Document:

Severance Agreement between the Company and Todd Spartz

 Exhibit 10.45 
 

 
 SEVERANCE AGREEMENT 
 THIS AGREEMENT is entered into as of September 14, 2009, by and between TODD
SPARTZ (the “Employee”) and SELECTICA, INC., a Delaware corporation (the “Company”). 
 1. TERMINATION BENEFITS. 
 (a) Qualifying Terminations. Severance
benefits shall be provided under this Agreement only if one of the following Paragraphs applies: 
 (i) Change
in Control. The Company is subject to a Change in Control before the Employee’s employment terminates and, within 12 months thereafter, a Separation occurs because either (A) the Company terminates the Employee’s employment for a
reason other than Cause or Permanent Disability or (B) the Employee resigns for Good Reason; or 
 (ii)
No Change in Control. Paragraph (i) above does not apply and a Separation occurs because the Company terminates the Employee’s employment for a reason other than Cause or Permanent Disability. 
 (b) Release. Subsection (a) above notwithstanding, severance benefits shall be provided under this Agreement only if the
Employee has executed a general release of all known and unknown claims that the Employee may then have against the Company, using the form attached hereto as Exhibit A and without making alterations (the “Release”), and has
agreed not to prosecute any legal action or other proceeding based on such claims. However, the Employee shall not be required to release any claims that the Employee may have against the Company arising under (i) any indemnification agreement
between the Employee and the Company or (ii) any rights to indemnification, advancement of expenses or repayment arising under the Company’s Certificate of Incorporation, the Company’s Bylaws or the indemnification provisions of
applicable State statutes, in each case as currently in effect or as subsequently amended. The Company shall deliver the completed Release to the Employee within 10 business days after his Separation. The Employee shall execute and return the
Release within the period set forth in Exhibit A (the “Release Deadline”). 
 (c) Severance Pay. If
Subsection (a)(i) above applies, then the Employee shall be entitled to receive severance payments from the Company for the period of nine months following his Separation. If Subsection (a)(ii) above applies, then the Employee shall be
entitled to receive severance payments from the Company for the period of three months following his Separation. (Such period of nine or three months, as the case may be, is referred to below as the “Continuation Period”). Such severance
payments shall be made in installments in accordance with the Company’s standard payroll procedures, shall commence within 30 days after the Release Deadline and, once they commence, shall be retroactive to the date of the Employee’s

 
Separation. Such severance payments shall be equal to the Employee’s base salary at the annual rate in effect when his Separation occurs, prorated to reflect the actual length of the
Continuation Period. For purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), each installment payment under this Subsection (c) is hereby designated as a separate payment. 
 The preceding paragraph notwithstanding, if the Company determines that the Employee is a “specified employee” under
Section 409A(a)(2)(B)(i) of the Code and the regulations thereunder at the time of his Separation, then (i) the severance payments under this Subsection (c), to the extent not exempt from Section 409A of the Code, shall commence
during the seventh month after the Employee’s Separation and (ii) the installments that otherwise would have been paid during the first six months following the Employee’s Separation shall be paid in a lump sum when such severance
payments commence. 
 (d) Health Insurance. If Subsection (a) above applies, and if the Employee elects to continue
health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) for himself and, if applicable, his dependents following his Separation, then the Company shall pay the employer portion of the monthly premium
under COBRA for the Employee and, if applicable, his dependents until the earliest of (i) the close of the Continuation Period, (ii) the expiration of the Employee’s continuation coverage under COBRA or (iii) the date when the
Employee receives substantially equivalent health insurance coverage in connection with new employment or self-employment. 
 (e) Definition of “Cause.” For purposes of this Agreement, “Cause” shall mean: 
 (i) An unauthorized use or disclosure by the Employee of the Company’s confidential information or trade secrets, which use or disclosure causes material harm to the Company; 
 (ii) A material breach by the Employee of any agreement between the Employee and the Company; 
 (iii) A material failure by the Employee to comply with the Company’s written policies or rules; 
 (iv) The Employee’s conviction of, or plea of “guilty” or “no contest” to, a felony under the laws
of the United States or any State thereof; 
 (v) The commission of any act of fraud, embezzlement or dishonesty
by the Employee; 
 (vi) The Employee’s gross negligence or intentional misconduct; 
  

