Document:

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                                                                   Exhibit 10.17

                                   EXHIBIT "A"

                          REGISTRATION RIGHTS AGREEMENT

                                       FOR

                                 SHAREHOLDER OF

                         RUTHERFORD LEARNING GROUP, INC.

                            Effective August 1, 2000

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                          REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (the "'Agreement") is entered into
effective August 1, 2000, by and among COMPASS KNOWLEDGE HOLDINGS, INC., a
Nevada corporation (the "Company") and MICHAEL RUTHERFORD (the "Stockholder").

         WHEREAS, the Company and Stockholder have entered into an Agreement and
Plan of Stock Exchange dated as of the date hereof (the "Exchange Agreement")
pursuant to which the Stockholder will acquire pursuant to the Exchange
Agreement One Hundred Thousand (100,000) shares of common stock of the Company,
par value $.001 per share (the "Securities"); and

         WHEREAS, it is a condition precedent to consummation of the Exchange
Agreement that the Company provide certain registration rights to the
Stockholder with respect to the Securities.

         NOW, THEREFORE, in consideration of the foregoing premises and for
other good and valuable consideration, the adequacy and receipt of which are
hereby acknowledged, the parties hereto hereby agree as follows:

                                   ARTICLE 1.
                                  DEFINITIONS

         SECTION 1.1 DEFINITIONS. The following terms shall have the meanings
ascribed to them below:

         "AGREEMENT" or "EXCHANGE AGREEMENT" means that certain Agreement and
Plan of Stock Exchange by and among the Company, Compass Acquisition Corp.,
Rutherford Learning Group, Inc., and the Stockholder of even date herewith, as
amended, modified or supplemented from time to time and all attachments hereto.

         "BUSINESS DAY" means any day that is not a Saturday, Sunday or a day on
which banking institutions in New York, New York are authorized or obligated by
law, executive order or government decree to be closed.

         "COMMISSION" means the United States Securities and Exchange Commission
or any other federal agency at the time administering the Securities Act.

         "CONTROLLING PERSON" has the meaning ascribed thereto in Section 4.1.

         "DELIVERED SECURITIES" means only the Registrable Securities actually
delivered to the Stockholder pursuant to the Exchange Agreement.

         "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations of the Commission promulgated thereunder.

         "HOLDER" means any Person who now holds or shall hereafter acquire and
hold Registrable Securities.

         "INDEMNIFIED PARTY" means an Indemnified Party as defined in Section
4.2.

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         "INDEMNIFYING PARTY" means an Indemnifying Party as defined in Section
4.2.

         "PERSON" means any individual, entity or group, including without
limitation, any corporation, limited liability company, limited or general
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization or government or other agency or political
subdivision thereof.

         "PIGGY-BACK REGISTRATION" has the meaning ascribed thereto in Section
2.1(a).

         "PROSPECTUS" means the prospectus included in any Registration
Statement (including with limitation, a prospectus that discloses information
previously omitted from a prospectus filed as part of an effective Registration
Statement in reliance upon Rule 430A promulgated under the Securities Act), as
amended or supplemented by any prospectus supplement with respect to the terms
of the offering of any portion of the securities covered by such Registration
Statement, and all other amendments and supplements to the prospectus, including
post-effective amendments, and all material incorporated by reference or deemed
to be incorporated by reference in such prospectus.

         "REGISTRABLE SECURITIES" means (i) Securities, and (ii) any other
shares of the Securities acquired as a result of stock splits, stock dividends,
reclassifications, recapitalizations, or similar events relating to the shares
described in clause (i) above, in such case until such time as (x) a
Registration Statement covering such shares of the Securities has been declared
effective by the Commission and such Securities have been disposed of pursuant
to such effective Registration Statement, or (y) such Securities would be
eligible for sale pursuant to Rule 144 under the Securities Act (or any similar
provisions then in force), without regard to the volume limitations set forth in
Rule 144(e) and not otherwise subject to transfer restrictions under agreements
with the Company, or (z) such Securities have been otherwise transferred and the
Company has delivered a new certificate or other evidence of ownership for such
Securities not bearing a restrictive legend and not subject to any stop transfer
or similar restrictive order and all of such Securities may be resold by the
Person receiving such certificate without complying with the registration
requirements of the Securities Act.

         "REGISTRATION STATEMENT" means any registration statement of the
Company which covers any of the Registrable Securities pursuant to the
provisions of this Agreement, including the Prospectus, amendments and
supplements to such registration statement, including post-effective amendments,
all exhibits and all material incorporated by reference in such registration
statement.

         "SECURITIES" has the meaning ascribed thereto in the introduction
hereof as well as any additional shares of Company common stock or other
securities received pursuant to Agreement but excluding the options granted
pursuant to the Employment Agreements as defined in the Agreement.

         "SECURITIES ACT" means the Securities Act of 1933, as amended, and the
rules and regulations of the Commission promulgated thereunder.

         "SELLING HOLDER" means a Holder who is or may be selling Registrable
Securities pursuant to a Registration Statement under the Securities Act.

         "SELLING HOLDERS COUNSEL" means the counsel selected to represent the
Selling Holders as set forth in Section 3.1(c).

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         "STOCKHOLDER" has the meaning ascribed thereto in the introduction
hereof.

         "UNDERWRITER" means a securities dealer who purchases any Registrable
Securities as principal in an underwritten offering and not as part of such
dealer's market-making activities.

         "UNDERWRITER'S CUTBACK" shall mean a reduction in the number of
Registrable Securities to be included in any underwritten offering as the result
of receipt of written notice from the representative of the Underwriters to the
effect that adverse marketing factors require a limitation on the number of
Registrable Securities to be underwritten.

         "UNDERWRITER'S LOCKUP" shall mean the number of Registrable Securities
for which resale is prohibited by the Underwriter for such period as the
Underwriter deems appropriate.

                                   ARTICLE 2.
                               REGISTRATION RIGHTS

         SECTION 2.1. (a) PIGGY-BACK REGISTRATION. If at any time after the date
hereof the Company proposes to file a Registration Statement under the
Securities Act with respect to an offering by the Company for its own account or
for the account of any of its respective security holders other than a
Registration Statement on Form 10, S-4 or Form S-8 (or any substitute form that
may be adopted by the Commission) or on any other form inappropriate for an
underwritten public offering or related solely to securities to be issued in a
merger, acquisition of the stock or assets of another entity or in a similar
transaction, then the Company shall give written notice of such proposed filing
to the Holders as soon as practicable (but in no event less than 30 days before
the anticipated filing date), and such notice shall offer such Holders the
opportunity to register such number of Registrable Securities as each such
Holder may request (which request shall specify the number of shares and the
type of Registrable Securities intended to be disposed of by such Holder and
shall also state the firm intent of the Holder to offer Registrable Securities
for sale) (a "Piggy-Back Registration"). With respect to the foregoing
registration, the Company shall use its reasonable best efforts to cause the
managing Underwriter or Underwriters of a proposed underwritten offering to
permit the Registrable Securities requested to be included in a Piggy-Back
Registration on the same terms and conditions as any similar securities of the
Company or any other security holder included therein and to permit the sale or
other disposition of such Registrable Securities in accordance with the intended
method of distribution thereof. Any Holder shall have the right to withdraw its
request for inclusion of its Registrable Securities in any Registration
Statement pursuant to this Section 2.1 by giving written notice to the Company
of its request to withdraw.

         (b) Notwithstanding any other provision of this Section 2.1, if the
Underwriter advises the Company in writing that, in such firm's opinion,
marketing factors prohibit or require a limitation of the number of shares to be
underwritten, the Underwriter or the Company may exclude the Registrable
Securities in the same proportion, as nearly as practicable, to other selling
shareholders of the Company or otherwise or the Underwriter or the Company may
limit the number of Registrable Securities to be included in the registration
and underwriting to a specified percentage of the Registrable Securities to be
distributed through the underwriting in the same proportion, as nearly as
practicable, to other selling shareholders of the Company. The Company shall so
advise all Holders of Registrable Securities which would otherwise be registered
and underwritten under this subsection and the number of shares of Registrable
Securities that may be included in the registration and underwriting shall be
allocated among all Holders who hold those securities in proportion, as nearly
as practicable, to the respective amounts of Registrable Securities entitled to
inclusion in the registration held by such Holders at the time the registration

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statement is filed. Any Holder disapproving of the terms of any such
underwriting may elect to withdraw from it by written notice to the Company and
the Underwriter.

