Document:

2009 Executive and Management Bonus Plan

 Exhibit 10.1 
 SUMTOTAL SYSTEMS 
 EXECUTIVE AND MANAGEMENT BONUS PLAN 
 2009 
 SECTION 1 - INTRODUCTION 
 Plan Objectives 
 The goal of SumTotal Systems’ Executive
and Management Bonus Plan (the “Plan”) is to enhance and reinforce the goals of SumTotal Systems (the “Company”) by providing Participants with additional financial incentives and rewards for attainment of such goals. Final
approval of the payment of any awards made under the Plan, including without limitation resolution of any dispute under this Plan, is subject to the sole discretion of, for Section 16 officers, the Compensation Committee of the Board of
Directors (“Compensation Committee”) and for all other participants, the Chief Executive Officer. 
 Effective Date 
 The Plan is effective for the year beginning January 1, 2009 and ending December 31, 2009. 
 SECTION 2 - DEFINITIONS 
 Definitions of terms as used throughout this Plan document are as follows: 
  

	 	•	 	 “Quarter” means the three-month period coinciding with the Company’s fiscal quarters. 

  

	 	•	 	 “Year” means the twelve-month period coinciding with the Company’s annual fiscal year. 

  

	 	•	 	 (defined above) “ Participant(s)” means an employee, or employees, as the case may be, designated and approved by the Compensation Committee and/or the
Chief Executive Officer to participate in the Plan. 

  

	 	•	 	 “Total Bookings” is the number published in the final bookings report. 

  

	 	•	 	 “RoD Subscription Bookings (LMS)” is the number published in the final bookings report for Learning Management RoD product, excluding services and
renewals. 

  

	 	•	 	 “RoD Subscription Bookings (PM)” is the number published in the final bookings report for Performance Management RoD product, excluding services and
renewals 

  

	 	•	 	 Cash Flow from Operations is the number published as the net cash provided by operating activities in the Cash Flow Statement of the financials.

  

	 	•	 	 The definition of any terms herein in the singular shall also include the plural. 

  

	 	•	 	 This Plan is intended to be a “bonus program” as defined under U.S. Department of Labor regulation 2510.3-2(c) and shall be construed and administered in
accordance with such intention.

  

 Page 1 of 5 

 SECTION 3 - PLAN ADMINISTRATION 
 Administration 
 The Plan shall be administered by the Chief Executive Officer, and, in the case of
Section 16 Officers, by the Compensation Committee. 
 Participation 
 Participation in the Plan shall be limited to regular employees of the Company. In selecting participants, the Chief Executive Officer and/or the Compensation Committee shall consider an individual’s position and
potential impact on the Company’s business results and performance. A Participant who joins the plan during the Year will have his bonus award prorated to be effective on the first day of the month following their eligibility to participate in
the Plan. 
 Bonus Awards 
 A bonus fund shall be
established for purposes of determining the total award allocations to each Participant. Computation of the total bonus pool is described in Section 4 of this Plan. Each Participant award is determined based on the Participant’s target
incentive percentage of base salary and the achievement of company financial goals as discussed in Section 4. 
 Payment of Bonuses

 Normal Payment. The bonus is not considered earned until the last day of the applicable quarter. In order to receive a payout under the
Plan, the Participant receiving the payout must be an active employee on the last day of the applicable quarter. If termination of employment occurs for any reason other than death, disability, or approved leave of absence, no bonus shall be deemed
earned for the Plan period in which such termination occurs.” 
 Payment of 2009 Bonuses, in the U.S. only, shall be made 50% in cash and 50% in
restricted stock units, which vest immediately. 
 Payment Under Conditions of Approved Leave of Absence, Death or Disability. If an employee is on an
approved Leave of Absence (subject to SumTotal’s Leave of Absence policy), death or disability, either during the quarter or the year in which a payment is made, or on the date of a Plan payment, such Participant shall be deemed to have earned
a proportionate share of what would otherwise be that period’s actual bonus. The amount of such award shall be the amount which would have been earned had the Participant been actively working for the Company during the full period, multiplied
by a fraction, the numerator of which is the number of days that the Participant was actively at work during that award period and the denominator of which is the number of days in that full award period. If the Participant is actively working
through the full period, but dies, becomes disabled or is on an approved Leave of Absence from a date following the full period through the date of a Plan payment, the Participant shall receive the same payment as if the Participant was working
actively for the Company on the date of such Plan payment. 
  

