Document:

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                                                                   EXHIBIT 10.38

                              EMPLOYMENT AGREEMENT

      This AGREEMENT ("Agreement") is made effective as of January 1, 2002 (the
"Effective Date") by and between PLATO Learning, Inc., a Delaware corporation
headquartered in Minneapolis (the "Company"), and ((Name)) ("Executive").

                                WITNESSETH THAT:

      WHEREAS, the Company currently employs Executive as its ((Position)), and
the Company desires to continue to employ Executive as its ((Position)); and

      WHEREAS, Executive desires to continue to be employed by the Company in
that capacity.

      NOW, THEREFORE, for and in consideration of the promises and of the mutual
covenants hereinafter set forth, it is hereby agreed by and between the parties
as follows:

1.    Employment. The Company hereby agrees to employ Executive to perform the
      duties set forth in Section 3 hereof ("Executive Services"), and subject
      to the restrictions of Section 7. Executive hereby accepts continued
      employment to perform Executive Services for the Company under the terms
      and conditions of this Agreement.

2.    Term. The Term of this Agreement shall be twelve (12) months, subject to
      termination pursuant to Section 6. On each annual anniversary of the
      Effective Date, unless earlier terminated pursuant to Section 6, this
      Agreement will automatically renew for an additional twelve (12) months,
      subject to termination pursuant to Section 6.

3.    Duties.  Executive will serve as the Company's ((Position)), and perform
      all the responsibilities and duties set forth in the Executive's job
      description, or any successor thereto which does not materially reduce
      such responsibilities and duties, and any other consistent
      responsibilities and duties assigned or delegated to Executive by the
      Company's Chief Executive Officer.  Executive represents that
      Executive's employment by the Company and performance of the position
      will not violate or interfere with any employment-related agreement
      Executive may have entered into with any previous employer (a "Prior
      Employment Agreement").

4.    Time Commitment.  Executive will devote Executive's time, attention and
      energies to the performance of Executive Services.  Executive may not be
      associated with, consult, advise, work for, be employed by, contract
      with, or otherwise devote any of Executive's time to the pursuit of any
      other work or business activities that may interfere with the
      performance of Executive Services hereunder.  The foregoing shall not
      preclude Executive from devoting reasonable time to the supervision of
      Executive's personal investments, civic, charitable, educational,
      religious and similar types of activities, speaking engagements and
      membership on other boards of directors, provided such activities do not
      interfere in any way with the business of the Company; and provided
      further that, the Executive cannot serve on the board of directors of
      more than one publicly-traded company without the Chief Executive
      Officer's written consent.  The time involved in such activities shall
      not be

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      treated as vacation time. The Executive shall be entitled to keep any
      amounts paid to Executive in connection with such activities (e.g.,
      director fees and honoraria).

5.    Compensation and Benefits.  The Company will pay the following
      compensation to Executive in full consideration for performance of
      Executive Services hereunder in accordance with the Company's
      then-current payroll policies and procedures.

      (a)   Salary. Executive will receive an annual salary of ((BaseSalary)),
            payable in accordance with the Company's then-current payroll
            policies and procedures. The Chief Executive Officer will review
            Executive's salary at least annually. Executive's salary will not be
            reduced, and after any increase the term "salary" for purposes of
            this Agreement shall refer to base salary annualized, as most
            recently increased.

      (b)   Expenses. The Company will reimburse Executive for all reasonable
            and necessary expenses incurred by Executive in connection with the
            performance of Executive Services upon submission by Executive of
            expense reports with substantiating vouchers, in accordance with the
            Company's then-current expense reimbursement policy.

      (c)   Stock Options. Executive shall be entitled to be granted options to
            purchase shares of Company common stock in accordance with the
            Company Stock Option Plan (the "Stock Options"), pursuant to the
            following schedule:

            (i)   Executive is eligible to participate in the annual September
                  Stock Option award program in each year during which this
                  Agreement is in effect. Such options will be granted from an
                  Executive Team pool at the Board's September meetings, at fair
                  market value as of the date of the grant.

            (ii)  Executive is also eligible to participate in the annual
                  performance-based stock option award plan in each year during
                  which this Agreement is in effect. Such options will be
                  granted at the Board's December meetings, at fair market value
                  as of the date of the grant and will be subject to the Company
                  achieving its annual goals.

            (iii) Executive's stock option grants pursuant to subsections (i)
                  and (ii) shall be subject to the vesting schedule contained in
                  the stock option agreement under which they are granted.

            The award of the Stock Options under subsections (i) and (ii) is
            subject to execution by Executive of the then-current Stock Option
            Agreement, provided such agreement contains no terms that are
            inconsistent with this Employment Agreement or Executive's
            Employment Security Agreement or Indemnification Agreement.

      (d)   Benefits.  Executive shall be entitled to participate in such
            group life insurance, major medical, and other employee benefit
            plans and programs (collectively "Benefit Plans") as established
            by the Company in accordance with the applicable

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            terms and conditions of such Benefit Plans, which Benefit Plans may
            be modified or discontinued by the Company at any time; provided,
            however that Executive shall meet the requirements of the Benefit
            Plans for participation and in no event, including breach or
            wrongful termination of this Agreement, shall Executive be entitled
            to any amount of compensation in lieu of participation, unless
            otherwise provided by the terms of the Benefit Plan. The benefits
            under the Benefit Plans available to Executive shall be no less
            favorable than those available to other senior executives, excluding
            the Chief Executive Officer, and commensurate with Executive's
            position and salary; provided that, Executive may not permit or
            cause an increase or improvement in benefits under the Benefit Plans
            without the Company's approval. In the event of termination pursuant
            to Section 6, Executive may elect to continue to participate in
            Company benefits programs through COBRA. In the event of termination
            of Executive without Good Cause or termination by the employee for
            Good Cause as defined in Section 6, the Company will pay the
            difference between the then-current employee portion of the cost of
            said benefits and the COBRA costs.

