Document:

EX-10.1

EXHIBIT 10.1

Master Repurchase

Agreement

Dated as of: June 14, 2005

Between: ValueClick, Inc.

and Wachovia Securities, LLC, on behalf of itself and its clearing affiliate, First Clearing, LLC.

1. Applicability

From time to time the parties hereto may enter into transactions in which one party (“Seller”)
agrees to transfer to the other (“Buyer”) securities or other assets (“Securities”) against the
transfer of funds by Buyer, with a simultaneous agreement by Buyer to transfer to Seller such
Securities at a date certain or on demand, against the transfer of funds by Seller. Each such
transaction shall be referred to herein as a “Transaction” and, unless otherwise agreed in writing,
shall be governed by this Agreement, including any supplemental terms or conditions contained in
Annex I hereto and in any other annexes identified herein or therein as applicable hereunder.

2. Definitions

(a) “Act of Insolvency”, with respect to any party, (i) the commencement by such party as debtor of
any case or proceeding under any bankruptcy, insolvency, reorganization, liquidation, moratorium,
dissolution, delinquency or similar law, or such party seeking the appointment or election of a
receiver, conservator, trustee, custodian or similar official for such party or any substantial
part of its property, or the convening of any meeting of creditors for purposes of commencing any
such case or proceeding or seeking such an

appointment or election, (ii) the commencement of any such case or proceeding against such party,
or another seeking such an appointment or election, or the filing against a party of an application
for a protective decree under the provisions of the Securities Investor Protection Act of 1970,
which (A) is consented to or not timely contested by such party, (B) results in the entry of an
order for relief, such an appointment or election, the issuance of such a protective decree or the
entry of an order having a similar effect, or (C) is not dismissed within 15 days, (iii) the making
by such party of a general assignment for

the benefit of creditors, or (iv) the admission in writing by such party of such party’s inability
to pay such party’s debts as they become due;

(b) “Additional Purchased Securities”, Securities provided by Seller to Buyer pursuant to Paragraph
4(a) hereof;

(c) “Buyer’s Margin Amount”, with respect to any Transaction as of any date, the amount obtained by
application of the Buyer’s Margin Percentage to the Repurchase Price for such Transaction as of
such date;

(d) “Buyer’s Margin Percentage”, with respect to any Transaction as of any date, a percentage
(which may be equal to the Seller’s Margin Percentage) agreed to by Buyer and Seller or, in the
absence of any such agreement, the percentage obtained by dividing the Market Value of the
Purchased Securities on the Purchase Date by the Purchase Price on the Purchase Date for such
Transaction;

(e) “Confirmation”, the meaning specified in Paragraph 3(b) hereof;

(f) “Income”, with respect to any Security at any time, any principal thereof and all interest,
dividends or other distributions thereon;

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(g) “Margin Deficit”, the meaning specified in Paragraph 4(a) hereof;

(h) “Margin Excess”, the meaning specified in Paragraph 4(b) hereof;

(i) “Margin Notice Deadline”, the time agreed to by the parties in the relevant Confirmation, Annex
I hereto or otherwise as the deadline for giving notice requiring same-day satisfaction of margin
maintenance obligations as provided in Paragraph 4 hereof (or, in the absence of any such
agreement, the deadline for such purposes established in accordance with market practice);

(j) “Market Value”, with respect to any Securities as of any date, the price for such Securities on
such date obtained from a generally recognized source agreed to by the parties or the most recent
closing bid quotation from such a source, plus accrued Income to the extent not included therein
(other than any Income credited or transferred to, or applied to the obligations of, Seller
pursuant to Paragraph 5 hereof) as of such date (unless contrary to market practice for such
Securities);

(k) “Price Differential”, with respect to any Transaction as of any date, the aggregate amount
obtained by daily application of the Pricing Rate for such Transaction to the Purchase Price for
such Transaction on a 360 day per year basis for the actual number of days during the period
commencing on (and including) the Purchase Date for such Transaction and ending on (but excluding)
the date of determination (reduced by any amount of such Price Differential previously paid by
Seller to Buyer with respect to such Transaction);

(l) “Pricing Rate”, the per annum percentage rate for determination of the Price Differential;

(m) “Prime Rate”, the prime rate of U.S. commercial banks as published in The Wall Street Journal
(or, if more than one such rate is published, the average of such rates);

(n) “Purchase Date”, the date on which Purchased Securities are to be transferred by Seller to
Buyer;

(o) “Purchase Price”, (i) on the Purchase Date, the price at which Purchased Securities are
transferred by Seller to Buyer, and (ii) thereafter, except where Buyer and Seller agree otherwise,
such price increased by the amount of any cash transferred by Buyer to Seller pursuant to Paragraph
4(b) hereof and decreased by the amount of any cash transferred by Seller to Buyer pursuant to
Paragraph 4(a) hereof or applied to reduce Seller’s obligations under clause (ii) of Paragraph 5
hereof;

(p) “Purchased Securities”, the Securities transferred by Seller to Buyer in a Transaction
hereunder, and any Securities substituted therefore in accordance with Paragraph 9 hereof. The term
“Purchased Securities” with respect to any Transaction at any time also shall include Additional
Purchased Securities delivered pursuant to Paragraph 4(a) hereof and shall exclude Securities
returned pursuant to Paragraph 4(b) hereof;

(q) “Repurchase Date”, the date on which Seller is to repurchase the Purchased Securities from
Buyer, including any date determined by application of the provisions of Paragraph 3(c) or 11
hereof;

(r) “Repurchase Price”, the price at which Purchased Securities are to be transferred from Buyer to
Seller upon termination of a Transaction, which will be determined in each case (including
Transactions terminable upon demand) as the sum of the Purchase Price and the Price Differential as
of the date of such determination;

(s) “Seller’s Margin Amount”, with respect to any Transaction as of any date, the amount obtained
by application of the Seller’s Margin Percentage to the Repurchase Price for such Transaction as of
such date;

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(t) “Seller’s Margin Percentage”, with respect to any Transaction as of any date, a percentage
(which may be equal to the Buyer’s Margin Percentage) agreed to by Buyer and Seller or, in the
absence of any such agreement, the percentage obtained by dividing the Market Value of the
Purchased Securities on the Purchase Date by the Purchase Price on the Purchase Date for such
Transaction.

3. Initiation; Confirmation; Termination

(a) An agreement to enter into a Transaction may be made orally or in writing at the initiation of
either Buyer or Seller. On the Purchase Date for the Transaction, the Purchased Securities shall be
transferred to Buyer or its agent against the transfer of the Purchase Price to an account of
Seller.

(b) Upon agreeing to enter into a Transaction hereunder, Buyer or Seller (or both), as shall be
agreed, shall promptly deliver to the other party a written confirmation of each Transaction (a
“Confirmation”). The Confirmation shall describe the Purchased Securities (including CUSIP number,
if any), identify Buyer and Seller and set forth (i) the Purchase Date, (ii) the Purchase Price,
(iii) the Repurchase Date, unless the Transaction is to be terminable on demand, (iv) the Pricing
Rate or Repurchase Price applicable to the Transaction, and (v) any additional terms or conditions
of the Transaction not inconsistent with this

Agreement. The Confirmation, together with this Agreement, shall constitute conclusive evidence of
the terms agreed between Buyer and Seller with respect to the Transaction to which the Confirmation
relates, unless with respect to the Confirmation specific objection is made promptly after receipt
thereof. In the event of any conflict between the terms of such Confirmation and this Agreement,
this Agreement shall prevail.

(c) In the case of Transactions terminable upon demand, such demand shall be made by Buyer or
Seller, no later than such time as is customary in accordance with market practice, by telephone or
otherwise on or prior to the business day on which such termination will be effective. On the date
specified in such demand, or on the date fixed for termination in the case of Transactions having a
fixed term, termination of the

Transaction will be effected by transfer to Seller or its agent of the Purchased Securities and any
Income in respect thereof received by Buyer (and not previously credited or transferred to, or
applied to the obligations of, Seller pursuant to Paragraph 5 hereof) against the transfer of the
Repurchase Price to an account of Buyer.

