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  REGISTRATION RIGHTS AGREEMENT         

    REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of December 8, 2000, by and among
CLICK2LEARN.COM, INC., a Delaware corporation (the "Company"), and each of the entities whose names appear on the signature pages hereof. Such
entities are each referred to herein as a "Purchaser" and collectively as the "Purchasers". 

    The
Company has agreed, on the terms and subject to the conditions set forth in the Securities Purchase Agreement of even date herewith (the "Securities
Purchase Agreement"), to issue and sell to each Purchaser (i) shares (the "Shares") of the Company's common stock, par
value $.01 per share (the "Common Stock"), (ii) a warrant in the form attached to the Securities Purchase Agreement as  Exhibit A (collectively,
the "Series A Warrants") and (iii) a warrant in the form
attached to the Securities Purchase Agreement as Exhibit B (collectively, the "Series B
Warrants"). The Series A Warrants and the Series B Warrants are sometimes collectively referred to herein as the
"Warrants". The Warrants are exercisable into shares of Common Stock (the "Warrant Shares") in
accordance with their respective terms. 

    In
order to induce each Purchaser to enter into the Securities Purchase Agreement, the Company has agreed to provide certain registration rights under the Securities Act of 1933, as
amended (the "Securities Act"), and under applicable state securities laws. Capitalized terms used herein and not otherwise defined shall have the
respective meanings set forth in the Securities Purchase Agreement. 

    In
consideration of each Purchaser entering into the Securities Purchase Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows: 

1.  DEFINITIONS.  

    For
purposes of this Agreement, the following terms shall have the meanings specified: 

(a)
"Blackout Period" means such day or days, not to exceed an aggregate of thirty (30) days during any period of twelve (12) consecutive months, with respect to which the Board of
Directors of the Company determines reasonably and in good faith (A) that an amendment or supplement to the Registration Statement (as defined below) or prospectus contained therein is
necessary, in light of subsequent
events, in order to correct a material misstatement made therein or to include information the absence of which would render the Registration Statement or such prospectus materially misleading and
(B) that the filing of such amendment or supplement would result in the disclosure of information which the Company has a bona fide business
purpose for preserving as confidential; provided that the Company shall be entitled to impose no more than two (2) Blackout Periods during any period of twelve (12) consecutive months; 

(b)
"Business Day" and "Closing Date" shall have the respective meanings specified in the Securities
Purchase Agreement; 

(c)
"Holder" means any person owning or having the right to acquire, through exercise of the Warrants, Registrable Securities, including initially each
Purchaser and thereafter any permitted assignee thereof; 

(d)
"Effective Date" means the date on which the Registration Statement is declared effective by the Securities and Exchange Commission (the
"Commission"). 

(e)
"Filing Deadline" means the ninetieth (90th) day following the Closing Date; provided, however, that
if such ninetieth day is not a Business Day, the Filing Deadline shall be the Business Day immediately following such ninetieth day; 

(f)
"Register", "registered" and "registration" refer to
a registration effected by preparing and filing a registration statement or statements ("Registration Statement") in compliance with the Securities Act
and pursuant to Rule 415 under the Securities Act or any successor rule 

providing for the offering of securities on a continuous or delayed basis ("Rule 415"), and the declaration or ordering of effectiveness of the
Registration Statement by the Commission; 

(g)
"Registration Deadline" means the ninetieth (90th) day following the earlier to occur of (i) the date on which the Registration Statement is
filed with the Commission and (ii) the Filing Deadline; and 

(h)
"Registrable Securities" means the Shares and the Warrant Shares, and any other shares of Common Stock or other securities issuable pursuant to the
terms of the Warrants, and any shares of capital stock issued or issuable from time to time (with any adjustments) in replacement of, in exchange for or otherwise in respect of the Shares or the
Warrant Shares. 

2.  MANDATORY REGISTRATION.  

    (a) On
or before the Filing Deadline, the Company shall prepare and file with the Commission a Registration Statement on Form S-3 as a "shelf"
registration statement under Rule 415 covering the resale of the number of shares of Registrable Securities equal to the Reserved Amount (as defined in the Securities Purchase Agreement). The
Registration Statement shall state, to the extent permitted by Rule 416 under the Securities Act, that it also covers such indeterminate number of shares of Common Stock as may be required to
effect exercise of the Warrants in order to prevent dilution resulting from stock splits, stock dividends or similar events. 

    (b) The
Company shall use its best efforts to cause the Registration Statement to become effective as soon as practicable following the filing thereof, but in no event
later than the Registration Deadline. The Company shall respond promptly to any and all comments made by the staff of the Commission on the Registration Statement (but in no event later than fifteen
(15) Business Days following the Company's receipt thereof), and shall submit to the Commission, within three (3) Business Days after the Company learns that no review of the
Registration Statement will be made by the staff of the Commission or that the staff of the Commission has no further comments on the Registration Statement, as the case may be, a request for
acceleration of the effectiveness of the Registration Statement to a time and date not later than forty eight (48) hours after the submission of such request. The Company shall maintain the
effectiveness of the Registration Statement until the earlier to occur of (i) the date on which all of the Registrable Securities have been sold pursuant to the Registration Statement and
(ii) the date on which all of the remaining Registrable Securities (in the reasonable opinion of counsel to the Holders) may be immediately sold to the public without registration and without
regard to the amount of Registrable Securities which may be sold by a Holder thereof at a given time (the period beginning on the Registration Deadline and ending on the earlier of such dates being
referred to herein as the "Registration Period"). 

    (c) If
(A) the Registration Statement is not filed on or before the Filing Deadline or declared effective by the Commission on or before the thirtieth
(30th) day following the Registration Deadline, (B) after the Registration Statement has been declared effective by the Commission, sales of Registrable Securities cannot be made
by a Holder under the Registration Statement for any reason not within the exclusive control of such Holder (other than during a Blackout Period or with respect to such Registrable
Securities as are then freely saleable pursuant to Rule 144(k) under the Securities Act), or (C) the Common Stock is not listed and freely tradeable on the Nasdaq National Market, the
Nasdaq SmallCap Market, the American Stock Exchange or the New York Stock Exchange (each of (A), (B) and (C) being referred to herein as a "Default
Event"), the Company shall pay to each Holder an amount equal to the lesser of (x) one and one half percent (1.5%) per thirty calendar day period (prorated for any
period of less than thirty calendar days) and (y) the highest rate permitted by applicable law, times the aggregate Market Price of the Shares
and Warrant Shares then held by such Holder (assuming for such purpose that such Warrants have been exercised into the maximum number of Warrant Shares issuable pursuant to such Warrants taken as a
whole, without regard to any 

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restriction or limitation on such exercise), accruing daily and compounded monthly, from the date on which a Default Event first occurs until the date on which such Default Event and any and all other
Default Events have been cured and are no longer continuing. The amounts paid or payable by the Company hereunder shall be in addition to any other remedies available to each Holder at law or in
equity or pursuant to the terms hereof or the Securities Purchase Agreement, or otherwise. Payments of such amounts pursuant hereto shall be made in immediately available funds within five
(5) Business Days after the end of each period that gives rise to such obligation, provided that, if any such period extends for more than thirty (30) days, payments shall be made at the
end of each thirty-day period. 