      (e)   Bonus Compensation.  Executive shall be eligible to receive cash
            bonus compensation for the Company's Fiscal Year 2002, based on
            the performance criteria previously agreed upon by the Chief
            Executive Officer and the Board for that year, and shall remain
            eligible for such cash bonus compensation in subsequent fiscal
            years of this Agreement based on bonus amounts and performance
            criteria to be mutually agreed between the Chief Executive Officer
            and the Board for any given fiscal year of the Company.  Unless
            otherwise specifically agreed, earned cash bonus compensation will
            be paid only while Executive is actively employed by the Company;
            accordingly, if Executive ceases to be actively employed by the
            Company, Executive will only receive a prorated portion of the
            earned cash bonus compensation for the portion of the Company's
            fiscal year that Executive was actively employed by the Company.

6.    Termination.

      (a)   Either party may terminate this Agreement, without Good Cause and
            without any liability on the part of either party, other than as
            provided herein, upon forty-five (45) days prior written notice.
            In such event, Executive, if requested by the Company, will
            continue to render Executive Services and be paid Executive's
            salary during such notice period and up to the date of
            termination, as well as any earned cash bonus compensation
            relative to such period of Executive Services, in accordance with
            the Company's then-current payroll policies and procedures.
            Irrespective of whether Executive performs such Executive
            Services, Executive shall receive, in case of such termination
            without Good Cause by the Company of Executive's employment
            severance payments equivalent to Executive's then-current salary
            for a period of ((Term)).

            Executive's Eligibility to receive benefits under this Section 6(a)
            is subject to Executive's abiding by the provisions of Section 7 of
            this Agreement, and Executive's execution of a general release of
            all claims or potential claims against

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            the Company, in a form prepared by the Company and mutually agreed
            upon between Executive and the Company.

      (b)   The Company may terminate this Agreement at any time upon fourteen
            (14) days written notice for Good Cause.  Good Cause, for the
            purposes of this Agreement, shall mean Executive's:  (i)
            conviction of or plea of nolo contendere to any felony or gross
            misdemeanor involving dishonesty, fraud, or breach of trust under
            any law of the United States or any State thereof; (ii) willful
            engagement in any conduct that materially injures the Company or
            any of its subsidiaries; or (iii) willful and substantial
            nonperformance of assigned duties, provided that such
            nonperformance has continued more than ten days after the Company
            has given written notice of such nonperformance and of its
            intention to terminate Executive's employment because of such
            nonperformance.

            For purposes of this section, no act on Executive's part shall be
            considered "willful" unless it is done by Executive in bad faith or
            without reasonable belief that such action was in the Company's best
            interests.

      (c)   Executive may terminate this Agreement and resign Executive's
            employment at any time upon fourteen (14) days' written notice to
            the Chief Executive Officer for Good Reason. Good Reason, for the
            purpose of this Agreement shall exist if the Company, without
            Executive's written consent:

            (i)   materially reduces the nature, scope, level or extent of
                  Executive's responsibilities, or fails to provide Executive
                  with adequate office facilities and support services, similar
                  to those in place at the effective date of this Agreement, to
                  perform such responsibilities;

            (ii)  reduces Executive's salary below that in effect as of the
                  date of this Agreement;

            (iii) requires Executive to relocate Executive's principal business
                  office or Executive's principal place of residence outside the
                  Minneapolis/Saint Paul, Minnesota Standard Metropolitan
                  Statistical Area (the "Geographical Employment Area"), or
                  assigns to Executive duties that would reasonably require such
                  relocation; or

            (iv)  fails to continue in effect any cash or stock-based incentive
                  or bonus plan, retirement plan, or Benefit Plan, unless (A)
                  the aggregate value (as computed by an independent employee
                  benefits consultant selected by the Company) of all such
                  compensation, retirement and benefit plans, programs and
                  arrangements provided to Executive is not materially less than
                  their aggregate value as of the date of this Agreement, or (B)
                  the same reduction applies uniformly to all senior executives.

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            Severance payments, in case of Executive's termination of this
            Agreement and resignation for Good Reason, shall be made to
            Executive in the same amounts, for the same periods, and subject to
            the same conditions as provided for the Company's termination of
            this Agreement without Good Cause in Section 6(a).

      (d)   Coordination With Employment Security Agreement. If Executive is a
            party to an employment security agreement (the "ESA") with the
            Company, Executive will be entitled to the greater of the payments
            and benefits under this Agreement or the payments and benefits under
            the ESA, but not the sum of such payments and benefits.

7.     Restrictive Covenants.

      (a)   Confidentiality.  Executive agrees not to directly or indirectly:

            (i)   use or disclose, for the benefit of any person, firm or entity
                  other than the Company and its subsidiaries, the Confidential
                  Business Information of the Company or any of its
                  subsidiaries;

            (ii)  distribute or disseminate in any way to anyone other than the
                  Company employees with a "need to know" any Confidential
                  Information in any form whatsoever;

            (iii) copy any Confidential Information other than for use by the
                  Company or any of its subsidiaries;

            (iv)  remove any Confidential Information from the premises of the
                  Company without prior approval of an authorized officer of
                  the Company;

            (v)   fail to safeguard all confidential and/or classified
                  documents; and

            (vi)  copy any confidential and/or classified documents belonging
                  to any of the Company's customers.

            Confidential Business Information means information or material that
            is not generally available to or used by others or the utility or
            value of which is not generally known or recognized as a standard
            practice, whether or not the underlying details are in the public
            domain, including but not limited to its computerized and manual
            systems, procedures, reports, client lists, review criteria and
            methods, financial methods and practices, plans, pricing and
            marketing techniques, business methods and procedures and other
            valuable and proprietary information relating to the pricing,
            marketing, design, manufacture and formulation of educational
            software, as well as information regarding the past, present and
            prospective clients of the Company or any of its subsidiaries, and
            their particular needs and requirements, and their own confidential
            information.