         (c) Notwithstanding any other provision of this Agreement to the
contrary, the Company shall not be required to include any of the Registrable
Securities in a registration statement relating to an underwritten offering of
the Company's securities unless the Holders accept the terms of the underwriting
as agreed upon between the Company and the underwriters selected by it (provided
such terms are usual and customary for selling Stockholder), including, without
limitation, any Underwriter's Cutback and/or Lockup, and the Stockholder agrees
to promptly execute and/or deliver such documents in connection with such
registration as the Company or the managing underwriter may reasonably request.

         (d) Notwithstanding any other provision of this Agreement to the
contrary, the Holder may not sell or otherwise transfer or dispose of any of the
Registrable Securities earned and delivered to the Shareholders in accordance
with the Purchase Agreement unless otherwise agreed by the Company for a period
of one year from the Effective Date of the with the Purchase Agreement or if
requested in writing by the Company and the Underwriter, the Holders shall agree
not to sell or otherwise transfer or dispose of any Registrable Securities held
by the Holders for a period set by the Underwriter following the effective date
of a registration statement of the Company filed under the Securities Act,
PROVIDED that officers and directors of the Company and other Stockholder of the
Company who are similarly situated to the Stockholder are subject to a similar
Lock-up.

         (e) The Holder understands that sales of large blocks of the Company's
securities could negatively impact the trading price of its stock. Accordingly
and notwithstanding any other provision of this Agreement to the contrary, the
Holder hereby agrees that for a period of two years from the Effective Date of
the Purchase Agreement he/she will not, within any 30 day period, offer to sell,
contract to sell, hypothecate, negotiate, pledge, assign, encumber, loan,
pledge, grant any rights with respect to or otherwise dispose of, directly or
indirectly (collectively, a "Disposition"), of a number of shares of Company's
securities which exceeds 5 percent of the total average weekly trading volume
(which shall be calculated without the inclusion of any Disposition) of the
Company's securities for the four (4) calendar weeks preceding the date of any
such Disposition.

                  Such restrictions shall not apply with respect to a
Disposition (i) to other holders of the Company's securities who are bound by
the terms of an agreement containing the same terms and restrictions described
herein, (ii) to any donees who receive such shares of the Company's securities
as a bona fide gift and who are bound by the terms of this Agreement, (iii) with
the prior written consent of the Company, or (iv) pursuant to proportionate
co-sale rights with other officers and directors of the Company to the extent
sales by such officers and directors exceed the limitations imposed upon the
Holder as provided above.

         The Holder acknowledges and agrees that the foregoing restrictions also
expressly preclude the Holder from engaging in any hedging or other transaction
which is designed to or reasonably expected to lead to or result in a
Disposition of shares of the Company's securities during the said restricted
sale period, even if such shares of the Company's securities would be disposed
of by someone other than the Holder. Such prohibited hedging or other
transactions would include, without limitation, any short sale (whether or not
against the box) or any purchase, sale, show of any shares or grant of any right
(including, without limitation, any put or call option) with respect to any
shares of the Company's securities or with respect to any security

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(other than a broad-based market basket or index) that includes, relates to or
derives any significant part of its value from the Company's securities.

         The Holder agrees to submit each certificate for his shares of the
Company's securities now or hereafter owned by him to the Company for imprinting
of the following legends thereon:

                 "The sale, transfer, hypothecation, negotiation,
        pledge, assignment, encumbrance or other disposition of this
        share certificate and the shareholdings represented hereby are
        subject to all of the terms, conditions and provisions of a
        Registration Rights Agreement Effective August 1, 2000, a copy
        of which may be obtained from the Secretary of Compass
        Knowledge Holdings, Inc."

         In furtherance of the foregoing, the Company and its transfer agent and
registrar are hereby authorized to decline to make any transfer of shares of the
Company's securities if such transfer would constitute a violation or breach of
this Agreement.

                                   ARTICLE 3.
                             REGISTRATION PROCEDURES

         SECTION 3.1. FILINGS; INFORMATION. Whenever the Company is required to
effect or cause the registration of Registrable Securities pursuant to Section
2.1 hereof, the Company will use its reasonable best efforts to effect the
registration of such Securities in accordance with the intended method(s) of
disposition thereof as quickly as practicable, and in connection with any such
request:

         (a) The Company will prepare and file with the Commission a
Registration Statement with respect to the offer and sale of such securities and
use its reasonable best efforts to cause such Registration Statement to become
and remain effective until the completion of the distribution contemplated
thereby; provided, however, the Company shall not be required to keep such
Registration Statement effective for more than 12 months (or such shorter period
which will terminate when all Securities covered by such Registration have been
sold, but not prior to the expiration of the applicable period referred to in
Section 4(3) of the Securities Act and Rule 174 thereunder, if applicable).

         (b) The Company will prepare and file with the Commission such
amendments and post-effective amendments to the Registration Statement as may be
necessary to keep such Registration Statements effective for as long as such
registration is required to remain effective pursuant to the terms hereof; cause
the Prospectus to be supplemented by any required Prospectus supplement, and, as
so supplemented, to be filed pursuant to Rule 424 under the Securities Act; and
comply with the provisions of the Securities Act applicable to it with respect
to the disposition of all Registrable Securities covered by such Registration
Statement during the applicable period in accordance with the intended methods
of disposition by the Selling Holders set forth in such Registration Statement
or supplement to the Prospectus.

         (c) The Company, at least ten (10) Business Days prior to filing a
Registration Statement or a Prospectus or any amendment or supplement to such
Registration Statement or Prospectus, will furnish to (i) each Selling Holder,
(ii) not more than one counsel representing all Selling Holders ("Selling
Holders Counsel"), to be selected by a majority-in-interest of such

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Selling Holders, and (iii) each Underwriter, if any, of the Registrable
Securities covered by such Registration Statement, copies of such Registration
Statement as proposed to be filed, together with exhibits thereto (whether or
not incorporated by reference in such Registration Statement), which documents
will be subject to review and approval by each of the foregoing within ten (10)
Business Days after delivery (except that such review and approval of any
Prospectus or any amendment or supplement to such Registration Statement or
Prospectus must be made within five (5) Business Days after delivery), and
thereafter, furnish to such Selling Holders, Selling Holders' Counsel and
Underwriters, if any, at the Company's expense, such number of conformed copies
of such Registration Statement, each amendment and supplement thereto (in each
case including all exhibits thereto and documents incorporated by reference
therein), the Prospectus included in such Registration Statement (including each
preliminary Prospectus) and such other documents or information as such Selling
Holders, Selling Holders' Counsel or Underwriters may reasonably request in
order to facilitate the disposition of the Registrable Securities (it being
understood that the Company consents to the use of the Prospectus and any
amendment or supplement thereto by each Selling Holder and the Underwriters, if
any, in connection with the offering and sale of the Registrable Securities
covered by such Prospectus or any amendment or supplement thereto). The Company
shall provide the Holders' counsel and each Underwriter, if any, a copy of any
and all transmittal letters or other correspondence to, or received from, the
Commission or any other governmental body having jurisdiction relating to the
offering.

         (d) The Company will use its reasonable best efforts to prevent the
entry of any stop order or to remove it at the earliest possible moment if
entered.

         (e) [Section Reserved].

         (f) The Company will promptly notify each Selling Holder, Selling
Holders' Counsel and any Underwriter in writing, (i) of any request by the
Commission or other regulatory body having jurisdiction over the Registration
Statement for any amendment or supplement to any Registration Statement or other
document relating to the offering and sale of the Registrable Securities, (ii)
when a Prospectus or any Prospectus supplement or post-effective amendment has
been filed and, with respect to a Registration Statement or any post-effective
amendment, when the same has become effective, (iii) of the issuance by the
Commission of any stop order suspending the effectiveness of a Registration
Statement or the initiation or threatening of any proceedings for that purpose,
and (iv) of the happening of any event which makes any statements made in a
Registration Statement or related Prospectus or any document incorporated by
reference therein untrue in a material respect or which requires the making of
any changes in such Registration Statement, Prospectus or documents so that they
will not to the best of the Company's knowledge contain any untrue statement of
a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements in the Registration Statement and Prospectus
not misleading in light of the circumstances in which they were made; and, as
promptly as practicable thereafter, prepare and file with the Commission and
furnish a supplement or amendment to such Prospectus so that, as thereafter
deliverable to the buyers of such Registrable Securities, such Prospectus will
not to the best of the Company's knowledge contain any untrue statements of a
material fact or omit to state a material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading, such amendment to be subject to the Holders' review under Section
3.1(c).

