Document:

Exhibit
10.1

ASSET PURCHASE AGREEMENT

**
Certain information in this exhibit has been omitted and has been filed
separately with the Securities and Exchange Commission pursuant to a
confidential treatment request under Rule 24b-2 of the General Rules and Regulations
under the Securities Exchange Act of 1934.

 

This Asset Purchase Agreement (“Agreement”) is
entered into on this 28th day of April, 2006 effective as of the
commencement of business on May 1, 2006 (the “Effective Date”) by and
among:

New Horizons Computer Learning Center of Memphis,
Inc., a Delaware corporation (“Seller”), together with its direct or
indirect parent corporation, New Horizons Worldwide, Inc. (“Parent”), on
the one hand;

Integrated Learning Solutions Memphis, LLC, a
Tennessee limited liability company (“Buyer”); and

David L. Weinstein, Robert J. Hussey, III, Stanley
Graber and Joel W. Brown, each a natural person and, together, owners of
membership interests of the Buyer (“Owners”).

Buyer, Owners, Seller and Parent are hereinafter sometimes
individually referred to as a “Party” or collectively as the “Parties”.

WHEREAS, Seller wishes to sell to Buyer, and Buyer
wishes to purchase from Seller, substantially all of Seller’s assets related to
Seller’s computer training business located in Memphis, Tennessee (the “Business”);
and

WHEREAS, concurrent with the transactions described in
this Agreement, Buyer desires to become a franchisee of New Horizons
Franchising Group, Inc. (“Franchisor”) in Memphis, Tennessee, it being
understood that Franchisor is an affiliate of Seller and direct or indirect
subsidiary of the Parent.

NOW, THEREFORE, in consideration of the covenants and
agreements contained herein, the Parties agree as follows:

Section 1                                             PURCHASE
AND SALE OF ASSETS; EXCLUDED ASSETS

1.1                                 Purchased
Assets.  Pursuant to the terms and
subject to the conditions set forth in this Agreement, on the Closing Date
herein below provided for but effective as of the Effective Date, Seller hereby
agrees to sell, grant, transfer, convey, assign and deliver to Buyer, and Buyer
agrees to purchase and acquire from Seller, all of the properties, assets and
rights owned, used, acquired for use, or arising or existing in connection with
the Business, whether tangible or intangible, and whether or not recorded on
Seller’s books and records, except for and excluding the Retained Assets
provided for in Section 1.2 below (all the foregoing being collectively
referred to as the “Purchased Assets”). 
The Purchased Assets shall include, but not be limited to, the following:

(A)                              All rights of Seller under its occupancy
lease (the “Facilities Lease”) covering the premises known as 4775
American Way, Memphis, Tennessee 38118 (the “Leased

Premises”), a true and complete copy of the
Facilities Lease being included at Schedule
1.1(A) attached hereto;

(B)                                All of Seller’s (x) vehicles used in
connection with the conduct of the Business (“Vehicles”), (y)
furniture, furnishings, fixtures, equipment, machinery, trade fixtures,
leasehold improvements, computers, computer discs, telephone systems and
security systems (“Equipment”), and (z) supplies, training and
course materials, computer training kits and manuals, catalogs, advertising
copy and other properties of a similar type used or held for use in the conduct
of the Business (“Inventory” and, together with the Vehicles and
Equipment, the “Tangible Personal Property”), a listing of all of which
is included at Schedule 1.1(B)
attached hereto;

(C)                                All of Seller’s (u) telephone and
facsimile numbers, (v) permits and other governmental authorizations
pertaining to the Business, to the extent such authorizations may legally be
assigned (“Governmental Permits”), (w) goodwill with customers,
vendors or prospective customers, and all customer lists, relating to the
conduct of the Business (“Goodwill”), (x) security or similar
deposits relating to the Business (“Deposits”), (y) prepaid
advertising (inclusive of yellow page advertising), prepaid expenses and other
prepayments relating to the conduct of the Business (“Prepayments”), and
(z) all other intangible assets relating to the Business or any of the
Purchased Assets (the foregoing being collectively called the “Intangible
Personal Property”), a listing of all of which is included at Schedule 1.1(C) attached hereto;

(D)                               All of Seller’s software (including rights
under Seller’s software licenses), including SAGE accounting software, and
other software used in the conduct of the Business (“Software”), but
excluding the CMS software otherwise provided for in the Franchise Agreement
(as defined in Section 3.5(B)), a listing of the Software being included at Schedule 1.1(D) attached hereto;

(E)                                 All of Seller’s accounts and notes
receivable, and other rights to receive payment, from customers, employees or
others arising from the conduct of the Business (“Receivables”), a
listing of all of which (showing, as to each, the name of the account debtor,
the amount owed and an aging schedule thereof) is included at Schedule 1.1(E) attached hereto;

(F)                                 All rights of Seller under any agreements or
contracts (“Assigned Contracts”) which (i) were entered into in the
ordinary course of the Business by Seller (excluding those entered into with
respect to employment of any person, insurance agreements and other agreements
of a nature and character as relate exclusively to any of the Retained Assets
or Retained Liabilities), (ii) were entered into in the ordinary course of the
Business with customers or prospective customers which benefit the Business
from and after the Effective Date,
including, but not limited to, computer training center agreements, rights to
receive payment from customers for services to be performed and invoiced after
the Effective Date, rights to payment with regard to coupon sales and
redemptions, PC Club sales, corporate technical club sales or applications, and
future training classes (“Customer Contracts”), and (iii) at the
election of Buyer (which Buyer may make by delivery of a writing to Parent at
any time before or after the Effective Date), any agreements entered into by
Parent for the benefit of the

 2
 

Business consistent with
practices employed in the operations of other affiliates of the Parent
conducting businesses similar to the Business; and

(G)                                Seller’s book and records, books of account,
files, invoices, accounting records, and correspondence relating to any of the
foregoing (“Records”).

1.2                                 Retained
Assets.  Notwithstanding the
provisions of Section 1.1, the Purchased Assets shall not include any of the
following (the “Retained Assets”):

(A)                              Any
Customer Contracts between Seller’s affiliate and third party customers for the
delivery of training managed through the Enterprise Learning Solutions
department of Seller’s affiliate, provided that Buyer shall be entitled to
deliver training in its capacity as a New Horizons franchisee and shall be
deemed the “selling center” which shall entitle Buyer to receive customary
revenue sharing offered by the Enterprise Learning Solutions department of
Seller’s affiliate; 

(B)                                Seller’s
cash and cash deposits;

(C)                                Seller’s
rights under this Agreement;

(D)                               Seller’s
corporate minute books, stock records and tax returns or other similar
corporate books and Records relating to the Business, to any of the Retained
Assets, to any liability or obligation of the Seller not comprising a part of
the Assumed Liabilities, or to the negotiation and consummation of the
transactions provided for in this Agreement, and those Records originals of
which Seller is required to maintain under applicable law;

(E)                                 Seller’s rights arising under any
contracts or agreements which are not among the Assigned Contracts;

(F)                                 Any
rights of Seller relating to its conduct of the Business which arise from or
are related to services previously provided by the regional office of Seller’s
affiliate (such as accounting, payroll, legal or other similar services, except
as otherwise expressly provided herein); and

(G)                                Any
assets of any of Seller’s
affiliates.

Section 2                                             PURCHASE PRICE

2.1                                 Closing
Payment.  In consideration for the
transfer of the Purchased Assets, Buyer shall on the Effective Date pay to the
Seller the following amounts (the “Purchase Price”):

(A)                              Cash
Payment.  The sum of Fifty Thousand
($50,000.00) Dollars (the “Cash Payment”) in the form of a wire transfer
or as directed by Seller; and

(B)                                Assumption
of Liabilities.  An agreement (the “Assignment
and Assumption Agreement”) in form and content as provided for in Section
3.2(A)(1) obligating Buyer to assume Seller’s obligations with regard to, and to indemnify and hold
harmless the Seller from, the Assumed Liabilities as defined in Section 2.2(A)
below.

 3
 

2.2                                 Assumed
and Retained Liabilities.

(A)                              Assumed
Liabilities.  The following shall constitute, and are
herein together referred to as, the “Assumed Liabilities”:

(1)                                  Those
liabilities which are (a) identified on Schedule
2.2(A)(1) attached hereto (including outstanding purchase orders,
trade accounts payable and accrued liabilities and expenses reflected on said
Schedule) and (b) any trade payables not so listed if (i) neither Seller nor
Parent have “Knowledge” (which term, when used in reference to any
person, means matters which are known to such persons and matters which might
reasonably be discovered by them in the exercise of due inquiry, excluding
inquiry of any adverse party to this Agreement) thereof, (ii) invoices are
delivered to Buyer promptly following their receipt or discovery, (iii) [************],
and (iv) such liabilities are listed in the Supplemental Schedule provided for
in Section 3.2(G)(2) (the “Assumed Balance Sheet Liabilities”);

(2)                                  Subject
to the provisions set forth in Section 3.3(D) below and the exclusion provided
for in Section 2.2(B)(4)(e), the Seller’s obligations to all individual and
corporate customers to provide training which has been purchased by such
customers prior to the Effective Date but not yet delivered as of the Effective
Date (the “Training Obligations”);

(3)                                  Any
obligation for cash refunds to customers in respect to any prepaid training,
except to the extent such constitutes a Retained Liability under Section
2.2(B)(4)(e);

(4)                                  Any
obligation to pay for training provided by any other franchisee or affiliate of
the Franchisor in respect to national training coupons sold by Seller, except
to the extent such constitutes a Retained Liability under Section 2.2(B)(4)(f);

(5)                                  Any
debt, liability or obligation accruing from and after the Effective Date under
or pursuant to any of the Assigned Contracts;

(6)                                  Any
debts, liabilities or obligations incurred by Buyer, or actions, claims or
lawsuits asserted against either Buyer or Seller, which relate to the operation
of the Business on or after the Effective Date; and

(7)                                  Any
claim (and any liability resulting therefrom) against Seller which is made by a
person employed by Seller immediately prior to the Effective Date which is
based solely upon Buyer’s failure or refusal to make an offer of employment to
such person as of the Effective Date (but excluding claims arising from any other
circumstances, including but not limited to, any agreements existing or alleged
to exist between Seller and any such person, or any claims under the Worker
Adjustment and Retraining Notification Act, 29 U.S.C. §§2101-2109, as amended,
or any claims under the Employee Retirement Income Security Act of 1974, as
amended).

(B)                                Retained
Liabilities.  Buyer shall not be
obligated to pay, perform or abide by, and Seller shall retain exclusive
responsibility for, any liabilities, debts, obligations,

 4
 

undertakings
or commitments of the Seller (the “Retained Liabilities”), other than the
Assumed Liabilities.  Except for Assumed
Balance Sheet Liabilities identified and set forth on Schedule 2.2(A)(1) (as
amended by the Supplemental Schedule), the Retained Liabilities shall include,
but not be limited to, the following:

(1)                                  Any
sales, use, income, gross receipts, excise, franchise, employment, withholding
or other imposition, duty or tax (each, a “Tax”) imposed by or payable
to any governmental body, federal, state or local, on or with respect to any
period prior to the Effective Date or in respect to the sale and transfer of
the Purchased Assets or the Assumed Liabilities;

(2)                                  Any
liability or obligation accruing prior to the Effective Date in respect to (a)
any employee benefit plan or any other employee benefit arrangement or
commitment which is or has been maintained or contributed to by Seller, (b) any
portion of any bonuses earned or accrued upon the basis of any events occurring
prior to the Effective Date, (c) any accrued vacation benefits, or (d) any
obligation to reimburse any employee for expenses incurred prior to the
Effective Date;

(3)                                  Any
liability or obligation which, absent this provision, comprises a part of the
Assumed Liabilities but which is covered by any insurance policy maintained by
Seller or any of Seller’s affiliates (but, then, only to the extent of such
insurance coverage);

(4)                                  Any
(a) inter-company charges or amounts due Parent or any affiliate of Seller or
Parent, (b) claims relating to inter-franchise payment obligations which are
based on the non-payment of amounts owing any other franchisee of the
Franchisor, (c) amounts due for borrowed money, (d) obligations arising under
any agreement, instrument or other contractual undertaking or commitment that
is not an Assigned Contract or which is not an Assumed Liability, (e)
obligations to refund prepayments by customers which Seller received without
providing any training prior to the Effective Date or which prepayments
represent duplicate payments, or (f) inter-franchise obligations relating to
payment for training provided by franchisees of the Franchisor other than the
Buyer or its affiliates upon redemption of national training coupons sold by
Seller prior to the Effective Date in circumstances where same are redeemed
more than one (1) year after the issuance of such coupons;

(5)                                  [***************]

(6)                                  Any
(a) liability or obligation to indemnify any director, officer, employee or
agent of Seller, except with regard to indemnification obligations owed to
Seller or Parent from Buyer and/or Owners arising under this Agreement, (b)
liability arising out of or in connection with any violation of a statute or
governmental rule, regulation, directive or other requirement, and any
liability or obligation of a conditional, contingent or similar nature except
for matters which arise from or relate to a breach of the Owner Business
Representations (as defined and further described in Section 6.3 below), or (c)
liability or obligation which arises from or is based on a claim for injury to
or death of persons, or damage to or destruction of

 5
 

property, regardless of when asserted, but
which arises from facts or circumstances which occurred prior to the Effective
Date;

(7)                                  The
obligations of Seller, Parent or their affiliate(s) on any guaranty of the
Facilities Lease (but subject to the provisions set forth in Section 4.1); and

(8)                                  Any
debts, liabilities or obligations incurred by Seller, or actions, claims or
lawsuits asserted against either Buyer or Seller which relate to the operation
of the Business prior to the Effective Date, except for matters which arise
from or relate to (x) a breach of the Owner Business Representations (as
defined and further described in Section 6.3 below), (y) the Assumed
Liabilities, and/or (z) the Training Obligations.

Section 3                                             CLOSING AND CLOSING
DATE

3.1                                 Closing
Date.  The consummation of the
transactions provided for in this Agreement (the “Closing”) has been
held on the date of this Agreement (the “Closing Date”) effective as of
the Effective Date.

