Document:

Independent Contractor Agreement - Erika Rottenberg

 Exhibit 10.1 
 SumTotal Systems, Inc. 
 INDEPENDENT CONTRACTOR AGREEMENT 
 Contractor’s Name: __Erika Rottenberg ______________________________________________________________ 
 Contractor’s Federal Tax ID Number: _______________________________________________________________ 
 Type of Business
Entity: ___________________________________________________________________________ 
 AGREEMENT 
 This Independent Contractor Agreement (this “Agreement”) is made and entered into as of August 1, 2008 (the “Effective Date”) by the
above-named Contractor with SUMTOTAL SYSTEMS, INC., a Delaware corporation, including its wholly-owned subsidiaries. In consideration of the covenants and conditions hereinafter set forth, SumTotal Systems and Contractor agree as follows:

  

	1.	Definitions. 

 For purposes of this Agreement, the following
definitions shall apply: 
 (a) “SumTotal Systems” means SumTotal Systems, Inc., a Delaware corporation, of Mountain View,
California, and its wholly-owned subsidiaries, successors and assigns. 
 (b) “Contractor” means the above-named contractor, its
successors and assigns, and includes without limitation its officers, employees, directors, shareholders, agents and representatives. 
 (c)
Reserved. 
 (d) “Confidential Information” means any type of information or material disclosed to or known by Contractor as a
consequence of or through Contractor’s retention by SumTotal Systems (including information conceived, originated, discovered, or developed in whole or in part by Contractor), which is not generally known by non-SumTotal Systems personnel and
including but not limited to information which relates to research, development, trade secrets, know how, inventions, technical data, software, manufacturing, purchasing, accounting, engineering, marketing, merchandising and selling, business plans
or strategies, and information entrusted to SumTotal Systems or its principal officers or employees by third parties. Confidential Information also includes any data or business or financial books, records or other information of or pertaining to
SumTotal Systems. INFORMATION GENERALLY KNOWN OR READILY ASCERTAINABLE BY PROPER MEANS AT OR AFTER THE TIME THAT CONTRACTOR FIRST LEARNs OF SUCH INFORMATION, OR GENERAL INFORMATION OR KNOWLEDGE WHICH CONTRACTOR WOULD HAVE LEARNED IN THE COURSE
OF SIMILAR RETENTION OR WORK ELSEWHERE IN THE TRADE, SHALL NOT BE DEEMED TO BE CONFIDENTIAL INFORMATION. In any dispute between SumTotal Systems and Contractor over whether information is Confidential Information or not, it shall be
Contractor’s burden to show that such information is not Confidential Information. 
 (e) Reserved. 
  

	2.	Results, Deliverables and Performance. 

 Contractor shall achieve
the results and provide the deliverables and/or services set forth in each statement of work (each a “Statement of Work”) similar to that which is attached as Exhibit A in accordance with the terms and conditions of this Agreement,
and on the price, delivery dates and specifications described in each Statement of Work. Both parties shall execute each Statement of Work and each is incorporated herein by this reference. The terms of this Agreement will control over any
conflicting terms in the Statements of Work. Contractor may not delegate the performance of specific duties hereunder and must personally perform all work. SumTotal Systems shall be concerned only with the results accomplished and the deliverables
provided, not with the details and methods of Contractor’s performance. All services to be performed by Contractor are to be performed at SumTotal Systems’ or Contractor’s premises or at such other location as may be mutually agreed.
Contractor acknowledges that, unless otherwise agreed to in writing, SumTotal Systems will not provide facilities or premises for Contractor’s use, except that SumTotal Systems will provide a laptop and electronic mail access to Contractor.

  

	3.	Delivery and Payment Terms. 

 Time is of the essence in the
performance of services hereunder. Contractor shall pay all expenses incident to providing services under this Agreement, and SumTotal Systems will not reimburse any of those expenses, except to the extent it may expressly agree otherwise in a
Statement of Work. SumTotal Systems’ only payment obligation is to Contractor. SumTotal agrees to pay Contractor under the terms set forth in the applicable Statement of Work. 
  

	4.	Obligations of Contractor. 

 (a) Reserved.

