]exv10w02

 

Exhibit 10.2

PLATO LEARNING, INC.

BOARD OF DIRECTORS’ COMPENSATION PLAN

Effective March 21, 2007, 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 — for Board and Committee Meeting Attendance:

	•	 	$1,500 fee for each Board Meeting attended ($750 for each telephonic Board Meeting attended)

	•	 	$2,000 fee to the Audit Chair and Nominating & Governance Committee Chair for each Committee
Meeting attended (except $1,000 fee for each telephonic Committee Meeting attended)

	•	 	$1,250 fee to the Compensation Committee Chair for each Committee Meeting attended, and any
other ad-hoc Committee Chair named in the future (except $625 fee for each telephonic Committee
Meeting attended).

	•	 	$750 fee to the Marketing Committee Chair for each Committee Meeting attended (except $375 fee
for each telephonic Marketing Committee Meeting attended).

	•	 	$750 fee to non-Chair Audit, Compensation, Nominating & Governance and any ad-hoc Committee
Members, for each Committee Meeting attended by each (except $375 fee for each telephonic
Committee Meeting attended).

	•	 	$500 fee to non-Chair Marketing Committee Members, for each Committee Meeting attended by each
(except $250 fee for each telephonic Committee Meeting attended).

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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