Document:

EX-10.1

Execution Copy

ASSET PURCHASE AGREEMENT

BETWEEN

CAMBIUM EDUCATION, INC.

AND

CLASS.COM, INC.

1

TABLE OF CONTENTS

§1. DEFINITIONS..................................................................................................... 4

§2. BASIC TRANSACTION................................................................................... 10

(a) Purchase and Sale of Assets...................................................................... 10

(b) Assumption of Liabilities.......................................................................... 10

(c) Purchase Price....................................................................................... 10

(d) The Closing......................................................................................... 10

(e) Deliveries at the Closing........................................................................... 10

(f) Allocation............................................................................................. 10

(g) Closing Date Balance Sheet....................................................................... 10

(h) Nonassignable Contracts...........................................................................11

§3. SELLER’S REPRESENTATIONS AND WARRANTIES............................................ 11

(a) Organization of Seller............................................................................... 11

(b) Authorization of Transaction ...................................................................... 11

(c) Non-contravention.................................................................................. 11

(d) Brokers’ Fees........................................................................................ 12

(e) Purchased Assets.................................................................................... 12

(f) Subsidiaries............................................................................................ 12

(g) Financial Statements ................................................................................ 12

(h) Events Subsequent to Most Recent Financial Statements...................................... 12

(i) Legal Compliance................................................................................... 13

(j) Tax Matters............................................................................................ 13

(k) Leased Real Property............................................................................... 13

(l) Intellectual Property................................................................................. 13

(m) Material Contracts................................................................................. 14

(n) Powers of Attorney.................................................................................. 15

(o) Litigation............................................................................................. 15

(p) Employee Benefits................................................................................... 15

(q) Environmental Matters............................................................................. 16

(r) Certain Business Relationships with Seller...................................................... 16

(s) Disclaimer of Other Representations and Warranties.......................................... 16

§4. BUYER’S REPRESENTATIONS AND WARRANTIES.............................................16

(a) Organization of Buyer.............................................................................. 16

(b) Authorization of Transaction ......................................................................17

(c) Non-contravention...................................................................................17

(d) Brokers’ Fees........................................................................................ 17

§5. COVENANTS................................................................................................17

(a) General............................................................................................... 17

(b) Notices and Consents.............................................................................. 17

(c) Operation of Business.............................................................................. 17

(d) Full Access.......................................................................................... 17

(e) Seller Stockholder Meeting........................................................................17

(f) Notice of Developments............................................................................18

(g) Transferred Employees........................................................................... 18

(h) Exclusivity........................................................................................... 18

(i) Change of Name..................................................................................... 18

(j) Noncompetition...................................................................................... 18

(k)Title to UNL Courseware...........................................................................19

§6. CONDITIONS TO OBLIGATION TO CLOSE......................................................... 19

(a) Conditions to Buyer’s Obligation................................................................. 19

(b) Conditions to Seller’s Obligation................................................................. 19

§7. TERMINATION.............................................................................................. 20

(a) Termination of Agreement......................................................................... 20

(b) Effect of Termination................................................................................ 20

§8. SURVIVAL AND INDEMNIFICATION................................................................. 21

(a) Survival............................................................................................... 21

(b) Indemnification..................................................................................... 21

(c) Set-Off................................................................................................ 22

(d) Limitations.......................................................................................... 22

(e) Indemnification Escrow Amount.................................................................. 22

(f) Dispute Resolution.................................................................................. 22

(g) Mediation............................................................................................ 22

(h) Judicial Resolution................................................................................. 22

§9. MISCELLANEOUS......................................................................................... 23

(a) Press Releases and Public Announcements..................................................... 23

(b) No Third-Party Beneficiaries ...................................................................... 23

(c) Entire Agreement................................................................................... 23

(d) Succession and Assignment....................................................................... 23

(e) Counterparts ......................................................................................... 23

(f) Headings............................................................................................. 23

(g) Notices............................................................................................... 23

(h) Governing Law...................................................................................... 24

(i) Amendments and Waivers......................................................................... 24

(j) Severability.......................................................................................... 24

(k) Expenses............................................................................................. 24

(l) Construction.......................................................................................... 24

(m) Incorporation of Exhibits and Schedules....................................................... 24

(n) Tax Matters.......................................................................................... 24

(o) Bulk Transfer Laws................................................................................. 25

Disclosure Schedule—Exceptions to Representations and Warranties

2

ASSET PURCHASE AGREEMENT

This Asset Purchase Agreement (this ‘‘Agreement’’) is entered into as of September 21, 2011,
by and between Cambium Education, Inc., a Colorado corporation (‘‘Buyer’’) and Class.com, Inc., a
Nevada corporation (‘‘Seller’’). Buyer and Seller are referred to collectively herein as the
‘‘Parties.’’

Seller conducts a business which develops, owns, licenses, markets, and sells access to, a
hosted and web based electronic portfolio of educational software for students and educators under
the trade name “Class.com” (the “Business”); and

This Agreement contemplates a transaction in which Buyer will purchase substantially all of
the assets of Seller and assume certain liabilities in return for a cash purchase price of
$4,500,000.

Now, therefore, in consideration of the premises and the mutual promises herein made, and in
consideration of the representations, warranties, and covenants herein contained, the Parties agree
as follows.

§1. Definitions.

“Acquired Assets” means all of the assets, properties and business, other than the Excluded
Assets, of every kind and description, wherever located, real, personal or mixed, tangible or
intangible, owned, held or used in the conduct of the Business by Seller as the same shall exist on
the Closing Date, including all of the assets shown on the Balance Sheet included in the Most
Recent Financial Statements and not thereafter disposed of in the ordinary course of business, and
all assets of the Business thereafter acquired by Seller, and including, without limitation, all
right, title and interest of Seller in, to and under:

 

(a) All personal property and interest therein, including equipment, furniture, office
equipment and communications equipment;

 

(b) All Leased Real Property;

(c)        All rights under all contracts, agreements, leases, licenses, commitments, sales
and purchase orders and other instruments, including without limitation the items listed on
Sections 3(c)(ii), 3(k), 3(l), and 3(m) of the Seller Disclosure Schedule, including all prepaid
expenses identified on Schedule 1(c), and all rights to any overage amounts that may be due under
the agreement between K-12, Inc. and Class.com;

 

(d)        All of Seller’s rights, claims, credits, causes of action or rights of set-off
against third parties relating to the Acquired Assets, including (without limitation) un-liquidated
rights under manufacturers’ and vendors’ warranties;

 

(e)        All Patents, Copyrights, trademarks, trade names, service marks, service names,
Technology, know-how, processes, trade secrets, inventions, proprietary data, formulae, research
and development data, Software and other intangible property and any applications for the same used
in the Business, including (without limitation) the items listed on Section 3(l) of the Seller
Disclosure Schedule;

 

(f)       All rights and title in and to use the name “Class.com” and all domain names and
URLs used in connection with the Business;

 

(g)        All transferable licenses, permits or other governmental authorizations affecting,
or relating in any way to, the Business.

 

(h)         All books, records, files and papers, whether in hard copy or computer format,
used in or relating in any way to the Business, including (without limitation) technical
information, sales and promotional literature, manuals and data, sales and purchase correspondence,
lists of present and former suppliers, and lists of present and former customers;

 

  (i)         All Software and data used in connection with or relating in any way to the
Business;

(j) Ownership of all intellectual property covered by the Technology License Agreement between
the University of Nebraska-Lincoln and Seller dated August 6, 2001; and

 

(k)        All goodwill associated with the Business or the Acquired Assets, together with the
right to represent to third parties that Buyer is the successors to the Business.

 

“Assumed Liabilities” means:

(a) all obligations of Seller to be performed after the Closing under the agreements,
contracts, leases, licenses, and other arrangements referred to in the definition of Acquired
Assets, but specifically excluding any liability, commitment or obligation of Seller that arises
out of or relates to any contract breach, action or failure to act that occurred on or before the
Closing Date;

(b) all liabilities, obligations and commitments not listed above to the extent (a) arising
from the operation or conduct of the Business after the Closing or (b) arising from the ownership,
lease, operation, use or condition of any Acquired Asset after the Closing; and

(c) for purposes of clarity, the Buyer will assume the obligation for fulfillment of the
deferred revenue liability.

‘‘Buyer’’ has the meaning set forth in the preface above.

‘‘Cash’’ means cash and cash equivalents (including marketable securities and short-term
investments) calculated in accordance with GAAP applied on a basis consistent with the preparation
of the Financial Statements.

