Document:

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                                                                     EXHIBIT 4.2

Pages from the Articles of Incorporation, as amended, defining the rights of
holders of Common Stock:

                                  ARTICLE FOUR

         The total number of shares of all classes of capital stock which the
Corporation shall have authority to issue is forty-five million (45,000,000), of
which (a) forty million (40,000,000) shares shall be designated as Common Stock,
par value $.01 per share, and (b) five million (5,000,000) shares shall be
designated as Preferred Stock, par value $.01 per share.

         The following is a statement of the designations, preferences,
limitations, and relative rights, including voting rights, in respect of the
classes of stock of the Corporation and of the authority with respect thereto
expressly vested in the Board of Directors of the Corporation:

COMMON STOCK

         (1) Each share of Common Stock of the Corporation shall have identical
rights and privileges in every respect. The holders of shares of Common Stock
shall be entitled to vote upon all matters submitted to a vote of the
shareholders of the Corporation and shall be entitled to one vote for each share
of Common Stock held.

         (2) Subject to the prior rights and preferences, if any, applicable to
shares of the Preferred Stock or any series thereof, the holders of shares of
the Common Stock shall be entitled to receive such dividends (payable in cash,
stock, or otherwise) as may be declared thereon by the Board of Directors at any
time and from time to time out of any funds of the Corporation legally available
therefor.

         (3) In the event of any voluntary or involuntary liquidation,
dissolution, or winding-up of the Corporation, after distribution in full of the
preferential amounts, if any, to be distributed to the holders of shares of the
Preferred Stock or any series thereof, the holders of shares of the Common Stock
shall be entitled to receive all of the remaining assets of the Corporation
available for distribution to its shareholders, ratably in proportion to the
number of shares of the Common Stock held by them. A liquidation, dissolution,
or winding-up of the Corporation, as such terms are used in this Paragraph (3),
shall not be deemed to be occasioned by or to include any merger of the
Corporation with or into one or more corporations or other entities, any
acquisition or exchange of the outstanding shares of one or more classes or
series of the Corporation, or any sale, lease, exchange, or other disposition of
all or a part of the assets of the Corporation.

PREFERRED STOCK

         (1) Shares of the Preferred Stock may be issued from time to time in
one or more series, the shares of each series to have such designations,
preferences, limitations, and relative rights,

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including voting rights, as shall be stated and expressed herein or in a
resolution or resolutions providing for the issue of such series adopted by the
Board of Directors of the Corporation. Each such series of Preferred Stock shall
be designated so as to distinguish the shares thereof from the shares of all
other series and classes. The Board of Directors of the Corporation is hereby
expressly authorized, subject to the limitations provided by law, to establish
and designate series of the Preferred Stock, to fix the number of shares
constituting each series, and to fix the designations and the preferences,
limitations, and relative rights, including voting rights, of the shares of each
series and the variations of the relative rights and preferences as between
series, and to increase and to decrease the number of shares constituting each
series, provided that the Board of Directors may not decrease the number of
shares within a series to less than the number of shares within such series that
are then issued. The relative powers, rights, preferences, and limitations may
vary between and among series of Preferred Stock in any and all respects so long
as all shares of the same series are identical in all respects, except that
shares of any such series issued at different times may have different dates
from which dividends thereon cumulate. The authority of the Board of Directors
of the Corporation with respect to each series shall include, but shall not be
limited to, the authority to determine the following:

                  (a)      The designation of such series;

                  (b)      The number of shares initially constituting such
                           series;

                  (c)      The rate or rates and the times at which dividends on
                           the shares of such series shall be paid, the periods
                           in respect of which dividends are payable, the
                           conditions upon such dividends, the relationship and
                           preferences, if any, of such dividends to dividends
                           payable on any other class or series of shares,
                           whether or not such dividends shall be cumulative,
                           partially cumulative, or noncumulative, if such
                           dividends shall be cumulative or partially
                           cumulative, the date or dates from and after which,
                           and the amounts in which, they shall accumulate,
                           whether such dividends shall be share dividends, cash
                           or other dividends, or any combination thereof, and
                           if such dividends shall include share dividends,
                           whether such share dividends shall be payable in
                           shares of the same or any other class or series of
                           shares of the Corporation (whether now or hereafter
                           authorized), or any combination thereof and the other
                           terms and conditions, if any, applicable to dividends
                           on shares of such series. The Board of Directors of
                           the Corporation is hereby expressly empowered,
                           subject to the limitations provided by law, to
                           authorize the Corporation to pay share dividends on
                           any class or series of capital stock of the
                           Corporation (whether now or hereafter authorized)
                           payable in shares of the same or any other class or
                           series of capital stock of the Corporation (whether
                           now or hereafter authorized) or any combination
                           thereof;

                  (d)      Whether or not the shares of such series shall be
                           redeemable or subject to repurchase at the option of
                           the Corporation or the holder thereof or upon the
                           happening of a specified event, if such shares shall
                           be redeemable, the terms and conditions of such
                           redemption, including but not limited to the date or

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                           dates upon or after which such shares shall be
                           redeemable, the amount per share which shall be
                           payable upon such redemption, which amount may vary
                           under different conditions and at different
                           redemption dates, and whether such amount shall be
                           payable in cash, property, or rights, including
                           securities of the Corporation or another corporation;

                  (e)      The rights of the holders of shares of such series
                           (which may vary depending upon the circumstances or
                           nature of such liquidation, dissolution, or winding
                           up) in the event of the voluntary or involuntary
                           liquidation, dissolution, or winding up of the
                           Corporation and the relationship or preference, if
                           any, of such rights to rights of holders of stock of
                           any other class or series. A liquidation,
                           dissolution, or winding up of the Corporation, as
                           such terms are used in this subparagraph (e), shall
                           not be deemed to be occasioned by or to include any
                           merger of the Corporation with or into one or more
                           corporations or other entities, any acquisition or
                           exchange of the outstanding shares of one or more
                           classes or series of the Corporation, or any sale,
                           lease, exchange, or other disposition of all or a
                           part of the assets of the Corporation;

                  (f)      Whether or not the shares of such series shall have
                           voting powers and, if such shares shall have such
                           voting powers, the terms and conditions thereof,
                           including, but not limited to, the right of the
                           holders of such shares to vote as a separate class
                           either alone or with the holders of shares of one or
                           more other classes or series of stock and the right
                           to have more (or less) than one vote per share;
                           provided, however, that the right to cumulate votes
                           for the election of directors is expressly denied and
                           prohibited;

                  (g)      Whether or not a sinking fund shall be provided for
                           the redemption of the shares of such series and, if
                           such a sinking fund shall be provided, the terms and
                           conditions thereof;

                  (h)      Whether or not a purchase fund shall be provided for
                           the shares of such series and, if such a purchase
                           fund shall be provided, the terms and conditions
                           thereof;

                  (i)      Whether or not the shares of such series, at the
                           option of either the Corporation or the holder or
                           upon the happening of a specified event, shall be
                           convertible into stock of any other class or series
                           and, if such shares shall be so convertible, the
                           terms and conditions of conversion, including, but
                           not limited to, any provision for the adjustment of
                           the conversion rate or the conversion price;

                  (j)      Whether or not the shares of such series, at the
                           option of either the Corporation or the holder or
                           upon the happening of a specified event, shall be
                           exchangeable for securities, indebtedness, or
                           property of the Corporation and, if such shares shall
                           be so exchangeable, the terms and conditions of

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                           exchange, including, but not limited to, any
                           provision for the adjustment of the exchange rate or
                           the exchange price; and

                  (k)      Any other preferences, limitations, and relative
                           rights as shall not be inconsistent with the
                           provisions of this Article Four or the limitations
                           provided by law.