                  Each Selling Holder agrees that, upon receipt of any notice in
writing from the Company of the happening of any event of the kind described in
Section 3.1(f) hereof, such Selling Holder will forthwith discontinue
disposition of Registrable Securities pursuant to the Registration Statement
covering such Registrable Securities until such Selling Holder's receipt of

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the copies of the supplemented or amended Prospectus contemplated by Section
3.1(f) hereof, and, if so directed by the Company, such Selling Holder will
deliver to the Company all copies, other than permanent file copies then in such
Selling Holder's possession, of the most recent Prospectus covering such
Registrable Securities at the time of receipt of such notice. In the event the
Company shall give such notice, the Company shall extend the period during which
such Registration Statement shall be maintained effective (including the period
referred to in Section 3.1(a) hereof) by the number of days during the period
from and including the date of the giving of notice pursuant to Section 3.1(f)
hereof to the date when the Company shall make available to the Selling Holders
covered by such Registration Statement a Prospectus supplemented or amended to
conform with the requirements of Section 3.1(f) hereof.

          (g) The Company will make generally available an earnings statement
satisfying the provisions of Section 11(a) of the Securities Act no later than
120 days after the end of the 12 month period beginning with the first day of
the Company's first fiscal quarter commencing after the effective date of a
Registration Statement, which earnings statement shall cover said 12 month
period, and which requirement will be deemed to be satisfied if the Company
files complete and accurate information on Forms 10-QSB, 10-KSB and 8-K under
the Exchange Act in accordance with the applicable time periods and extensions
provided by the Exchange Act and otherwise complies with Rule 158 under the
Securities Act.

         (h) The Company will enter into customary agreements (including, if
applicable, an underwriting agreement in customary form and which is reasonably
satisfactory to the Company) and take such other actions as are reasonably
required in order to expedite or facilitate the disposition of such Registrable
Securities.

         (i) The Company, during the period when the Prospectus is required to
be delivered under the Securities Act, will file all documents required to be
filed with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the
Exchange Act.

         (j) The Company will use its reasonable best efforts to cause all such
Registrable Securities to be listed on each securities exchange or quoted on any
automated quotation system on which similar securities of the Company are then
listed or quoted and enter into customary agreements, including a listing
application in customary form; provided that the applicable listing requirements
are satisfied, and to provide a transfer agent and register for such Registrable
Securities covered by the Registration Statement no later than the effective
date of such Registration Statement.

         (k) The Company will make available for inspection by any Holder of
Registrable Securities covered by the Registration Statement, any Underwriter
participating in any disposition pursuant to such Registration Statement, and
any attorney, accountant, or other agent retained by any such Holder or
underwriter (collectively, the "Inspectors"), all financial and other records,
pertinent corporate documents and properties of the Company as such Inspector
shall deem necessary or desirable in order to permit it to conduct a reasonable
investigation within the meaning of Section 11 of the Securities Act and cause
the Company's officers, directors and employees to supply all information and
respond to all inquiries reasonably requested by any such Inspector in
connection with such Registration Statement. The rights granted to the
Inspectors in this Section 3(k) shall be conditioned upon the Inspectors
agreeing to sign confidentiality agreements prior to receiving information or
documentation from the Company.

         (1) The Company will, to the extent required in connection with an
underwritten offering, (i) use its reasonable best efforts to furnish an opinion
of counsel for the

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Company addressed to the Underwriter and each Selling Holder and dated the date
of the closing under the underwriting agreement (if any) (or if such offering is
not underwritten, dated the effective date of the Registration Statement), and
(ii) use its reasonable best efforts to furnish a "cold comfort" letter
addressed to each Selling Holder, if permissible under applicable accounting
practices, and signed by the independent public accountants who have audited the
Company's financial statements included in such Registration Statement, in each
such case covering substantially the same matters with respect to such
Registration Statement (and the Prospectus included therein) as are customarily
covered in opinions of issuer's counsel and in accountants' letters delivered to
underwriters in underwritten pubic offerings of securities and such other
matters as the Selling Holders may reasonably request and, in the case of such
accountants' letter, with respect to events subsequent to the date of such
financial statements.

         (m) The Company will, not later than the effective date of the
Registration Statement, provide a CUSIP number for all Registrable Securities,
and provide the applicable transfer agents with printed certificates for the
Registrable Securities, which are in a form eligible for deposit with The
Depository Trust Company.

         SECTION 3.2. REGISTRATION EXPENSES. The Company shall pay all expenses
in connection with any Registration pursuant to Article 3 hereof or incident to
the Company's performance of or compliance with this Agreement including,
without limitation: (i) all registration and filing fees, (ii) the fees and
expenses of compliance with the securities or blue sky laws (including fees and
disbursements of counsel in connection with blue sky qualifications of the
Registrable Securities), (iii) all printing, messenger and delivery expenses,
(iv) the Company's internal expenses (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), (v) the fees and expenses incurred in connection with the
listing or quotation, as appropriate, of the Registrable Securities, (vi) the
fees and disbursements of counsel for the Company and the fees and expenses for
independent certified public accountants retained by the Company (including the
expenses of any special audit or cold comfort letter), (vii) the fees and
expenses of any special experts retained by the Company in connection with such
registration, and (viii) the fees and expenses of one (1) attorney for the
Selling Holders up to $8,000.00. Notwithstanding the foregoing, the Company
shall not be responsible for the payment of any brokerage commissions or taxes
incurred by the Selling Holders.

                                   ARTICLE 4.
                        INDEMNIFICATION AND CONTRIBUTION

         SECTION 4.1 INDEMNIFICATION BY THE COMPANY. The Company agrees to
indemnify and hold harmless, to the fullest extent permitted by law, each
Selling Holder, its general partners, limited partners, managers, officers,
directors, employees, advisors and agents, and each Person, if any, who
controls, is controlled by or is under common control with such Selling Holder
within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act, together with the general partners, limited partners, managers,
officers, directors, employees, advisors and agents of such controlling Person
(collectively the "Controlling Persons"), from and against any loss, claim,
damage, liability, attorneys' fees, cost or expense and costs and expenses of
investigating and defending any such claim (collectively, the "Damages") and any
action in respect thereof to which such Selling Holder, its general partners,
managing partners, managers, officers, directors, employees, advisors and
agents, and any such Controlling Person may become subject under the Securities
Act, the Exchange Act, state blue sky laws, common laws or otherwise, insofar as
such Damages (or proceedings in respect thereof) arise out of, or are based
upon, (x) any untrue statement of a material fact contained in any Registration
Statement or

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Prospectus, or any amendment or supplement thereto, or any preliminary or
summary Prospectus, or in any document incorporated by reference in such
Registration Statement or Prospectus, any amendment or supplement thereto, or
any preliminary or Summary Prospectus, (y) any omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, except insofar as the same are based upon information
furnished in writing to the Company by a Selling Holder for use therein, or (z)
any violation by the Company of any federal, state or common law rule or
regulation applicable to the Company and relating to action required of or
inaction by the Company in connection with any such registration, and the
Company shall reimburse each Selling Holder, its partners, officers, directors,
employees, advisors and agents, and each such Controlling Person for any legal
and other expenses reasonably incurred by that Selling Holder, its partner,
officers, directors, employees, advisors and agents, or any such Controlling
Person in investigating or defending or preparing to defend against any such
Damages or proceedings; provided, however, that the Company shall not be liable
to any Selling Holder or other indemnitee to the extent that any such Damages
arise out of or are based upon an untrue statement or omission based solely upon
information provided in writing to the Company by the Selling Holder for
inclusion in such Prospectus or Registration Statement. The Company also agrees
to indemnify any Underwriters of the Registrable Securities, their officers and
directors and each Person who controls such Underwriters on substantially the
same basis as that of the indemnification of the Selling Holders provided in
this Section 4.1. This indemnity will survive the transfer of the Registrable
Securities by the Holder thereof.