 (b) Reserved. 
 (c)
Statutory Notice. The parties acknowledge that Contractor shall be and act as an independent contractor in its performance under this Agreement, and that, as of August 1, 2008, Contractor is not an employee of SumTotal Systems.
Contractor is hereby notified that, notwithstanding anything else that may be contained in this Agreement to the contrary, the assignment of inventions in this Agreement does not apply to 

  

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inventions for which no equipment, supplies, facilities, or trade secret information of SumTotal Systems was used and which were developed entirely on
Contractor’s own time, unless (a) the invention relates (i) directly to the business of SumTotal Systems, or (ii) to SumTotal Systems’ actual or demonstrably anticipated research or development, or (b) the invention
results from any work performed by Contractor for the SumTotal Systems. 
  

	5.	Reserved. 

  

	6.	Confidentiality. 

 The parties recognize that, in performing
services pursuant to this Agreement, Contractor possibly may obtain Confidential Information about SumTotal Systems. Similarly, during the term of this Agreement, Contractor possibly may have or obtain confidential, proprietary or trade secret
information that belongs to third parties (including third parties who have retained or employed Contractor). Contractor therefore agrees to the following: 
 (a) SumTotal Systems’ Confidential Information. Contractor shall maintain all Confidential Information in the strictest confidence, and shall take all necessary precautions needed to preserve the
confidentiality of Confidential Information. Except as required in Contractor’s duties to SumTotal Systems, Contractor shall never directly or indirectly use, disseminate, lecture upon, publish articles concerning, make known, or otherwise
disclose or make available to any person, firm, corporation or other entity not confidentially bound to SumTotal Systems, any Confidential Information without written permission from SumTotal Systems. If Contractor is served with any subpoena or
other compulsory judicial or administrative process calling for production of Confidential Information, Contractor will immediately notify SumTotal Systems in order that SumTotal Systems may take such action as it deems necessary to protect its
interest. 
 (b) Insider Trading. Contractor understands that confidential information about SumTotal Systems or other publicly traded
companies may be considered material nonpublic information under the securities laws. Contractor agrees that it will not enter into any transactions involving the securities of SumTotal Systems or of other publicly traded companies in violation of
the securities laws. 
 (c) Confidential Information Belonging to Others. Contractor shall not improperly obtain, attempt to
obtain, use, disseminate, disclose or transfer to SumTotal Systems any confidential, proprietary or trade secret information that belongs to any third party. This paragraph does not preclude Contractor from using its general knowledge and experience
in performing services pursuant to this Agreement, regardless of whether that general knowledge and experience was gained while retained or employed by any third party. 
  

	7.	Equitable Relief. 

 Contractor acknowledges that any breach of this
Agreement may cause irreparable harm to SumTotal Systems for which remedies at law will not adequately compensate SumTotal Systems. Therefore, in the event of such breach or impending breach, SumTotal Systems may obtain injunctive or other equitable
relief in addition to any damages or other legal remedies that SumTotal Systems may have available. 
  

	8.	Independent Contractor. 

 As of August 1, 2008, Contractor is
an independent contractor and is not an employee of SumTotal Systems. Nothing herein shall create any partnership, joint venture or similar relationship between Contractor and SumTotal Systems, and neither Contractor nor SumTotal Systems can be
bound by the other to any contract, arrangement or understanding with any third party as a result of this Agreement. Contractor shall be free to provide services to third parties while this Agreement is in effect and the Company acknowledges
that Contractor has advised Company that Contractor will be employed by another company on a full-time basis and SumTotal Systems has no objection to such employment. If Contractor’s employment with another Company prevents her from fulfilling
her duties under this Agreement, SumTotal Systems shall have no obligation to pay any compensation to Contractor after such termination of this Agreement. Contractor shall not be presently entitled to participate in any SumTotal Systems
401(k) or pension plans, health insurance, health and welfare plans, and stock option or stock purchase plans, regardless of whether these plans presently exist or are created in the future, as a result of entering into this Agreement. For
avoidance of doubt, this independent contractor relationship shall not alter any benefits that Contractor would otherwise be entitled to as a former employee of SumTotal Systems in accordance with the terms of any applicable benefit plans.

  

	9.	Contractor’s Responsibility for its own Business. 

 Contractor
represents to SumTotal Systems that it is solely responsible for its own business, and Contractor agrees to maintain that responsibility throughout the term of this Agreement. That responsibility includes, but is not limited to, the following:

 (a) Reserved. 
 (b)
Taxes. Except as otherwise determined in the reasonable discretion of SumTotal Systems, Contractor shall file all reports and returns and pay all federal, state and local taxes that are applicable to Contractor’s business or activities,
including income and expenses required to be reported on Form 1040, Schedule C, business occupation taxes, self-employment taxes (e.g., Social Security and Medicare) and all legally required payroll taxes, including wage withholding,
Social Security taxes, unemployment taxes, and workers’ compensation insurance or taxes. SumTotal Systems shall not be responsible for withholding or paying any taxes on any payments that it makes to Contractor pursuant to this Agreement.