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 (vii) A continuing failure by the Employee to perform assigned duties after
receiving written notification of such failure from the Company; or 
 (viii) A failure by the Employee to
cooperate in good faith with a governmental or internal investigation of the Company or its directors, officers or employees, if the Company has requested the Employee’s cooperation. 
 (f) Definition of “Change in Control.” For purposes of this Agreement, “Change in Control” shall mean:

 (i) The consummation of a merger or consolidation of the Company with or into another entity or any other
corporate reorganization, if persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization own immediately after such merger, consolidation or other reorganization 50% or more of the voting
power of the outstanding securities of each of (A) the continuing or surviving entity and (B) any direct or indirect parent corporation of such continuing or surviving entity; 
 (ii) The sale, transfer or other disposition of all or substantially all of the Company’s assets; 
 (iii) A change in the composition of the Company’s Board of Directors (the “Board”), as a result of which
fewer than 50% of the incumbent directors are directors who either: 
 (A) Had been directors of the Company on
the date 24 months prior to the date of such change in the composition of the Board (the “Original Directors”); or 
 (B) Were appointed to the Board, or nominated for election to the Board, with the affirmative votes of at least a majority of the aggregate of (I) the Original Directors who were in office at the
time of their appointment or nomination and (II) the directors whose appointment or nomination was previously approved in a manner consistent with this Subparagraph (B); or 
 (iv) Any transaction as a result of which any person is the “beneficial owner” (as defined in Rule 13d-3 under
the Securities Exchange Act of 1934, as amended), directly or indirectly, of securities of the Company representing at least 50% of the total voting power represented by the Company’s then outstanding voting securities. For purposes of this
Paragraph (iv), the term “person” shall have the same meaning as when used in Sections 13(d) and 14(d) of such Act but shall exclude (A) a trustee or other fiduciary holding securities under an employee benefit plan of the
Company or of a Parent or Subsidiary and (B) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the common stock of the Company. 
 A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding
company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. 
  

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 (g) Definition of “Good Reason.” For purposes of this Agreement,
“Good Reason” shall mean (i) a change in the Employee’s position with the Company that materially reduces the Employee’s level of responsibility, (ii) a reduction in the Employee’s annual rate of base salary or
(iii) a relocation of the Employee’s place of employment by more than 35 miles, but only if such change, reduction or relocation is effected by the Company without the Employee’s consent. A condition shall not be considered “Good
Reason” unless the Employee gives the Company written notice of such condition within 90 days after such condition comes into existence and the Company fails to remedy such condition within 30 days after receiving the Employee’s written
notice. 
 (h) Definition of “Permanent Disability.” For purposes of this Agreement, “Permanent
Disability” shall mean the Employee’s inability to perform the essential functions of the Employee’s position, with or without reasonable accommodation, for a period of at least 120 consecutive days because of a physical or mental
impairment. 
 (i) Definition of “Separation.” For purposes of this Agreement, “Separation”
shall mean a “separation from service,” as defined in the regulations under Section 409A of the Code. 
 2.
EQUITY ACCELERATION. 
 If the Company is subject to a Change in Control before the Employee’s employment terminates,
then all equity awards held by the Employee shall become fully and unconditionally vested, fully exercisable and fully transferable (except for transfer restrictions imposed by law). For purposes of this Section 2, the Employee’s
“equity awards” shall consist of (a) shares of the capital stock of the Company (“Stock”), (b) options and other rights to purchase shares of Stock, (c) stock units, performance units or phantom shares whose value
is measured by the value of shares of Stock and (d) stock appreciation rights whose value is measured by increases in the value of shares of Stock. 
 3. PARACHUTE PAYMENTS. 
 (a) Scope of Limitation. This Section 3
shall apply only if an independent accredited accounting firm selected by the Employee (the “Accounting Firm”) determines that the after-tax value of all Payments (as defined below) to the Employee, taking into account the effect of all
federal, state and local income taxes, employment taxes and excise taxes applicable to the Employee (including the excise tax under Section 4999 of the Code), will be greater after the application of this Section 3 than it was before the
application of this Section 3. If this Section 3 applies, it shall supersede any contrary provision of this Agreement. 
 (b) Basic Rule. In the event that the Accounting Firm determines that any payment or transfer by the Company to or for the benefit of the Employee (a “Payment”) would be nondeductible by the Company for federal income tax
purposes because of the provisions concerning “excess parachute payments” in Section 280G of the Code, then the aggregate present value of all Payments shall be reduced (but not below zero) to the Reduced Amount. For