4. Margin Maintenance

(a) If at any time the aggregate Market Value of all Purchased Securities subject to all
Transactions in which a particular party hereto is acting as Buyer is less than the aggregate
Buyer’s Margin Amount for all such Transactions (a “Margin Deficit”), then Buyer may by notice to
Seller require Seller in such Transactions, at Seller’s option, to transfer to Buyer cash or
additional Securities reasonably acceptable to Buyer (“Additional Purchased Securities”), so that
the cash and aggregate Market Value of the Purchased Securities, including any such Additional
Purchased Securities, will thereupon equal or exceed such

aggregate Buyer’s Margin Amount (decreased by the amount of any Margin Deficit as of such date
arising from any Transactions in which such Buyer is acting as Seller).

(b) If at any time the aggregate Market Value of all Purchased Securities subject to all
Transactions in which a particular party hereto is acting as Seller exceeds the aggregate Seller’s
Margin Amount for all such Transactions at such time (a “Margin Excess”), then Seller may by notice
to Buyer require Buyer in such Transactions, at Buyer’s option, to transfer cash or Purchased
Securities to Seller, so that the aggregate Market Value of the Purchased Securities, after
deduction of any such cash or any Purchased Securities so transferred, will thereupon not exceed
such aggregate Seller’s Margin Amount (increased

by the amount of any Margin Excess as of such date arising from any Transactions in which such
Seller is acting as Buyer).

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(c) If any notice is given by Buyer or Seller under subparagraph (a) or (b) of this Paragraph
at or before the Margin Notice Deadline on any business day, the party receiving such notice shall
transfer cash or Additional Purchased Securities as provided in such subparagraph no later than the
close of business in the relevant market on such day. If any such notice is given after the Margin
Notice Deadline, the party receiving such notice shall transfer such cash or Securities no later
than the close of business in the relevant market on the next business day following such notice.

(d) Any cash transferred pursuant to this Paragraph shall be attributed to such Transactions and
shall be agreed upon by Buyer and Seller.

(e) Seller and Buyer may agree, with respect to any or all Transactions hereunder, that the
respective rights of Buyer or Seller (or both) under subparagraphs (a) and (b) of this Paragraph
may be exercised only where a Margin Deficit or Margin Excess, as the case may be, exceeds a
specified dollar amount or a specified percentage of the Repurchase Prices for such Transactions
(which amount or percentage shall be agreed to by Buyer and Seller prior to entering into any such
Transactions).

(f) Seller and Buyer may agree, with respect to any or all Transactions hereunder, that the
respective rights of Buyer and Seller under subparagraphs (a) and (b) of this Paragraph to require
the elimination of a Margin Deficit or a Margin Excess, as the case may be, may be exercised
whenever such a Margin Deficit or Margin Excess exists with respect to any single Transaction
hereunder (calculated without regard to any other Transaction outstanding under this Agreement).

5. Income Payments

Seller shall be entitled to receive an amount equal to all Income paid or distributed on or in
respect of the Securities that is not otherwise received by Seller, to the full extent it would be
so entitled if the Securities had not been sold to Buyer. Buyer shall, as the parties may agree
with respect to any Transaction (or, in the absence of any such agreement, as Buyer shall
reasonably determine in its discretion), on the date such Income is paid or distributed either (i)
transfer to or credit to the account of Seller such Income with respect to any Purchased Securities
subject to such Transaction or (ii) with respect to Income paid in cash, apply the Income payment
or payments to reduce the amount, if any, to be transferred to Buyer by Seller upon termination of
such Transaction. Buyer shall not be obligated to take any action pursuant to the preceding
sentence (A) to the extent that such action would result in the creation of a Margin Deficit,
unless prior

thereto or simultaneously therewith Seller transfers to Buyer cash or Additional Purchased
Securities sufficient to eliminate such Margin Deficit, or (B) if an Event of Default with respect
to Seller has occurred and is then continuing at the time such Income is paid or distributed.

6. Security Interest

Although the parties intend that all Transactions hereunder be sales and purchases and not loans,
in the event any such Transactions are deemed to be loans, Seller shall be deemed to have pledged
to Buyer as security for the performance by Seller of its obligations under each such Transaction,
and shall be deemed to have granted to Buyer a security interest in, all of the Purchased
Securities with respect to all Transactions hereunder and all Income thereon and other proceeds
thereof.

7. Payment and Transfer

Unless otherwise mutually agreed, all transfers of funds hereunder shall be in immediately
available funds. All Securities transferred by one party hereto to the other party (i) shall be in
suitable form for transfer or shall be accompanied by duly executed instruments of transfer or
assignment in blank and such other documentation as the party receiving possession may reasonably
request, (ii) shall be transferred on the book-entry system of a Federal Reserve Bank, or (iii)
shall be transferred by any other method mutually acceptable to Seller and Buyer.

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8. Segregation of Purchased Securities

To the extent required by applicable law, all Purchased Securities in the possession of Seller
shall be segregated from other securities in its possession and shall be identified as subject to
this Agreement. Segregation may be accomplished by appropriate identification on the books and
records of the holder, including a financial or securities intermediary or a clearing corporation.
All of Seller’s interest in the Purchased Securities shall pass to Buyer on the Purchase Date and,
unless otherwise agreed by Buyer and Seller, nothing in this Agreement shall preclude Buyer from
engaging in repurchase transactions with the Purchased Securities or otherwise selling,
transferring, pledging or hypothecating the Purchased Securities, but no such transaction shall
relieve Buyer of its obligations to transfer Purchased Securities to Seller pursuant to Paragraph
3, 4 or 11 hereof, or of Buyer’s obligation to credit or pay Income to, or apply Income to the
obligations of, Seller pursuant to Paragraph 5 hereof.

Required Disclosure for Transactions in Which the Seller Retains Custody of the Purchased
Securities

Seller is not permitted to substitute other securities for those subject to this Agreement and
therefore must keep Buyer’s securities segregated at all times, unless in this Agreement Buyer
grants Seller the right to substitute other securities. If Buyer grants the right to substitute,
this means that Buyer’s securities will likely be commingled with Seller’s own securities during
the trading day. Buyer is advised that, during any trading day that Buyer’s securities are
commingled with Seller’s securities, they [will]* [may]** be subject to liens granted by Seller to
[its clearing bank]* [third parties]** and may be used by Seller for deliveries on other securities
transactions. Whenever the securities are commingled, Seller’s ability to resegregate substitute
securities for Buyer will be subject to Seller’s ability to satisfy [the clearing]* [any]** lien or
to obtain substitute securities.

* Language to be used under 17 C.F.R.ß403.4(e) if Seller is a government securities broker or
dealer other than a financial institution.

** Language to be used under 17 C.F.R.ß403.5(d) if Seller is a financial institution.

9. Substitution

(a) Seller may, subject to agreement with and acceptance by Buyer, substitute other Securities for
any Purchased Securities. Such substitution shall be made by transfer to Buyer of such other
Securities and transfer to Seller of such Purchased Securities. After substitution, the substituted
Securities shall be deemed to be Purchased Securities.

(b) In Transactions in which Seller retains custody of Purchased Securities, the parties expressly
agree that Buyer shall be deemed, for purposes of subparagraph (a) of this Paragraph, to have
agreed to and accepted in this Agreement substitution by Seller of other Securities for Purchased
Securities; provided, however, that such other Securities shall have a Market Value at least equal
to the Market Value of the Purchased Securities for which they are substituted.