3.2                                 Acts
of Seller and Parent.  At the
Closing, Seller and Parent, or whichever thereof may be required by the
circumstances, has taken such actions and has executed and delivered, or caused
to be executed and delivered, to Buyer such certificates, instruments and
documents, as are required by this Agreement or as are required to give full
effect to the transactions provided for herein. 
Such actions and materials include, but are not be limited to, the
following:

(A)                              Conveyance
Documentation.  Seller shall execute
and deliver or cause to be executed and delivered, or has executed and
delivered or caused to be executed and delivered, to Buyer (with such
acknowledgments required by the circumstances) documents of conveyance which
are required to convey to Buyer the Purchased
Assets free and clear of all restrictions or conditions to sale, conveyance or
transfer and free and clear of all liens, mortgages, pledges, encumbrances,
charges, claims, security interests, Taxes, conditions or restrictions of any
nature or description whatsoever (“Liens”) (other than those identified
on Schedule 3.2(A) hereto, the “Permitted
Liens”) and consistent with the other requirements of this Agreement.  Except as otherwise expressly provided in
this Agreement, the Purchased Assets are being sold “as is, where is” without
any express or implied warranties whatsoever. 
Without limiting the generality of the foregoing, the documents of
conveyance shall include the following:

(1)                                  An
assignment and assumption agreement (“Assignment and Assumption Agreement”)
in form and content substantially as shown on Exhibit
A attached hereto pursuant to which, among other things, the Seller
conveys and assigns to Buyer all right, title and interest of Seller arising
under, provided for in, or governed by any Assigned Contracts (other than the
Facilities Lease);

(2)                                  An
assignment and assumption agreement (“Assignment of Lease”) in form and
content substantially as shown on Exhibit B
attached hereto pursuant to which, among other things, the Seller conveys and
assigns to Buyer all right, title and interest of Seller arising under,
provided for in, or governed by the Facilities Lease, together with which
Seller shall deliver a writing signed by the landlord named in the Facilities
Lease or other person

 6
 

whose approval or consent is required in
connection therewith setting forth, in form and content reasonably acceptable
to the Buyer, such person’s consent to said assignment and certifying to the
Buyer the date to which rents have been paid under the Facilities Lease, the
amount of any security or other deposit held by such person in respect thereto,
and the non-existence of any fact, occurrence or circumstance known by such
person which would, with or without the giving of notice and/or lapse of time,
constitute a default by the Seller under the Facilities Lease;

(3)                                  A
bill of sale (“Bill of Sale”) in form and content substantially as shown
on Exhibit C attached hereto and
conveying to Buyer all of the Purchased Assets (other than as provided for in
the Assignment and Assumption Agreement, or in the Assignment of Lease, or in
any document of title provided for in Section 3.2(A)(4) below);

(4)                                  An
endorsement and delivery of certificates of title required to effectuate the
transfer to Buyer of any Vehicles or other Equipment, and any instruments the
endorsement and delivery of which is required to effectuate transfer to Buyer;
and

(5)                                  The
written consent to assignment (in form and substance reasonably satisfactory to
Buyer) of third persons whose approval of any conveyance contemplated herein is
required in order to comply with the requirements of any agreement or legal
requirement binding on the Seller, Parent or their affiliates.

(B)                                Delivery
of Possession.  Seller will deliver
or cause to be delivered to Buyer, or has delivered or caused to be delivered
to Buyer, physical possession of all Records, the originals of all Assigned
Contracts, and other tangible
properties comprising any part of the Purchased Assets, and all keys, combinations
and other mechanisms for controlling access to the Leased Premises and to any
lock box or other repository to which Receivables or other correspondence of
Seller’s is routinely received.

(C)                                Receivables.  Seller maintains with SunTrust Bank (the “Custodial
Bank”) administrative arrangements regarding the collection of
Receivables.  Such arrangement provides
for a lock box arrangement with all items of payment delivered thereto.  At the Closing, Seller will deliver, or cause
to be delivered, to the Custodial Bank a writing which cancels the account/lock
box arrangement and irrevocably instructs the Custodial Bank to remit directly
to Buyer all correspondence, items of payment and other materials received by
it pursuant to any arrangements maintained with the Seller.  To the extent that Seller shall, from and
after the Effective Date, receive any items of payment or be credited with any
items of payment in respect to any Receivables, Seller will promptly account to
Buyer and pay to Buyer such amounts.

(D)                               Closing
Certificates.  

(1)                                  Seller
and Parent will cause or have caused the Franchisor to execute and deliver to
Buyer a certificate dated as of the Effective Date and to the effect that the
execution of the Franchise Agreement with Franchisor shall comply with federal
and sstate law regarding the sale of franchises in the State of Tennessee.

(2)                                  Parent’s
President and Chief Financial Officer shall execute and deliver to Buyer a
certificate dated as of the Effective Date and to the effect that: (a) the

 7
 

indebtedness of Parent and its affiliates
(including the Seller) secured by UCC financing statements filed in favor of
Bank of America, N.A., as agent, has been assigned to and is held by Wells
Fargo Bank, N.A., as agent; (b) the total indebtedness owing to Wells Fargo
Bank, N.A. is in an amount not exceeding the sum set forth in said Certificate;
(c) neither the Parent nor any of its affiliates shall make any further or
additional borrowings in respect thereto; and (d) arrangements for the release
of the Liens upon the assets of Seller have been agreed to with the named
lender which permit procurement of such releases without requiring any further
act or payment by the Parent, Seller or any other affiliates thereof.

(E)                                 Secretary’s
Certificate; Resolutions.  The
secretary or other executive officer of Seller and Parent shall have delivered
or has delivered to Buyer a
certificate, dated as of the Effective Date, and to the effect (i) that all
action required to authorize and direct the Seller’s and Parent’s execution and
performance of this Agreement and any other agreement or instrument of
conveyance provided for herein has been taken; and (ii) that all such action so
taken remains in effect without modification or revocation.  There shall be or is attached to such
certificate a true and complete copy of the resolutions adopted by Seller’s and
Parent’s governing bodies which are required in order to effectuate such
actions.

(F)                                 Seller’s
Name.  Seller agrees to and shall
permit Buyer to use the name “New Horizons Computer Learning Center of Memphis”
as a fictitious business name for so long as the Franchise Agreement remains in
effect and, in that regard, shall (i) from time to time at or after the
Closing, execute such documents and take such actions as are reasonably
requested by Buyer to effectuate such result and (ii) refrain from using or
permitting others to use such name or any name similar thereto in the active
conduct of business which is competitive with the business of Buyer conducted
under that name.

(G)                                Acts
Following Closing

(1)                                  Lien
Releases.  Within thirty (30) days
following the Effective Date (or, where a longer period is required for reasons
beyond the control of the Seller or Parent, then up to sixty (60) days
following the Effective Date), the Seller shall have caused any Liens
(excluding the Permitted Liens) of record existing in respect to any of the
Purchased Assets to be terminated or otherwise released.

(2)                                  Supplemental
Schedules.  Because of the delay
customarily occurring in the posting of certain items to the books and records
of Seller, certain of the Schedules provided herewith by Seller reflect
information existing as of March 31, 2006 or a later date, but are incomplete
as of the Effective Date.  Therefore,
within thirty (30) days following the Effective Date, Seller shall deliver to
Buyer a schedule (the “Supplemental Schedule”) updating the listings,
documents and materials provided for in each of (a) Schedule 1.1(E) pertaining
to Receivables, and (b) Schedule 2.2(A)(1) pertaining to Assumed Balance Sheet
Liabilities.

(3)                                  Deliveries
Regarding Receivables.  From time to
time at the request of Buyer, Seller will provide Buyer with such assistance as
Buyer shall reasonably request in order to enable Buyer to enjoy the benefits
intended to be conveyed with regard to the Receivables (but no such request
shall require the expenditure of funds by, or require anything

 8
 

other than telephone consultations or
execution of letters or other written communications to customers of Seller or
issuers of credit cards honored by Seller in respect to the Receivables).

3.3                                 Acts
of Buyer and Owners.  At the Closing
(or, as to payments provided for in Clause (A) below, on the Effective Date),
Buyer and Owners, or whichever thereof is required by the circumstances, will
execute and deliver or cause to be executed and delivered, or has executed and
delivered or caused to be executed and delivered, to Seller and Parent, or
whichever thereof shall be required by the circumstances, such certificates,
instruments and documents as are required by this Agreement or as are required
to give full effect to the transactions provided for herein.  Such shall include, but not be limited to,
the following:

(A)                              Cash
Payment.  Buyer shall pay (i) to
Seller, the Cash Payment as provided for in Section 2.1(A) and pay (ii) to
Franchisor, the sum of Seventy-Five Thousand
($75,000.00) Dollars in full satisfaction of Buyer’s obligation to pay an
initial franchise fee (the “Initial Franchise Fee”) in connection with
the matters provided for in Section 3.5(B) below.

(B)                                Assumption.  Buyer will execute and deliver, or has
executed and delivered, to Seller (i) the Assignment and Assumption Agreement
pursuant to which, among other things, the Buyer assumes the Assumed Liabilities and all obligations
accruing on or after the Effective Date under any of the Assigned Contracts,
and (ii) the Assignment of Lease pursuant to which, among other things, the
Buyer assumes the obligations of Seller under the Facilities Lease to the
extent same accrue from and after the Effective Date.

(C)                                Secretary’s
Certificate; Resolutions.  The
secretary or other officer of Buyer has delivered or shall have delivered to
Seller a certificate, dated as of the Effective Date, and to the effect that
all action required to authorize and direct the execution and performance of
this Agreement and any other agreement or instrument of conveyance provided for
herein has been taken; and that all such action so taken remains in effect
without modification or revocation. 
There shall be attached to such certificate a true and complete copy of
the resolutions adopted by the members of Buyer authorizing such actions.

(D)                               Acts
Following Closing: Training Obligations. 
Buyer has determined that the procedures required to be followed by THEC
which are necessary to be complied with in order for Buyer to enjoy the
benefits of this Agreement are such that Buyer’s application may not be
submitted nor acted upon until after the Closing hereunder.  Buyer agrees (i) to make timely application
to THEC for such permits and licenses as may be required for such purposes,
(ii) to notify Seller of any progress occurring with regard thereto, and (iii)
to obtain final approval of such permits and licenses from THEC no later than
ninety (90) days after the Effective Date, failing in which Buyer shall be
responsible for paying for the delivery of training sufficient to meet the
Seller’s training obligations.

3.4                                 Prorations
at Closing.  Any and all real
property Taxes, personal property taxes, assessments, lease rentals, and other
charges applicable to the Leased Premises, the Purchased Assets or the Assumed
Liabilities will be prorated to the Effective Date, and such Taxes and other
charges shall be allocated between the Parties by adjustment at the Closing, or
as soon thereafter as the Parties may agree.

 9
 

3.5                                 Other
Agreements.  In addition to the
matters provided for elsewhere in this Agreement, at or prior to the Closing,
the Parties shall additionally execute, or cause their affiliates named therein
to execute, the following separate agreements:

(A)                              Employment
Arrangements.  On the Closing Date
but as of the Effective Date, Seller shall terminate the existing employees of
the Business and Buyer shall offer employment
and benefits (including health insurance) to those employees who Buyer wishes
to employ, all at Buyer’s sole cost and expense.

(B)                                Franchise
Agreement.  Buyer and New Horizons
Franchising Group, Inc., an affiliate of Seller and wholly-owned direct or
indirect subsidiary of Parent, as franchisor (the “Franchisor”), shall
execute a standard ten (10) year
franchise agreement (the “Franchise Agreement”).

(C)                                Consents
and Approvals.  All consents,
approvals or authorizations of any governmental agency (including the Tennessee
Higher Education Commission (“THEC”)), the landlord named in the
Facilities Lease and any other person whose approval is required to assign to
the Buyer the Assigned Contracts and any other Purchased Assets shall have been
obtained on terms satisfactory Buyer and shall be in full force and effect;
and, except as contemplated in Section 3.3(D), all Permits required to allow
Buyer to conduct the operations of the Business following the Effective Date
shall have been assigned to Buyer by Seller or otherwise obtained by Buyer.  In connection herewith, Buyer agrees,
consistent with applicable law and circumstances, to expeditiously take such
actions as are required to obtain the approval of THEC to the transfer of
Seller’s applicable licenses or, if such is not assignable, to initiate and diligently
undertake to obtain such THEC approval as may be required.  Buyer agrees to provide all reasonably
required information to THEC and to pay any necessary fees associated with such
approval.

Section 4                                             ADDITIONAL
COVENANTS AND AGREEMENTS

4.1                                 Indemnity
of Owners Regarding Guarantee of Facilities Lease.  Together with the requirements set forth in
this Agreement, the Buyer and certain other organizations affiliated by common
ownership with the Buyer are acquiring, by way of sublease or assignment, the
leasehold interests of Seller and certain other corporations affiliated by
common ownership with the Seller.  Such
leasehold interests, which include those created by the Facilities Lease, are
herein together referred to as the “Occupancy Leases”.  Parent is or may be a guarantor or otherwise
obligated for the performance by the tenant or lessee named in the Occupancy
Leases, which tenant or lessee will include the Buyer or its affiliates from
and after the Effective Date, and Parent may not be permitted to modify or
cancel its guaranty of the Occupancy Leases in connection with the assignments
of the Occupancy Leases.  Accordingly,
Parent may remain liable on the Occupancy Leases in the event Buyer is unable
to perform thereunder as required in the Assignment of Lease (or in any
sublease executed in lieu of an Assignment of Lease).  In consideration of the transfers
contemplated in this Agreement and the assignment (or subletting) of the
Occupancy Leases, the Owners agree to and do hereby jointly and severally
indemnity and agree to hold Parent harmless of and from any claims made by the
landlords named in the Occupancy Leases based on a breach by Buyer (or any
affiliated entity of the Buyer) of any such

 10
 

Occupancy Lease; provided, however,
the aggregate liability of the Owners hereunder in respect to all of the
aforesaid Occupancy Leases (and without duplication by reason of any similar
provision appearing in the agreements executed by Owners relating to the
purchases being contemporaneously made by Buyer’s affiliates) shall be and is
limited to the aggregate sum of Two Hundred and Fifty Thousand Dollars
($250,000) minus Fifty Thousand Dollars ($50,000) for each year (12
months) after the Effective Date; i.e., if no demand has been made upon Parent
for payment under any of the Occupancy Leases (or any guaranty or other
document executed by Parent in connection therewith) prior to each succeeding
annual anniversary of the Effective Date, then the liability of Owners in
respect to their indemnity provided for herein shall be reduced by Fifty
Thousand Dollars ($50,000) on each such anniversary date.

4.2                                 Non-Solicitation.  Excluding persons employed by Seller in
connection with the Business to whom Buyer shall make offers of employment as
provided for in Section 3.5(A), Buyer and Seller agree not to solicit, recruit
or hire any employees of the other Party, or the other Party’s affiliates, for
so long as the Franchise Agreement remains in effect or, if a shorter period of
time, for six (6) months following the termination of the employee’s employment
with such Party or such Party’s affiliates.

4.3                                 Regional
Services.  Within thirty (30) days
after the Effective Date, all regional services previously performed at the
Leased Premises for Seller’s affiliates in Indianapolis, Indiana and Cleveland,
Ohio (the “Regional Services”) shall be transitioned to another
affiliate of Seller at Seller’s cost and expense, but with Buyer’s cooperation;
provided, however, that Buyer shall ensure that all Regional Services continue
to be provided to the named Seller’s affiliates during the entire thirty (30)
day period after the Effective Date.  For
such services, Seller shall only be required to reimburse Buyer for accounting
and human resource services (exclusive of any other costs, such as the salary
of any Owner) in accordance with the terms of 
that certain Services and Cost Sharing Agreement dated as of April 30,
1998 by and between, among others, Seller, certain of Seller’s affiliates and
New Horizons Education Corporation.

4.4                                 Customer
Records. The Parties will maintain the confidentiality of all customer
records and files in accordance with applicable federal and state laws and
regulations.  On the Closing Date, Seller
agrees to deliver to Buyer all original customer records and files that relate
to the purchase and delivery of computer training for the Business, including the files which relate to
the Training Obligations.  In the event
that Seller is audited by any federal, state or local entity following the
Effective Date, Buyer shall provide Seller or its designees with reasonable
access, during normal business hours, to all original customer files related to
the Purchased Assets.

4.5                                 Insurance.  If Seller or Parent or any of their
affiliates possess insurance which provides coverage in respect to any claim of
loss made after the Effective Date, then such insurance shall be deemed primary
coverage for any such loss and Seller, Parent and their affiliates agree to
cooperate with the Buyer in filing and prosecuting any claim of loss relating
to such matters.  For a period of not
more than three (3) years following the Effective Date, Buyer agrees to
maintain general liability insurance in the amount of $1,000,000 per claim and
$1,000,000 in the aggregate; and, upon written
request by the Seller, Buyer will provide Seller

 11
 

with certificates of insurance naming Seller
or its affiliated companies as additional insureds in order to ensure that
Buyer is able to meet its indemnification obligations hereunder.