 (c) Reserved. 
  

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 (d) Business Expenses and Licenses. Contractor is solely responsible for all of its own costs of
its performance pursuant to this Agreement, except to the extent that SumTotal Systems may expressly agree otherwise in a Statement of Work, and Contractor is solely responsible for all other costs of conducting its business. This includes but is
not limited to all costs for business licenses, insurance, travel, communications, secretarial services, facilities, vehicles, equipment, and supplies, regardless of whether these costs are incurred by directly Contractor. Contractor is responsible
for obtaining and maintaining all licenses that are required for the provision of services hereunder. 
 (e) Contractor’s Equipment
and Facilities. Contractor is responsible for providing all equipment and facilities needed to fulfill its obligations hereunder; provided, however, that contractor may retain possession of Contractor’s laptop computer that Contractor was
issued in connection with Contractor’s prior employment with the Company. Contractor shall be entitled to retain the laptop computer after the termination of the consulting relationship. Contractor’s duties under this Agreement may be
performed outside of the places of business of SumTotal Systems, and if so Contractor is responsible for the costs of the place of business from which its duties under this Agreement are to be performed. 
  

	10.	Term and Termination. 

 This Agreement shall remain in effect until
December 31, 2008, unless the Contractor and SumTotal Systems agree to such earlier termination. In the event of a breach by a party, the other may terminate this Agreement on 5 days’ prior written notice to the other party if the
breaching party fails to cure such breach within such 5-day period; provided that if the breach is not capable of being cured, the termination may be made effective immediately. Failure of Contractor to meet the delivery deadlines or to deliver
acceptable work product to SumTotal Systems shall entitle SumTotal Systems to terminate this Agreement at its option on 10 days’ prior written notice to Contractor without opportunity to cure; provided, however, that in the event of such
termination Contractor shall be paid pro rata for acceptable services actually provided through the date of such termination. Sections 2, 3, 4, 5, 6, 7, 9(b), 9(c), 9(d), 11, 12 and 13 shall survive termination of this Agreement. 
  

	11.	Warranties of Contractor. 

 (a) Warranties.
Contractor represents and warrants to SumTotal Systems that Contractor has the right to execute and perform this Agreement, and doing so will not violate any existing agreement or obligation between Contractor and a third party. 
 (b) Indemnification by Contractor. Contractor shall indemnify, defend, and hold SumTotal Systems and its successors, officers, directors
and employees harmless from any and all actions, causes of action, claims, demands, costs, liabilities, expenses and damages arising out of or in connection with the breach or alleged breach of Contractor’s warranties in Section 11(a).
Contractor may, upon written notice to SumTotal Systems, undertake to conduct all proceedings or negotiations in connection therewith, assume the defense thereof, and if it so undertakes, it shall also undertake all other required steps or
proceedings to settle or defend any such action, including the employment of counsel which shall be satisfactory to SumTotal Systems, and payment of all expenses. 
 Indemnification by SumTotal Systems. Through the term of this Agreement, SumTotal Systems shall continue to indemnify Contractor pursuant to the terms of the Indemnification Agreement between Contractor and
SumTotal Systems dated April 14, 2004 and this Agreement shall serve as an amendment to the Indemnification Agreement to the extent necessary. To avoid doubt, this Agreement shall not limit any indemnification rights Contractor may have from
her service as an officer of SumTotal Systems, whether such rights arise from contract, operation of law, or otherwise. In addition, SumTotal Systems shall hold Contractor harmless from any and all actions, causes of action, claims, demands, costs,
liabilities, expenses and damages arising out of or in connection with Contractor’s provision of services under this Agreement, except those actions, causes of action, claims, demands, costs, liabilities, expenses and damages arising out of
Contractor’s gross negligence or willful misconduct in the performance of her duties. SumTotal Systems may, upon written notice to Contractor, undertake to conduct all proceedings or negotiations in connection therewith, assume the defense
thereof, and if it so undertakes, it shall also undertake all other required steps or proceedings to settle or defend any such action, including the employment of counsel which shall be satisfactory to Contractor, and payment of all expenses;
provided, however, that SumTotal shall not enter into any settlement of such matter without the express written consent of Contractor, which consent shall not be unreasonably withheld. 
  