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10. Representations

Each of Buyer and Seller represents and warrants to the other that (i) it is duly authorized to
execute and deliver this Agreement, to enter into Transactions contemplated hereunder and to
perform its obligations hereunder and has taken all necessary action to authorize such execution,
delivery and performance, (ii) it will engage in such Transactions as principal (or, if agreed in
writing, in the form of an annex hereto or otherwise, in advance of any Transaction by the other
party hereto, as agent for a disclosed principal), (iii) the person signing this Agreement on its
behalf is duly authorized to do so on its behalf (or on behalf of any such disclosed principal),
(iv) it has obtained all authorizations of any governmental body required in connection with this
Agreement and the Transactions hereunder and such authorizations are in full force and effect and
(v) the execution, delivery and performance of this Agreement and the Transactions

hereunder will not violate any law, ordinance, charter, by-law or rule applicable to it or any
agreement by which it is bound or by which any of its assets are affected. On the Purchase Date for
any Transaction Buyer and Seller shall each be deemed to repeat all the foregoing representations
made by it.

11. Events of Default

In the event that (i) Seller fails to transfer or Buyer fails to purchase Purchased Securities upon
the

applicable Purchase Date, (ii) Seller fails to repurchase or Buyer fails to transfer Purchased

Securities upon the applicable Repurchase Date, (iii) Seller or Buyer fails to comply with

Paragraph 4 hereof, (iv) Buyer fails, after one business day’s notice, to comply with Paragraph 5

hereof, (v) an Act of Insolvency occurs with respect to Seller or Buyer, (vi) any representation

made by Seller or Buyer shall have been incorrect or untrue in any material respect when made or

repeated or deemed to have been made or repeated, or (vii) Seller or Buyer shall admit to the

other its inability to, or its intention not to, perform any of its obligations hereunder (each an
“Event

of Default”):

(a) The non-defaulting party may, at its option (which option shall be deemed to have been
exercised immediately upon the occurrence of an Act of Insolvency), declare an Event of Default to
have occurred hereunder and, upon the exercise or deemed exercise of such option, the Repurchase
Date for each Transaction hereunder shall, if it has not already occurred, be deemed immediately to
occur (except that, in the event that the Purchase Date for any Transaction has not yet occurred as
of the date of such exercise or deemed exercise, such Transaction shall be deemed immediately
canceled). The non-defaulting party shall

(except upon the occurrence of an Act of Insolvency) give notice to the defaulting party of the
exercise of such option as promptly as practicable.

(b) In all Transactions in which the defaulting party is acting as Seller, if the non-defaulting
party exercises or is deemed to have exercised the option referred to in subparagraph (a) of this
Paragraph, (i) the defaulting party’s obligations in such Transactions to repurchase all Purchased
Securities, at the Repurchase Price therefore on the Repurchase Date determined in accordance with
subparagraph (a) of this Paragraph, shall thereupon become immediately due and payable, (ii) all
Income paid after such exercise or deemed exercise shall be retained by the non-defaulting party
and applied to the aggregate unpaid Repurchase Prices and any other amounts owing by the defaulting
party hereunder, and (iii) the defaulting party shall immediately deliver to the non-defaulting
party any Purchased Securities subject to such

Transactions then in the defaulting party’s possession or control.

(c) In all Transactions in which the defaulting party is acting as Buyer, upon tender by the
nondefaulting

party of payment of the aggregate Repurchase Prices for all such Transactions, all right, title and
interest in and entitlement to all Purchased Securities subject to such Transactions shall be
deemed transferred to the non-defaulting party, and the defaulting party shall deliver all such
Purchased Securities to the non-defaulting party.

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(d) If the non-defaulting party exercises or is deemed to have exercised the option referred
to in

subparagraph (a) of this Paragraph, the non-defaulting party, without prior notice to the
defaulting party, may:

(i) As to Transactions in which the defaulting party is acting as Seller, (A) immediately sell,
in a recognized market (or otherwise in a commercially reasonable manner) at such price or
prices as the non-defaulting party may reasonably deem satisfactory, any or all Purchased
Securities subject to such Transactions and apply the proceeds thereof to the aggregate unpaid
Repurchase Prices and any other amounts owing by the defaulting party hereunder or (B) in its
sole discretion elect, in lieu of selling all or a portion of such Purchased Securities, to
give the defaulting party credit for such Purchased Securities in an amount equal to the price
therefore on such date, obtained from a generally

recognized source or the most recent closing bid quotation from such a source, against the
aggregate unpaid Repurchase Prices and any other amounts owing by the defaulting party
hereunder; and

(ii) As to Transactions in which the defaulting party is acting as Buyer, (A) immediately
purchase, in a recognized market (or otherwise in a commercially reasonable manner) at such
price or prices as the non-defaulting party may reasonably deem satisfactory, securities
(“Replacement Securities”) of the same class and amount as any Purchased Securities that are
not delivered by the defaulting party to the non-defaulting party as required hereunder or (B)
in its sole discretion elect, in lieu of purchasing Replacement Securities, to be deemed to
have purchased Replacement Securities at the price therefore

on such date, obtained from a generally recognized source or the most recent closing offer
quotation from such a source.

Unless otherwise provided in Annex I, the parties acknowledge and agree that (1) the Securities
subject to any Transaction hereunder are instruments traded in a recognized market, (2) in the
absence of a generally recognized source for prices or bid or offer quotations for any Security,
the non-defaulting party may establish the source therefore in its sole discretion and (3) all
prices, bids and offers shall be determined together with accrued Income (except to the extent
contrary to market practice with respect to the relevant Securities).

(e) As to Transactions in which the defaulting party is acting as Buyer, the defaulting party shall
be liable to the non-defaulting party for any excess of the price paid (or deemed paid) by the
non-defaulting party for Replacement Securities over the Repurchase Price for the Purchased
Securities replaced thereby and for any amounts payable by the defaulting party under Paragraph 5
hereto or otherwise hereunder.

(f) For purposes of this Paragraph 11, the Repurchase Price for each Transaction hereunder in
respect of which the defaulting party is acting as Buyer shall not increase above the amount of
such Repurchase Price for such Transaction determined as of the date of the exercise or deemed
exercise by the non-defaulting party of the option referred to in subparagraph (a) of this
Paragraph.

(g) The defaulting party shall be liable to the non-defaulting party for (i) the amount of all
reasonable legal or other expenses incurred by the non-defaulting party in connection with or as a
result of an Event of Default, (ii) damages in an amount equal to the cost (including all fees,
expenses and commissions) of entering into replacement transactions and entering into or
terminating hedge transactions in connection with or as a result of an Event of Default, and (iii)
any other loss, damage, cost or expense directly arising or resulting from the occurrence of an
Event of Default in respect of a Transaction.

(h) To the extent permitted by applicable law, the defaulting party shall be liable to the
nondefaulting party for interest on any amounts owing by the defaulting party hereunder, from the
date the defaulting party becomes liable for such amounts hereunder until such amounts are (i) paid
in full by the defaulting party or (ii) satisfied in full by the exercise of the non-defaulting
party’s rights hereunder. Interest on any sum payable by the defaulting party to the nondefaulting
party under this Paragraph 11(h) shall be at a rate equal to the greater of the Pricing Rate for
the relevant Transaction or the Prime Rate.

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(i) The non-defaulting party shall have, in addition to its rights hereunder, any rights
otherwise available to it under any other agreement or applicable law.

12. Single Agreement

Buyer and Seller acknowledge that, and have entered hereinto and will enter into each Transaction
hereunder in consideration of and in reliance upon the fact that, all Transactions hereunder
constitute a single business and contractual relationship and have been made in consideration of
each other. Accordingly, each of Buyer and Seller agrees (i) to perform all of its obligations in
respect of each Transaction hereunder, and that a default in the performance of any such
obligations shall constitute a default by it in respect of all Transactions hereunder, (ii) that
each of them shall be entitled to set off claims and apply property held by them in respect of any
Transaction against obligations owing to them in respect of any other Transactions hereunder and
(iii) that payments, deliveries and other transfers made by either of them in respect of any
Transaction shall be deemed to have been made in consideration of payments, deliveries and other
transfers in respect of any other Transactions hereunder, and the obligations to make any such
payments, deliveries and other transfers may be applied against each other and netted.

