Document:

EX-10.68

Exhibit 10.68

Warrant to Purchase shares

Warrant Number 

Warrant to Purchase Common Stock

of

Cytokinetics, Incorporated

THIS CERTIFIES that        or any subsequent holder hereof (“Holder”) has the right to
purchase from Cytokinetics, Incorporated, a Delaware corporation, (the “Company”),      
(      ) fully paid and nonassessable shares of the Company’s common stock, $0.001 par value per
share (“Common Stock”), subject to adjustment as provided herein, at a price equal to the Exercise
Price as defined in Section 3 below, at any time during the Term (as defined below).

Holder agrees with the Company that this Warrant to Purchase Common Stock of the Company (this
“Warrant” or this “Agreement”) is issued and all rights hereunder shall be held subject to all of
the conditions, limitations and provisions set forth herein.

1. Date of Issuance and Term.

This Warrant shall be deemed to be issued on       ,        (“Date of Issuance”). The term of this
Warrant begins on the date that is six months after the Date of Issuance and ends at 5:00 p.m., New
York City time, on the date that is four (4) years after the Date of Issuance (the “Term”).

Notwithstanding anything herein to the contrary, the Company shall not issue to the Holder, and the
Holder may not acquire, a number of shares of Common Stock upon exercise of this Warrant to the
extent that, upon such exercise, the number of shares of Common Stock then beneficially owned by
the Holder and its Affiliates and any other persons or entities whose beneficial ownership of
Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) (including shares held by any “group” of
which the Holder is a member, but excluding shares beneficially owned by virtue of the ownership of
securities or rights to acquire securities that have limitations on the right to convert, exercise
or purchase similar to the limitation set forth herein) would exceed 9.98% of the total number of
shares of Common Stock then issued and outstanding (the “9.98% Cap”), provided, however, that the
9.98% Cap shall not apply with respect to the issuance of shares of Common Stock pursuant to a
Cashless Major Exercise (as defined below) in connection with a Major Transaction (as defined
below) covered by the provisions of Section 5(c)(i)(A)(1) below in which the Company is not the
surviving entity (a “Qualified Change of Control Transaction”) to the extent that the number of
shares beneficially owned by the Holder and its Affiliates in the successor entity immediately
following consummation of such Qualified Change of Control Transaction does not exceed 9.98% of the
outstanding common stock of such successor entity and provided, further, that the 9.98% Cap shall
only apply to the extent that the Common Stock is deemed to constitute an “equity security”
pursuant to Rule 13d-1(i) promulgated under the Exchange Act. For purposes hereof, “group” has the
meaning set forth in Section 13(d) of the Exchange Act and applicable regulations of the Securities
and Exchange Commission (the “SEC”), and the percentage held by the Holder shall be determined in a
manner consistent with the provisions of Section 13(d) of the Exchange Act. Upon the written
request of the Holder, the Company shall, within three (3) Trading Days, confirm in writing to the
Holder (which writing may be via email) the number of shares of Common Stock then outstanding.

“Affiliate” means any person or entity that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with a person or entity, as
such terms are used in and construed under Rule 144 under the Securities Act of 1933, as amended
(the “Securities Act”). With respect to a Holder of Warrants, any investment fund or managed
account that is managed on a discretionary basis by the same investment manager as such Holder will
be deemed to be an Affiliate of such Holder.

“Holder” means        and any transferee or assignee pursuant to the terms of this Warrant.

2. Exercise.

(a) Manner of Exercise. During the Term, this Warrant may be Exercised as to all or any lesser
number of whole shares of Common Stock covered hereby (the “Warrant Shares” or the “Shares”) upon
surrender of this Warrant, with the Exercise Form attached hereto as Exhibit A (the
“Exercise Form”) duly completed and executed, together with the full Exercise Price (as defined
below, which may be satisfied by a Cash Exercise or a Cashless Exercise, as each is defined below)
for each share of Common Stock as to which this Warrant is Exercised, at the office of the Company,
Attention: Stock Administrator, 280 East Grand Avenue, South San Francisco, California 94080;
Phone: (650) 624-3000, Fax: (650) 624-3200, with an electronic copy (for informational purposes
only, and not constituting delivery hereunder) to: stockadministrator@cytokinetics.com, or at such
other office or agency as the Company may designate in writing, by overnight mail, with an advance
copy of the Exercise Form sent to the Company and its transfer agent (“Transfer Agent”) by
facsimile (such surrender and payment of the Exercise Price hereinafter called the “Exercise” of
this Warrant).

(b) Date of Exercise. The “Date of Exercise” of the Warrant shall be defined as the date that the
Exercise Form attached hereto as Exhibit A, completed and executed, is sent by facsimile to
the Company and the Exercise Price is satisfied, provided that the original Warrant and Exercise
Form are received by the Company within two (2) Trading Days. Alternatively, the Date of Exercise
shall be defined as the date the original Exercise Form is received by the Company and the Exercise
Price is satisfied, if Holder has not sent advance notice by facsimile. Upon delivery of the
Exercise Form to the Company by facsimile or otherwise, the Holder shall be deemed for all
corporate purposes to have become the holder of record of the Warrant Shares with respect to which
this Warrant has been Exercised, irrespective of the date such Warrant Shares are credited to the
Holder’s Depository Trust Company (“DTC”) account or the date of delivery of the certificates
evidencing such Warrant Shares, as the case may be; provided, however, that in the event of a
Cashless Major Exercise in respect of a Qualified Change of Control Transaction, the Holder shall
be deemed to have become the holder of record of the shares issuable upon such exercise immediately
prior to the consummation of such Qualified Change of Control Transaction and provided, further,
that in the event of a Cashless Major Exercise triggered by an event set forth in Section
5(c)(i)(G), the Holder shall be deemed to have become the holder of record of the shares issuable
upon such exercise immediately following the occurrence of the Major Transaction.

(c) Delivery of Common Stock Upon Exercise. Within three (3) business days after any Date of
Exercise, or in the case of a Cashless Major Exercise or a Cashless Default Exercise (each as
defined in Section 5(c) below), within the period provided in Section 5(c)(iv) or Section 3(c), as
applicable (the “Delivery Period”), the Company shall issue and deliver (or cause its Transfer
Agent to issue and deliver) in accordance with the terms hereof to or upon the order of the Holder
that number of shares of Common Stock (“Exercise Shares”) for the portion of this Warrant exercised
as shall be determined in accordance herewith. Upon the Exercise of this Warrant or any part
hereof, the Company shall, at its own cost and expense, take all commercially reasonable actions,
including obtaining and delivering an opinion of counsel, to assure that the Transfer Agent shall
issue stock certificates in the name of Holder (or its nominee) or such other persons as designated
by Holder and in such denominations to be specified at Exercise representing the number of shares
of Common Stock issuable upon such Exercise. Notwithstanding the foregoing, the Company shall not
be required to pay any tax or other charge imposed in connection with any transfer involved in the
issuance of any certificate for Exercise Shares in any name other than that of the original
registered holder of this Warrant, and in such case the Company shall not be required to issue or
deliver any stock certificate until such tax or other charge has been paid or it has been
established to the Company’s satisfaction that no tax or other charge is due. The Company warrants
that no instructions other than these instructions have been or will be given to the Transfer Agent
and that this Warrant and the Exercise Shares have been registered under the Securities Act and,
when issued in accordance with the terms of this Warrant, will be freely tradeable, and freely
transferable, and will not contain a legend restricting the resale or transferability of the
Exercise Shares.

(d) Delivery Failure. In addition to any other remedies which may be available to the Holder, in
the event that the Company fails for any reason to effect delivery of the Exercise Shares by the
end of the Delivery Period (a “Delivery Failure”), the Holder will be entitled to revoke all or
part of the relevant Exercise Form by delivery of a notice to such effect to the Company not later
than three (3) Trading Days after the end of the Delivery Period, whereupon the Company and the
Holder shall each be restored to their respective positions immediately prior to the delivery of
such notice, except that the liquidated damages described herein shall be payable through the date
notice of revocation or rescission is given to the Company.

(e) Reserved.

(f) Cancellation of Warrant. This Warrant shall be canceled upon the full Exercise, of this
Warrant, and, as soon as practical after the Date of Exercise, Holder shall be entitled to receive
Common Stock for the number of shares purchased upon such Exercise of this Warrant, and if this
Warrant is not Exercised in full, Holder shall be entitled to receive a new Warrant (containing
terms identical to this Warrant) representing any unexercised portion of this Warrant in addition
to such Common Stock.

(g) Holder of Record. Each person in whose name any Warrant for shares of Common Stock is issued
shall, for all purposes, be deemed to be the Holder of record of the shares resulting from such
Exercise on the Date of Exercise of this Warrant, irrespective of the date of delivery of the
Common Stock purchased upon the Exercise of this Warrant.

(h) Delivery of Electronic Shares. In lieu of delivering physical certificates representing the
Common Stock issuable upon Exercise or legend removal, or representing Failure Payment Shares,
provided the Transfer Agent is participating in the DTC Fast Automated Securities Transfer (“FAST”)
program, upon written request of the Holder, the Company shall use commercially reasonable efforts
to cause its Transfer Agent to electronically transmit the Common Stock issuable upon Exercise to
the Holder by crediting the account of the Holder’s prime broker with DTC through its Deposit
Withdrawal Agent Commission (DWAC) system. The time periods for delivery and penalties described
herein shall apply to the electronic transmittals described herein. Any delivery not effected by
electronic transmission shall be effected by delivery of physical certificates.

(i) Buy-In. In addition to any other rights available to the Holder, if the Company fails to cause
its Transfer Agent to transmit to the Holder a certificate or certificates, or electronic shares
through DWAC, representing the Exercise Shares pursuant to an Exercise on or before the Delivery
Period (other than a failure caused by incorrect or incomplete information provided by the Holder
to the Company hereunder), and if after such date the Holder is required by its broker to purchase
(in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases
shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Exercise Shares
that the Company was required to deliver to the Holder in connection with such Exercise (a
“Buy-In”), then the Company shall (1) pay in cash to the Holder the amount by which (x) the
Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common
Stock so purchased exceeds (y) the amount obtained by multiplying (A) the number of Exercise Shares
that the Company was required to deliver to the Holder in connection with the Exercise at issue
times and (B) the price at which the sell order giving rise to such purchase obligation was
executed, and (2) at the option of the Holder, either reinstate the portion of the Warrant and
equivalent number of Exercise Shares for which such Exercise was not honored or deliver to the
Holder the number of shares of Common Stock that would have been issued had the Company timely
complied with its Exercise and delivery obligations hereunder. For example, if the Holder purchases
Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an
attempted Exercise to cover the sale of Common Stock with an aggregate sale price giving rise to
such purchase obligation of $10,000, under clause (1) of the immediately preceding sentence the
Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written
notice, within three (3) Trading Days after the occurrence of a Buy-In, indicating the amounts
payable to the Holder in respect of the Buy-In, together with applicable confirmations and other
evidence reasonably requested by the Company. Nothing herein shall limit a Holder’s right to pursue
any other remedies available to it hereunder, at law or in equity including, without limitation, a
decree of specific performance and/or injunctive relief with respect to the Company’s failure to
timely deliver certificates representing shares of Common Stock upon Exercise of the Warrant as
required pursuant to the terms hereof.

3. Payment of Warrant Exercise Price for Cash Exercise or Cashless Exercise; Cashless Major
Exercise and Cashless Default Exercise.

(a) Exercise Price. The exercise price under this Warrant (“Exercise Price”) shall initially equal
$1.65 per share, subject to adjustment pursuant to the terms hereof, including but not limited to
Section 5 below.

Payment of the Exercise Price may be made by either of the following, or a combination thereof, at
the election of Holder:

(i) Cash Exercise: Subject to subsection 3(d) hereof, the Holder may exercise this Warrant
in cash, bank or cashier’s check or wire transfer (a “Cash Exercise”); or

(ii) Cashless Exercise: The Holder, at its option, may exercise this Warrant in a cashless
exercise transaction. In order to effect a Cashless Exercise, the Holder shall surrender this
Warrant at the principal office of the Company together with notice of cashless election, in which
event the Company shall issue Holder a number of shares of Common Stock computed using the
following formula (a “Cashless Exercise”):

X = Y (A-B)/A

where: X = the number of shares of Common Stock to be issued to Holder.

Y = the number of shares of Common Stock for which this Warrant is being Exercised.

A = the Market Price of one (1) share of Common Stock (for purposes of this
Section 3(a)(ii), where “Market Price,” as of any date, means the Volume Weighted Average
Price (as defined herein) of the Company’s Common Stock during the ten (10) consecutive
Trading Day period immediately preceding the date in question.

B = the Exercise Price.

As used herein, the “Volume Weighted Average Price” for any security as of any date means
the volume weighted average sale price on The NASDAQ Global Select Market (“NASDAQ”) as
reported by, or based upon data reported by, Bloomberg Financial Markets or an equivalent,
reliable reporting service mutually acceptable to and hereafter designated by holders of a
majority in interest of the Warrants and the Company (“Bloomberg”) or, if NASDAQ is not the
principal trading market for such security, the volume weighted average sale price of such
security on the principal securities exchange or trading market where such security is
listed or traded as reported by Bloomberg, or, if no volume weighted average sale price is
reported for such security, then the last closing trade price of such security as reported
by Bloomberg, or, if no last closing trade price is reported for such security by Bloomberg,
the average of the bid prices of any market makers for such security that are listed in the
over the counter market by the Financial Industry Regulatory Authority, Inc. or in the “pink
sheets” by the Pink OTC Market, Inc. If the Volume Weighted Average Price cannot be
calculated for such security on such date in the manner provided above, the volume weighted
average price shall be the fair market value as mutually determined by the Company and the
Holders of a majority in interest of the Warrants being Exercised for which the calculation
of the volume weighted average price is required in order to determine the Exercise Price of
such Warrants. “Trading Day” shall mean any day on which the Common Stock is traded for
any period on NASDAQ, or on the principal securities exchange or other securities market on
which the Common Stock is then being traded.

For purposes of Rule 144 and sub-section (d)(3)(ii) thereof, it is intended, understood and
acknowledged that the Common Stock issuable upon Exercise of this Warrant in a Cashless Exercise
transaction shall be deemed to have been acquired at the time this Warrant was issued. Moreover, it
is intended, understood and acknowledged that the holding period for the Common Stock issuable upon
Exercise of this Warrant in a Cashless Exercise transaction shall be deemed to have commenced on
the date this Warrant was issued.

(b) Cashless Major Exercise: To the extent the Holder shall exercise this Warrant or any portion
thereof as a Cashless Major Exercise pursuant to Section 5(c)(i) below, the Holder shall surrender
this Warrant at the principal office of the Company together with the Exercise Form indicating that
the Holder is exercising this Warrant (or such portion thereof) pursuant to a Cashless Major
Exercise, in which event the Company shall issue a number of shares of Common Stock equal to the
Black-Scholes Value (as defined in Section 5(c)(iii) below) of the Warrant (or such applicable
portion being exercised) divided by the closing price of the Common Stock on the principal
securities exchange or other securities market on which the Common Stock is then traded on the
Trading Day immediately preceding the date on which the applicable Major Transaction is
consummated.