3.  PIGGYBACK REGISTRATION.  

    If at any time prior to the expiration of the Registration Period, (i) the Company proposes to register shares of Common Stock under the Securities Act
in connection with the public offering of such shares for cash (other than a registration relating solely to the sale of securities to participants in a Company stock plan or employee stock award or a
registration on Form S-4 under the Securities Act or any successor or similar form registering stock issuable upon a reclassification, a business combination involving an exchange
of securities or an exchange offer for securities of the issuer or another entity, or a registration statement on Form S-3 covering the resale of securities issued in connection
with a corporate acquisition) (a "Proposed Registration") and (ii) a Registration Statement covering the sale of all of the Registrable
Securities then issued or issuable (assuming for such purpose that such Warrants have been exercised into the maximum number of Warrant Shares issuable pursuant to such Warrants taken as a whole,
without regard to any restriction or limitation on such exercise) is not then effective and available for sales thereof by the Holders, the Company shall, at such time, promptly give each Holder
written notice of such Proposed Registration. Each Holder shall have twenty (20) days from its receipt of such notice to deliver to the Company a written request specifying the amount of
Registrable Securities that such Holder intends to sell and such Holder's intended method of distribution. Upon receipt of such request, the Company shall use its best efforts to cause all Registrable
Securities which the Company has been requested to register to be registered under the Securities Act to the extent necessary to permit their sale or other disposition in accordance with the intended
methods of distribution specified in the request of such Holder; provided, however, that the Company shall have the
right to postpone or withdraw any registration effected pursuant to this Section 3 without obligation to the Holder. If, in connection with any underwritten public offering for the account of
the Company or for shareholders of the Company that have contractual rights to require the Company to register shares of Common Stock, the managing underwriter(s) thereof shall impose a limitation on
the number of shares of Common Stock which may be included in the Registration Statement because, in the judgment of such underwriter(s), marketing or other factors dictate such limitation is
necessary to facilitate such offering, then the Company shall be obligated to include in such Registration Statement only such limited portion of the Registrable Securities with respect to which each
Holder has requested inclusion hereunder as such underwriter(s) shall permit. Any such exclusion of Registrable Securities shall be made pro rata among the Holders seeking to include Registrable
Securities in the Registration Statement, in proportion to the number of Registrable Securities sought to be included by such Holders; provided, however, that the Company shall not exclude any
Registrable Securities unless the Company has first excluded all outstanding securities, the holders of which are not entitled to inclusion of such securities in such Registration Statement or are not
entitled to pro rata inclusion with the Registrable Securities; and provided, further, that, after giving effect to the immediately preceding proviso, any exclusion of Registrable Securities shall be
made pro rata with holders of other securities having the right to include such securities in the Registration Statement. 

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4.  OBLIGATIONS OF THE COMPANY.  

    In addition to performing its obligations hereunder, including without limitation those pursuant to paragraphs 2(a) and 2(b) above, the Company shall: 

    (a) prepare
and file with the Commission such amendments and supplements to the Registration Statement and the prospectus used in connection with the Registration
Statement as may be necessary to comply with the provisions of the Securities Act or to maintain the effectiveness of the Registration Statement during the Registration Period, or as may be reasonably
requested within a reasonable time prior to any proposed sale by a Holder in order to incorporate information concerning such Holder or such Holder's intended method of distribution; 

    (b) secure
the listing of all Registrable Securities on the Nasdaq National Market prior to the date on which the Registration Statement relating to such Registrable
Securities becomes effective; 

    (c) furnish
to each Holder such number of copies of the prospectus included in such Registration Statement, including a preliminary prospectus, if any, in conformity
with the requirements of the Securities Act, and such other documents as such Holder may reasonably request in order to facilitate the disposition of such Holder's Registrable Securities; 

    (d) use
all commercially reasonable efforts to register or qualify the Registrable Securities under the securities or "blue sky" laws of such jurisdictions within the
United States as shall be reasonably requested from time to time by a Holder, and do any and all other acts or things which may be necessary or advisable to enable such Holder to consummate the public
sale or other disposition of the Registrable Securities in such jurisdictions; provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do
business or to file a general consent to service of process in any such jurisdiction; 

    (e) in
the event of an underwritten public offering of the Registrable Securities, enter into (together with all Holders proposing to distribute Registrable Securities
through such underwriting) and perform its obligations under an underwriting agreement, in usual and customary form reasonably acceptable to the Company, with the managing underwriter of such
offering; 

    (f)  notify
each Holder immediately upon the occurrence of any event as a result of which the prospectus included in such Registration Statement, as then in effect,
contains an untrue statement of material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances
then existing, and as promptly as practicable, prepare, file and furnish to each Holder a reasonable number of copies of a supplement or an amendment to such prospectus as may be necessary so that
such prospectus does not contain an untrue statement of material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light
of the circumstances then existing; 

    (g) use
all commercially reasonable efforts to prevent the issuance of any stop order or other order suspending the effectiveness of such Registration Statement and, if
such an order is issued, to obtain the withdrawal thereof at the earliest possible time and to notify each Holder of the issuance of such order and the resolution thereof; 

    (h) furnish
to each Holder, on the date that such Registration Statement becomes effective, (x) a letter, dated such date, of outside counsel representing the
Company (and reasonably acceptable to such Holder) addressed to such Holder, confirming the effectiveness of the Registration Statement and, to the knowledge of such counsel, the absence of any stop
order, and (y) in the case of an underwritten offering, (A) an opinion addressed to the underwriters, dated such date, of such outside counsel, in such
form and substance as is required to be given to such underwriters, and (B) a letter addressed to such underwriters, dated such date, from the 

4

Company's independent certified public accountants, in such form and substance as is required to be given by the Company's independent certified public accountants to such underwriters; 

    (i)  provide
each Holder and its representatives (subject to, upon the request of the Company with respect to any such representative, the execution of a
confidentiality agreement reasonably satisfactory to the Company by such representative) the opportunity to conduct a reasonable inquiry of the Company's financial and other records during normal
business hours and make available its officers, directors and employees for questions regarding information which such Holder may reasonably request in order to fulfill any due diligence obligation on
its part; 

    (j)  permit
counsel retained for such purpose by each Holder to review the Registration Statement and all amendments and supplements thereto, and any comments made by
the staff of the Commission and the Company's responses thereto, within a reasonable period of time prior to the filing thereof with the Commission (or, in the case of comments made by the staff of
the Commission, within a reasonable period of time following the receipt thereof by the Company) and amend such materials in accordance with the comments of such counsel;  provided, however, that if such
counsel has not delivered comments concerning such materials to the Company on or before the second (2d) Business Day
following it receipt thereof, the Company may deem the Holder represented by such counsel to have waived its right of review and comment hereunder; 

    (k) refrain
from allowing or agreeing to allow any person other than a Holder to include securities for sale pursuant to any Registration Statement(s) required to be
filed hereunder; and 

    (l)  provide
written notice to each Holder (i) immediately upon the imposition of a Blackout Period and (ii) immediately upon the cessation of any such
Blackout Period. The Company agrees that it will not disclose any material, non-public information to any Holder regarding the reasons for imposing a Blackout Period, except to a Holder
who specifically requests in writing such information and who agrees to maintain the confidentiality of such information until it is made public other than by or through such Holder. 