         SECTION 4.2. INDEMNIFICATION BY SELLING HOLDERS. Each Selling
Stockholder agrees, to jointly and severally indemnify and hold harmless, the
Company, its officers, directors, employees, advisors and agents, and each
Controlling Person of the Company, if any, together with the partners, officers,
directors, employees, advisors and agents of such Controlling Person, from and
against any Damages and any action in respect thereof to which the Company and
any such Controlling Person may become subject under the Securities Act, the
Exchange Act, state blue sky laws, common laws or otherwise, insofar as such
Damages (or proceedings in respect thereof) arise out of, or are based upon, (x)
any untrue statement of a material fact contained in any Registration Statement
or Prospectus or any preliminary or summary Prospectus, or (y) any omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, but in each case only to the extent that
such untrue statement of material fact is contained in, or such material fact
relating to the Selling Holder is omitted from, information related to such
Selling Holder, or its plan of distribution, furnished in writing to the Company
by such Selling Holder for use in any Registration Statement or Prospectus, or
any amendment or supplement thereto, or any preliminary or summary Prospectus
with the understanding that the liability pursuant to this Section 4.2, except
where the Selling Holders are grossly negligent or engage in malfeasance or
willful misconduct, shall not exceed the amount of the proceeds received by the
Selling Holders from the Registrable Securities sold pursuant to such
Registration Statement; provided, however, that such Selling Holder shall not be
liable in any such case to the extent that prior to the filing of any such
Registration Statement or Prospectus or amendment or supplement thereto, such
Selling Holder has furnished in writing to the Company information for use in
such Registration Statement or Prospectus or any amendment or supplement thereto
which corrected or made not misleading information previously furnished to the
Company. The Selling Holder shall reimburse the Company and each such
Controlling Person for any legal and other expenses reasonably incurred by the
Company or any such Controlling Person in investigating or defending or
preparing to defend against any such Damages or proceedings.

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         SECTION 4.3. CONDUCT OF INDEMNIFICATION PROCEEDINGS. Promptly after
receipt by any Person in respect of which indemnity may be sought pursuant to
Section 4.1 or 4.2 (an "Indemnified Party") of notice of any claim or the
commencement of any action, the Indemnified Party shall, if a claim in respect
thereof is to be made against the Person against whom such indemnity may be
sought (an "Indemnifying Party"), notify the Indemnifying Party in writing of
the claim or the commencement of such action; provided that the failure to
notify the Indemnifying Party shall not relieve it from any liability which it
may have to an Indemnified Party otherwise than under Section 4.1 or 4.2 except
to the extent of any actual prejudice resulting therefrom. If any such claim or
action shall be brought against an Indemnified Party, and it shall notify the
Indemnifying Party thereof, the Indemnifying Party shall be entitled to
participate therein, and, to the extent that it wishes, jointly with any other
similarly notified Indemnifying Party, to assume the defense thereof with
counsel reasonably satisfactory to the Indemnified Party. After notice from the
Indemnifying Party to the Indemnified Party of its election to assume the
defense of such claim or action, the Indemnifying Party shall not be liable to
the Indemnified Party for any legal or other expenses subsequently incurred by
the Indemnified Party in connection with the defense thereof other than
reasonable costs of investigation; provided that the Indemnified Party shall
have the right to employ separate counsel to represent the Indemnified Party and
its Controlling Persons who may be subject to liability arising out of any claim
in respect to which indemnity may be sought by the Indemnified Party against the
Indemnifying Party, but the fees and expenses of such counsel shall be for the
account of such Indemnified Party unless (i) the Indemnifying Party and the
Indemnified Party shall have mutually agreed to the retention of such counsel or
(ii) in the opinion of counsel to such Indemnified Party, representation of both
parties by the same counsel would be inappropriate due to actual or potential
conflicts of interest between them, it being understood, however, that the
Indemnifying Party shall not, in connection with any one such claim or action or
separate but substantially similar or related claims or actions in the same
jurisdiction arising out of the same allegations or circumstances, be liable for
the fees and expenses of more than one separate firm of attorneys (together with
local counsel) at any time for all Indemnified Parties. No Indemnifying Party
shall, without the prior written consent of the Indemnified Party, effect any
settlement of any claim or pending or threatened proceeding in respect of which
the Indemnified Party is or could have been a party and indemnity could have
been sought hereunder by such Indemnified Party, and such settlement includes an
unconditional release of such Indemnified Party from all liability arising out
of such claim or proceeding. Whether or not the defense of any claim or action
is assumed by the Indemnifying Party, such Indemnifying Party will not be
subject to any liability for any settlements made without its consent, which
consent will not be unreasonably withheld. In all instances, the Indemnified
Party shall cooperate fully with the Indemnifying Party or its counsel in the
defense of each claim or action.

                                   ARTICLE 5.
                                 MISCELLANEOUS

         SECTION 5.1. PARTICIPATION IN UNDERWRITTEN REGISTRATIONS. No Person may
participate in any underwritten registration hereunder unless such Person (a)
agrees to sell such Person's securities on the basis provided in any
underwriting arrangements approved by the Persons entitled hereunder to approve
such arrangements, and (b) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements and these
registration rights.

         SECTION 5.2. RULE 144. The Company covenants that it will use its
reasonable best efforts to file any reports required to be filed by it under the
Securities Act and the Exchange Act

                                       10
<PAGE>   12

and that it will take such further action as any Holder may reasonably request,
all to the extent required from time to time to enable Holders to sell
Registrable Securities without registration under the Securities Act within the
limitation of the exemptions provided by (a) Rule 144 under the Securities Act,
or (b) any other applicable exemption from the registration requirements of the
Securities Act adopted by the Commission. Upon the request of any Holder, the
Company will deliver to such Holder a written statement as to whether it has
complied with such requirements.

         SECTION 5.3. AMENDMENT AND MODIFICATION. Any provision of this
Agreement may be waived, provided that such waiver is set forth in a writing
executed by the party against whom the enforcement of such waiver is sought.
This Agreement may not be amended, modified or supplemented other than by a
written instrument signed by the holders of at least a majority of the
Registrable Securities (calculated on an as converted basis). No course of
dealing between or among any Persons having any interest in this Agreement will
be deemed effective to modify, amend or discharge any part of this Agreement or
any rights or obligations of any Person under or by reason of this Agreement.

         SECTION 5.4. SUCCESSORS AND ASSIGNS; THIRD PARTY BENEFICIARIES. This
Agreement and all of the provisions hereof shall be binding upon and inure to
the benefit of the parties hereto, each subsequent Holder and their respective
successors and assigns and executors, administrators and heirs. Holders are
intended third party beneficiaries of this Agreement and this Agreement may be
enforced by such Holders.

         SECTION 5.5. ENTIRE AGREEMENT. This Agreement sets forth the entire
agreement and understanding between the parties as to the subject matter hereof
and merges and supersedes all prior discussions, agreements and understandings
of any and every nature among them.

         SECTION 5.6. HEADINGS. Subject headings are included for convenience
only and shall not affect the interpretation of any provisions of this
Agreement.

         SECTION 5.7. NOTICES. Any notice, demand, request, waiver, or other
communication under this Agreement shall be in writing and shall be deemed to
have been duly given on the date of service if personally served or sent by
confirmed telecopy, on the Business Day after notice is delivered to a courier
or mailed by express mail if sent by courier delivery service or express mail
for next day delivery and on the third day after mailing if mailed to the party
to whom notice is to be given, by first class mail, registered, return receipt
requested, postage prepaid and addressed to the following:

            If to the Company:                 Compass Knowledge Holdings, Inc.
                                               2710 Rew Circle, Suite 100
                                               Ocoee, FL  34761
                                               Attn:  Daniel J. Devine
                                               (407) 656-7585

            If to Stockholder:                 Michael Rutherford
                                               2123 Cricketwood Court
                                               Matthews, NC 28104

         SECTION 5.8. GOVERNING LAW: FORUM: PROCESS. This Agreement shall be
governed by and construed in accordance with the laws of the State of Florida,
without regard to any choice-of-law principles thereof.