(c) Cashless Default Exercise. To the extent the Holder exercises this Warrant as a Cashless
Default Exercise pursuant to Section 11(b)(i) below, the Holder shall surrender this Warrant to the
principal office of the Company together with the Exercise Form indicating that the Holder is
exercising this Warrant pursuant to a Cashless Default Exercise, in which event the Company shall
issue to the Holder, within five (5) Trading Days of the applicable Default Notice, a number of
shares of Common Stock (which shares shall be valued at the Volume Weighted Average Price for the
five (5) Trading Days prior to the applicable Default Notice) equal to the greater of (A) the
Black-Scholes value (determined by use of the Black-Scholes Option Pricing Model using the criteria
set forth on Schedule I hereto) of the remaining unexercised portion of this Warrant on the date of
such Default Notice and (B) the Black-Scholes value (determined by use of the Black-Scholes Option
Pricing Model using the criteria set forth on Schedule I hereto) of the remaining unexercised
portion of this Warrant on the Trading Day immediately preceding the date that the Exercise Shares
in respect of such Cashless Default Exercise are issued to the Holder.

(d) Cash Exercise; Effective Registration Statement. In the event that the Company does not have
an effective registration statement covering the issuance of shares of Common Stock pursuant to a
Cash Exercise, the Holder may only exercise this Warrant by means of a Cashless Exercise, and in
such circumstances, and for so long as such circumstances continue, a Cash Exercise shall be
prohibited. In the event of either a Cash Exercise or a Cashless Exercise as contemplated by this
Section 3, under no circumstances would the Company be required to deliver cash in settlement of
this Warrant.

(e) Dispute Resolution. In the case of a dispute as to the determination of the closing price or
the Volume Weighted Average Price of the Company’s Common Stock or the arithmetic calculation of
the Exercise Price, Market Price or any Major Transaction Warrant Early Termination Price, the
Company shall submit the disputed determinations or arithmetic calculations via facsimile within
two (2) business days of receipt, or deemed receipt, of the Exercise Notice or Major Transaction
Early Termination Notice, or other event giving rise to such dispute, as the case may be, to the
Holder. If the Holder and the Company are unable to agree upon such determination or calculation
within two (2) business days of such disputed determination or arithmetic calculation being
submitted to the Holder, then the Company shall, within four (4) business days submit via facsimile
(i) the disputed determination of the closing price or the Volume Weighted Average Price of the
Company’s Common Stock to an independent, reputable investment bank selected by the Company and
approved by the Holder, which approval shall not be unreasonably withheld or (ii) the disputed
arithmetic calculation of the Exercise Price, Market Price or any Major Transaction Warrant Early
Termination Price to the Company’s independent, outside accountant, or another accounting firm of
national standing selected by the Company. The Company shall cause the investment bank or the
accountant, as the case may be, to perform the determinations or calculations and notify the
Company and the Holder of the results no later than the later of (i) five (5) business days from
the time it receives the disputed determinations or calculations or (ii) five (5) business days
from the selection of the investment bank and accounting firm, as applicable. Such investment
bank’s or accountant’s determination or calculation, as the case may be, shall be binding upon all
parties absent demonstrable error.

4. Transfer Rights. Subject to the provisions of Section 8 of this Warrant, this Warrant
may be transferred on the books of the Company, in whole or in part, in person or by attorney, upon
surrender of this Warrant properly completed and endorsed. This Warrant shall be canceled upon
such surrender and, as soon as practicable thereafter, the person to whom such transfer is made
shall be entitled to receive a new Warrant or Warrants as to the portion of this Warrant
transferred, and Holder shall be entitled to receive a new Warrant as to the portion hereof
retained.

5. Adjustments Upon Certain Events.

(a) Participation. The Holder, as the holder of this Warrant, shall be entitled to receive such
dividends paid and distributions of any kind made to the holders of Common Stock of the Company to
the same extent as if the Holder had Exercised this Warrant into Common Stock (without regard to
any limitations on exercise herein or elsewhere and without regard to whether or not a sufficient
number of shares are authorized and reserved to effect any such exercise and issuance) and had held
such shares of Common Stock on the record date for such dividends and distributions. Payments under
the preceding sentence shall be made concurrently with the dividend or distribution to the holders
of Common Stock.

(b) Recapitalization or Reclassification. If the Company shall at any time effect a stock split,
payment of stock dividend, recapitalization, reclassification or other similar transaction of such
character that the shares of Common Stock shall be changed into or become exchangeable for a larger
or smaller number of shares, then upon the effective date thereof, the number of shares of Common
Stock which Holder shall be entitled to purchase upon Exercise of this Warrant shall be increased
or decreased, as the case may be, in direct proportion to the increase or decrease in the number of
shares of Common Stock by reason of such stock split, payment of stock dividend, recapitalization,
reclassification or similar transaction, and the Exercise Price shall be, in the case of an
increase in the number of shares, proportionally decreased and, in the case of decrease in the
number of shares, proportionally increased. The Company shall give Holder the same notice it
provides to holders of Common Stock of any transaction described in this Section 5(b).

(c) Rights Upon Major Transaction.

(i) Major Transaction. In the event that a Major Transaction (as defined below) occurs,
then (1) in the case of a Cash-Out Major Transaction and in the case of a Mixed Major Transaction
to the extent of the percentage of the cash consideration in the Mixed Major Transaction
(determined in accordance with the definition of a Mixed Major Transaction below), the Holder, at
its option, may require the Company to redeem the Holder’s outstanding Warrants in accordance with
Section 5(c)(iii) below and (2) in the case of all other Major Transactions and in the case of a
Mixed Major Transaction to the extent of the percentage of the consideration represented by
securities of a Successor Entity in the Mixed Major Transaction, the Holder shall have the right to
exercise this Warrant as a Cashless Major Exercise. Except with respect to a Cash-Out Major
Transaction, in the event the Holder shall not have exercised any of its rights under clauses (1)
or (2) above within the applicable time periods set forth herein, then the Major Transaction shall
be treated as an Assumption (as defined below) in accordance with Section 5(c)(ii) below. However,
the Holder may waive any of its rights under this Section 5(c) with respect to a Major Transaction.
Each of the following events shall constitute a “Major Transaction”:

(A) a consolidation, merger, purchase or exchange of shares, recapitalization, reorganization,
business combination, tender or exchange offer or other similar event, (1) following which the
holders of Common Stock immediately preceding such consolidation, merger, purchase, exchange,
recapitalization, reorganization, combination tender or exchange offer or event either (a) no
longer hold a majority of the shares of Common Stock or (b) no longer have the ability to elect a
majority of the board of directors of the Company or (2) as a result of which shares of Common
Stock shall be changed into (or the shares of Common Stock become entitled to receive) the same or
a different number of shares of the same or another class or classes of stock or securities of the
Company or another entity (collectively, a “Change of Control Transaction”);

(B) the sale or transfer of significant assets of the Company which, without limitation, shall
include, but not be limited to, a sale or transfer in one transaction or a series of related
transactions of more than 50% of the Company’s assets as reflected on its latest balance sheet
(including proprietary rights), provided, however, that notwithstanding the foregoing, none of the
following shall constitute a Major Transaction: (1) a collaborative arrangement, licensing
agreement, manufacturing agreement, development agreement, joint venture or partnership or similar
business arrangement on an arm’s length basis providing for the research, development or commercial
exploitation, or right to research, develop or commercially exploit, the Company’s technology,
intellectual property or products (including arrangements that involve the assignment or licensing
of any existing or newly developed intellectual property or other assets under such arrangements)
whereby income or profits are to be shared (including, without limitation, by lump sum royalty or
running royalty) with any other entity shall not constitute a Major Transaction, unless such
transaction results in a sale of all or substantially all of the Company’s assets, (2) a transfer
in the ordinary course of business of the Company’s technology (including a non-exclusive license
under its intellectual property) to a service provider or academic collaborator, (3) the sale,
transfer or license of assets to a wholly-owned subsidiary of the Company, so long as such
subsidiary remains wholly-owned by the Company and so long as the assets of such subsidiary are
reflected on the consolidated balance sheet of the Company, and (4) the granting of a security
interest in the Company’s assets so long as there is a no foreclosure, or other enforcement of
remedies, with respect to the assets that are the subject of such security interest;

(C) the liquidation, bankruptcy, insolvency, dissolution or winding-up (or the occurrence of any
analogous proceeding) affecting the Company;

(D) the shares of Common Stock cease to be listed, traded or publicly quoted on NASDAQ and are not
promptly re-listed or requoted on an Eligible Market (as hereinafter defined); or

(G) the Common Stock ceases to be registered under Section 12 of the Exchange Act.

(ii) Assumption. The Company shall not enter into or be party to a Major Transaction that is to be
treated as an Assumption pursuant to Section 5(c)(i), unless (i) any Person purchasing the
Company’s assets or Common Stock, or any successor entity resulting from such Major Transaction (in
each case, a “Successor Entity”), assumes in writing all of the obligations of the Company under
this Warrant in accordance with the provisions of this Section (ii), including agreements, for the
benefit of the Holder, to deliver to each holder of Warrants in exchange for such Warrants a
security of the Successor Entity evidenced by a written instrument substantially similar in form
and substance to the Warrants, including, without limitation, representing the appropriate number
of shares of the Successor Entity, having similar exercise rights as the Warrants (including but
not limited to a similar Exercise Price and similar Exercise Price adjustment provisions based on
the price per share or conversion ratio to be received by the holders of Common Stock in the Major
Transaction), satisfactory to the Holder and (ii) any Successor Entity (including its Parent
Entity) is a publicly traded corporation whose common stock is quoted on or listed for trading on
an Eligible Market. Upon the occurrence of any Major Transaction, any Successor Entity shall
succeed to, and be substituted for (so that from and after the date of such Major Transaction, the
provisions of this Warrant referring to the “Company” shall refer instead to the Successor Entity),
and may exercise every right and power of the Company and shall assume all of the obligations of
the Company under this Warrant with the same effect as if such Successor Entity had been named as
the Company herein. Upon consummation of the Major Transaction, the Successor Entity shall deliver
to the Holder confirmation that there shall be issued upon exercise or redemption of this Warrant
at any time after the consummation of the Major Transaction, in lieu of the shares of Common Stock
(or other securities, cash, assets or other property) issuable upon the exercise of the Warrants
prior to such Major Transaction, such shares of publicly traded common stock (or their equivalent)
of the Successor Entity, as adjusted in accordance with the provisions of this Warrant. The
provisions of this Section shall apply similarly and equally to successive Major Transactions and
shall be applied without regard to any limitations on the exercise of this Warrant other than any
applicable beneficial ownership limitations. Any assumption of Company obligations under this
paragraph shall be referred to herein as an “Assumption”

(iii) Notice; Major Transaction Early Termination Right; Notice of Cashless Major Exercise.
At least fifteen (15) days prior to the consummation of any Major Transaction, but, in any event,
within five (5) business days following the first to occur of (x) the date of the public
announcement of such Major Transaction if such announcement is made before 4:00 p.m., New York City
time, or (y) the day following the public announcement of such Major Transaction if such
announcement is made on and after 4:00 p.m., New York City time, the Company shall deliver written
notice thereof via facsimile and overnight courier to the Holder (a “Major Transaction Notice”).
At any time during the period beginning after the Holder’s receipt of a Major Transaction Notice
and ending five (5) Trading Days prior to the consummation of such Major Transaction (the “Early
Termination Period”), the Holder may require the Company to redeem (an “Early Termination Upon
Major Transaction”) all or any portion of this Warrant not eligible to be treated as a Cashless
Major Exercise (without taking into consideration the 9.98% Cap) by delivering written notice
thereof (“Major Transaction Early Termination Notice”) to the Company, which Major Transaction
Early Termination Notice shall indicate the portion of the principal amount (the “Early Termination
Principal Amount”) of the Warrant that the Holder is electing to have redeemed. The portion of this
Warrant subject to early termination pursuant to this Section 5(c)(iii) (the “Redeemable Shares”),
shall be redeemed by the Company at a price (the “Major Transaction Warrant Early Termination
Price”) payable in cash equal to the “Black Scholes Value” of the Redeemable Shares determined by
use of the Black Scholes Option Pricing Model using the criteria set forth in Schedule 1 hereto
(the “Black Scholes Value”).

To the extent the Holder shall elect to effect a Cashless Major Exercise in respect of a Major
Transaction, the Holder shall deliver its exercise notice in accordance with Section 3(b), within
the Early Termination Period.

(iv) Escrow; Payment of Major Transaction Warrant Early Termination Price. Following the
receipt of a Major Transaction Early Termination Notice or a Cashless Major Exercise from the
Holder, the Company shall not effect a Major Transaction that is being treated as an early
termination or is eligible to be treated as a Cashless Major Exercise unless (a) it has entered
into written agreements that specifically provide that it shall be a condition precedent to the
consummation of such Major Transaction that the Holder be issued or paid, as the case may be, an
amount in shares of Common Stock or cash, as applicable, equal to the Major Transaction Warrant
Early Termination Price and/or applicable Exercise Shares and (b) it shall first place into an
escrow account with an independent escrow agent, at least three (3) business days prior to the
closing date of the Major Transaction (the “Major Transaction Escrow Deadline”), an amount in
shares of Common Stock (or irrevocable instructions to the Transfer Agent to issue such shares) or
cash, as applicable, equal to the Major Transaction Warrant Early Termination Price and/or
applicable Exercise Shares; provided, however, the Company will not be required to
deposit cash in escrow to the extent it does not have sufficient liquid assets to reasonably fund
the escrow. Concurrently upon closing of such Major Transaction, the Company shall pay or shall
instruct the escrow agent to pay the Major Transaction Warrant Early Termination Price and/or to
deliver the applicable Exercise Shares to the Holder. For purposes of determining the amount
required to be placed in escrow pursuant to the provisions of this subsection (iv) and without
affecting the amount of the actual Major Transaction Warrant Early Termination Price and/or
applicable Exercise Shares, the calculation of the price referred to in clause (1) of the first
column of Schedule 1 hereto with respect to Stock Price shall be determined based on the Closing
Market Price (as defined on Schedule I) of the Common Stock on the Trading Day immediately
preceding the date that the funds and/or applicable Exercise Shares, as applicable, are deposited
with the escrow agent.

(v) Injunction. Following the receipt of a Major Transaction Early Termination Notice or
notice of a Cashless Major Exercise from the Holder, in the event that the Company attempts to
consummate a Major Transaction without either placing the Major Transaction Warrant Early
Termination Price or applicable Exercise Shares, as applicable, in escrow in accordance with
subsection (iv) above or without payment of the Major Transaction Warrant Early Termination Price
or issuance of the applicable Exercise Shares, as applicable, to the Holder prior to consummation
of such Major Transaction, the Holder shall have the right to apply for an injunction in any state
or federal courts sitting in the State of Delaware to prevent the closing of such Major Transaction
until the Major Transaction Warrant Early Termination Price is paid to the Holder, in full or the
applicable Exercise Shares are delivered, as applicable.