4.6                                 Further
Assurances.  Each of the Parties
agree to use their best efforts to timely satisfy any conditions to Closing
provided for herein and to assist each other in doing such things and matters
as are required to consummate the transactions provided for herein.  Without limiting the generality of the
foregoing, the Seller and Parent agree to assist the Buyer in procuring timely
transfer of all Assigned Contracts (including licenses, authorized training
center agreements, vendor contracts and Software licenses).

4.7                                 Announcements;
Confidentiality.  The Parties (or
certain of the Parties or their predecessors) have previously executed a
Confidentiality Agreement in connection with the transactions contemplated
herein.  As of the Effective Date, said
Confidentiality Agreement shall be of no further force or effect and, instead,
the Parties agree as follows:

(A)                              Confidentiality
Agreement.  Except to the extent of
the representations and warranties provided for in this Agreement, no Party
shall have any liability to the other based on any claim that the information
provided by such Party pursuant to the Confidentiality Agreement was untrue,
incomplete or misleading in any way. 
Rather, the Parties shall be entitled to rely only upon the
representations and warranties set forth or provided for in this Agreement.

(B)                                Public
Announcements.  The Seller and
Parent, on the one hand, and Buyer and Owners, on the other hand, will consult
with each other before issuing any press release or otherwise making any public
statement with respect to the transactions contemplated herein and shall not
issue any such press release or make any
such public statement without the approval of the others, unless counsel has
advised such Party that such release or other public statement must be issued
immediately and the issuing Party has not been able, despite its good faith
efforts, to secure the prior approval of the other Parties.

Section 5                                             REPRESENTATIONS AND
WARRANTIES OF SELLER AND PARENT. 
Each of Seller and/or Parent, or whichever thereof is referred to or as
the circumstances require (and, if both, then jointly and severally),
represents and warrants to the Buyer and Owners as follows:

5.1                                 Organization
and Existence.  Seller and Parent are
Delaware corporations, duly organized, validly existing and in good standing
under the laws of the State of Delaware and each has all necessary corporate
power to own its assets (including the Purchased Assets) and to operate its
business (including the Business) as now owned and operated by them.

5.2                                 Authority.  Seller and Parent each has the full legal
right, power, capacity, and authority required to enter into and perform its
obligations under this Agreement.  All
approvals of the Seller’s and/or Parent’s board of directors or other governing
body required to authorize the execution, delivery and performance of this
Agreement by such Parties has been obtained and, assuming due execution and
delivery by the Buyer and Owners, this Agreement represents a legal, valid and
binding obligation of Seller and Parent that is enforceable against them in
accordance with its terms, subject to (i) as to enforceability, bankruptcy,
insolvency, reorganization or other similar laws affecting the enforcement of
creditors rights generally, (ii)

 12
 

the obtaining of any approvals or consents
required in connection herewith and as provided for herein, and (iii) general
equitable principles and to the discretion of the court before which any
proceedings seeking the remedy of specific performance and injunctive and other
forms of equitable relief may be brought.

5.3                                 Title.  Seller has good and marketable title to, or a
valid leasehold or licensed interest in, all of the Purchased Assets and,
except as otherwise indicated herein, such Purchased Assets are free and clear
of any Liens other than the Permitted Liens.

5.4                                 No Breach; Required Approvals.  The
execution and delivery by the Seller and Parent of this Agreement, the
consummation by them of the transactions contemplated hereby, and the performance by them of their obligations
under this Agreement:

(A)                              will not violate any provision of the charter or
bylaws of such Parties, nor violate any laws, orders, decrees, judgments or
rulings of any judicial or governmental body applicable to the Seller or
Parent; and

(B)                                except as shown on Schedule
5.4 attached hereto, will not require the Seller or Parent to obtain
any consents or approvals of, or make any filings with or give any notices to,
any governmental bodies or any other person and will not violate, result in the
breach of, or constitute (or with notice or lapse of time or both, constitute)
a default under any contract, lease, license or other agreement to which the
Seller or Parent is a party or is bound.

5.5                                 Receivables.  The Receivables consist of those identified
pursuant to the requirements of Section 1.1(E) and neither Seller nor Parent
has received any written notice, nor have any Knowledge of the existence of any
claim of offset or counterclaim by any account debtor.  Otherwise, Seller makes no representation or
warranty regarding the quality of the Receivables nor whether or not they are
collectable.

5.6                                 The
Business and Related Matters.  To the
best of Seller’s and Parent’s Knowledge, the Seller and Parent represent as
follows (the “Seller Business Representations”): 

(A)                              Except
as expressly set forth in Seller’s most recent financial statements, a copy of
which is attached hereto as Schedule 5.6(A)
(the “Seller Financial Statements”), there is no liability, claim,
deficiency, guarantee or obligation (absolute,
accrued, contingent or otherwise), and there is no basis for any such
liability or obligation, with regard to the Business, nor do Seller or Parent
have Knowledge that any supplier, client or customer intends to make a reduction in its present level of business
conducted with the Business after the Effective Date, either as a result of
this Agreement and the transactions contemplated hereby or for any other
reason;

(B)                                As to each of the Assigned Contracts which is
material to the operation of the Business, each is in full force and effect and
no party thereto is in default or has failed to timely and fully discharge its
obligations thereunder, nor has there occurred any event that, with the lapse of time
and/or the giving of notice, would constitute a default thereunder;

 13
 

(C)                                The Business is
in compliance in all respects with all applicable laws respecting employment,
employment practices, employee classification, labor relations, family and
medical leaves, military leaves, leaves of absence generally, safety and
health, wages, hours and terms and conditions of employment, and all wages,
salaries, commissions, bonuses, benefits and other compensation due and payable
to all employees of the Business under any policy, practice, agreement, plan,
program or any statute or other law for services performed through the
Effective Date have been paid or accrued;

(D)                               Except as
otherwise expressly set forth in this Agreement, all Governmental
Permits which are necessary for the operation of the Business are, and will be
immediately after the Closing, valid and in full force and effect and
enforceable, and such Governmental Permits are sufficient to permit the
Business to be operated in its condition as of the Effective Date;

(E)                                 The Business is in material compliance with
all applicable federal, state and local statutes, laws, rulings and ordinances
and neither Seller nor Parent have any Knowledge of circumstances which
are likely to result in a material violation of any of the foregoing;

(F)                                 There are no claims, actions, suits,
proceedings, or investigations pending or threatened nor any unsatisfied
judgments or outstanding orders, injunctions, decrees, stipulations or
awards (whether rendered by a court or administrative agency or by arbitration), at law, equity or
otherwise, which involve the Business or any of the Purchased Assets or
Assumed Liabilities; and

(G)                                The
Schedules provided for in
Section 1.1 and Section 2.2 are true and complete with respect to the matters
provided for therein.

Section 6                                             REPRESENTATIONS OF
BUYER AND OWNERS.  Buyer
and/or Owners, or whichever thereof is referred to or as the circumstances
require (and, if both, then jointly and severally), represent and warrant to
the Seller and Parent as follows:

6.1                                 Organization
and Existence.  Buyer is a limited
liability company duly organized, validly existing and in good standing under
the laws of the State of Tennessee. 
Owners own 100% of the issued and outstanding membership interests of
Buyer.

6.2                                 Authority.  Subject
to receipt of any approvals required to be obtained from THEC for which
provision is made in Section 3.3(D) hereof, Buyer has the full legal
right, power, capacity, and authority required to enter into and perform its
obligations under this Agreement and the execution of this Agreement has been
duly authorized by the Owners.  Assuming
due execution and delivery by the Seller and Parent, this Agreement represents
a legal, valid and binding obligation of Buyer and Owners that is enforceable
against them in accordance with its terms, subject to (i) as to enforceability,
bankruptcy, insolvency, reorganization or other similar laws affecting the
enforcement of creditors rights generally, (ii) the obtaining of any approvals
or consents required in connection herewith and as provided for herein, and
(iii) general equitable principles and to the discretion of the court before
which any proceedings

 14
 

seeking the remedy of specific performance
and injunctive and other forms of equitable relief may be brought.

6.3                                 The
Business and Related Matters.  Buyer
and Seller acknowledge that certain of the Owners have served in official
capacities (including as Regional Vice President of the area in which the
Business operated prior to the Effective Date) with respect to the Business and
have been responsible for managing those who are involved in its day to day
affairs and operations.  As a result, to
the best of Owners’ Knowledge, the Owners represent as follows (the “Owner
Business Representations”): 

(A)                              Except
as expressly set forth in the Seller Financial Statements, there is no
liability, claim, deficiency, guarantee or obligation (absolute, accrued, contingent or otherwise), and there is no
basis for any such liability or obligation, with regard to the Business, nor
does any Owner have Knowledge that any supplier, client or customer intends to
make a reduction in its present level of business conducted with the Business
after the Effective Date, either as a result of this Agreement and the
transactions contemplated hereby or for any other reason;

(B)                                As to each of the Assigned Contracts which is
material to the operation of the Business, each is in full force and effect and no party
thereto is in default or has failed to timely and fully discharge its
obligations thereunder, nor has there
occurred any event that, with the lapse of time and/or the giving of notice,
would constitute a default thereunder;

(C)                                The Business is
in compliance in all respects with all applicable laws respecting employment,
employment practices, employee classification, labor relations, family and
medical leaves, military leaves, leaves of absence generally, safety and
health, wages, hours and terms and conditions of employment, and all wages, salaries, commissions, bonuses, benefits and other
compensation due and payable to all employees of the Business under any policy,
practice, agreement, plan, program or any statute or other law for services
performed through the Effective Date have been paid or accrued;

(D)                               Except as
otherwise expressly set forth in this Agreement, all Governmental
Permits which are necessary for the operation of the Business are, and will be
immediately after the Closing, valid and in full force and effect and
enforceable, and
such Governmental Permits are sufficient to permit the Business to be operated
in its condition as of the Effective Date; 

(E)                                 The
Business is in material compliance with all applicable federal, state and local
statutes, laws, rulings and ordinances
and Owners have no Knowledge of circumstances which are likely to result in a
material violation of any of the foregoing;

(F)                                 There
are no claims, actions, suits, proceedings, or investigations pending or
threatened nor any unsatisfied judgments or outstanding orders, injunctions,
decrees, stipulations or awards (whether rendered by a court or administrative
agency or by arbitration), at law, equity or otherwise, which involve the
Business or any of the Purchased Assets or Assumed Liabilities; and

 15
 

(G)                                The
Schedules provided for in Section 1.1 and Section 2.2 are true and complete
with respect to the matters provided
for therein.

Section 7                                             INDEMNIFICATION

7.1                                 Indemnity
by Buyer and/or Owners.  

(A)                              Buyer
and Owners shall indemnify, hold harmless and defend Seller and Parent, and
their respective affiliates, officers, agents and employees (each, a “Seller
Indemnified Party”), from and against any cause of action, claim, loss or liability arising out of or
resulting in any way from any breach or violation of the representations and
warranties set forth in Section 6, provided that such indemnification is
subject to the conditions set forth in Section 7.3 and to the limitations set
forth in Section 7.5.

(B)                                Buyer
(but not any Owner) shall indemnify, hold harmless and defend each Seller
Indemnified Party from and against any cause of action, claim, loss or
liability arising out of or resulting in any way from: (w) the negligent
acts or omissions of Buyer’s officers, employees, agents or members occurring
in connection with the conduct of the Business from and after the Effective
Date; (x) any breach of any covenant of Buyer set forth in this Agreement;
(y) any debts, claims, liabilities or lawsuits which relate to and are based upon the use or operation of the
Business or the Purchased Assets from and after the Effective Date; and (z)
the failure of Buyer to fully and adequately pay, perform or observe the
requirements of the Assumed Liabilities, including the Training Obligations.

7.2                                 Indemnity
by Seller and Parent.  Seller and
Parent shall indemnify, hold harmless and defend Buyer, Owners, and their
respective affiliates, officers, agents, members and employees (each, a “Buyer
Indemnified Party”) from and against any cause of action, claim, loss or
liability arising out of or resulting in any way from: (i) the negligent acts
or omissions of Seller’s officers, employees, agents or partners occurring in
connection with the conduct of the Business prior to the Effective Date; (ii)
any breach or violation of the representations and warranties set forth in
Section 5, provided that such indemnification is subject to the conditions set
forth in Section 7.3 and to the limitations set forth in Section 7.5; (iii) any
breach of any covenant of Seller or Parent set forth in this Agreement; (iv)
any debts, claims, liabilities or lawsuits which relate to the use or operation
of the Business or the Purchased Assets prior to the Effective Date, including
the Retained Liabilities, and (v) any failure to obtain the appropriate release
or termination of any Liens as contemplated in Section 3.2(G)(1) or any adverse
action being taken by any secured party having a claim through or under Seller
or Parent in respect to such Liens at any time.

7.3                                 Necessity
of Reliance.  Notwithstanding
anything contained herein to the contrary, the Parties agree and acknowledge
that no duty to indemnify shall arise by virtue of: 

(A)                              a
breach of Section 7.1(A) by Buyer and/or any Owner if Seller or Parent had
Knowledge of the matter which otherwise gave rise to the duty to indemnify; and/or

(B)                                a
breach of Section 7.2(ii) by Seller or Parent if any Owner had Knowledge of the
matter which otherwise gave rise to the duty to indemnify.

 16
 

7.4                                 Indemnification Procedure.

(A)                              Notification of Claim.  Any person
seeking indemnification under Section 7.1 or Section 7.2 (the “Indemnified Party”)
shall promptly notify the other party or parties from whom indemnification is
being sought (the “Indemnifying Party”)
in writing of any claim or demand for which the Indemnified Party is asserting
an indemnification claim.  Such notice
shall be accompanied by a reasonably full description of the basis for such claim
or demand, a reference to the provisions of this Agreement under which
liability is asserted and a statement as to the known amount of the loss or
damage (or, if not known, an estimate thereof if a reasonable basis exist for
estimating the same); provided, however, that no delay on the part of the
Indemnified Party in notifying any Indemnifying Party shall relieve the
Indemnifying Party for any liability or obligation hereunder unless (and then
solely to the extent) the Indemnifying Party is prejudiced by the delay.

(B)                                Defense of Legal Actions.  If the claim
which is the subject of any notification given pursuant to Section 7.4(A) is
based on a legal action filed by any third person (a “Third Party Claim”),
the Indemnifying Party shall have the right to take over the defense thereof,
but the Indemnifying Party shall notify the Indemnified Party within ten (10)
Business Days of its receipt of a claim notice pursuant to Section 7.4(A) as to
whether or not it will assume the defense against such Third Party Claim.

(1)                                  If the Indemnifying Party elects to take over the
defense of such Third Party Claim, then: (aa) it shall keep the Indemnified
Party informed as to the status thereof and promptly provide copies of
pleadings and other filings in the case; (bb) the Indemnifying Party shall have
the sole right to contest, settle or otherwise dispose of such Third Party
Claim on such terms as the Indemnified Party, in its sole discretion, shall
deem appropriate, provided that the consent of the Indemnified Party to any
settlement or disposition shall be required if (x) it results in any liability
to or equitable relief against the Indemnified Party not fully satisfied by the
Indemnifying Party, (y) the result would in any way restrict the future
activity of the Indemnified Party or any of its affiliates or (z) it would
result in the admission or finding of a violation of law or violation of the
rights of any person by the Indemnified Party or any of its affiliates; and
(cc) the Indemnified Party shall have the right to participate jointly in the
defense of such Third Party Claim, but shall do so at its own cost.