 Page 2 of 5 

 Payment Under Conditions of Termination. The right to participate in this Plan will become void upon termination
of employment for any reason, except as specifically set forth effective as of the last day of employment. 
 Participant Transfer. If a Participant
is transferred to another position within the Company during the quarter or year, and experiences a change in his eligibility to participate in this Plan, partial awards will be made based on a pro rata determination as described in this section.

 Timing of Payment. Notwithstanding anything in the Plan to the contrary, bonus payments
shall in no event be paid after the later of (i) March 15 following the calendar year in which such bonus is earned or (ii) the 15th
day of the 3rd month following the close of the Company’s fiscal year in which such bonus is earned. This Plan is intended to comply with the
requirements of Section 409A of the Internal Revenue Code and the final regulations and any guidance promulgated thereunder (“Section 409A”) so that none of the payments and benefits to be provided hereunder will be subject to the
additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. The Company and the Participants agree to work together in good faith to consider amendments to this Plan and to take such reasonable
actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to the Participants under Section 409A. 
 Plan Changes 
 The Chief Executive Officer, or in the case of Section 16 Officers, the Compensation
Committee, reserves the right to amend, revoke, or terminate this plan or any portion of it, at any time, for any reason whatsoever, with or without cause or advance notice. Payouts may not be made under this Plan at any time if, in the sole
discretion of the Chief Executive Officer or Compensation Committee, the overall performance of the Company does not warrant the payment of these awards. 
 Other Conditions 
 Right of Assignment. No Participant may sell, assign, transfer, discount, or pledge as collateral for a loan
or otherwise anticipate his right to any distribution under this plan. In the event of a Participant’s death, payment shall be made to the Participant’s designated beneficiary, or in the absence of such designation, to the
Participant’s estate. 
 Right of Employment. Nothing in this Agreement alters the “at will” nature of every Participant’s
employment. In other words, a Participant or the Company may terminate a Participant’s employment relationship for any reason or for no reason, with or without cause or advance notice. 
 Withholding for Taxes. The Company shall have the right, and the Participant consents, to deduct from all payments under this Plan any federal or state taxes or
other payroll withholdings as required by law to be withheld with respect to such payments. 
  

 Page 3 of 5 

 SECTION 4 - OPERATING RULES 
 Plan Design 
 The Plan is based 100% on financial indicators as defined below. The targets and the payouts are cumulative on a
quarter-by-quarter basis. For instance, the payout for the second quarter is based on the cumulative results for the first and second quarters, less any amount paid for the first quarter results. There will be no payouts in excess of 100% of
year-to-date targets during the first three quarters. Any additional bonus beyond the 100% target will be paid as part of the fourth quarter payment. 
 In
the event of the failure to achieve the thresholds set forth in the Plan, the Chief Executive Officer or in the case of Section 16 Officers, the Compensation Committee, may in its sole discretion, approve payment of bonuses. 
 The bonus will be paid on a quarterly basis based on the following indicators and weightings: 
  

	 	•	 	 25% RoD Subscription Bookings (LMS) 

  

	 	•	 	 25% RoD Subscription Bookings (PM) 

  

	 	•	 	 25% Total Bookings 

  

	 	•	 	 25% Cash Flow from Operations 

 Plan Payout based on
achieving the following levels for RoD Subscriptions (LMS), RoD Subscriptions Bookings for (PM), Total Bookings and Cash Flow from Operations. 
  

	 	•	 	 Achieve less than 80% of plan
                             0% payout 

  

	 	•	 	 Achieve 80% of plan
                                         
 50% payout 

  

	 	•	 	 Achieve 100% of plan
                                      100% payout

  

	 	•	 	 Straight-line payout between 80-100% of plan. 

 Each financial indicator stands on its own for purposes of assessing quarterly results however, no payment of any financial indicator will be made if cash flow from operations is not positive. 
 If the Corporate Financial Performance exceeds 100% in all of the elements (all bookings indicator and cash flow from operations) then the payout is
increased up to a maximum of 140% payout at 120% achievement. 
  