13. Notices and Other Communications

Any and all notices, statements, demands or other communications hereunder may be given by a party
to the other by mail, facsimile, telegraph, messenger or otherwise to the address specified in
Annex II hereto, or so sent to such party at any other place specified in a notice of change of
address hereafter received by the other. All notices, demands and requests hereunder may be made
orally, to be confirmed promptly in writing, or by other communication as specified in the
preceding sentence.

14. Entire Agreement; Severability

This Agreement shall supersede any existing agreements between the parties containing general terms
and conditions for repurchase transactions. Each provision and agreement herein shall be treated as
separate and independent from any other provision or agreement herein and shall be enforceable
notwithstanding the unenforceability of any such other provision or agreement.

15. Non-assignability; Termination

(a) The rights and obligations of the parties under this Agreement and under any Transaction shall
not be assigned by either party without the prior written consent of the other party, and any such
assignment without the prior written consent of the other party shall be null and void. Subject to
the foregoing, this Agreement and any Transactions shall be binding upon and shall inure to the
benefit of the parties and their respective successors and assigns. This Agreement may be
terminated by either party upon giving written notice to the other, except that this Agreement
shall, notwithstanding such notice, remain applicable to any Transactions then outstanding.

(b) Subparagraph (a) of this Paragraph 15 shall not preclude a party from assigning, charging or
otherwise dealing with all or any part of its interest in any sum payable to it under Paragraph 11
hereof.

16. Governing Law

This Agreement shall be governed by the laws of the State of New York without giving effect to the
conflict of law principles thereof.

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17. No Waivers, Etc.

No express or implied waiver of any Event of Default by either party shall constitute a waiver of
any other Event of Default and no exercise of any remedy hereunder by any party shall constitute a
waiver of its right to exercise any other remedy hereunder. No modification or waiver of any
provision of this Agreement and no consent by any party to a departure here-from shall be effective
unless and until such shall be in writing and duly executed by both of the parties hereto. Without
limitation on any of the foregoing, the failure to give a notice pursuant to Paragraph 4(a) or 4(b)
hereof will not constitute a waiver of any right to do so at a later date.

18. Use of Employee Plan Assets

(a) If assets of an employee benefit plan subject to any provision of the Employee Retirement
Income Security Act of 1974 (“ERISA”) are intended to be used by either party hereto (the “Plan
Party”) in a Transaction, the Plan Party shall so notify the other party prior to the Transaction.
The Plan Party shall represent in writing to the other party that the Transaction does not
constitute a prohibited transaction under ERISA or is otherwise exempt therefrom, and the other
party may proceed in reliance thereon but shall not be required so to proceed.

(b) Subject to the last sentence of subparagraph (a) of this Paragraph, any such Transaction shall
proceed only if Seller furnishes or has furnished to Buyer its most recent available audited
statement of its financial condition and its most recent subsequent unaudited statement of its
financial condition.

(c) By entering into a Transaction pursuant to this Paragraph, Seller shall be deemed (i) to
represent to Buyer that since the date of Seller’s latest such financial statements, there has been
no material adverse change in Seller’s financial condition which Seller has not disclosed to Buyer,
and (ii) to agree to provide Buyer with future audited and unaudited statements of its financial
condition as they are issued, so long as it is a Seller in any outstanding Transaction involving a
Plan Party.

19. Intent

(a) The parties recognize that each Transaction is a “repurchase agreement” as that term is defined
in Section 101 of Title 11 of the United States Code, as amended (except insofar as the type of
Securities subject to such Transaction or the term of such Transaction would render such definition
inapplicable), and a “securities contract” as that term is defined in Section 741 of Title 11 of
the United States Code, as amended (except insofar as the type of assets subject to such
Transaction would render such definition inapplicable).

(b) It is understood that either party’s right to liquidate Securities delivered to it in
connection with Transactions hereunder or to exercise any other remedies pursuant to Paragraph 11
hereof is a contractual right to liquidate such Transaction as described in Sections 555 and 559 of
Title 11 of the United States Code, as amended.

(c) The parties agree and acknowledge that if a party hereto is an “insured depository
institution,” as such term is defined in the Federal Deposit Insurance Act, as amended (“FDIA”),
then each Transaction hereunder is a “qualified financial contract,” as that term is defined in
FDIA and any rules, orders or policy statements thereunder (except insofar as the type of assets
subject to such Transaction would render such definition inapplicable).

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(d) It is understood that this Agreement constitutes a “netting contract” as defined in and
subject to Title IV of the Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”)
and each payment entitlement and payment obligation under any Transaction hereunder shall
constitute a “covered contractual payment entitlement ‘or’ covered contractual payment obligation”,
respectively, as defined in and subject to FDICIA (except insofar as one or both of the parties is
not a “financial institution” as that term is defined in FDICIA).

20. Disclosure Relating to Certain Federal Protections

The parties acknowledge that they have been advised that:

(a) In the case of Transactions in which one of the parties is a broker or dealer registered with
the Securities and Exchange Commission (“SEC”) under Section 15 of the Securities Exchange Act of
1934 (“1934 Act”), the Securities Investor Protection Corporation has taken the position that the
provisions of the Securities Investor Protection Act of 1970 (“SIPA”) do not protect the other
party with respect to any Transaction hereunder;

(b) In the case of Transactions in which one of the parties is a government securities broker or a

government securities dealer registered with the SEC under Section 15C of the 1934 Act, SIPA will
not provide protection to the other party with respect to any Transaction hereunder; and

(c) In the case of Transactions in which one of the parties is a financial institution, funds held
by the financial institution pursuant to a Transaction hereunder are not a deposit and therefore
are not insured by the Federal Deposit Insurance Corporation or the National Credit Union Share
Insurance Fund, as applicable.

	 	 	 
	By: ValueClick, Inc.

	 	By: Wachovia Securities, LLC on behalf of

itself and its clearing affiliate, First

Clearing, LLC
	 
	 	 
	Date: June 10, 2005

	 	Date: June 27, 2005

Page 10 of 10

10EX-10.53

EMPLOYMENT AGREEMENT

AGREEMENT, dated as of June 27, 2005 (“Effective Date”) by and between PLATO Learning, Inc., a
Delaware corporation headquartered in Minneapolis, Minnesota (the “Company”), and James (Brian)
Blaydes (“Executive”).

WITNESSETH THAT:

WHEREAS, the Company wishes to offer Executive employment and Executive wishes to accept
employment from the Company, pursuant to the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter set
forth, the Company and Executive hereby agree as follows:

	 	1.	 	Employment. The Company hereby agrees to employ Executive to perform the duties set
forth in Section 3 hereof, and Executive hereby accepts such employment, on the terms and
conditions of this Agreement.

	 	2.	 	Term. The term of this Agreement (“Term”) shall commence on the Effective Date and
shall end on June 27, 2007, subject to earlier termination pursuant to Section 6. On June 27,
2007 and on each June 27 thereafter, unless earlier terminated pursuant to Section 6, the Term
will be automatically extended for an additional one (1) year, unless either party gives
written notice not to extend the Term hereof at least forty-five (45) days prior to the date
such extension would be effective. Notwithstanding anything contained herein to the contrary,
in the event of a Change in Control (as such term is defined in Appendix A), the Term shall be
automatically extended until the second anniversary of the Change in Control.

	 	3.	 	Duties. Executive will serve as the Company’s Vice President – K-12 Sales, with the
responsibilities and duties customarily associated with that position, and any other
consistent responsibilities and duties assigned or delegated to Executive by the Board of
Directors of the Company (the “Board”) or the Company’s Chief Executive Officer.