  

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purposes of this Section 3, the “Reduced Amount” shall be the amount, expressed as a present value, which maximizes the aggregate present value of the Payments without causing any
Payment to be nondeductible by the Company because of Section 280G of the Code. 
 (c) Reduction of Payments. Any
reduction under Subsection (b) above shall be applied first to Payments that constitute “deferred compensation” (within the meaning of Section 409A of the Code and the regulations thereunder). If there is more than one such
Payment, then such reduction shall be applied on a pro rata basis to all such Payments. Subject to the foregoing rules, the Employee may elect, in the Employee’s sole discretion, which and how much of the Payments shall be eliminated or
reduced (as long as after such election the aggregate present value of the Payments equals the Reduced Amount) and shall advise the Company in writing of the Employee’s election within 10 business days of receipt of notice. If no such election
is made by the Employee within such 10-day period, then the Company may elect which and how much of the Payments shall be eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the Reduced Amount)
and shall notify the Employee promptly of such election. For purposes of this Section 3, a present value shall be determined in accordance with Section 280G(d)(4) of the Code. All determinations made by the Accounting Firm under this
Section 3 shall be binding upon the Company and the Employee and shall be made within 10 business days of the date when a Payment becomes payable or transferable. As promptly as practicable following such determination and the elections
hereunder, the Company shall pay or transfer to or for the benefit of the Employee such amounts as are then due to the Employee and shall promptly pay or transfer to or for the benefit of the Employee in the future such amounts as become due to the
Employee. 
 (d) Overpayments and Underpayments. As a result of uncertainty in the application of Section 280G of
the Code at the time of an initial determination by the Accounting Firm hereunder, it is possible that Payments will have been made by the Company that should not have been made (an “Overpayment”) or that additional Payments that will not
have been made by the Company could have been made (an “Underpayment”), consistent in each case with the calculation of the Reduced Amount hereunder. In the event that the Accounting Firm, based upon the assertion of a deficiency by the
Internal Revenue Service against the Company or the Employee that the Accounting Firm believes has a high probability of success, determines that an Overpayment has been made, such Overpayment shall be treated for all purposes as a loan to the
Employee that the Employee shall repay to the Company, together with interest at the applicable federal rate provided in Section 7872(f)(2) of the Code; provided, however, that no amount shall be payable by the Employee to the Company if and to
the extent that such payment would not reduce the amount that is subject to taxation under Section 4999 of the Code. In the event that the Accounting Firm determines that an Underpayment has occurred, such Underpayment shall promptly be paid or
transferred by the Company to or for the benefit of the Employee, together with interest at the applicable federal rate provided in Section 7872(f)(2) of the Code. 
 (e) Related Corporations. For purposes of this Section 3, the term “Company” shall include affiliated corporations to the extent determined by the Accounting Firm in accordance with
Section 280G(d)(5) of the Code. 
  

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 (f) Fees of Accounting Firm and Required Data. The Company shall pay all fees,
expenses and other costs associated with retaining the Accounting Firm for the purposes described in this Section 3. The Company shall provide to the Accounting Firm all data in the Company’s possession or under its control that the
Accounting Firm reasonably requires for the purposes described in this Section 3. 
 4. EMPLOYMENT AT WILL.