 Page 4 of 5 

 EXAMPLE AT 100% OF TARGET 
  

			
	Assumptions:	  	 $100,000 base salary, 25% target bonus
  
 (0.25 x $100,000=$25,000)
 Target met at 100% for each indicator

  

							
	 Indicator
	  	Per Quarter
Maximum	  	Annual Total
Maximum
	 RoD Subscription Bookings LMS 25%
	  	$	1,562.50	  	$	6,250.00
	 RoD Subscription Bookings PM 25%
	  	$	1,562.50	  	$	6,250.00
	 Total Bookings 25%
	  	$	1,562.50	  	$	6,250.00
	 Cash Flow from Operations 25%
	  	$	1,562.50	  	$	6,250.00
	 Total Business Financials Bonus Target
	  	$	6,250.00	  	$	25,000.00

 Note: In the U.S.  1/2 of the bonus will be paid in Restricted Stock Units, vested immediately. 
  

 Page 5 of 5Separation Agreement between Ray Villareal and SumTotal Systems, Inc.

 Exhibit 10.2 
 February 11, 2009 
 Ramon Villareal 
 Dear Ray: 
 This letter confirms the agreement (this “Agreement”) between you and SumTotal
Systems, Inc., (the “Company”) concerning the terms of your separation and offers you the separation compensation described below in exchange for a release of claims and certain obligations. 
 1. Separation. Your last day of employment with the Company shall be January 6, 2009 the Separation Date. Because this is after
December 31, 2008, you are not entitled to severance under the terms of your offer letter or any other agreement with the Company. 
 2. Accrued Salary and Paid Time Off. On the Separation Date, the Company will pay you all accrued salary, and all accrued and unused vacation earned through the Separation Date, subject to standard payroll deductions and
withholdings. You are entitled to these payments regardless of whether or not you sign this Agreement. 
 3. Management and
Executive Bonus Plan. You will be eligible to receive any earned payout from the fourth quarter of the 2008 Executive and Management Bonus Plan (“Bonus Plan”) regardless of whether the payout for the fourth quarter of the Bonus Plan is
paid out after the Separation Date. 
 4. Separation Pay. The Company will provide a separation payment to you in the amount of
$157,500, which is equivalent to six (6) months base salary (the “Separation Payment”). In addition, the Company will provide you with a Separation Adjustment equal to $45,000. The Separation Payment and the Separation Adjustment
shall be made in one lump sum, on the next payroll date after you sign this Agreement and your release has become effective. The Separation Payment and the Separation Adjustment will be subject to standard payroll deductions and withholdings, the
satisfaction of any outstanding debts to the Company, and your timely return of all Company Property. 
 5. Health Insurance.
Your group insurance coverage will terminate on January 31, 2009. As of February 1, 2009, to the extent provided by the federal COBRA law, state insurance laws and the Company’s current group health insurance policies, you will be
eligible to continue your group health insurance benefits and, provided you make a timely election of COBRA, the Company will reimburse you for COBRA premiums for the six month period following the Separation Date; provided, however, that if you
accept other employment that provides you with comparable benefits or somehow otherwise become eligible for coverage with comparable benefits, the Company’s obligation to continue reimbursing you for your COBRA benefits shall cease. You agree
to notify the Company in writing upon your acceptance of other full-time employment. You may continue your coverage after that time at your own expense. Later, you may be able to convert to an individual policy through the provider of the
Company’s health insurance. 