‘‘Closing’’ has the meaning set forth in §2(e) below.

‘‘Closing Date’’ has the meaning set forth in §2(e) below.

‘‘Code’’ means the Internal Revenue Code of 1986, as amended.

‘‘Confidential Information’’ means any information concerning the business and affairs of
Seller that is not already generally available to the public.

‘‘Disclosure Schedule’’ has the meaning set forth in §3 below.

‘‘Employee Benefit Plan’’ means any ‘‘employee benefit plan’’ (as such term is defined in
ERISA §3(3)) and any other material employee benefit plan, program or arrangement.

‘‘Employee Pension Benefit Plan’’ has the meaning set forth in ERISA §3(2).

‘‘Employee Welfare Benefit Plan’’ has the meaning set forth in ERISA §3(1).

‘‘Environmental Requirements’’ means all federal, state, local, and non-U.S. statutes,
regulations, and ordinances concerning pollution or protection of the environment, including all
those relating to the presence, use, production, generation, handling, transportation, treatment,
storage, disposal, distribution, labeling, testing, processing, discharge, release, threatened
release, control, or cleanup of any hazardous materials, substances, or wastes, as such
requirements are enacted and in effect on or prior to the Closing Date.

‘‘ERISA’’ means the Employee Retirement Income Security Act of 1974, as amended.

‘‘ERISA Affiliate’’ means each entity that is treated as a single employer with Seller for
purposes of Code §414.

“Excluded Assets” means:

(a) Seller’s treasury stock, corporate seal, organizational documents, stock transfer records,
corporate minute books, all other records of Seller relating solely to its corporate organization
and structure, and such accounting books of original entry and other records which Seller is
required by law or governmental regulations to keep in its possession (provided, however, Buyer
shall be given access to such records with the right to make copies thereof);

(b) Seller’s rights under this Agreement including, but not limited to, all funds to be
received by Seller under this Agreement;

(c) the amounts existing as of the Closing Date in the following asset accounts of Seller:

(i) cash and cash equivalents in excess of $100,000;

(ii) accounts receivable in excess of Buyer Damages, if any, as set forth in §8;

(iii) deposits and insurance dividends, prepaid insurance premium refunds and payouts due or
yet to become due in connection with Seller’s conduct of business through and including the Closing
Date, excluding any security deposits, if any, paid for any of the facilities; and

(iv) Tax refunds and rights to utilize tax loss carry-forwards;

“Excluded Liabilities” means all liabilities or obligations of Seller other than Assumed
Liabilities, of any kind or nature, known or unknown, accrued, absolute, contingent or otherwise,
whatsoever, which shall include, without limitation, any liabilities or obligations of Seller:

(a)  incurred in connection with this Agreement and the transactions provided for herein,
including, without limitation, counsel, broker and accountant’s fees and expenses, and expenses
pertaining to the performance by Seller of its obligations hereunder;

(b)  in respect of Taxes of Seller, whether relating to periods before or after the
transactions contemplated in this Agreement or incurred by Seller or its Affiliates in connection
with this Agreement and the transactions provided for herein;

(c)  relating to past or present employees or independent contractors of Seller, including,
without limitation, any amounts in respect of compensation, stay bonuses, and all liabilities and
obligations of Seller under its Employee Benefit Plans, and as further provided in Section 5(g);

(d) in connection with or relating to any actions, suits, claims, proceedings, demands,
assessments and judgments, costs, losses, liabilities, damages, deficiencies and expenses (whether
or not arising out of third-party claims), including, without limitation, interest, penalties,
attorneys’ and accountants’ fees and all amounts paid in investigation, defense or settlement of
any of the foregoing, which liabilities or obligations arise out of or relate to (i) the use or
ownership of the Acquired Assets or the operation of the Business prior to the Closing Date,
(ii) any actions taken by Seller or any officer, director or shareholder of Seller or any of their
respective related persons or Affiliates on or prior to the Closing Date, or (iii) any continuing
business or other activities of Seller, its members, or any of their respective related persons or
Affiliates following the Closing Date;

(e) any obligation of Seller to indemnify any Person by reason of the fact that such Person
was a director, officer, employee, or agent of Seller or any of its Subsidiaries or was serving at
the request of any such entity as a partner, trustee, director, officer, employee, or agent of
another entity (whether such indemnification is for judgments, damages, penalties, fines, costs,
amounts paid in settlement, losses, expenses, or otherwise and whether such indemnification is
pursuant to any statute, charter document, bylaw, agreement, or otherwise);

(f) except for the contract obligations set forth in Section 5(g) of the Disclosure Schedule,
any obligation of Seller to employees or any third party that are in any way related to the this
transaction, including without limitation, severance obligations, change of control payments,
bonuses or any other payments;

(g) any liabilities or obligations for payment of any fees or expenses under the UNL May 2011
Agreement and any other agreements, obligations or arrangements with the University of
Nebraska-Lincoln, and

(h) any Liability of Seller for costs and expenses incurred in connection with this Agreement
and the transactions contemplated hereby.

‘‘Financial Statements’’ has the meaning set forth in §3(g) below.

‘‘GAAP’’ means United States generally accepted accounting principles as in effect from time
to time, consistently applied.

‘‘Income Tax’’ means any federal, state, local, or non-U.S. tax based on or measured by
reference to net income, including any interest, penalty, or addition thereto, whether disputed or
not.

‘‘Income Tax Return’’ means any return, declaration, report, claim for refund, or information
return or statement relating to Income Taxes, including any schedule or attachment thereto.

“Intellectual Property” means all of the following as they exist in any jurisdiction
throughout the world, in each case, to the extent owned by, licensed to, or otherwise used or held
for use by, or required for the operation of the Business, the facilities or the Purchased Assets:

(i) all inventions (whether patentable or unpatentable and whether or not
reduced to practice), all improvements thereto, and all patents, patent applications
and patent disclosures, and designs and improvements described and claimed therein
(collectively, “Patents”);

(ii) all trademarks, service marks, trade dress, trade names, brand names,
Internet domain names, designs, logos, or corporate names, whether registered or
unregistered, and all registrations and applications for registration thereof
(collectively, “Trademarks”);

(iii) all copyrightable works, publisher rights and author’s rights, whether
published or unpublished, including rights to prepare, reproduce and distribute
copies, compilations and derivative works, all copyrights, and all renewals and
extensions, copyright registrations and applications for registration (collectively,
“Copyrights”);

(iv) all technical, processing, manufacturing, marketing and other information,
including all trade secrets, confidential business information, concepts, ideas,
designs, research or development information, inventions, processes (including
software development processes), procedures, engineering, techniques, technical
information, specifications, operating and maintenance manuals, engineering
drawings, methods, know-how, data, mask works, discoveries, inventions,
modifications, extensions and improvements, (whether or not patentable or subject to
copyright, trademark, or trade secret protection) and other drawings, devices and
related information and documentation, and all claims and rights related thereto
(collectively, “Technology”);

(v) all computer software and firmware programs or listings, including all
source code, object code, complete system build software and documentation related
thereto, and any and all licenses and copies thereof and rights thereto and all
electronic data processing systems, information systems, computer hardware, program
specifications, charts, procedures, input data, routines, databases and report
layouts and formats, record file layouts, diagrams, functional specifications and
narrative descriptions, flow charts and other related material and documentation
(“Software”);

(vi) all licenses, and sublicenses, and other agreements or permissions related
to the Patents, Trademarks, Copyrights, Technology and Software and all other
proprietary rights described in this definition and all other proprietary rights;
and

(vii) all documents, records and files relating to design, end user documentation,
manufacturing, quality control, sales, marketing or customer support for all Patents,
Trademarks, Copyrights, Technology and Software.

‘‘Knowledge’’ means actual knowledge of the following individuals, Katherine Endacott, Dean
Wildman, Tom Ahlschwede, T.J. Jones, Jeremy Nash, Lisa Bourlier and Ellen Cox.

‘‘Leased Real Property’’ means all leasehold or subleasehold estates and other rights to use
or occupy any land, buildings, structures, improvements, fixtures or other interest in real
property that is used in Seller’s business.

‘‘Leases’’ means all leases, subleases, licenses, concessions and other agreements (written or
oral), including all amendments, extensions, renewals, guaranties, and other agreements with
respect thereto, pursuant to which Seller holds any Leased Real Property.