 The Employee’s employment with the Company shall be “at will,” meaning that either the Employee or the Company
shall be entitled to terminate the Employee’s employment at any time and for any reason, with or without Cause. Any contrary representations that may have been made to the Employee shall be superseded by this Agreement. This Agreement shall
constitute the full and complete agreement between the Employee and the Company on the “at will” nature of the Employee’s employment, which may only be changed in an express written agreement signed by the Employee and a duly
authorized officer of the Company. 
 5. SUCCESSORS. 
 (a) Company’s Successors. This Agreement shall be binding upon any successor (whether direct or indirect and whether by purchase,
lease, merger, consolidation, reorganization, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets. For all purposes under this Agreement, the term “Company” shall include any successor to the
Company’s business and/or assets that becomes bound by this Agreement. 
 (b) Employee’s Successors. This
Agreement and all rights of the Employee hereunder shall inure to the benefit of, and be enforceable by, the Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. This
Agreement and all rights and obligations of the Employee hereunder are personal to the Employee and may not be transferred or assigned by the Employee at any time; provided that Employee may assign the Employee’s rights hereunder pursuant to
any property settlement resulting from the dissolution of the Employee’s marriage on the condition that such rights shall be conditioned upon Employee’s performance of the Employee’s obligations hereunder as if no such assignment had
occurred. 
 6. ARBITRATION. 
 (a) Scope of Arbitration Requirement. The parties hereby waive their rights to a trial before a judge or jury and agree to arbitrate before a neutral arbitrator any and all claims or disputes
arising out of this Agreement or the Release and any and all claims arising from or relating to the Employee’s employment with the Company, including (but not limited to) claims against any current or former employee, director or agent of the
Company, claims of wrongful termination, retaliation, discrimination, harassment, breach of contract, breach of the covenant of good faith and fair dealing, defamation, invasion of privacy, fraud, misrepresentation, constructive discharge or failure
to provide a leave of absence, claims regarding commissions, stock options or bonuses, infliction of emotional distress or unfair business practices, or any tort or tort-like causes of action. 
  

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 (b) Exceptions. The foregoing notwithstanding, the only claims that may be resolved
in any appropriate forum (including courts of law) are (i) claims concerning workers’ compensation benefits and (ii) claims concerning unemployment insurance. 
 (c) Procedure. The arbitrator’s decision shall be written and shall include the findings of fact and law that support the
decision. The arbitrator’s decision shall be final and binding on both parties, except to the extent applicable law allows for judicial review of arbitration awards. The arbitrator may award any remedies that would otherwise be available to the
parties if they were to bring the dispute in court. The arbitration shall be conducted in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association; provided, however, that the arbitrator
shall allow the discovery authorized by the California Arbitration Act or the discovery that the arbitrator deems necessary for the parties to vindicate their respective claims or defenses. The arbitration shall take place in Santa Clara County or,
at the Employee’s option, the County in which the Employee primarily worked with the Company at the time when the arbitrable dispute or claim first arose. 
 (d) Costs. The parties shall share the costs of arbitration equally, except that the Company shall bear the cost of the arbitrator’s fee and any other type of expense or cost that the Employee
would not be required to bear if the Employee were to bring the dispute or claim in court. Both the Company and the Employee shall be responsible for their own attorneys’ fees, and the arbitrator may not award attorneys’ fees unless a
statute or contract at issue specifically authorizes such an award. 
 7. MISCELLANEOUS PROVISIONS. 
 (a) Notice. Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been
duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of the Employee, mailed notices shall be addressed to the Employee at the home address that the
Employee most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary. 
 (b) Entire Agreement. This Agreement supersedes and replaces any prior agreements, representations or understandings, whether
written, oral or implied, between the Employee and the Company with respect to the subject matter hereof, including (without limitation) the letter agreement dated August 18, 2009. 
 (c) Modifications and Waivers. No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver
or discharge is agreed to in writing and signed by the Employee and by an authorized officer of the Company (other than the Employee). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by
the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 
 (d) Withholding Taxes. All payments made under this Agreement shall be subject to reduction to reflect taxes or other charges required to be withheld by law. 
  