         (2) Except as otherwise required by law or in any resolution of the
Board of Directors creating any series of Preferred Stock, the holders of shares
of Preferred Stock and all series thereof who are entitled to vote shall vote
together with the holders of shares of Common Stock, and not separately by
class.

                                  ARTICLE FIVE

         No holder of any shares of capital stock of the Corporation, whether
now or hereafter authorized, shall, as such holder, have any preemptive or
preferential right to receive, purchase, or subscribe to (a) any unissued or
treasury shares of any class of stock (whether now or hereafter authorized) of
the Corporation, (b) any obligations, evidences of indebtedness, or other
securities of the Corporation convertible into or exchangeable for, or carrying
or accompanied by any rights to receive, purchase, or subscribe to, any such
unissued or treasury shares, (c) any right of subscription to, any right to
receive, or any warrant or option for the purchase of, any of the foregoing
securities, or (d) any other securities that may he issued or sold by the
Corporation.

                                  ARTICLE SEVEN

         Cumulative voting for the election of directors is expressly denied and
prohibited.

                                  ARTICLE NINE

         Any action of the Corporation which, under the provisions of the Texas
Business Corporation Act or any other applicable law, is required to be
authorized or approved by the holders of any specified fraction which is in
excess of one-half or any specified percentage which is in excess of fifty
percent of the outstanding shares (or of any class or series thereof) of the
Corporation shall, notwithstanding any law, be deemed effectively and properly
authorized or approved if authorized or approved by the vote of the holders of
more than fifty percent of the outstanding shares entitled to vote thereon (or,
if the holders of any class or series of the Corporation's shares shall be
entitled by the Texas Business Corporation Act or any other applicable law to
vote thereon separately as a class, by the vote of the holders of more than
fifty percent of the outstanding shares of each such class or series). Without
limiting the generality of the foregoing, the foregoing provisions of this
Article Nine shall be applicable to any required shareholder authorization or
approval of: (a) any amendment to these articles of incorporation; (b) any plan
of merger, share exchange, or reorganization involving the Corporation; (c) any
sale, lease, exchange, or other disposition of all, or substantially all, the
property and assets of the Corporation; and (d) any voluntary dissolution of the
Corporation.

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         Directors of the Corporation shall be elected by a plurality of the
votes cast by the holders of shares entitled to vote in the election of
directors of the Corporation at a meeting of shareholders at which a quorum is
present.

         Except as otherwise provided in this Article Nine or as otherwise
required by the Texas Business Corporation Act or other applicable law, with
respect to any matter, the affirmative vote of the holders of a majority of the
Corporation's shares entitled to vote on, and voted for or against, that matter
at a meeting of shareholders at a meeting of shareholders at which a quorum is
present shall be the act of the shareholders.

         Nothing contained in this Article Nine is intended to require
shareholder authorization or approval of any action of the Corporation
whatsoever unless such approval is specifically required by the other provisions
of these articles of incorporation, the bylaws of the Corporation, or by the
Texas Business Corporation Act or other applicable law.

Pages from the Bylaws, as amended, defining the rights of holders of Common
Stock:

                            ARTICLE TWO: SHAREHOLDERS

         2.01 Annual Meetings. An annual meeting of shareholders of the
Corporation shall be held during each calendar year on such date and at such
time as shall be designated from time to time by the board of directors and
stated in the notice of the meeting, if not a legal holiday in the place where
the meeting is to be held, and, if a legal holiday in such place, then on the
next business day following, at the time specified in the notice of the meeting.
At such meeting, the shareholders shall elect directors and transact such other
business as may properly be brought before the meeting.

         2.02 Special Meetings. A special meeting of the shareholders may be
called at any time by the president, board of directors, or the holders of not
less than fifty percent of all shares entitled to vote at such meeting. Only
business within the purpose or purposes described in the notice of special
meeting may be conducted at such special meeting.

         2.03 Place of Meetings. The annual meeting of shareholders may be held
at any place within or without the State of Texas designated by the board of
directors. Special meetings of shareholders may be held at any place within or
without the State of Texas designated by the person or persons calling such
special meeting as provided in Section 2.02 above. Meetings of shareholders
shall be held at the principal office of the Corporation unless another place is
designated for meetings in the manner provided herein.

         2.04 Notice. Except as otherwise provided by law, written or printed
notice stating the place, day, and hour of each meeting of the shareholders and,
in case of a special meeting, the purpose or purposes for which the meeting is
called, shall be delivered not less than ten nor more than sixty days before the
date of the meeting by or at the direction of the president, the secretary, or
the person calling the meeting, to each shareholder of record entitled to vote
at such meeting.

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Notice need not be given to a shareholder if (i) notice of two consecutive
annual meetings and all notices of meetings held during the period between those
annual meetings, if any, or (ii) all (but in no event less than two) payments
(if sent by first class mail) of distributions or interest on securities during
a 12-month period, have been mailed to that shareholder, addressed at his
address as shown on the share transfer records of the Corporation, and have been
returned undeliverable. Any action or meeting taken or held without notice to
such shareholder shall have the same force and effect as if the notice had been
duly given and, if the action taken by the Corporation is reflected in any
articles or document filed with the Texas Secretary of State, those articles or
that document may state that notice was duly given to all persons to whom notice
was required to be given. If such a shareholder delivers to the Corporation a
written notice setting forth his then current address, the requirement that
notice be given to that shareholder shall be reinstated.

         2.05 Voting List. At least ten days before each meeting of
shareholders, the secretary shall prepare a complete list of shareholders
entitled to vote at such meeting, arranged in alphabetical order, including the
address of each shareholder and the number of voting shares held by each
shareholder. For a period of ten days prior to such meeting, such list shall be
kept on file at the registered office or principal place of business of the
Corporation and shall be subject to inspection by any shareholder during usual
business hours. Such list shall be produced at such meeting, and at all times
during such meeting shall be subject to inspection by any shareholder. The
original share transfer records shall be prima facie evidence as to who are the
shareholders entitled to examine such list or transfer records or to vote at any
meeting of shareholders.