‘‘Lien’’ means any mortgage, pledge, lien, encumbrance, charge, or other security interest.

‘‘Material Adverse Effect’’ or ‘‘Material Adverse Change’’ means any effect which is or could
reasonably be expected to have a materially adverse effect to the operations (as presently
conducted or proposed to be conducted), assets, liabilities, condition (financial or otherwise) or
prospects of the Purchased Assets, the Business or the facilities or the ability of any of the
Seller to consummate the transactions herein contemplated.

‘‘Most Recent Financial Statements’’ has the meaning set forth in §3(g) below.

‘‘Multiemployer Plan’’ has the meaning set forth in ERISA §3(37).

‘‘Ordinary Course of Business’’ means the ordinary course of business consistent with past
custom and practice (including with respect to quantity and frequency).

‘‘Owned Real Property’’ means all land, together with all buildings, structures, improvements,
and fixtures located thereon, and all easements and other rights and interests appurtenant thereto,
owned by Seller and used in the business of Seller.

‘‘Party’’ has the meaning set forth in the preface above.

‘‘Person’’ means an individual, a partnership, a corporation, a limited liability company, an
association, a joint stock company, a trust, a joint venture, an unincorporated organization, any
other business entity, or a governmental entity (or any department, agency, or political
subdivision thereof).

‘‘Purchase Price’’ has the meaning set forth in §2(c) below.

‘‘Requisite Stockholder Approval’’ means the affirmative vote of the holders of a majority of
the common stock of Seller in favor of this Agreement.

‘‘Securities Act’’ means the Securities Act of 1933, as amended.

‘‘Securities Exchange Act’’ means the Securities Exchange Act of 1934, as amended.

‘‘Subsidiary’’ means, with respect to any Person, any corporation, limited liability company,
partnership, association, or other business entity of which (i) if a corporation, a majority of the
total voting power of shares of stock entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers, or trustees thereof is at the time
owned or controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof or (ii) if a limited liability company,
partnership, association, or other business entity (other than a corporation), a majority of the
partnership or other similar ownership interests thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination
thereof and for this purpose, a Person or Persons own a majority ownership interest in such a
business entity (other than a corporation) if such Person or Persons shall be allocated a majority
of such business entity’s gains or losses or shall be or control any managing director or general
partner of such business entity (other than a corporation). The term ‘‘Subsidiary’’ shall include
all Subsidiaries of such Subsidiary.

‘‘Seller’’ has the meaning set forth in the preface above.

‘‘Tax’’ or ‘‘Taxes’’ means any federal, state, local, or non-U.S. income, gross receipts,
license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits,
environmental (including taxes under Code §59A), customs duties, capital stock, franchise, profits,
withholding, social security (or similar), unemployment, disability, real property, personal
property, sales, use, transfer, registration, value added, alternative or add-on minimum,
estimated, or other tax of any kind whatsoever, whether computed on a separate or consolidated,
unitary or combined basis or in any other manner, including any interest, penalty, or addition
thereto, whether disputed or not.

‘‘Tax Return’’ means any return, declaration, report, claim for refund, or information return
or statement relating to Taxes, including any schedule or attachment thereto, and including any
amendment thereof.

“Transferred Employee” has the meaning set forth in §5(g) below.

“UNL May 2011 Agreement” has the meaning set forth in §1(j) above.

§2. Basic Transaction.

(a) Purchase and Sale of Assets. On and subject to the terms and conditions of this Agreement,
Buyer agrees to purchase from Seller, and Seller agrees to sell, transfer, convey, and deliver to
Buyer, all of the Acquired Assets at the Closing for the consideration specified below in this §2.
Buyer will not assume or have any rights, however, with respect to any of the Excluded Assets.

(b) Assumption of Liabilities. On and subject to the terms and conditions of this Agreement,
Buyer agrees to assume and become responsible for all of the Assumed Liabilities at the Closing.
Buyer will not assume or have any responsibility, however, with respect to the Excluded
Liabilities.

(c) Purchase Price.  Buyer agrees to pay to Seller at the Closing (i) $4,500,000,
and (ii) an amount equal to $742 per day for each day in October that will occur after the Closing,
(the ‘‘Purchase Price’’) by delivery of cash payable by wire transfer or delivery of other
immediately available funds.

(d) The Closing. The closing of the transaction contemplated by this Agreement (the
‘‘Closing’’) shall take place at the offices of the Seller, in Lincoln, Nebraska commencing at 9:00
a.m. local time on the second business day following the satisfaction or waiver of all conditions
to the obligations of the Parties to consummate the transactions contemplated hereby (other than
conditions with respect to actions the respective Parties will take at the Closing itself) or such
other date as the Parties may mutually determine (the ‘‘Closing Date’’).

(e) Deliveries at the Closing. At the Closing, (i) Seller shall deliver to Buyer the various
certificates, instruments, and documents referred to in §6(a) below; (ii) Buyer will deliver to
Seller the various certificates, instruments, and documents referred to in §6(b) below; (iii)
Seller shall execute, acknowledge (if appropriate), and deliver to Buyer (A) assignments (including
real property and intellectual property transfer documents) in form and substance reasonably
acceptable to Buyer and (B) such other instruments of sale, transfer, conveyance, and assignment as
Buyer and its counsel may reasonably request; (iv) Buyer shall execute, acknowledge (if
appropriate), and deliver to Seller (A) an assumption in form and substance reasonably acceptable
to Seller and (B) such other instruments of assumption as Seller and its counsel may reasonably
request; and (v) Buyer will deliver to Seller the consideration specified in §2(c) above.

(f) Allocation. Prior to the Closing, Seller and Buyer shall use their best efforts to agree
in writing to an allocation of the Purchase Price among the Acquired Assets for all purposes
(including Tax and financial accounting). The failure of Seller and Buyer to reach agreement on a
Purchase Price allocation shall not constitute grounds for termination of this Agreement by any
Party and agreement by Seller and Buyer to a Purchase Price allocation shall not be a condition to
the obligation of any Party to consummate the transactions contemplated by this Agreement.

(g) Closing Statement. A Closing Statement shall be delivered to the Buyer on the Closing
Date setting forth the following information:

(i) an aged list identifying each accounts receivable outstanding as of such date;

(ii) a statement of deferred revenues as of September 30, 2011 and all available supporting
detail.

(h) Nonassignable Contracts.

(1) To the extent that the assignment by Seller of any sales order, purchase order, lease or
other contract included in the Assumed Obligations set forth in §2(b) is not permitted without (i)
the consent of the other party to the contract, (ii) the approval of Buyer as a source of the
products or services called for by such contract, (iii) the approval of Buyer as a lessee, or (iv)
notice to the other party, then, at the option of Buyer, this Agreement shall not be deemed to
constitute an assignment or an attempted assignment of the same, if such assignment or attempted
assignment would constitute a breach thereof. However, unless otherwise agreed as to any
particular contract or order (or class thereof), Seller shall use all reasonable efforts to obtain
any and all such consents, approvals and novations, and shall give all notices.

(2) If any necessary consent, approval or novation is not obtained, Seller shall cooperate
with Buyer in any reasonable arrangement designed to provide Buyer with all of the benefits under
such contract, lease or order as if such consent, approval or novation had been obtained, including
subleases from Seller and undertakings by Buyer of the work necessary to complete contracts as the
agent of Seller with the understanding that Sellers shall then invoice the customer for services
rendered and promptly remit the amount of any payment received to Buyer. Nothing herein shall
excuse Seller from responsibility for any of its representations and warranties or covenants
herein.

§3. Seller’s Representations and Warranties.  Seller represents and warrants to
Buyer that the statements contained in this §3 are correct and complete as of the date of this
Agreement and will be correct and complete as of the Closing Date (as though made then and as
though the Closing Date were substituted for the date of this Agreement throughout this §3), except
as set forth in the disclosure schedule accompanying this Agreement and initialed by the Parties
(the ‘‘Disclosure Schedule’’). The Disclosure Schedule will be arranged in paragraphs
corresponding to the lettered and numbered paragraphs contained in this §3.

(a) Organization of Seller. Seller is a corporation duly organized, validly existing, and in
good standing under the laws of the State of Nevada.

(b) Authorization of Transaction. Seller has full power and authority (including full
corporate or other entity power and authority) to execute and deliver this Agreement and to perform
its obligations hereunder. Without limiting the generality of the foregoing, the board of directors
of Seller has duly authorized the execution, delivery, and performance of this Agreement by Seller.
This Agreement constitutes the valid and legally binding obligation of Seller, enforceable in
accordance with its terms and conditions.