	12.	Noncompetition. 

 Contractor agrees that SumTotal Systems has many
substantial and legitimate business interests that can be protected only by Contractor agreeing not to compete with SumTotal Systems during the term of this Agreement. These interests include, without limitation, the SumTotal Systems’
protection of and rights in its Confidential Information. Therefore, the parties agree that, during the term of this Agreement, Contractor is free to perform services for third parties who do not compete with SumTotal Systems, but Contractor shall
not perform any services that compete with SumTotal Systems in any way, whether directly or indirectly. SumTotal Systems specifically acknowledges that Contractor has informed SumTotal Systems of other full-time employment and SumTotal Systems
acknowledges that nothing in this Agreement shall limit Contractor’s ability to perform services for such other company. 
  

	13.	Miscellaneous. 

 (a) Entire Agreement. This
Agreement constitutes the entire agreement between the parties, and supersedes and cancels any and all other arrangements between the parties relating to the subject matter hereof. This Agreement may be amended, altered or modified only by an
instrument in writing signed by the parties. 
 (b) Disputes. In any action or proceeding arising out of or in connection with this
Agreement the prevailing party will be entitled to recover all reasonable costs and attorney’s fees, with or without suit and on appeal. 
  

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 (c) Governing Law. The rights and obligations under this Agreement shall in all respects be
governed by the laws of the State of California and venue in any legal action shall exist exclusively in state or federal courts in California. Contractor’s obligations under this Agreement supplement and do not supersede the obligations
imposed on Contractor by the law of the State of California, including without limitation by the Uniform Trade Secrets Act of California. 
 (d) Relationship of Agreement to Other Legal Claims, Rights or Remedies. The existence of any claim or cause of action by Contractor against SumTotal Systems shall not constitute a defense to the enforcement of this Agreement or
excuse performance of the obligations assumed by Contractor hereunder. The provisions of this Agreement shall not be construed as limiting any rights or remedies that SumTotal Systems may otherwise have under the applicable law. 
 (e) Severability. If any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to
time, duration, scope, activity or subject, it shall be construed, by limiting and reducing it, so as to be enforceable to the fullest extent possible that is compatible with the applicable law as it shall then appear. 
 (f) Illegality. In case any one or more of the provisions contained in this Agreement shall, for any reason, be held to be totally invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, but this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never
been contained herein. 
 (g) Assignment. This Agreement may not be assigned by Contractor, but it otherwise shall be binding upon and
inure to the benefit of the parties hereto and their respective successors, assigns and personal representatives. 
 (h)
Non-solicitation. During this Agreement and for a period of one-year following the completion of any services provided by Contractor hereunder, Contractor will not directly or indirectly solicit any SumTotal Systems employee to leave his or
her employment with SumTotal Systems. 
 (i) Reserved. 
 (j) Notice. Any notice required or permitted to be given hereunder shall be in writing and delivered to the address set forth in this Agreement or to such other address as either of the parties may, from time
to time, designate by notice in writing to the other. A notice shall be deemed to have been given (i) on the date of delivery if delivered by hand or by confirmed facsimile; (ii) upon the fifth day after such notice is deposited in the
United States mail, if mailed by registered or certified mail, postage prepaid, return receipt requested; or (iii) upon the date of the courier’s verification of delivery at the specified address if sent by a nationally recognized
overnight express courier. 
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. 
  

									
	ERIKA ROTTENBERG	 		 	SUMTOTAL SYSTEMS, INC.
					
	By:	 	 	 		 	By:	 	 
		 	Authorized Signature	 		 		 	Authorized Signature

									
					
	Printed Name:	 	 	 		 	Printed Name:	 	 

									
					
	Title:	 	 	 		 	Title:	 	 

									
					
	Date:	 	 	 		 	Date:	 	 

  

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 EXHIBIT A 
 STATEMENT OF WORK 
 Note: All capitalized words in this Statement of Work have the same meaning as in the
SumTotal Systems, Inc. Independent Contractor Agreement to which this Statement of Work is attached. 
 __________ Initial Work
__________ Extension/Additional Work 
 (P.O. # ______________________) 
 __________________________________                  ___ ___ ___ ___ - ___ ___ ___ -
___ ___ ___ ___ - ___ __ - ___ 
 Account Code      Cost Center   Product Code
     Version Lang. 
 Code 
 SumTotal Systems Project 
 Manager’s Name and Title:
_______________________________________________________________________ 
  