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 (e) Choice of Law and Severability. This Agreement shall be interpreted in accordance
with the laws of the State of California (except their provisions governing the choice of law). If any provision of this Agreement becomes or is deemed invalid, illegal or unenforceable in any jurisdiction by reason of the scope, extent or duration
of its coverage, then such provision shall be deemed amended to the extent necessary to conform to applicable law so as to be valid and enforceable or, if such provision cannot be so amended without materially altering the intention of the parties,
then such provision shall be stricken and the remainder of this Agreement shall continue in full force and effect. Should there ever occur any conflict between any provision contained in this Agreement and any present or future statute, law,
ordinance or regulation, then the latter shall prevail, but the provision of this Agreement affected thereby shall be curtailed and limited only to the extent necessary to bring it into compliance with applicable law. All the other terms and
provisions of this Agreement shall continue in full force and effect without impairment or limitation. 
 (f)
Counterparts. This Agreement may be executed in two counterparts, each of which shall be deemed an original, but both of which together shall constitute one and the same instrument. 
 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of
the day and year first above written. 
  

			
	 /s/ Brenda Zawatski

	
	SELECTICA, INC.

			
		
	By	 	     /s/ Todd Spartz

			
		
	Title:	 	   CFO

  

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 EXHIBIT A 
 FORM OF RELEASE 
 SELECTICA,
INC. 
 1740 TECHNOLOGY DRIVE 
 SAN JOSE, CA 95110 
                          , 20    

 Mr. Todd Spartz 
 Dear Todd:

 This letter (the “Agreement”) confirms the agreement between you and Selectica, Inc. (the “Company”)
regarding the termination of your employment with the Company. 
 1. Termination Date. Your employment with the Company
will terminate on                          , 20     (the “Termination Date”). 
 2. Effective Date and Rescission. You have up to 21 days after you received this Agreement to review it. You are advised to consult
an attorney of your own choosing (at your own expense) before signing this Agreement. Furthermore, you have up to seven days after you signed this Agreement to revoke it. If you wish to revoke this Agreement after signing it, you may do so by
delivering a letter of revocation to me. If you do not revoke this Agreement, the eighth day after the date you signed it will be the “Effective Date.” Because of the seven-day revocation period, no part of this Agreement will become
effective or enforceable until the Effective Date. 
 3. Salary and Vacation Pay. On the Termination Date, the Company
will pay you $                     (less all applicable withholding taxes and other deductions). This amount represents all of your salary earned
through the Termination Date and all of your accrued but unused vacation time or PTO. You acknowledge that, if you did not execute this Agreement, you would not be entitled to receive any additional money from the Company. The only payments and
benefits that you are entitled to receive from the Company in the future are those specified in this Agreement. 
 4.
Severance Benefits. In consideration of executing this Agreement, you will receive from the Company the severance payments and other benefits described in Section 1 of the Severance Agreement dated September 14, 2009, between you
and the Company (the “Severance Agreement”). 
 5. Release of Claims. In consideration of receiving the
severance payments and other benefits described in Section 1 of the Severance Agreement, you waive, release and promise never to assert any claims or causes of action, whether or not now known, against the

  

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Company or its predecessors, successors or past or present subsidiaries, parent, stockholders, directors, officers, employees, consultants, attorneys, agents, assigns and employee benefit plans
with respect to any matter, including (without limitation) any matter related to your employment with the Company or the termination of that employment, including (without limitation) claims to attorneys’ fees or costs, claims of wrongful
discharge, constructive discharge, emotional distress, defamation, invasion of privacy, fraud, breach of contract or breach of the covenant of good faith and fair dealing and any claims of discrimination or harassment based on sex, age, race,
national origin, disability or any other basis under Title VII of the Civil Rights Act of 1964, the California Fair Employment and Housing Act, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act and all other
laws and regulations relating to employment. However, this release bars only those claims that arose prior to the execution of this Agreement. Execution of this Agreement does not bar: 
 (a) Any claim that arises hereafter; 
 (b) Any claim arising under any indemnification agreement between you and the Company, as amended; 
 (c) Any claim to indemnification or advancement of expenses arising under the Company’s Certificate of Incorporation, as
amended, or the Company’s Bylaws, as amended; or 
 (d) Any claim to indemnification or advancement of
expenses arising under applicable State statutes. 
 6. Waiver. You expressly waive and release any and all rights and
benefits under Section 1542 of the California Civil Code (or any analogous law of any other State), which reads as follows: “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her
favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.” 
 7. Promise Not To Sue. You agree that you will never, individually or with any other person, commence, aid in any way (except as required by legal process) or prosecute, or cause or permit to be
commenced or prosecuted, any action or other proceeding based on any claim that has been released pursuant to Section 5 above. 
 8. No Admission. Nothing contained in this Agreement will constitute or be treated as an admission by you or the Company of liability, any wrongdoing or any violation of law. 
 9. Proprietary Information and Inventions Agreement. At all times in the future, you will remain bound by your Proprietary
Information and Inventions Agreement with the Company. 
 10. Company Property. You represent that you have returned to
the Company all property that belongs to the Company, including (without limitation) copies of documents that belong to the Company and files stored on your computer(s) that contain information belonging to the Company. 
  