(c) Non-contravention. Neither the execution and delivery of this Agreement, nor the
consummation of the transactions contemplated hereby (including the assignments and assumptions
referred to in §2 above), will (i) violate any constitution, statute, regulation, rule,
injunction, judgment, order, decree, ruling, charge, or other restriction of any government,
governmental agency, or court to which Seller is subject or any provision of the charter or bylaws
of Seller or (ii) conflict with, result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or
require any notice under any agreement, contract, lease, license, instrument, or other arrangement
to which Seller is a party or by which it is bound or to which any of its assets is subject (or
result in the imposition of any Lien upon any of its assets), except where the violation, conflict,
breach, default, acceleration, termination, modification, cancellation, failure to give notice, or
Lien would not have a Material Adverse Effect. Seller does not need to give any notice to, make
any filing with, or obtain any authorization, consent, or approval of any government or
governmental agency in order for the Parties to consummate the transactions contemplated by this
Agreement (including the assignments and assumptions referred to in §2 above), except where the
failure to give notice, to file, or to obtain any authorization, consent, or approval would not
have a Material Adverse Effect.

(d) Brokers’ Fees. Except as set forth in the Disclosure Schedule, Seller has no liability or
obligation to pay any fees or commissions to any broker, finder, or agent with respect to the
transactions contemplated by this Agreement for which Buyer could become liable or obligated.

(e) Acquired Assets. Except as set forth in §3(e) of the Disclosure Schedule, (i) Seller is
the sole and exclusive legal and equitable owner of all right, title and interest in and to all of
the Acquired Assets including all of the rights to produce, reproduce, license, develop, use and
distribute the online curricula materials; and (ii) Seller has good and marketable title to all of
the Acquired Assets free and clear of the interests and rights of any other party. None of the
Acquired Assets contain any defamatory, scandalous, obscene, libelous or unlawful matter. The
Seller has not received any claim or complaint that the Acquired Assets contain any defamatory,
scandalous, obscene, libelous or unlawful matter. Except as set forth in §3(e) of the Disclosure
Schedule. all of the Acquired Assets may be transferred to Buyer without the consent or approval of
any person. Except as set forth in §3(e) of the Disclosure Schedule, none of the Acquired Assets
are subject to any lease, license, right, security interest, mortgage, pledge, lien, charge,
encumbrance, claim, covenant or restriction of any kind or character, direct or indirect, whether
accrued, absolute, contingent or otherwise (an “Encumbrance”). The Acquired Assets are in good
repair, order and condition (reasonable wear and tear excepted), are suitable for the purposes for
which they are presently being used, and are adequate to meet all present requirements of the
Business. The Acquired Assets will furnish Buyer with all of the capacity and rights to operate
the Business in the same manner as presently and historically operated by Sellers.

(f) Subsidiaries. The Seller has no Subsidiaries.

(g) Financial Statements. The Seller’s (i) audited consolidated balance sheets and
statements of income, changes in stockholders’ equity, and cash flow as of and for the fiscal years
ended September 30, 2010, September 30, 2009, and September 30, 2008, and (ii) unaudited
consolidated balance sheet and statement of income, changes in stockholders’ equity, and cash flow
as of and for the ten months ended July 31, 2011 (the ‘‘Most Recent Financial Statements’’)
delivered to Buyer are (a) accurate, correct and complete, (b) in accordance with the books of
account and records of Seller, (c) fair presentations of the financial condition and the results of
operations as of the dates and for the periods indicated and (d) prepared in accordance with
generally accepted accounting principles applied on a consistent basis throughout the periods
covered thereby in accordance with the historical practice of the Seller (“GAAP”); provided,
however, that the Most Recent Financial Statements are subject to normal year-end adjustments and
lack footnotes and other presentation items. Except for current liabilities incurred in the
ordinary course of business since July 31, 2011, the Business is not subject to any liability or
obligation (whether absolute, accrued, contingent or otherwise) which is not shown or provided for
on the Most Recent Financial Statements or described in narrative form on §3(g) of he Disclosure
Schedule. All accounts receivable included in the Purchased Assets were generated in the ordinary
course of the Business. Except for the current liabilities incurred in the ordinary course of
business since July 31, 2011, and liabilities provided for on the Most Recent Financial Statements,
the Business is not subject to any liability or obligation. Except as set forth in §3(g) of the
Disclosure Schedule, all accounts receivable outstanding as of the Closing Date will be
collectible within sixty (60) days of the Closing Date, net of the allowance for doubtful accounts
reflected thereon.

(h) Events Subsequent to Most Recent Financial Statements. Since the Most Recent Financial
Statements, there has not been any Material Adverse Change. Without limiting the generality of the
foregoing, since that date Seller has not engaged in any practice, taken any action, or entered
into any transaction outside the Ordinary Course of Business the primary purpose or effect of which
has been to generate or preserve Cash.

(i) Legal Compliance. To the Knowledge of Seller, Seller has complied with all applicable laws
(including rules, regulations, codes, plans, injunctions, judgments, orders, decrees, rulings, and
charges thereunder) of federal, state, local, and non-U.S. governments (and all agencies thereof),
except where the failure to comply would not have a Material Adverse Effect.

(j) Tax Matters.

(i) Seller has filed all Tax Returns that it was required to file, and has paid all Taxes
shown thereon as owing.

(ii) §3(j) of the Disclosure Schedule lists all Tax Returns filed with respect to Seller for
taxable periods ended on or after October 1, 2009 indicates those Tax Returns that have been
audited, and indicates those Tax Returns that currently are the subject of audit. Seller has
delivered to Buyer correct and complete copies of all federal Tax Returns, examination reports, and
statements of deficiencies assessed against or agreed to by Seller since October 1, 2009.

(iii) Except as set forth in §3(j)(iii) of the Disclosure Schedule, no action, suit,
proceeding, or audit is pending against or with respect to Seller regarding Taxes.

(iv) Seller has not waived any statute of limitations in respect of Taxes or agreed to any
extension of time with respect to a Tax assessment or deficiency.

(v) Seller is not a party to any Tax allocation or sharing agreement.

(vi) Seller has not been a member of an Affiliated Group filing a consolidated federal Income
Tax Return.

(vii) Seller is not and has not been a party to any ‘‘listed transaction,’’ as defined in Code
§6707A(c)(2) and Reg. §1.6011-4(b)(2).

(k) Leased Real Property. Section 3(k)(i) of the Disclosure Schedule sets forth the address
of each parcel of Leased Real Property, and a true and complete list of all Leases for each such
parcel of Leased Real Property. Seller has delivered to Buyer a true and complete copy of each
Lease document.

(l) Intellectual Property. §3(l) of the Disclosure Schedule sets forth an accurate, correct
and complete list and summary description of all Intellectual Property. §3(l) of the Disclosure
Schedule contains an indication of any renewals, taxes or fees due in respect thereof within ninety
(90) days of the Closing Date. Except as set forth on §3(l) of the Disclosure Schedule, with
respect to the Intellectual Property, (i) Seller is the sole and exclusive owner and has the sole
and exclusive right to use the Intellectual Property free and clear of any encumbrances or other
rights or claims of others; (ii) no action, suit, proceeding or investigation has ever been
instituted, is pending or, to Seller’s Knowledge, threatened; (iii) none of the Intellectual
Property or products or methods of the Business, including the publication, distribution,
reproduction or sale of the digital curricula for instructing students, interferes with, infringes
upon, conflicts with or otherwise violates the rights of others or, to the Knowledge of Seller, is
being interfered with or infringed upon by others, and none is subject to any outstanding order,
decree or judgment; (iv) there are no royalty, commission or similar arrangements, and no licenses,
sublicenses or agreements, pertaining to any of the Intellectual Property or products or methods of
the Business; (v) Seller has not agreed to indemnify any person for or against any infringement of
or by the Intellectual Property; (vi) Seller has no Knowledge of any product or method of any other
person which would infringe upon any of the Intellectual Property; (vii) all items of Intellectual
Property are properly registered under applicable law; and (viii) all rights of Seller in and to
the Intellectual Property are transferable to Buyer as contemplated herein without any consent or
other approval. None of the methods or activities of, or products manufactured by, the Business
infringe upon or violate in any manner any rights of others, including rights of the type described
as Intellectual Property in this Agreement. Buyer has been provided with accurate, correct and
complete copies or written descriptions of all studies, opinions and searches of which Seller has
Knowledge relating to any Intellectual Property or any infringement of or by any Intellectual
Property, all of which are listed on §3(l) of the Disclosure Schedule. All Technology is
documented in a manner comparable to that of similarly situated businesses and in condition for
conveyance to and readily useable by Buyer and has been continuously maintained in confidence by
taking reasonable precautions to protect the secrecy of all Technology and prevent disclosure to
unauthorized parties. With respect to the Software, (i) the source code with respect to any
Software owned by Seller or used exclusively in the Business is not in the possession of any party
other than Seller and has been maintained as confidential by Seller, (ii) all Software
documentation is accurate and sufficient in detail and content to identify and explain the nature
thereof, and to allow its full and proper use by reasonably knowledgeable Buyer programmers without
reliance on the special knowledge or memory of others, and (iii) Seller does not use any
unlicensed or undocumented third party Software on its computers. Seller will pay the cost of
obtaining permission to use any third party intellectual property contained in the courseware
delivered to Buyer, which cost shall not be subject to the Basket provided for in Section 8(d).