(2)                                  If the Indemnifying Party does not elect to take over
the defense of such Third Party Claim, then: (aa) the Indemnified Party shall
keep the Indemnifying Party informed as to the status thereof and promptly
provide copies of all pleadings and other filings in the case; (bb) the
Indemnified Party shall have the sole right to contest, settle or otherwise
dispose of such Third Party Claim on such terms as the Indemnified Party, in
its sole discretion, shall deem appropriate, provided that the consent of the
Indemnifying Party to any settlement or disposition shall be required if (x)
it results in any liability to or equitable relief against the Indemnifying
Party not fully satisfied by the Indemnified Party, (y) the result would
in any way restrict the future activity of the Indemnifying Party or any of its
affiliates or (z) it would result in the admission or finding of a
violation of law or violation of the rights of any person by the Indemnifying
Party or any of its affiliates; (cc) the Indemnifying Party shall have the
right to participate jointly in the defense of such Third Party Claim, but
shall do so at its own cost; and

 17
 

(dd) the Indemnified Party may preserve
its rights to indemnification for the recovery of any losses arising from such
Third Party Claim or the costs of defending the same, including, without
limitation, reasonable attorney’s fees.

(3)                                  The Indemnified Party and the Indemnifying Party
shall cooperate with each other in the defense of any Third Party Claim.

7.5                                 Limitations.  The indemnifications provided for
in this Section 7 are further subject to the following limitations:

(A)                              The Owners’ liability for breach of any of the Owner
Business Representations set forth in Section 6.3, for each of which the Owners
are required to indemnify Seller as set forth in Section 7.1(A), shall be
limited to the amount of the Cash Payment.

(B)                                The Parent’s liability for breach of any of the
Seller Business Representations set forth in Section 5.6, for each of which the
Parent is required to indemnify Buyer as set forth in Section 7.2(ii), shall be
limited to the amount of the Cash Payment.

7.6                                 Exclusivity of Remedies.  The
Parties hereby acknowledge and agree that their sole and exclusive remedy with
respect to any and all claims relating to the subject matter of this Agreement
(other than a claim for fraud or for specific performance of the terms of this
Agreement) shall be pursuant to, and limited by, the indemnification provisions
set forth in this Section 7.

Section 8                                             MISCELLANEOUS

8.1                                 Notices.  All notices with respect to this Agreement
will be in writing and sent by hand delivery, overnight delivery via a national
courier service, certified mail or facsimile to the Parties at their addresses
or facsimile numbers as follows:

If to Seller or Parent:

New Horizons Computer Learning Center of Memphis, Inc.

Attention: 
Office of General Counsel

1900 S. State College Blvd., Suite 200

Anaheim, CA 
92806

Tel:  (714)
940-8000

Fax:  (714) 938-6007

If to Buyer or any Owner:

Integrated Learning Solutions Memphis, LLC.

Attention: 
David L. Weinstein

4775 American Way

Memphis, TN 38118

Tel:  (901)
328-2120

Fax:  (901) 362-9044

 18
 

8.2                                 Entire
Agreement; Assignment.  This Agreement, together with the Exhibits
and Schedules provided for herein and attached hereto, represents the entire
agreement and understanding between the Parties and is and shall be binding on each Party and its or his
respective successors, heirs and assigns. 
This Agreement may not be assigned without the written consent of the
other Party, and may only be amended by a written agreement signed by
authorized representatives of all Parties.

8.3                                 Waiver.  The failure of either party to
enforce any right, remedy or condition of this Agreement shall not be deemed a
waiver thereof nor shall it void
or otherwise affect its right to enforce the same right, remedy or condition at
any subsequent time.

8.4                                 Survival
of Representations and Warranties.  The representations and warranties set
forth in this Agreement shall survive and continue until the expiration of the applicable statute
of limitations.

8.5                                 Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, and all of which
together shall constitute but one and the same instrument.

8.6                                 Facsimile
Signatures.  For purposes of
execution of this Agreement, faxed signature pages shall be deemed the same as original signature pages.

8.7                                 Governing
Law. 
This Agreement
will be governed by and construed in accordance with the laws of the State of
Tennessee applicable to agreements made and to
be performed entirely within the State of Tennessee without giving effect to
conflicts of laws principles.

(End of Page)

 19
 

IN WITNESS WHEREOF, the Parties
have executed this Asset Purchase Agreement as of the date first written above.

NEW HORIZONS COMPUTER LEARNING

CENTER OF MEMPHIS, INC.

	
  By:

  	
   

  	
   

  
	
  Thomas J. Bresnan

  
	
  Chief Executive Officer

  

 

 

INTEGRATED
LEARNING SOLUTIONS MEMPHIS, LLC

	
  By:

  	
   

  	
   

  
	
  David L. Weinstein

  
	
  President

  

 

The undersigned Owners
are acknowledged to have executed this Agreement solely for the purposes
provided for in Sections 4.1 (relating to an indemnity relating to Parent’s
obligations on the Facilities Lease), 4.7(B) (relating to public
announcements), Section 6 (relating to certain representations and warranties),
and 7.1(A) (relating to certain indemnitees). 
Additionally, the undersigned agree, as among themselves, that any
liability they or any of them may hereafter have pursuant to any of the
foregoing will be shared by them ratably based on their respective ownership
interests in Buyer, except that such agreement shall not impact or affect the
agreement of the undersigned that their liability to Seller and/or Parent in
respect to such matters is and shall be joint and several.

	
   

  	
   

  	
   

  
	
  David L. Weinstein

  	
  Stanley Graber

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Robert J.
  Hussey, III

  	
  Joel W. Brown

  
				

 

 20

EXHIBIT A

ASSIGNMENT
AND ASSUMPTION AGREEMENT

This Assignment and Assumption Agreement (the
“Assignment”) is made for the consideration provided for in, and pursuant to
the requirements of, a certain Asset Purchase Agreement (“Agreement”) of even
date herewith by and between NEW HORIZONS COMPUTER LEARNING CENTER OF MEMPHIS,
INC., a Delaware corporation (“Assignor”), and INTEGRATED LEARNING SOLUTIONS
MEMPHIS, LLC, a Tennessee limited liability company (“Assignee”).

WITNESSETH:

WHEREAS, pursuant to the Agreement, Assignee desires
to purchase and acquire from Assignor all of the Assignor’s right, title and
interest in, or arising under or pursuant to, those certain agreements
described in the Agreement, and herein referred to, as the “Assigned
Contracts”, being those (excluding, for these purposes, the Facilities Lease)
identified on the Attachment hereto, as a consequence of which the Assignee is
willing to assume Assignor’s obligations, responsibilities and liabilities
under the said Assigned Contracts which accrue from and after the date hereof;

NOW, THEREFORE:

1.             Assignor
hereby assigns, transfers and conveys to Assignee, all of Assignor’s right,
title and interest in, to and under the Assigned Contracts as defined herein
and identified on the Attachment hereto effective as of the date hereof.

2.             Assignee
does hereby accept the foregoing assignment and does hereby assume, and agree
to perform and be bound by, all of the covenants, conditions, obligations and
liabilities of Assignor under the said Assigned Contracts which accrue from and
after the date hereof.

IN WITNESS WHEREOF, the
parties hereto have caused this instrument to be duly executed and delivered as
of the Effective Date provided for in the Agreement.

	
  ASSIGNOR

  	
  ASSIGNEE

  
	
   

  	
   

  
	
  NEW HORIZONS COMPUTER LEARNING

  	
  INTEGRATED LEARNING SOLU-

  
	
  CENTER OF MEMPHIS, INC.

  	
  TIONS MEMPHIS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Thomas J.
  Bresnan

  	
  David L.
  Weinstein

  
	
  Chief Executive
  Officer

  	
  President and
  Chief Manager

  
					

ATTACHMENT

TO

ASSIGNMENT AND ASSUMPTION
AGREEMENT

The following is a listing of the Assigned Contracts, including the
Customer Contracts but excluding the Facilities Lease, to be and herewith
assigned to the Assignee.  To the extent
in writing, there is attached hereto a true and complete copy of each of the
Assigned Contracts.

EXHIBIT B

ASSIGNMENT
OF LEASE

	
  STATE OF TENNESSEE

  	
  )

  	
   

  
	
   

  	
  )

  	
  ASSIGNMENT OF LEASE

  
	
  COUNTY OF SHELBY

  	
  )

  	
   

  

 

FOR VALUABLE CONSIDERATION, and in consideration of
the agreements of the parties set forth in a certain Asset Purchase Agreement
(“Agreement”) of even date herewith by and between NEW HORIZONS COMPUTER
LEARNING CENTER OF MEMPHIS, INC., a Delaware corporation (“herein called
“ASSIGNOR”), and INTEGRATED LEARNING SOLUTIONS MEMPHIS, LLC, a Tennessee
limited liability company (herein called “ASSIGNEE”), the undersigned ASSIGNOR
does hereby set over, transfer, sell and assign unto ASSIGNEE all of ASSIGNOR’S
right, title and interest in and to the following described lease and
agreements (the “Facilities Lease”) entered into by and between ASSIGNOR, as
tenant or lessee, and the landlord or lessor named below:

	
  Name of Landlord:

  	
   

  	
   

  
	
   

  	
   

  
	
  Address of
  Premises:

  	
  4775 American Way, Memphis, Tennessee

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Lease:

  	
   

  	
  ,

  	
   

  	
   

  
	
   

  	
   

  
	
  Amendments:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
						

 

ASSIGNOR warrants that it has full title to the
foregoing leasehold estate, the Facilities Lease is in full force and effect,
no condition or state of facts exists which (with or without the giving of
notice and/or the lapse of time) would constitute a default by ASSIGNOR or, to
the Knowledge (as defined in the Agreement) of ASSIGNOR, by any other party to
the Facilities Lease, and ASSIGNOR has the power and right to assign its rights
as herein provided (subject to the approval of the landlord above named).

By its execution below, ASSIGNEE agrees to assume, and
to pay, perform and abide by, all of the obligations, indebtedness, terms,
provisions and conditions undertaken to be paid, performed or complied with by
ASSIGNOR under or pursuant to the Facilities Lease at any time from and after
May 1, 2006.

(Signatures on Next Page)

IN WITNESS WHEREOF, the undersigned parties have
executed this Assignment of Lease effective as of the 1st day of May, 2006.

	
  AS TO ASSIGNOR, SIGNED IN THE

  	
  NEW HORIZONS COMPUTER LEARN-

  
	
  PRESENCE OF:

  	
  ING CENTER OF MEMPHIS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Witness

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Witness

  	
   

  
	
   

  	
   

  
	
  AS TO ASSIGNEE, SIGNED IN THE

  	
  INTEGRATED LEARNING SOLU-

  
	
  PRESENCE OF:

  	
  TIONS MEMPHIS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Witness

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Witness

  	
   

  
								

LANDLORD’S
CONSENT AND CERTIFICATE

The undersigned,                                                                                   
(herein called the “Landlord”), is the Landlord or Lessor named in and under
the following described lease (herein called the “Facilities Lease”), namely:

The Lease Agreement dated
                       ,
19     by and between Landlord and New Horizons Computer
Center of Memphis, Inc. (herein called the “Tenant”), as lessee or tenant or as
the successor in interest by assignment from the original lessee or tenant, as
amended by agreements described as follows (Insert Relevant Data, if
any):                    
                                                                                                                                                                              ,

and by which the Landlord
has demised and created a leasehold estate (“Leasehold Estate”) in the
aforesaid Tenant in that real property located at and known as 4775 American
Way, Memphis, Tennessee.

FURTHER, the Landlord has
been advised that (1) the Tenant has agreed to sell, assign and transfer its
interest in and under the Facilities Lease to INTEGRATED LEARNING SOLUTIONS
MEMPHIS, LLC, a Tennessee limited liability company (herein called the
“Assignee”); and (2) the Assignee has been granted a license and franchise to
operate a “New Horizons Computer Learning Center” at and from the premises
described in the Facilities Lease; and (3) the execution of this Landlord’s
Consent and Certificate by Landlord constitutes a condition precedent to
Assignee’s acceptance of said assignment.

NOW, THEREFORE, in
consideration of the foregoing, the acceptance by Assignee of the assignment
above described, and the assumption and agreement by Assignee to pay, perform
and abide by the terms of the Facilities Lease from and after the date of its
receipt of the assignment thereof:

1.             Landlord acknowledges Tenant’s assignment, and consents
to Tenant’s assignment, to Assignee of all of Tenant’s right, title and
interest in, to and under the Facilities Lease and to the Leasehold Estate
created thereby.

2.             Landlord confirms to Assignee that (a) the Facilities
Lease is in full force and effect as of the date hereof; (b) the Facilities
Lease has not been modified, supplemented or amended in any way (except as
specifically identified hereinabove); (c) there exist no condition or state of
facts which (with or without the giving of notice and/or the lapse of time) would
constitute a default by any party to the Facilities Lease; and (d) all rent,
additional rent and other charges provided for in the Facilities Lease have
been paid to the extent same are payable through April 30, 2006.

3.             Landlord agrees that in the event of any default under
the Facilities Lease, or any change in the circumstances confirmed in the
foregoing paragraph 2 of this instrument, Landlord will give written notice
thereof to Assignee at 4775 American Way, Memphis, TN 38118 (attention: David L.
Weinstein), or to such other person(s) and at such other address(es) as may be
set forth in a writing delivered by Assignee to Landlord.

DATED this                 
day of                            ,
2006.

EXHIBIT C

BILL
OF SALE

FOR GOOD AND VALUABLE CONSIDERATION,
the receipt of which is hereby acknowledged, the undersigned, New Horizons
Computer Learning Center of Memphis, Inc., a Delaware corporation having its
principal place of business at 4775 American Way, Memphis, TN 38118 (“Seller”)
hereby sells, conveys, transfers, assigns and delivers to INTEGRATED LEARNING
SOLUTIONS MEMPHIS, LLC, a Tennessee limited liability company having an address
at 4775 American Way, Memphis, TN 38118 (“Buyer”), all of its right, title and
interest in and to the Purchased Assets as such term is defined in that certain
Asset Purchase Agreement (“Agreement”) dated as of May 1, 2006, by and among, inter alia, Buyer and Seller.

TO HAVE AND TO HOLD the same
unto Buyer, its successors and assigns forever, free and clear of all Liens
other than any Permitted Liens (each of which terms being as defined in the
Agreement.

This Bill of Sale is delivered pursuant to and is
subject to and governed by the terms and conditions of the Agreement. The
representations, warranties and covenants as set forth in the Agreement shall
survive delivery of this Bill of Sale as set forth in the Agreement.

This Bill of Sale is ancillary to the Agreement, and
in the event of a conflict between the terms of this Bill of Sale and the terms
of the Agreement, the terms of the Agreement shall govern.

IN WITNESS WHEREOF, the
undersigned has caused this instrument to be duly executed as of the 1st day of May, 2006.

NEW HORIZONS
COMPUTER LEARNING

CENTER OF MEMPHIS, INC.