An early termination required by this Section 5(c) shall be made in accordance with the provisions
of Section 12 and shall have priority to payments to holders of Common Stock in connection with a
Major Transaction to the extent an early termination required by this Section 5(c)(iii) are deemed
or determined by a court of competent jurisdiction to be prepayments of the Warrant by the Company,
such early termination shall be deemed to be voluntary prepayments. Notwithstanding anything to
the contrary in this Section 5, until the Major Transaction Warrant Early Termination Price is paid
in full, this Warrant may be exercised, in whole or in part, by the Holder into shares of Common
Stock, or in the event the Exercise Date is after the consummation of the Major Transaction, shares
of publicly traded common stock (or their equivalent) of the Successor Entity pursuant to Section
5(c). The parties hereto agree that in the event of the Company’s early termination of any portion
of the Warrant under this Section 5(c), the Holder’s damages would be uncertain and difficult to
estimate because of the parties’ inability to predict future interest rates and the uncertainty of
the availability of a suitable substitute investment opportunity for the Holder. Accordingly, any
premium due under this Section 5(c) is intended by the parties to be, and shall be deemed, a
reasonable estimate of the Holder’s actual loss of its investment opportunity and not as a penalty.

For purposes hereof:

“Cash-Out Major Transaction” means a Major Transaction in which the consideration payable to
holders of Common Stock in connection with the Major Transaction consists solely of cash.

“Cashless Default Exercise” shall mean an exercise of this Warrant as a “Cashless Default Exercise”
in accordance with Section 3(c) and 11(b) hereof.

“Cashless Major Exercise” shall mean an exercise of this Warrant or portion thereof as a “Cashless
Major Exercise” in accordance with Section 3(b) and 5(c)(i) hereof.

“Eligible Market” means the over the counter Bulletin Board, the New York Stock Exchange, Inc., the
NYSE Arca, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market or
the NYSE Alternext U.S. or any successor exchanges or markets thereof.

“Mixed Major Transaction” means a Major Transaction in which the consideration payable to the
stockholders of the Company consists partially of cash and partially of securities of a Successor
Entity. If the Successor Entity is a Publicly Traded Successor Entity, the percentage of
consideration represented by securities of such Successor Entity shall be equal to the percentage
that the value of the aggregate anticipated number of shares of the Publicly Traded Successor
Entity to be issued to holders of Common Stock of the Company represents in comparison to the
aggregate value of all consideration, including cash consideration, in such Mixed Major
Transaction, as such values are set forth in any definitive agreement for the Mixed Major
Transaction that has been executed at the time of the first public announcement of the Major
Transaction or, if no such value is determinable from such definitive agreement, based on the
closing market price for shares of the Publicly Traded Successor Entity on its principal securities
exchange on the Trading Day preceding the first public announcement of the Mixed Major Transaction.
If the Successor Entity is a Private Successor Entity, the percentage of consideration represented
by securities of such Successor Entity shall be determined in good-faith by the Company’s Board of
Directors

“Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable
Person and whose common stock or equivalent equity security is quoted or listed on an Eligible
Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity
with the largest public market capitalization as of the date of consummation of a Major
Transaction.

“Person” means an individual, a limited liability company, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization, any other entity and a government or any
department or agency thereof.

“Private Successor Entity” means a Successor Entity that is not a Publicly Traded Successor Entity.

“Publicly Traded Successor Entity” means a Successor Entity that is a publicly traded corporation
whose common stock is quoted on or listed for trading on an Eligible Market (as defined above).

“Successor Entity” means any Person purchasing the Company’s assets or Common Stock, or any
successor entity resulting from such Major Transaction, or if the Warrant is to be exercisable for
shares of capital stock of its Parent Entity (as defined above), its Parent Entity.

(d) Exercise Price Adjusted. As used in this Warrant, the term “Exercise Price” shall mean the
purchase price per share specified in Section 3(a) of this Warrant, until the occurrence of an
event stated in this Section 5 or otherwise set forth in this Warrant, and thereafter shall mean
said price as adjusted from time to time in accordance with the provisions of said subsection. No
adjustment made pursuant to any provision of this Section 5 shall have the net effect of increasing
the Exercise Price in relation to the split adjusted and distribution adjusted price of the Common
Stock.

(e) Adjustments: Additional Shares, Securities or Assets. In the event that at any time, as a
result of an adjustment made pursuant to this Section 5 or otherwise, Holder shall, upon Exercise
of this Warrant, become entitled to receive shares and/or other securities or assets (other than
Common Stock) then, wherever appropriate, all references herein to shares of Common Stock shall be
deemed to refer to and include such shares and/or other securities or assets; and thereafter the
number of such shares and/or other securities or assets shall be subject to adjustment from time to
time in a manner and upon terms as nearly equivalent as practicable to the provisions of this
Section 5.

(f) Notice of Adjustments. Whenever the Exercise Price is adjusted pursuant to the terms of this
Warrant, the Company shall promptly mail to the Holder a notice (an “Exercise Price Adjustment
Notice”) setting forth the Exercise Price after such adjustment and setting forth a statement of
the facts requiring such adjustment. The Company shall, upon the written request at any time of the
Holder, furnish to such Holder a like Warrant setting forth (i) such adjustment or readjustment,
(ii) the Exercise Price at the time in effect and (iii) the number of shares of Common Stock and
the amount, if any, of other securities or property which at the time would be received upon
Exercise of the Warrant. For purposes of clarification, whether or not the Company provides an
Exercise Price Adjustment Notice pursuant to this Section 5(f), upon the occurrence of any event
that leads to an adjustment of the Exercise Price, the Holder would be entitled to receive a number
of Exercise Shares based upon the new Exercise Price, as adjusted, for exercises occurring on or
after the date of such adjustment, regardless of whether the Holder accurately refers to the
adjusted Exercise Price in the Exercise Form.

6. Fractional Interests.

No fractional shares or scrip representing fractional shares shall be issuable upon the Exercise of
this Warrant, but on Exercise of this Warrant, Holder may purchase only a whole number of shares of
Common Stock. If, on Exercise of this Warrant, Holder would be entitled to a fractional share of
Common Stock or a right to acquire a fractional share of Common Stock, such fractional share shall
be disregarded and the number of shares of Common Stock issuable upon Exercise shall be the next
higher whole number of shares.

7. Reservation of Shares.

From and after the date hereof, the Company shall at all times reserve for issuance such number of
authorized and unissued shares of Common Stock (or other securities substituted therefor as herein
above provided) as shall be sufficient for the Exercise of this Warrant and payment of the Exercise
Price. If at any time the number of shares of Common Stock authorized and reserved for issuance is
below the number of shares sufficient for the Exercise of this Warrant (a “Share Authorization
Failure”) (based on the Exercise Price in effect from time to time), the Company will promptly take
all corporate action necessary to authorize and reserve a sufficient number of shares, including,
without limitation, calling a special meeting of stockholders to authorize additional shares to
meet the Company’s obligations under this Section 7, in the case of an insufficient number of
authorized shares, and using commercially reasonable efforts to obtain stockholder approval of an
increase in such authorized number of shares. The Company covenants and agrees that upon the
Exercise of this Warrant, all shares of Common Stock issuable upon such Exercise shall be duly and
validly issued, fully paid and nonassessable and not subject to preemptive rights, rights of first
refusal or similar rights of any Person.

8. Assignment. The Holder may sell, transfer, assign, pledge, or otherwise dispose of this
Warrant, in whole or in part, provided that Holder may not sell, transfer, assign, pledge or
otherwise dispose of any portion of this Warrant with respect to the lesser of (x) one hundred
thousand (100,000) Warrant Shares or (y) all remaining Warrant Shares underlying this Warrant.
Holder shall deliver a written notice to Company, substantially in the form of the Assignment
attached hereto as Exhibit B, indicating the Person or Persons to whom the Warrant shall be
assigned and the respective number of warrants to be assigned to each assignee. The Company shall
effect the assignment within five (5) business days (the “Transfer Delivery Period”), and shall
deliver to the assignee(s) designated by Holder a Warrant or Warrants of like tenor and terms for
the appropriate number of shares. This Warrant and the rights evidenced hereby shall inure to the
benefit of and be binding upon the successors and assigns of the Holder. The provisions of this
Warrant are intended to be for the benefit of all Holders from time to time of this Warrant, and
shall be enforceable by any such Holder.

9. Noncircumvention.

The Company hereby covenants and agrees that the Company will not, by amendment of its certificate
of incorporation, bylaws or through any reorganization, transfer of assets, consolidation, merger,
scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will
at all times in good faith carry out all the provisions of this Warrant and take all action as may
be reasonably required to protect the rights of the Holder. Without limiting the generality of the
foregoing, the Company (i) shall not increase the par value of any shares of Common Stock
receivable upon the exercise of this Warrant above the Exercise Price then in effect, and
(ii) shall take all such actions as may be reasonably necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the
exercise of this Warrant.

10. Events of Failure; Definition of Black Scholes Value.

(a) Definition.

The occurrence of each of the following shall be considered to be an “Event of Failure.”

(i) A Delivery Failure occurs, where a “Delivery Failure” shall be deemed to have
occurred if the Company fails to use its reasonable best efforts to deliver
Exercise Shares to the Holder within any applicable Delivery Period;

(ii) a Transfer Delivery Failure occurs, where a “Transfer Delivery Failure” shall
be deemed to have occurred if the Company fails to use its reasonable best efforts
to deliver a Warrant within any applicable Transfer Delivery Period; and

(b) Failure Payments; Black-Scholes Determination. The Company understands that any Event of
Failure (as defined above) could result in economic loss to the Holder. In the event that any Event
of Failure occurs, as compensation to the Holder for such loss, the Company agrees to pay (as
liquidated damages and not as a penalty) to the Holder an amount payable, at the Company’s option,
either (i) in cash or (ii) in shares of Common Stock that are valued for these purposes at the
Volume Weighted Average Price on the date of such calculation (“Failure Payments”), in each case
equal to 18% per annum (or the maximum rate permitted by applicable law, whichever is less) of the
Black-Scholes value (as determined below) of the remaining unexercised portion of this Warrant on
the date of such Event of Failure (as recalculated on the first business day of each month
thereafter for as long as Failure Payments shall continue to accrue), which shall accrue daily from
the date of such Event of Failure until the Event of Failure is cured, accruing daily and
compounded monthly, provided, however, the Holder shall only receive up to such amount of shares of
Common Stock in respect of Failure Payments such that Holder and any other persons or entities
whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of
Section 13(d) of the Exchange Act (including shares held by any “group” of which the Holder is a
member, but excluding shares beneficially owned by virtue of the ownership of securities or rights
to acquire securities that have limitations on the right to convert, exercise or purchase similar
to the limitation set forth herein) shall not collectively beneficially own greater than 9.98% of
the total number of shares of Common Stock of the Company then issued and outstanding. For
purposes of clarification, it is agreed and understood that Failure Payments shall continue to
accrue following any Event of Default until the applicable Default Amount is paid in full and that
shares of Common Stock issued as Failure Payments will not be registered for issuance under the
Securities Act.

For purposes hereof, the “Black-Scholes” value of a Warrant shall be determined by use of the Black
Scholes Option Pricing Model using the criteria set forth on Schedule 1 hereto.

(c) Payment of Accrued Failure Payments. The Failure Payment Shares representing accrued Failure
Payments for each Event of Failure shall be issued and delivered on or before the fifth
(5th) business day of each month following a month in which Failure Payments accrued. Nothing
herein shall limit the Holder’s right to pursue actual damages (to the extent in excess of the
Failure Payments) for the Company’s Event of Failure, and the Holder shall have the right to pursue
all remedies available at law or in equity (including a decree of specific performance and/or
injunctive relief). Notwithstanding the above, if a particular Event of Failure results in an Event
of Default pursuant to Section 11 hereof, then the Failure Payment, for that Event of Failure only,
shall be considered to have been satisfied upon payment to the Holder of an amount equal to the
greater of (i) the Failure Payment, or (ii) the Default Amount, payable in accordance with
Section 11.

(d) Maximum Interest Rate. Nothing contained herein or in any document referred to herein or
delivered in connection herewith shall be deemed to establish or require the payment of a rate of
interest or other charges in excess of the maximum permitted by applicable law. In the event that
the rate of interest or dividends required to be paid or other charges hereunder exceed the maximum
permitted by such law, any payments in excess of such maximum shall be credited against amounts
owed by the Company to the Holder and thus refunded to the Company.

 

11. Default.

(a) Events Of Default. Each of the following events shall be considered to be an “Event of
Default,” unless waived by the Holder:

(i) Failure To Deliver Common Stock. A Delivery Failure (as defined above) occurs and
remains uncured for a period of more than twenty (20) days after written notice thereof by Holder
to the Company; or at any time, the Company announces or states in writing that it will not honor
its obligations to issue shares of Common Stock to the Holder upon Exercise by the Holder of the
Exercise rights of the Holder in accordance with the terms of this Warrant and

(ii) Corporate Existence; Major Transaction. (A) The Company has failed to place the Major
Transaction Warrant Early Termination Price or the Exercise Shares issuable upon exercise of a
Cashless Major Exercise, as the case may be, into escrow or to instruct the escrow agent to release
such amount or such shares, as the case may be, to the Holder as required by Section 5(c)(iv), (B)
the Company has failed to enter into the agreements required by Section 5(c)(iv)(a) or (C) with
respect to a Major Transaction that is to be treated as an Assumption under the terms hereof, the
Company has failed to meet the Assumption requirements of Section 5(c)(ii).

(b) Mandatory Early Termination.

(i) Mandatory Early Termination Amount; Cashless Default Exercise. If any Events of Default
shall occur then, unless waived by the Holder, upon the occurrence and during the continuation of
any Event of Default, at the option of the Holder, such option exercisable through the delivery of
written notice to the Company by such Holder (the “Default Notice”), the Company shall have the
right to terminate the outstanding amount of this Warrant and pay to the Holder (a “Mandatory Early
Termination”), in full satisfaction of its obligations hereunder by delivery of a notice to such
effect to the Holder within two (2) business days following receipt of the Default Notice, an
amount payable in cash (the “Mandatory Early Termination Amount” or the “Default Amount”) equal to
the greater of (i) the Black-Scholes value (as determined in accordance with Section 10(b)) of the
remaining unexercised portion of this Warrant on the date of such Default Notice and (2) the
Black-Scholes value (also as determined in accordance with Section 10(b)) of the remaining
unexercised portion of this Warrant on the Trading Day immediately preceding the date that the
Mandatory Early Termination Amount is paid to the Holder. In the event the Company does not
exercise its right to consummate a Mandatory Early Termination, then the Holder shall have the
right to exercise this Warrant pursuant to a Cashless Default Exercise in accordance with Section
3(c) above.

The Mandatory Early Termination Amount shall be payable within five (5) business days following the
date of the applicable Default Notice.