5.  OBLIGATIONS OF EACH HOLDER.  

    In connection with the registration of the Registrable Securities pursuant to the Registration Statement, each Holder shall: 

    (a) furnish
to the Company in writing such information regarding itself and the intended method of disposition of Registrable Securities as the Company shall reasonably
request in order to effect the registration thereof; 

    (b) upon
receipt of any notice from the Company of the happening of any event of the kind described in paragraphs 4(f), 4(g) or 4(l)(ii), immediately discontinue any
sale or other disposition of Registrable Securities pursuant to the Registration Statement until the filing of an amendment or supplement as described in paragraph 4(f), withdrawal of the stop
order referred to in paragraph 4(g) or cessation of the Blackout Period referred to in paragraph 4(l)(ii); 

    (c) in
the event of an underwritten offering of the Registrable Securities, enter into a customary and reasonable underwriting agreement and execute such other
documents as the managing underwriter for such offering may reasonably request; 

    (d) to
the extent required by applicable law, deliver a prospectus to the purchaser of Registrable Securities; 

    (e) notify
the Company when it has sold all of the Registrable Securities theretofore held by it; 

5

    (f)  promptly notify the Company in the event that any information supplied by such Holder in writing for inclusion in the Registration Statement or related prospectus
is untrue or omits to state a material fact required to be stated therein or necessary to make such information not misleading in light of the circumstances then existing; and 

    (g) comply
in all material respects with the provisions of the Securities Exchange Act of 1934, as amended (the "1934 Act"), and the rules thereunder relating to stock
manipulation, including without limitation Regulation M, and refrain from engaging in any transaction that would result in a material violation of such provisions. 

6.  INDEMNIFICATION.  

    In the event that any Registrable Securities are included in a Registration Statement under this Agreement: 

    (a) To
the extent permitted by law, the Company shall indemnify and hold harmless each Holder, the officers, directors, employees and agents of such Holder, and each
person, if any, who controls such Holder within the meaning of the Securities Act or the 1934 Act, against any losses, claims, damages, liabilities or reasonable out-of-pocket
expenses (whether joint or several) (collectively, including legal or other expenses reasonably incurred in connection with investigating or defending same,
"Losses"), insofar as any such Losses arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact
contained in such Registration Statement, including any preliminary prospectus, if any, or final prospectus contained therein or any amendments or supplements thereto, or (ii) the omission or
alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
Subject to the provisions of paragraph 6(c) below, the Company will reimburse such Holder, and each such officer, director, employee, agent or controlling person for any legal or other expenses
as reasonably incurred by any such entity or person in connection with investigating or defending any Loss; provided, however, that the foregoing indemnity shall not apply to amounts paid in
settlement of any Loss if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be obligated to indemnify any person
for any Loss to the extent that such Loss arises out of or is based upon and in conformity with written information furnished by such person expressly for use in such Registration Statement; and
provided, further, that the Company shall not be required to indemnify any person to the extent that any Loss results from such person selling Registrable Securities (i) to a person to whom
there was not sent or given, at or prior to the written confirmation of the sale of such shares, a copy of the prospectus, as most recently amended or supplemented, if the Company has previously
furnished or made available copies thereof or (ii) during any period following written notice by the Company to such Holder of an event described in paragraph 4(f), 4(g) or 4(l)(ii). 

    (b) To
the extent permitted by law, each Holder, acting severally and not jointly, shall indemnify and hold harmless the Company, the officers, directors, employees,
agents and representatives of the Company, and each person, if any, who controls the Company within the meaning of the Securities Act
or the 1934 Act, against any Losses to the extent (and only to the extent) that any such Losses arise out of or are based upon and in conformity with written information furnished by such Holder
expressly for use in such Registration Statement; and such Holder will reimburse any legal or other expenses as reasonably incurred by the Company and any such officer, director, employee, agent,
representative, or controlling person, in connection with investigating or defending any such Loss; provided, however, that the foregoing indemnity shall not apply to amounts paid in settlement of any
such Loss if such settlement is effected without the consent of such Holder, which consent shall not be unreasonably withheld; provided, that, in no 

6

event shall any indemnity under this paragraph 6(b) exceed the net proceeds resulting from the sale of the Registrable Securities sold by such Holder under the Registration Statement. 

    (c) Promptly
after receipt by an indemnified party under this Section 6 of notice of the commencement of any action (including any governmental action), such
indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party a written notice of the commencement
thereof and the indemnifying party shall have the right to participate in and to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified
party shall have the right to retain its own counsel, with the reasonably incurred fees and expenses of one such counsel to be paid by the indemnifying party, if representation of such indemnified
party by the counsel retained by the indemnifying party would be inappropriate under applicable standards of professional conduct due to actual or potential conflicting interests between such
indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of
any such action, to the extent prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 6 with
respect to such action, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this
Section 6 or with respect to any other action unless the indemnifying party is materially prejudiced as a result of not receiving such notice. 

    (d) In
the event that the indemnity provided in paragraph 6(a) or 6(b) is unavailable or insufficient to hold harmless an indemnified party for any reason, the
Company and each Holder agree, severally and not jointly, to contribute to the aggregate Losses to which the Company or such Holder may be subject in such proportion as is appropriate to reflect the
relative fault of the Company and such Holder in connection with the statements or omissions which resulted in such Losses; provided, however, that in no case shall such Holder be responsible for any
amount in excess of the proceeds resulting from the sale of the Registrable Securities sold by it under the Registration Statement. Relative fault shall be determined by reference to whether any
alleged untrue statement or omission relates to information provided by the Company or by such Holder. The Company and each Holder agree that it would not be just and equitable if contribution were
determined by pro rata allocation or any other method of
allocation which does not take account of the equitable considerations referred to above. Notwithstanding the provisions of this paragraph 6(d), no person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to indemnification or contribution from any person who is not guilty of fraudulent misrepresentation. For purposes
of this Section 6, each person who controls a Holder within the meaning of either the Securities Act or the 1934 Act and each officer, director, employee or agent of such Holder shall have the
same rights to contribution as such Holder, and each person who controls the Company within the meaning of either the Securities Act or the 1934 Act and each officer, director, employee or agent of
the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph 6(d). 

    (e) The
obligations of the Company and each Holder under this Section 6 shall survive the exercise of the Warrants in full and the completion of any offering of
Registrable Securities pursuant to a Registration Statement under this Agreement, or otherwise. 

7.  REPORTS.  

    With a view to making available to each Holder the benefits of Rule 144 under the Securities Act
("Rule 144") and any other similar rule or regulation of the Commission that may at any time permit 

7

such Holder to sell securities of the Company to the public without registration, the Company agrees to: 

    (a) make
and keep public information available, as those terms are understood and defined in Rule 144; 

    (b) file
with the Commission in a timely manner all reports and other documents required to be filed by the Company under the Securities Act and the 1934 Act; and 

    (c) furnish
to such Holder, so long as such Holder owns any Registrable Securities, forthwith upon written request (i) a written statement by the Company, if
true, that it has complied with the reporting requirements of Rule 144, and the 1934 Act, (ii) to the extent not publicly available through the Commission's EDGAR database, a copy of the
most recent annual or quarterly report of the Company
and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested in availing such Holder of any rule or regulation of the Commission
which permits the selling of any such securities without registration. 

8.  MISCELLANEOUS.  

    (a) Expenses of Registration. All expenses, other than underwriting discounts and commissions and fees and expenses of
counsel to the Holders, incurred in connection with the registrations, filings or qualifications described herein, including (without limitation) all registration, filing and qualification fees,
printers' and accounting fees, the fees and disbursements of counsel for the Company, and the fees and disbursements incurred in connection with the opinion and letter described in
paragraph 4(h) hereof, shall be borne by the Company. 