	
  By:

  	
   

  	
   

  
	
   

  	
  Thomas J. Bresnan

  
	
   

  	
  PresidentExhibit
10.2

ASSET PURCHASE AGREEMENT

** Certain information in this exhibit has been
omitted and has been filed separately with the Securities and Exchange
Commission pursuant to a confidential treatment request under Rule 24b-2 of the
General Rules and Regulations under the Securities Exchange Act of 1934.

 

This Asset Purchase Agreement (“Agreement”) is
entered into on this 28th day of April, 2006 effective as of the
commencement of business on May 1, 2006 (the “Effective Date”) by and
among:

New Horizons Computer Learning Center of Nashville,
Inc., a Delaware corporation (“Seller”), together with its direct or
indirect parent corporation, New Horizons Worldwide, Inc. (“Parent”), on
the one hand;

GBWH Nashville, LLC, a Tennessee limited liability
company (“Buyer”); and

David L. Weinstein, Robert J. Hussey, III, Stanley
Graber and Joel W. Brown, each a natural person and, together, owners of
membership interests of the Buyer (“Owners”).

Buyer, Owners, Seller and Parent are hereinafter
sometimes individually referred to as a “Party” or collectively as the “Parties”.

WHEREAS, Seller wishes to sell to Buyer, and Buyer
wishes to purchase from Seller, substantially all of Seller’s assets related to
Seller’s computer training business located in Nashville, Tennessee (the “Business”);
and

WHEREAS, concurrent with
the transactions described in this Agreement, Buyer desires to become a
franchisee of New Horizons Franchising Group, Inc. (“Franchisor”) in
Nashville, Tennessee, it being understood that Franchisor is an affiliate of
Seller and direct or indirect subsidiary of the Parent.

NOW, THEREFORE, in
consideration of the covenants and agreements contained herein, the Parties
agree as follows:

Section 1                                             PURCHASE AND SALE OF
ASSETS; EXCLUDED ASSETS

1.1                                 Purchased
Assets.  Pursuant to the terms and
subject to the conditions set forth in this Agreement, on the Closing Date
herein below provided for but effective as of the Effective Date, Seller hereby
agrees to sell, grant, transfer, convey, assign and deliver to Buyer, and Buyer
agrees to purchase and acquire from Seller, all of the properties, assets and
rights owned, used, acquired for use, or arising or existing in connection with
the Business, whether tangible or intangible, and whether or not recorded on
Seller’s books and records, except for and excluding the Retained Assets
provided for in Section 1.2 below (all the foregoing being collectively
referred to as the “Purchased Assets”). 
The Purchased Assets shall include, but not be limited to, the
following:

(A)                              All rights of Seller under its occupancy
lease (the “Facilities Lease”) covering the premises known as 227 French
Landing Drive, Suite 400, Nashville, Tennessee 37228 (the “Leased Premises”),
a true and complete copy of the Facilities Lease being included at Schedule 1.1(A) attached hereto;

(B)                                All of Seller’s (x) vehicles used in
connection with the conduct of the Business (“Vehicles”), (y)
furniture, furnishings, fixtures, equipment, machinery, trade fixtures,
leasehold improvements, computers, computer discs, telephone systems and
security systems (“Equipment”), and (z) supplies, training and
course materials, computer training kits and manuals, catalogs, advertising
copy and other properties of a similar type used or held for use in the conduct
of the Business (“Inventory” and, together with the Vehicles and
Equipment, the “Tangible Personal Property”), a listing of all of which
is included at Schedule 1.1(B)
attached hereto;

(C)                                All of Seller’s (u) telephone and
facsimile numbers, (v) permits and other governmental authorizations
pertaining to the Business, to the extent such authorizations may legally be
assigned (“Governmental Permits”), (w) goodwill with customers,
vendors or prospective customers, and all customer lists, relating to the
conduct of the Business (“Goodwill”), (x) security or similar
deposits relating to the Business (“Deposits”), (y) prepaid
advertising (inclusive of yellow page advertising), prepaid expenses and other
prepayments relating to the conduct of the Business (“Prepayments”), and
(z) all other intangible assets relating to the Business or any of the
Purchased Assets (the foregoing being collectively called the “Intangible
Personal Property”), a listing of all of which is included at Schedule 1.1(C) attached hereto;

(D)                               All of Seller’s software (including rights
under Seller’s software licenses), including SAGE accounting software, and
other software used in the conduct of the Business (“Software”), but
excluding the CMS software otherwise provided for in the Franchise Agreement
(as defined in Section 3.5(B)), a listing of the Software being included at Schedule 1.1(D) attached hereto;

(E)                                 All of Seller’s accounts and notes
receivable, and other rights to receive payment, from customers, employees or
others arising from the conduct of the Business (“Receivables”), a
listing of all of which (showing, as to each, the name of the account debtor,
the amount owed and an aging schedule thereof) is included at Schedule 1.1(E) attached hereto;

(F)                                 All rights of Seller under any agreements or
contracts (“Assigned Contracts”) which (i) were entered into in the
ordinary course of the Business by Seller (excluding those entered into with
respect to employment of any person, insurance agreements and other agreements
of a nature and character as relate exclusively to any of the Retained Assets
or Retained Liabilities), (ii) were entered into in the ordinary course of the
Business with customers or prospective customers which benefit the Business
from and after the Effective Date,
including, but not limited to, computer training center agreements, rights to
receive payment from customers for services to be performed and invoiced after
the Effective Date, rights to payment with regard to coupon sales and
redemptions, PC Club sales, corporate technical club sales or applications, and
future training classes (“Customer Contracts”), and (iii) at the
election of Buyer (which Buyer may make by delivery of a writing to Parent at
any time before or after the Effective Date), any agreements entered into by
Parent for the benefit of the Business consistent with practices employed in
the operations of other affiliates of the Parent conducting businesses similar
to the Business; and

 2
 

(G)                                Seller’s book and records, books of account,
files, invoices, accounting records, and correspondence relating to any of the
foregoing (“Records”).

1.2                                 Retained
Assets.  Notwithstanding the
provisions of Section 1.1, the Purchased Assets shall not include any of the
following (the “Retained Assets”):

(A)                              Any
Customer Contracts between Seller’s affiliate and third party customers for the
delivery of training managed through the Enterprise Learning Solutions
department of Seller’s affiliate, provided that Buyer shall be entitled to
deliver training in its capacity as a New Horizons franchisee and shall be
deemed the “selling center” which shall entitle Buyer to receive customary
revenue sharing offered by the Enterprise Learning Solutions department of
Seller’s affiliate;

(B)                                Seller’s
cash and cash deposits;

(C)                                Seller’s
rights under this Agreement;

(D)                               Seller’s
corporate minute books, stock records and tax returns or other similar
corporate books and Records relating to the Business, to any of the Retained
Assets, to any liability or obligation of the Seller not comprising a part of
the Assumed Liabilities, or to the negotiation and consummation of the
transactions provided for in this Agreement, and those Records originals of
which Seller is required to maintain under applicable law;

(E)                                 Seller’s
rights arising under any contracts or agreements which are not among the
Assigned Contracts;

(F)                                 Any
rights of Seller relating to its conduct of the Business which arise from or
are related to services previously provided by the regional office of Seller’s
affiliate (such as accounting, payroll, legal or other similar services, except
as otherwise expressly provided herein); and

(G)                                Any
assets of any of Seller’s affiliates.

Section 2                                             PURCHASE PRICE

2.1                                 Closing
Payment.  In consideration for the
transfer of the Purchased Assets, Buyer shall on the Effective Date pay to the
Seller the following amounts (the “Purchase Price”):

(A)                              Cash
Payment.  The sum of Three Hundred
and Twenty-Five Thousand ($325,000.00) Dollars (the “Cash Payment”) in
the form of a wire transfer or as directed by Seller; and

(B)                                Assumption
of Liabilities.  An agreement (the “Assignment
and Assumption Agreement”) in form and content provided for in Section
3.2(A)(1) obligating Buyer to assume Seller’s obligations with regard to, and
to indemnify and hold harmless the Seller from, the Assumed Liabilities as
defined in Section 2.2(A) below.

 3
 

2.2                                 Assumed
and Retained Liabilities.

(A)                              Assumed
Liabilities.  The following shall
constitute, and are herein together referred to as, the “Assumed Liabilities”:

(1)                                  Those
liabilities which are (a) identified on Schedule
2.2(A)(1) attached hereto (including outstanding purchase orders,
trade accounts payable and accrued liabilities and expenses reflected on said
Schedule) and (b) any trade payables not so listed if (i) neither Seller nor
Parent have “Knowledge” (which term, when used in reference to any
person, means matters which are known to such persons and matters which might
reasonably be discovered by them in the exercise of due inquiry, excluding
inquiry of any adverse party to this Agreement) thereof, (ii) invoices are
delivered to Buyer promptly following their receipt or discovery, (iii) [**************],
and (iv) such liabilities are listed in the Supplemental Schedule provided for
in Section 3.2(G)(2) (the “Assumed Balance Sheet Liabilities”);

(2)                                  Subject
to the provisions set forth in Section 3.3(D) and the exclusion provided for in
Section 2.2(B)(4)(e), the Seller’s obligations to all individual and corporate
customers to provide training which has been purchased by such customers prior
to the Effective Date but not yet delivered as of the Effective Date (the “Training
Obligations”);

(3)                                  Any
obligation for cash refunds to customers in respect to any prepaid training,
except to the extent such constitutes a Retained Liability under Section
2.2(B)(4)(e);

(4)                                  Any
obligation to pay for training provided by any other franchisee or affiliate of
the Franchisor in respect to national training coupons sold by Seller, except
to the extent such constitutes a Retained Liability under Section 2.2(B)(4)(f);

(5)                                  Any
debt, liability or obligation accruing from and after the Effective Date under
or pursuant to any of the Assigned Contracts;

(6)                                  Any
liability which relates to the termination of William Penn, a former employee  of Seller whose employment was terminated
before the Effective Date;

(7)                                  Any
debts, liabilities or obligations incurred by Buyer, or actions, claims or
lawsuits asserted against either Buyer or Seller, which relate to the operation
of the Business on or after the Effective Date; and

(8)                                  Any
claim (and any liability resulting therefrom) against Seller which is made by a
person employed by Seller immediately prior to the Effective Date which is
based solely upon Buyer’s failure or refusal to make an offer of employment to
such person as of the Effective Date (but excluding claims arising from any
other circumstances, including but not limited to, any agreements existing or alleged
to exist between Seller and any such person, or any claims under the Worker
Adjustment and Retraining Notification Act, 29 U.S.C. §§2101-2109, as amended,
or any claims under the Employee Retirement Income Security Act of 1974, as
amended).

 4
 

(B)                                Retained
Liabilities.  Buyer shall not be
obligated to pay, perform or abide by, and Seller shall retain exclusive
responsibility for, any liabilities, debts, obligations, undertakings or
commitments of the Seller (the “Retained Liabilities”), other than the
Assumed Liabilities.  Except for Assumed
Balance Sheet Liabilities identified and set forth on Schedule 2.2(A)(1) (as
amended by the Supplemental Schedule), the Retained Liabilities shall include,
but not be limited to, the following:

(1)                                  Any
sales, use, income, gross receipts, excise, franchise, employment, withholding
or other imposition, duty or tax (each, a “Tax”) imposed by or payable
to any governmental body, federal, state or local, on or with respect to any
period prior to the Effective Date or in respect to the sale and transfer of
the Purchased Assets or the Assumed Liabilities;

(2)                                  Any
liability or obligation accruing prior to the Effective Date in respect to (a)
any employee benefit plan or any other employee benefit arrangement or
commitment which is or has been maintained or contributed to by Seller, (b) any
portion of any bonuses earned or accrued upon the basis of any events occurring
prior to the Effective Date, (c) any accrued vacation benefits, or (d) any
obligation to reimburse any employee for expenses incurred prior to the
Effective Date;

(3)                                  Any
liability or obligation which, absent this provision, comprises a part of the
Assumed Liabilities but which is covered by any insurance policy maintained by
Seller or any of Seller’s affiliates (but, then, only to the extent of such
insurance coverage);

(4)                                  Any
(a) inter-company charges or amounts due Parent or any affiliate of Seller or
Parent, (b) claims relating to inter-franchise payment obligations which are
based on the non-payment of amounts owing any other franchisee of the
Franchisor, (c) amounts due for borrowed money, (d) obligations arising under
any agreement, instrument or other contractual undertaking or commitment that
is not an Assigned Contract or which is not an Assumed Liability, (e)
obligations to refund prepayments by customers which Seller received without
providing any training prior to the Effective Date or which prepayments
represent duplicate payments, or (f) inter-franchise obligations relating to
payment for training provided by franchisees of the Franchisor other than the
Buyer or its affiliates upon redemption of national training coupons sold by
Seller prior to the Effective Date in circumstances where same are redeemed
more than one (1) year after the issuance of such coupons;

[**************]

(6)                                  Any
(a) liability or obligation to indemnify any director, officer, employee or
agent of Seller, except with regard to indemnification obligations owed to
Seller or Parent from Buyer and/or Owners arising under this Agreement, (b)
liability arising out of or in connection with any violation of a statute or
governmental rule, regulation, directive or other requirement, and any
liability or obligation of a conditional, contingent or similar nature except
for matters which arise from or relate to a breach of the Owner Business
Representations (as defined and further described in Section 6.3 below), or (c)
liability or obligation which arises

 5
 

from or is
based on a claim for injury to or death of persons, or damage to or destruction
of property, regardless of when asserted, but which arises from facts or circumstances
which occurred prior to the Effective Date;

(7)                                  The
obligations of Seller, Parent or their affiliate(s) on any guaranty of the
Facilities Lease (but subject to the provisions set forth in Section 4.1); and

(8)                                  Any
debts, liabilities or obligations incurred by Seller, or actions, claims or
lawsuits asserted against either Buyer or Seller which relate to the operation
of the Business prior to the Effective Date, except for matters which arise
from or relate to (x) a breach of the Owner Business Representations (as
defined and further described in Section 6.3 below), (y) the Assumed
Liabilities, and/or (z) the Training Obligations.

Section 3                                             CLOSING AND CLOSING
DATE

3.1                                 Closing
Date.  The consummation of the
transactions provided for in this Agreement (the “Closing”) has been
held on the date of this Agreement (the “Closing Date”) effective as of
the Effective Date.