(ii) Liquidated Damages. The parties hereto acknowledge and agree that the sums payable as
Failure Payments or pursuant to a Mandatory Early Termination shall be deemed to be liquidated
damages and not penalties. The parties further acknowledge that (i) the amount of loss or damages
likely to be incurred by the Holder is incapable or is difficult to precisely estimate, (ii) the
amounts specified bear a reasonable proportion and are not plainly or grossly disproportionate to
the probable loss likely to be incurred by the Holder, and (iii) the parties are sophisticated
business parties and have been represented by sophisticated and able legal and financial counsel
and negotiated this Agreement at arm’s length.

The Default Amount, together with all other amounts payable hereunder, shall immediately become due
and payable, all without demand, presentment or notice, all of which hereby are expressly waived,
together with all costs, including, without limitation, legal fees and expenses, of collection, and
the Holder shall be entitled to exercise all other rights and remedies available at law or in
equity.

(c) Posting Of Bond. In the event that any Event of Default occurs hereunder, the Company may not
raise as a legal defense (in any Lawsuit, as defined below, or otherwise) or justification to such
Event of Default any claim that such Holder or any one associated or affiliated with such Holder
has been engaged in any violation of law, unless the Company has posted a surety bond (a “Surety
Bond”) for the benefit of such Holder in the amount of 130% of the aggregate Surety Bond Value (as
defined below) of all of the Holder’s Warrants (the “Bond Amount”), which Surety Bond shall remain
in effect until the completion of litigation of the dispute and the proceeds of which shall be
payable to such Holder to the extent Holder obtains judgment.

For purposes hereof, a “Lawsuit” shall mean any lawsuit, arbitration or other dispute resolution
filed by either party herein pertaining to this Warrant.

“Surety Bond Value,” for the Warrants shall mean 130% of the of the Black-Scholes value of the
remaining unexercised portion of this Warrant on the Trading Day immediately preceding the date
that such bond goes into effect).

(d) Injunction And Posting Of Bond. In the event that the Event of Default referred to in
subsection (c) above pertains to the Company’s failure to deliver unlegended shares of Common Stock
to the Holder pursuant to a Warrant Exercise, legend removal request, or otherwise, the Company may
not refuse such unlegended share delivery based on any claim that such Holder or any one associated
or affiliated with such Holder has been engaged in any violation of law, unless an injunction from
a court, on prior notice to Holder, restraining and or enjoining Exercise of all or part of said
Warrant shall have been sought and obtained by the Company and the Company has posted a Surety Bond
for the benefit of such Holder in the amount of the Bond Amount, which Surety Bond shall remain in
effect until the completion of litigation of the dispute and the proceeds of which shall be payable
to such Holder to the extent Holder obtains judgment.

(e) Remedies, Other Obligations, Breaches And Injunctive Relief. The remedies provided in this
Warrant shall be cumulative and in addition to all other remedies available under this Warrant, at
law or in equity (including a decree of specific performance and/or other injunctive relief), and
nothing herein shall limit the right of the Holder to pursue actual damages for any failure by the
Company to comply with the terms of this Warrant. The Company acknowledges that a breach by it of
its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for
any such breach may be inadequate. The Company therefore agrees that, in the event of any such
breach or threatened breach, the holder of this Warrant shall be entitled, in addition to all other
available remedies, to an injunction restraining any breach.

12. Holder’s Early Terminations.

(a) Mechanics of Holder’s Early Terminations. In the event that the Company does not deliver the
applicable Major Transaction Warrant Early Termination Price or Default Amount or the Exercise
Shares in respect of a Cashless Major Exercise or a Cashless Default Exercise, as the case may be,
to the Holder within the time period or as otherwise required pursuant to the terms hereof, at any
time thereafter the Holder shall have the option, upon notice to the Company, in lieu of early
termination, Cashless Major Exercise or Cashless Default Exercise, as the case may be, to require
the Company to promptly return to the Holder all or any portion of this Warrant that was submitted
for early termination or exercise. Upon the Company’s receipt of such notice, (x) the applicable
early termination or exercise, as the case may be, shall be null and void with respect to such
applicable portion of this Warrant and (y) the Company shall immediately return this Warrant, or
issue a new Warrant to the Holder representing the portion of this Warrant that was submitted for
early termination or exercise. The Holder’s delivery of a notice voiding an early termination or
exercise and exercise of its rights following such notice shall not affect the Company’s
obligations to make any payments of Failure Payments which have accrued prior to the date of such
notice with respect to the Warrant subject to such notice.

13. Benefits of this Warrant.

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

14. Governing Law.

All questions concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by and construed and enforced in accordance with the internal laws of
the State of Delaware, without regard to the principles of conflicts of law thereof. Each party
agrees that all legal proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Agreement (whether brought against a party hereto or its
respective affiliates, directors, officers, stockholders, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the State of Delaware. Each party hereby
irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the
State of Delaware for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees
not to assert in any suit, action or proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such suit, action or proceeding is improper or is an
inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or proceeding by mailing a
copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to
such party at the address in effect for notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any other manner
permitted by law. The parties hereby waive all rights to a trial by jury. If either party shall
commence an action or proceeding to enforce any provisions of this Agreement, then the prevailing
party in such action or proceeding shall be reimbursed by the other party for its reasonable
attorneys’ fees and other costs and expenses incurred with the investigation, preparation and
prosecution of such action or proceeding.

15. Loss of Warrant.

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

16. Notice or Demands.

Notices or demands pursuant to this Warrant to be given or made by Holder to or on the Company
shall be sufficiently given or made if sent by certified or registered mail, return receipt
requested, postage prepaid, and addressed, until another address is designated in writing by the
Company, to the address set forth in Section 2(a) above. Notices or demands pursuant to this
Warrant to be given or made by the Company to or on Holder shall be sufficiently given or made if
sent by certified or registered mail, return receipt requested, postage prepaid, and addressed, to
the address of Holder set forth in the Company’s records, until another address is designated in
writing by Holder.

1

IN WITNESS WHEREOF, the undersigned has executed this Warrant as of the        day of      , 2011.

CYTOKINECTICS, INCORPORATED

By:

Print Name:

Title:

2

EXHIBIT A

EXERCISE FORM FOR WARRANT

TO: CYTOKINETICS, INCORPORATED

CHECK THE APPLICABLE BOX:

       Cash Exercise or Cashless Exercise

The undersigned hereby irrevocably exercises the attached warrant (the “Warrant”) with respect
to        shares of Common Stock (the “Common Stock”) of Cytokinetics, Incorporated, a
Delaware corporation (the “Company”), and, if pursuant to a Cashless Exercise, herewith makes
payment of the Exercise Price with respect to such shares in full, all in accordance with the
conditions and provisions of said Warrant.

       Cashless Major Exercise

The undersigned hereby irrevocably exercises the Warrant with respect to      % of the Warrant
currently outstanding pursuant to a Cashless Major Exercise in accordance with the terms of the
Warrant.

       Cashless Default Exercise

The undersigned hereby irrevocably exercises the Warrant pursuant to a Cashless Default
Exercise, in accordance with the terms of the Warrant.

1. Capitalized terms used but not otherwise defined in this Exercise Form shall have the meaning
ascribed thereto in the Warrant.

Dated:       

Signature

Print Name

Address

NOTICE

The signature to the foregoing Exercise Form must correspond to the name as written upon the face
of the attached Warrant in every particular, without alteration or enlargement or any change
whatsoever.

3

EXHIBIT B

ASSIGNMENT

(To be executed by the registered holder

desiring to transfer the Warrant)

FOR VALUE RECEIVED, the undersigned holder of the attached warrant (the “Warrant”) hereby sells,
assigns and transfers unto the person or persons below named the right to purchase      
shares of the Common Stock of Cytokinetics, Incorporated, a Delaware corporation, evidenced by the
attached Warrant and does hereby irrevocably constitute and appoint        attorney to transfer
the said Warrant on the books of the Company, with full power of substitution in the premises.

Dated:       

Signature

Fill in for assignment of Warrant:

Name

Address

Please print name and address of assignee

(including zip code number)

NOTICE

The signature to the foregoing Assignment must correspond to the name as written upon the face of
the attached Warrant in every particular, without alteration or enlargement or any change
whatsoever.

Schedule 1

Black-Scholes Value

	 	 	 	 	 
	 	 	Calculation Under Section 5(c)(iii)	 	Calculation Under Section 10(b) or 11(b)
	Remaining Term
	 	Number of calendar days from date of public announcement of

the Major Transaction until the last date on which the

Warrant may be exercised.

	 	Number of calendar days from date of the Event of Failure

until the last date on which the Warrant may be exercised.

	Interest Rate
	 	A risk-free interest rate corresponding to the yield to

maturity, prevailing in the market place, on United States

Treasury Notes with a remaining term approximating, but in no

event less than, the Remaining Term.

	 	A risk-free interest rate corresponding to the yield to

maturity, prevailing in the market place, on United States

Treasury Notes with a remaining term approximating, but in no

event less than, the Remaining Term.
	Volatility
	 	If the first public announcement of the Major

Transaction is made at or prior to 4:00 p.m., New

York City time, the arithmetic mean of the historical

volatility for the 10, 30 and 50 Trading Day periods

ending on the date of such first public

announcement, obtained from the HVT or similar

function on Bloomberg.

If the first public announcement of the Major

Transaction is made after 4:00 p.m., New York City

time, the arithmetic mean of the historical volatility for the

10, 30 and 50 Trading Day periods ending on the

next succeeding Trading Day following the date of

such first public announcement, obtained from the

HVT or similar function on Bloomberg.

	 	If the first public announcement of the Major

Transaction is made at or prior to 4:00 p.m., New

York City time, the arithmetic mean of the historical

volatility for the 10, 30 and 50 Trading Day periods

ending on the date of such first public

announcement, obtained from the HVT or similar

function on Bloomberg.

If the first public announcement of the Major

Transaction is made after 4:00 p.m., New York City

time, the arithmetic mean of the historical volatility for the

10, 30 and 50 Trading Day periods ending on the

next succeeding Trading Day following the date of

such first public announcement, obtained from the

HVT or similar function on Bloomberg.
	Stock Price
	 	The greater of (1) the closing price of the Common Stock on

NASDAQ, or, if that is not the principal trading market for

the Common Stock, such principal market on which the Common

Stock is traded or listed (the “Closing Market Price”) on the

trading day immediately preceding the date on which a Major

Transaction is consummated, (2) the first Closing Market

Price following the first public announcement of a Major

Transaction, or (3) the Closing Market Price as of the date

immediately preceding the first public announcement of the

Major Transaction.

	 	The volume Weighted Average Price on the date of such

calculation.

	Dividends
	 	Zero.

	 	Zero.
	Strike Price
	 	Exercise Price as defined in section 3(a).

	 	Exercise Price as defined in section 3(a).

4EX-10.1

EXHIBIT 10.1

SECURITIES PURCHASE AGREEMENT

Dated as of April 13, 2011

AMONG

K12 INC.

AND

THE OTHER PARTIES NAMED HEREIN

TABLE OF CONTENTS

	 	 	ARTICLE I — PURCHASE AND SALE OF SHARES	 

	 	 	 	Section 1.1 Purchase and Sale	 

	 	 	 	Section 1.2 Closing	 

	 	 	ARTICLE II — REPRESENTATIONS AND WARRANTIES OF THE COMPANY	 

	 	 	 	Section 2.1 Organization and Power	 

	 	 	 	Section 2.2 Authorization, Etc	 

	 	 	 	Section 2.3 Government Approvals	 

	 	 	 	Section 2.4 Authorized and Outstanding Stock	 

	 	 	 	Section 2.5 Subsidiaries	 

	 	 	 	Section 2.6 Securities Law Compliance	 

	 	 	 	Section 2.7 SEC Documents; Financial Information; Undisclosed
Liabilities	 

	 	 	 	Section 2.8 Internal Controls	 

	 	 	 	Section 2.9 Disclosure Controls	 

	 	 	 	Section 2.10 Absence of Certain Events; No Material Adverse
Change	 

	 	 	 	Section 2.11 Litigation	 

	 	 	 	Section 2.12 Compliance with Laws; Permits; and Educational
Approvals	 

	 	 	 	Section 2.13 Illegal Payments	 

	 	 	 	Section 2.14 Taxes	 

	 	 	 	Section 2.15 Intellectual Property	 

	 	 	 	Section 2.16 Contracts and Commitments	 

	 	 	 	Section 2.17 Employee Matters	 

	 	 	 	Section 2.18 No Brokers or Finders	 

	 	 	 	Section 2.19 Transactions with Affiliates	 

	 	 	 	Section 2.20 Insurance	 

	 	 	 	Section 2.21 Investment Company Act	 

	 	 	 	Section 2.22 New York Stock Exchange	 

	 	 	 	Section 2.23 Delaware Section 203	 

	 	 	ARTICLE III REPRESENTATIONS AND WARRANTIES OF EACH PURCHASER	 

	 	 	 	Section 3.1 Organization and Power	 

	 	 	 	Section 3.2 Authorization, Etc	 

	 	 	 	Section 3.3 Government Approvals	 

	 	 	 	Section 3.4 Investment Representations	 

	 	 	 	Section 3.5 No Brokers or Finders	 

	 	 	ARTICLE IV COVENANTS OF THE PARTIES	 

	 	 	 	Section 4.1 Interim Conduct of Business	 

	 	 	 	Section 4.2 Access; Confidentiality	 

	 	 	 	Section 4.3 Commercially Reasonable Efforts to Complete	 

	 	 	 	Section 4.4 Notification of Certain Matters	 

	 	 	 	Section 4.5 Public Statements and Disclosure	 

	 	 	 	Section 4.6 Legends	 

	 	 	 	Section 4.7 Restrictions on Purchaser Actions	 

	 	 	 	Section 4.8 TCV Designee and Management Rights	 

	 	 	 	Section 4.9 Specific Performance	 

	 	 	ARTICLE V CONDITIONS TO THE PURCHASERS’ OBLIGATION	 

	 	 	 	Section 5.1 Representations and Warranties	 

	 	 	 	Section 5.2 Covenants	 

	 	 	 	Section 5.3 No Material Adverse Effect	 

	 	 	 	Section 5.4 Certificates	 

	 	 	 	Section 5.5 HSR Act	 

	 	 	 	Section 5.6 No Law, Order or Proceeding	 

	 	 	 	Section 5.7 Stock Certificates	 

	 	 	 	Section 5.8 Investor Rights Agreement	 

	 	 	 	Section 5.9 TCV Designee	 

	 	 	 	Section 5.10 Legal Opinion	 

	 	 	 	Section 5.11 Management Rights Agreements	 

	 	 	 	Section 5.12 Subsequent Listing Application	 

	 	 	ARTICLE VI CONDITIONS TO THE COMPANY’S OBLIGATION	 

	 	 	 	Section 6.1 Representations and Warranties; Performance	 

	 	 	 	Section 6.2 Covenants	 

	 	 	 	Section 6.3 Certificates	 

	 	 	 	Section 6.4 HSR Act	 

	 	 	 	Section 6.5 No Law, Order or Proceeding	 

	 	 	 	Section 6.6 Consideration for the Securities	 

	 	 	 	Section 6.7 Investor Rights Agreement	 

	 	 	ARTICLE VII TERMINATION	 

	 	 	 	Section 7.1 Termination	 

	 	 	 	Section 7.2 Effects of Termination	 

	 	 	ARTICLE VIII MISCELLANEOUS	 

	 	 	 	Section 8.1 Survival of Representations	 

	 	 	 	Section 8.2 Shares Owned by Affiliates	 

	 	 	 	Section 8.3 Counterparts	 

	 	 	 	Section 8.4 Governing Law	 

	 	 	 	Section 8.5 Entire Agreement; No Third Party Beneficiary	 

	 	 	 	Section 8.6 Expenses	 

	 	 	 	Section 8.7 Notices	 

	 	 	 	Section 8.8 Successors and Assigns	 

	 	 	 	Section 8.9 Headings	 

	 	 	 	Section 8.10 Amendments and Waivers	 

	 	 	 	Section 8.11 Interpretation; Absence of Presumption	 

	 	 	 	Section 8.12 Severability	 

	 	 	 	Section 8.13 Equitable Adjustment	 

	 	 	 	Section 8.14 Schedules	 

1

SCHEDULES

Schedule of Exceptions

EXHIBITS

	 	 	 
	Exhibit A

Exhibit B

Exhibit C

Exhibit D

Exhibit E

Exhibit F

	 	Definitions

Purchased Shares

Certain Indemnification Provisions

Form of Management Rights Agreement

Investor Rights Agreement

Form of Opinion of Company Counsel

SECURITIES PURCHASE AGREEMENT

This Securities Purchase Agreement dated as of April 13, 2011 (this “Agreement”) is among K12
Inc., a Delaware corporation (the “Company”), the entities listed as “Purchasers” on the signature
pages hereto (each, a “Purchaser” and, collectively, the “Purchasers”), and, solely for purposes of
Section 4.2(b), TCMI, Inc., a Delaware corporation (“TCMI”). Capitalized terms used but
not defined herein have the meanings assigned to them in Exhibit A.