    (b) Amendment; Waiver. Any provision of this Agreement may be amended only pursuant to a written instrument executed by
the Company and each Holder. Any waiver of the provisions of this Agreement may be made only pursuant to a written instrument executed by the party against whom enforcement is sought. Any amendment or
waiver effected in accordance with this paragraph shall be binding upon each Holder, each future Holder, and the Company. The failure of any party to exercise any right or remedy under this Agreement
or otherwise, or the delay by any party in exercising such right or remedy, shall not operate as a waiver thereof. 

    (c) Notices. Any notice, demand or request required or permitted to be given by any party to any other party pursuant to
the terms of this Agreement shall be in writing and shall be deemed given (i) when delivered personally or by verifiable facsimile transmission (with an original to follow) on or before
6:00 p.m., pacific time, on a Business Day or, if such day is not a Business Day, on the next succeeding Business Day, (ii) on the next Business Day after timely delivery to a
nationally-recognized overnight courier and (iii) on the day actually received after deposit in the U.S. mail (certified or registered mail, return receipt requested, postage prepaid),
addressed to the parties as follows: 

 If to the Company:

click21earn.com, inc.

110 110th Avenue NE

Bellevue, WA 98008

Attn: General Counsel

Tel: 425-637-5829

Fax: 425-637-1540 

8

with a copy to:

Scott
Gelband, Esq.

Perkins Coie LLP

505 Fifth Avenue South, Suite 620

Seattle, WA 98104

Tel: 206-583-8888

Fax: 206-583-8500 

and
if to any Holder, to such address as shall be designated by such Holder in writing to the Company. 

    (d) Termination. This Agreement shall terminate on the earlier to occur of (a) the end of the Registration Period
and (b) the date on which all of the Registrable Securities have been publicly distributed; but any such termination shall be without prejudice to (i) the parties' rights and obligations
arising from breaches of this Agreement occurring prior to such termination and (ii) the indemnification and contribution obligations under this Agreement. 

    (e) Assignment. Upon the transfer of Shares, the Warrants or Registrable Securities by a Holder, the rights of such
Holder hereunder with respect to the securities so transferred shall be assigned automatically to the transferee thereof as long as: (i) the Company is, within a reasonable period of time
following such transfer, furnished with written notice of the name and address of such transferee, (ii) the transferee agrees in writing with the Company to be bound by all of the provisions
hereof and (iii) such transfer is made in accordance with the applicable requirements of the Securities Purchase Agreement or the Warrant, as the case may be; provided,
however, that the registration rights granted in this Agreement shall not be transferred to any person or entity that receives any such security pursuant to an effective
registration statement under the Securities Act or pursuant to a transaction under Rule 144 or any successor provision thereto. 

    (f)  Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, and all of which together shall be deemed one and the same instrument. This Agreement, once executed by a party, may be delivered to any other party hereto by facsimile transmission. 

    (g) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of
Delaware without regard to the conflict of laws provisions thereof. 

    [Remainder
of Page Intentionally Left Blank] 

9

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

	CLICK2LEARN.COM, INC.	 
	 

By:	 
 	 

/s/ Kevin Oakes	 

 
	 	 	
	 
	 	 	Name: Kevin Oakes	 
	 	 	Title: President and CEO	 
	 

MARSHALL CAPITAL MANAGEMENT, INC.	 

 
	 

By:	 
 	 

/s/ Allan Weine	 

 
	 	 	
 Allan Weine, President	 

10

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EXHIBIT A  

THIS
WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAW, AND MAY NOT BE OFFERED FOR SALE, SOLD OR TRANSFERRED UNLESS A REGISTRATION STATEMENT
UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS SHALL BE EFFECTIVE WITH RESPECT THERETO, OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS IS
AVAILABLE IN CONNECTION WITH SUCH OFFER, SALE OR TRANSFER. 

	Warrant to Purchase	 	Issue Date: December  , 2000
	          Shares	 	 

  
      SERIES A WARRANT TO PURCHASE COMMON STOCK
       of
       CLICK2LEARN.COM, INC.         

    THIS CERTIFIES that            or any subsequent holder hereof (the "Holder"), has the right to
purchase from click21earn.com, inc., a Delaware corporation (the "Company"), up to            fully paid and nonassessable shares of the
Company's Common Stock, par value $.01 per share (the "Common Stock"), subject to adjustment as provided herein, at a price equal to the Exercise Price
(as defined below), at any time beginning on the date on which this Warrant is issued (the "Issue Date") and ending at 5:00 p.m., eastern time,
on the date that is the fifth (5th) anniversary of the Issue Date (the "Expiration Date"). This Warrant is issued, and all rights
hereunder shall be, subject to all of the conditions, limitations and provisions set forth herein and in the Securities Purchase Agreement, dated as of December 8, 2000, by and among the
Company and the Purchasers named therein (the "Securities Purchase Agreement"). Capitalized terms used herein and not otherwise defined shall have the
respective meanings set forth in the Securities Purchase Agreement. 

    1.  Exercise.  

    (a)  Right to Exercise; Exercise Price.  The Holder shall have the right to exercise this Warrant at any
time and from time to time during the period beginning on the Issue Date and ending on the Expiration Date as to all or any part of the shares of Common Stock covered hereby (the
"Warrant Shares"). The "Exercise Price" payable by the Holder in connection with the exercise of this
Warrant shall be equal to $14.61 (subject to adjustment as provided herein). 

    (b)  Exercise Notice.  In order to exercise this Warrant, the Holder shall send by facsimile
transmission, at any time prior to 7:00 p.m., eastern time, on the Business Day (as defined below) on which the Holder wishes to effect such exercise (the "Exercise
Date"), to the Company a copy of the notice of exercise in the form attached hereto as Exhibit A (the "Exercise Notice")
stating the number of Warrant Shares as to which such exercise applies and the calculation therefor. As used herein, "Business Day" shall mean any day
on which the New York Stock Exchange (the "NYSE") and commercial banks in the city of New York are open for business. The Holder shall thereafter
deliver to the Company the original Exercise Notice, the original Warrant and the Exercise Price. In the case of a dispute as to the calculation of the Exercise Price or the number of Warrant Shares
issuable hereunder (including without limitation the calculation of any adjustment to the Exercise Price pursuant to Section 6 below), the Company shall promptly issue to the Holder the number
of Warrant Shares that are not disputed and shall submit the disputed calculations to the Company's independent accountant within two (2) Business Days following the Exercise Date. The Company
shall cause such accountant to calculate the Exercise Price and/or the number of Warrant Shares issuable hereunder and to notify the Company and the Holder of the results in writing no later than two
Business Days following the day on which such accountant received the disputed calculations. Such accountant's calculation shall be deemed conclusive absent 

manifest error. The fees of any such accountant shall be borne by the party whose calculations were most at variance with those of such accountant. 

    (c)  Cancellation of Warrant.  This Warrant shall be canceled upon its exercise and, if this Warrant is
exercised in part, the Company shall, at the time that it delivers Warrant Shares to the Holder pursuant to such exercise as provided herein, issue a new warrant, and deliver to the Holder a
certificate representing such new warrant, with terms identical in all respects to this Warrant (except that such new warrant shall be exercisable into the number of shares of Common Stock with
respect to which this Warrant shall remain unexercised); provided, however, that the Holder shall be entitled to exercise all or any portion of such new
warrant at any time following the time at which this Warrant is exercised, regardless of whether the Company has actually issued such new warrant or delivered to the Holder a certificate therefor. 