(m) Material Contracts. §3(m) of the Disclosure Schedule sets forth an accurate, correct and
complete list of all contracts, instruments, commitments, agreements, arrangements and
understandings, including all amendments and supplements thereto related to the Business, the
Facilities (or their operations) or the Purchased Assets (i) which are material to the operations
(as historically conducted or presently conducted), assets, liabilities, condition (financial or
otherwise), operations or prospects of the Business, the Facilities or the Purchased Assets, or
(ii) which otherwise involve any of the following types of contracts (the items in (i) and (ii)
being collectively referred to herein as the “Material Contracts”):

(1) all purchase orders or contracts for the purchase of any materials or services
(including utilities) involving an amount in excess of $10,000 or which were not
entered into in the ordinary course of business;

(2) any sales, license, service or distribution agreements, or open purchase orders
or similar commitments providing for the sale or licenses of products in an amount
in excess of $10,000;

(3) any design, engineering, consulting, manufacturing or distribution agreement;

(4) all personal property leases involving an amount in excess of $10,000;

(5) all waste disposal, maintenance and related contracts;

(6) all contracts containing “take or pay” provisions;

(7) all contracts for Insurance;

(8) all contracts providing Sellers with the right to reproduce or in any way deal
with the works of others;

(9) all leases, agreements, contracts and other instruments affecting the
facilities;

(10) all employment contracts;

(11) all licenses, agreements, contracts and other instruments affecting
Intellectual Property;

(12) all waste disposal, maintenance and similar agreements;

(13) all agreements and contracts with a remaining term of one year or more and not
cancelable without penalty on 30 days or less notice;

(14) all agreements and contracts with state, federal, local, regulatory or other
governmental entities;

(15) all agreements and contracts containing a provisions to indemnify any party or
assume any tax, environmental or other liability;

(16) any other contract, commitment, agreement, arrangement or understanding which
provides for payment or performance by any party thereto having an aggregate value
of $10,000 or more; and

(17) any agreement not to compete or otherwise restricting activities.

Accurate, correct and complete copies of each written Material Contract (and written summaries
of each oral Material Contract) have been delivered to Buyer. Each Material Contract is in full
force and effect and is valid, binding and enforceable in accordance with its terms, assuming that
the other party thereto in each case was properly authorized by all requisite corporate (or if not
a corporation, by all other requisite) action and has properly executed and delivered such contract
or instrument. Each party has complied with all commitments and obligations on its part to be
performed or observed under each Material Contract. No event has occurred which is or, after the
giving of notice or passage of time, or both, would constitute a default under or a breach of any
Material Contract by Seller, or, to the Knowledge of Seller, by any other party. Except as set
forth in §3(m) of the Disclosure Schedule, the consummation of the transactions contemplated
hereby, without notice to or consent or approval of any party, will not constitute a default under
or a breach of any provision of any Material Contract. With respect to each Material Contract
which is to be assigned to Buyer pursuant to the terms hereof, Buyer will succeed to all the rights
and benefits of Seller. The Seller has not granted any powers of attorney with respect to the
Business. Third party cost obligations (other than platform and internet fees incurred in the
ordinary course of business) necessary to the performance of the customer agreements identified in
the Exhibit to Section 3(m) of the Disclosure Schedule do not, in the aggregate, exceed $42,000.

(n) Powers of Attorney. There are no outstanding powers of attorney executed on behalf of
Seller.

(o) Litigation. Seller (i) is not subject to any outstanding injunction, judgment, order,
decree, ruling, or charge and (ii) is not a party to any action, suit, proceeding, hearing, or
investigation of, in, or before any court or quasi-judicial or administrative agency of any
federal, state, local, or non-U.S. jurisdiction.

(p) Employee Benefits.

(i) §3(p) of the Disclosure Schedule lists each Employee Benefit Plan that Seller maintains,
to which Seller contributes, or with respect to which Seller has any liability.

(A) Each such Employee Benefit Plan (and each related trust, insurance contract, or fund) has
been maintained, funded and administered in accordance with the terms of such Employee Benefit Plan
and complies in form and in operation in all respects with the applicable requirements of ERISA and
the Code, except where the failure to comply would not have a Material Adverse Effect.

(B) All contributions (including all employer contributions and employee salary reduction
contributions) that are due have been made to each such Employee Benefit Plan that is an Employee
Pension Benefit Plan. All premiums or other payments that are due have been paid with respect to
each such Employee Benefit Plan that is an Employee Welfare Benefit Plan.

(C) Each such Employee Benefit Plan that is intended to meet the requirements of a ‘‘qualified
plan’’ under Code §401(a) has received a determination letter from the Internal Revenue Service to
the effect that it meets the requirements of Code §401(a).

(ii) Seller does not maintain, sponsor or contribute to any Employee Pension Benefit Plan that
is a ‘‘defined benefit plan’’ (as defined in ERISA §(35)).

(q) Environmental Matters.

(i) Seller is in compliance with Environmental Requirements, except for such non-compliance as
would not have a Material Adverse Effect.

(ii) Seller has not received any written notice, report, or other information regarding any
actual or alleged material violation of Environmental Requirements, or any material liabilities or
potential material liabilities (whether accrued, absolute, contingent, unliquidated, or otherwise),
including any investigatory, remedial, or corrective obligations relating to Seller or its
facilities arising under Environmental Requirements.

(iii) This §3(q) contains the sole and exclusive representations and warranties of Seller with
respect to any environmental matters, including without limitation any arising under any
Environmental Requirements.

(r) Certain Business Relationships with Seller. Except as set forth in §3(r) of the
Disclosure Schedule, no Person holding five percent (5%) or more of the equity securities of Seller
nor any of the Affiliates of any such Person has been involved in any business arrangement or
relationship with Seller within the past 12 months, and no such Person nor any Affiliate of such
Person (i) owns any material asset, tangible or intangible, or (ii) is a party to any contract,
lease, license, agreement or commitment, used in the Business of Seller.

(s) Disclaimer of Other Representations and Warranties. Except as expressly set forth in this
§3, Seller makes no representation or warranty, express or implied, at law or in equity, in respect
of any of its assets (including, without limitation, the Acquired Assets), liabilities or
operations, including, without limitation, with respect to merchantability or fitness for any
particular purpose, and any such other representations or warranties are hereby expressly
disclaimed. Buyer hereby acknowledges and agrees that, except to the extent specifically set forth
in this §3, Buyer is purchasing the Acquired Assets on an ‘‘as-is, where-is’’ basis. Without
limiting the generality of the foregoing, Seller makes no representation or warranty regarding any
assets other than the Acquired Assets or any liabilities other than the Assumed Liabilities, and
none shall be implied at law or in equity.

§4. Buyer’s Representations and Warranties. Buyer represents and warrants to Seller (and to
Seller Stockholders for purposes of the Agreement with Seller Stockholders) that the statements
contained in this §4 are correct and complete as of the date of this Agreement and will be correct
and complete as of the Closing Date (as though made then and as though the Closing Date were
substituted for the date of this Agreement throughout this §4), except as set forth in the
Disclosure Schedule. The Disclosure Schedule will be arranged in paragraphs corresponding to the
lettered and numbered paragraphs contained in this §4.

(a) Organization of Buyer. Buyer is a corporation (or other entity) duly organized, validly
existing, and in good standing under the laws of Colorado.