			
	Contractor Name:	  	ERIKA ROTTENBERG
		
	 Address:
	  	_______________________________________________________
		  	_______________________________________________________
		  	_______________________________________________________
		
	 Telephone:
	  	_______________________________________________________
	 Fax:
	  	_______________________________________________________
		
	 Federal Tax ID #:
	  	______________________              or SSN #: _________________

  

	1.	Description of Services to be Provided: 

 Beginning August 1, 2008 through December 31, 2008, Contractor will provide strategic consulting services at the direction of the legal department of SumTotal Systems, or outside counsel retained by SumTotal Systems. Such services
shall not be provided in an amount in excess of an average of two (2) hours per week. Contractor will not engage in the practice of law in providing such strategic consulting services and will not be asked to engage in the practice of law.
Contractor may not delegate her duties under this Agreement. 
  

	2.	Deliverables 

 Records. Contractor
shall promptly, in such form and detail as is satisfactory to SumTotal Systems, record from time to time and keep a complete and permanent written record of information relating to the conception, origination, discovery or development of
Confidential Information. Upon request of SumTotal Systems, and in any event upon the conclusion of the Agreement, Contractor will deliver to and leave with SumTotal Systems any and all documents, records, notebooks, recordings, drawings,
prototypes, models, schematic diagrams, computer programs (regardless of the media on which they are stored) and similar repositories of, or objects which describe, depict, contain, constitute, reflect or record Confidential Information, and
all copies thereof, then in the possession or control of Contractor (collectively, the “Records”). All Records shall at all times, and without further consideration, be owned by SumTotal Systems as part of the deliverables to which it is
entitled by virtue of the Agreement. 
  

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	3.	Contractor’s Compensation 

 If Contractor provides services
through December 31, 2008 in accordance with the terms of this Agreement, she will be entitled to the following compensation: 
  

	 	•	 	 Accelerated vesting of a portion of the Stock Unit granted to Contractor on February 20, 2008. The Stock Unit granted to Contractor on February 20,
2008 will vest as to 8,333 shares on December 31, 2008 and such shares will be delivered to Contractor on February 1, 2009. This Agreement, having been approved by the Compensation Committee of SumTotal Systems, shall serve as an amendment
to terms of the Stock Unit. 

  

	 	•	 	 Cash Bonus. Contractor will receive a single lump sum cash payment on or before January 15, 2009 determined based on the following formula [Closing
Price of SumTotal Systems common stock on December 31, 2008] x 8,333 x 2.67%. 

  

	4.	Reimbursable Expenses (if any): 

 On the request of SumTotal
Systems, as a condition of obtaining reimbursement for the above expenses, Contractor will provide SumTotal Systems with receipts or other reasonably satisfactory evidence of payment to support its claimed reimbursable expenses. 
  

	5.	Contract Expiration Date: December 31, 2008 (Must Be Included) 

  

									
	ERIKA ROTTENBERG	 		 	SUMTOTAL SYSTEMS, INC.
					
	By:	 	 	 		 	By:	 	 
		 	Authorized Signature	 		 		 	Authorized Signature

									
					
	Printed Name:	 	 	 		 	Printed Name:	 	 

									
					
	Title:	 	 	 		 	Title:	 	 

									
					
	Date:	 	 	 		 	Date:	 	 

  