	 	4.	 	Time Commitment. Executive will devote Executive’s time, attention and energies to
the performance of his duties and responsibilities under this Agreement. Executive may not be
associated with, consult, advise, work for, be employed by, contract with, or otherwise devote
any of Executive’s time to the pursuit of any other work or business activities that may
interfere with the performance of such duties and responsibilities. The foregoing shall not
preclude Executive from devoting reasonable time to the supervision of his personal
investments, civic, charitable, educational, religious and similar types of activities,
speaking engagements and membership on other boards of directors, provided such activities do
not interfere in any way with the business of the Company; and provided further that,
Executive cannot serve on the board of directors of more than one publicly-traded company
without the written consent of the Board. The time involved in such activities shall not be
treated as vacation time. Executive shall be entitled to keep any amounts paid to him in
connection with such activities (e.g., director fees and honoraria).

	 	5.	 	Compensation and Benefits. The Company will pay the following compensation to
Executive in full consideration for performance of his services hereunder, payable in regular
installments in accordance with the Company’s usual payroll policies and procedures.

	 	(a)	 	Salary. Executive will receive an annual salary of Two Hundred
Thousand Dollars ($200,000). The Board or the Compensation Committee of the Board will
review Executive’s salary at least annually. Executive’s salary will not be reduced,
and after any increase the term “salary” for purposes of this Agreement shall refer to
Executive’s annual salary as most recently increased.

	 	(b)	 	Bonus Compensation. Executive will be eligible to participate in the
Company’s Sales Compensation Plan as established each year by the Board of Directors or
Compensation Committee of the Board.

(c) Stock Options.

	 	(i)	 	On the Effective Date, the Company shall grant Executive an
option under the Company’s 2002 Stock Plan to purchase 50,000 shares of the
Company’s common stock at an exercise price per share equal to the fair market
value on the date of grant. Such option will vest at the rate of one-third of
the shares covered by such option on each of the first three anniversaries of
the date of grant and shall be exercisable for a period of eight years from the
date of grant, provided Executive continues to be employed by the Company.

	 	(ii)	 	Notwithstanding any other provisions as outlined in the
Company’s 2002 Stock Plan, and unless otherwise specifically prohibited under
applicable laws, or by the rules and regulations of any governing governmental
agencies or national securities exchanges, upon a Change in Control the grant
of options to purchase 50,000 shares pursuant to Section 5(c)(i) will become
immediately exercisable, and will remain exercisable throughout their entire
term. Any stock options or restricted shares granted after the Effective Date
will be subject to such provisions relating to change in control as are set
forth in the plan under which such stock options or restricted shares are
granted at the time of grant. All options to purchase shares of the Company’s
common stock shall be evidenced by the Company’s standard form of stock option
agreement, and all grants of restricted share of the Company’s common stock
shall be evidenced by the Company’s standard form of restricted stock
agreement. All options and grants or restricted shares shall be subject to the
terms and conditions of the Company’s 2002 Stock Plan.

	 	(d)	 	Benefits. Executive shall be entitled to five (5) weeks of vacation
each year, which shall be accrued on a prorated basis of each payroll period.
Executive shall be eligible to participate in such group life insurance, major medical,
and other employee benefit plans and programs (collectively “Benefit Plans”) as
established by the Company, in accordance with the applicable terms and conditions of
such Benefit Plans (including the requirements of the Benefit Plans for participation).
The benefits under the Benefit Plans available to Executive shall be no less favorable
than those available to other senior executives of the Company, excluding the Company’s
Chief Executive Officer.

	 	(e)	 	Relocations Expenses. The Company will pay or reimburse Executive,
upon submission by Executive of appropriate documentation in accordance with the
Company’s expense reimbursement policy, for the following expenses related to Executive
relocating to the Twin Cities area: all reasonable expenses related to movement of
household goods; storage for an interim period of two months; house hunting expenses
for two trips not to exceed three days each; temporary living expenses up to two
months; miscellaneous expense payment of $20,000; and selling costs on existing home
and closing costs on a new residence in the Twin Cities area.

	 	(f)	 	Expenses. The Company will reimburse Executive for all reasonable and
necessary expenses incurred by Executive in connection with the performance of his
services hereunder upon submission by Executive of appropriate documentation in
accordance with the Company’s expense reimbursement policy.

6. Termination.

	 	(a)	 	Death or Disability. This Agreement and Executive’s employment shall
be terminated immediately upon Executive’s death. In the event of Executive’s
Disability, this Agreement and Executive’s employment shall be terminated thirty (30)
days after the Company gives written notice to Executive, unless Executive has returned
to the substantial performance of his duties on a full-time basis. For purposes of
this Agreement, “Disability” means that as a result of physical or mental incapacity
Executive is unable for a period of 120 consecutive days during any consecutive 180-day
period to perform his duties hereunder on a full-time basis.

Upon termination by reason of Death or Disability, Executive shall be entitled only
to accrued but unpaid salary through the date of termination, together with any
other benefit or payment provided under the Company’s plans, policies or programs in
accordance with their terms (collectively, “Accrued Obligations”).

	 	(b)	 	Cause or Without Good Reason. The Company may terminate this Agreement
and Executive’s employment for Cause (as defined in paragraph (d) of this Section) upon
ten (10) day’s prior written notice to Executive. Executive may terminate the
Agreement and his employment without Good Reason (as defined in paragraph (d) of this
Section) upon thirty (30) days’ prior written notice to the Company.

Upon termination for Cause or without Good Reason, Executive shall be entitled only
to the Accrued Obligations.

	 	(c)	 	Good Reason; Without Cause. Executive may terminate this Agreement and
his employment for Good Reason upon thirty (30) days’ prior written notice to the
Company. The Company may terminate this Agreement and Executive’s employment without
Cause upon thirty (30) days’ prior written notice to Executive.

Upon termination for Good Reason or without Cause, Executive shall be entitled to:

(i) the Accrued Obligations;

	 	(ii)	 	a lump sum severance payment equal to the higher of (x) one (1)
times Executive’s annual salary in effect on the termination date (without
regard to any reduction in salary referred to in clause (ii) of the definition
of Good Reason) or (y) Executive’s salary for the duration of the remaining
term pursuant to this Agreement, which shall be paid to Executive within ten
(10) business days following such termination; and

	 	(iii)	 	continuation of health and other welfare benefits (including
life, accident and disability benefits) to Executive and his spouse and
dependents under the Benefit Plans in which they participated on the date of
Executive’s termination, for twelve (12) months following the date of
Executive’s termination on substantially the same terms and conditions
(including contributions by Executive) as in effect immediately prior to
Executive’s termination; provided, that the Company’s obligation to
provide such health or other welfare benefit shall cease with respect to such
benefit at the time Executive becomes eligible to participate in a group plan
of another employer providing comparable benefits in the aggregate.

To the extent that the health and other welfare benefits referred to in clause (iii)
above cannot be provided after termination of employment under applicable law or the
terms of the Benefit Plans then in effect (and cannot be provided through the
Company’s paying the applicable premium for Executive under COBRA), the Company
shall pay to Executive such amount as is necessary to provide Executive, on an
after-tax basis, with an amount equal to the cost of acquiring, for Executive and
his spouse and dependents, (on a non-group basis) those health and other welfare
benefits that would otherwise be lost to Executive and his spouse and dependents as
a result of Executive’s termination.

	 	(d)	 	Definitions. For the purposes of this Agreement, “Cause” shall mean
Executive’s:

	 	(i)	 	indictment or plea of guilty or nolo contendere
involving any felony or gross misdemeanor involving dishonesty, fraud, or
breach of trust under any law of the United States or any State thereof;

	 	(ii)	 	willful engagement in any conduct or gross negligence that in
either case materially injures the Company or any of its subsidiaries; or

	 	(iii)	 	willful and substantial nonperformance of assigned duties,
provided that such nonperformance has continued more than ten days after the
Company has given written notice of such nonperformance and of its intention to
terminate Executive’s employment because of such nonperformance.