 6. Stock Options. The 125,000 stock options (grant numbers: 00005306 and 5307) which were
granted on November 5, 2007 and the 25,000 stock options (grant numbers 00005418 and 00005419) granted to you on June 6, 2008 will continue to vest through your Separation Date. The maximum period of time during which the Stock Options
shall remain exercisable, and all other terms and conditions of the Stock Options, shall be as specified in the relevant Stock Option agreements and relevant stock plans under which the Stock Options were granted. The term “Stock Options”
shall not include any rights you may have under the Company’s employee stock purchase plan. 
 7. Restricted Stock Award.
All of your restricted stock awards (grant number 00005308) that are outstanding as of the date of the Separation Date (“Restricted Stock”) shall become fully vested and free from any contractual rights of the Company to repurchase or
otherwise reacquire the Restricted Stock as a result of your termination of employment. All shares of Restricted Stock which have not yet been delivered to you or your designee (whether because subject to joint escrow instructions or otherwise)
shall be promptly delivered to you or your designee upon the occurrence of a Separation Date. 
 8. Restricted Stock Units.
Upon the Effective Date of this Agreement, you will vest as to fifty percent (50%) of your restricted stock units. Such vested restricted stock units shall then be settled through the issuance of shares of Company common stock to you as
soon as reasonably practicable thereafter, but in no event later than March 15, 2009. The remaining fifty percent (50%) of your RSU Grant (grant number 00005308) will be immediately forfeited and you shall no longer have any rights or
benefits with respect to those forfeited restricted stock units after the Separation Date. 
 9. Other Compensation or
Benefits. You acknowledge that, except as expressly provided in this Agreement, you will not receive any additional compensation, separation pay or benefits after the Separation Date. 
 10. Expense Reimbursements. You agree that, within ten (10) days of the Separation Date, you will submit your final documented expense
reimbursement statement reflecting all business expenses you incurred through the Separation Date, if any, for which you seek reimbursement. The Company will reimburse you for these expenses pursuant to its regular business practice. 
 11. Return of Company Property. Within three (3) days of your Separation Date, you agree to return to the Company all Company
documents (and all copies thereof) and other Company property which you have had in your possession at any time, including, but not limited to, Company files, notes, drawings, records, business plans and forecasts, financial information,
specifications, computer-recorded information, tangible property (including, but not limited to, computers), credit cards, entry cards, identification badges and keys; and, any materials of any kind which contain or embody any proprietary or
confidential information of the Company (and all reproductions thereof). The only exception will be that you may retain your laptop computer after you leave the Company. 
 12. Proprietary Information Obligations. Both during and after your employment you will refrain from any unauthorized use or disclosure of the Company’s proprietary or confidential information or
materials and you acknowledge your continuing obligations under your Employee Invention, Confidentiality, Unfair Competition, and Nonsolicitation Agreement not to use or disclose any confidential or proprietary information of the Company without
prior written authorization from a duly authorized representative of the Company. A copy of your Employee Invention, Confidentiality, Unfair Competition, and Nonsolicitation Agreement is attached hereto as Exhibit A. 

 13. Confidentiality. The provisions of this Agreement shall be held in strictest confidence
by you and the Company and shall not be publicized or disclosed in any manner whatsoever; provided, however, that: (a) you may disclose this Agreement to your immediate family; (b) the parties may disclose this Agreement in
confidence to their respective attorneys, accountants, auditors, tax preparers, and financial advisors; (c) the Company may disclose this Agreement as necessary to fulfill standard or legally required corporate reporting or disclosure
requirements; and (d) the parties may disclose this Agreement insofar as such disclosure may be necessary to enforce its terms or as otherwise required by law. 
 14. Nondisparagement. Both you and the Company agree not to disparage the other party, and the other party’s officers, directors, employees, shareholders and agents, in any manner likely to be
harmful to them or their business, business reputation or personal reputation. Nothing herein prevents you and the Company from responding accurately and fully to any question, inquiry or request for information when required by legal process,
provided, however, that you shall notify the Company within three business days of any request or demand from you to provide any such information. 
 15. Release. In exchange for the Separation Payment and other consideration under this Agreement to which you would not otherwise be entitled, you hereby release, acquit and forever discharge the Company, its parent,
affiliates and subsidiaries, and its and their respective officers, directors, agents, servants, employees, attorneys, shareholders, successors, assigns and affiliates, of and from any and all claims, liabilities, demands, causes of action, costs,
expenses, attorneys fees, damages, indemnities and obligations of every kind and nature, in law, equity, or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed, arising out of or in any way related to agreements,
events, acts or conduct at any time prior to and including the execution date of this Agreement, including but not limited to: all such claims and demands directly or indirectly arising out of or in any way connected with your employment with the
Company or the termination of that employment; claims or demands related to salary, bonuses, commissions, stock, stock options, or any other ownership interests in the Company, vacation pay, fringe benefits, expense reimbursements, separation pay,
or any other form of compensation; claims pursuant to any federal, state or local law, statute, or cause of action including, but not limited to, the federal Civil Rights Act of 1964, as amended, including without limitation claims for
attorneys’ fees; the federal Americans with Disabilities Act of 1990; the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”); the California Fair Employment and Housing Act, as amended; tort law; contract law;
wrongful discharge; discrimination; harassment; fraud; defamation; emotional distress; and breach of the implied covenant of good faith and fair dealing. This Agreement does not waive rights or claims that may arise after the date the Agreement is
executed by Employee, including but not limited to rights or claims regarding the enforcement of the terms of this Agreement, and it does not waive rights or claims that may not, as a matter of law, be waived, such as claims made under California
Labor Code section 2802. In addition, while Employee understands that this Agreement does not affect his right to file a charge with or participate as a witness in an investigation or proceeding conducted by the EEOC or any similar state agency, by
accepting the terms provided herein and the consideration provided to him as a result, he gives up his right to receive any relief whatsoever, including but not limited to financial benefit or monetary recovery, from any lawsuit or settlement
related to such rights and claims as he now gives up, whether the lawsuit is filed or the settlement reached by the EEOC, another agency, or anyone else. 
 16. ADEA Waiver. You acknowledge that you are knowingly and voluntarily waiving and releasing any rights you may have under the ADEA, as amended. You also acknowledge that the consideration given for the
waiver and release in the preceding paragraph hereof is in addition to anything of value to which you were already entitled. You further acknowledge that you have been advised by this 