         2.06 Voting of Shares. Treasury shares, shares of the Corporation's own
stock owned by another corporation the majority of the voting stock of which is
owned or controlled by the Corporation, and shares of the Corporation's own
stock held by the Corporation in a fiduciary capacity shall not be shares
entitled to vote or to be counted in determining the total number of outstanding
shares. Shares standing in the name of another domestic or foreign corporation
of any type or kind may be voted by such officer, agent, or proxy as the bylaws
of such corporation may authorize or, in the absence of such authorization, as
the board of directors of such corporation may determine. Shares held by an
administrator, executor, guardian, or conservator may be voted by him, either in
person or by proxy, without transfer of such shares into his name so long as
such shares form a part of the estate served by him and are in the possession of
such estate. Shares held by a trustee may be voted by him, either in person or
by proxy, only after the shares have been transferred into his name as trustee.
Shares standing in the name of a receiver may be voted by such receiver, and
shares held by or under the control of a receiver may be voted by such receiver
without transfer of such shares into his name if authority to do so is contained
in the court order by which such receiver was appointed. A shareholder whose
shares are pledged shall be entitled to vote such shares until they have been
transferred into the name of the pledgee, and thereafter, the pledgee shall be
entitled to vote such shares.

         2.07 Quorum; Withdrawal of Quorum. A quorum shall be present at a
meeting of shareholders if the holders of a majority of the shares entitled to
vote are represented at the meeting in person or by proxy, except as otherwise
provided by law or the articles of incorporation. If a quorum shall not be
present at any meeting of shareholders, the shareholders represented in person
or by proxy at such meeting may adjourn the meeting until such time and to such
place as may be

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determined by a vote of the holders of a majority of the shares represented in
person or by proxy at that meeting. Once a quorum is present at a meeting of
shareholders, the shareholders represented in person or by proxy at the meeting
may conduct such business as may be properly brought before the meeting until it
is adjourned, and the subsequent withdrawal from the meeting of any shareholder
or the refusal of any shareholder represented in person or by proxy to vote
shall not affect the presence of a quorum at the meeting.

         2.08 Majority Vote. Directors of the Corporation shall be elected by a
plurality of the votes cast by the holders of shares entitled to vote in the
election of directors of the Corporation at a meeting of shareholders at which a
quorum is present. Except as otherwise provided by law, the articles of
incorporation, or these bylaws, with respect to any matter, the affirmative vote
of the holders of a majority of the Corporation's shares entitled to vote on,
and voted for or against, that matter at a meeting of shareholders at which a
quorum is present shall be the act of the shareholders.

         2.09 Method of Voting; Proxies. Every shareholder of record shall be
entitled at every meeting of shareholders to one vote on each matter submitted
to a vote, for every share standing in his name on the original share transfer
records of the Corporation except to the extent that the voting rights of the
shares of any class or classes are increased, limited, or denied by the articles
of incorporation. Such share transfer records shall be prima facie evidence as
to the identity of shareholders entitled to vote. At any meeting of
shareholders, every shareholder having the right to vote may vote either in
person or by a proxy executed in writing by the shareholder or by his duly
authorized attorney-in-fact. A telegram, telex, cablegram or similar
transmission by the shareholder, or a photographic, photostatic, facsimile, or
similar reproduction of a writing executed by the shareholder, shall be treated
as an execution in writing for purposes of this Section 2.09. Each such proxy
shall be filed with the secretary of the Corporation before, or at the time of,
the meeting. No proxy shall be valid after eleven months from the date of its
execution, unless otherwise provided in the proxy. If no date is stated on a
proxy, such proxy shall be presumed to have been executed on the date of the
meeting at which it is to be voted. Each proxy shall be revocable unless the
proxy form conspicuously states that the proxy is irrevocable and the proxy is
coupled with an interest.

         2.10 Closing of Transfer Records; Record Date. For the purpose of
determining shareholders entitled to notice of, or to vote at, any meeting of
shareholders or any adjournment thereof, or entitled to receive a distribution
(other than a distribution involving a purchase or redemption by the Corporation
of any of its own shares) or a share dividend, or in order to make a
determination of shareholders for any other proper purpose (other than
determining shareholders entitled to consent to action by shareholders proposed
to be taken without a meeting of shareholders), the board of directors may
provide that the share transfer records of the Corporation shall be closed for a
stated period but not to exceed in any event sixty days. If the share transfer
records are closed for the purpose of determining shareholders entitled to
notice of, or to vote at, a meeting of shareholders, such records shall be
closed for at least ten days immediately preceding such meeting. In lieu of
closing the share transfer records, the board of directors may FIX in advance a
date as the record date for any such determination of shareholders, such date in
any case to be not more than sixty days and, in case of a meeting of
shareholders, not less than ten days prior to the date on which the particular
action requiring such determination of shareholders is to be taken. If the share
transfer records are not closed and if no record date is fixed for the
determination of

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shareholders entitled to notice of, or to vote at, a meeting of shareholders or
entitled to receive a distribution (other than a distribution involving a
purchase or redemption by the Corporation of any of its own shares) or a share
dividend, the date on which the notice of the meeting is mailed or the date on
which the resolution of the board of directors declaring such distribution or
share dividend is adopted, as the case may be, shall be the record date for such
determination of shareholders. When a determination of shareholders entitled to
vote at any meeting of shareholders has been made as provided in this Section 2.
10, such determination shall apply to any adjournment thereof except where the
determination has been made through the closing of the share transfer records
and the stated period of closing has expired.

         2.11 Officers' Duties at Meetings. The president shall preside at, and
the secretary shall prepare minutes of, each meeting of shareholders, and in the
absence of either such officer, his duties shall be performed by some person or
persons elected by the vote of the holders of a majority of the outstanding
shares entitled to vote, present in person or represented by proxy.<PAGE>   1
                                                                   EXHIBIT 10.13

                              SKILLSOFT CORPORATION

                       RESTRICTED STOCK PURCHASE AGREEMENT

                  THIS AGREEMENT is entered into as of the 13th day of March
1999, between SkillSoft Corporation, a Delaware corporation (the "Company"), and
Jerald A. Nine (the "Recipient").

                                    RECITALS:

                  WHEREAS, the Company has adopted the 1998 Stock Incentive Plan
(the "Plan"), which Plan is hereby incorporated in this Agreement by reference
and made a part of it; and

                  WHEREAS, the Company regards Recipient as a valuable
contributor to the Company, and has determined that it would be in the interest
of the Company and its stockholders to sell the Stock (as defined below) to the
Recipient as a reward for past efforts and an incentive for continued service
with the Company and increased achievements in the future by Recipient;

                  NOW, THEREFORE, in consideration of the mutual covenants
hereinafter set forth, the parties to this Agreement hereby agree as follows:

                  1. Restricted Stock Purchase. Contemporaneously with the
execution of this Agreement, the Company will issue to Recipient 50,000 shares
of Common Stock of the Company (the "Stock") for a consideration of $0.175 per
share ("Purchase Price"). Payment of the aggregate Purchase Price of $8,750.00
for the Stock shall be made to the Company as follows: (i) $4,375.00 shall be
paid in cash, and (ii) $4,375.00 shall be made by delivery of a promissory note,
in the form attached hereto as Exhibit A, each upon execution of this Agreement.
Recipient shall pledge the non-vested Stock as security for the promissory note
pursuant to a security agreement in the form attached hereto as Exhibit B. All
shares of Stock issued hereunder shall be deemed issued to Recipient as fully
paid and nonassessable shares, and Recipient shall have all rights of a
stockholder with respect thereto, including the right to vote, receive dividends
(including stock dividends), participate in stock splits or other
recapitalizations, and exchange such shares in a merger, consolidation or other
reorganization. The Company shall pay any applicable stock transfer taxes.