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            Upon termination of employment under this Agreement, with or without
            Good Cause, Executive agrees to return to the Company all policy and
            procedure manuals, records, notes, data, memoranda, and reports of
            any nature (including computerized and electronically stored
            information) which are in Executive's possession and/or control
            which relate to (i) the Confidential Business Information of the
            Company or any of its subsidiaries, (ii) the business activities or
            facilities of the Company or its past, present, or prospective
            clients, as well as any original documents related to Executive's
            employment with the Company, other than Executive's originals of
            this Agreement, Executive's Employment Security Agreement and
            Executive's Indemnification Agreement, and any successors thereto.

      (b)   Non-Compete.  During the period of employment and for the ((Term))
            term of employment under this Agreement (the "Restricted Period"),
            Executive will not directly or indirectly, on Executive's behalf,
            or as a partner, officer, director, trustee, member, employee, or
            otherwise, within the United States or in any foreign market in
            which Executive was engaged in activities on behalf of the Company
            or any of its subsidiaries, own, engage in or participate in, in
            any way, any business that is similar to or competitive with any
            actual or planned business activity engaged in or planned by the
            Company or any of its subsidiaries at the time the employment
            under this Agreement was terminated, if in the course of such
            ownership or employment, it could reasonably be anticipated that
            Executive would be required to use or disclose the Confidential
            Business Information of the Company or any of its subsidiaries.
            However, this Agreement shall not prohibit ownership of up to 2%
            of the shares of stock of any such corporation whose stock is
            listed on a national securities exchange or is traded in the
            over-the-counter market.

            Executive further agrees that during the Restricted Period,
            Executive will promptly notify the Company of any business with
            which Executive is associated or in which Executive has an ownership
            interest and provide the Company with a description of Executive's
            duties or interests.

      (c)   Non-Solicitation.  During the Restricted Period, Executive will
            not directly or indirectly, for the purpose of selling services
            and/or products provided or planned by the Company or any of its
            subsidiaries at the time the employment under this Agreement was
            terminated, call upon, solicit or divert any actual customer or
            prospective customer of the Company or any of its subsidiaries,
            unless employed by the Company to do so.  An actual customer, for
            purposes of this Section, is any customer to whom the Company or
            any of its subsidiaries has provided services and/or products
            within one year prior to Executive's termination of employment
            under this Agreement.  A prospective customer, for purposes of
            this Section, is any prospective customer to whom the Company or
            any of its subsidiaries sought to provide services and/or products
            within one year prior to the date of Executive's termination of
            employment under this Agreement when Executive had knowledge of or
            was involved in such solicitation.

                                      -6-
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            Executive further agrees that during the Restricted Period Executive
            shall not directly or indirectly induce any person to leave the
            employ of the Company or any of its subsidiaries, or solicit any
            person who is currently or was an employee of the Company or any of
            its subsidiaries at any time during the twelve months prior to
            Executive's termination of employment under this Agreement.

      (d)   Judicial Modification.  If the final judgment of a court of
            competent jurisdiction declares that any term or provision of this
            Section 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.

8.    Remedies. In the event Executive breaches or threatens to breach and
      provision of Section 7 of this Agreement, the Company shall be entitled to
      injunctive relief, enjoining or restraining such breach or threatened
      breach. Executive acknowledges that the Company's remedy at law is
      inadequate and that the Company and its subsidiaries will suffer
      irreparable injury if such conduct is not prohibited.

      Executive and the Company agree that, because of the difficulty of
      ascertaining the amount of damages in the event that Executive breaches
      Section 7 of this Agreement, the Company shall be entitled to recover, at
      its option, as liquidated damages and not as a penalty, a sum equal to six
      (6) month's annual salary of the employee(s) solicited to leave the
      Company's employ. The parties further agree that the existence of this
      remedy will not preclude employer from seeking or receiving injunctive
      relief.

      Executive further agrees that the covenants contained in Section 7 shall
      be construed as separate and independent of other provisions of this
      Agreement and the existence of any claim by Executive against the Company
      or any of its subsidiaries, except for a claim that Executive was
      terminated without Good Cause or terminated Executive's employment for
      Good Reason, shall not constitute a defense to the enforcement by the
      Company of either of these Sections.

9.    Property Rights.  All discoveries, designs, improvements, ideas,
      inventions, intellectual property, creations, and works of art, whether
      or not patentable or subject to copyright, relating to the business of
      the Company or any of its subsidiaries, or its clients, conceived,
      developed or made by Executive during employment under this Agreement,
      either solely or jointly with others (hereafter "Developments") shall
      automatically become the sole property of the Company.  Executive shall
      immediately disclose to the Company all such Developments and shall,
      without additional compensation, execute all assignments, application or
      any other documents deemed necessary by the Company to perfect the
      Company's rights therein.  These obligations shall continue throughout
      the Restricted

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      Period under this Agreement with respect to Developments conceived,
      developed or made by Executive during the period of employment under this
      Agreement.

      The Company acknowledges and agrees that the provisions of this section
      shall not apply to inventions or for which no equipment, supplies,
      facility or trade secret information of the Company or its clients were
      used by Executive and which were developed entirely on Executive's own
      time unless (a) such inventions relate (i) to the business of the Company
      or (ii) to the Company's actual or demonstrably anticipated research or
      development or (b) such inventions result from any work performed by
      Executive for the Company.

10.   Assignments.  Neither party shall have the right or power to assign any
      rights or duties under this Agreement without the written consent of the
      other party, provided, however, that the Company shall have the right to
      assign this Agreement without consent pursuant to any corporate
      reorganization, merger, or other transaction involving a change of
      control of the Company or any of its subsidiary companies, in which
      case, further rights and duties of the Company and Executive are set
      forth in Executive's Employment Security Agreement, or any successor
      agreement thereto.  Any attempted assignment in breach of this Section
      10 shall be void.