                                       11
<PAGE>   13

         SECTION 5.9. CONSENT TO JURISDICTION, WAIVER OF IMMUNITIES. Subject to
the provisions of Section 5.8 hereof, (i) if the Holders commence any legal
proceedings arising out of or relating to this Agreement, the Holders hereby
submit to the exclusive jurisdiction of the United States District Courts for
the Middle District of Florida, Orlando Division and of any Florida State court
sitting in Orlando, Florida, for purposes of such legal proceedings, and (ii) if
the Company commences any legal proceedings arising out of or relating to this
Agreement, the Company hereby submits to the exclusive jurisdiction of the
United States District Courts for the Southern District of Ohio and of any Ohio
State court sitting in Cincinnati, Ohio, for purposes of such legal proceedings.
Each party to this Agreement hereby irrevocably waives, to the fullest extent
permitted by law, any objections which it may now or hereafter have to the
laying of the venue of any such proceeding brought in such a court and any claim
that any such proceeding brought in such a court has been brought in an
inconvenient forum.

         SECTION 5.10 RECAPITALIZATION, ETC. In the event that any securities
are issued in respect of, in exchange for, or in substitution of, any
Registrable Securities by reason of any reorganization, reclassification,
merger, consolidation, spin-off, partial or complete liquidation, stock
dividend, stock split, sale of assets, distribution to Stockholder or
combination of the shares of Registrable Securities or any other change in the
Company's capital structure, appropriate adjustments shall be made in the
percentages specified herein so as to fairly and equitably preserve as far as
practicable, the original rights and obligations of the parties hereto under
this Agreement, all in accordance with the terms and conditions set forth in the
Agreement.

         SECTION 5.11. COUNTERPARTS. This Agreement may be executed in
counterparts, each of which shall be deemed an original, and all of which taken
together shall constitute one and the same agreement.

         SECTION 5.12. SEVERABILITY. In the event that any one or more of the
immaterial provisions contained in this Agreement shall for any reason be held
to be invalid, illegal or unenforceable, the same shall not affect any other
provision of this Agreement, but this Agreement shall be construed in a manner
which, as nearly as possible, reflects the original intent of the parties.

         SECTION 5.13. NO PREJUDICE. The terms of this Agreement shall not be
construed in favor of or against any party on account of its participation in
the preparation hereof.

         SECTION 5.14. WORDS IN SINGULAR AND PLURAL FORM. Words used in the
singular form in this Agreement shall be deemed to import the plural, and vise
versa, as the sense may require.

         [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       12
<PAGE>   14

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement to
be effective as of the date set forth above.

WITNESSES:                                  COMPASS KNOWLEDGE HOLDINGS, INC.

                                            By:
--------------------------------               ---------------------------------
Print Name:
           ---------------------

                                            STOCKHOLDER

                                            /s/ MICHAEL RUTHERFORD
--------------------------------            ------------------------------------
Print Name:                                 Michael Rutherford
           ---------------------

                                       13<PAGE>   1

                                                                   Exhibit 10.18

                                   EXHIBIT "B"

                              EMPLOYMENT AGREEMENT
                                 BY AND BETWEEN
                         RUTHERFORD LEARNING GROUP, INC.
                                       AND
                               MICHAEL RUTHERFORD

                  THIS EMPLOYMENT AGREEMENT (the "Agreement") is executed on
July 28, 2000 to be effective as of August 1, 2000 (the "Commencement Date") by
and between Rutherford Learning Group, Inc., a North Carolina corporation (the
"Company"), and Michael Rutherford ("Employee").

                  WHEREAS, the Company is engaged in the distributed learning
business and other related businesses (such activities, present and future,
being hereinafter referred to as the "Business"); and

                  WHEREAS, the Company and Employee desire to enter into this
Agreement to memorialize their oral understanding, to assure the Company of the
services of Employee for the benefit of the Company and to set forth the
respective rights and duties of the parties hereto.

                  NOW, THEREFORE, in consideration of the premises and the
mutual covenants, terms and conditions set forth herein, the Company and
Employee agree as follows:

                                    ARTICLE I

                                   EMPLOYMENT

                  1.1 EMPLOYMENT AND TITLE. As of the Commencement Date, the
Company employs Employee, and Employee accepts such employment, as President of
the Company, all upon the terms and conditions set forth herein.

                  1.2 DUTIES. During the Initial Term and any Extended Terms (as
hereinafter defined) hereof, Employee shall faithfully perform his duties in
accordance with this Agreement and the Bylaws of the Company, serve the Company
faithfully and to the best of his ability and devote substantially all of his
business time and attention, knowledge, energy and skills to the Company.
Employee shall be responsible for such matters as assigned to him by the Chief
Executive Officer and/or the Board of Directors of the Company in accordance
with the Company's annual business plan, budget and assigned duties. Subject to
the directions of and limitations imposed by the Chief Executive Officer and/or
the Board of Directors of the Company, the Employee shall be responsible for
interpretation and executive implementation of the corporate policies for his
assigned area(s) and shall perform all the duties and have and exercise all
rights and powers usually pertaining and attributable, by law, custom, or
otherwise,

                                       1
<PAGE>   2

with respect thereto. Employee shall coordinate and supervise the activities of
all employees of the Company under his control.

         The foregoing will not be construed as preventing Employee from making
investments in other business or enterprises or civic or charitable activities
provided that (a) Employee agrees not to become engaged in any other business
activity that interferes with his ability to discharge his duties and
responsibilities to Employer and (b) Employee does not violate any other
provision of this Agreement.

                  1.3 LOCATION. The principal place of employment and the
location of Employee's principal office shall be in Charlotte, North Carolina,
or at such other location agreed upon by Employee and the Company; provided,
however, Employee shall, when requested by the Chief Executive Officer and/or
the Board of Directors of the Company, or may, if he determines it to be
reasonably necessary, temporarily perform outside of Charlotte, North Carolina
such services as are reasonably required for the proper execution of his duties
under this Agreement. In no event, however, shall Employee be required to
permanently relocate his principal place of employment or his principal
residence, without his consent.

                  1.4 REPRESENTATIONS. Each party represents and warrants to the
other that he/it has full power and authority to enter into and perform this
Agreement and that his/its execution and performance of this Agreement shall not
constitute a default under or breach of any of the terms of any agreement to
which he/it is a party or under which he/it is bound. Each party represents that
no consent or approval of any third party is required for his/its execution,
delivery and performance of this Agreement or that all consents or approvals of
any third party required for his/its execution, delivery and performance of this
Agreement have been obtained.

                                   ARTICLE II

                                      TERM

                  2.1 TERM. The term of Employee's employment hereunder (the
"Term") shall commence as of the Commencement Date and shall continue through
the third anniversary of the Commencement Date (the "Scheduled Termination
Date") unless renewed or earlier terminated pursuant to the provisions of this
Agreement. Assuming all conditions of this Agreement have been satisfied and
there has been no breach of the Agreement during its initial term, the parties
may agree to extend the term ("Extended Term").

                                   ARTICLE III

                                  COMPENSATION

                  3.1 SALARY. As compensation for the services to be rendered by
Employee, the Company shall pay Employee, during the Term of this Agreement, an
annual base salary of not less

                                       2
<PAGE>   3

than Seventy-five Thousand Dollars ($75,000), which base salary shall accrue
monthly (prorated for periods less than a month) and shall be paid in equal
bi-monthly installments, in arrears or as the Employee and the Company otherwise
agree. The base salary will be reviewed annually, or as appropriate, by the
Chief Executive Officer and the Board of Directors of the Company. At any time
the base salary may be increased for the remaining portion of the Term if so
determined by the Chief Executive Officer and Board of Directors of the Company
after a review of Employee's performance of his duties.

                  3.2 BONUSES. The Company may pay the Employee an annual bonus
(the "Annual Bonus") as determined by the Chief Executive Officer and Board of
Directors of the Company. The Annual Bonus, if any, shall be payable within
ninety (90) days after the end of the most recent fiscal year to which the Bonus
relates.

                  3.3 NONQUALIFIED STOCK OPTIONS. The Company may, subject to
the discretion of the Compensation Committee of Compass Knowledge Holdings, Inc.
("CKHI"), grant to Employee nonqualified options to acquire shares of CKHI
common stock (the "Option Shares").