                  2. Repurchase Option.

                           (a) Transfer Restrictions. Except as provided in
Section 3(f), no Stock issued to the Recipient hereunder shall be sold,
transferred by gift, pledged, hypothecated, or otherwise transferred or disposed
of by the Recipient in contravention of Section 2 or Section 3 hereof other than
by will or the laws of descent and distribution (the "Permitted Transfers").
Except for Permitted Transfers, no Stock issued to the Recipient hereunder shall
be sold, transferred by gift, pledged, hypothecated, or otherwise transferred or
disposed of by the

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Recipient prior to the date when the Recipient shall become vested in such Stock
pursuant to Section 4 hereof, and such Stock shall constitute "Non-Vested Stock"
until such date. Any attempt to transfer Stock in violation of this Section 2 or
Section 3 shall be null and void and shall be disregarded by the Company.

                           (b) Repurchase Option. Non-Vested Stock shall be
subject to a repurchase option in favor of the Company (the "Repurchase
Option"). The Repurchase Option shall be subject to the following terms and
conditions. In the event of the voluntary or involuntary termination of
employment of Recipient with the Company for any reason, with or without cause
(including death or disability), the Company shall, upon the date of such
termination, have an irrevocable, exclusive option for a period of three months
from such date to repurchase any or all of the Non-Vested Stock from Recipient
or any person receiving the Non-Vested Stock by operation of law or other
involuntary transfer, at the original Purchase Price for the Non-Vested Stock.

                           (c) Exercise of Repurchase Option. The Repurchase
Option shall be exercised by written notice by the Company to Recipient or his
or her executor and, at the Company's option, (i) by delivery to the Recipient
or his or her executor, with such notice, of a check in the amount of the
original Purchase Price for the Non-Vested Stock being repurchased (the
"Repurchase Amount"), or (ii) in the event the Recipient is indebted to the
Company for all or a portion of the Repurchase Amount, by cancellation by the
Company of an amount of such purchase money indebtedness equal to the Repurchase
Amount for the Stock being repurchased, or (iii) by a combination of (i) and
(ii) so that the combined payment and cancellation of indebtedness equals such
Repurchase Amount. Upon delivery by the Company of such notice and payment of
the Repurchase Amount in any of the ways described above, the Company shall
become the legal and beneficial owner of the Non-Vested Stock being repurchased
and all rights and interest therein or related thereto, and the Company shall
have the right to transfer to its own name the number of shares of Stock being
repurchased by the Company, without further action by Recipient.

                           (d) Assignment of Repurchase Option. The Repurchase
Option may be assigned by the Company to any third party.

                           (e) Escrow of Stock. For purposes of facilitating the
enforcement of the provisions of this Section 2, Recipient agrees, immediately
upon receipt of the certificate(s) for the Stock, to deliver such
certificate(s), together with an Assignment Separate from Certificate in the
form attached hereto as Exhibit C, executed in blank by Recipient and
Recipient's spouse (if required for transfer) with respect to each such stock
certificate, to the Secretary or Assistant Secretary of the Company, or their
designee, to hold in escrow for so long as such Stock remains subject to any
Repurchase Option of the Company pursuant to this Section 2, with the authority
to take all such actions and to effectuate all such transfers and/or releases as
may be necessary or appropriate to accomplish the objectives of this Agreement
in accordance with the terms hereof. Stock may be held for an additional period
if subject to a Security Agreement as provided in this Agreement. Recipient
hereby acknowledges that the appointment of the Secretary or Assistant Secretary
of the Company (or their designee) as the escrow holder

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<PAGE>   3
hereunder with the stated authorities is a material inducement to the Company to
make this Agreement and that such appointment is coupled with an interest and is
accordingly irrevocable. Recipient agrees that such escrow holder shall not be
liable to any party hereto (or to any other party) for any actions or omissions
unless such escrow holder is grossly negligent relative thereto. The escrow
holder may rely upon any letter, notice or other document executed by any
signature purported to be genuine and may resign at any time.

                  3. First Refusal Right.

                           (a) Grant of Right. The Company is hereby granted the
right of first refusal (the "First Refusal Right"), exercisable in connection
with any proposed sale or other transfer of the Stock acquired by Recipient
hereunder. For purposes of this Section 3, the term "transfer" shall include any
assignment, pledge, encumbrance or other disposition for value of the Stock
intended to be made by the Owner (defined below), but shall not include any of
the Permitted Transfers under Section 3(f). For purposes of this Section 3, the
term "Owner" shall include the Recipient or any subsequent holder of the Stock
who derives his or her chain of ownership through a transfer permitted by
Section 3(f).

                           (b) Notice of Intended Disposition. In the event the
Owner desires to accept a bona fide third-party offer for any or all of the
Stock (the shares subject to such offer to be hereinafter called, solely for the
purposes of this Section 3, the "Target Shares"), Owner shall promptly deliver
to the Secretary of the Company written notice (the "Disposition Notice") of the
offer and the basic terms and conditions thereof, including the proposed
purchase price.

                           (c) Exercise of Right. The Company (or its assignee)
shall, for a period of twenty (20) days following receipt of the Disposition
Notice, have the right to repurchase any or all of the Target Shares specified
in the Disposition Notice upon substantially the same terms and conditions
specified therein. Such right shall be exercisable by written notice (the
"Exercise Notice") delivered to Owner prior to the expiration of the twenty (20)
day exercise period. If the Exercise Notice pertains to all the Target Shares
specified in the Disposition Notice, then the Company (or its assignees) shall
effect the repurchase of such Target Shares, including payment of the purchase
price, not more than five (5) business days after delivery of the Exercise
Notice; and at such time Owner shall deliver to the Company the certificates
representing the Target Shares to be repurchased, each certificate to be
properly endorsed for transfer. The Target Shares so purchased shall thereupon
be canceled and cease to be issued and outstanding shares of the Company's
common stock. However, should the purchase price specified in the Disposition
Notice be payable in property other than cash or evidences of indebtedness, the
Company (or its assignees) shall have the right to pay the purchase price in the
form of cash equal in amount to the value of such property. If the Owner and the
Company (or its assignees) cannot agree on such cash value within ten (10) days
after the Company's receipt of the Disposition Notice, the valuation shall be
made by an appraiser of recognized standing selected by the Owner and the
Company (or its assignees) or, if they cannot agree on an appraiser within
twenty (20) days after the Company's receipt of the Disposition Notice, each
shall select an appraiser of recognized standing and the two appraisers shall
designate a third appraiser of recognized standing, whose appraisal shall be
determinative of

                                       3
<PAGE>   4
such value. The closing shall then be held on the later of (i) the fifth
business day following delivery of the Exercise Notice or (ii) the 15th day
after such cash valuation shall have been made.