      If Executive performs services and duties for any subsidiary or other
      affiliated entity of the Company, then the provisions of Sections 7 and 9
      shall apply to the confidential information and business activities,
      property rights, clients, and employees of that subsidiary or other
      entity.

11.   Certain Reductions of Payments by the Company.  If it is determined by
      the independent auditor (the "Auditor") jointly selected by Executive
      and the Company and paid by the Company that any payment, benefit or
      distribution by or on behalf of the Company to or for the benefit of
      Executive (whether paid or payable or distributed or distributable
      pursuant to the terms of this Agreement or otherwise) (the "Payments")
      are or will become subject to any excise taxes, then the Auditor shall
      determine if the payment of excise taxes in addition to any federal,
      state, local or other income, excise or other taxes ("Other Taxes")
      payable by Executive with respect to the Payments will cause Executive
      to pay an amount of excise and Other Taxes such that the net payment
      Executive will receive after payment of all excise and Other Taxes on
      payments under this Agreement is less than if the payment he would
      receive was reduced to the maximum amount payable without imposition of
      any excise taxes ("Economic Detriment").  If the Auditor determines that
      the Executive will incur an Economic Detriment as a result of the
      receipt of the full payment, the portion of the Payments made to
      Executive under this Agreement will be reduced to the maximum possible
      amount that can be paid to Executive without Executive incurring any
      Economic Detriment.  The Auditor shall be a nationally recognized United
      States public accounting firm that has not, during the two years
      preceding the date of its selection, acted in any way on behalf of the
      Company or any of its subsidiaries.

12.   Severability. Each section, paragraph, clause, sub-clause and provision
      (collectively "Provisions") of this Agreement shall be severable from each
      of the others, and if for any reason the Section, clause, sub-clause or
      provision is invalid or unenforceable, such

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      invalidity or unenforceability shall not prejudice or in any way affect
      the validity or enforceability of any other Provision hereof.

13.   Miscellaneous.

      (a)   This Agreement, Executive's Employment Security Agreement,
            Indemnification Agreement, Confidentiality Agreement, and any
            successor agreements thereto, contain the entire agreement of the
            parties with respect to the employment of Executive and supersede
            all other understandings, whether written or oral; provided,
            however, that Executive shall comply with all reasonable policies,
            procedures and other requirements of the Company which are not
            inconsistent with those three agreements.

      (b)   Failure on the part of either party to insist upon strict compliance
            by the other with respect to any of the terms, covenants and
            conditions hereof, shall not be deemed a subsequent waiver of such
            term, covenant or condition.

      (c)   The provisions of any Section containing a continuing obligation
            after termination shall survive such termination whether with or
            without cause and even if occasioned by the Company's breach or
            wrongful termination.

      (d)   This Agreement may not be modified except in a written amendment
            signed by the parties; provided, however, that the Company may amend
            or terminate its Benefit Plans, cash bonus Plan, and any Company
            policies, procedures and other requirements of the Company, subject
            to subsection (a) above and to Sections 5(d), 5(e) and 6(c), in its
            sole discretion.

      (e)   Except for action by the Company to enforce the restrictive
            covenants of Section 7, any dispute, controversy or difference
            that may arise between the parties hereto out of or in relation to
            or in connection with this Agreement or for the breach thereof
            which cannot be settled amicably by the parties within thirty (30)
            days shall be finally and exclusively settled by arbitration in
            Minneapolis, Minnesota, in accordance with the Commercial
            Arbitration Rules of the American Arbitration Association then in
            effect.  The arbitrator shall have discretion to award the
            prevailing party reasonable attorney's fees.  In the event of
            litigation under this Agreement, the court shall have discretion
            to award the prevailing party reasonable attorney's fees.

      (f)   The headings in this Agreement are inserted for convenience and
            identification only and are not intended to describe, interpret,
            define or limit the scope, extent, or intent of this Agreement or
            any provision hereof. Each party has cooperated in the preparation
            of this Agreement. As a result, this Agreement shall not be
            construed against any party on the basis that the party was the
            draftsperson.

      (g)   All forms of compensation referred to in this letter are subject to
            reduction to reflect withholding for applicable income, payroll and
            other taxes.

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14.   Governing Law. It is the intention of the parties hereto that all
      questions with respect to the construction, formation, and performance of
      this Agreement and the rights and liabilities of the parties hereto shall
      be determined in accordance with the laws of the State of Minnesota. The
      parties hereto submit to the jurisdiction and venue of the courts of
      Hennepin County, Minnesota in respect to any dispute arising out of this
      agreement.

15.   Insurance. For the period from the date hereof through at least the fifth
      anniversary of Executive's termination of employment from the Company, the
      Company agrees to maintain Executive as an insured party on all directors'
      and officers' liability insurance maintained by the Company for the
      benefit of its directors and officers on at least the same basis as all
      other covered individuals.

16.   Notices.  Any notice required pursuant to this Agreement will be in
      writing and will be deemed given upon the earlier of (i) delivery
      thereof, if by hand, (ii) five business days after mailing if sent by
      mail (registered or certified mail, postage prepaid, return receipt
      requested), (iii) the next business day after deposit if sent by a
      recognized overnight delivery service, or (iv) upon transmission if sent
      by facsimile transmission or by electronic mail, with return
      notification (provided that any notice sent by facsimile or electronic
      mail shall also promptly be sent by one of the means described in
      clauses (i) through (iii) of this Section.  All notices will be
      addressed as follows or to such other address as a party may identify in
      a written notice to the other party:

            to the Company:   PLATO Learning, Inc.
                              Attn: Chief Executive Officer
                              10801 Nesbitt Avenue South
                              Bloomington, MN 55437-3109

            to Executive:     ((Name))
                              PLATO Learning, Inc.
                              10801 Nesbitt Avenue South
                              Bloomington, MN 55437-3109

      Each party named above may change its address and that of its
      representative for notice by the giving of notice thereof in the manner
      hereinabove provided.