3.2                                 Acts
of Seller and Parent.  At the
Closing, Seller and Parent, or whichever thereof may be required by the
circumstances, has taken such actions and has executed and delivered, or caused
to be executed and delivered, to Buyer such certificates, instruments and
documents, as are required by this Agreement or as are required to give full
effect to the transactions provided for herein.  Such actions and materials include, but are
not be limited to, the following:

(A)                              Conveyance
Documentation.  Seller shall execute
and deliver or cause to be executed and delivered, or has executed and
delivered or caused to be executed and delivered, to Buyer (with such
acknowledgments required by the circumstances) documents of conveyance which
are required to convey to Buyer the Purchased Assets free and clear of all
restrictions or conditions to sale, conveyance or transfer and free and clear
of all liens, mortgages, pledges, encumbrances, charges, claims, security
interests, Taxes, conditions or restrictions of any nature or description
whatsoever (“Liens”) (other than those identified on Schedule 3.2(A) hereto, the “Permitted
Liens”) and consistent with the other requirements of this Agreement.  Except as otherwise expressly provided in
this Agreement, the Purchased Assets are being sold “as is, where is” without
any express or implied warranties whatsoever. 
Without limiting the generality of the foregoing, the documents of
conveyance shall include the following:

(1)                                  An
assignment and assumption agreement (“Assignment and Assumption Agreement”)
in form and content substantially as shown on Exhibit
A attached hereto pursuant to which, among other things, the Seller
conveys and assigns to Buyer all right, title and interest of Seller arising
under, provided for in, or governed by any Assigned Contracts (other than the
Facilities Lease);

(2)                                  An
assignment and assumption agreement (“Assignment of Lease”) in form and
content substantially as shown on Exhibit B
attached hereto pursuant to which, among other things, the Seller conveys and
assigns to Buyer all right, title and interest of Seller arising under,
provided for in, or governed by the Facilities Lease, together with which

 6
 

Seller shall deliver a writing signed by the
landlord named in the Facilities Lease or other person whose approval or
consent is required in connection therewith setting forth, in form and content
reasonably acceptable to the Buyer, such person’s consent to said assignment
and certifying to the Buyer the date to which rents have been paid under the
Facilities Lease, the amount of any security or other deposit held by such
person in respect thereto, and the non-existence of any fact, occurrence or
circumstance known by such person which would, with or without the giving of
notice and/or lapse of time, constitute a default by the Seller under the
Facilities Lease;

(3)                                  A
bill of sale (“Bill of Sale”) in form and content substantially as shown
on Exhibit C attached hereto and
conveying to Buyer all of the Purchased Assets (other than as provided for in
the Assignment and Assumption Agreement, or in the Assignment of Lease, or in
any document of title provided for in Section 3.2(A)(4) below);

(4)                                  An
endorsement and delivery of certificates of title required to effectuate the
transfer to Buyer of any Vehicles or other Equipment, and any instruments the
endorsement and delivery of which is required to effectuate transfer to Buyer;
and

(5)                                  The
written consent to assignment (in form and substance reasonably satisfactory to
Buyer) of third persons whose approval of any conveyance contemplated herein is
required in order to comply with the requirements of any agreement or legal
requirement binding on the Seller, Parent or their affiliates.

(B)                                Delivery
of Possession.  Seller will deliver
or cause to be delivered to Buyer, or has delivered or caused to be delivered
to Buyer, physical possession of all Records, the originals of all Assigned
Contracts, and other tangible properties comprising any part of the Purchased
Assets, and all keys, combinations and other mechanisms for controlling access
to the Leased Premises and to any lock box or other repository to which
Receivables or other correspondence of Seller’s is routinely received.

(C)                                Receivables.  Seller maintains with SunTrust Bank (the “Custodial
Bank”) administrative arrangements regarding the collection of
Receivables.  Such arrangement provides
for a lock box arrangement with all items of payment delivered thereto.  At the Closing, Seller will deliver, or cause
to be delivered, to the Custodial Bank a writing which cancels the account/lock
box arrangement and irrevocably instructs the Custodial Bank to remit directly
to Buyer all correspondence, items of payment and other materials received by
it pursuant to any arrangements maintained with the Seller.  To the extent that Seller shall, from and
after the Effective Date, receive any items of payment or be credited with any
items of payment in respect to any Receivables, Seller will promptly account to
Buyer and pay to Buyer such amounts.

(D)                               Closing
Certificates.

(1)                                  Seller
and Parent will cause or have caused the Franchisor to execute and deliver to
Buyer a certificate dated as of the Effective Date and to the effect that the
execution of the Franchise Agreement with Franchisor shall comply with federal
and state law regarding the sale of franchises in the State of Tennessee.

 7
 

(2)                                  Parent’s
President and Chief Financial Officer shall execute and deliver to Buyer a
certificate dated as of the Effective Date and to the effect that: (a) the
indebtedness of Parent and its affiliates (including the Seller) secured by UCC
financing statements filed in favor of Bank of America, N.A., as agent, has
been assigned to and is held by Wells Fargo Bank, N.A., as agent; (b) the total
indebtedness owing to Wells Fargo Bank, N.A. is in an amount not exceeding the
sum set forth in said Certificate; (c) neither the Parent nor any of its
affiliates shall make any further or additional borrowings in respect thereto;
and (d) arrangements for the release of the Liens upon the assets of Seller
have been agreed to with the named lender which permit procurement of such
releases without requiring any further act or payment by the Parent, Seller or
any other affiliates thereof.

(E)                                 Secretary’s
Certificate; Resolutions.  The
secretary or other executive officer of Seller and Parent shall have delivered
or has delivered to Buyer a certificate, dated as of the Effective Date, and to
the effect (i) that all action required to authorize and direct the Seller’s
and Parent’s execution and performance of this Agreement and any other
agreement or instrument of conveyance provided for herein has been taken; and
(ii) that all such action so taken remains in effect without modification or
revocation.  There shall be or is
attached to such certificate a true and complete copy of the resolutions
adopted by Seller’s and Parent’s governing bodies which are required in order
to effectuate such actions.

(F)                                 Seller’s
Name.  Seller agrees to and shall
permit Buyer to use the name “New Horizons Computer Learning Center of
Nashville” as a fictitious business name for so long as the Franchise Agreement
remains in effect and, in that regard, shall (i) from time to time at or after
the Closing, execute such documents and take such actions as are reasonably
requested by Buyer to effectuate such result and (ii) refrain from using or
permitting others to use such name or any name similar thereto in the active conduct
of business which is competitive with the business of Buyer conducted under
that name.

(G)                                Acts
Following Closing

(1)                                  Lien
Releases.  Within thirty (30) days
following the Effective Date (or, where a longer period is required for reasons
beyond the control of the Seller or Parent, then up to sixty (60) days
following the Effective Date), the Seller shall have caused any Liens
(excluding the Permitted Liens) of record existing in respect to any of the
Purchased Assets to be terminated or otherwise released.

(2)                                  Supplemental
Schedules.  Because of the delay
customarily occurring in the posting of certain items to the books and records
of Seller, certain of the Schedules provided herewith by Seller reflect
information existing as of March 31, 2006 or a later date, but are incomplete
as of the Effective Date.  Therefore,
within thirty (30) days following the Effective Date, Seller shall deliver to
Buyer a schedule (the “Supplemental Schedule”) updating the listings,
documents and materials provided for in each of (a) Schedule 1.1(E) pertaining
to Receivables and (b) Schedule 2.2(A)(1) pertaining to Assumed Balance Sheet
Liabilities.

(3)                                  Deliveries
Regarding Receivables.  From time to
time at the request of Buyer, Seller will provide Buyer with such assistance as
Buyer shall reasonably

 8
 

request in order to enable Buyer to enjoy the
benefits intended to be conveyed with regard to the Receivables (but no such
request shall require the expenditure of funds by, or require anything other
than telephone consultations or execution of letters or other written
communications to customers of Seller or issuers of credit cards honored by
Seller in respect to the Receivables).

3.3                                 Acts
of Buyer and Owners.  At the Closing
(or, as to payments provided for in Clause (A) below, on the Effective Date),
Buyer and Owners, or whichever thereof is required by the circumstances, will
execute and deliver or cause to be executed and delivered, or has executed or
delivered or caused to be executed and delivered, to Seller and Parent, or whichever
thereof shall be required by the circumstances, such certificates, instruments
and documents as are required by this Agreement or as are required to give full
effect to the transactions provided for herein. 
Such shall include, but not be limited to, the following:

(A)                              Cash
Payment.  Buyer shall pay (i) to
Seller, the Cash Payment as provided for in Section 2.1(A) and (ii) to
Franchisor, the sum of Seventy-Five Thousand ($75,000.00) Dollars in full
satisfaction of Buyer’s obligation to pay an initial franchise fee (the “Initial
Franchise Fee”) in connection with the matters provided for in Section
3.5(B) below.

(B)                                Assumption.  Buyer will execute and deliver, or has
executed and delivered, to Seller (i) the Assignment and Assumption Agreement
pursuant to which, among other things, the Buyer assumes the Assumed
Liabilities and all obligations accruing on or after the Effective Date under
any of the Assigned Contracts, and (ii) the Assignment of Lease pursuant to
which, among other things, the Buyer assumes the obligations of Seller under
the Facilities Lease to the extent same accrue from and after the Effective
Date.

(C)                                Secretary’s
Certificate; Resolutions.  The
secretary or other officer of Buyer has delivered or shall have delivered to
Seller a certificate, dated as of the Effective Date, and to the effect that
all action required to authorize and direct the execution and performance of
this Agreement and any other agreement or instrument of conveyance provided for
herein has been taken; and that all such action so taken remains in effect
without modification or revocation. 
There shall be attached to such certificate a true and complete copy of
the resolutions adopted by the members of Buyer authorizing such actions.

(D)                               Acts
Following Closing: Training Obligations. 
Buyer has determined that the procedures required to be followed by THEC
which are necessary to be complied with in order for Buyer to enjoy the
benefits of this Agreement are such that Buyer’s application may not be
submitted nor acted upon until after the Closing hereunder.  Buyer agrees (i) to make timely application
to THEC for such permits and licenses as may be required for such purposes,
(ii) to notify Seller of any progress occurring with regard thereto, and (iii)
to obtain final approval of such permits and licenses from THEC no later than
ninety (90) days after the Effective Date, failing in which Buyer shall be
responsible for paying for the delivery of training sufficient to meet the
Seller’s training obligations.

3.4                                 Prorations
at Closing.  Any and all real
property Taxes, personal property taxes, assessments, lease rentals, and other
charges applicable to the Leased Premises, the Purchased Assets or the Assumed
Liabilities will be prorated to the Effective Date, and such Taxes and

 9
 

other charges shall be allocated between the
Parties by adjustment at the Closing, or as soon thereafter as the Parties may
agree.

3.5                                 Other
Agreements.  In addition to the
matters provided for elsewhere in this Agreement, at or prior to the Closing,
the Parties shall additionally execute, or cause their affiliates named therein
to execute, the following separate agreements:

(A)                              Employment
Arrangements.  On the Closing Date
but as of the Effective Date, Seller shall terminate the existing employees of
the Business and Buyer shall offer employment and benefits (including health
insurance) to those employees who Buyer wishes to employ, all at Buyer’s sole
cost and expense.

(B)                                Franchise
Agreement.  Buyer and New Horizons
Franchising Group, Inc., an affiliate of Seller and wholly-owned direct or
indirect subsidiary of Parent, as franchisor (the “Franchisor”), shall
execute a ten (10) year
franchise agreement (the “Franchise Agreement”).

(C)                                Consents
and Approvals.  All consents,
approvals or authorizations of any governmental agency (including the Tennessee
Higher Education Commission (“THEC”)), the landlord named in the
Facilities Lease and any other person whose approval is required to assign to
the Buyer the Assigned Contracts and any other Purchased Assets shall have been
obtained on terms satisfactory to Buyer and shall be in full force and effect;
and, except as contemplated in Section 3.3(D), all Permits required to allow
Buyer to conduct the operations of the Business following the Effective Date shall
have been assigned to Buyer by Seller or otherwise obtained by Buyer.  In connection herewith, Buyer agrees,
consistent with applicable law and circumstances, to expeditiously take such
actions as are required to obtain the approval of THEC to the transfer of
Seller’s applicable licenses or, if such is not assignable, to initiate and
diligently undertake to obtain such THEC approval as may be required.  Buyer agrees to provide all reasonably
required information to THEC and to pay any necessary fees associated with such
approval.

Section 4               ADDITIONAL COVENANTS
AND AGREEMENTS

4.1           Indemnity
of Owners Regarding Guarantee of Facilities Lease.  Together with the requirements set forth in
this Agreement, the Buyer and certain other organizations affiliated by common
ownership with the Buyer are acquiring, by way of sublease or assignment, the
leasehold interests of Seller and certain other corporations affiliated by
common ownership with the Seller.  Such
leasehold interests, which include those created by the Facilities Lease, are
herein together referred to as the “Occupancy Leases”.  Parent is or may be a guarantor or otherwise
obligated for the performance by the tenant or lessee named in the Occupancy
Leases, which tenant or lessee will include the Buyer or its affiliates from
and after the Effective Date, and Parent may not be permitted to modify or
cancel its guaranty of the Occupancy Leases in connection with the assignments
of the Occupancy Leases.  Accordingly, Parent
may remain liable on the Occupancy Leases in the event Buyer is unable to
perform thereunder as required in the Assignment of Lease (or in any sublease
executed in lieu of an Assignment of Lease). 
In consideration of the transfers contemplated in this Agreement and the
assignment (or subletting) of the Occupancy Leases, the Owners agree to and do
hereby jointly and severally indemnity and agree to hold Parent harmless of and
from any claims made by the landlords named in the

 10
 

Occupancy Leases based on a breach by Buyer
(or any affiliated entity of the Buyer) of any such Occupancy Lease; provided,
however, the aggregate liability of the Owners hereunder in respect to all of
the aforesaid Occupancy Leases (and without duplication by reason of any
similar provision appearing in the agreements executed by Owners relating to
the purchases being contemporaneously made by Buyer’s affiliates) shall be and
is limited to the aggregate sum of Two Hundred and Fifty Thousand Dollars
($250,000) minus Fifty Thousand Dollars ($50,000) for each year (12
months) after the Effective Date; i.e., if no demand has been made upon Parent
for payment under any of the Occupancy Leases (or any guaranty or other
document executed by Parent in connection therewith) prior to each succeeding
annual anniversary of the Effective Date, then the liability of Owners in
respect to their indemnity provided for herein shall be reduced by Fifty
Thousand Dollars ($50,000) on each such anniversary date.

4.2                                 Non-Solicitation.  Excluding persons employed by Seller in
connection with the Business to whom Buyer shall make offers of employment as
provided for in Section 3.5(A), Buyer and Seller agree not to solicit, recruit
or hire any employees of the other Party, or the other Party’s affiliates, for
so long as the Franchise Agreement remains in effect or, if a shorter period of
time, for six (6) months following the termination of the employee’s employment
with such Party or such Party’s affiliates.

4.3                                 Regional
Services.  Within thirty (30) days
after the Effective Date, all regional services previously performed at the
Leased Premises for Seller’s affiliates in Indianapolis, Indiana and Cleveland,
Ohio (the “Regional Services”) shall be transitioned to another
affiliate of Seller at Seller’s cost and expense, but with Buyer’s cooperation;
provided, however, that Buyer shall ensure that all Regional Services continue
to be provided to the named Seller’s affiliates during the entire thirty (30)
day period after the Effective Date.  For
such services, Seller shall only be required to reimburse Buyer for accounting
and human resource services (exclusive of any other costs, such as the salary
of any Owner) in accordance with the terms of 
that certain Services and Cost Sharing Agreement dated as of April 30,
1998 by and between, among others, Seller, certain of Seller’s affiliates and
New Horizons Education Corporation.

4.4                                 Customer
Records. The Parties will maintain the confidentiality of all customer
records and files in accordance with applicable federal and state laws and
regulations.  On the Closing Date, Seller
agrees to deliver to Buyer all original customer records and files that relate
to the purchase and delivery of computer training for the Business, including the files which relate to
the Training Obligations.  In the event
that Seller is audited by any federal, state or local entity following the
Effective Date, Buyer shall provide Seller or its designees with reasonable
access, during normal business hours, to all original customer files related to
the Purchased Assets.