                           (d) Non-Exercise of Right. In the event the Exercise
Notice is not given to Owner within twenty (20) days following the date of the
Company's receipt of the Disposition Notice, Owner shall have a period of ninety
(90) days thereafter in which to sell or otherwise dispose of the Target Shares
upon terms and conditions (including the purchase price) no more favorable to
the third party purchaser than those specified in the Disposition Notice. The
third-party purchaser shall acquire the Target Shares subject to all the terms
and provisions of this Agreement. All transferees of the Target Shares shall be
required as a condition of such transfer to agree in writing (in a form
satisfactory to the Company) that such transferee shall receive and hold the
Target Shares subject to the provisions of this Agreement. In the event Owner
does not sell or otherwise dispose of the Target Shares within the specified
ninety (90) day period, the Company's First Refusal Right shall continue to be
applicable to any subsequent disposition of the Target Shares by Owner until
such right lapses in accordance with Section 5.

                           (e) Partial Exercise of Right. In the event the
Company (or its assignees) makes a timely exercise of the First Refusal Right
with respect to a portion, but not all, of the Target Shares specified in the
Disposition Notice, Owner shall have the option, exercisable by written notice
to the Company delivered within ninety (90) days after the date of the
Disposition Notice, to effect the sale of the Target Shares pursuant to one of
the following alternatives:

                                    (i) sale or other distribution of all the
                  Target Shares to a third-party purchaser in compliance with
                  the requirements of Section 3(d), as if the Company did not
                  exercise the First Refusal Right hereunder; or

                                    (ii) sale to the Company (or its assignees)
                  of the portion of the Target Shares which the Company (or its
                  assignees) has elected to purchase, such sale to be effected
                  in substantial conformity with the provisions of Section 3(c).

Failure of Owner to deliver timely notification to the Company under this
Section 3(e) shall be deemed to be an election by Owner to sell the Target
Shares pursuant to alternative (ii) above.

                           (f) Exempt Transfers. The Company's First Refusal
Right under this Section 3 shall not apply to transfers of the Stock by will or
the laws of descent and distribution; provided, however, that all of the terms
of this Agreement shall remain in effect as to such transferred Stock. In
addition, Recipient may transfer all or a portion of the Stock to (i) a
revocable trust for the sole benefit of Recipient, his or her spouse, or his or
her lineal descendants, or (ii) to his or her spouse, siblings, lineal
descendants thereof, parents, or his or her lineal descendants subject to a
nonrevocable voting trust of a duration of 10 years without the written
permission of the Company, provided said Recipient is trustee and prior written
notice (together with a copy of the trust agreement) is given the Company within
thirty (30) days thereafter. The trustee shall hold such Stock subject to all
the provisions hereof, and shall make

                                       4
<PAGE>   5
no further transfers other than as provided herein. Upon the death, total
disability, or termination of employment of the transferor Recipient, the
successor trustee or any cotrustee (and any subsequent transferee) shall be
required to sell, transfer or present said Stock for purchase as provided
herein, for the price and on the terms hereafter set forth as if such successor
trustee and subsequent transferee were the transferor Recipient. Transferee
shall make no further transfers other than as provided herein, and any attempted
transfer in violation of this Section 3 shall be null and void and shall be
disregarded by the Company. All references herein to Stock shall be deemed to
include Stock owned by any such successor trustee or subsequent transferee,
except that payment for such trustee and transferee Stock shall be made to the
trustee and transferee instead of to the original Recipient or his or her
estate.

                  4. Vesting. For purposes of this Agreement, the term "vest"
shall mean with respect to any share of the Stock that such share is no longer
Non-Vested Stock subject to repurchase at the original Purchase Price set forth
in Section 2. If Recipient would become vested in any fraction of a share of
Stock on any date, such fractional share shall not vest and shall remain
Non-Vested Stock until the Recipient becomes vested in the entire share.
Commencing on February 1, 1999 and continuing on the monthly anniversary of such
date, 1/36 of the Stock subject to this Agreement shall vest.

                  5. Lapse. The Company's First Refusal Right under Section 3
above shall lapse and cease to have effect upon the closing of the first
underwritten public offering of Common Stock of the Company that is pursuant to
a registration statement filed with, and declared effective by, the Securities
and Exchange Commission under the Securities Act of 1933, as amended (the
"Securities Act"), covering the offer and sale of any Common Stock to the public
for the Company's account in a firmly underwritten offering for at least
$20,000,000.

                  6. Corporate Transactions.

                           (a) Definition. For purposes of this Section 6, a
"Corporate Transaction" shall include any of the following stockholder-approved
transactions to which the Company is a party:

                                    (i) a merger or consolidation in which the
                  Company is not the surviving entity, except for (1) a
                  transaction the principal purpose of which is to change the
                  state of the Company's incorporation, or (2) a transaction in
                  which the Company's stockholders immediately prior to such
                  merger or consolidation hold (by virtue of securities received
                  in exchange for their shares in the Company) securities of the
                  surviving entity representing more than fifty percent (50%) of
                  the total voting power of such surviving entity immediately
                  after such transaction;

                                    (ii) the sale, transfer or other disposition
                  of all or substantially all of the assets of the Company
                  unless the Company's stockholders immediately prior to such
                  sale, transfer or other disposition hold (by virtue of
                  securities received in exchange for their shares in the
                  Company) securities of the purchaser

                                       5
<PAGE>   6
                  or other transferee representing more than fifty percent (50%)
                  of the total voting power of such entity immediately after
                  such transaction; or

                                    (iii) any merger in which the Company is the
                  surviving entity but in which the Company's stockholders
                  immediately prior to such merger do not hold (by virtue of
                  their shares in the Company) securities of the surviving
                  entity held immediately prior to such transaction representing
                  more than fifty percent (50%) of the total voting power of the
                  surviving entity immediately after such transaction.

                           (b) Effect. In the event of any Corporate
Transaction, (i) the Company's Repurchase Option under Section 2 shall lapse and
(ii) the Company's First Refusal Right under Section 3 shall lapse.

                  7. Additional Securities. The term "Stock" also refers to all
securities received in replacement of the Stock, as a stock dividend or as a
result of any stock split, recapitalization, merger, reorganization, exchange or
the like, and all new or additional securities or other properties to which
Recipient is entitled by reason of Recipient's ownership of the Stock
(hereinafter called "Additional Securities"). Recipient shall be entitled to
direct the Company to exercise any warrant or option received as Additional
Securities upon supplying the funds necessary to do so, in which event the
securities so purchased shall constitute Additional Securities, but the
Recipient may not direct Company to sell any such warrant or option. If
Additional Securities consist of a convertible security, Recipient may exercise
any conversion right, and any securities so acquired shall be deemed Additional
Securities. All Stock shall be subject to the restrictions contained in this
Agreement.

                  8. Investment Representations.

                           (a) Investment Representations. This Agreement is
made in reliance upon the Recipient's representation to the Company, which by
its acceptance hereof the Recipient hereby confirms, that the shares of Stock to
be received by the Recipient will be acquired for investment for his or her own
account and not with a view to the sale or distribution of any part thereof
within the meaning of the Securities Act.

                           (b) Availability of Exemptions. The Recipient
understands that the Stock is not registered under the Securities Act on the
basis that the sale provided for in this Agreement and the issuance of
securities hereunder is exempt from registration under the Securities Act
pursuant to Section 4(2) thereof, and that the Company's reliance on such
exemption is predicated on the Recipient's representations set forth herein.