17.   Counterparts.  This Agreement may be executed in one or more
      counterparts, all of which together shall constitute but one Agreement.

      IN WITNESS WHEREOF, the parties hereto, have executed this Employment
Agreement effective as of the day and year first above written.

                                    PLATO LEARNING, INC.

                                    By:
------------------------------         ---------------------------------------
          ((NAME))                       John Murray
                                         President and Chief Executive Officer

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<PAGE>
                  EXECUTIVE TEAM EMPLOYMENT AGREEMENT SUMMARY

Dated January 1, 2002
<TABLE>
<CAPTION>
                                                                                     EXECUTIVE       EXECUTIVE BASE    EXECUTIVE
 TYPE   EXECUTIVE NAME                   EXECUTIVE POSITION                             TERM             SALARY         OPTIONS
<S>     <C>               <C>                                                        <C>             <C>               <C>
  B     Nancy Hanna       Vice President Human Resources                              6 Months          $140,000          N/A

  B     John Super        Vice President Strategic Planning                           6 Months          $150,000          N/A

  B     Mike Reynolds     Vice President North American Sales                         9 Months          $135,000          N/A

  B     Jim Riesterer     Vice President Marketing                                    6 Months          $150,000          N/A

  B     Rob Foshay        Vice President Instructional Design & Quality Assurance     6 Months          $160,000          N/A
</TABLE><PAGE>
                                                                   Exhibit 10.39

                          EMPLOYMENT SECURITY AGREEMENT

      THIS EMPLOYMENT SECURITY AGREEMENT ("Agreement") is entered into this 24th
day of January, 2002 ("Effective Date"), between PLATO LEARNING, INC., a
Delaware Corporation (the "Company"), and ((FirstName)) ((LastName)) (the
"Executive"), the Company's ((Title)). This Agreement hereby rescinds the
previous Employment Security Agreement entered into by the above-mentioned two
parties on January 30, 2001.

                                WITNESSETH THAT:

      WHEREAS, Executive currently serves as a key employee of the Company and
the Company has determined that it is in the best interests of the Company and
its stockholders to secure the services of the Executive and to ensure the
Executive's continued dedication and objectivity in the event of any negotiation
or other action that could lead to, or create the possibility of, a Change in
Control of the Company (as defined below), without concern as to whether the
Executive might be hindered or distracted by personal uncertainties or risks
created by such possible Change in Control; and

      WHEREAS, the Company desires to encourage the Executive's full attention
and dedication to the Company, and this Agreement is intended for that purpose.

      NOW, THEREFORE, it is hereby agreed by and between the parties, for good
and valuable consideration the receipt and sufficiency of which are hereby
acknowledged, as follows:

1.    Retention Bonus. (a) As compensation for services rendered to the Company,
      the Company shall pay to Executive (or Executive's beneficiary or estate),
      a lump sum cash amount equal to Executive's Annual Compensation (as
      defined below), which shall be known as "Retention Bonus". The Retention
      Bonus shall be payable only after a Change in Control, and no later than
      the earliest to occur of (i) the date that is thirty days after the date
      of the Change in Control so long as the Executive is employed by the
      Company (or the person who assumes this Agreement) on the date of the
      Change in Control, and (ii) the date of the Change in Control, if the
      Executive's employment is terminated prior to the Change in Control by the
      Company without Good Cause (as defined below) or by the Executive for Good
      Reason (as defined below) at a time when the Company is a party to a
      letter of intent that contemplates effecting, or a binding written
      agreement (subject to customary closing conditions) to effect, a
      transaction contemplating a Change in Control.

2.    Payments and Benefits Upon a Change in Control.  If within twelve (12)
      months after a Change in Control or during the Period Pending a Change
      in Control (as defined below), (i) the Company shall terminate
      Executive's employment with the Company without Good Cause or (ii)
      Executive shall voluntarily terminate such employment with Good Reason,
      the Company shall, within 30 days of Executive's Employment Termination
      (as

                                       1
<PAGE>
      defined below), make the payments and provide the benefits described
      below, in lieu of any other severance payments:

      (a)   Cash Payment. The Company shall continue Executive's current Annual
            Compensation for a period of((Term))months through regular payroll
            payments.

      (b)   Welfare Benefit Plans. With respect to each Welfare Benefit Plan (as
            defined below), for the period beginning on Executive's Employment
            Termination and ending on the earlier of (i)((Term)) months
            following Executive's Employment Termination, or (ii) the date
            Executive becomes covered by a welfare benefit plan or program
            maintained by an entity other than the Company which provides
            coverage or benefits at least equal, in all respects, to such
            Welfare Benefit Plan, Executive shall continue to participate in
            such Welfare Benefit Plan on the same basis and at the same cost to
            Executive as was the case immediately prior to the Change in Control
            (or, if more favorable to Executive, as was the case at any time
            hereafter), or, if any benefit or coverage cannot be provided under
            a Welfare Benefit Plan because of applicable law or contractual
            provisions, Executive shall be provided with substantially similar
            benefits and coverage for such period. Immediately following the
            expiration of the continuation period required by the preceding
            sentence, Executive shall be entitled to continued group health
            benefit plan coverage (so-called "COBRA coverage") in accordance
            with Section 4980B of the Internal Revenue Code of 1986, as amended
            (the "Code"), it being intended that COBRA coverage shall be
            consecutive to the benefits and coverage provided for in the
            preceding sentence.