The Purchasers, severally and not jointly, desire to purchase from the Company, and the
Company desires to issue and sell to the Purchasers, an aggregate of 4,000,000 shares (the
“Purchased Shares”) of the Company’s Common Stock, par value $0.0001 per share (“Common Stock”), on
the terms and subject to the conditions hereinafter set forth.

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

ARTICLE I

PURCHASE AND SALE OF SHARES

Section 1.1 Purchase and Sale. Subject to the terms and conditions hereinafter set
forth, at the Closing the Company shall issue and sell to each Purchaser, and each Purchaser,
severally and not jointly, shall purchase from the Company, that number of Purchased Shares set
forth opposite such Purchaser’s name on Exhibit B at a price per Purchased Share equal to
$31.46. The aggregate purchase price to be paid by the Purchasers for all of the Purchased Shares
purchased hereunder shall be $125,840,000.

Section 1.2 Closing. On the terms and subject to the satisfaction or waiver of the
conditions set forth in this Agreement, the closing of the sale and purchase of the Purchased
Shares (the “Closing”) shall take place at the offices of Kirkland & Ellis LLP, 300 North LaSalle
Street, Chicago, Illinois, at 10:00 A.M., on the first Business Day after the day on which all of
the conditions set forth in Article V and Article VI have been satisfied or waived
(other than conditions which by their terms are to be satisfied at the Closing), or such other time
and place as the Company and the Majority Purchasers may agree; provided that in no
event shall the Closing take place prior to the tenth (10th) Business Day following the date hereof
unless otherwise agreed in writing by the Majority Purchasers; provided further,
however, that in the event the conditions set forth in Article V have been
satisfied or waived (other than conditions which by their terms are to be satisfied at the Closing)
prior to the tenth (10th) Business Day following the date hereof and the Majority Purchasers have
not so agreed in writing to the Closing taking place on the next Business Day, such conditions set
forth in Article V (including Section 5.1 and Section 5.2 and, with respect
to these conditions, the certificate required by Section 5.4) shall be deemed satisfied as
of the Closing Date and the Purchasers’ rights under Section 7.1(c) shall be terminated.
The date on which the Closing is to occur is herein referred to as the “Closing Date”. At the
Closing, the Company will deliver the Purchased Shares being acquired by each Purchaser in the form
of one or more certificates issued in such Purchaser’s name upon receipt by the Company of payment
of the full purchase price therefor by or on behalf of such Purchaser to the Company by certified
check or by wire transfer of immediately available funds to an account designated in writing by the
Company.

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company represents and warrants to each Purchaser that, except as set forth in the
Schedule of Exceptions to this Agreement:

Section 2.1 Organization and Power. The Company and each of its Subsidiaries is a
corporation, limited liability company or other foreign business entity duly incorporated or
formed, validly existing and in good standing under the Laws of the jurisdiction of its
incorporation or formation and has all requisite power and authority as a corporation, limited
liability company or other business entity to own its properties and to carry on its business as
presently conducted and as proposed to be conducted. The Company and each of its Subsidiaries is
duly licensed or qualified to do business as a foreign corporation, limited liability company or
other business entity in each jurisdiction wherein the character of its property or the nature of
the activities presently conducted by it, makes such qualification necessary, except where the
failure to so qualify, individually or in the aggregate, has not had, or would not reasonably be
expected to have, a Material Adverse Effect. The Company is not on the date of this Agreement, and
will not at the Closing be, in violation of or default under any provision of its certificate of
incorporation or bylaws.

Section 2.2 Authorization, Etc. The Company has all necessary corporate power and
authority and has taken all necessary corporate action required for the due authorization,
execution, delivery and performance by the Company of this Agreement and the Investor Rights
Agreement and any other agreements or instruments executed by the Company in connection herewith or
therewith and contemplated thereby (collectively, the “Related Agreements”), the consummation by
the Company of the transactions contemplated hereby and thereby, and the due authorization,
issuance, sale and delivery of the Purchased Shares. The authorization, execution, delivery and
performance by the Company of this Agreement and the Related Agreements to which it is or will be a
party, and the consummation by the Company of the transactions contemplated hereby and thereby,
including the issuance of the Purchased Shares, do not and will not: (a) violate or result in the
breach of any provision of the certificate of incorporation and bylaws of the Company; or (b) with
such exceptions that, individually or in the aggregate, would not reasonably be expected to have a
Material Adverse Effect, whether after the giving of notice or the lapse of time or both: (i)
violate any provision of, constitute a breach of, or default under, or result in or permit the
cancellation, termination or acceleration of (A) any judgment, order, writ, or decree to which the
Company or any of its Subsidiaries is a party or to which any of them are bound, or (B) any license
agreement, securities or registration rights agreement, mortgage, credit or hedging agreement,
indebtedness or other agreement or contract that the Company or any of its Subsidiaries is a party;
(ii) violate any provision of, constitute a breach of, or default under, any applicable Law; or
(iii) result in the creation of any Lien upon any assets of the Company or any of its Subsidiaries
or the suspension, revocation, impairment, forfeiture or nonrenewal of any Permit granted by a
Governmental Entity to the Company or any of its Subsidiaries, other than Liens under U.S. federal
or state securities Laws. The issuance of the Purchased Shares does not require any further
corporate action (including any approval of the stockholders of the Company) and is not subject to
any preemptive right under the Company’s certificate of incorporation or any contract to which the
Company is a party. This Agreement has been, and each of the Related Agreements to which the
Company will at the Closing be party will be, duly executed and delivered by the Company. Assuming
due execution and delivery thereof by each of the other parties thereto, this Agreement and the
Related Agreements to which the Company is a party will each be a valid and binding obligation of
the Company enforceable against the Company in accordance with its terms, except as such
enforceability may be limited by applicable Laws relating to bankruptcy, insolvency, fraudulent
conveyance, fraudulent transfer, reorganization, moratorium or other similar legal requirement
relating to or affecting creditors’ rights generally and except as such enforceability is subject
to general principles of equity (regardless of whether enforceability is considered in a proceeding
in equity or at Law).

Section 2.3 Government Approvals. No material consent, approval, license or
authorization of, or designation, declaration or filing with, or notice to, any Governmental Entity
or Educational Agency is or will be required on the part of the Company in connection with the
execution, delivery and performance by the Company of this Agreement and the Related Agreements to
which the Company is a party, or in connection with the issuance of the Purchased Shares, except
for (a) those which have already been made or granted; (b) the filing of a current report on Form
8-K or Form D with the SEC; (c) filings with applicable state securities commissions; (d) filings
in compliance with the provisions of the HSR Act and (e) filings with or notices to the New York
Stock Exchange.

Section 2.4 Authorized and Outstanding Stock.

(a) The authorized capital stock of the Company (immediately prior to the Closing)
consists of 100,000,000 shares of Common Stock and 10,000,000 shares of Preferred Stock, par
value $0.0001 per share (“Preferred Stock”).

(b) As of April 1, 2011, the issued and outstanding capital stock of the Company
consisted of 31,566,217 shares of Common Stock and 2,750,000 shares of Preferred Stock,
designated as Series A Special Stock. In addition, as of April 1, 2011, options to purchase
an aggregate of 3,140,796 shares of Common Stock had been granted and were unexercised under
the Stock Plans and 450,903 unvested shares of restricted stock granted under the Stock
Plans were outstanding. All of the issued and outstanding shares of capital stock of the
Company are, and when issued in accordance with the terms hereof, the Purchased Shares will
be, duly authorized and validly issued and fully paid and non-assessable. When issued in
accordance with the terms hereof, the Purchased Shares will be free and clear of all Liens
imposed by or through the Company, except for restrictions imposed by securities Laws and
except for those imposed pursuant to this Agreement or the Investor Rights Agreement. The
designations, powers, preferences, rights, qualifications, limitations and restrictions in
respect of each class or series of capital stock of the Company are as set forth in the
Company’s Third Amended and Restated Certificate of Incorporation and the Certificate of
Designations.

(c) Except as provided in this Agreement, the Related Agreements or as specifically
disclosed in the Recent SEC Documents: (i) no subscription, warrant, option, convertible
security or other right issued by the Company to purchase or acquire any shares of capital
stock of the Company is authorized or outstanding; (ii) there is not any commitment of the
Company to issue any subscription, warrant, option, convertible security or other such right
or to issue or distribute to holders of any shares of its capital stock any evidences of
indebtedness or assets of the Company; (iii) the Company has no obligation to purchase,
redeem or otherwise acquire any shares of its capital stock or any interest therein or to
pay any dividend or make any other distribution in respect thereof; and (iv) there are no
agreements between the Company and any holder of its capital stock relating to the
acquisition, disposition or voting of the capital stock of the Company. No person or entity
is entitled to any preemptive right granted by the Company with respect to the issuance of
any capital stock of the Company. Except as provided in the Investor Rights Agreement, the
Related Agreements or as specifically disclosed in the Recent SEC Documents, no person or
entity has been granted rights by the Company with respect to the registration of any
capital stock of the Company under the Securities Act of 1933, as amended (the “Securities
Act”).

Section 2.5 Subsidiaries. Section 2.5 of the Schedule of Exceptions sets forth all of
the Company’s Subsidiaries. The Company, directly or indirectly, owns of record and beneficially,
free and clear of all Liens of any nature, all of the issued and outstanding capital stock of each
of its Subsidiaries. All of the issued and outstanding capital stock or equity interests of the
Company’s Subsidiaries has been duly authorized and validly issued, and in the case of
corporations, is fully paid and non-assessable. Except as specifically disclosed in the Recent SEC
Documents, there are no outstanding rights, options, warrants, preemptive rights, conversion
rights, rights of first refusal or similar rights for the purchase or acquisition from any of the
Company’s Subsidiaries of any securities of such Subsidiaries nor are there any commitments to
issue or execute any such rights, options, warrants, preemptive rights, conversion rights or rights
of first refusal. Except as specifically disclosed in the Recent SEC Documents or Section 2.5(A)
of the Schedule of Exceptions, the Company is not a participant in any joint venture, partnership
or similar arrangement.

Section 2.6 Securities Law Compliance. Assuming the accuracy of the representations
and warranties of the Purchasers set forth in Section 3.4 (Investment Representations), the
offer and sale of the Purchased Shares pursuant to this Agreement will be exempt from the
registration requirements of the Securities Act. The Company has not, in connection with the
transactions contemplated by this Agreement, engaged in: (a) any form of general solicitation or
general advertising (as those terms are used within the meaning of Rule 502(c) promulgated under
the Securities Act); (b) any action involving a “public offering” within the meaning of Section
4(2) of the Securities Act; or (c) any action that would require the registration under the
Securities Act of the offering and sale of the Purchased Shares pursuant to this Agreement. As
used herein, the terms “offer” and “sale” have the meanings specified in Section 2(3) of the
Securities Act. Except as set forth in Section 2.6 of the Schedule of Exceptions, to the Company’s
knowledge as of the date of this Agreement, there exist no facts that would reasonably be expected
to cause the Company (i) not to satisfy on or prior to October 1, 2011 the “registrant
requirements” for use of Form S-3 set forth in General Instruction I.A to Form S-3 promulgated by
the SEC or (ii) provided that the Purchasers are not deemed to be underwriters with respect to any
Purchased Shares, not to prepare and file, or delay the Company’s preparation and filing of, on or
prior to October 1, 2011, a registration statement on Form S-3 registering the resale of the
Purchased Shares by the Purchasers.

Section 2.7 SEC Documents; Financial Information; Undisclosed Liabilities. Except as
specifically disclosed in the SEC Documents filed prior to the of this Agreement and any reporting
obligations on Form 4 that have since been filed, since December 12, 2007, the Company has timely
filed all reports, schedules, registration statements, proxy statements and other documents
(including all amendments, exhibits and schedules thereto) required to be filed by the Company with
the SEC pursuant to the Exchange Act and the Securities Act. Since June 30, 2010, as of their
respective filing dates, the SEC Documents so filed complied in all material respects with the
requirements of the Securities Act, the Exchange Act and the rules and regulations of the SEC
thereunder applicable to such SEC Documents, and, other than such statements or omissions in such
SEC Documents as were subsequently supplemented, clarified or superseded prior to the of this
Agreement, as of their respective dates none of the SEC Documents filed since June 30, 2010
contained any untrue statement of a material fact or omitted to state a material fact required to
be stated therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. The financial statements of the Company
and its Subsidiaries included in the SEC Documents filed since June 30, 2010 (the “Financial
Statements”) comply as of their respective dates in all material respects with applicable
accounting requirements and the rules and regulations of the SEC with respect thereto (except as
may be indicated in the notes thereto or, in the case of the unaudited statements, as permitted by
Form 10-Q promulgated by the SEC, or as otherwise expressly stated therein), and present fairly in
all material respects as of their respective dates the consolidated financial position of the
Company and its Subsidiaries as at the dates thereof and the consolidated results of their
operations and their consolidated cash flows for each of the respective periods covered thereby,
all in conformity with GAAP. Except (a) as specifically disclosed in the Recent SEC Documents (and
excluding any risk factors set forth in such Recent SEC Documents), (b) for liabilities incurred
since December 31, 2010 in the ordinary course of business, and (c) for liabilities incurred in
connection with contracts or agreements entered into in the ordinary course of business or in
connection with this Agreement, the Related Agreements or the transactions contemplated hereby, the
Company and its Subsidiaries do not have any liabilities, either accrued, contingent or otherwise,
and whether due or to become due, which, individually or in the aggregate, have had or would
reasonably be expected to have, a Material Adverse Effect.