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 11. Severability; Modifications. If any term of this Agreement is held to be invalid,
void or unenforceable, the remainder of this Agreement will remain in full force and effect and will in no way be affected, and the parties will use their best efforts to find an alternate way to achieve the same result. This Agreement may be
modified only in a written document signed by you and a duly authorized officer of the Company. 
 12. Choice of Law;
Arbitration. This Agreement will be construed and interpreted in accordance with the laws of the State of California (other than their choice-of-law provisions). The arbitration requirement described in Section 5 of the Severance Agreement
will also apply to this Agreement. 
 13. Execution. This Agreement may be executed in counterparts, each of which will
be considered an original, but all of which together will constitute one agreement. Execution of a facsimile copy will have the same force and effect as execution of an original, and a facsimile signature will be deemed an original and valid
signature. 
 Please indicate your agreement with the above terms by signing below. 
  

			
	Very truly yours,
	
	SELECTICA, INC.
		
	By:	 	  

	Title:	 	  

 I agree to the terms of this Agreement, and I am voluntarily signing this release of all
claims. I acknowledge that I have read and understand this Agreement, and I understand that I cannot pursue any of the claims and rights that I have waived in this Agreement at any time in the future. 
  

			
	  

	Signature of Todd Spartz
		
	Dated:	 	  

  

 11 
 Initial:Offer Letter to Todd Spartz

 Exhibit 10.46 
 August 18, 2009 
 Mr. Todd Spartz 
 158 Tillman Avenue 
 San Jose, CA 95126 

Dear Todd: 
 On behalf of Selectica, Inc. (the
“Company”), I am pleased to offer you employment on the following terms and conditions: 
 1. Position: Your initial title will
be Chief Financial Officer and you will be employed as a regular, full-time employee reporting directly to the Office of the CEO. While you render services to the Company, you will not engage in any other employment, consulting or
other business activity (whether full-time or part-time) that would create a conflict of interest with the Company. By signing this letter agreement, you confirm to the Company that you have no contractual commitments or other legal obligations that
would prohibit you from performing your duties for the Company. 
 2. Salary: The Company will pay you a starting
salary at the rate of $220,000 per year, payable in accordance with the Company’s standard payroll schedule. This salary will be subject to adjustment pursuant to the Company’s employee compensation policies in effect from time to time. In
addition, you will be eligible to be considered for an incentive bonus for each fiscal year of the Company. The bonus (if any) will be awarded based on objective or subjective criteria established by the Company’s Office of the CEO and approved
by the Company’s Board of Directors. Your target bonus will be equal to 30% of your annual base salary. Any bonus for the fiscal year in which your employment begins will be prorated, based on the number of days you are employed by the Company
during that fiscal year. Any bonus for a given fiscal year will be paid within 2 1/2 months after the close of that fiscal year, but only if you are still employed by the Company at the time of payment. The determinations of the Company’s Board of Directors with respect to your
bonus will be final and binding. With respect to the current fiscal year (FY10), you can expect to be paid at least 50% of your bonus, but only if you are still employed by the Company at the time of payment. 
 3. Restricted Stock Units: You will receive 200,000 restricted stock units representing shares of the Company’s Common Stock (the
“Units”). You will vest in 25% of the Units after completing 12 months of continuous service, and the remaining balance will vest in quarterly installments over the next 36 months of continuous service. The Units will be settled on the
earliest Permissible Trading Day after they vest. In addition, 100% of the Units will vest and be settled immediately if the Company is subject to a Change in Control, as defined in Company’s 1999 Equity Incentive Plan (the “EIP”).
The grant of the Units will be subject to the other terms and conditions set forth in the EIP and the Company’s form of Stock Unit Agreement. A