For purpose of this Agreement “Good Reason” shall exist if the Company, without
Executive’s written consent:

	 	(i)	 	materially reduces the nature, scope, level or extent of
Executive’s responsibilities;

(ii) reduces Executive’s salary;

	 	(iii)	 	gives written notice to the Executive pursuant to Section 2
not to extend the Term of this Agreement; or

	 	(iv)	 	relocates Executive’s principal business office to a location
which is more than fifty (50) miles from both (A) Executive’s principal
business office immediately prior to such relocation and (B) Executive’s
principal place of residence at the time of such relocation.

	 	(e)	 	Conditions. Executive’s eligibility to receive the payment and
benefits under this Section is conditioned on (i) his compliance with the provisions of
Section 8 of this Agreement and (ii) his execution of a general release and waiver of
all claims against the Company and its directors, officers and subsidiaries, in a
reasonable and customary form prepared by the Company.

	 	(f)	 	Right of Recapture. In the event that (x) within one (1) year after
termination of this Agreement and Executive’s employment for any reason the Company
determines that prior to such termination he engaged in any activity which would have
constituted a basis for termination by the Company for Cause while employed by the
Company or (y) Executive breaches the restrictive covenants of Section 8, then:

	 	(i)	 	the Company shall have no further obligations to pay the lump
sum severance payment or to continue providing Executive and his spouse and
dependents with health and other welfare benefits, as provided in paragraph (c)
above, if such termination was by the Company without Cause or by Executive for
Good Reason;

	 	(ii)	 	upon written notice to Executive from the Company, Executive
shall pay to the Company within ten (10) business days any lump severance
payment received by Executive pursuant to paragraph (c) above, and

	 	(iii)	 	if Executive has exercised any stock options granted to him by
the Company, Executive shall pay to the Company within ten (10) business days
after written notice from the Company the difference between (A) the aggregate
fair market value on the date (or dates) of exercise of the shares subject to
stock options which were exercised by Executive on or after the date which is
one (1) year prior to Executive’s termination of employment and (B) the
aggregate exercise price of such stock options.

If Executive disputes the exercise by the Company of any rights under this Section
6(f), Executive shall have the right to submit such dispute to arbitration in
accordance with Section 13(e). Notwithstanding anything contained herein, this
paragraph shall not apply to any breach of the provisions of Section 8(a) unless
there has been substantial damage to the Company. For purposes of this paragraph,
“fair market value” on any date means the per share closing price of the Company’s
common stock on the Nasdaq Stock Market on that date (or, if there was no reported
closing price on that date, on the last preceding date on which the closing price
was reported) or, if the Company is not then listed on the Nasdaq Stock Market, as
determined by the Board in good faith.

7. Change in Control.

	 	(a)	 	Retention Bonus. In the event that Executive’s employment continues
for two (2) years after a Change in Control (as such term is defined in Appendix A),
Executive shall be entitled to a lump sum cash retention bonus equal to one (1) times
Executive’s annual salary then in effect, . Such retention bonus shall be paid to
Executive within ten (10) business days following the second anniversary of the Change
in Control.

	 	(b)	 	Severance Payment and Benefits. In the event that Executive’s
employment is terminated less than two (2) years after a Change in Control by the
Company without Cause or by Executive for Good Reason, Executive shall be entitled to
the same rights, payments and benefits as provided in paragraph (c) of Section 6.

For purposes of this Section, Good Reason shall also include the Company’s failure
without Executive’s written consent to continue in effect any incentive or bonus
plan, or Benefit Plan, unless Executive is permitted to participate in other plans
providing Executive with substantially equivalent compensation and benefits in the
aggregate (and, with respect to life insurance, major medical and other employee
welfare benefit plans, at a substantially equivalent cost).

	 	(c)	 	Reduction of Payment. If, as provided in Appendix B, Executive would
otherwise be subject to the excise tax imposed by Section 4999 of the Internal Revenue
Code, the amounts payable under this Agreement shall be reduced as provided in Appendix
B.

	 	(d)	 	Legal Fees. If any contest or dispute shall arise under this Agreement
involving termination of Executive’s employment with the Company after a Change in
Control or involving the failure or refusal of the Company to perform fully in
accordance with the terms of this Section, the Company shall reimburse Executive for
all reasonable legal fees and related expenses, if any, incurred by Executive in
connection with such contest or dispute if a court of competent jurisdiction or an
arbitration panel substantially upholds Executive’s position.

8. Restrictive Covenants.

	 	(a)	 	Confidentiality. Executive agrees not to directly or indirectly,
without the Company’s prior written consent:

	 	(i)	 	use or disclose, for the benefit of any person, firm or entity
other than the Company and its subsidiaries, the Confidential Business
Information of the Company or any of its subsidiaries;

	 	(ii)	 	distribute or disseminate in any way to any person, firm or
entity anyone other than the Company and its subsidiaries, any Confidential
Business Information in any form whatsoever;

	 	(iii)	 	copy any Confidential Business Information other than for use
by the Company or any of its subsidiaries;

	 	(iv)	 	remove any Confidential Business Information from the premises
of the Company;

(v) fail to safeguard all confidential documents; and

	 	(vi)	 	copy any confidential documents belonging to any of the
Company’s customers.

For purposes of this Agreement, “Confidential Business Information” means
information or material that is not generally available to or used by others or the
utility or value of which is not generally known or recognized as a standard
practice, whether or not the underlying details are in the public domain, including
but not limited to its computerized and manual systems, procedures, reports, client
lists, review criteria and methods, financial methods and practices, plans, pricing
and marketing techniques, business methods and procedures and other valuable and
proprietary information relating to the pricing, marketing, design, manufacture and
formulation of educational software, as well as information regarding the past,
present and prospective clients of the Company or any of its subsidiaries, and their
particular needs and requirements, and their own confidential information.

Upon termination of employment under this Agreement for any reason, Executive agrees
to return to the Company all policy and procedure manuals, records, notes, data,
memoranda, and reports of any nature (including computerized and electronically
stored information) which are in Executive’s possession and/or control which relate
to (i) the Confidential Business Information of the Company or any of its
subsidiaries, (ii) the business activities or facilities of the Company or its past,
present, or prospective clients.

	 	(b)	 	Non-Compete. During the period of Executive’s employment and for a
period of one (1) year following termination of this Agreement and Executive’s
employment for any reason (the “Restricted Period”), Executive will not directly or
indirectly, on his behalf, or as a partner, officer, director, trustee, member,
employee, or otherwise, within the United States or in any foreign market in which
Executive was engaged in activities on behalf of the Company or any of its
subsidiaries, own, engage in or participate in, in any way, any business that is
similar to or competitive with any actual or planned business activity engaged in or
planned by the Company or any of its subsidiaries at the time the employment under this
Agreement was terminated. However, this Agreement shall not prohibit ownership by
Executive of up to 2% of the shares of stock of any corporation the stock of which is
listed on a national securities exchange or is traded in the over-the-counter market.

	 	(c)	 	Non-Solicitation. During the Restricted Period, Executive will not
directly or indirectly, for the purpose of selling services and/or products provided or
planned by the Company or any of its subsidiaries at the time the employment under this
Agreement was terminated, call upon, solicit or divert any actual customer or
prospective customer of the Company or any of its subsidiaries, unless employed by the
Company to do so. An actual customer, for purposes of this Section, is any customer to
whom the Company or any of its subsidiaries has provided services and/or products
within one year prior to Executive’s termination of employment under this Agreement. A
prospective customer, for purposes of this Section, is any prospective customer to whom
the Company or any of its subsidiaries sought to provide services and/or products
within one year prior to the date of Executive’s termination of employment under this
Agreement when Executive had knowledge of or was involved in such solicitation.

Executive further agrees that during the Restricted Period Executive shall not
directly or indirectly induce any person to leave the employ of the Company or any
of its subsidiaries, or solicit any person who is currently or was an employee of
the Company or any of its subsidiaries at any time during the twelve months prior to
Executive’s termination of employment under this Agreement.