 6Waiver and Sixth Amendment to Credit Agreement

 Exhibit 10.3 
 WAIVER AND SIXTH AMENDMENT TO CREDIT AGREEMENT 
 THIS WAIVER AND SIXTH AMENDMENT TO CREDIT
AGREEMENT (this “Amendment”), dated as of August 26, 2008, is entered into by and among the Lenders signatory hereto, WELLS FARGO FOOTHILL, INC., a California corporation, in its capacity as Agent for the Lenders and
Bank Product Providers (in such capacity, “Agent”), and SUMTOTAL SYSTEMS, INC., a Delaware corporation (“Borrower”). Terms used herein without definition shall have the meanings ascribed to them in the Credit
Agreement defined below. 
 RECITALS 
 A. The Lenders, Agent and Borrower have previously entered into that certain Credit Agreement dated as of October 4, 2005, as amended as of October 21, 2005, August 11, 2006, November 13,
2006, June 19, 2007 and August 17, 2007 (as so amended, and as further amended, modified and supplemented from time to time, the “Credit Agreement”), pursuant to which the Lenders have made certain loans and financial
accommodations available to Borrower. 
 B. The Borrower has informed Agent that it desires to transfer up to US$7 million in cash to
SumTotal Systems Netherlands B.V., a besloten vennootschap organized under the laws of the Netherlands (“SumTotal Netherlands”) and a Subsidiary of the Borrower, which cash (the “Netherlands Investment”)
shall be contributed by SumTotal Netherlands to its wholly-owned subsidiary, SumTotal Systems U.K. Ltd., a private limited company organized under the laws of the United Kingdom (“SumTotal UK”) (such cash contribution to SumTotal UK
being the “UK Investment”), in order (i) to recapitalize SumTotal UK and (ii) permit the repayment by SumTotal UK of certain of its obligations to the Borrower of up to US$7 million (the “SumTotal UK
Loan”). Section 6.7 of the Credit Agreement prohibits the prepayment of certain Indebtedness of Subsidiaries of the Borrower; Section 6.12 restricts Borrower’s ability to make Investments in certain
Subsidiaries; Section 6.12(b) prohibits SumTotal UK from holding more than US$1 million of cash in a deposit account that is not subject to a Control Agreement; and Section 6.13 of the Credit Agreement restricts
Borrower’s and its Affiliates’ ability to enter into certain transactions with one another. 
 C. The Borrower has requested that
the Lenders and the Agent agree to certain additional amendments to the Credit Agreement, and the Lenders and the Agent have agreed to such request, subject to the terms and conditions hereof. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 1. Amendments to Credit Agreement. Subject to and upon the conditions hereof, the Credit Agreement is hereby amended, effective as of the date of
satisfaction of the conditions set forth in Section 3, as follows: 
 (a) Section 2.6(a) of the Credit
Agreement is hereby amended by deleting in their entirety the second and third sentences thereof (which state in their entirety: “The foregoing notwithstanding, at no time shall any portion of the Obligations (other than Bank Product
Obligations) bear interest on the Daily Balance thereof at a per annum rate less than 6.00%. To the extent that interest accrued hereunder at the rate set forth herein would be less than the foregoing minimum daily rate, the interest rate chargeable
hereunder for such day automatically shall be deemed increased to the minimum rate.”). 

 (b) Section 5.5 of the Credit Agreement is hereby amended by amending and
restating the first sentence thereof as follows: 
 “At any time when (i) the amount of Revolver Usage is positive or (ii) any
Default or Event of Default is continuing, permit Agent, each Lender, and each of their duly authorized representatives or agents to visit any of its properties and inspect any of its assets or books and records, to examine and make copies of its
books and records, and to discuss its affairs, finances, and accounts with, and to be advised as to the same by, its officers and employees at such reasonable times and intervals as Agent or any such Lender may designate and, so long as no Default
or Event of Default exists, with reasonable prior notice to Borrower and during normal business hours.” 
 (c)
Section 5.26 of the Credit Agreement is hereby amended and restated in its entirety as follows: 
 5.26
Certain Control Accounts. No later than twenty (20) days from the date of satisfaction of all conditions precedent to effectiveness of that certain Waiver and Sixth Amendment to Credit Agreement among the Lender parties thereto,
Agent, and Borrower, Borrower shall transfer Investments in an amount not less than US$25,000,000 into Deposit Accounts or Securities Accounts at Wells Fargo Bank, N.A. or its affiliates and, at all times thereafter (tested on a monthly basis),
shall maintain in such Deposit Accounts or Securities Accounts Investments in an amount equal to, at such time, at least 50% of the total aggregate amount of Borrower’s invested cash and Cash Equivalents (excluding operating cash) held in the
United States at such time. 
 (d) Section 6.10 of the Credit Agreement is hereby amended by deleting the phrase
“August 19, 2008” where it appears in the last sentence thereof and replacing it with the phrase “the Maturity Date”. 
 2. Consent and Waiver. 
 (a) Subject to and upon the conditions hereof, the Agent and the Lenders hereby
consent to (i) Borrower’s Investment in SumTotal Netherlands in the form of a single contribution of the Netherlands Investment (and waive the application of Section 6.12 of the Credit Agreement thereto), (ii) SumTotal
UK’s holding of cash in an amount equal to the Netherlands Investment, in a deposit account not subject to a Control Agreement (and waive the application of Section 6.12(b) of the Credit Agreement thereto) and (iii) SumTotal
UK’s prepayment in full in cash to Borrower of all outstanding obligations under the SumTotal UK Loan (and waive the application of Section 6.7 of the Credit Agreement thereto) (items (i) through (iii), collectively, the
“Investments and Prepayment”), so long as the Investments and Prepayment shall be completed in no more than 14 days from the date of the Netherlands Investment. 
 (b) The Agent and Lenders hereby waive the application of Section 6.13 of the Credit Agreement, and any other applicable
provision of the Credit Agreement, to the Investments and Prepayment as described in subsection (a) above. 
  