Section 2.8 Internal Controls. The Company and each of its Subsidiaries maintains a
system of internal control over financial reporting that the Company believes is sufficient to
provide reasonable assurance that: (a) transactions are executed in accordance with management’s
general or specific authorization; (b) transactions are recorded as necessary to permit preparation
of financial statements in conformity with GAAP and to maintain accountability for assets; and (c)
access to assets is permitted only in accordance with management’s general or specific
authorization. To the Company’s knowledge, and except as specifically disclosed in the Recent SEC
Documents (and excluding any risk factors and forward-looking statements set forth in such Recent
SEC Documents) and subject to Section 2.8 of the Schedule of Exceptions, since June 30, 2010, there
has been (i) no material weakness in the Company’s internal control over financial reporting
(whether or not remediated), (ii) no change in the Company’s internal control over financial
reporting that has materially affected, or is reasonably likely to materially affect, the Company’s
internal control over financial reporting (including any corrective actions with regard to
significant deficiencies and material weaknesses) and (iii) no fraud, whether or not material, that
involves management or other employees who have a significant role in the Company’s internal
control over financial reporting.

Section 2.9 Disclosure Controls. Subject to Section 2.9 of the Schedule of
Exceptions, the Company has established and maintains disclosure controls and procedures (as such
term is defined in Rule 13a-15 and 15d-15 under the Exchange Act). Such disclosure controls and
procedures are designed to provide reasonable assurance that material information relating to the
Company, including its Subsidiaries, that is required to be disclosed by the Company in the reports
that it furnishes or files under the Exchange Act is reported within the time periods specified in
the rules and forms of the SEC and that such material information is communicated to the Company’s
management to allow timely decisions regarding required disclosure.

Section 2.10 Absence of Certain Events; No Material Adverse Change. Since December
31, 2010, the Company and its Subsidiaries each has conducted its business operations in the
ordinary course and there has not occurred any event, development, circumstance or condition that,
individually or in the aggregate, has had or is reasonably likely to have a Material Adverse
Effect. Without limiting the generality of the foregoing, since December 31, 2010, except as
specifically disclosed in the SEC Documents filed since December 31, 2010, but prior to the date of
this Agreement, there has not occurred:

(a) any purchase, sale, transfer, assignment, conveyance or pledge of the assets or
properties of the Company or any of its Subsidiaries, except in the ordinary course of
business;

(b) any incurrence of indebtedness for borrowed money, notes, mortgages or purchase
money indebtedness of the Company or its Subsidiaries in excess of $1,000,000 in the
aggregate (other than any incurrence of indebtedness in the ordinary course of business
consistent with past practice pursuant to the Company’s revolving credit facility, it being
understood that no such indebtedness is outstanding as of the date of this Agreement);

(c) any waiver or modification by the Company or any of its Subsidiaries of any right
or rights of substantial value or of a material debt owed to it other than in the ordinary
course of business;

(d) any material change in the accounting principles, methods, practices or procedures
followed by the Company in connection with the business of the Company and its Subsidiaries
or any material change in the depreciation or amortization policies or rates theretofore
adopted by the Company in connection with the business of the Company and its Subsidiaries,
any change in the Company’s independent public accounting firm, disagreement with its
independent public accounting firm over the Company’s and its Subsidiaries’ application of
accounting principles or with the preparation of any of their financial statements that was
required to be disclosed in the SEC Documents, or, subject to Section 2.10(d) of the
Schedule of Exceptions, notification to the Company’s audit committee of any facts with
respect to the Company’s or its Subsidiaries’ financial statements or methods of accounting
that could reasonably be expected to result in a restatement of or amendment to the
Company’s or its Subsidiaries’ financial statements;

(e) except as contemplated by this Agreement, any declaration, setting aside or payment
of any dividends (or, in the case of a limited liability company, other distributions) in
respect of the outstanding shares of capital stock (or, in the case of a limited liability
company, other equity interests) of the Company or any of its Subsidiaries (other than
dividends declared or paid by wholly-owned Subsidiaries to the Company or another
wholly-owned Subsidiary of the Company) or any other change in the authorized capitalization
of the Company or any of its Subsidiaries or any direct or indirect redemption, purchase or
other acquisition of any such stock by the Company;

(f) any written notice from the SEC in connection with any investigation or action by
the SEC that seeks to require, or could reasonably be expected to result in, the restatement
by the Company of any of its current or previously disclosed financial statements, and to
the Company’s knowledge, no such investigation or action has been threatened by the SEC;

(g) any material change in any compensation agreement or arrangement with any executive
officer or director of the Company, other than in the ordinary course of business;

(h) any resignation or termination of employment of any of the Company’s executive
officers that would be required to be disclosed under Item 5.02 of Form 8–K and the Company
is not aware of any impending resignation or termination of any such executive officer;

(i) any loans or guarantees made by the Company or any of its Subsidiaries to or for
the benefit of their employees, officers or directors or any members of their immediate
families, other than (i) travel advances and other advances made in the ordinary course of
business and (ii) loans to employees, officers or directors in connection with the exercise
of stock options or the purchase of restricted stock granted pursuant to the Stock Plans;

(j) any material defect in any material software product sold by the Company or its
Subsidiaries; or

(k) any arrangement, contract or commitment to do any of the foregoing.

Section 2.11 Litigation. Except as specifically set forth in the Company’s Recent SEC
Documents (excluding any general disclosure in risk factors and forward-looking statements set
forth in such Recent SEC Documents regarding litigation or proceedings that have yet to
materialize), there is no litigation or governmental proceeding pending that would be required to
be disclosed in an annual report on Form 10-K pursuant to Item 103 of Regulation S-K, or, to the
knowledge of the Company, any litigation or governmental proceeding threatened, which, if pending,
would have been required to be disclosed in an annual report on Form 10-K pursuant to Item 103 of
Regulation S-K, in each case against the Company or any of its Subsidiaries or affecting any of the
business, operations, properties or assets of the Company or any of its Subsidiaries. Neither the
Company nor any Subsidiary is in default with respect to any order, writ, injunction, decree,
ruling or decision of any Governmental Entity that is expressly applicable to the Company or any of
its Subsidiaries or any of their assets or property. There is no material action, suit, proceeding
or investigation by the Company or its Subsidiaries currently pending which the Company or its
Subsidiaries intends to initiate.

Section 2.12 Compliance with Laws; Permits; and Educational Approvals.

(a) With such exceptions that, individually or in the aggregate, would not reasonably
be expected to have a Material Adverse Effect, the Company and its Subsidiaries are in
compliance with all Laws applicable to the Company or any of its Subsidiaries. To the
Company’s knowledge, (i) neither the Company nor any of its Subsidiaries has received notice
of any material violation or alleged material violation of applicable Laws by it, (ii) no
fact, circumstance, condition or situation exists which, after notice or lapse of time or
both, would constitute a material violation by the Company or any of its Subsidiaries of any
applicable Law and (iii) there is no applicable Law that if enforced would render the
provision of the Company’s services to its clients illegal.

(b) The Company and its Subsidiaries have obtained all material Permits necessary for
the conduct of their businesses, and each such Permit is valid and in full force and effect.
The Company and its Subsidiaries are in compliance in all material respects with all such
Permits. There are no pending or threatened proceedings that may reasonably be expected to
result in the revocation, cancellation, suspension or adverse modification thereof, or the
imposition of any material fine, penalty or other sanctions with respect to such material
Permits.

(c) Except, in each case, as would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect, (i) the Company and its Subsidiaries maintain
all Educational Approvals necessary for the conduct of their respective businesses and are
in compliance with such Educational Approvals, (ii) each such Educational Approval is valid
and in full force and effect, and no event has occurred that limits or, with the giving of
notice or the passage of time or both, would limit the legal effect or validity of such
Educational Approval, (iii) to the Company’s knowledge, neither the Company nor any of its
Subsidiaries has received any notice that any Educational Approvals necessary for the
conduct of their respective businesses will not be renewed and there are no proceedings
pending or, to the Company’s knowledge threatened, against the Company to revoke, suspend,
cancel, limit or withdraw any such Educational Approvals, (iv) neither the Company nor any
of its Subsidiaries has been directed by any Governmental Entity or Educational Agency to
show cause why any Educational Approval necessary for the conduct of their respective
businesses should not be revoked or subject to a pending action by any Educational Agency
to limit, withdraw or deny such Educational Approval and (v) no application made by the
Company or any of its Subsidiaries to any Educational Agency for any Educational Approval
necessary for the conduct of their respective businesses since January 1, 2008 has been
denied.

(d) To the Company’s knowledge, each Person employed or engaged by the Company to
provide services necessary for the conduct of its business and who is required to be
licensed by a Governmental Entity or certified by a recognized certification organization in
order to provide the services for which such Person was engaged has obtained and maintains
all required licensure or certification to provide such services to the Company in
compliance with any applicable Law or the requirements of any Government Programs, in each
case, requiring such licensure or certification, and any Person employed or engaged by the
Company to provide services to any student necessary for the conduct of its business has
successfully passed all required background checks, in each case, except as would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

(e) The Company and its Subsidiaries are in compliance in all material respects with
the terms and conditions of each Government Program necessary for the conduct of their
respective businesses. To the Company’s knowledge, none of the Company, its Subsidiaries or
any of their respective officers, directors, or employees is being investigated or has been
charged with any material violation of any Laws involving incorrect billing or fraudulent
and abusive practices relating to any such Government Programs and the Company is not aware
of any such investigations or charges pending or threatened. To the Company’s knowledge,
the Company and its Subsidiaries have properly completed and timely filed all required
reports and forms in connection with their participation in Government Programs necessary
for the conduct of their respective businesses and the receipt of the related Government
Funding by them, and such reports and forms are complete and correct in all material
respects. To the Company’s knowledge, neither the Company nor any of its Subsidiaries has
received any notice of any material inaccuracy in any claim, report or other filing with any
Governmental Entity in connection with any Government Program.

Section 2.13 Illegal Payments. Neither the Company nor any of its Subsidiaries has,
nor, to the knowledge of the Company, has any director, officer, agent or employee of the Company
or any such Subsidiary, paid, caused to be paid, or agreed to pay, directly or indirectly, in
connection with the business of the Company or any of its Subsidiaries: (a) to any government or
agency thereof, any agent or any supplier or customer, any bribe, kickback or other similar
unlawful payment; (b) any unlawful contribution to any political party or candidate; or (c)
intentionally established or maintained any unrecorded fund or asset in contravention of applicable
Law or intentionally made any false entries in any books or records for any purpose.

Section 2.14 Taxes. The Company and each of its Subsidiaries have filed all Tax
returns required to be filed within the applicable periods for such filings (with due regard to any
extension) and have paid all Taxes required to be paid, except for any such failures to file or pay
that would not individually or in the aggregate have a Material Adverse Effect. No material
deficiencies for any Tax are currently assessed against the Company or any of its Subsidiaries, and
no Tax returns of the Company or any of its Subsidiaries have been audited during the last three
years, and, there is no such audit pending or, to the knowledge of the Company, contemplated.
There is no outstanding claim by an authority in a jurisdiction where the Company does not file tax
returns that it is or may be subject to the imposition of any material tax by that jurisdiction.

Section 2.15 Intellectual Property. Subject to Section 2.15 of the Schedule of
Exceptions, all Intellectual Property Rights purported to be owned by the Company or any of its
Subsidiaries that were developed, worked on or otherwise held by any employee, officer, consultant
or otherwise are owned free and clear by the Company or one of its Subsidiaries (as the case may
be) by operation of Law or have been validly assigned to the Company or one of its Subsidiaries (as
the case may be) other than those Intellectual Property Rights where the failure to assign such
rights would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. The Intellectual Property Rights are sufficient in all material respects to carry
on the business of the Company and each of its Subsidiaries as presently conducted and as proposed
to be conducted. Subject to Section 2.15 of the Schedule of Exceptions, to the knowledge of the
Company, the Intellectual Property Rights purported to be owned by the Company or any of its
Subsidiaries do not infringe the intellectual property rights of any third party. Subject to
Section 2.15 of the Schedule of Exceptions, to the knowledge of the Company, neither the Company
nor any of its Subsidiaries has received since the later of July 1, 2010 and (with respect to each
Subsidiary of the Company that was acquired from one or more third parties subsequent to July 1,
2010) the date such Subsidiary was acquired from such third party(ies) any notice or other claim
from any third party: (a) asserting that any of the Intellectual Property Rights purported to be
owned by the Company or any of its Subsidiaries infringe any intellectual property rights of such
third party; (b) challenging the validity, effectiveness or ownership by the Company or its
Subsidiaries of any of the Intellectual Property Rights; (c) asserting that the Company or its
Subsidiaries is in material default with respect to any license granting Intellectual Property
Rights to the Company or its Subsidiaries or (d) except as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

Section 2.16 Contracts and Commitments. All of the material contracts of the Company
or any of its Subsidiaries are in full force and effect and upon consummation of the transactions
contemplated by this Agreement and the Related Agreements, shall continue in full force and effect,
without penalty or adverse consequence. Neither the Company nor any of its Subsidiaries nor, to
the knowledge of the Company, any other party is in breach of or in default under any such
contract, except, in each case, as would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. Subject to Section 2.16 of the Schedule of Exceptions,
to the Company’s knowledge, the Company has not been notified that any party to any such contract
intends to cancel, terminate, not renew or not exercise an option under any such contract, whether
in connection with the transactions contemplated hereby or otherwise, except, in each case, as
would not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

Section 2.17 Employee Matters. The Company has described in, or filed as an exhibit
to, the SEC Documents filed prior to the date of this Agreement all of the following types of
documents, agreements, plans or arrangements that are required by federal securities Laws to be
described in, or filed as an exhibit to, the SEC Documents: employment agreements, consulting
agreements, deferred compensation, pension or retirement agreements or arrangements (including all
“employee pension benefit plans” as defined in Section 3(2) of ERISA, bonus, incentive or
profit-sharing plans or arrangements, or labor or collective bargaining agreements in effect by the
Company and its Subsidiaries) (the “ERISA Documents”). The Company and its Subsidiaries are in
compliance in all material respects with all applicable Laws relating to labor, employment, fair
employment practices, terms and conditions of employment, and wages and hours, and with the terms
of the ERISA Documents (it being understood and agreed that the late funding of 401(k) retirement
plan obligations shall not be deemed a failure to so materially comply); and each such ERISA
Document is in compliance in all material respects with all applicable requirements of ERISA. To
the Company’s knowledge, none of the Company’s or its Subsidiaries’ employees are obligated under
any contract (including licenses, covenants or commitments of any nature) or other agreement, or
subject to any judgment, decree or order of any court or administrative agency, that would
interfere with the use of his or her employment obligations to the Company or its Subsidiaries or
that would conflict with the Company’s and its Subsidiaries’ business as now conducted or proposed
to be conducted, except for such contracts and other agreements, judgments, decrees and orders that
would not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

Section 2.18 No Brokers or Finders. No Person has or will have, as a result of the
transactions contemplated by this Agreement, any right, interest or claim against or upon the
Company, any of its Subsidiaries or any Purchaser for any commission, fee or other compensation as
a finder or broker because of any act or omission by the Company or any of its Subsidiaries.