                  3.4 BENEFITS. Employee shall be entitled, during the Term
hereof, to the same medical, hospital, pension, profit sharing, long-term
disability coverage, dental and life insurance coverage and benefits as are
available to CKHI's vice-presidents on the Commencement Date together with the
following additional benefits:

                  (a) The Company's normal vacation allowance for all employees
         who are executive officers of the Company, but not less than four (4)
         weeks annually, with the option to carry over unused vacation days.

                  (b) The Employee will be entitled to participate in any
          benefit plan or program of the Company which may currently be in place
          or implemented in the future.

                  (c) During the Term, Employee will be entitled to receive, in
         addition to and not in lieu of base salary, bonus or other
         compensation, such as other benefits as Company may provide for its
         officers in the future.

                  3.5 WITHHOLDING. Any and all amounts payable under this
Agreement, including, without limitation, amounts payable under this Article III
and Article VII, which are subject to withholding for such federal, state and
local taxes as the Company, in its reasonable judgment, determines to be
required pursuant to any applicable law, rule or regulation.

                                   ARTICLE IV

                   WORKING FACILITIES, EXPENSES AND INSURANCE

                  4.1 WORKING FACILITIES AND EXPENSES. Employee shall be
furnished with an office at the principal executive offices of the Company, or
at such other location as agreed to by

                                       3
<PAGE>   4

Employee and the Company, and other working facilities and secretarial and other
assistance suitable to his position and reasonably required for the performance
of his duties hereunder. The Company shall reimburse Employee for all of
Employee's reasonable expenses incurred while employed and performing his duties
under and in accordance with the terms and conditions of this Agreement, subject
to Employee's full and appropriate documentation, including, without limitation,
receipts for all such expenses in the manner required pursuant to Company's
policies and procedures and the Internal Revenue Code of 1986, as amended (the
"Code") and applicable regulations as are in effect from time to time.

                  4.2 INSURANCE. The Company may secure in its own name or
otherwise, and at its own expense, life, disability and other insurance covering
Employee or Employee and others, and Employee shall not have any right, title or
interest in or to such insurance other than as expressly provided herein.
Employee agrees to assist the Company in procuring such insurance by submitting
to the usual and customary medical and other examinations to be conducted by
such physicians(s) as the Company or such insurance company may designate and by
signing such applications and other written instruments as may be required by
any insurance company to which application is made for such insurance.

                                    ARTICLE V

                              ILLNESS OR INCAPACITY

                  5.1 RIGHT TO TERMINATE. If, during the Term of this Agreement,
Employee shall be unable to perform in all material respects his duties
hereunder for a period exceeding six (6) consecutive months by reason of illness
or incapacity, this Agreement may be terminated by the Company in its reasonable
discretion pursuant to Section 7.2 hereof.

                  5.2 RIGHT TO REPLACE. If Employee's illness or incapacity,
whether by physical or mental cause, renders him unable for a minimum period of
sixty (60) consecutive calendar days to carry out his duties and
responsibilities as set forth herein, the Company shall have the right to
designate a person to replace Employee temporarily in the capacity described in
Article I hereof; provided, however, that if Employee returns to work from such
illness or incapacity within the six (6) month period following his inability
due to such illness or incapacity, he shall be entitled to be reinstated in the
capacity described in Article I hereof with all rights, duties and privileges
attendant thereto.

                  5.3 RIGHTS PRIOR TO TERMINATION. Employee shall be entitled to
his full remuneration and benefits hereunder during such illness or incapacity
unless and until an election is made by the Company to terminate this Agreement
in accordance with the provisions of this Article.

                  5.4 DETERMINATION OF ILLNESS OR INCAPACITY. For purposes of
this Article V, the term "illness or incapacity" shall mean Employee's inability
to perform his duties hereunder substantially on a full-time basis due to
physical or mental illness as determined by a physician

                                       4
<PAGE>   5

selected by the Company and the Employee.

                                   ARTICLE VI

                    CONFIDENTIALITY AND INTELLECTUAL PROPERTY

                  6.1 CONFIDENTIALITY. During the Term of this Agreement and
thereafter, Employee shall not divulge, communicate, use to the detriment of the
Company, or for the benefit of any other business, firm, person, partnership or
corporation, or otherwise misuse, any "Confidential Information", pertaining to
the Company including (except as may be required under legal process by subpoena
or other court order; provided that Employee will take reasonable steps to give
the Company sufficient prior written notice in order to contest such requirement
or order), without limitation, all (i) data or trade secrets, including secret
processes, formulas or other technical data; (ii) production methods; (iii)
customer lists; (iv) personnel lists; (v) proprietary information; (vi)
financial or corporate records; (vii) operational, sales, promotional and
marketing methods and techniques; (viii) development ideas, acquisition
strategies and plans; (ix) financial information and records; (x) "know-how" and
methods of doing business; and (xi) computer programs, including source codes
and/or object codes and other proprietary, competition-sensitive or technical
information or secrets developed with or without the help of Employee. Employee
acknowledges that any such information or data he may have acquired was received
in confidence and by reason of his relationship to the Company. Confidential
Information, data or trade secrets shall not include any information which: (a)
at the time of disclosure is within the public domain or is generally known
within the industry; (b) after disclosure becomes a part of the public domain or
generally known within the industry through no fault, act or failure to act,
error, effort or breach of this Agreement by Employee; (c) is known to the
recipient at the time of disclosure; (d) is subsequently discovered by Employee
independently of any disclosure by the Company; (e) is required by order,
statute or regulation, of any governmental authority to be disclosed to any
federal or state agency, court or other body; or (f) is obtained from a third
party who has acquired a legal right to possess and disclose such information.
Notwithstanding anything in this Agreement to the contrary, this Section 6.1
shall have no application during the period following the Term of this Agreement
in the event that this Agreement is terminated by the Employee pursuant to
Section 7.2(d) or (e) of this Agreement.

                  6.2 RECORDS. All documents, papers, materials, notes, books,
correspondence, drawings and other written and graphic records relating to the
Business of the Company which Employee shall prepare or use, or come into
contact with, shall be and remain the sole property of the Company and,
effective immediately upon the termination of the Employee's employment with the
Company for any reason, shall not be removed from the Company's premises without
the Company's prior written consent and any such documents, papers, materials,
notes, books, correspondence, drawings and other written and graphic records in
his possession or under his control shall be immediately returned to the
Company.

                  6.3 IDEAS AND INVENTIONS. Employee agrees to assign to the
Company all

                                       5
<PAGE>   6

Employee's right, title and interest in or to any and all ideas, concepts,
know-how, techniques, processes, methods, applications, inventions, discoveries,
developments, innovations and improvements ("Inventions") which relate in any
respect to the Company, its parent company or their subsidiaries or their
businesses as they now or hereafter exist which Employee conceives, creates,
designs, develops and/or makes, whether alone or with others, during Employee's
employment with the Company. Employee agrees to disclose all such Inventions to
the Company promptly, and to provide all assistance reasonably requested by the
Company in the preservation of its interests in the Inventions, such as by
executing documents, testifying, etc., such assistance to be provided at the
Company's expense but without any additional compensation to Employee, unless
Employee is called upon to render such assistance after the termination of this
Agreement for any reason, at which time Employee shall be entitled to a fair and
reasonable rate of compensation for such assistance and provided that any such
assistance shall not unreasonably interfere with any business or other
activities in which Employee may be engaged. Employee shall, at the request and
expense of the Company, assist the Company or its nominees to obtain patents for
such Inventions for which the Company, its parent company or their subsidiaries
has or obtains any right, title or interest in any countries throughout the
world. Such Inventions shall be the property of the Company or its nominees,
whether patented or not. Employee shall and does, without charge to the Company,
assign to the Company, all Employee's right, title, and interest in and to such
Inventions, including without limitation patents and patent applications and
reissues thereof. Employee agrees to execute, acknowledge, and deliver any
instruments confirming the complete ownership by the Company of such Inventions.
Such assignments shall include the right to sue for infringement.