(b) Authorization of Transaction. Buyer has full power and authority (including full corporate
or other entity power and authority) to execute and deliver this Agreement and to perform its
obligations hereunder. This Agreement constitutes the valid and legally binding obligation of
Buyer, enforceable in accordance with its terms and conditions. The execution, delivery and
performance of this Agreement and all other agreements contemplated hereby have been duly
authorized by Buyer.

(c) Non-contravention. Neither the execution and delivery of this Agreement, nor the
consummation of the transactions contemplated hereby (including the assignments and assumptions
referred to in §2 above), will (i) violate any constitution, statute, regulation, rule, injunction,
judgment, order, decree, ruling, charge, or other restriction of any government, governmental
agency, or court to which Buyer is subject or any provision of its charter, bylaws, or other
governing documents or (ii) conflict with, result in a breach of, constitute a default under,
result in the acceleration of, create in any party the right to accelerate, terminate, modify, or
cancel, or require any notice under any agreement, contract, lease, license, instrument, or other
arrangement to which Buyer is a party or by which it is bound or to which any of its assets are
subject. Buyer does not need to give any notice to, make any filing with, or obtain any
authorization, consent, or approval of any government or governmental agency in order for the
Parties to consummate the transactions contemplated by this Agreement (including the assignments
and assumptions referred to in §2 above).

(d) Brokers’ Fees. Buyer has no liability or obligation to pay any fees or commissions to any
broker, finder, or agent with respect to the transactions contemplated by this Agreement.

§5. Covenants.  The Parties agree as follows with respect to the period between the
execution of this Agreement and the Closing:

(a) General. Each of the Parties will use its reasonable best efforts to take all actions and
to do all things necessary in order to consummate and make effective the transactions contemplated
by this Agreement (including satisfaction, but not waiver, of the Closing conditions set forth in
§6 below).

(b) Notices and Consents. Seller shall give any notices to third parties, and Seller shall use
its reasonable best efforts (to obtain any third-party consents, referred to in §3(c) above and the
items set forth in §5(b) of the Disclosure Schedule. Each of the Parties will give any notices to,
make any filings with, and use its reasonable best efforts to obtain any authorizations, consents,
and approvals of governments and governmental agencies in connection with the matters referred to
in §3(c) and §4(c) above.

(c) Operation of Business. Seller will not engage in any practice, take any action, or enter
into any transaction prior to the Closing Date outside the Ordinary Course of Business.

(d) Full Access. Seller will permit representatives of Buyer (including legal counsel and
accountants) to have full access at all reasonable times prior to Closing, and in a manner so as
not to interfere with the normal business operations of Seller, to all premises, properties,
personnel, books, records (including tax records), contracts, and documents of or pertaining to
Seller. Buyer will treat and hold as such any Confidential Information it receives from Seller in
the course of the reviews contemplated by this §5(d), will not use any of the Confidential
Information except in connection with this Agreement, and, if this Agreement is terminated for any
reason whatsoever, will return to Seller all tangible embodiments (and all copies) of the
Confidential Information that are in its possession.

(e) Seller Stockholders’ Meeting.

           (i)  Seller shall take all action necessary to call, give notice of, convene and
hold a special stockholders’ meeting to consider and vote on a proposal to adopt and approve this
Agreement as soon as practicable following the date of this Agreement and in no event later than
forty (40) days (or such other later date which the parties may agree upon in writing) after the
date of this Agreement.

           (ii) Subject to the provisions of Section 5(h), the board of directors of Seller
shall recommend that the Seller Stockholders adopt and approve this Agreement, and Seller shall
include such recommendation in any Proxy Statement Seller shall use in its effort to obtain the
stockholder approval of this Agreement.

(f) Notice of Developments.

(i) Seller may elect at any time prior to the Closing to notify Buyer of any development
causing a breach of any of its representations and warranties in §3(g)–(p) above. Unless Buyer has
the right to terminate this Agreement pursuant to §7(a)(ii) below by reason of the development and
exercises that right within the period of 10 business days referred to in §7(a)(ii) below, the
written notice pursuant to this §5(e)(i) will be deemed to have amended the Disclosure Schedule, to
have qualified the representations and warranties contained in §3 above, and to have cured any
misrepresentation or breach of warranty that otherwise might have existed hereunder by reason of
the development.

(ii) Prior to the Closing each Party will give prompt written notice to the other Party of any
material adverse development causing a breach of any of his, her, or its own representations and
warranties in §3(a)–(f) and §4 above. No disclosure by any Party pursuant to this §5(e)(ii),
however, shall be deemed to amend or supplement the Disclosure Schedule or to prevent or cure any
misrepresentation or breach of warranty.

(g) Transferred Employees. Buyer shall offer employment to Seller’s employees not less than
five business days prior to Closing, on such terms and conditions as Buyer may determine. Each
Business Employee who accepts an offer of employment from Buyer is referred to herein as a
“Transferred Employee”. With respect to Transferred Employees, Buyer will be a successor of
Seller with respect to, and will credit each such Transferred Employee with, any and all accrued
and unused vacation time required to be used during 2011. Buyer shall not assume any obligations
for wages owing to Transferred Employees for any period prior to the Closing Date or any liability
with respect to any pension plan, welfare plan, retiree medical expenses, severance, change of
control, bonus, separation obligation or arrangement of Seller that are currently existing or may
result from the consummation of the transactions contemplated by this Agreement, or other employee
benefit plan or program relating to any Transferred Employee or other present, former or retired
employee of Seller except as set forth in Section 5(g) of the Disclosure Schedule.

(h) Exclusivity. During the period between the date of this Agreement and the Closing, Seller
will not solicit, initiate, or encourage the submission of any proposal or offer from any Person
relating to the acquisition of all or substantially all of the capital stock or assets of Seller
(including any acquisition structured as a merger, consolidation, or share exchange); provided,
however, that Seller, its directors and officers will remain free to participate in any discussions
or negotiations regarding, furnish any information with respect to, assist or participate in, or
facilitate in any other manner any effort or attempt by any Person to do or seek any of the
foregoing to the extent their fiduciary duties may require.

(i) Change of Name. Seller agrees to change its corporate name to a name that does not
include the word “Class”, no later than three business days following the Closing Date.

(j)  Noncompetition. For a period of five (5) years after the Closing Date, Seller shall not,
anywhere in the United States, directly or indirectly invest in, own, manage, operate, finance,
control, advise, render services to or guarantee the obligations of any Person engaged in or
planning to become engaged in the businesses of the Business.

(k) Title to UNL Courseware. At the Closing Seller shall deliver to Buyer, title to the
intellectual property covered by the Technology License Agreement dated August 6, 2001 pursuant to
the Technology License Expiration Agreement dated May 13, 2011, by Bill of Sale in form and
substance acceptable to Buyer.

§6. Conditions to Obligation to Close.

(a) Conditions to Buyer’s Obligation. Buyer’s obligation to consummate the transactions to
be performed by it in connection with the Closing is subject to satisfaction of the following
conditions:

(i) The representations and warranties set forth in §3 above shall be true and correct in all
respects at and as of the Closing Date, except to the extent that such representations and
warranties are qualified by the term ‘‘material,’’ or contain terms such as ‘‘Material Adverse
Effect’’ or ‘‘Material Adverse Change,’’ in which case such representations and warranties (as so
written, including the term ‘‘material’’ or ‘‘Material’’) shall be true and correct in all respects
at and as of the Closing Date;

(ii) This Agreement shall have been approved by the Requisite Stockholder Approval;

(iii) Seller shall have performed and complied with all of its covenants hereunder in all
respects through the Closing, except to the extent that such covenants are qualified by the term
‘‘material,’’ or contain terms such as ‘‘Material Adverse Effect’’ or ‘‘Material Adverse Change,’’
in which case Seller shall have performed and complied with all of such covenants (as so written,
including the term ‘‘material’’ or ‘‘Material’’) in all respects through the Closing;

(iv) There shall not be any injunction, judgment, order, decree, ruling, or charge in effect
preventing consummation of any of the transactions contemplated by this Agreement;

(v) Seller shall have delivered to Buyer a certificate to the effect that each of the
conditions specified above in §6(a)(i)–(iii) is satisfied in all respects;

(vi) Seller and Buyer shall have received all authorizations, consents, and approvals of
governments and governmental agencies referred to in §3(c) and §4(c) above;

(vii) Seller shall have received all authorizations, consents, and approvals of the other
parties identified in §3(c) of Seller’s Disclosure Schedule that require such authorizations,
consents and approvals; and

(viii) All actions to be taken by Seller in connection with consummation of the transactions
contemplated hereby and all certificates, opinions, instruments, and other documents required to
effect the transactions contemplated hereby will be reasonably satisfactory in form and substance
to Buyer; and Buyer may waive any condition specified in this §6(a) if it executes a writing so
stating at or prior to the Closing.