4.5                                 Insurance.
 If Seller or Parent or any of their
affiliates possess insurance which provides coverage in respect to any claim of
loss made after the Effective Date, then such insurance shall be deemed primary
coverage for any such loss and Seller, Parent and their affiliates agree to
cooperate with the Buyer in filing and prosecuting any claim of loss relating
to such matters.  For a period of not
more than three (3) years following the Effective Date, Buyer agrees to
maintain general liability insurance in the amount of $1,000,000 per claim and
$1,000,000 in the aggregate; and, upon written
request by the Seller, Buyer will provide Seller

 11
 

with certificates of insurance naming Seller
or its affiliated companies as additional insureds in order to ensure that
Buyer is able to meet its indemnification obligations hereunder.

4.6                                 Further
Assurances.  Each of the Parties
agree to use their best efforts to timely satisfy any conditions to Closing
provided for herein and to assist each other in doing such things and matters
as are required to consummate the transactions provided for herein.  Without limiting the generality of the
foregoing, the Seller and Parent agree to assist the Buyer in procuring timely
transfer of all Assigned Contracts (including licenses, authorized training
center agreements, vendor contracts and Software licenses).

4.7                                 Announcements;
Confidentiality.  The Parties (or
certain of the Parties or their predecessors) have previously executed a
Confidentiality Agreement in connection with the transactions contemplated
herein.  As of the Effective Date, said
Confidentiality Agreement shall be of no further force or effect and, instead,
the Parties agree as follows:

(A)                              Confidentiality
Agreement.  Except to the extent of
the representations and warranties provided for in this Agreement, no Party
shall have any liability to the other based on any claim that the information
provided by such Party pursuant to the Confidentiality Agreement was untrue,
incomplete or misleading in any way. 
Rather, the Parties shall be entitled to rely only upon the
representations and warranties set forth or provided for in this Agreement.

(B)                                Public
Announcements.  The Seller and
Parent, on the one hand, and Buyer and Owners, on the other hand, will consult
with each other before issuing any press release or otherwise making any public
statement with respect to the transactions contemplated herein and shall not
issue any such press release or make any such public statement without the
approval of the others, unless counsel has advised such Party that such release
or other public statement must be issued immediately and the issuing Party has
not been able, despite its good faith efforts, to secure the prior approval of
the other Parties.

Section 5                                             REPRESENTATIONS AND
WARRANTIES OF SELLER AND PARENT. 
Each of Seller and/or Parent, or whichever thereof is referred to or as
the circumstances require (and, if both, then jointly and severally),
represents and warrants to the Buyer and Owners as follows:

5.1                                 Organization
and Existence.  Seller and Parent are
Delaware corporations, duly organized, validly existing and in good standing
under the laws of the State of Delaware and each has all necessary corporate
power to own its assets (including the Purchased Assets) and to operate its
business (including the Business) as now owned and operated by them.

5.2                                 Authority.  Seller and Parent each has the full legal
right, power, capacity, and authority required to enter into and perform its
obligations under this Agreement.  All
approvals of the Seller’s and/or Parent’s board of directors or other governing
body required to authorize the execution, delivery and performance of this
Agreement by such Parties has been obtained and, assuming due execution and
delivery by the Buyer and Owners, this Agreement represents a legal, valid and
binding obligation of Seller and Parent that is enforceable against them in
accordance with its terms, subject to (i) as to enforceability, bankruptcy,
insolvency, reorganization or other similar laws affecting the enforcement of
creditors rights generally, (ii)

 12
 

the obtaining of any approvals or consents
required in connection herewith and as provided for herein, and (iii) general
equitable principles and to the discretion of the court before which any
proceedings seeking the remedy of specific performance and injunctive and other
forms of equitable relief may be brought.

5.3                                 Title.  Seller has good and marketable title to, or a
valid leasehold or licensed interest in, all of the Purchased Assets and,
except as otherwise indicated herein, such Purchased Assets are free and clear
of any Liens other than the Permitted Liens.

5.4                                 No Breach; Required Approvals.  The
execution and delivery by the Seller and Parent of this Agreement, the
consummation by them of the transactions contemplated hereby, and the performance by them of their obligations
under this Agreement:

(A)                              will not violate any provision of the charter or
bylaws of such Parties, nor violate any laws, orders, decrees, judgments or
rulings of any judicial or governmental body applicable to the Seller or
Parent; and

(B)                                except as shown on Schedule
5.4 attached hereto, will not require the Seller or Parent to obtain
any consents or approvals of, or make any filings with or give any notices to,
any governmental bodies or any other person and will not violate, result in the
breach of, or constitute (or with notice or lapse of time or both, constitute)
a default under any contract, lease, license or other agreement to which the
Seller or Parent is a party or is bound.

5.5                                 Receivables.  The Receivables consist of those identified
pursuant to the requirements of Section 1.1(E) and neither Seller nor Parent
has received any written notice, nor have any Knowledge of the existence of any
claim of offset or counterclaim by any account debtor.  Otherwise, Seller makes no representation or
warranty regarding the quality of the Receivables nor whether or not they are
collectable.

5.6                                 The
Business and Related Matters.  To the
best of Seller’s and Parent’s Knowledge, the Seller and Parent represent as
follows (the “Seller Business Representations”):

(A)                              Except
as expressly set forth in Seller’s most recent financial statements, a copy of
which is attached hereto as Schedule 5.6(A)
(the “Seller Financial Statements”), there is no liability, claim,
deficiency, guarantee or obligation (absolute,
accrued, contingent or otherwise), and there is no basis for any such
liability or obligation, with regard to the Business, nor do Seller or Parent
have Knowledge that any supplier, client or customer intends to make a reduction in its present level of business
conducted with the Business after the Effective Date, either as a result of
this Agreement and the transactions contemplated hereby or for any other
reason;

(B)                                As to each of the Assigned Contracts which is
material to the operation of the Business, each is in full force and effect and
no party thereto is in default or has failed to timely and fully discharge its
obligations thereunder, nor has there occurred any event that, with the lapse of time and/or
the giving of notice, would constitute a default thereunder;

 13
 

(C)                                The Business is
in compliance in all respects with all applicable laws respecting employment,
employment practices, employee classification, labor relations, family and
medical leaves, military leaves, leaves of absence generally, safety and
health, wages, hours and terms and conditions of employment, and all wages,
salaries, commissions, bonuses, benefits and other compensation due and payable
to all employees of the Business under any policy, practice, agreement, plan,
program or any statute or other law for services performed through the
Effective Date have been paid or accrued;

(D)                               Except as
otherwise expressly set forth in this Agreement, all Governmental
Permits which are necessary for the operation of the Business are, and will be
immediately after the Closing, valid and in full force and effect and
enforceable, and such Governmental Permits are sufficient to permit the
Business to be operated in its condition as of the Effective Date;

(E)                                 The Business is in material compliance with
all applicable federal, state and local statutes, laws, rulings and ordinances
and neither Seller nor Parent have any Knowledge of circumstances which
are likely to result in a material violation of any of the foregoing;

(F)                                 There are no claims, actions, suits,
proceedings, or investigations pending or threatened nor any unsatisfied
judgments or outstanding orders, injunctions, decrees, stipulations or
awards (whether rendered by a court or administrative agency or by arbitration), at law, equity or
otherwise, which involve the Business or any of the Purchased Assets or
Assumed Liabilities; and

(G)                                The
Schedules provided for in Section 1.1 and Section 2.2 are true and complete
with respect to the matters provided for therein.

Section 6                                             REPRESENTATIONS OF
BUYER AND OWNERS.  Buyer
and/or Owners, or whichever thereof is referred to or as the circumstances
require (and, if both, then jointly and severally), represent and warrant to
the Seller and Parent as follows:

6.1                                 Organization
and Existence.  Buyer is a limited
liability company duly organized, validly existing and in good standing under
the laws of the State of Tennessee. 
Owners own 100% of the issued and outstanding membership interests of
Buyer.

6.2                                 Authority.  Subject
to receipt of any approvals required to be obtained from THEC for which
provision is made in Section 3.3(D) hereof, Buyer has the full legal
right, power, capacity, and authority required to enter into and perform its
obligations under this Agreement and the execution of this Agreement has been
duly authorized by the Owners.  Assuming
due execution and delivery by the Seller and Parent, this Agreement represents
a legal, valid and binding obligation of Buyer and Owners that is enforceable
against them in accordance with its terms, subject to (i) as to enforceability,
bankruptcy, insolvency, reorganization or other similar laws affecting the
enforcement of creditors rights generally, (ii) the obtaining of any approvals
or consents required in connection herewith and as provided for herein, and
(iii) general equitable principles and to the discretion of the court before
which any proceedings

 14
 

seeking the remedy of specific performance
and injunctive and other forms of equitable relief may be brought.

6.3                                 The
Business and Related Matters.  Buyer
and Seller acknowledge that certain of the Owners have served in official
capacities (including as Regional Vice President of the area in which the
Business operated prior to the Effective Date) with respect to the Business and
have been responsible for managing those who are involved in its day to day
affairs and operations.  As a result, to
the best of Owners’ Knowledge, the Owners represent as follows (the “Owner
Business Representations”):

(A)                              Except
as expressly set forth in the Seller Financial Statements, there is no
liability, claim, deficiency, guarantee or obligation (absolute, accrued, contingent or otherwise), and there is no
basis for any such liability or obligation, with regard to the Business, nor
does any Owner have Knowledge that any supplier, client or customer intends to
make a reduction in its present level of business conducted with the Business
after the Effective Date, either as a result of this Agreement and the
transactions contemplated hereby or for any other reason;

(B)                                As to each of the Assigned Contracts which is
material to the operation of the Business, each is in full force and effect and no party
thereto is in default or has failed to timely and fully discharge its
obligations thereunder, nor has there occurred any event that, with the lapse
of time and/or the giving of notice, would constitute a default thereunder;

(C)                                The Business is
in compliance in all respects with all applicable laws respecting employment,
employment practices, employee classification, labor relations, family and
medical leaves, military leaves, leaves of absence generally, safety and
health, wages, hours and terms and conditions of employment, and all wages,
salaries, commissions, bonuses, benefits and other compensation due and payable
to all employees of the Business under any policy, practice, agreement, plan,
program or any statute or other law for services performed through the
Effective Date have been paid or accrued;

(D)                               Except as
otherwise expressly set forth in this Agreement, all Governmental
Permits which are necessary for the operation of the Business are, and will be
immediately after the Closing, valid and in full force and effect and
enforceable, and
such Governmental Permits are sufficient to permit the Business to be operated
in its condition as of the Effective Date;

(E)                                 The
Business is in material compliance with all applicable federal, state and local
statutes, laws, rulings and ordinances and Owners have no Knowledge of
circumstances which are likely to result in a material violation of any of the
foregoing;

(F)                                 There
are no claims, actions, suits, proceedings, or investigations pending or
threatened nor any unsatisfied judgments or outstanding orders, injunctions,
decrees, stipulations or awards (whether rendered by a court or administrative
agency or by arbitration), at law, equity or otherwise, which involve the
Business or any of the Purchased Assets or Assumed Liabilities; and

 15
 

(G)                                The
Schedules provided for in Section 1.1 and Section 2.2 are true and complete
with respect to the matters provided for therein.

Section 7                                             INDEMNIFICATION

7.1                                 Indemnity
by Buyer and/or Owners.

(A)                              Buyer
and Owners shall indemnify, hold harmless and defend Seller and Parent, and
their respective affiliates, officers, agents and employees (each, a “Seller
Indemnified Party”), from and against any cause of action, claim, loss or
liability arising out of or resulting in any way from any breach or violation
of the representations and warranties set forth in Section 6, provided that
such indemnification is subject to the conditions set forth in Section 7.3 and
to the limitations set forth in Section 7.5.

(B)                                Buyer
(but not any Owner) shall indemnify, hold harmless and defend each Seller
Indemnified Party from and against any cause of action, claim, loss or
liability arising out of or resulting in any way from: (w) the negligent
acts or omissions of Buyer’s officers, employees, agents or members occurring
in connection with the conduct of the Business from and after the Effective
Date; (x) any breach of any covenant of Buyer set forth in this
Agreement; (y) any debts, claims, liabilities or lawsuits which relate
to and are based upon the use or operation of the Business or the Purchased
Assets from and after the Effective Date; and (z) the failure of Buyer
to fully and adequately pay, perform or observe the requirements of the Assumed
Liabilities, including the Training Obligations.

7.2                                 Indemnity
by Seller and Parent.  Seller and
Parent shall indemnify, hold harmless and defend Buyer, Owners, and their
respective affiliates, officers, agents, members and employees (each, a “Buyer
Indemnified Party”) from and against any cause of action, claim, loss or
liability arising out of or resulting in any way from: (i) the negligent acts
or omissions of Seller’s officers, employees, agents or partners occurring in
connection with the conduct of the Business prior to the Effective Date; (ii)
any breach or violation of the representations and warranties set forth in
Section 5, provided that such indemnification is subject to the conditions set
forth in Section 7.3 and to the limitations set forth in Section 7.5; (iii) any
breach of any covenant of Seller or Parent set forth in this Agreement; (iv)
any debts, claims, liabilities or lawsuits which relate to the use or operation
of the Business or the Purchased Assets prior to the Effective Date, including
the Retained Liabilities, and (v) any failure to obtain the appropriate release
or termination of any Liens as contemplated in Section 3.2(G)(1) or any adverse
action being taken by any secured party having a claim through or under Seller
or Parent in respect to such Liens at any time.

7.3                                 Necessity
of Reliance.  Notwithstanding
anything contained herein to the contrary, the Parties agree and acknowledge
that no duty to indemnify shall arise by virtue of:

(A)                              a
breach of Section 7.1(A) by Buyer and/or any Owner if Seller or Parent had
Knowledge of the matter which otherwise gave rise to the duty to indemnify;
and/or

(B)                                a
breach of Section 7.2(ii) by Seller or Parent if any Owner had Knowledge of the
matter which otherwise gave rise to the duty to indemnify.

 16
 

7.4                                 Indemnification Procedure.

(A)                              Notification of Claim.  Any person
seeking indemnification under Section 7.1 or Section 7.2 (the “Indemnified Party”)
shall promptly notify the other party or parties from whom indemnification is
being sought (the “Indemnifying Party”)
in writing of any claim or demand for which the Indemnified Party is asserting
an indemnification claim.  Such notice shall
be accompanied by a reasonably full description of the basis for such claim or
demand, a reference to the provisions of this Agreement under which liability
is asserted and a statement as to the known amount of the loss or damage (or,
if not known, an estimate thereof if a reasonable basis exist for estimating
the same); provided, however, that no delay on the part of the Indemnified
Party in notifying any Indemnifying Party shall relieve the Indemnifying Party
for any liability or obligation hereunder unless (and then solely to the
extent) the Indemnifying Party is prejudiced by the delay.

(B)                                Defense of Legal Actions.  If the claim
which is the subject of any notification given pursuant to Section 7.4(A) is
based on a legal action filed by any third person (a “Third Party Claim”),
the Indemnifying Party shall have the right to take over the defense thereof,
but the Indemnifying Party shall notify the Indemnified Party within ten (10)
Business Days of its receipt of a claim notice pursuant to Section 7.4(A) as to
whether or not it will assume the defense against such Third Party Claim.