      (c)   Stock Incentive Plans. All stock options granted under any Company
            or TRO Learning, Inc. (the Company's predecessor) stock incentive or
            stock option plan (collectively referred to as the "SIPs"), will
            immediately become fully vested and exercisable upon the Change in
            Control. All restricted stock granted under the SIPs will
            immediately be fully vested and distributed to Executive upon the
            Change in Control.

      (d)   Salary to Date of Employment Termination. The Company shall pay to
            Executive any unpaid salary or other compensation of any kind earned
            with respect to any period prior to Executive's Employment
            Termination and a lump sum cash payment for accumulated but unused
            vacation earned through such Employment Termination.

3.    Definitions.  For purposes of this Agreement:

      (a)   "Good Cause" shall mean: (i) Executive's conviction of any criminal
            violation involving dishonesty, fraud, or breach of trust; (ii)
            Executive's willful engagement in any misconduct in the performance
            of Executive's duty that materially injures the Company; or (iii)
            Executive's willful and substantial nonperformance of assigned
            duties, provided that such nonperformance has

                                       2
<PAGE>
            continued more than ten days after the Company has given written
            notice of such nonperformance and of its intention to terminate
            Executive's employment because of such nonperformance.

      (b)   "Good Reason" shall exist if, without Executive's express written
            consent:

            (i)   The Company shall materially reduce the nature, scope, level
                  or extent of Executive's responsibilities from the nature,
                  scope, level or extent of such responsibilities prior to the
                  Change in Control, or shall fail to provide Executive with
                  adequate office facilities and support services to perform
                  such responsibilities;

            (ii)  The Company shall reduce Executive's salary below that in
                  effect as of the date of this Agreement (or as of the Change
                  in Control, if greater);

            (iii) The Company shall require Executive to relocate Executive's
                  principal business office or his principal place of residence
                  outside the Minneapolis/St. Paul, Minnesota, Standard
                  Metropolitan Statistical Area (the "Geographical Employment
                  Area"), or assign to Executive duties that would reasonably
                  require such relocation; or

            (iv)  The Company shall fail to continue in effect any cash or
                  stock-based incentive or bonus plan, retirement plan, welfare
                  benefit plan, or other benefit plan, program or arrangement,
                  unless the aggregate value (as computed by an independent
                  employee benefits consultant selected by the Company) of all
                  such compensation, retirement and benefit plans, programs and
                  arrangements provided to Executive is not materially less than
                  their aggregate value as of the date of this Agreement (or as
                  of the Change in Control, if greater).

      (c)   "Change in Control" shall be deemed to occur on the earliest of:

            (i)   The acquisition by any individual, entity or group (a
                  "Person"), including any "person" within the meaning of
                  Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
                  1934, as amended (the "Exchange Act"), of beneficial ownership
                  within the meaning of Rule 13d-3 promulgated under the
                  Exchange Act, of 50% or more of either (A) the then
                  outstanding share of common stock of the Company (the
                  "Outstanding Company Common Stock") or (B) the combined voting
                  power of the then outstanding securities of the Company
                  entitled to vote generally in the election of directors (the
                  "Outstanding Company Voting Securities"); provided, however,
                  that the following acquisitions shall not constitute a Change
                  in Control: (C) any acquisition directly from the Company
                  (excluding any acquisition resulting from the exercise of a
                  conversion or exchange privilege in respect of outstanding
                  convertible or exchangeable securities),

                                       3
<PAGE>
                  (D) any acquisition by the Company, (E) any acquisition by an
                  employee benefit plan (or related trust) sponsored or
                  maintained by the Company or any corporation controlled by the
                  Company or (F) any acquisition by any corporation pursuant to
                  a reorganization, merger or consolidation involving the
                  Company if, immediately after such reorganization, merger or
                  consolidation, each of the conditions described in clause (A),
                  (B) and (C) of paragraph (c) below shall be satisfied; and
                  provided further that, for purposes of Clause (D), if any
                  Person (other than the Company or any employee benefit plan
                  (or related trust) sponsored or maintained by the Company or
                  any corporation controlled by the Company) shall become the
                  beneficial owner of 50% or more of the Outstanding Company
                  Common Stock or 50% or more of the Outstanding Company Voting
                  Securities by reason of an acquisition by the Company, and
                  such Person shall, after such acquisition by the Company,
                  become the beneficial owner of any additional share of the
                  Outstanding Company Common Stock or any additional Outstanding
                  Company Voting Securities and such beneficial ownership is
                  publicly announced, such additional beneficial ownership shall
                  constitute a Change in Control;

            (ii)  individuals who, as of the date hereof, constitute the Board
                  (the "Incumbent Board") cease for any reason to constitute at
                  least a majority of such Board; provided, however, that any
                  individual who becomes a director the Company subsequent to
                  the date hereof whose election, or nomination for election by
                  the Company's stockholders, was approved by the vote of at
                  least a majority of the directors then comprising the
                  Incumbent Board shall be deemed to have been a member of the
                  Incumbent Board; and provided further, that no individual who
                  was initially elected as a director of the Company as a result
                  of an actual or threatened election contest, as such terms are
                  used in Rule 14a-11 of Regulation 14A promulgated under the
                  Exchange Act, or any other actual or threatened solicitation
                  of proxies or consents by or on behalf of any Person other
                  than the Board shall be deemed to have been a member of the
                  Incumbent Board;

            (iii) approval of the stockholders of the Company or a
                  reorganization, merger or consolidation unless, in any such
                  case, immediately after such reorganization, merger or
                  consolidation, (A) more than 60% of the then outstanding
                  shares of common stock of the corporation resulting from such
                  reorganization, merger or consolidation and more than 60% of
                  the combined voting power of the then outstanding securities
                  of such corporation entitled to vote generally in the election
                  of directors is then beneficially owned, directly or
                  indirectly, by all or substantially all of the individuals or
                  entities who were the beneficial owners, respectively, of the
                  Outstanding Company Common Stock and the Outstanding Company
                  Voting Securities immediately prior to such reorganization,
                  merger or consolidation and in substantially the same
                  proportions relative to each other as their ownership,
                  immediately prior to such reorganization, merger or