    (d)  Expiration Upon Certain Events.  Commencing on the two-year anniversary of the Issue
Date, in the event that during any period of twenty (20) consecutive Trading Days, the Market Price of the Common Stock exceeds an amount equal to product of (i) the Exercise Price
(subject to adjustment as provided herein) and (ii) two and one-half (2.5), the Company may deliver to the Holder, as long as the Expiration Condition (as defined below) has been
satisfied, a written notice to such effect (a "Cancellation Notice") and this Warrant shall expire on the date which is five (5) Trading Days
following the business day on which such Cancellation Notice is delivered to the Holder. The term "Expiration Condition" shall mean that either
(A) the Registration Statement (as defined in the Registration Rights Agreement between the Company and the Holder) has been declared effective and is available for the resale of all of the
Warrant Shares into which this Warrant is exercisable or (B) the Warrant Shares may be sold pursuant to Rule 144(k) under the Securities Act of 1933, as amended. 

    2.  Delivery of Warrant Shares Upon Exercise.  Upon receipt of a Exercise Notice pursuant to
paragraph 1 above, the Company shall, (A) in the case of a Cashless Exercise (as defined below), no later than the close of business on the third (3rd) Business Day following the
Exercise Date set forth in such Exercise Notice, (B) in the case of a Cash Exercise (as defined below) no later than the close of business on the later to occur of (i) the third (3rd)
Business Day following the Exercise Date set forth in such Exercise Notice and (ii) such later date on which the Company shall have received payment of the Exercise Price, and (C) with
respect to Warrant Shares which are disputed as described in paragraph 1(b) above, and required to be delivered by the Company pursuant to the accountant's calculations described therein, the
close of business on the third (3rd) Business Day following the determination made pursuant to paragraph 1(b) (the "Delivery
Date"), issue and deliver or cause to be delivered to the Holder the number of Warrant Shares as shall be determined as provided herein. The Company shall effect delivery of
Warrant Shares to the Holder by, as long as the Company's designated transfer agent for the Common Stock (the "Transfer Agent") participates in the
Depository Trust Company ("DTC") Fast Automated Securities Transfer program ("FAST"), crediting the
account of the Holder or its nominee at DTC (as specified in the applicable Exercise Notice) with the number of Warrant Shares required to be delivered, no later than the close of business on such
Delivery Date. In the event that the Transfer Agent is not a participant in FAST, or if Warrant Shares are not otherwise eligible for delivery through FAST, or if the Holder so specifies in an
Exercise Notice or otherwise in writing on or before the Exercise Date, the Company shall effect delivery of Warrant Shares by delivering to the Holder or its nominee physical certificates
representing such Warrant Shares, no later than the close of business on such Delivery Date. Warrant Shares delivered to the Holder shall not contain any restrictive legend as long as the resale of
such Warrant Shares is covered by an effective Registration Statement (as defined in the Registration Rights Agreement) and such Holder represents in writing to the Company that such Warrant Shares
(i) have been or are being sold pursuant to such registration statement or pursuant to Rule 144 under the Securities Act of 1933, as amended, or 

2

(ii) may be made pursuant to Rule 144(k) under the Securities Act of 1933, as amended, or any successor rule or provision. 

    3.  Failure to Deliver Warrant Shares.  

    (a)  Exercise Default.  In the event that, as a result of any action or failure to act on the part of the
Company (including without limitation a failure by the Company to have a sufficient number of shares of Common Stock authorized and reserved for issuance pursuant to exercise of the Warrants), the
Company does not deliver to a Holder certificates representing the number of Warrant Shares specified in the applicable Exercise Notice on or before the Delivery Date therefor and such failure
continues for ten (10) Business Days (an "Exercise Default"), the Company shall pay to the Holder payments ("Exercise
Default Payments") in the amount of (i) (N/365) multiplied by (ii) the aggregate Exercise Price for the Warrant
Shares which are the subject of such Exercise Default multiplied by (iii) the lower of twenty four percent (24%) and the maximum rate permitted
by applicable law, where "N" equals the number of days elapsed between the original Delivery Date for such Warrant Shares and the date on which all of such Warrant Shares are issued and delivered to
the Holder. Amounts payable under this subparagraph 3(a) shall be paid to the Holder in immediately available funds on or before the fifth (5th) Business Day of the calendar month immediately
following the calendar month in which such amount has accrued. 

    (b)  Buy-in.  Nothing herein shall limit a Holder's right to pursue actual damages for the
Company's failure to issue and deliver Warrant Shares in connection with an exercise on the applicable Delivery Date (including, without limitation, damages relating to any purchase of shares of
Common Stock by the Holder to make delivery on a sale effected in anticipation of receiving Warrant Shares upon exercise, such damages to be in an amount equal to (A) the aggregate amount paid
by the Holder for the shares of Common Stock so purchased minus (B) the aggregate amount of net proceeds, if any, received by the Holder from the
sale of the Warrant Shares issued by the Company pursuant to such exercise), and the Holder shall have the right to pursue all remedies available to it at law or in equity (including, without
limitation, a decree of specific performance and/or injunctive relief). 

    (c)  Reduction of Exercise Price.  In the event that, as a result of any action or failure to act on the
part of the Company (including without limitation a failure by the Company to have a sufficient number of shares of Common Stock authorized and reserved for issuance pursuant to exercise of the
Warrants), a Holder has not received certificates representing the Warrant Shares by the tenth (10th) Business Day following an Exercise Default, the Holder may, upon written notice to the Company,
regain on such Business Day the rights of a Holder of this Warrant, or part thereof, with respect to the Warrant Shares that are the subject of such Exercise Default, and the Exercise Price for such
Warrant Shares shall be reduced by one percent (1%) for each day beyond such 10th Business Day in which the Exercise Default continues. In such event, the Holder shall retain all of the Holder's
rights and remedies with respect to the Company's failure to deliver such Warrant Shares (including without limitation the right to receive the cash payments specified in subparagraph 3(a) above). 

    (d)  Holder of Record.  Each Holder shall, for all purposes, be deemed to have become the holder of
record of Warrant Shares on the Exercise Date of this Warrant, irrespective of the date of delivery of such Warrant Shares. Nothing in this Warrant shall be construed as conferring upon the Holder
hereof any rights as a stockholder of the Company prior to the Exercise Date. 

    4.  Exercise Limitations.  In no event shall a Holder be permitted to exercise this Warrant, or part
thereof, with respect to Warrant Shares in excess of the number of such shares, upon the issuance of which, (x) the number of shares of Common Stock beneficially owned by the Holder  plus (y)
 the number of shares of Common Stock issuable upon such exercise plus (z) the
number of shares of Common Stock that was issued to such Holder during the period of sixty (60) days immediately 

3

preceding the Exercise Date for such exercise, would be equal to or exceed 9.99% of the number of shares of Common Stock then issued and outstanding. To the extent that the limitation contained in
this paragraph 4 applies, the submission of a Exercise Notice by the Holder shall be deemed to be the Holder's representation that this Warrant is exercisable pursuant to the terms hereof and
the Company shall be entitled to rely on such representation without making any further inquiry. Nothing contained herein shall be deemed to restrict the right of a Holder to exercise this Warrant, or
part thereof, at such time as such exercise will not violate the provisions of this Section 4. The limitation contained in this Section 4 shall not apply if the original Holder hereof
elected in the Securities Purchase Agreement not to be subject to such limitation. 

    5.  Payment of the Exercise Price.  The Holder may pay the Exercise Price in either of the following
forms or, at the election of Holder, a combination thereof: 

    (a) Cash
Exercise: by delivery of immediately available funds. 