 
writing, as required by the ADEA, that: (a) you have carefully read and fully understand the provisions of this Agreement; (b) you are, through
this Agreement, releasing the Company from any and all claims you may have against it, its parent, subsidiaries, predecessors, successors, affiliates and related entities; (c) you have knowingly and voluntarily agreed to all of the terms set
forth in the agreement; (d) you knowingly and voluntarily intend to be legally bound by the Agreement; (e) your waiver and release do not apply to any rights or claims that may arise after the Effective Date of this Agreement; (f) you
have been advised hereby are advised that you have the right to consult with an attorney prior to executing this Agreement; (g) you have forty-five (45) days to consider this Agreement (although you may choose to voluntarily execute this
Agreement earlier); (h) you have seven (7) days following the execution of this Agreement to revoke the Agreement; and (i) this Agreement shall not be effective until the date upon which the revocation period has expired, which shall
be the eighth day after this Agreement is executed by you, provided that the Company has also executed this Agreement by that date (“Effective Date”). 
 17. Section 1542 Waiver. YOU UNDERSTAND THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. You acknowledge that you have read and understand Section 1542 of the California
Civil Code which reads as follows: “A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his
settlement with the debtor.” You hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to your release of any claims you may have against the Company.

 18. Miscellaneous. This Agreement, including Exhibit A and Exhibit B, constitutes the complete, final and exclusive
embodiment of the entire agreement between you and the Company with regard to this subject matter. It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes
any other such agreements, promises, warranties or representations. This Agreement may not be modified or amended except in a writing signed by both you and a duly authorized officer of the Company. This Agreement shall bind the heirs, personal
representatives, successors and assigns of both you and the Company, and inure to the benefit of both you and the Company, their heirs, successors and assigns. If any provision of this Agreement is determined to be invalid or unenforceable, in whole
or in part, this determination will not affect any other provision of this Agreement and the provision in question shall be modified by the court so as to be rendered enforceable. This Agreement shall be deemed to have been entered into and shall be
construed and enforced in accordance with the laws of the State of California as applied to contracts made and to be performed entirely within California. 

 If this Agreement is acceptable to you, please sign below and return the original to me by no later than
forty-five calendar days after receipt of this letter. If you do not return the signed Agreement to me by April 1, 2009, this offer will be automatically withdrawn. 
  

			
	Sincerely,
	
	SUMTOTAL SYSTEMS, INC.
		
	By:	 	/s/ Pamela E. Drew
		 	Pamela E. Drew
		 	Vice President, Global Human Resources & Talent Management

 Exhibit A - Employee Invention, Confidentiality, Unfair Competition, and Nonsolicitation Agreement

 Exhibit B – Decisional Unit Information 
 I HAVE CAREFULLY REVIEWED AND CONSIDERED THE TERMS OF THIS AGREEMENT; I FULLY UNDERSTAND ALL OF ITS TERMS AND VOLUNTARILY AGREE TO EACH OF THEM; AND AM LEGALLY BOUND BY THIS AGREEMENT. 
  

					
	Dated: 2/15/09	 		 	 Ramon Villareal
 Employee’s Name
(Printed)

			
	 	 		 	/s/ Ramon Villareal
		 		 	Signature

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