Section 2.19 Transactions with Affiliates. Except as specifically disclosed in the
Recent SEC Documents, there are no loans, leases or other agreements, understandings or continuing
transactions between the Company or any of its Subsidiaries, on the one hand, and any officer or
director of the Company or any of its Subsidiaries or any Person that the Company believes is the
owner of five percent or more of the outstanding Common Stock or Series A Special Stock or any
respective family member or Affiliate of such officer, director or stockholder, on the other hand,
that are required by U.S. securities Laws to be disclosed.

Section 2.20 Insurance. The Company and its Subsidiaries maintain insurance covering
their respective assets, operations, personnel and businesses that the Company believes is adequate
for their operations as conducted on the date of this Agreement. All such insurance policies are
in full force and effect, no notice of cancellation has been received, and there is no existing
default or event which, with the giving of notice or lapse of time or both, would constitute a
default by any insured thereunder, except for such defaults that would not, individually or in the
aggregate, reasonably be expected to have, a Material Adverse Effect. There is no material claim
pending under any of such policies as to which coverage has been denied or disputed by the
underwriters of such policies and there has been no threatened termination of any such policies.

Section 2.21 Investment Company Act. The Company is not, and immediately after giving
effect to the sale of the Purchased Shares in accordance with this Agreement and the application of
the proceeds thereof will not be required to be registered as, an “investment company” or a company
“controlled” by an “investment company,” within the meaning of the Investment Company Act.

Section 2.22 New York Stock Exchange. As of the date of this Agreement, the Company’s
Common Stock is listed on the New York Stock Exchange, and no event has occurred, and the Company
is not aware of any event that is reasonably likely to occur, that would result in the Common Stock
being delisted from the New York Stock Exchange. Other than with respect to the Company’s
submission of a Subsequent Listing Application pursuant to Section 7 of the NYSE Listed Company
Manual, the issuance and sale of the Purchased Shares in conformity with the terms of this
Agreement does not contravene the rules and regulations of the New York Stock Exchange.

Section 2.23 Delaware Section 203. Neither Section 203 of the Delaware General
Corporation Law nor any other state takeover statute or similar statute or regulation applies to or
purports to apply to the sale and issuance of the Purchased Shares to the Purchasers hereunder.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF EACH PURCHASER

Each Purchaser, severally and not jointly, represents and warrants to the Company that:

Section 3.1 Organization and Power. Such Purchaser is a limited partnership duly
formed, validly existing and in good standing under the Laws of the jurisdiction of its formation
and has all requisite limited partnership power and authority to own its properties and to carry on
its business as presently conducted.

Section 3.2 Authorization, Etc. Such Purchaser has all necessary limited partnership
power and authority, and has taken all necessary limited partnership action required for the due
authorization, execution, delivery and performance by such Purchaser of this Agreement and the
Related Agreements to which it is a party and the consummation by such Purchaser of the
transactions contemplated hereby and thereby. The authorization, execution, delivery and
performance by such Purchaser of this Agreement and the Related Agreements to which it is or will
be a party, and the consummation by such Purchaser of the transactions contemplated hereby and
thereby do not and will not: (a) violate or result in the breach of any provision of the
certificate of limited partnership and limited partnership agreement of such Purchaser; or (b) with
such exceptions that, individually or in the aggregate, are not reasonably likely to have a
material adverse effect on its ability to perform its obligations under this Agreement and the
Related Agreements to which it is a party, whether after the giving of notice or the lapse of time
or both: (i) violate any provision of, constitute a breach of, or default under, or result in or
permit the cancellation, termination or acceleration of any material contract to which such
Purchaser is a party; or (ii) violate any provision of, constitute a breach of, or default under,
any applicable Law. This Agreement has been, and each of the Related Agreements to which such
Purchaser will at the Closing be party will be, duly executed and delivered by such Purchaser.
Assuming due execution and delivery thereof by the other Persons contemplated to be party thereto,
this Agreement and the Related Agreements will each be a valid and binding obligation of such
Purchaser enforceable against such Purchaser in accordance with its terms, except as such
enforceability may be limited by applicable Laws relating to bankruptcy, insolvency,
reorganization, moratorium or other similar legal requirement relating to or affecting creditors’
rights generally and except as such enforceability is subject to general principles of equity
(regardless of whether enforceability is considered in a proceeding in equity or at Law).

Section 3.3 Government Approvals. No consent, approval, license or authorization of,
or designation, declaration or filing with, or notice to, any Governmental Entity or Educational
Agency is or will be required on the part of such Purchaser in connection with the execution,
delivery and performance by such Purchaser of this Agreement and the Related Agreements to which it
is a party, except for: (a) those which have already been made or granted; (b) the filing with the
SEC of a Schedule 13D or Schedule 13G and a Form 3 to report such Purchaser’s ownership of the
Purchased Shares; (c) those where the failure to obtain such consent, approval or license would not
have a material adverse effect on the ability of the Purchasers to perform their obligations
hereunder; and (d) filings in compliance with the provisions of the HSR Act.

Section 3.4 Investment Representations.

(a) Such Purchaser is an “accredited investor” as that term is defined in Rule 501(a)
of Regulation D promulgated under the Securities Act.

(b) Such Purchaser has been advised by the Company that the Purchased Shares have not
been registered under the Securities Act, that the Purchased Shares will be issued on the
basis of the statutory exemption provided by Section 4(2) under the Securities Act or
Regulation D promulgated thereunder, or both, relating to transactions by an issuer not
involving any public offering and under similar exemptions under certain state securities
Laws, that this transaction has not been reviewed by, passed on or submitted to any federal
or state agency or self-regulatory organization where an exemption is being relied upon, and
that the Company’s reliance thereon is based in part upon the representations made by such
Purchaser in this Agreement and the Related Agreements. Such Purchaser acknowledges that it
has been informed by the Company of, or is otherwise familiar with, the nature of the
limitations imposed by the Securities Act and the rules and regulations thereunder on the
transfer of securities.

(c) Such Purchaser is purchasing the Purchased Shares for its own account and not with
a view to, or for sale in connection with, any distribution thereof in violation of federal
or state securities Laws.

(d) By reason of its business or financial experience, such Purchaser has the capacity
to protect its own interest in connection with the transactions contemplated hereunder.
Purchaser has such knowledge and experience in financial and business matters that it is
capable of evaluating the merits and risks of the purchase of the Purchased Shares.

(e) The Company has provided to such Purchaser all documents and information that such
Purchaser has requested relating to an investment in the Company. Such Purchaser recognizes
that investing in the Company involves substantial risk, and is fully aware of and has read
the various risks related to the Company and an investment in the Purchased Shares disclosed
in the SEC Documents. Such Purchaser has carefully considered the investment in the
Purchased Shares and, to the extent deemed necessary after such consideration, discussed
with the Purchaser’s professional legal, tax and financial advisers the suitability of an
investment in the Company.

(f) Neither Purchaser nor any of its Affiliates has directly or indirectly, nor has any
person acting on behalf of or pursuant to any understanding with such Purchaser, engaged in
any purchase or sale of Common Stock (including, without limitation, any Short Sales (as
defined below) involving the Company’s securities) since the date that such Purchaser became
aware of the transactions contemplated hereby. For the purposes of this Section 3.4(f),
“Short Sales” include, without limitation, all “short sales” as defined in Rule 200 of
Regulation SHO adopted under the Exchange Act and all types of direct and indirect stock
pledges, forward sales contracts, options, puts, calls, short sales and other transaction
through non-US broker-dealers or foreign regulated brokers having the effect of hedging the
securities of the Company or the investment contemplated under this Agreement.

(g) Such Purchaser does not beneficially own (as such term is defined in Rule 13d-3
under the Exchange Act) any Common Stock and is not a record owner of any Common Stock.

Section 3.5 No Brokers or Finders. No Person has or will have, as a result of the
transactions contemplated by this Agreement, any right, interest or claim against or upon the
Company, any of its Subsidiaries or any Purchaser for any commission, fee or other compensation as
a finder or broker because of any act or omission by such Purchaser.

ARTICLE IV

COVENANTS OF THE PARTIES

Section 4.1 Interim Conduct of Business.

(a) Except as otherwise expressly required by this Agreement, the Related Agreements or
applicable Law, between the date of this Agreement and the Closing, the Company shall, and
the Company shall cause each of its Subsidiaries to, (i) use commercially reasonable efforts
to conduct its business only in the ordinary course of business and (ii) use commercially
reasonable efforts to (A) preserve the present business operations, organization (including
executive officers) and goodwill of the Company and its Subsidiaries and (B) preserve
material business relationships with customers, suppliers, consultants and others having
business dealings with the Company; provided, however, that nothing in this
clause (ii) shall limit or require any actions that the Board of Directors may, in good
faith, determine to be inconsistent with its duties or the Company’s obligations under
applicable Law.

(b) Except as otherwise expressly contemplated by this Agreement, the Related
Agreements or as required by applicable Law, without the prior written consent of the
Majority Purchasers, between the date of this Agreement and the Closing, the Company shall
not, and the Company shall cause each of its Subsidiaries to not:

(i) amend its articles of incorporation or bylaws or similar organizational
documents;

(ii) change the number of directors on the Board of Directors from eight (8) or
change the current or anticipated future structure of the Board of Directors;

(iii) (A) declare, set aside or pay any dividends on, or make any other
distributions (whether in cash, securities or other property) in respect of, or
convertible into or exchangeable or exercisable for, any of its capital stock (other
than dividends and distributions by a direct or indirect wholly-owned Subsidiary of
the Company to its parent); (B) adjust, split, combine or reclassify any of its
capital stock or issue or authorize the issuance of any other securities in respect
of, in lieu of or in substitution for shares of its capital stock or any of its
other securities; or (C) purchase, redeem or otherwise acquire any shares of its
capital stock or any other of its securities or any rights, warrants or options to
acquire any such shares or other securities, other than repurchases of Common Stock
pursuant to existing compensation, benefits, option, restricted share or employment
agreements or plans existing on the date of this Agreement;

(iv) issue, deliver, sell, grant, pledge or otherwise dispose of or encumber
any of its capital stock, any other voting securities or any securities convertible
into or exchangeable for, or any rights, warrants or options to acquire, any such
capital stock, voting securities or convertible or exchangeable securities, other
than any issuance of (A) Common Stock on exercise of any compensatory stock options
outstanding on the date of this Agreement, or (B) capital stock or compensatory
stock options to employees or directors of the Company or any of its Subsidiaries in
the ordinary course of business and consistent with past practice;

(v) sell, lease, mortgage, pledge, grant a lien or security interest on, or
otherwise encumber or dispose of any of its properties or assets, except (A) in the
ordinary course of business consistent with past practice, or (B) with respect to
transactions involving not in excess of $10 million in the aggregate;

(vi) (A) file, or consent by answer or otherwise to the filing against the
Company or any of its Subsidiaries of, a petition for relief or reorganization or
arrangement or any other petition in bankruptcy, insolvency, reorganization,
moratorium or other similar Law of any jurisdiction, (B) make an assignment for the
benefit of the creditors of the Company or any of its Subsidiaries, (C) consent to
the appointment of a custodian, receiver, trustee or other officer with similar
powers with respect to the Company or any of its Subsidiaries or with respect to any
substantial part of its or their property, or (D) take any corporate action for the
purpose of any of the foregoing;

(vii) dissolve, liquidate or wind up the Company; or

(viii) authorize any of, or commit to agree to take, any of the foregoing
actions.

Section 4.2 Access; Confidentiality.

(a) From the date of this Agreement until the Closing, the Company, subject to
Section 4.2(b), shall allow and shall cause the Company’s Subsidiaries to allow,
upon reasonable advance notice, TCV VII and its officers, employees, advisors, consultants,
agents and other representatives (collectively, “Representatives”) such reasonable access
during normal business hours, and in such a manner as to not interfere with the normal
operation of the Company and its Subsidiaries, to their books, records, properties and
personnel and to such other information as TCV VII may reasonably request; provided,
however, that in no event shall TCV VII and its Representatives have access to any
information that (i) based on reasonable advice of the Company’s counsel, would destroy any
legal privilege or (ii) in the reasonable judgment of the Company, would (A) result in the
disclosure of any trade secrets of third parties or (B) violate any obligation of the
Company with respect to confidentiality; provided, further, that the Company
and the Company’s Subsidiaries shall use commercially reasonable efforts to make appropriate
substitute disclosure arrangements under circumstances where the restrictions in clauses (i)
and (ii) of this Section 4.2(a) apply.

(b) Upon the Closing, that certain Non-Disclosure Agreement, effective February 22,
2011, between the Company and TCMI (the “Non-Disclosure Agreement”) automatically shall
terminate in all respects, without any further action by the Company, TCMI, the Purchasers
or their respective Affiliates. From and after the Closing, each of TCMI and the Purchasers
agrees that it shall maintain the strict confidentiality of all Information and shall not
disclose any Information to any Person, except that TCMI and the Purchasers may disclose the
Information (i) to authorized Representatives of the Company and its Subsidiaries or the
Purchasers and as otherwise may be proper in the course of performing such Purchaser’s
obligations, or enforcing such Purchaser’s rights, under this Agreement, (ii) to any bona
fide prospective purchaser of the Common Stock directly or indirectly held by such
Purchaser, provided that such prospective purchaser agrees to be bound by the terms of this
Section 4.2(b), and (iii) as is, in the reasonable opinion of TCMI’s or any
Purchaser’s legal counsel, required to be disclosed to a Governmental Entity, or by
subpoena, summons or legal process, or by Law. Each of TCMI and the Purchasers shall advise
each of its Affiliates and Representatives to whom Information is disclosed to comply with
this Section 4.2(b) to the same extent as if it had executed and delivered this
Agreement itself, and TCMI and each Purchaser shall be responsible for the failure of any of
its Affiliates or Representatives to so comply.

Section 4.3 Commercially Reasonable Efforts to Complete. Each of the Purchasers and
the Company shall use its commercially reasonable efforts to take, or cause to be taken, all
actions, and to do, or cause to be done, and to assist and cooperate with the other party or
parties hereto in doing, all things reasonably necessary, proper or advisable under applicable Law
to consummate and make effective, in the most expeditious manner practicable, the transactions
contemplated by this Agreement, including using commercially reasonable efforts to: (a) cause the
conditions to the transactions contemplated hereby set forth in Article V and Article
VI to be satisfied; (b) obtain all necessary actions or non-actions, waivers, consents,
approvals, orders and authorizations from Governmental Entities and make all necessary
registrations, declarations and filings with Governmental Entities; and (c) execute or deliver any
additional instruments reasonably necessary to consummate the transactions contemplated by, and to
fully carry out the purposes of, this Agreement; provided, however, that in no
event shall any Purchaser have any obligation to make any payment of a material sum to a third
party (other than the payment of the purchase price in respect of the Purchased Shares, expenses of
advisors incurred in connection with the transactions contemplated hereby and filing or
administrative fees, including any HSR filing fees) or to sell, divest or dispose of any of its
assets or businesses, in each case in order to satisfy its obligations under this Section
4.3. In furtherance and not in limitation of the foregoing, each of the Company and the
Purchasers agrees to (i) make an appropriate filing of a Notification and Report Form pursuant to
the HSR Act with respect to the transactions contemplated by this Agreement within five (5) days
after the date of this Agreement, (ii) supply as promptly as reasonably practicable any additional
information and documentary material that may reasonably be requested pursuant to the HSR Act and
(iii) use its commercially reasonable efforts to take or cause to be taken all other actions
necessary, proper or advisable consistent with this Section 4.3 to cause the expiration or
termination of the applicable waiting periods, or receipt of required authorizations, as
applicable, under the HSR Act as promptly as reasonably practicable. Without limiting the
foregoing, the parties shall request and shall use commercially reasonable efforts to obtain early
termination of the waiting period under the HSR Act.