(b) Conditions to Seller’s Obligation. Seller’s obligation to consummate the transactions to
be performed by it in connection with the Closing is subject to satisfaction of the following
conditions:

(i) The representations and warranties set forth in §4 above shall be true and correct in all
respects at and as of the Closing Date, except to the extent that such representations and
warranties are qualified by the term ‘‘material,’’ or contain terms such as ‘‘Material Adverse
Effect’’ or ‘‘Material Adverse Change,’’ in which case such representations and warranties (as so
written, including the term ‘‘material’’ or ‘‘Material’’) shall be true and correct in all respects
at and as of the Closing Date;

(ii) This Agreement shall have been approved by the Requisite Stockholder Approval;

(iii) Buyer shall have performed and complied with all of its covenants hereunder in all
respects through the Closing, except to the extent that such covenants are qualified by the term
‘‘material,’’ or contain terms such as ‘‘Material Adverse Effect’’ or ‘‘Material Adverse Change,’’
in which case Buyer shall have performed and complied with all of such covenants (as so written,
including the term ‘‘material’’ or ‘‘Material’’) in all respects through the Closing;

(iv) There shall not be any injunction, judgment, order, decree, ruling, or charge in effect
preventing consummation of any of the transactions contemplated by this Agreement;

(v) Buyer shall have delivered to Seller a certificate to the effect that each of the
conditions specified above in §6(b)(i)–(iii) is satisfied in all respects;

(vi) Seller and Buyer shall have received all authorizations, consents, and approvals of
governments and governmental agencies referred to in §3(c) and §4(c) above; and

(vii) All actions to be taken by Buyer in connection with consummation of the transactions
contemplated hereby and all certificates, opinions, instruments, and other documents required to
effect the transactions contemplated hereby will be reasonably satisfactory in form and substance
to Seller.

Seller may waive any condition specified in this §6(b) if it executes a writing so stating at or
prior to the Closing.

§7. Termination.

(a) Termination of Agreement. Certain of the Parties may terminate this Agreement as provided
below:

(i) Buyer and Seller may terminate this Agreement by mutual written consent at any time prior
to the Closing;

(ii) Buyer may terminate this Agreement by giving written notice to Seller at any time prior
to the Closing (A) in the event Seller has breached any representation, warranty, or covenant
contained in this Agreement in any material respect, Buyer has notified Seller of the breach, and
the breach has continued without cure for a period of 30 days after the notice of breach or (B) if
the Closing shall not have occurred on or before October 31, 2011, by reason of the failure of any
condition precedent under §6(a) hereof (unless the failure results primarily from Buyer itself
breaching any representation, warranty, or covenant contained in this Agreement); and

(iii) Seller may terminate this Agreement by giving written notice to Buyer at any time prior
to the Closing (A) in the event Buyer has breached any material representation, warranty, or
covenant contained in this Agreement in any material respect, Seller has notified Buyer of the
breach, and the breach has continued without cure for a period of 30 days after the notice of
breach or (B) if the Closing shall not have occurred on or before October 31, 2011, by reason of
the failure of any condition precedent under §6(b) hereof (unless the failure results primarily
from Seller itself breaching any representation, warranty, or covenant contained in this
Agreement).

(b) Effect of Termination.  If any Party terminates this Agreement pursuant to
§7(a) above, all rights and obligations of the Parties hereunder shall terminate without any
liability of any Party to any other Party (except for any liability of any Party then in breach);
provided, however, that the confidentiality provisions contained in §5(d) above shall survive
termination.

§8. Survival and Indemnification

(a) Survival. All covenants and agreements contained in this Agreement or in any agreement or
other document delivered pursuant hereto shall be deemed to be material and to have been relied
upon by the parties hereto and shall survive the Closing and be enforceable until the covenant or
agreement has been fully performed. The representations and/or warranties contained in this
Agreement or in any agreement or other document delivered pursuant hereto shall be deemed to be
material and to have been relied upon by the parties hereto and shall survive the Closing for a
period of six months after the Closing Date and thereafter shall be of no force or effect;
provided, however, the representations and warranties set forth in §3(a), §3(b),
§3(e),§3(j), §3(l), §3(p) and §3(q) shall survive indefinitely; provided, further,
that any claims of indemnification first asserted within the survival period shall survive until
resolved. The representations and warranties set forth in this Agreement or in any agreement or
other document delivered pursuant hereto shall not be affected by any investigation, verification
or examination by any party hereto or by anyone on behalf of any such party.

(b) Indemnification.

(1) Buyer shall indemnify and hold harmless Seller, from and against any and all loss,
diminution in value, damage (including incidental, special, punitive and consequential damages),
cost, expense (including court costs and attorneys’ fees and expenses and costs of investigation),
suit, action, claim, deficiency, liability or obligation caused by, arising from or related to (i)
any misrepresentation, breach of warranty or failure to fulfill any covenant or agreement of Buyer
contained herein or in any agreement or other document delivered pursuant hereto, and (ii) any and
all claims of third parties made based upon facts alleged that, if true, would have constituted
such a misrepresentation, breach or failure.

(2) Seller shall indemnify and hold harmless Buyer, from and against any and all loss,
diminution in value, damage (including incidental, special, punitive and consequential damages),
cost, expense (including court costs and attorneys’ fees and expenses and costs of investigation),
suit, action, claim, deficiency, liability or obligation caused by, arising from or related to (i)
any misrepresentation, breach of warranty or failure to fulfill any covenant or agreement of Seller
contained herein or in any agreement or other document delivered pursuant hereto, (ii) any and all
claims of third parties made based upon facts alleged that, if true, would constitute such a
misrepresentation, breach or failure, (iii) any and all claims of employees of the Business to the
extent related to the period prior to Closing or otherwise related to the acts of Seller; and (iv)
any liability or obligation of Seller or its Affiliates not assumed by Buyer pursuant to the
express terms hereof and regardless of whether any liability or obligation is imposed upon Buyer by
any applicable law.

(3) The party seeking indemnification shall give written notice to the indemnifying party of
the facts and circumstances giving rise to any claim for indemnification (the “Notice”). All
rights contained in this Article are cumulative and are in addition to all other rights and
remedies which are otherwise available, pursuant to the terms of this Agreement or applicable law.
All indemnification rights shall be deemed to apply in favor of the indemnified party’s officers,
directors, representatives, subsidiaries, affiliates, successors and assigns. Each party shall
cooperate with the other (with reimbursement only for out of pocket expenses) in connection with
any claims asserted by third parties after Closing. Any indemnification payments hereunder shall
bear interest from the date of the Notice at a rate of ten percent (10%) per annum until paid.

(c) Set Off. In addition to any other remedy it may have at law or in equity, Buyer shall be
entitled to set off the amount of any claims it may have hereunder against any amount payable by
Buyer or its affiliates to Seller or the Stockholders after the Closing. In the event Buyer elects
to exercise its set off rights with respect to the Indemnification Escrow or otherwise, Buyer shall
promptly provide Seller with a written statement providing full details of the nature and amount of
Buyer’s claim and all information supporting such claim (“Buyer’s Notice of Set Off”).

(d) Limitations. Notwithstanding the foregoing, no claim by Buyer for any breach of
representation or warranty by Seller (“Buyer Damages”) or by the Seller for any breach of
representation or warranty by Buyer (“Seller Damages”) shall be asserted by Buyer or the Seller,
respectively, until the aggregate of all such Buyer or Seller Damages, respectively exceeds the sum
of $45,000 (the “Basket”), in which case the party entitled to indemnification shall be entitled to
the full amount of Buyer Damages or Seller Damages, as the case may be from dollar one. The
Parties shall make appropriate adjustments for actual cash tax benefits received in the year in
which such Damages occurred and insurance payments received in determining Damages for purposes of
this Section 8. The amount of Buyer Damages recoverable by Buyer and the amount of Seller Damages
recoverable by the Sellers shall not exceed the Indemnification Escrow Amount in the aggregate,
respectively. The limitations on recovery of Buyer Damages and Seller Damages herein shall not
apply in the case of (i) fraud or any intentional misrepresentation, (ii) Buyer Damages arising
from or related to the representations and warranties set forth in §3(a), §3(b), §3(e),§3(j),
§3(l), §3(p) and §3(q) or Seller Damages arising from or related to the representations and
warranties set forth in §4(a) or §4(b), (iii) any breach of any covenant or agreement, or (iv) the
Excluded Liabilities or the Assumed Liabilities and Obligations.