	 	(d)	 	Judicial Modification. If the final judgment of a court of competent
jurisdiction declares that any term or provision of this Section is invalid or
unenforceable, the parties agree that (i) the court making the determination of
invalidity or unenforceability shall have the power to reduce the scope, duration, or
geographic area of the term or provision, to delete specific words or phrases, or to
replace any invalid or unenforceable term or provision with a term or provision that is
valid and enforceable and that comes closest to expressing the intention of the invalid
or unenforceable term or provision, (ii) the parties shall request that the court
exercise that power, and (iii) this Agreement shall be enforceable as so modified after
the expiration of the time within which the judgment or decision may be appealed.

	 	9.	 	Remedies. In the event Executive breaches or threatens to breach any provision of
Section 8 of this Agreement, the Company shall, in addition to the provisions of Section 6(f)
be entitled to injunctive relief, enjoining or restraining such breach or threatened breach.
Executive acknowledges that the Company’s remedy at law is inadequate and that the Company and
its subsidiaries will suffer irreparable injury if such conduct is not prohibited.

Executive further agrees that the covenants contained in Section 8 shall be construed as
separate and independent of other provisions of this Agreement and the existence of any
claim by Executive against the Company or any of its subsidiaries, except for a claim that
Executive was terminated without Cause or terminated his employment for Good Reason, shall
not constitute a defense to the enforcement by the Company of either Section 8 or this
Section.

	 	10.	 	Property Rights. All discoveries, designs, improvements, ideas, inventions,
intellectual property, creations, and works of art, whether or not patentable or subject to
copyright, relating to the business of the Company or any of its subsidiaries, or its clients,
conceived, developed or made by Executive during employment under this Agreement, either
solely or jointly with others (hereafter “Developments”) shall automatically become the sole
property of the Company. Executive shall immediately disclose to the Company all such
Developments and shall, without additional compensation, execute all assignments, application
or any other documents deemed necessary by the Company to perfect the Company’s rights
therein. These obligations shall continue throughout the Restricted Period under this
Agreement with respect to Developments conceived, developed or made by Executive during the
period of employment under this Agreement.

The Company acknowledges and agrees that the provisions of this section shall not apply to
inventions or for which no equipment, supplies, facility or trade secret information of the
Company or its clients were used by Executive and which were developed entirely on
Executive’s own time unless (a) such inventions relate (i) to the business of the Company or
(ii) to the Company’s actual or demonstrably anticipated research or development or (b) such
inventions result from any work performed by Executive for the Company.

	 	11.	 	Assignments. Neither party shall have the right or power to assign any rights or
duties under this Agreement without the written consent of the other party, provided, however,
that the Company shall have the right to assign this Agreement without consent pursuant to any
corporate reorganization, merger, or other transaction involving a Change in Control of the
Company or any of its subsidiary companies. Any attempted assignment in breach of this
Section shall be void.

If Executive performs services and duties for any subsidiary or other affiliated entity of
the Company, then the provisions of Sections 8 and 9 shall apply to the confidential
information and business activities, property rights, clients, and employees of that
subsidiary or other entity.

	 	12.	 	Severability. Each section, paragraph, clause, sub-clause and provision
(collectively “Provisions”) of this Agreement shall be severable from each of the others, and
if for any reason any section, paragraph, clause, sub-clause or provision is invalid or
unenforceable, such invalidity or unenforceability shall not prejudice or in any way affect
the validity or enforceability of any other Provision hereof.

13. Miscellaneous.

	 	(a)	 	This Agreement (including the appendices) contains the entire agreement of the
parties with respect to the employment of Executive and supersedes all prior
agreements, provisions, covenants, arrangements, communications, representations or
warrantees, whether written or oral, by any officer, employee or representative of any
party with respect to the subject matter of this Agreement.

	 	(b)	 	Failure on the part of either party to insist upon strict compliance by the
other with respect to any of the terms, covenants and conditions hereof, shall not be
deemed a subsequent waiver of such term, covenant or condition.

	 	(c)	 	The provisions of any section containing a continuing obligation after
termination shall survive such termination whether with or without Cause and even if
occasioned by the Company’s breach or wrongful termination.

	 	(d)	 	This Agreement may not be modified except in a written amendment signed by the
parties.

	 	(e)	 	Except for action by the Company to enforce the restrictive covenants of
Section 8, any dispute, controversy or difference that may arise between the parties
hereto out of or in relation to or in connection with this Agreement or for the breach
thereof which cannot be settled amicably by the parties within thirty (30) days shall
be finally and exclusively settled by arbitration in Minneapolis, Minnesota, in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association then in effect. The arbitrator shall have discretion to award the
prevailing party reasonable attorney’s fees, subject to Section 7(d). In the event of
litigation under this Agreement, the court shall have discretion to award the
prevailing party reasonable attorney’s fees, subject to Section 7(d).

	 	(f)	 	The headings in this Agreement are inserted for convenience and identification
only and are not intended to describe, interpret, define or limit the scope, extent, or
intent of this Agreement or any provision hereof. Each party has cooperated in the
preparation of this Agreement. As a result, this Agreement shall not be construed
against any party on the basis that the party was the draftsperson.

	 	(g)	 	All forms of compensation referred to in this Agreement are subject to
reduction to reflect withholding for applicable income, payroll and other taxes.

	 	14.	 	Governing Law. It is the intention of the parties hereto that all questions with
respect to the construction, formation, and performance of this Agreement and the rights and
liabilities of the parties hereto shall be determined in accordance with the laws of the State
of Minnesota. The parties hereto submit to the jurisdiction and venue of the courts of
Hennepin County, Minnesota in respect to any dispute arising out of this agreement.

	 	15.	 	Insurance. For the period from the date hereof through at least the fifth
anniversary of Executive’s termination of employment from the Company, the Company agrees to
maintain Executive as an insured party on all directors’ and officers’ insurance maintained by
the Company for the benefit of its directors and officers on at least the same basis as all
other covered individuals.

	 	16.	 	Notices. Any notice required pursuant to this Agreement will be in writing and will
be deemed given upon the earlier of (i) delivery thereof, if by hand, (ii) five (5) business
days after mailing if sent by mail (registered or certified mail, postage prepaid, return
receipt requested), (iii) the next business day after deposit if sent by a recognized
overnight delivery service, or (iv) upon transmission if sent by facsimile transmission or by
electronic mail, with return notification (provided that any notice sent by facsimile or
electronic mail shall also promptly be sent by one of the means described in clauses (i)
through (iii) of this Section. All notices will be addressed as follows or to such other
address as a party may identify in a written notice to the other party:

	 	 	 
	to the Company:

	 	PLATO Learning, Inc.

Attn: Chief Executive Officer

10801 Nesbitt Avenue South

Bloomington, MN 55437-3109
	 
	 	 
	to Executive:

	 	Mr. James (Brian) Blaydes

[insert address]

Each party named above may change its address and that of its representative for notice by
the giving of notice thereof in the manner hereinabove provided.

	 	17.	 	Counterparts. This Agreement may be executed in one or more counterparts, all of
which together shall constitute but one Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement in the State of
Minnesota effective as of the day and year first above written.

	 	 	 	 	 
	 	 	PLATO Learning, Inc.
	 