                  6.4. COPYRIGHTS. Employee agrees that any Invention or other
work (collectively hereinafter called "Work") prepared, developed or produced by
Employee during his employment with the Company, whether alone or with others,
and which relates in any respect to the Company, its parent company or their
subsidiaries or their businesses and for which is eligible for copyright
protection in the United States or elsewhere shall be a work made for hire. If
any such Work is deemed for any reason not to be a work made for hire, Employee
shall assign all right, title and interest in the copyright in such Work, and
all extensions and renewals thereof, to Company, and agrees to provide all
assistance reasonably requested by Company in the establishment, preservation
and enforcement of its copyright in such Work, such assistance to be provided at
Company's expense but without any additional compensation to Employee, unless
Employee is called upon to render such assistance after the termination of this
Agreement for any reason, at which time Employee shall be entitled to a fair and
reasonable rate of compensation for such assistance and provided that any such
assistance shall not unreasonably interfere with any business or other
activities in which Employee may be engaged. Employee agrees to waive all moral
rights relating to the Work developed or produced, including without limitation
any and all rights of identification of authorship and any and all rights of
approval, restriction or limitation on use or subsequent modifications.

                                       6
<PAGE>   7

                                   ARTICLE VII

                                   TERMINATION

                  7.1 TERMINATION FOR CAUSE. This Agreement and the employment
of Employee may be terminated by the Company "For Cause" under any one of the
following circumstances:

                  (a) Employee has committed any material act of fraud,
         misappropriation or theft against the Company.

                  (b) Employee's default breach of any material provision of
         this Agreement; provided, that Employee shall not be in default
         hereunder unless (i) he shall have failed to cure such default or
         breach within thirty (30) days of written notice thereof by the Company
         to Employee or (ii) Employee shall have duly received notice of at
         least three (3) prior instances of such breach or default (whether or
         not cured by Employee).

                  (c) Employee engages in gross negligence, malfeasance or
         willful misconduct in the performance of his duties hereunder;
         provided, that Employee shall not be in default hereunder unless (i) he
         shall have failed to cure such default or breach within fifteen (15)
         days of written notice thereof by the Company to Employee, or (ii)
         Employee shall have duly received notice of at least three (3) prior
         instances of such breach or default (whether or not cured by Employee).

                  (d) At the election of the Employee (except for an election
         pursuant to Section 7.2(d) or (e) of this Agreement).

                  (e) The conviction (or plea of no contest) of Employee of a
         crime involving moral turpitude (not including driving while under the
         influence of alcohol unless Employee is convicted on more than one
         occasion or if he is incarcerated for more than 45 days) by a court of
         competent jurisdiction as to which no further appeal can be taken.

                  (f) The willful, continued and unreasonable failure by
         Employee to comply in all material respects with the Company's written
         conflict of interest policy, previously made known to Employee, if any,
         then in effect provided that (i) Employee shall not be in default
         hereunder unless he shall have failed to cure such default within
         thirty (30) days of written notice thereof by the Company to the
         Employee or (ii) Employee shall have received written notice of at
         least three prior instances of such breach or default (whether or not
         cured by Employee).

                  (g) The knowing engagement in any activity which would
         constitute a material violation of the provisions of the Company's
         insider trading policy or business ethics policy, if any, then in
         effect and previously made known to Employee.

                                       7
<PAGE>   8

                  (h) At the election of the Company upon Employee's breach of
         any material provision of that certain Agreement and Plan of Stock
         Purchase by and among Compass Knowledge Holdings, Inc., Compass
         Acquisition Corp., and Michael Rutherford of even date herewith (the
         "Stock Purchase Agreement"); provided, that Employee shall not be in
         default under the Stock Purchase Agreement unless (i) he shall have
         failed to cure such default or breach within thirty (30) days of
         written notice thereof by the Company or CKHI to Employee, or (ii)
         Employee shall have duly received notice of at least three (3) prior
         instances of such breach or default (whether or not cured by Employee.

                  A termination For Cause under this Section 7.1 shall be
         effective upon the date set forth in a written notice of termination
         delivered by the Company to Employee.

                  7.2 TERMINATION WITHOUT CAUSE. This Agreement and the
employment of the Employee may be terminated "Without Cause" as follows:

                  (a) By mutual agreement of the parties hereto.

                  (b) At the election of the Company by its giving not less than
         sixty (60) days prior written notice to Employee in the event of an
         illness or incapacity described in Article 5.1.

                  (c) Upon Employee's death.

                  (d) At the election of Employee upon the Company's default or
         breach of any material provision of this Agreement; provided, that the
         Company shall not be in default hereunder unless (i) it shall have
         failed to cure such default or breach within thirty (30) days of
         written notice thereof by the Employee to the Company or (ii) the
         Company shall have duly received notice of at least three (3) prior
         instances of such breach or default (whether or not cured by the
         Company).

                  (e) At the election of Employee upon the Company's or CKHI's
         breach of any material provision of the Stock Purchase Agreement;
         provided, that the Company or CKHI, as the case may be, shall not be in
         default under the Stock Purchase Agreement unless (i) it shall have
         failed to cure such default or breach within thirty (30) days of
         written notice thereof by the Employee to the Company or CKHI, as the
         case may be, or (ii) the Company or CKHI, as the case may be, shall
         have duly received notice of at least three (3) prior instances of such
         breach or default (whether or not cured by the Company or CKHI).

                  A termination Without Cause under Section 7.2(b), 7.2(d) or
7.2(e) hereof shall be effective upon the date set forth in a written notice of
termination delivered in accordance with the notice provisions of such sections.
A termination Without Cause under Sections 7.2(a) or (c) shall

                                       8
<PAGE>   9

be automatically effective upon the date of mutual agreement or the date of
death of the Employee, as the case may be.

                  7.3 EFFECT OF TERMINATION FOR CAUSE. If Employee's employment
is terminated "For Cause":

                  (a) Employee shall be entitled to accrued base salary under
         Section 3.1 hereof through the date of termination.

                  (b) Employee shall be entitled to accrued bonuses, if any,
         under Section 3.2 and benefits under Section 3.4 hereof through the
         date of termination subject to any right to continue said benefits at
         Employee's cost as provided by law and as provided in any benefit plan
         in which Employee is a participant.

                  (b) Employee shall be entitled to reimbursement for expenses
         accrued through the date of termination in accordance with the
         provisions of Section 4.1 hereof.

                  (c) All unvested Option Shares, if any, under Section 3.3
         hereof shall be immediately forfeited.

                  (d) Employee shall be required to repay the Acquisition
         Consideration (as that term is defined in that certain Agreement and
         Plan of Stock Purchase between CKHI, the Company, and Employee and
         others of even date herewith) which Employee received at the Closing
         with respect to such transaction. For purposes of this section, the
         CKHI Stock which the Employee received shall be valued as described in
         Section 9.3.11 of the said Agreement and Plan of Stock Purchase.

                  (e) Except as provided in Article XI, this Agreement shall
         thereupon terminate and cease to be of any further force or effect.

                  7.4 EFFECT OF TERMINATION WITHOUT CAUSE. If Employee's
employment is terminated "Without Cause":

                  (a) Employee shall be entitled to (i) one (1) year's base
         salary, or (ii) the base salary for the remaining Term of this
         Agreement, if less than one (1) year.

                  (b) Employee shall be entitled to reimbursement for expenses
         accrued through the date of termination in accordance with the
         provisions of Section 4.1 hereof.

                  (c) Employee shall be entitled to accrued bonuses under
         Section 3.2 and benefits under Section 3.4 hereof through the date of
         termination, subject to any right to continue said benefits at
         Employee's cost as provided by law and as provided in any benefit plan
         in which Employee is a participant.

                                       9
<PAGE>   10

                  (d) All unvested Option Shares under Section 3.3 hereof shall
         immediately vest in full.

                  (e) Except as provided in Article X, this Agreement shall
         thereupon terminate and cease to be of any further force or effect.