 2. 

 3. Effectiveness of this Amendment. Agent must have received the following items, in form and
content acceptable to Agent, before this Amendment is effective: 
 (a) Amendment; Acknowledgments and Releases. This
Amendment and the attached Acknowledgment and Release by Subordinating Creditors, each duly executed in a sufficient number of counterparts for distribution to all parties. 
 (b) Representations and Warranties; No Default. (i) The representations and warranties set forth herein and in the Credit
Agreement must be true and correct in all material respects on and as of the date hereof (after giving effect to any updated information supplied to the Agent), as though made on and as of the date hereof (except to the extent that such
representations and warranties relate solely to the Closing Date or another earlier date); and (ii) no event shall have occurred and be continuing that constitutes a Default or an Event of Default. 
 (c) Other. All other documents and legal matters in connection with the transactions contemplated by this Amendment or requested by
Agent shall have been delivered, executed or recorded and shall be in form and substance satisfactory to Agent in its sole discretion. 
 4.
Representations and Warranties. Borrower represents and warrants as follows: 
 (a) Authority. Each of the
Borrower and each Subsidiary has the requisite corporate power and authority to execute and deliver this Amendment, and to perform its obligations hereunder and under the Loan Documents (as amended or modified hereby) to which it is a party.

 (b) Enforceability. This Amendment has been duly executed and delivered by Borrower. This Amendment is the legal,
valid and binding obligation of Borrower, enforceable against Borrower in accordance with its terms (except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to
or limiting creditors’ rights generally), and is in full force and effect. 
 (c) Representations and Warranties.
After giving effect to any updated information supplied by Borrower, the representations and warranties of Borrower and its Subsidiaries contained in each Loan Document (other than any such representations or warranties that, by their terms, are
specifically made as of the Closing Date or another date other than the date hereof) that are qualified by materiality are true, accurate and complete as though made on and as of the date hereof, and that are not qualified by materiality are true,
accurate and complete in all material respects as though made on and as of the date hereof. 
 (d) Due Execution. The
execution, delivery and performance of this Amendment are within the power of Borrower, have been duly authorized by all necessary corporate action and no other corporate proceedings are necessary to consummate such transactions, have received all
necessary governmental approval, if any, and do not contravene any law or any contractual restrictions binding on Borrower. 
 (e) Disclosure. All factual information (taken as a whole) furnished by or on behalf of Borrower or its Subsidiaries in writing to Agent or any Lender for purposes of or in connection with this Amendment, the other Loan Documents or
any transaction contemplated herein or therein is, and all other such factual information (taken as a whole) hereafter furnished by or on behalf of Borrower or its Subsidiaries in writing to Agent or any Lender will be, true and accurate, in all
material respects, on the date as of which such information is dated or certified and not incomplete by omitting to state any fact necessary to make such information (taken as a whole) not misleading in any material respect at such time in light of
the circumstances under which such information was provided. 
  

 3. 

 (f) No Default. No event has occurred and is continuing that constitutes a Default
or an Event of Default. 
 5. Choice of Law. The validity of this Amendment, its construction, interpretation and enforcement, the
rights of the parties hereunder, shall be determined under, governed by, and construed in accordance with the laws of the State of New York. 
 6. Counterparts. This Amendment may be executed in any number of counterparts and by different parties and separate counterparts, each of which when so executed and delivered, shall be deemed an original, and all of which, when taken
together, shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment by telefacsimile or other similar method of electronic transmission shall be effective as delivery of a manually
executed counterpart of this Amendment. 
 7. Reference to and Effect on the Loan Documents. 
 (a) Upon and after the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”,
“hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”, “thereof” or words of like import referring to the
Credit Agreement, shall mean and be a reference to the Credit Agreement as modified and amended hereby. 
 (b) Except as
specifically amended or modified above, the Credit Agreement and all other Loan Documents, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed and shall constitute the legal, valid, binding and
enforceable obligations of Borrower. 
 (c) The execution, delivery and effectiveness of this Amendment shall not, except as
expressly provided herein, operate as a waiver of any right, power or remedy of the Lender Group under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents. 
 (d) To the extent that any terms and conditions in any of the Loan Documents shall contradict or be in conflict with any terms or
conditions of the Credit Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed modified or amended accordingly to reflect the terms and conditions of the Credit Agreement as modified or amended hereby.