	 	By: ____________________________

	_______________________________
	 	Name: __________________________

	James (Brian) Blaydes
	 	Title:   __________________________

1

APPENDIX A

“Change in Control” means the occurrence of any one of the following events:

(i) individuals who, on June 27, 2005, constitute the Board (the “Incumbent Directors”)
cease for any reason to constitute at least a majority of the Board, provided that any
person becoming a director subsequent to June 27, 2005 whose election or nomination for
election was approved by a vote of at least a majority of the Incumbent Directors then on
the Board (either by a specific vote or by approval of the proxy statement of the Company in
which such person is named as a nominee for director, without written objection to such
nomination) shall be an Incumbent Director; provided, however, that no
individual initially elected or nominated as a director of the Company as a result of an
actual or threatened election contest with respect to directors or as a result of any other
actual or threatened solicitation of proxies by or on behalf of any person other than the
Board shall be deemed to be an Incumbent Director;

(ii) any “person” (as such term is defined in the Securities Exchange Act of 1934 (the
“Exchange Act”) and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or
becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing 50% or more of the combined voting
power of the Company’s then outstanding securities eligible to vote for the election of the
Board (“Company Voting Securities”); provided, however, that the event
described in this paragraph (ii) shall not be deemed to be a Change in Control by virtue of
any of the following acquisitions: (A) by the Company or any subsidiary, (B) by any
employee benefit plan (or related trust) sponsored or maintained by the Company or any
subsidiary, (C) by any underwriter temporarily holding securities pursuant to an offering of
such securities, (D) pursuant to a Non-Qualifying Transaction, as defined in paragraph
(iii), or (E) by any person of Voting Securities from the Company, if a majority of the
Incumbent Board approves in advance the acquisition of beneficial ownership of 50% or more
of Company Voting Securities by such person;

(iii) the consummation of a merger, consolidation, statutory share exchange or similar
form of corporate transaction involving the Company or any of its subsidiaries that requires
the approval of the Company’s stockholders, whether for such transaction or the issuance of
securities in the transaction (a “Business Combination”), unless immediately following such
Business Combination: (A) more than 60% of the total voting power of (x) the corporation
resulting from such Business Combination (the “Surviving Corporation”), or (y) if
applicable, the ultimate parent corporation that directly or indirectly has beneficial
ownership of 100% of the voting securities eligible to elect directors of the Surviving
Corporation (the “Parent Corporation”), is represented by Company Voting Securities that
were outstanding immediately prior to such Business Combination (or, if applicable, is
represented by shares into which such Company Voting Securities were converted pursuant to
such Business Combination), and such voting power among the holders thereof is in
substantially the same proportion as the voting power of such Company Voting Securities
among the holders thereof immediately prior to the Business Combination, (B) no person
(other than any employee benefit plan (or related trust) sponsored or maintained by the
Surviving Corporation or the Parent Corporation), is or becomes the beneficial owner,
directly or indirectly, of 50% or more of the total voting power of the outstanding voting
securities eligible to elect directors of the Parent Corporation (or, if there is no Parent
Corporation, the Surviving Corporation) and (C) at least a majority of the members of the
board of directors of the Parent Corporation (or, if there is no Parent Corporation, the
Surviving Corporation) following the consummation of the Business Combination were Incumbent
Directors at the time of the Board’s approval of the execution of the initial agreement
providing for such Business Combination (any Business Combination which satisfies all of the
criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying
Transaction”);

(iv) the stockholders of the Company approve a plan of complete liquidation or
dissolution of the Company or the consummation of a sale of all or substantially all of the
Company’s assets; or

(v) the occurrence of any other event that the Board determines by a duly approved
resolution constitutes a Change in Control.

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any
person acquires beneficial ownership of more than 50% of Company Voting Securities as a result of
the acquisition of Company Voting Securities by the Company which reduces the number of Company
Voting Securities outstanding; provided, that if after such acquisition by the
Company such person becomes the beneficial owner of additional Company Voting Securities that
increases the percentage of outstanding Company Voting Securities beneficially owned by such
person, a Change in Control of the Company shall then occur.

2

APPENDIX B

Cut-back to Safe Harbor Cap on Payments

(a) Notwithstanding anything in this Agreement to the contrary, in the event it shall be
determined that any payment, award, benefit or distribution (or any acceleration of any payment,
award, benefit or distribution) by the Company (or any of its affiliated entities) or any entity
which effectuates a Change in Control (or any of its affiliated entities) to or for the benefit of
Executive, whether pursuant to the terms of this Agreement or otherwise (the “Payments”), would be
subject to the excise tax (the “Excise Tax”) imposed by Section 4999 of the Internal Revenue Code
of 1986, as amended (the “Code”), then the amounts payable to Executive under this Agreement shall
be reduced (reducing first the payments under Section 7(a) and (b), unless an alternative method of
reduction is elected by Executive) to the maximum amounts will result in no portion of the Payments
being subject to such excise tax (the “Safe Harbor Cap”). For purposes of reducing the Payments to
the Safe Harbor Cap, only amounts payable to Executive under this Agreement (and no other Payments)
shall be reduced, unless consented to by Executive.

(b) All determinations required to be made under this Appendix B shall be made by the public
accounting firm that is retained by the Company as of the date immediately prior to the Change in
Control (the “Accounting Firm”) which shall provide detailed supporting calculations both to the
Company and Executive within ten (10) business days of the receipt of notice from the Company or
Executive that there has been a Payment, or such earlier time as is requested by the Company.
Notwithstanding the foregoing, in the event (i) the Board shall determine prior to the Change in
Control that the Accounting Firm is precluded from performing such services under applicable
auditor independence rules or (ii) the Audit Committee of the Board determines that it does not
want the Accounting Firm to perform such services because of auditor independence concerns or (iii)
the Accounting Firm is serving as accountant or auditor for the person(s) effecting the Change in
Control, the Board shall appoint another nationally recognized public accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred to as the
Accounting Firm hereunder). All fees and expenses (including, but not limited to, the costs of
retaining experts) of the Accounting Firm shall be borne solely by the Company and the Company
shall enter into any agreement requested by the Accounting Firm in connection with the performance
of the services hereunder.

If the Accounting Firm determines that payments shall be reduced to the Safe Harbor Cap, it
shall furnish Executive with a written opinion to that effect, and to the effect that Executive is
not required to report any Excise Tax on Executive’s federal income tax return. If the Accounting
Firm determines that no Excise Tax would otherwise be payable by Executive, it shall furnish
Executive with a written opinion to such effect, and to the effect that Executive is not required
to report any Excise Tax on Executive’s federal income tax return. The determination by the
Accounting Firm shall be binding upon the Company and Executive (except as provided in paragraph
(c) below).

(b) If it is established pursuant to a final determination of a court or the Internal
Revenue Service (the “IRS”) proceeding which has been finally and conclusively resolved, that
Payments have been made to, or provided for the benefit of, Executive by the Company, which are
in excess of the limitations provided in this Appendix B (hereinafter referred to as an “Excess
Payment”), Executive shall repay the Excess Payment to the Company on demand, together with
interest on the Excess Payment at the applicable federal rate (as defined in Section 1274(d) of
the Code) from the date of Executive’s receipt of such Excess Payment until the date of such
repayment. As a result of the uncertainty in the application of Section 4999 of the Code at the
time of the determination, it is possible that Payments which will not have been made by the
Company should have been made (an “Underpayment”), consistent with the calculations required to
be made under this Appendix B. In the event that it is determined (i) by the Accounting Firm,
the Company (which shall include the position taken by the Company, or together with its
consolidated group, on its federal income tax return) or the IRS or (ii) pursuant to a
determination by a court, that an Underpayment has occurred, the Company shall pay an amount
equal to such Underpayment to Executive within ten (10) days of such determination together with
interest on such amount at the applicable federal rate from the date such amount would have been
paid to Executive until the date of payment. Executive shall cooperate, to the extent
Executive’s expenses are reimbursed by the Company, with any reasonable requests by the Company
in connection with any contests or disputes with the Internal Revenue Service in connection with
the Excise Tax or the determination of the Excess Payment. Notwithstanding the foregoing, in the
event that amounts payable under this Agreement were reduced pursuant to paragraph (a) of this
Appendix B and the value of its stock options is subsequently redetermined by the Accounting Firm
(as defined below) within the context of Treasury Regulation §1.280G-1 Q/A 33 that reduces the
value of the Payments attributable to such options, the Company shall promptly pay to Executive
any amounts payable under this Agreement that were not previously paid solely as a result of
paragraph (a) up to the Safe Harbor Cap.

3

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