                           (c) Restrictions on Transfer. The Recipient
understands that the Stock may not be sold, transferred, or otherwise disposed
of without registration under the Securities Act or an exemption therefrom, and
that in the absence of an effective registration statement covering the Stock or
an available exemption from registration under the Securities Act, the Stock
must be held indefinitely. In particular, the Recipient is aware that the Stock
may not be sold pursuant to Rule 144 or Rule 701 promulgated under the
Securities Act unless all of the

                                       6
<PAGE>   7
conditions of the applicable Rules are met. Among the conditions for use of Rule
144 is the availability of current information to the public about the Company.
Such information is not now available, and the Company has no present plans to
make such information available. The Recipient represents that, in the absence
of an effective registration statement covering the Stock, it will sell,
transfer, or otherwise dispose of the Stock only in a manner consistent with its
representations set forth herein and then only in accordance with the provisions
of Section 8(d) hereof.

                           (d) Procedure for Transfer. The Recipient agrees that
in no event will it make a transfer or disposition of any of the Stock (other
than pursuant to an effective registration statement under the Securities Act),
unless and until (i) the Recipient shall have notified the Company of the
proposed disposition and shall have furnished the Company with a statement of
the circumstances surrounding the disposition, (ii) such transfer is made in
accordance with the provisions of Section 2 and Section 3 above and (iii) if
requested by the Company, at the expense of the Recipient or transferee, the
Recipient shall have furnished to the Company either (A) an opinion of counsel,
reasonably satisfactory to the Company, to the effect that such transfer may be
made without registration under the Securities Act or (B) a "no action" letter
from the Securities and Exchange Commission to the effect that the transfer of
such securities without registration will not result in a recommendation by the
staff of the Securities and Exchange Commission that action be taken with
respect thereto. The Company will not require such a legal opinion or "no
action" letter in any transaction in compliance with Rule 144.

                  9. Legends; Stop Transfer.

                           (a) Required Legends. All certificates for shares of
the Stock shall bear the following legends:

                  "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED
                  FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH,
                  THE SALE OR DISTRIBUTION THEREOF. THESE SECURITIES HAVE NOT
                  BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. THEY MAY NOT
                  BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
                  ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE
                  SECURITIES UNDER SAID ACT OR AN OPINION OF COUNSEL
                  SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
                  REQUIRED."

                  "THE SHARES REPRESENTED BY THIS CERTIFICATE ARE RESTRICTED BY
                  THE TERMS OF, AND ARE SUBJECT TO A RIGHT OF FIRST REFUSAL
                  OPTION AND A RIGHT OF REPURCHASE IN FAVOR OF THE COMPANY, AS
                  PROVIDED IN A RESTRICTED STOCK PURCHASE AGREEMENT BETWEEN THE
                  COMPANY AND THE HOLDER HEREOF, OR ITS SUCCESSOR, A COPY OF
                  WHICH IS AVAILABLE FROM THE COMPANY."

                                       7
<PAGE>   8
                           (b) Additional Legends. The certificates for shares
of the Stock shall also bear any legend required by any applicable state
securities law.

                  10. Lock-Up Agreement.

                           (a) Agreement. Recipient, if requested by the Company
and the lead underwriter of any public offering of the Common Stock or other
securities of the Company (the "Lead Underwriter"), hereby irrevocably agrees
not to sell, contract to sell, grant any option to purchase, transfer the
economic risk of ownership in, make any short sale of, pledge or otherwise
transfer or dispose of any interest in any Common Stock or any securities
convertible into or exchangeable or exercisable for or any other rights to
purchase or acquire Common Stock (except Common Stock included in such public
offering or acquired on the public market after such offering) during the
180-day period following the effective date of a registration statement of the
Company filed under the Securities Act, or such shorter period of time as the
Lead Underwriter shall specify. Recipient further agrees to sign such documents
as may be requested by the Lead Underwriter to effect the foregoing and agrees
that the Company may impose stop-transfer instructions with respect to such
Common Stock subject until the end of such period. The Company and Recipient
acknowledge that each Lead Underwriter of a public offering of the Company's
stock, during the period of such offering and for the 180-day period thereafter,
is an intended beneficiary of this Section 10.

                           (b) Permitted Transfers. Notwithstanding the
foregoing, Section 10(a) shall not prohibit Recipient from transferring any
shares of Common Stock or securities convertible into or exchangeable or
exercisable for the Company's Common Stock to the extent such transfer is not
otherwise prohibited by this Agreement, either during Recipient's lifetime or on
death by will or intestacy to Recipient's immediate family or to a trust the
beneficiaries of which are exclusively Recipient and/or a member or members of
Recipient's immediate family; provided, however, that prior to any such
transfer, each transferee shall execute an agreement pursuant to which each
transferee shall agree to receive and hold such securities subject to the
provisions of Section 10 hereof. For the purposes of this paragraph, the term
"immediate family" shall mean spouse, lineal descendant, father, mother, brother
or sister of the transferor.

                           (c) No Amendment Without Consent of Underwriter.
During the period from identification as a Lead Underwriter in connection with
any public offering of the Company's Common Stock until the earlier of (i) the
expiration of the lock-up period specified in Section 10(a) in connection with
such offering or (ii) the abandonment of such offering by the Company and the
Lead Underwriter, the provisions of the Section 10 may not be amended or waived
except with the consent of the Lead Underwriter.

                  11. NO EMPLOYMENT RIGHTS. THIS AGREEMENT SHALL NOT CONFER UPON
RECIPIENT ANY RIGHT WITH RESPECT TO CONTINUATION OF HIS OR HER EMPLOYMENT WITH
THE COMPANY OR ITS AFFILIATES, NOR SHALL IT INTERFERE IN ANY WAY WITH THE RIGHT
OF RECIPIENT OR THE COMPANY, OR ANY OF ITS AFFILIATES, TO TERMINATE RECIPIENT'S
EMPLOYMENT WITH THE

                                       8
<PAGE>   9
COMPANY AT ANY TIME FOR ANY REASON WITH OR WITHOUT CAUSE OR CHANGE THE TERMS OF
EMPLOYMENT OF RECIPIENT.

                  12. Section 83(b) Election. Recipient hereby represents that
he or she understands (a) the contents and requirements of a timely election
made pursuant to Section 83(b) of the Internal Revenue Code or similar provision
of state law (collectively, an "83(b) Election"), (b) the application of Section
83(b) to the purchase of Stock by Recipient pursuant to this Agreement, (c) the
nature of the election to be made by Recipient under Section 83(b) and (d) the
effect and requirements of the 83(b) Election under relevant state and local tax
laws. Recipient further represents that he or she intends to file an election
pursuant to Section 83(b), the form of which Election is attached hereto as
Exhibit D, with the Internal Revenue Service within thirty (30) days following
purchase of the Stock hereunder, and a copy of such election with his or her
federal tax return for the calendar year in which the date of this Agreement
falls. Recipient covenants to inform the Company of any change in Recipient's
state of residency. Recipient shall provide the Company with a copy of any
timely 83(b) Election. If Recipient makes a timely 83(b) Election, Recipient
shall immediately pay Company the amount necessary to satisfy any applicable
federal, state, and local income and employment tax withholding requirements. If
Recipient does not make a timely 83(b) Election, Recipient shall, either at the
time that the restrictions lapse under this Agreement or at the time withholding
is otherwise required by any applicable law, pay the Company the amount
necessary to satisfy any applicable federal, state, and local income and
employment tax withholding requirements.