                                       4
<PAGE>
                  consolidation, of the Outstanding Company Stock and the
                  Outstanding Company Voting Securities, as the case may be, (B)
                  no Person (other than the Company, any employee benefit plan
                  (or related trust) sponsored or maintained by the Company or
                  the corporation resulting from such reorganization, merger or
                  consolidation (or any corporation controlled by the Company)
                  and any Person which beneficially owned, immediately prior to
                  such reorganization, merger or consolidation, directly or
                  indirectly, 50% or more of the Outstanding Company Common
                  Stock or the Outstanding Company Voting Securities, as the
                  case may be, beneficially owns, directly or indirectly, 50% or
                  more of the then outstanding shares of common stock of such
                  corporation or 50% or more of the combined voting power of the
                  then outstanding securities of such corporation entitled to
                  vote generally in the election of directors and (C) at least a
                  majority of the members of the board of directors of the
                  corporation resulting from such reorganization, merger or
                  consolidation were members of the Incumbent Board at the time
                  of the execution of the initial agreement or action of the
                  Board of Directors providing for such reorganization, merger
                  or consolidation; or

            (iv)  approval by the stockholders of the Company of (A) a plan of
                  complete liquidation or dissolution of the Company or (B) the
                  sale or other disposition of all or substantially all of the
                  assets of the company other than to a corporation with respect
                  to which, immediately after such sale or other disposition,
                  (C) more than 60% of the then outstanding shares of common
                  stock thereof and more than 60% of the combined voting power
                  of the then outstanding securities thereof entitled to vote
                  generally in the election of directors is then beneficially
                  owned, directly or indirectly, by all or substantially all of
                  the individuals and entities who were the beneficial owners,
                  respectively, of the Outstanding Company Common Stock and the
                  Outstanding Company Voting Securities immediately prior to
                  such sale or other disposition and in substantially the same
                  proportions relative to each other as their ownership,
                  immediately prior to such sale or other disposition, of the
                  Outstanding Company Common Stock and the Outstanding Company
                  Voting Securities, as the case may be, (D) no Person (other
                  than the Company, any employee benefit plan (or related trust)
                  sponsored or maintained by the Company or such corporation (or
                  any corporation controlled by the Company) and any Person
                  which beneficially owned, immediately prior to such sale or
                  other disposition, directly or indirectly, 50% or more of the
                  Outstanding Company Common Stock or the Outstanding Company
                  Voting Securities, as the case may be, beneficially owns,
                  directly or indirectly, 50% or more of the then outstanding
                  shares of common stock thereof or 50% or more of the combined
                  voting power of the then outstanding securities thereof
                  entitled

                                       5
<PAGE>
                  to vote generally in the election of directors and (E) at
                  least a majority of the members of the board of directors
                  thereof were members of the Incumbent Board at the time of the
                  execution of the initial agreement or action of the Board
                  providing for such sale or other disposition.

      (d)   "Annual Compensation" shall mean Executive's base annual salary in
            effect on the date of: (i) this Agreement; (ii) the Change in
            Control; or (iii) Executive's Employment Termination, whichever is
            greater.

      (e)   "Employment Termination" shall mean the effective date of: (i)
            Executive's voluntary termination of employment with the Company
            with Good Reason; or (ii) the termination of Executive's employment
            by the Company without Good Cause.

      (f)   "Welfare Benefit Plan" shall mean each welfare benefit plan
            maintained or contributed to by the Company, including, but not
            limited to a plan that provides health (including medical and
            dental), life, accident or disability benefits or insurance, or
            similar coverage, in which Executive was participating at the time
            of the Change in Control.

      (g)   "Period Pending a Change in Control" shall mean the period after the
            approval by the Company's stockholders and prior to the effective
            time of (i) a merger or consolidation of the Company with one or
            more other corporations as a result of which the holders of the
            outstanding voting stock of the Company immediately prior to such
            merger or consolidation hold less than 60% of the voting stock of
            the surviving or resulting corporation, or (ii) a transfer of
            substantially all of the property of the Company other than to an
            entity of which the Company owns at least 80% of the voting stock.

4.    Mitigation and Set-Off.  Executive shall not be required to mitigate
      Executive's damages by seeking other employment or otherwise. The
      Company's obligations under this Agreement shall not be reduced in any
      way by reason of any compensation or benefits received (or foregone) by
      Executive from sources other than the Company after Executive's
      Employment Termination, or any amounts that might have been received by
      Executive in other employment had Executive sought such other
      employment.  Executive's entitlement to benefits and coverage under
      this Agreement shall continue after, and shall not be affected by,
      Executive's obtaining other employment after his Employment
      Termination, provided that any such benefit or coverage shall not be
      furnished if Executive expressly waives the specific benefit or
      coverage by giving written notice of waiver to the Company.

5.    Litigation Expenses.  The Company shall pay to Executive all
      out-of-pocket expenses, including attorneys' fees, incurred by
      Executive in the event Executive successfully enforces any provision of
      this Agreement in any action, arbitration or lawsuit.

                                       6
<PAGE>
6.    Assignment Successors.  This Agreement may not be assigned by the
      Company without the written consent of Executive but the obligations of
      the Company under this Agreement shall be the binding legal obligations
      of any successor to the Company by merger, consolidation or otherwise,
      and in the event of any business combination or transaction that
      results in the transfer of substantially all of the assets or business
      of the Company, the Company will cause the transferee to assume the
      obligations of the Company under this Agreement.  This Agreement may
      not be assigned by Executive during Executive's life, and upon
      Executive's death will inure to the benefit of Executive's heirs,
      legatees and legal representatives of Executive's estate.