(e) Indemnification Escrow Amount. Effective on the Closing Date, accounts receivable
totaling $250,000 that are collectible within sixty (60) days for the Business shall be collected
and maintained in a separate bank account that shall be transferred to Buyer as of Closing and
Seller shall have no access to such account. In the event the accounts receivable balance on the
Closing Date is less than $250,000, Seller shall deposit cash into such account equal to the
difference of $250,000 and the amount of the accounts receivable on the Closing Date (“Escrow
Indemnification Amount”). If Buyer asserts any claims for Buyer Damages as set forth in this §8,
then the amount of such Buyer Damages may be deducted from the bank account set forth in this
§8(e). After deducting the amount of any claim that has been asserted by Buyer pursuant to §8, the
remaining amount in this account six months after the Closing Date shall promptly be transferred to
Seller via wire transfer in immediately available funds.

(f) Dispute Resolution. In the event Buyer exercises its rights of set off, whether with
respect to the Indemnification Escrow or otherwise, Seller shall have the right to dispute such
action on the part of Buyer. by giving written notice to Buyer that a dispute exists, and setting
forth the Seller’s position with respect to the information contained in Buyer’s Notice of Set Off
and any resolution proposed by the Seller (“Seller’s Notice of Dispute”). Upon the delivery of any
such notice, each of the Buyer and Seller will appoint a designated representative to meet in
person as soon as possible, but in no event more than thirty (30) days after the delivery of
Seller’s Notice of Dispute, to discuss the dispute and to attempt to resolve such dispute in an
amicable fashion.

(g) Mediation. If the Parties do not settle the relevant dispute or disagreement within
thirty (30) days of the first meeting of designated representatives described in Section 8(f),
either Party may provide the other Party with a notice of mediation not later than ninety (90) days
after such first meeting. After delivery of that notice, the Parties will attempt in good faith to
settle the matter by mediation administered by the American Arbitration Association under its
Commercial Mediation Procedures before resorting to litigation, or some other dispute resolution
procedure.

(h) Judicial Resolution. No formal proceedings for the judicial resolution of such dispute,
except for the seeking of temporary restraining orders or injunctions, may begin prior to
forty-five (45) days after the delivery of any mediation notice delivered pursuant to Section 8(g).

§9. Miscellaneous.

(a) Press Releases and Public Announcements. No Party shall issue any press release or make
any public announcement relating to the subject matter of this Agreement prior to the Closing
without the prior written approval of the other Party; provided, however, that any Party may make
any public disclosure it believes in good faith is required by applicable law or any listing or
trading agreement concerning its publicly traded securities (in which case the disclosing Party
will use its reasonable best efforts to advise the other Party prior to making the disclosure).

(b) No Third-Party Beneficiaries. Except as specifically provided herein, this Agreement shall
not confer any rights or remedies upon any Person other than the Parties and their respective
successors and permitted assigns.

(c) Entire Agreement. This Agreement (including the documents referred to herein) constitutes
the entire agreement between the Parties and supersedes any prior understandings, agreements, or
representations by or between the Parties, written or oral, to the extent they relate in any way to
the subject matter hereof.

(d) Succession and Assignment. This Agreement shall be binding upon and inure to the benefit
of the Parties named herein and their respective successors and permitted assigns. No Party may
assign either this Agreement or any of its rights, interests, or obligations hereunder without the
prior written approval of the other Party provided, however, that Buyer may (i) assign any or all
of its rights and interests hereunder to one or more of its Affiliates and (ii) designate one or
more of its Affiliates to perform its obligations hereunder (in any or all of which cases Buyer
nonetheless shall remain responsible for the performance of all of its obligations hereunder).

(e) Counterparts. This Agreement may be executed in one or more counterparts (including by
means of facsimile), each of which shall be deemed an original but all of which together will
constitute one and the same instrument.

(f) Headings. The section headings contained in this Agreement are inserted for convenience
only and shall not affect in any way the meaning or interpretation of this Agreement.

(g) Notices. All notices, requests, demands, claims, and other communications hereunder shall
be in writing. Any notice, request, demand, claim, or other communication hereunder shall be deemed
duly given (i) when delivered personally to the recipient, (ii) 1 business day after being sent to
the recipient by reputable overnight courier service (charges prepaid), (iii) 1 business day after
being sent to the recipient by facsimile transmission or electronic mail, or (iv) 4 business days
after being mailed to the recipient by certified or registered mail, return receipt requested and
postage prepaid, and addressed to the intended recipient as set forth below:

	 	 	 
	If to Seller:

	 	Copy to:
	Class.com, Inc.

1200 Libra Drive, Suite 102

Lincoln, NE 68512

Attn: President

	 	John H. Heen, Esq.

1033 O Street, Suite 608

Lincoln, NE 68508

	If to Buyer:

	 	Copy to:
	Cambium Education, Inc.

17855 N. Dallas Parkway, Ste. 400

Dallas, TX 75287

Attn: Chief Financial Officer

	 	Cambium Education, Inc.

17855 N. Dallas Parkway, Ste. 400

Dallas, TX 75287

Attn: General Counsel

Any Party may change the address to which notices, requests, demands, claims, and other
communications hereunder are to be delivered by giving the other Party notice in the manner herein
set forth.

(h) Governing Law. This Agreement shall be governed by and construed in accordance with the
domestic laws of the State of Nevada without giving effect to any choice or conflict of law
provision or rule (whether of the State of Nevada or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Nevada.

(i) Amendments and Waivers. No amendment of any provision of this Agreement shall be valid
unless the same shall be in writing and signed by Buyer and Seller. Seller may consent to any such
amendment at any time prior to the Closing with the prior authorization of its board of directors;
provided, however, that any amendment effected after Seller Stockholders have approved this
Agreement will be subject to the restrictions contained in the Nevada General Corporation Law. No
waiver by any Party of any provision of this Agreement or any default, misrepresentation, or breach
of warranty or covenant hereunder, whether intentional or not, shall be valid unless the same shall
be in writing and signed by the Parties making such a waiver, nor shall such waiver be deemed to
extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant
hereunder or affect in any way any rights arising by virtue of any prior or subsequent such
occurrence.

(j) Severability. Any term or provision of this Agreement that is invalid or unenforceable in
any situation in any jurisdiction shall not affect the validity or enforceability of the remaining
terms and provisions hereof or the validity or enforceability of the offending term or provision in
any other situation or in any other jurisdiction.

(k) Expenses. Buyer and Seller will bear their own costs and expenses (including legal fees
and expenses) incurred in connection with this Agreement and the transactions contemplated hereby,
provided however, all transfer, documentary, sales, use, stamp, registration and other such Taxes,
and all conveyance fees, recording charges and other fees and charges (including any penalties and
interest) incurred in connection with the consummation of the transactions contemplated by this
Agreement shall be paid by Buyer when due.

(l) Construction. The Parties have participated jointly in the negotiation and drafting of
this Agreement. In the event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of
proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the
provisions of this Agreement. Any reference to any federal, state, local, or non-U.S. statute or
law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the
context requires otherwise. The word ‘‘including’’ shall mean including without limitation.

(m) Incorporation of Exhibits and Schedules. The Exhibits and Schedules identified in this
Agreement are incorporated herein by reference and made a part hereof.

(n) Tax Matters. Buyer and Seller agree to utilize the alternate procedure set forth in
Revenue Procedure 2004-53 with respect to wage reporting.

(o) Bulk Transfer Laws. Buyer acknowledges that Seller will not comply with the provisions of
any bulk transfer laws of any jurisdiction in connection with the transactions contemplated by this
Agreement.

* * * * *

[Signature Page to Follow]

3

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

CAMBIUM EDUCATION, INC.

By:       /s/ David Cappellucci

Title:        President

CLASS.COM, INC.

By:       /s/ Dean Wildman 

Title:       President and CEO

4teco_ex101.htm

EXHIBIT 10.1

 

  

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