                  13. Withholding. Recipient agrees to withholding of shares
from exercise for satisfaction of any applicable federal, state or local income
tax or employment tax withholding requirements.

                  14. Distributions. The Company shall disburse to Recipient all
dividends, interest and other distributions paid or made in cash or property
(other than Additional Securities) with respect to Stock and Additional
Securities, less any applicable federal or state withholding taxes.

                  15. Successors. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective heirs,
executors, administrators, successors and assigns.

                  16. Notice. Any notice or other paper required to be given or
sent pursuant to the terms of this Agreement shall be sufficiently given or
served hereunder to any party when transmitted by express or certified mail,
postage prepaid, addressed to the party to be served as follows:

         Company:                   SkillSoft Corporation
                                    20 Industrial Park Drive
                                    Nashua, NH  03062
                                    Attn:  Secretary

                                       9
<PAGE>   10
         Recipient:                 At Recipient's address as it appears under
                                    Recipient's signature to this Agreement, or
                                    to such other address as Recipient may
                                    specify in writing to the Company

Any party may designate another address for receipt of notices so long as notice
is given in accordance with this Section.

                  17. Spousal Consent. Recipient shall cause his or her spouse
to execute the Consent of Spouse attached hereto as Exhibit E concurrently with
the execution of this Agreement or, if later, at the time Recipient becomes
married.

                  18. Delaware Law. The interpretation, performance and
enforcement of this Agreement shall be governed by the laws of the State of
Delaware.

                  IN WITNESS WHEREOF, the parties hereto have duly executed this
Restricted Stock Purchase Agreement as of the date first above written.

                              SKILLSOFT CORPORATION
                              a Delaware corporation

                              By /s/ Charles E. Moran
                                 ---------------------------

                              Its President and CEO
                                 ---------------------------

                              Recipient:

                              /s/ Jerald A. Nine
                                 ---------------------------
                                  Jerald A. Nine

                              Address:

                              43 Barrington Drive
                              Bedford, NH 03110

                                       10
<PAGE>   11
                                    EXHIBIT A
                             SECURED PROMISSORY NOTE

$4,375.00                                                         March 13, 1999

                  FOR VALUE RECEIVED, the undersigned Jerald A. Nine, an
individual residing at 43 Barrington Drive, Bedford, NH 03110 ("Maker"), hereby
promises to pay to SkillSoft Corporation, a Delaware corporation ("Payee"), on
the earlier of (i) March 13, 2004, or (ii) the date Maker ceases to be an
employee of Payee, for any reason, the principal sum of Four Thousand Three
Hundred Seventy-Five Dollars ($4,375.00), in lawful money of the United States
of America and in immediately available funds, plus simple interest from the
date hereof at the rate of four and 83/100 percent (4.83%) per annum, payable in
full on the date such principal amount is due, provided however, that the last
said installment shall be in an amount necessary to repay in full the unpaid
principal and interest hereof.

                  Interest shall be computed on the basis of a year of 365 days
for the actual number of days elapsed. Should interest not be paid when due
hereunder, it shall be added to the principal and thereafter bear like interest
as the principal, but such unpaid interest so compounded shall not exceed an
amount equal to simple interest on the unpaid principal at the maximum rate
permitted by law.

                  This is the Promissory Note referred to in the Security
Agreement of even date herewith between Maker and Payee, and Payee is entitled
to all the benefits provided therein.

                  (i) Prepayments. Maker reserves the right to prepay the
outstanding principal amount of this Note in full or in part at any time during
the term of this Note without notice and without premium or penalty.

                  (ii) Events of Default and Remedies. Any one of the following
occurrences shall constitute an "Event of Default" under this Note:

                           (a) Maker fails to make payment of full principal
amount of this Note as and when the same becomes due and payable in accordance
with the terms hereof.

                           (b) Maker becomes insolvent or bankrupt, commits any
act of bankruptcy, generally fails to pay its debts as they become due, becomes
the subject of any proceedings or action of any regulatory agency or any court
relating to insolvency, or makes an assignment for the benefit of its creditors,
or enters into any agreement for the composition, extension, or readjustment of
all or substantially all of his or her obligations.

                           (c) Maker ceases to be an employee of Payee for any
reason.

                           Upon the occurrence of any Event of Default
hereunder, the entire unpaid principal balance of this Note (including accrued
interest) shall, at the option of the Payee and without notice or demand of any
kind to Maker or any other person,
<PAGE>   12
immediately become due and payable, and Payee shall have and may exercise any
and all rights and remedies available to it at law or in equity.

                  (iii) Attorneys' Fees and Costs. Maker promises to pay on
demand all reasonable out-of-pocket costs of and expenses of Payee in connection
with the collection of amounts due hereunder, including, without limitation,
attorneys' fees incurred in connection therewith, whether or not any lawsuit is
ever filed with respect thereto.

                  (iv) Miscellaneous.

                           (a) Waiver. Maker waives diligence, presentment,
protest and demand and also notice of protest, demand, dishonor and nonpayment
of this Note. No extension of time for the payment of this Note shall affect the
original liability under this Note of Maker. The pleading of any statute of
limitations as a defense to any demand against Maker is expressly waived by
Maker to the full extent permitted by law.

                           (b) Setoff. The obligation to pay Payee shall be
absolute and unconditional and the rights of Payee shall not be subject to any
defense, setoff, counterclaim or recoupment or by reason of any indebtedness or
liability at any time owing by Payee to Maker.

                  IN WITNESS WHEREOF, the undersigned has executed and delivered
this Note as of the date first above written.

                                   MAKER

                                   /s/ Jerald A. Nine
                                   ---------------------------
                                       Jerald A. Nine

                                        2
<PAGE>   13
                                    EXHIBIT B
                               SECURITY AGREEMENT

                  THIS SECURITY AGREEMENT is made and entered into as of this
13th day of March, 1999, by and between SkillSoft Corporation, a Delaware
corporation ("Secured Party"), and Jerald A. Nine, an individual residing at 43
Barrington Drive, Bedford, NH 03110 ("Debtor").

                  In consideration of the mutual covenants contained herein and
for other good and valuable consideration, the adequacy and receipt of which is
hereby acknowledged, the parties hereby agree as follows:

                  1. Definitions. The following terms have the following
meanings:

                           (a) The term "Collateral" shall mean (i) the tangible
assets owned by Debtor as of the date hereof and described in Exhibit A attached
hereto and (ii) all Proceeds of the foregoing Collateral. For purposes of this
Security Agreement, the term "Proceeds" includes whatever is receivable or
received when Collateral or proceeds thereof is sold, collected, exchanged or
otherwise disposed of, whether such disposition is voluntary or involuntary, and
includes, without limitation, all rights to payment, including return premiums,
with respect to any insurance relating thereto.