    (b) Cashless
Exercise: by surrender of this Warrant to the Company together with a notice of cashless exercise, in which event the Company shall issue to the Holder the
number of Warrant Shares determined as follows: 

	 	X = Y × (A-B)/A
	 

where:	 

X = the number of Warrant Shares to be issued to the Holder;
	 

 	 

Y = the number of Warrant Shares with respect to which this Warrant is being exercised;
	 

 	 

A = the average of the Closing Bid Prices of the Common Stock for the five (5) Trading Days immediately prior to (but not including) the Exercise Date; and
	 

 	 

B = the Exercise Price;

provided, however, that the Holder may exercise this Warrant pursuant to a Cashless Exercise only if, on the Exercise Date, the resale of Warrant Shares
is not covered by an effective Registration Statement (as defined in the Registration Rights Agreement) that is available to the Holder on such date. 

    For
purposes of Rule 144 under the Securities Act of 1933, as amended, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise
transaction shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have been commenced, on the Issue Date. 

    6.  Anti-Dilution Adjustments; Distributions; Other Events.  The Exercise Price and the
number of Warrant Shares issuable hereunder shall be subject to adjustment from time to time as provided in this Section 6. In the event that any adjustment of the Exercise Price or number of
Warrant Shares as required herein results in a fraction of a cent or fraction of a share, as applicable, such exercise Price or number of Warrant Shares shall be rounded upon or down to the nearest
cent or share, as applicable. 

    (a)  Adjustment of Exercise Price and Number of Shares upon Issuance of Common Stock during the Issue
Period.  In the event that, at any time during the period of one hundred and eighty (180) days following the Issue Date (the
"Issue Period"), the Company issues or sells, or in accordance with Section 6(c) hereof is deemed to have issued or sold, (i) any shares
of Common Stock for no consideration (other than a stock split or stock dividend) or for a consideration per share less than the $12.175 (such price, as adjusted for stock splits, stock dividends and
similar events, being referred to herein as the "Issue Price" and any such issuance or sale being referred to herein as a
"Below-Issue Price Issuance") and (ii) as a result of such Below-Issue Price Issuance, 

4

together with any other Below-Issue Price Issuance(s) effected by the Company during the Issue Period, the aggregate purchase price paid to the Company is equal to or exceeds five million dollars
($5,000,000), then effective immediately upon such Below-Issue Price Issuance, the following adjustments to the terms of this Warrant will occur: 

    (A) the
Exercise Price will be adjusted in accordance with the following formula: 

	 

E'	 
 	 

=	 
 	 

(E)(P)

(IP)

	 

where:	 
 	 

 	 
 	 

 	 
 	 

 
	 

 

 	 
 
 	 

 

E'	 
 
 	 

 

=	 
 
 	 

 

the adjusted Exercise Price;
	 

 	 
 	 

E	 
 	 

=	 
 	 

the then current Exercise Price;
	 

 	 
 	 

P	 
 	 

=	 
 	 

the average amount of consideration per share received by the Company pursuant to such Below-Market Issuance(s)(calculated in accordance with paragraph 6(c) below, provided that references therein to Exercise Price shall be deemed to refer to
the Issue Price); and
	 

 	 
 	 

IP	 
 	 

=	 
 	 

the Issue Price.

Notwithstanding
the foregoing, in no event shall E' be less than seventy percent (70%) of the Issue Price. 

    (B) the
number of Warrant Shares into which this Warrant is exercisable will be adjusted in accordance with the following formula: 

	 

S'	 
 	 

=	 
 	 

(S)(IP)

(P)

	 

where:	 
 	 

 	 
 	 

 	 
 	 

 
	 

 	 
 	 

S'	 
 	 

=	 
 	 

the adjusted number of Warrant Shares into which this Warrant is exercisable;
	 

 	 
 	 

S	 
 	 

=	 
 	 

the then current number of Warrant Shares into which this Warrant is exercisable;
	 

 	 
 	 

IP	 
 	 

=	 
 	 

the Issue Price; and
	 

 	 
 	 

P	 
 	 

=	 
 	 

the lowest amount of consideration per share received by the Company pursuant to such Below-Market Issuance(s)(calculated in accordance with paragraph 6(c) below, provided that references therein to Exercise Price shall be deemed to refer to the
Issue Price).

    (b)  Adjustment of Exercise Price and Number of Shares upon Issuance of Common Stock.  Except as
otherwise provided in Sections 6(a) and 6(e) hereof, if and whenever after the initial issuance of this Warrant, the Company issues or sells, or in accordance with Section 6(c) hereof is deemed
to have issued or sold, any shares of Common Stock for no consideration (other than a 

5

stock split or stock dividend) or for a consideration per share less than Exercise Price (as then in effect) (a "Dilutive Issuance"), and such Dilutive Issuance does not result in an adjustment to the
terms of this Warrant pursuant to paragraph 6(a) above, then effective immediately upon such Dilutive Issuance, the Exercise Price will be adjusted in accordance with the following formula: 

	 

E'	 
 	 

=	 
 	 

(E)(O+P/E)

(CSDO)

	 

where:	 
 	 

 	 
 	 

 	 
 	 

 
	 

 	 
 	 

E'	 
 	 

=	 
 	 

the adjusted Exercise Price
	 

 	 
 	 

E	 
 	 

=	 
 	 

the then current Exercise Price;
	 

 	 
 	 

O	 
 	 

=	 
 	 

the number of shares of Common Stock outstanding immediately prior to the Dilutive Issuance;
	 

 	 
 	 

P	 
 	 

=	 
 	 

the aggregate consideration, calculated as set forth in Section 6(b) hereof, received by the Company upon such Dilutive Issuance; and
	 

 	 
 	 

CSDO	 
 	 

=	 
 	 

the total number of shares of Common Stock Deemed Outstanding (as herein defined) immediately after the Dilutive Issuance.

    (c)  Effect on Exercise Price of Certain Events.  For purposes of determining the adjusted Exercise Price
under Section 6(b) hereof, the following will apply: 

     (i) Issuance
of Rights, Options or Convertible Securities. Subject to Section 6(c)(ii) below, if, after the date hereof, the Company in any manner issues or
grants any warrants, rights or options, whether or not immediately exercisable, to subscribe for or to purchase Common Stock or other securities exercisable, convertible into or exchangeable for
Common Stock ("Convertible Securities")(such warrants, rights and options to purchase Common Stock or Convertible Securities are hereinafter referred to as "Options"), and the price per share for
which Common Stock is purchasable or issuable upon the exercise of such Options is less than the Exercise Price (as then in effect) on the date of issuance of such Option or direct stock grant ("Below
Market Options"), then the maximum total number of shares of Common Stock issuable upon the exercise of all such Below Market Options (assuming full exercise, conversion or exchange of Convertible
Securities, if applicable) will, as of the date of the issuance or grant of such Below Market Options, be deemed to be outstanding and to have been issued and sold by the Company for such price per
share. For purposes of the preceding sentence, the price per share for which Common Stock is issuable upon the exercise of such Below Market Options is determined by dividing (i) the total
amount, if any, received or receivable by the Company as consideration for the issuance or sale of all such Below Market Options, plus the minimum aggregate amount of additional consideration, if any,
payable to the Company upon the exercise of all such below Market Options, plus, in the case of Convertible Securities issuable upon the exercise of such Below Market Options, the minimum aggregate
amount of additional consideration payable upon the exercise, conversion or exchange thereof at the time such Convertible Securities first become exercisable, convertible or exchangeable, by
(ii) the maximum total number of shares of Common Stock issuable upon the exercise of all such Below Market Options (assuming full conversion of Convertible Securities, if applicable). No
further adjustment to the Exercise Price will be made upon the exercise of such Below Market Options or upon the exercise, conversion or exchange of Convertible Securities issuable upon exercise of
such Below Market Options. 