 
“Permissible Trading Day” is a day on which you are able to sell shares of the Company’s Common Stock in a public market without violating applicable laws or Company policies, as
defined more specifically in your Stock Unit Agreement. Additionally, based upon certain Performance based criterion subject to the approval of the Company’s Board of Directors or its Compensation Committee, you will receive 200,000 restricted
stock units representing shares of the Company’s Common Stock (the “Units”) subject to the identical terms (except for 4 year vesting) as described above. 
 4. Benefits: You will be entitled to receive employee benefits, including PTO and holidays, under the Company’s standard employee benefits program, as it may be amended from time to time. Your
eligibility to receive employee benefits will be subject in each case to the generally applicable terms and conditions of the benefit plan in question and to the determinations of any person or committee administering such plan. 
 5. Severance Benefits: 
 General. If the Company terminates your employment for any reason other than Cause or Permanent Disability and a Separation occurs, then you will be entitled to the benefits described in this
Section 5.1 However, this Section 5 will not
apply unless you (i) have returned all Company property in your possession, (ii) have resigned as a member of the Boards of Directors of the Company and all of its subsidiaries, to the extent applicable, and (iii) have executed a
general release of all claims that you may have against the Company or persons affiliated with the Company. The release must be in the form prescribed by the Company, without alterations. You must execute and return the release on or before the date
specified by the Company in the prescribed form (the “Release Deadline”). The Release Deadline will in no event be later than 60 days after your Separation. If you fail to return the release on or before the Release Deadline, or if you
revoke the release, then you will not be entitled to the benefits described in this Section 5. 
 Salary
Continuation. If the Company terminates your employment for any reason other than Cause or Permanent Disability and a Separation occurs, then the Company will continue to pay your base salary for a period of three (3) months after your
Separation. Your base salary will be paid at the rate in effect at the time of your Separation and in accordance with the Company’s standard payroll procedures. The salary continuation payments will commence within 30 days after the Release
Deadline and, once they commence, will be retroactive to the date of your Separation. This Agreement also provides for continuation of your base salary and health benefits for nine (9) months should your employment terminate for any reason
within twelve (12) months after the Company is subject to a Change in Control. 
 COBRA. If the Company terminates
your employment for any reason other than Cause or Permanent Disability, a Separation occurs, and you elect to continue your health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) following your
Separation, then the Company will pay the same portion of your monthly premium under COBRA as it pays for active employees until the earliest of (i) the close of the three-month period following your Separation, (ii) the expiration of your
continuation coverage under COBRA or (iii) the date when you become eligible for substantially equivalent health insurance coverage in connection with new employment or self-employment. 
  