 8. Integration. This Amendment, together with the other Loan Documents, incorporates all negotiations of the parties hereto with
respect to the subject matter hereof and is the final expression and agreement of the parties hereto with respect to the subject matter hereof. 
 9. Severability. In case any provision in this Amendment shall be invalid, illegal or unenforceable, such provision shall be severable from the remainder of this Amendment and the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby. 
 [remainder of page intentionally left blank] 

 

 4. 

 IN WITNESS WHEREOF, the parties have entered into this Amendment as of the date first above written.

  

			
	SUMTOTAL SYSTEMS, INC.,
	a Delaware corporation
		
	By:	 	/s/ Neil J. Laird
	Name:	 	Neil J. Laird
	Title:	 	Chief Financial Officer

 [Sixth Amendment to Credit Agreement] 
  

 S-1 

			
	WELLS FARGO FOOTHILL, INC.,
	a California corporation, as Agent and a Lender
		
	By:	 	/s/ Thomas Fortbath
	Name:	 	Thomas Forbath
	Title:	 	Vice President

 [Sixth Amendment to Credit Agreement] 
  

 S-2 

 ACKNOWLEDGMENT BY SUBORDINATING CREDITORS 
 Dated as of August 26, 2008 
 In connection with the foregoing Sixth Amendment to
Credit Agreement (the “Amendment”), each of the undersigned, being a Creditor (each a “Subordinating Creditor” and collectively, the “Subordinating Creditors”) under the Intercompany Subordination
Agreement (as defined in the Credit Agreement referenced in the Amendment) hereby confirms and agrees that the Intercompany Subordination Agreement is and shall continue to be, in full force and effect and is hereby ratified and confirmed in all
respects except that, upon the effectiveness of, and on and after the date of the foregoing Amendment, each reference in the Intercompany Subordination Agreement to the Credit Agreement (as defined in the Intercompany Subordination Agreement),
“thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as amended or modified by the Amendment. Although Agent and the Lenders have informed
Subordinating Creditors of the matters set forth in the Amendment, and Subordinating Creditors have acknowledged the same, each Subordinating Creditor understands and agrees that neither the Lender Group nor the Bank Product Providers have any duty
under the Credit Agreement, the Intercompany Subordination Agreements or any other agreement with any Subordinating Creditor to so notify any Subordinating Creditor or to seek such an acknowledgment, and nothing contained herein is intended to or
shall create such a duty as to any advances or transaction hereafter. 
  

									
	CREDITORS:	 		 	 SUMTOTAL SYSTEMS, INC.,
 a Delaware
corporation

					
		 		 		 	By:	 	/s/ Neil J. Laird
		 		 		 	Name:	 	Neil J. Laird
		 		 		 	Its:	 	Chief Financial Officer
			
		 		 	 SUMTOTAL SYSTEMS NETHERLANDS BV,
 a
besloten vennootschap organized under the laws of the Netherlands

					
		 		 		 	By:	 	/s/ Neil J. Laird
		 		 		 	Name:	 	Neil J. Laird
		 		 		 	Title:	 	Director
			
		 		 	 SUMTOTAL SYSTEMS U.K. LTD.,
 a private
limited company organized under the laws of the United Kingdom

					
		 		 		 	By:	 	/s/ Neil J. Laird
		 		 		 	Name:	 	Neil J. Laird
		 		 		 	Title:	 	Director

 [Acknowledgment by Subordinating Creditors to Sixth Amendment] 
  

 1 

			
	 PATHLORE SOFTWARE LIMITED,
 a private
limited company organized under the laws of the United Kingdom

		
	By:	 	/s/ Neil J. Laird
	Name:	 	Neil J. Laird
	Title:	 	Director

 [Acknowledgment by Subordinating Creditors to Sixth Amendment] 
  

 2

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