    (ii)  Issuance of Convertible Securities.  

6

    (A) If the Company in any manner issues or sells any Convertible Securities, whether or not immediately convertible (other than where the same are issuable upon the
exercise of Options) and the price per share for which Common Stock is issuable upon such exercise, conversion or exchange (as determined pursuant to Section 6(c)(ii)(B) if applicable) is less
than the Exercise Price (as then in effect) on the date of issuance of such Convertible Security, then the maximum total number of shares of Common Stock issuable upon the exercise, conversion or
exchange of all such Convertible Securities will, as of the date of the issuance of such Convertible Securities, be deemed to be outstanding and to have been issued and sold by the Company for such
price per share. For the purposes of the preceding
sentence, the price per share for which Common Stock is issuable upon such exercise, conversion or exchange is determined by dividing (i) the total amount, if any, received or receivable by the
Company as consideration for the issuance or sale of all such Convertible Securities, plus the minimum aggregate amount of additional consideration, if any, payable to the Company upon the exercise,
conversion or exchange thereof at the time such Convertible Securities first become exercisable, convertible or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable
upon the exercise, conversion or exchange of all such Convertible Securities. No further adjustment to the Exercise Price will be made upon the actual issuances of such Common Stock upon exercise,
conversion or exchange of such Convertible Securities. 

    (B) If
the Company in any manner issues or sells any Convertible Securities with a fluctuating or re-setting conversion or exercise price or exchange ratio
(a "Variable Rate Convertible Security"), then the price per share for which Common Stock is issuable upon such exercise, conversion or exchange for purposes of the calculation contemplated by
Section 6(c)(ii)(A) shall be deemed to be the lowest price per share which would be applicable assuming that all holding period and other conditions to any discounts contained in such
Convertible Security have been satisfied. 

    (iii)  Change in Option Price or Conversion Rate.  If there is a change at any time in (i) the
amount of additional consideration payable to the Company upon the exercise of any Options; (ii) the amount of additional consideration, if any, payable to the Company upon the exercise,
conversion or exchange of any Convertible Securities; or (iii) the rate at which any Convertible Securities are convertible into or exchangeable for Common Stock (other than under or by reason
of provisions designed to protect against dilution), the Exercise Price in effect at such time shall be adjusted to the Exercise Price which would have been in effect had such Options or Convertible
Securities still outstanding provided for such changed additional consideration or changed conversion rate, as the case may be, at the time initially granted, issued or sold. 

    (iv)  Treatment of Expired Options and Unexercised Convertible Securities.  If, in any case, the total
number of shares of Common Stock issuable upon exercise of any Options or upon exercise, conversion or exchange of any Convertible Securities is not, in fact, issued and the rights to exercise such
Option or to exercise, convert or exchange such Convertible Securities shall have expired or terminated, the Exercise Price then in effect will be readjusted to the Exercise Price which would have
been in effect at the time of such expiration or termination had such Options or Convertible Securities, to the extent outstanding immediately prior to such expiration or termination (other than in
respect of the actual number of shares of Common Stock issued upon exercise or conversion thereof), never been issued. 

7

 

    (v)  Calculation of Consideration Received.  If any Common Stock, Options or Convertible Securities are
issued, granted or sold for cash, the consideration received therefor for purposes of this Warrant will be the amount received by the Company therefor, before deduction of reasonable commissions,
underwriting discounts or allowances or other reasonable expenses paid or incurred by the Company in connection with such issuance, grant or sale. In case any Common Stock, Options or Convertible
Securities are issued or sold for a consideration part or all of which shall be other than cash, the amount of the consideration other than cash received by the Company will be the fair market value
of such consideration except where such consideration consists of freely-tradable securities, in which case the amount of consideration received by the Company will be the Market Price thereof as of
the date of receipt. The fair market value of any consideration other than cash or securities will be determined in the good faith reasonable business judgment of the Board of Directors. 

    (d)  Exceptions to Adjustment of Exercise Price.  No adjustment to the Exercise Price or the number of
Warrant Shares issuable pursuant to this Warrant will be made under paragraph 6(a) or 6(b) above as a result of the issuance of any securities of the Company issued pursuant to (i) the
grant or exercise of any stock or options which may hereafter be granted or exercised under any employee, consultant or director benefit plan of the Company now existing or implemented in the future,
so long as the issuance of such stock or options is approved by a majority of the non-employee members of the Company's Board of Directors or a majority of the members of a committee of
non-employee directors established for such purpose; (ii) any options, warrant, convertible securities or rights or agreements to purchase securities of the Company outstanding on
the date hereof; (iii) any public offerings of Equity Securities (as defined in the Securities Purchase Agreement); (iv) any Equity Securities issued for consideration other than cash
pursuant to a merger, consolidation, acquisition or similar business combination; (v) shares of Common Stock issued in connection with any stock split, stock dividend or recapitalization by the
Company; (vi) shares of Common Stock issued upon conversion of the Preferred Shares or exercise of the Closing Warrants; (vii) any Equity Securities issued pursuant to any equipment
leasing arrangement or debt financing from a bank or similar financial institution; or (viii) any Equity Securities issued in connection with strategic transactions involving the Company and
other entities, including (A) joint ventures, manufacturing, marketing or distribution arrangements or (B) technology transfer or development arrangements; provided, that the primary
purpose of such transaction is not the raising of capital. 

    (e)  Subdivision or Combination of Common Stock.  If the Company, at any time after the initial issuance
of this Warrant, subdivides (by any stock split, stock dividend, recapitalization, reorganization, reclassification or otherwise) its shares of Common Stock into a greater number of shares, then after
the date of record for effecting such subdivision, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced. If the Company, at any time after the initial
issuance of this Warrant, combines (by reverse stock split, recapitalization, reorganization, reclassification or otherwise) its shares of Common Stock into a smaller number of shares, then, after the
date of record
for effecting such combination, the Exercise Price in effect immediately prior to such combination will be proportionally increased. In the event of any adjustment to the Exercise Price arising from
an event specified in this subparagraph (e), the number of shares of Common Stock into which this Warrant is exercisable will be proportionately increased or reduced, as the case may be. 

    (f)  Distributions.  If the Company or any of its subsidiaries shall at any time distribute to holders of
Common Stock (or to a holder, other than the Company, of the common stock of any such subsidiary) cash, evidences of indebtedness or other securities or assets (other than cash dividends or
distributions payable out of earned surplus or net profits for the current or the immediately preceding year) including any dividend or distribution in shares of capital stock of a 

8

subsidiary of the Company (collectively, a "Distribution") then, in any such case, the Holder of this Warrant shall be entitled to receive, at the same
time as such assets are received by a holder of such stock, an amount and type of such Distribution as though such Holder were a holder on the record date therefor of a number of shares of Common
Stock into which this Warrant is exercisable as of such record date (such number of shares to be determined at the Exercise Price then in effect and without regard to any limitation on exercise of
this Warrant that may exist pursuant to the terms hereof or otherwise). 