	1	 Several capitalized terms are defined in Section 8. 

 Accelerated Vesting. If the Company is subject to a Change in Control, then 100% of
the Restricted Shares, regardless of the vesting schedule will become vested, provided you remain employed by the Company at the time of the Change in Control. 
 6. Tax Matters: 
 (a) Withholding. All forms of compensation referred
to in this letter agreement are subject to reduction to reflect applicable withholding and payroll taxes and other deductions required by law. 
 (b) Section 409A. For purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), each salary continuation payment under Section 5(b) is hereby
designated as a separate payment. If the Company determines that you are a “specified employee” under Section 409A(a)(2)(B)(i) of the Code at the time of your Separation, then (i) the salary continuation payments under
Section 5(b), to the extent that they are subject to Section 409A of the Code, will commence during the seventh month after your Separation and (ii) the installments that otherwise would have been paid during the first six months
after your Separation will be paid in a lump sum when the salary continuation payments commence. 
 (c) Tax Advice. You
are encouraged to obtain your own tax advice regarding your compensation from the Company. You agree that the Company does not have a duty to design its compensation policies in a manner that minimizes your tax liabilities, and you will not make any
claim against the Company or its Board of Directors related to tax liabilities arising from your compensation. 
 7. Interpretation,
Amendment and Enforcement: This letter agreement and Exhibit A constitute the complete agreement between you and the Company, contain all of the terms of your employment with the Company and supersede any prior agreements, representations
or understandings (whether written, oral or implied) between you and the Company. This letter agreement may not be amended or modified, except by an express written agreement signed by both you and a duly authorized officer of the Company. The terms
of this letter agreement and the resolution of any disputes as to the meaning, effect, performance or validity of this letter agreement or arising out of, related to, or in any way connected with, this letter agreement, your employment with the
Company or any other relationship between you and the Company (the “Disputes”) will be governed by California law, excluding laws relating to conflicts or choice of law. You and the Company submit to the exclusive personal jurisdiction of
the federal and state courts located in California in connection with any Dispute or any claim related to any Dispute. 
 8. Definitions:
The following terms have the meaning set forth below wherever they are used in this letter agreement: 
 “Cause”
means (a) your unauthorized use or disclosure of the Company’s confidential information or trade secrets, which use or disclosure causes material harm to the Company, (b) your material breach of any agreement between you and the
Company, (c) your material failure to comply with the Company’s written policies or rules, (d) your conviction of, or your

 
plea of “guilty” or “no contest” to, a felony under the laws of the United States or any State, (e) your gross negligence or willful misconduct, (f) your continuing
failure to perform assigned duties after receiving written notification of the failure from the Company’s Board of Directors or (g) your failure to cooperate in good faith with a governmental or internal investigation of the Company or its
directors, officers or employees, if the Company has requested your cooperation. 
 “Permanent Disability”
means that you are unable to perform the essential functions of your position, with or without reasonable accommodation, for a period of at least 120 consecutive days because of a physical or mental impairment. 
 “Separation” means a “separation from service,” as defined in the regulations under Section 409A of the
Code. 
 * * * * * 
 Like all Company employees, you will be required, as a condition of your employment with the Company, to sign the Company’s standard Proprietary Information and Inventions Agreement, a copy of which is attached hereto, along with the
consent to run a background check. 
 Employment with the Company is for no specific period of time. Your employment with the Company will be
“at will,” meaning that either you or the Company may terminate your employment at any time and for any reason, with or without cause. Any contrary representations that may have been made to you are superseded by this letter agreement.
This is the full and complete agreement between you and the Company on this term. Although your job duties, title, compensation and benefits, as well as the Company’s personnel policies and procedures, may change from time to time, the “at
will” nature of your employment may only be changed in an express written agreement signed by you and a duly authorized officer of the Company (other than you). 
 We hope that you will accept our offer to join the Company. You may indicate your agreement with these terms and accept this offer by signing and dating both the enclosed duplicate original of this letter
agreement and the enclosed Proprietary Information and Inventions Agreement and returning them to me. This offer, if not accepted, will expire at the close of business on August 21, 2009. As required by law, your employment with the Company is
contingent upon your providing legal proof of your identity and authorization to work in the United States. Your employment is also contingent upon your starting work with the Company on or before September 14, 2009. 
 Other than your Units (the terms of which shall be determined by the Company’s Board of Directors in its sole discretion and evidenced
and governed by the applicable Stock Unit Agreement and the EIP), this letter and all of the exhibits attached hereto contain all of the terms of your employment with the Company and supersede any other understandings or agreements, oral or written,
between you and the Company. 

 We believe there is a tremendous opportunity in your joining Selectica’s team at this
time. We hope that you find the enclosed terms acceptable, and look forward to the start of your new career with the Company. 
  

	
	Sincerely,
	
	SELECTICA, INC.
	
	/s/ Karen O’Brien

 Karen O’Brien 
 Human Resources 
  
  
 Agreed and accepted on, August 18, 2009

  

							
	 /s/ Todd Spartz
	    	 9/14/2009
	  		  	
	Signature	    	Start Date	  		  	
				
	 Todd A. Spartz
	    		  		  	
	(Print Name)	    		  		  	

 Enclosures: 
 Proprietary Information and Inventions Agreement 
 Background Check Consent Form

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