                           (b) The term "Obligations" shall mean all of the
unpaid principal sum of that certain Secured Promissory Note in the original
principal amount of $4,375.00 of even date herewith (the "Note") evidencing the
indebtedness of Debtor to Secured Party.

                           (c) The term "UCC" shall mean the Uniform Commercial
Code as the same may, from time to time, be in effect in the State of New
Hampshire.

                           (d) Capitalized terms used herein shall have the
meaning set forth in the UCC unless otherwise set forth herein.

                           (e) The term "Event of Default" shall have the
meaning set forth in the Note.

                  2. Grant of Security Interest. As collateral security for
prompt and complete payment and performance under the Obligations, Debtor hereby
assigns, conveys, grants, pledges and transfers to and creates in favor of
Secured Party a security interest in the Collateral, including all Proceeds of
the foregoing and all accessions to, substitutions and replacements for the
foregoing. Debtor shall, upon execution of this Security Agreement, and of the
Note as Payee (as such term is defined in the Note), deliver all certificates
representing the Collateral together with a stock power executed in blank by
Debtor and Debtor's spouse with respect to such stock certificates to the
Secretary of Secured Party to be held in escrow until full satisfaction of
Debtor's obligations hereunder and under the Note with the authority to take all
such actions and to effectuate all such transfers and/or releases as may be
necessary or appropriate to accomplish the objectives of this Security Agreement
and the Note. In the event that the Proceeds from the disposition
<PAGE>   14
of the Collateral are insufficient to fully satisfy the amounts due and owing
under the Note, Debtor shall, subject to the limitations set forth in the UCC,
be liable for any deficiency.

                  3. Representations, Warranties and Covenants. Debtor
represents, warrants and covenants that:

                           (a) Title. Apart from the security interest in the
Collateral granted to Secured Party hereunder, Debtor has good and valid title
to the Collateral, free and clear of any and all liens, charges, claims,
security interests or encumbrances of any kind whatsoever.

                           (b) Transfer of Collateral. Debtor shall not sell,
assign, transfer, encumber or otherwise dispose of any of the Collateral or any
interest therein without the prior written consent of Secured Party. If any such
encumbrance is imposed, Debtor shall give Secured Party immediate written
notice.

                           (c) Perfection. Debtor shall, upon demand, do all
such acts as Secured Party may reasonably request to establish and maintain a
perfected security interest in the Collateral, including, without limitation,
executing a financing statement in the form prescribed by the New Hampshire
Secretary of State.

                  4. Remedies. Upon the occurrence of any Event of Default
hereunder, the entire unpaid principal balance of the Note shall, at the option
of the Payee and without notice or demand of any kind to Debtor or any other
person, immediately become due and payable, and Secured Party may proceed to
exercise any and all of the rights and remedies of a secured party under the UCC
and any other remedies available at law or in equity, with respect to the
Collateral.

                  IN WITNESS WHEREOF, the parties hereto have caused this
Security Agreement to be executed as of the date first above written.

                                   SECURED PARTY
                                   SKILLSOFT CORPORATION
                                   a Delaware corporation

                                   By: /s/ Thomas  J. McDonald, CFO
                                      ----------------------------------
                                   Its:    Thomas J. McDonald

                                   DEBTOR

                                   /s/ Jerald Nine
                                   -------------------------------------
                                       Jerald A. Nine

                                       2
<PAGE>   15
                                    EXHIBIT A
                            DESCRIPTION OF COLLATERAL

             25,000 shares of Common Stock of SkillSoft Corporation
<PAGE>   16
                                    EXHIBIT C

                   STOCK ASSIGNMENT SEPARATE FROM CERTIFICATE

                  FOR VALUE RECEIVED, ______________ hereby sells, assigns and
transfers unto SkillSoft Corporation, a Delaware corporation (the "Company"),
_______ (__________________________) shares of the Common Stock of the Company,
standing in his or her name on the books of SkillSoft Corporation, represented
by Certificate No. __ herewith, and does hereby irrevocably constitute and
appoint ________________ attorney to transfer the said stock in the books of
SkillSoft Corporation with full power of substitution.

DATED: ________________

                                   ________________________________________
                                   (Signature)

                                   ________________________________________
                                   (Printed Name)
<PAGE>   17
                                    EXHIBIT D
                          ELECTION UNDER SECTION 83(b)
                      OF THE INTERNAL REVENUE CODE OF 1986

                  The undersigned taxpayer hereby elects, pursuant to the
Internal Revenue Code, to include in gross income for 1999 the amount of any
compensation taxable in connection with the taxpayer's receipt of the property
described below;

                  1. The name, address, taxpayer identification number and
taxable year of the undersigned are:

                  TAXPAYER'S NAME:
                  SPOUSE'S NAME:

                  TAXPAYER'S SOCIAL SECURITY NO.:
                  SPOUSE'S SOCIAL SECURITY NO.:

                  TAXABLE YEAR:  Calendar Year 1999

                  ADDRESS:

                  2. The property which is the subject of this election is:
_______ shares of Common Stock of SkillSoft Corporation, a Delaware corporation.

                  3. The property was transferred to the undersigned on
_________, 1999.

                  4. The property is subject to the following restriction:

                  5. The fair market value of the property at the time of
transfer (determined without regard to any restriction other than a restriction
which by its terms will never lapse) is: $0.175 per share x _______ shares =
$__________.

                  6. The undersigned paid $0.175 per share x _______ shares for
the property transferred or a total of $_______.

                  The undersigned has submitted a copy of this statement to the
person for whom the services were performed in connection with the undersigned's
receipt of the above-described property. The undersigned taxpayer is the person
performing the services in connection with the transfer of said property.
<PAGE>   18
                  The undersigned will file this election with the Internal
Revenue Service office in which he or she files his or her annual income tax
return not later than 30 days after the date of transfer of the property. A copy
of the election also will be furnished to the person for whom the services were
performed. Additionally, the undersigned will include a copy of the election
with his or her income tax return for the taxable year in which property is
transferred. The undersigned understands that this election will also be
effective as an election under New Hampshire law.

Dated: ____________________________    _________________________________________
                                                        Taxpayer

The undersigned spouse of taxpayer joins in this election.

Dated: ____________________________    _________________________________________
                                                   Spouse of Taxpayer

                                       2
<PAGE>   19
                                    EXHIBIT E
                                CONSENT OF SPOUSE

                  I, Kimberly M. Nine, spouse of Jerry A. Nine, have read and
approved the foregoing Agreement. In consideration of the right of my spouse to
purchase shares of SkillSoft Corporation, as set forth in the Agreement, I
hereby appoint my spouse as my attorney-in-fact in respect to the exercise of
any rights of the Agreement insofar as I may have any rights under such
community property laws of the State of New Hampshire or similar laws relating
to marital property in effect in the state of our residence as of the date of
the signing of the foregoing Agreement.

Dated:  3/12/99                    /s/ Kimberly M. Nine
                                   -------------------------------
                                             [Signature]

                           Kimberly M. Nine
[Printed Name]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00000-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00000-of-00352.parquet"}]]