    (g)  Notice of Consolidation or Merger.  In the event of a merger, consolidation, business combination,
tender offer, exchange of shares, recapitalization, reorganization, redemption or other similar event, as a result of which shares of Common Stock of the Company shall be changed into the same or a
different number of shares of the same or another class or classes of stock or securities or other assets of the Company or another entity or there is a sale of all or substantially all the Company's
assets (a "Corporate Change"), then this Warrant shall be exercisable into such class and type of securities or other assets as the Holder would have received had the Holder exercised this Warrant
immediately prior to such Corporate Change; provided, however, that Company may not effect any Corporate Change unless (i) it (or, in the case of a tender offer, the offering party) first shall
have given twenty (20) days' notice to the Holder hereof of any Corporate Change and makes a public announcement of such event before or at the same time that it gives such notice (it being
understood that the filing by the Company of a Form 8-K for the purpose of disclosing the anticipated consummation of the Corporate Change shall constitute such a notice for
purposes of this provision) and (ii) it requires the resulting successor or acquiring entity (if not the Company) to assume by written instrument the obligations of the Company hereunder and
under the Securities Purchase Agreement and the Registration Rights Agreement. 

    (h)  Adjustments; Additional Shares, Securities or Assets.  In the event that at any time, as a result of
an adjustment made pursuant to this paragraph 6, the Holder of this Warrant shall, upon exercise of this
Warrant, become entitled to receive securities or assets (other than Common Stock) then, wherever appropriate, all references herein to shares of Common Stock shall be deemed to refer to and include
such shares and/or other securities or assets; and thereafter the number of such shares and/or other securities or assets shall be subject to adjustment from time to time in a manner and upon terms as
nearly equivalent as practicable to the provisions of this paragraph 6. 

    7.  Fractional Interests.  No fractional shares or scrip representing fractional shares shall be issuable
upon the exercise of this Warrant, but on exercise of this Warrant, the Holder hereof may purchase only a whole number of shares of Common Stock. If, on exercise of this Warrant, the Holder hereof
would be entitled to a fractional share of Common Stock or a right to acquire a fractional share of Common Stock, such fractional share shall be disregarded and the number of shares of Common Stock
issuable upon exercise shall be rounded up or down to the nearest whole number of shares of Common Stock. 

    8.  Transfer of this Warrant.  The Holder may sell, transfer, assign, pledge or otherwise dispose of this
Warrant, in whole or in part (and if in part, in minimum denominations of 50,000 shares), as long as such sale or other disposition is made pursuant to an effective registration statement or an
exemption to the registration requirements of the Securities Act of 1933, as amended, and applicable state laws. Upon such transfer or other disposition, the Holder shall deliver a written notice to
Company, substantially in the form of the Transfer Notice attached hereto as Exhibit B (the "Transfer Notice"), indicating the person or persons
to whom this Warrant shall be transferred and, if less than all of this Warrant is transferred or this Warrant is transferred in parts, the number of Warrant Shares to be covered by the part of this
Warrant to be transferred to each such person. Within three (3) Business Days of receiving a Transfer Notice and the original of this Warrant, the Company shall deliver to the each transferee
designated by the Holder a Warrant or Warrants of like tenor and terms 

9

for the appropriate number of Warrant Shares. Notwithstanding the foregoing, no Holder may knowingly and voluntarily sell this Warrant (or any portion thereof) to an entity that is a competitor of the
Company. 

    9.  Benefits of this Warrant.  

    Nothing
in this Warrant shall be construed to confer upon any person other than the Holder of this Warrant any legal or equitable right, remedy or claim under this Warrant and this
Warrant shall be for the sole and exclusive benefit of the Holder of this Warrant. 

    10.  Loss, theft, destruction or mutilation of Warrant.  

    Upon
receipt by the Company of evidence of the loss, theft, destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) of indemnity or security
reasonably satisfactory to the Company, and upon surrender of this Warrant, if mutilated, the Company shall execute and deliver a new Warrant of like tenor and date. 

    11.  Notice or Demands.  

    Except
as otherwise provided herein, any notice, demand or request required or permitted to be given pursuant to the terms of this Warrant shall be in writing and shall be deemed
given (i) when delivered personally or by verifiable facsimile transmission (with an original to follow) on or before 5:00 p.m., eastern time, on a Business Day or, if such day is not a
Business Day, on the next succeeding Business Day, (ii) on the next Business Day after timely delivery to a nationally-recognized overnight courier and (iii) on the Business Day actually
received if deposited in the U.S. mail (certified or registered mail, return receipt requested, postage prepaid), addressed as follows: 

If to the Company:

click21earn.com, Inc.

110 110th Avenue NE

Bellevue, WA 98008

Attn: General Counsel

Tel: 425-637-5829

Fax: 425-637-1540 

with a copy to:

Scott
Gelband, Esq.

Perkins Coie LLP

505 Fifth Avenue South, Suite 620

Seattle, WA 98104

Tel: 206-583-8888

Fax: 206-583-8500 

and
if to the Holder, to such address as shall be designated by the Holder in writing to the Company. 

    12.  Applicable Law.  

    This
Warrant is issued under and shall for all purposes be governed by and construed in accordance with the laws of the state of Delaware, without giving effect to conflict of law
provisions thereof. 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK] 

10

IN WITNESS WHEREOF, the undersigned has executed this Warrant as of the  day of December  , 2000. 

	 	 	CLICK2LEARN.COM, INC.

	 

 	 
 	 

By:	 

 
	 	 	 	
 Name:

Title:

11

EXHIBIT A to WARRANT  

  EXERCISE NOTICE         

    The undersigned Holder hereby irrevocably exercises the right to purchase            of the shares of Common Stock ("Warrant
Shares") of CLICK2LEARN.COM, INC. evidenced by the attached Warrant (the "Warrant"). Capitalized terms used herein and
not otherwise defined shall have the respective meanings set forth in the Warrant. Unless otherwise specified in writing to the Company, the undersigned represents to the Company that the shares of
Common Stock covered by this notice have been or will be sold pursuant to the terms of an effective registration statement. 

    1.  Form of Exercise Price.  The Holder intends that payment of the Exercise Price shall be made as: 

      a  Cash Exercise with respect to            Warrant Shares; and/or 

      a
Cashless Exercise with respect to            Warrant Shares. 

    2.  Payment of Exercise Price.  In the event that the Holder has elected a Cash Exercise with respect to
some or all of the Warrant Shares to be issued pursuant hereto, the Holder shall pay the sum of $            to the Company in accordance with the terms of the Warrant. 

    3.  Delivery of Warrant Shares.  The Company shall deliver to the Holder            Warrant
Shares in accordance with the terms of the Warrant. 

	Date:	

	 

 	 

 Name of Registered Holder

 

	 

By:	 

 
	 	

	 	Name:

Title:

12

EXHIBIT B to WARRANT  

  TRANSFER NOTICE         

    FOR VALUE RECEIVED, the undersigned Holder of the attached Warrant hereby sells, assigns and transfers unto the person or persons named below the right to
purchase      shares of the Common Stock of CLICK2LEARN.COM, INC. evidenced by the attached Warrant. 

	Date:	

	 

 	 

 Name of Registered Holder

 

	 

By:	 

	 	Name:

Title:

Transferee
Name and Address: 

13

QuickLinks

SERIES A WARRANT TO PURCHASE COMMON STOCK of CLICK2LEARN.COM, INC.

EXERCISE NOTICE

TRANSFER NOTICE

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