                                  ARTICLE VIII

                      NON-COMPETITION AND NON-INTERFERENCE

         8.1 NONCOMPETITION; NONSOLICITATION. As an inducement to the Company to
execute this Agreement and in order to preserve the goodwill associated with the
business of the Company, its parent company and their subsidiaries and in
addition to and not in limitation of any covenants contained in any agreements
executed and delivered herewith, Employee hereby covenants and agrees as
follows:

                  (a) COVENANT NOT TO COMPETE. During the term of this Agreement
         and for a period of two (2) years after the effective date of a
         Termination For Cause, Employee will not directly or indirectly, within
         the Territory, act as an officer, manager, executive, consultant,
         advisor or agent or controlling shareholder, partner or member to any
         business or otherwise engage in any business which is, , competitive,
         either directly or indirectly, with the Business, as defined herein,
         nor shall employee become employed by such a business in a capacity
         which would require Employee to carry out, in whole or in part, either
         directly or indirectly, the duties Employee has performed or is
         expected to perform for the Company or which are competitive with the
         Business or otherwise engage in any practice the purpose of which is to
         evade the provisions of this covenant not to compete or to commit any
         act which adversely affects the Company, its parent company and their
         subsidiaries or their business. For purposes of this Article VIII, the
         "Business" shall be defined as creating, designing, developing, owning,
         leasing and/or operating distributed learning and education business
         and other related businesses as are being conducted by the Company (or
         such business as is under development) at the time of such termination.
         For purposes of this Article VIII, the "Territory" shall be defined as
         the United States of America.

                  (b) NONSOLICITATION; EMPLOYEES. Employee agrees that during
         the Term of this Agreement and for two (2) years after the effective
         date of a Termination For Cause, Employee will not offer employment to
         any person who was employed by the Company, CKHI or its subsidiaries as
         of the effective date of a Termination For Cause without the prior
         written consent of the Company.

                  (c) NONSOLICITATION; CUSTOMERS. Employee agrees that, during
         the Term of this Agreement and for two (2) years after the effective
         date of a Termination For Cause, Employee will not solicit customers or
         clients of the Company, its parent company or

                                       10
<PAGE>   11

         their subsidiaries, with a view to interfering or competing with the
         business of the Company, its parent company or their subsidiaries or
         providing any product or service that is provided by the Company, its
         parent company or their subsidiaries.

                  Notwithstanding the foregoing, if Employee (after termination
         of his employment with the Company) shall develop other educational
         programs, services or products that may be marketed to school districts
         and said programs, services or products are not substantially similar
         to programs, services and products marketed by the Company, CKHI or its
         subsidiaries during Employee's term of employment ("Non-competing
         Products"), it shall not violate this Covenant Not to Compete if
         Employee to markets said Non-competing Products and solicits the
         Company's customers. Additionally, the restrictive covenants shall not
         prohibit the ownership of securities of corporations which are listed
         on a national securities exchange or traded in the national
         over-the-counter market in an amount which shall not exceed 5% of the
         outstanding shares of any such corporation. The parties agree that the
         Company may sell, assign or otherwise transfer this covenant not to
         compete, in whole or in part, to any person, corporation, firm or
         entity that purchases all or substantially all of the Company's assets
         or stock (and assumes the obligations of the Company). In the event a
         court of competent jurisdiction determines that the provisions of the
         restrictive covenants are excessively broad as to duration,
         geographical scope or activity, it is expressly agreed that the
         restrictive covenants shall be construed so that the remaining
         provisions shall not be affected, but shall remain in full force and
         effect, and any such over broad provisions shall be deemed, without
         further action on the part of any person, to be modified, amended
         and/or limited, but only to the extent necessary to render the same
         valid and enforceable in such jurisdiction.

                  8.2. EQUITABLE RELIEF FOR VIOLATIONS. Employee agrees that the
provisions and restrictions contained in this Section are necessary to protect
the legitimate continuing interests of the Company, its parent company and their
subsidiaries and that any violation or breach of these provisions will result in
irreparable injury to the Company, its parent company and their subsidiaries for
which a remedy at law would be inadequate and that, in addition to any relief at
law which may be available to the Company, its parent company or their
subsidiaries for such violation or breach and regardless of any other provision
contained in this Agreement, the Company, its parent company and their
subsidiaries shall be entitled to injunctive and other equitable relief as a
court may grant after considering the intent of this Section.

                                   ARTICLE IX

                                  MISCELLANEOUS

                  9.1 NO WAIVERS. The failure of either party to enforce any
provision of this Agreement shall not be construed as a waiver of any such
provision, nor prevent such party thereafter from enforcing such provision or
any other provision of this Agreement.

                                       11
<PAGE>   12

                  9.2 NOTICES. Any notice to be given to the Company and
Employee under the terms of this Agreement may be delivered personally, by
telecopy, telex or other form of written electronic transmission, or by
registered or certified mail, postage prepaid, and shall be addressed as
follows:

         IF TO THE COMPANY:                    2710 Rew Circle
                                               Suite 100
                                               Ocoee, Florida  34761
                                               Attn:  Rogers W. Kirven, Jr.
                                               Fax: (407) 656-7585

         IF TO EMPLOYEE:                       2123 Cricketwood Court
                                               Matthews, NC 28104

         Either party may hereafter notify the other in writing of any change in
address. Any notice shall be deemed duly given (i) when personally delivered,
(ii) when telecopied, telexed or transmitted by other form of written electronic
transmission (upon confirmation of receipt) or (iii) on the third day after it
is mailed by registered or certified mail, postage prepaid, as provided herein.

                  9.3 SEVERABILITY. The provisions of this Agreement are
severable and if any provision of this Agreement shall be held to be invalid or
otherwise unenforceable, in whole or in part, the remainder of the provisions,
or enforceable parts thereof, shall not be affected thereby.

                  9.4 SUCCESSORS AND ASSIGNS. The rights and obligations of the
Company under this Agreement shall inure to the benefit of and be binding upon
the successors and assigns of the Company, including the survivor upon any
merger, consolidation, share exchange or combination of the Company with any
other entity. Except as provided in the preceding sentence, neither the Company
or Employee shall not have the right to assign, delegate or otherwise transfer
any duty or obligation to be performed by it or him hereunder to any person or
entity.

                  9.5 ENTIRE AGREEMENT. This Agreement supersedes all prior and
contemporaneous agreements and understandings between the parties hereto, oral
or written, and may not be modified or terminated orally. No modification,
termination or attempted waiver shall be valid unless in writing, signed by the
party against whom such modification, termination or waiver is sought to be
enforced. This Agreement was the subject of negotiation by the parties hereto
and their counsel. The parties agree that no prior drafts of this Agreement
shall be admissible as evidence (whether in any arbitration or court of law) in
any proceeding which involves the interpretation of any provisions of this
Agreement.

                  9.6 GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Florida without
reference to the conflict of law principles thereof.

                                       12
<PAGE>   13

                  9.7 SECTION HEADINGS. The section headings contained herein
are for the purposes of convenience only and are not intended to define or limit
the contents of said sections.

                  9.8 FURTHER ASSURANCES. Each party hereto shall cooperate and
shall take such further action and shall execute and deliver such further
documents as may be reasonably requested by the other party in order to carry
out the provisions and purposes of this Agreement.

                  9.9 GENDER. Whenever the pronouns "he" or "his" are used
herein they shall also be deemed to mean "he" or "his" or "it" or "its" whenever
applicable. Words in the singular shall be read and construed as though in the
plural and words in the plural shall be read and construed as though in the
singular in all cases where they would so apply.

                  9.10 COUNTERPARTS. This Agreement may be executed in
counterparts, all of which taken together shall be deemed one original.

                  9.11 INDEMNIFICATION. The Company shall be to the fullest
extent permitted by law indemnify, defend and hold harmless Employee from and
against any and all claims, demands, liabilities, damages, losses and expenses
(including reasonable attorneys fees, court costs and disbursements) arising out
of the performance by him of his duties hereunder except in the case of his
willful misconduct or actions by Employee outside the scope of his
responsibilities and duties as set forth herein. The Company will carry
directors and officers insurance with limits of not less than $50,000.

                                    ARTICLE X

                                    SURVIVAL

                  10.1 SURVIVAL. The provisions of Articles VI, VII, VIII, and
IX, of this Agreement shall survive the termination of this Agreement.

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

                                                Rutherford Learning Group, Inc.
                                                a North Carolina corporation,

                                                By:
                                                   -----------------------------
                                                Title:
                                                      --------------------------

                                                EMPLOYEE

                                                /s/ MICHAEL RUTHERFORD
                                                -----------------------------
                                                Michael Rutherford

                                       13

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