(1)                                  If the Indemnifying Party elects to take over the
defense of such Third Party Claim, then: (aa) it shall keep the Indemnified
Party informed as to the status thereof and promptly provide copies of
pleadings and other filings in the case; (bb) the Indemnifying Party shall have
the sole right to contest, settle or otherwise dispose of such Third Party
Claim on such terms as the Indemnified Party, in its sole discretion, shall
deem appropriate, provided that the consent of the Indemnified Party to any
settlement or disposition shall be required if (x) it results in any liability
to or equitable relief against the Indemnified Party not fully satisfied by the
Indemnifying Party, (y) the result would in any way restrict the future
activity of the Indemnified Party or any of its affiliates or (z) it would
result in the admission or finding of a violation of law or violation of the
rights of any person by the Indemnified Party or any of its affiliates; and
(cc) the Indemnified Party shall have the right to participate jointly in the
defense of such Third Party Claim, but shall do so at its own cost.

(2)                                  If the Indemnifying Party does not elect to take over
the defense of such Third Party Claim, then: (aa) the Indemnified Party shall
keep the Indemnifying Party informed as to the status thereof and promptly
provide copies of all pleadings and other filings in the case; (bb) the
Indemnified Party shall have the sole right to contest, settle or otherwise
dispose of such Third Party Claim on such terms as the Indemnified Party, in
its sole discretion, shall deem appropriate, provided that the consent of the
Indemnifying Party to any settlement or disposition shall be required if (x)
it results in any liability to or equitable relief against the Indemnifying
Party not fully satisfied by the Indemnified Party, (y) the result would
in any way restrict the future activity of the Indemnifying Party or any of its
affiliates or (z) it would result in the admission or finding of a
violation of law or violation of the rights of any person by the Indemnifying
Party or any of its affiliates; (cc) the Indemnifying Party shall have the
right to participate jointly in the defense of such Third Party Claim, but
shall do so at its own cost; and

 17
 

(dd) the Indemnified Party may
preserve its rights to indemnification for the recovery of any losses arising
from such Third Party Claim or the costs of defending the same, including,
without limitation, reasonable attorney’s fees.

(3)                                  The Indemnified Party and the Indemnifying Party
shall cooperate with each other in the defense of any Third Party Claim.

7.5                                 Limitations.  The indemnifications provided for
in this Section 7 are further subject to the following limitations:

(A)                              The Owners’ liability for breach of any of the Owner
Business Representations set forth in Section 6.3, for each of which the Owners
are required to indemnify Seller as set forth in Section 7.1(A), shall be
limited to the amount of the Cash Payment.

(B)                                The Parent’s liability for breach of any of the
Seller Business Representations set forth in Section 5.6, for each of which the
Parent is required to indemnify Buyer as set forth in Section 7.2(ii), shall be
limited to the amount of the Cash Payment.

7.6                                 Exclusivity of Remedies.  The
Parties hereby acknowledge and agree that their sole and exclusive remedy with
respect to any and all claims relating to the subject matter of this Agreement
(other than a claim for fraud or for specific performance of the terms of this
Agreement) shall be pursuant to, and limited by, the indemnification provisions
set forth in this Section 7.

Section 8                                             MISCELLANEOUS

8.1                                 Notices.  All notices with respect to this Agreement
will be in writing and sent by hand delivery, overnight delivery via a national
courier service, certified mail or facsimile to the Parties at their addresses
or facsimile numbers as follows:

If to Seller or Parent:

New Horizons Computer Learning Center of Nashville,
Inc.

Attention: 
Office of General Counsel

1900 S. State College Blvd., Suite 200

Anaheim, CA 
92806

Tel:  (714)
940-8000

Fax:  (714) 938-6007

If to Buyer or any Owner:

GBWH Nashville, LLC.

Attention: 
David L. Weinstein

4775 American Way

Memphis, TN 38118

Tel:  (901)
328-2120

Fax:  (901) 362-9044

 18
 

8.2                                 Entire
Agreement; Assignment.  This Agreement, together with the Exhibits
and Schedules provided for herein and attached hereto, represents the entire
agreement and understanding between the Parties and is and shall be binding on each Party and its or his
respective successors, heirs and assigns. 
This Agreement may not be assigned without the written consent of the
other Party, and may only be amended by a written agreement signed by
authorized representatives of all Parties.

8.3                                 Waiver.  The failure of either party to
enforce any right, remedy or condition of this Agreement shall not be deemed a
waiver thereof nor shall it void
or otherwise affect its right to enforce the same right, remedy or condition at
any subsequent time.

8.4                                 Survival
of Representations and Warranties.  The representations and warranties set
forth in this Agreement shall survive and continue until the expiration of the applicable statute
of limitations.

8.5                                 Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, and all of which
together shall constitute but one and the same instrument.

8.6                                 Facsimile
Signatures.  For purposes of
execution of this Agreement, faxed signature pages shall be deemed the same as original signature pages.

8.7                                 Governing
Law. 
This Agreement
will be governed by and construed in accordance with the laws of the State of
Tennessee applicable to agreements made and to
be performed entirely within the State of Tennessee without giving effect to
conflicts of laws principles.

(End of Page)

 19
 

IN WITNESS WHEREOF, the Parties
have executed this Agreement as of the date first written above.

NEW HORIZONS COMPUTER LEARNING

CENTER OF NASHVILLE, INC.

	
  By:

  	
   

  	
   

  
	
  Thomas J. Bresnan

  
	
  Chief Executive Officer

  

 

GBWH
NASHVILLE, LLC

	
  By:

  	
   

  	
   

  
	
  David L. Weinstein

  
	
  President

  

 

The undersigned Owners
are acknowledged to have executed this Agreement solely for the purposes
provided for in Sections 4.1 (relating to an indemnity relating to Parent’s
obligations on the Facilities Lease), 4.7(B) (relating to public
announcements), Section 6 (relating to certain representations and warranties),
and 7.1(A) (relating to certain indemnitees). 
Additionally, the undersigned agree, as among themselves, that any
liability they or any of them may hereafter have pursuant to any of the
foregoing will be shared by them ratably based on their respective ownership
interests in Buyer, except that such agreement shall not impact or affect the agreement
of the undersigned that their liability to Seller and/or Parent in respect to
such matters is and shall be joint and several.

	
   

  	
   

  	
   

  	 

	
  David L. Weinstein

  	
  Stanley Graber

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Robert J.
  Hussey, III

  	
  Joel W. Brown

  
					

 

 20

EXHIBIT A

ASSIGNMENT
AND ASSUMPTION AGREEMENT

This Assignment and Assumption Agreement (the
“Assignment”) is made for the consideration provided for in, and pursuant to
the requirements of, a certain Asset Purchase Agreement (“Agreement”) of even
date herewith by and between NEW HORIZONS COMPUTER LEARNING CENTER OF
NASHVILLE, INC., a Delaware corporation (“Assignor”), and GBWH NASHVILLE, LLC,
a Tennessee limited liability company (“Assignee”).

WITNESSETH:

WHEREAS, pursuant to the Agreement, Assignee desires
to purchase and acquire from Assignor all of the Assignor’s right, title and
interest in, or arising under or pursuant to, those certain agreements
described in the Agreement, and herein referred to, as the “Assigned
Contracts”, being those (excluding, for these purposes, the Facilities Lease)
identified on the Attachment hereto, as a consequence of which the Assignee is
willing to assume Assignor’s obligations, responsibilities and liabilities
under the said Assigned Contracts which accrue from and after the date hereof;

NOW, THEREFORE:

1.             Assignor
hereby assigns, transfers and conveys to Assignee, all of Assignor’s right,
title and interest in, to and under the Assigned Contracts as defined herein
and identified on the Attachment hereto effective as of the date hereof.

2.             Assignee
does hereby accept the foregoing assignment and does hereby assume, and agree
to perform and be bound by, all of the covenants, conditions, obligations and
liabilities of Assignor under the said Assigned Contracts which accrue from and
after the date hereof.

IN WITNESS WHEREOF, the parties hereto have caused
this instrument to be duly executed and delivered as of the Effective Date
provided for in the Agreement.

	
  ASSIGNOR

  	
  ASSIGNEE

  
	
   

  	
   

  
	
  NEW HORIZONS COMPUTER LEARNING

  	
  GBWH NASHVILLE, LLC

  
	
  CENTER OF NASHVILLE, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Thomas J.
  Bresnan

  	
  David L.
  Weinstein

  
	
  Chief Executive
  Officer

  	
  President and
  Chief Manager

  
					

 

ATTACHMENT

TO

ASSIGNMENT AND ASSUMPTION
AGREEMENT

The following is a listing of the Assigned Contracts, including the
Customer Contracts but excluding the Facilities Lease, to be and herewith
assigned to the Assignee.  To the extent
in writing, there is attached hereto a true and complete copy of each of the
Assigned Contracts.

EXHIBIT B

ASSIGNMENT
OF LEASE

	
  STATE OF TENNESSEE

  	
  )

  	
   

  
	
   

  	
  )

  	
  ASSIGNMENT OF LEASE

  
	
  COUNTY OF SHELBY

  	
  )

  	
   

  

 

FOR VALUABLE CONSIDERATION, and in consideration of
the agreements of the parties set forth in a certain Asset Purchase Agreement
(“Agreement”) of even date herewith by and between NEW HORIZONS COMPUTER
LEARNING CENTER OF NASHVILLE, INC., a Delaware corporation (herein called
“ASSIGNOR”), and GBWH NASHVILLE, LLC, a Tennessee limited liability company
(herein called “ASSIGNEE”), the undersigned ASSIGNOR does hereby set over,
transfer, sell and assign unto ASSIGNEE all of ASSIGNOR’S right, title and
interest in and to the following described lease and agreements (the
“Facilities Lease”) entered into by and between ASSIGNOR, as tenant or lessee,
and the landlord or lessor named below:

	
  Name of Landlord:

  	
   

  	
   

  
	
   

  	
   

  
	
  Address of
  Premises:

  	
  227 French Landing Drive, Suite 400, Nashville,
  Tennessee

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Lease:

  	
   

  	
  ,

  	
   

  	
   

  
	
   

  	
   

  
	
  Amendments:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
						

 

ASSIGNOR warrants that it has full title to the
foregoing leasehold estate, the Facilities Lease is in full force and effect,
no condition or state of facts exists which (with or without the giving of
notice and/or the lapse of time) would constitute a default by ASSIGNOR or, to
the Knowledge (as defined in the Agreement) of ASSIGNOR, by any other party to
the Facilities Lease, and ASSIGNOR has the power and right to assign its rights
as herein provided (subject to the approval of the landlord above named).

By its execution below, ASSIGNEE agrees to assume, and
to pay, perform and abide by, all of the obligations, indebtedness, terms,
provisions and conditions undertaken to be paid, performed or complied with by
ASSIGNOR under or pursuant to the Facilities Lease at any time from and after
May 1, 2006.

(Signatures on Next Page)

IN WITNESS WHEREOF, the undersigned parties have
executed this Assignment of Lease effective as of the 1st day of May, 2006.

	
  AS TO ASSIGNOR, SIGNED IN THE

  	
  NEW HORIZONS COMPUTER LEARN-

  
	
  PRESENCE OF:

  	
  ING CENTER OFNASHVILLE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Witness

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Witness

  	
   

  
	
   

  	
   

  
	
  AS TO ASSIGNEE, SIGNED IN THE

  	
  GBWH NASHVILLE, LLC

  
	
  PRESENCE OF:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Witness

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Witness

  	
   

  
								

 

LANDLORD’S
CONSENT AND CERTIFICATE

The undersigned,                                                                                
(herein called the “Landlord”), is the Landlord or Lessor named in and under
the following described lease (herein called the “Facilities Lease”), namely:

The Lease Agreement dated                           ,
19     by and between Landlord and New Horizons Computer
Center of Nashville, Inc. (herein called the “Tenant”), as lessee or tenant or
as the successor in interest by assignment from the original lessee or tenant,
as amended by agreements described as follows (Insert
Relevant Data, if any):                                                                                                                                                                    ,

and by which the Landlord has demised and created a leasehold estate
(“Leasehold Estate”) in the aforesaid Tenant in that real property located at
and known as 227 French Landing Drive, Suite 400, Nashville, Tennessee.

FURTHER, the Landlord has been advised that (1) the
Tenant has agreed to sell, assign and transfer its interest in and under the
Facilities Lease to GBWH NASHVILLE, LLC, a Tennessee limited liability company
(herein called the “Assignee”); and (2) the Assignee has been granted a license
and franchise to operate a “New Horizons Computer Learning Center” at and from
the premises described in the Facilities Lease; and (3) the execution of this
Landlord’s Consent and Certificate by Landlord constitutes a condition precedent
to Assignee’s acceptance of said assignment.

NOW, THEREFORE, in consideration of the foregoing, the
acceptance by Assignee of the assignment above described, and the assumption
and agreement by Assignee to pay, perform and abide by the terms of the Facilities
Lease from and after the date of its receipt of the assignment thereof:

1.             Landlord
acknowledges Tenant’s assignment, and consents to Tenant’s assignment, to
Assignee of all of Tenant’s right, title and interest in, to and under the
Facilities Lease and to the Leasehold Estate created thereby.

2.             Landlord
confirms to Assignee that (a) the Facilities Lease is in full force and effect
as of the date hereof; (b) the Facilities Lease has not been modified,
supplemented or amended in any way (except as specifically identified
hereinabove); (c) there exist no condition or state of facts which (with or
without the giving of notice and/or the lapse of time) would constitute a
default by any party to the Facilities Lease; and (d) all rent, additional rent
and other charges provided for in the Facilities Lease have been paid to the
extent same are payable through April 30, 2006.

3.             Landlord
agrees that in the event of any default under the Facilities Lease, or any
change in the circumstances confirmed in the foregoing paragraph 2 of this
instrument, Landlord will give written notice thereof to Assignee at 4775
American Way, Memphis, TN 38118 (attention: David L. Weinstein), or to such
other person(s) and at such other address(es) as may be set forth in a writing
delivered by Assignee to Landlord.

DATED this            
day of                              ,
2006.

 26

EXHIBIT C

BILL
OF SALE

FOR GOOD AND VALUABLE CONSIDERATION,
the receipt of which is hereby acknowledged, the undersigned, New Horizons
Computer Learning Center of Nashville, Inc., a Delaware corporation having its
principal place of business at 227 French Landing Drive, Suite 400, Nashville,
TN  37228 (“Seller”) hereby sells,
conveys, transfers, assigns and delivers to GBWH NASHVILLE, LLC, a Tennessee
limited liability company having an address at 227 French Landing Drive, Suite
400, Nashville, Tennessee 37228 (“Buyer”), all of its right, title and interest
in and to the Purchased Assets as such term is defined in that certain Asset
Purchase Agreement (“Agreement”) dated as of May 1, 2006, by and among, inter alia, Buyer and Seller.

TO HAVE AND TO HOLD the same
unto Buyer, its successors and assigns forever, free and clear of all Liens
other than any Permitted Liens (each of which terms being as defined in the
Agreement.

This Bill of Sale is delivered pursuant to and is
subject to and governed by the terms and conditions of the Agreement. The
representations, warranties and covenants as set forth in the Agreement shall
survive delivery of this Bill of Sale as set forth in the Agreement.

This Bill of Sale is ancillary to the Agreement, and
in the event of a conflict between the terms of this Bill of Sale and the terms
of the Agreement, the terms of the Agreement shall govern.

IN WITNESS WHEREOF, the
undersigned has caused this instrument to be duly executed as of the 1st day of May, 2006.

NEW HORIZONS
COMPUTER LEARNING

CENTER OF NASHVILLE, INC.

	
  By:

  	
   

  	
   

  
	
   

  	
  Thomas J.
  Bresnan

  
	
   

  	
  President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]