7.    Interpretation. The validity, interpretation, construction and performance
      of this Agreement shall be governed by the laws of the State of Minnesota,
      without regard to the conflict of law principles thereof. The invalidity
      or unenforceability of any provision of this Agreement shall not affect
      the validity or enforceability of any other provision of this Agreement.
      The parties both agree to submit to jurisdiction and venue in the Courts
      of Hennepin County, Minnesota.

8.    Withholding.  The Company may withhold from any payment that it is
      required to make under this Agreement amounts sufficient to satisfy
      applicable withholding requirements under any federal, state or local
      law.

9.    Amendment or Termination. This Agreement may be amended at any time by
      written agreement between the Company and Executive. This Agreement
      terminates on January 24, 2004, provided that, if a change in control
      occurs prior to the effective date of such termination, the termination of
      this Agreement shall not be effective and Executive shall be entitled to
      the full benefits of this Agreement. Any such amendment or termination
      shall be made pursuant to a resolution of the Board.

10.   Financing. Cash and benefit payments under this Agreement shall constitute
      general obligations of the Company. Executive shall have only an unsecured
      right to payment thereof out of the general assets of the Company.
      Notwithstanding the foregoing, the Company may, by agreement with one or
      more trustees to be selected by the Company, create a trust on such terms
      as the Company shall determine to make payments to Executive in accordance
      with the terms of this Agreement.

11.   Severability.  In the event that any provision or portion of this
      Agreement shall be determined to be invalid or unenforceable for any
      reason, the remaining provisions of this Agreement shall be unaffected
      thereby and shall remain in full force and effect.

12.   Certain Reductions of Payments by the Company.  If it is determined by
      the independent auditor (the "Auditor") jointly selected by Executive
      and the Company and paid by the Company that the payments under this
      Agreement are or will become subject to any excise taxes, then it shall
      determine if the payment of excise taxes in addition to any federal,
      state, local or other income, excise or other taxes ("Other Taxes")
      payable by

                                       7
<PAGE>
      Executive with respect to the payments under this Agreement will cause
      Executive to pay an amount of excise and Other Taxes such that the net
      payment Executive will receive after payment of all excise and Other Taxes
      on payments under this Agreement is less than if the payment he would
      receive was reduced to the maximum amount payable without imposition of
      any excise taxes ("Economic Detriment"). If the Auditor determines that
      the Executive will incur an Economic Detriment as a result of the receipt
      of the full payment, the payment made to Executive under this Agreement
      will be reduced to the maximum possible amount that can be paid to
      Executive without him incurring any Economic Detriment. The Auditor shall
      be a nationally recognized United States public accounting firm that has
      not, during the two years preceding the date of its selection, acted in
      any way on behalf of the Company or any of its subsidiaries.

      IN WITNESS WHEREOF, the parties hereto, on the day and year first written
above, pursuant to a duly authorized resolution of the Board of Directors of the
Company, have executed this Agreement, which represents an amendment to and/or
pre-termination renewal of a predecessor Agreement dated January 30, 2001,
between the Executive and the Company.

PLATO LEARNING, INC.

By:
   ---------------------------------      ------------------------------------
   John Murray                             ((FirstName))((LastName))
Its:  PRESIDENT AND                        EXECUTIVE
     CHIEF EXECUTIVE OFFICER

                                       8
<PAGE>
                                    EXECUTIVE
                         EMPLOYMENT SECURITY AGREEMENTS

TWO YEAR EMPLOYMENT SECURITY AGREEMENTS DATED JANUARY 24, 2002 (EXCEPT MELSEN'S
DATED FEBRUARY 4, 2002):

<TABLE>
<CAPTION>
                              Annual           Retention          Severance
Name                          Compensation       Bonus**          Payments*         Term
----------------------------------------------------------------------------------------------
<S>                          <C>               <C>               <C>               <C>
Murray, John                 $  270,000        $  270,000        $  540,000        24 months

Buske, John M                $  200,000        $  200,000        $  300,000        18 months

Foshay, Wellesley R          $  160,000        $  160,000        $  160,000        12 months

Hanna, Nancy L               $  140,000        $  140,000        $  140,000        12 months

Kilgarriff, Robert M         $  180,000        $  180,000        $  270,000        18 months

LePage, David H              $  160,000        $  160,000        $  160,000        12 months

Melsen, Gregory J            $  170,000        $  170,000        $  255,000        18 months

Preese, Frank                $  155,000        $  155,000        $  155,000        12 months

Reynolds, Michael J          $  135,000        $  135,000        $  135,000        12 months

Riesterer, James S           $  150,000        $  150,000        $  150,000        12 months

Super, John C                $  150,000        $  150,000        $  150,000        12 months

Schuster, Steven R           $  119,600              None        $   59,800        6 months

Murphy, Mary Jo              $  115,700              None        $   57,850        6 months

      TOTALS:                $2,105,300        $1,870,000        $2,532,650
                             ==========        ==========        ==========
</TABLE>

* If within twelve months after a Change in Control or during the Period Pending
a Change in Control (i) the Company terminates Executive's employment with the
Company without Good Cause or (ii) Executive shall voluntarily terminate
employment with Good Reason, the Company shall, within 30 days of Executive's
Employment Termination, make the payments and provide other benefits (outlined
in Agreement), in lieu of any other severance payments.

** Lump sum cash payment payable only after a Change in Control and no later
than the earliest to occur of (i) the date that is thirty days after the date of
the Change in Control so long as the Executive is employed by the Company on the
date of the Change, and (ii) the date of the Change in Control, if the
Executive's employment is terminated prior to the Change in Control by the
Company without Good Cause or by the Executive for Good Reason at a time when
the Company is a party to a letter of intent that contemplates effecting, or a
binding written agreement to effect, a transaction contemplating a Change in
Control.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]