Section 4.4 Notification of Certain Matters. Prior to the Closing, the Company shall
give prompt written notice to each Purchaser of the occurrence or non-occurrence of any event known
to the Company the occurrence or non-occurrence of which would reasonably be expected to cause any
representation or warranty contained in Article II to be untrue, or the failure of the
Company to comply with or satisfy any covenant or agreement under this Agreement. Prior to the
Closing, each Purchaser shall give prompt written notice to the Company and each other Purchaser of
the occurrence or non-occurrence of any event known to such Purchaser the occurrence or
non-occurrence of which would reasonably be expected to cause any representation or warranty of
such Purchaser contained in Article III to be untrue, or the failure of such Purchaser to
comply with or satisfy any covenant or agreement under this Agreement.

Section 4.5 Public Statements and Disclosure. Neither the Company nor any of the
Purchasers shall issue any public release or make any public announcement or disclosure concerning
this Agreement or the transactions contemplated by this Agreement without the prior written consent
(which consent shall not be unreasonably withheld, delayed or conditioned) of the Majority
Purchasers, in the case of any release, announcement or disclosure by the Company, or the Company,
in the case of any release, announcement or disclosure by any Purchaser, except as such release,
announcement or disclosure may be required by applicable Law or the rules or regulations of any
applicable United States securities exchange or regulatory or Governmental Entity to which the
relevant party is subject or submits, wherever situated, in which case the party required to make
the release, announcement or disclosure shall use its commercially reasonable efforts to allow the
applicable other party or parties hereto reasonable time to comment on such release, announcement
or disclosure in advance of such issuance (it being understood that the final form and content of
any such release, announcement or disclosure, as well as the timing of any such release,
announcement or disclosure, shall be at the final discretion of the disclosing party).

Section 4.6 Legends. Each Purchaser acknowledges and agrees that the Purchased Shares
will bear a legend in substantially the following form:

“THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED, TRANSFERRED OR OTHERWISE
DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT.”

Section 4.7 Restrictions on Purchaser Actions.

(a) Each Purchaser agrees that until the date on which such Purchaser and its
Restricted Affiliates own, in the aggregate, less than 5% of the Common Stock determined on
a fully diluted basis (which shall be determined assuming conversion of all convertible,
exchangeable or exercisable capital stock, securities, warrants and options) (the
“Restricted Period”), without the prior written consent of the Board of Directors, it will
not, and will cause its Restricted Affiliates not to, at any time agree to, make any public
proposal to acquire or acquire, directly or indirectly, by purchase or otherwise, record
ownership or beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act
), of any securities of the Company which if acquired would result in such Purchaser and its
Restricted Affiliates, in the aggregate, having record or beneficial ownership of more than
24.99% of the Common Stock beneficially owned by all securityholders of the Company at the
time of determination (excluding for purposes of this calculation any compensatory stock
options and/or unvested restricted shares outstanding at the time of determination);
provided, however, that if the Company takes any direct or indirect action
that results in the number of shares of Common Stock being reduced (e.g., stock
repurchases), no Purchaser or any of its Restricted Affiliates shall be deemed to have
breached this Section 4.7(a) solely as a result of such action.

(b) During the Restricted Period, absent the prior written consent of the Company, each
Purchaser agrees not to, and agrees to cause its Restricted Affiliates not to, directly or
indirectly: (i) publicly propose to enter into, directly or indirectly, any merger,
consolidation, business combination or other similar transaction involving the Company; (ii)
make, or in any way participate in, any solicitation of proxies to vote any securities of
the Company under any circumstances for a change in the directors or management of the
Company, or in connection with a merger or acquisition of the Company, or deposit any
securities of the Company in a voting trust or subject them to a voting agreement or other
agreement of similar effect (it is understood and agreed that this clause (ii) shall not
prohibit any Purchaser or any of its Affiliates from voting any securities of the Company in
their discretion); (iii) form, join or in any way participate in a “group” (within the
meaning of Section 13(d)(3) of the Exchange Act) with respect to any securities of the
Company that describes any plans or proposals required to be disclosed in response to any of
clauses (a) through (j) of Item 4 of any Schedule 13D (or any amendment thereto), other than
a group including solely such Purchaser and its Affiliates; (iv) publicly disclose any
intention, plan or arrangement to change the Board of Directors or executive officers of the
Company or any of its Subsidiaries or the certificate of incorporation, bylaws or
certificate of designations of the Company or any of its Subsidiaries; or (v) advise, assist
or encourage any other Persons in connection with any of the foregoing; it being understood
and agreed that nothing in this Section 4.7(b) shall restrict or prohibit the TCV
Designee or any other representative of the Purchasers who is a director of the Company,
from taking any action, or refraining from taking any action, which he or she determines, in
his or her sole discretion, is necessary to fulfill his or her fiduciary duties as a member
of the Board of Directors.

(c) The provisions of Section 4.7(a) and (b) shall terminate in the
event that the Board of Directors shall: (i) recommend in favor of a tender offer for a
majority of the outstanding capital stock of the Company; (ii) approve a liquidation of the
Company or the sale of all or substantially all of the assets of the Company to another
Person; (iii) approve a merger or consolidation of the Company with any other Person that
would result in the voting securities of the Company outstanding immediately prior thereto
representing less than a majority of the voting power to elect a majority of the board of
directors or similar body of the Person surviving such merger or resulting from such
consolidation; or (iv) sell or otherwise issue to any Person voting securities of the
Company that would result in such Person having a majority of the combined voting power of
the voting securities of the Company. For purposes hereof, “voting power” means the power
to vote in the election of directors generally.

(d) The provisions of Section 4.7(a) and (b) shall be reinstated and
shall apply in full force according to their terms in the event that: (i) if the provisions
of Section 4.7(a) and (b) shall have terminated as a result of a tender
offer under clause (c)(i) above, such tender offer (as originally made or as extended or
modified) shall have terminated (without any securities being accepted thereunder for
purchase) prior to the commencement of a tender offer by any Purchaser or any of its
Restricted Affiliates that would have been permitted pursuant to clause (c)(i) as a result
of such third-party tender offer; (ii) any tender offer by any Purchaser or any of its
Restricted Affiliates (as originally made or as extended or modified) that was permitted to
be made pursuant to clause (c)(ii) through (c)(iv) shall have terminated (without any
securities being accepted thereunder for purchase); or (iii) if the provisions of
Section 4.7(a) and (b) shall have terminated as a result of clause (c)(ii),
(c)(iii) or (c)(iv), the Board of Directors shall have determined to rescind or abandon the
previous action described in clause (c)(ii) through (iv) (and no such action shall have
closed). Upon reinstatement of the provisions of Section 4.7(a) and (b),
the preceding provisions of this Section 4.7 shall continue to govern, including,
those that provide for the termination of any of the provisions of this Section 4.7
in the event that any of the events described in clause (c) shall occur.

Section 4.8 TCV Designee and Management Rights.

(a) Immediately prior to and conditioned upon the Closing, the Board of Directors
shall, and shall take all actions necessary to, promptly (i) increase the number of
directors on the Board of Directors from eight (8) to nine (9) and (ii) elect Jake Reynolds
(the “TCV Designee”) to the Board of Directors to hold office until the next annual meeting
of stockholders and until his or her successor is elected and qualified or until his death,
retirement, resignation or removal. After the initial election of the TCV Designee to the
Board of Directors, the Purchasers shall have no continuing rights hereunder with respect to
the election of a designee of the Purchasers to the Board of Directors. The rights of the
Purchasers pursuant to this Section 4.8(a) shall not be transferable to, or
exercisable by, any person other than the Purchasers.

(b) The Company shall, upon the TCV Designee becoming a director of the Company,
(i) enter into an indemnification agreement with such director in the form entered into with
the other directors of the Company, modified to include the provisions set forth in
Exhibit C, and (ii) cause such TCV Designee to be covered by any directors and
officers insurance policy maintained by the Company from time to time at all times that such
TCV Designee serves on the Board of Directors.

(c) At the Closing, the Company shall enter into a VCOC management rights agreement (a
“Management Rights Agreement”) with each of TCV VII and TCV VII (A) in the forms attached
hereto as Exhibit D-1 and Exhibit D-2, respectively.

Section 4.9 Specific Performance. The Purchasers and the Company agree that
irreparable damage would occur and that the Company and the Purchasers, as applicable, would not
have any adequate remedy at Law in the event that any of the provisions of Section 4.2(b)
(Confidentiality), Section 4.7, (Restrictions on Purchaser Actions) or Section 4.8
(TCV Designee and Management Rights) were not performed in accordance with their specific terms or
were otherwise breached. Accordingly, the Purchasers and the Company agree that the Company and
the Purchasers, as applicable, shall without the necessity of proving the inadequacy of money
damages or posting a bond be entitled to an injunction or injunctions to prevent breaches of such
Sections and to enforce specifically the terms, provisions and covenants contained therein, this
being in addition to any other remedy to which they are entitled at Law or in equity.

ARTICLE V

CONDITIONS TO THE PURCHASERS’ OBLIGATION

The obligation of a Purchaser to consummate the transactions contemplated hereby is subject to
the satisfaction, on or prior to the Closing Date, of each of the following conditions precedent:

Section 5.1 Representations and Warranties. Each of the representations and
warranties of the Company contained in Article II of this Agreement shall be true and
correct in all material respects on and as of the Closing Date with the same effect as though such
representations and warranties had been made on and as of the Closing Date, except for
representations and warranties that speak as of a specific date or time other than the Closing Date
(which need only be true and correct in all material respects as of such date or time);
provided, however, that if a representation or warranty is qualified by
“materiality” or “Material Adverse Effect” or similar qualifier, such representation or warranty
(as so qualified) shall be true and correct in all respects.

Section 5.2 Covenants. The Company shall have performed and complied in all material
respects with all covenants and agreements required by this Agreement to be performed or complied
with by it at or prior to the Closing.

Section 5.3 No Material Adverse Effect. Since the date of this Agreement, no event,
development, circumstance or condition shall have occurred that, individually or in the aggregate,
has had or would reasonably be expected to have a Material Adverse Effect.

Section 5.4 Certificates. The Company shall have delivered to the Purchasers (i) a
certificate, dated as of the Closing Date and executed on behalf of the Company by its Chief
Executive Officer, to the effect that each of the conditions set forth in Section 5.1,
Section 5.2 and Section 5.3 has been satisfied, and (ii) a certificate, dated as of
the Closing Date and executed on behalf of the Company by its Secretary, certifying the Company’s
(A) certificate of incorporation, as amended, (B) bylaws, as amended, and (C) board resolutions
approving this Agreement, the Related Agreements and the transactions contemplated hereby and
thereby.

Section 5.5 HSR Act. All waiting periods (and any extensions thereof) under the HSR
Act applicable to the consummation of the transactions contemplated by this Agreement shall have
expired or otherwise been terminated.

Section 5.6 No Law, Order or Proceeding. No Law, order, rule or regulation of any
Governmental Entity shall be in effect prohibiting or making illegal the purchase and sale of the
Purchased Shares or the other transactions contemplated by this Agreement or the Related
Agreements, and no action, proceeding or investigation shall have been commenced by any such
authority against any party hereto seeking to restrain or prohibit any such transaction.

Section 5.7 Stock Certificates. The Company shall have delivered one or more stock
certificates to each Purchaser representing the portion of the Purchased Shares to be purchased by
such Purchaser.

Section 5.8 Investor Rights Agreement. The Company shall have entered into the
Investor Rights Agreement.

Section 5.9 TCV Designee. Subject only to the occurrence of the Closing, the Board
shall include the TCV Designee, who shall have been duly elected to the Board.

Section 5.10 Legal Opinion. The Company shall have provided an opinion addressed to
the Purchasers rendered by its outside legal counsel, Latham & Watkins LLP, substantially in form
and substance attached hereto as Exhibit F.

Section 5.11 Management Rights Agreements. The Company shall have entered into the
Management Rights Agreements with each of TCV VII and TCV VII (A).

Section 5.12 Subsequent Listing Application. The Company shall have submitted a
Subsequent Listing Application pursuant to Section 7 of the NYSE Listed Company Manual and received
notice from the NYSE that the Purchased Shares have been approved for listing on the NYSE upon
official notice of issuance.

ARTICLE VI

CONDITIONS TO THE COMPANY’S OBLIGATION

The obligation of the Company to consummate the transactions contemplated hereby with respect
to each Purchaser is subject to the satisfaction, on or prior to the Closing Date, of each of the
following conditions precedent by such Purchaser:

Section 6.1 Representations and Warranties; Performance. Each of the representations
and warranties of such Purchaser contained in Article III of this Agreement shall be true
and correct in all material respects on and as of the Closing Date with the same effect as though
such representations and warranties had been made on and as of the Closing Date, except for
representations and warranties that speak as of a specific date or time other than the Closing Date
(which need only be true and correct in all material respects as of such date or time);
provided, however, that if a representation or warranty is qualified by
“materiality” or “material adverse effect” or similar qualifier, such representation or warranty
(as so qualified) shall be true and correct in all respects.

Section 6.2 Covenants. Such Purchaser shall have performed and complied in all
material respects with all covenants and agreements required by this Agreement to be performed or
complied with by it at or prior to the Closing.

Section 6.3 Certificates. Such Purchaser shall have delivered to the Company a
certificate, dated as of the Closing Date and executed on behalf of such Purchaser by its
authorized representative, to the effect that each of the conditions set forth in Section
6.1 and Section 6.2 has been satisfied.

Section 6.4 HSR Act. All waiting periods (and any extensions thereof) under the HSR
Act applicable to the consummation of the transactions contemplated by this Agreement shall have
expired or otherwise been terminated.

Section 6.5 No Law, Order or Proceeding. No Law, order, rule or regulation of any
Governmental Entity shall be in effect prohibiting or making illegal the purchase and sale of the
Purchased Shares or the other transactions contemplated by this Agreement or the Related
Agreements, and no action, proceeding or investigation shall have been commenced by any such
authority against any party hereto seeking to restrain or prohibit any such transaction.

Section 6.6 Consideration for the Securities. Such Purchaser shall have paid the
purchase price of the Purchased Shares to be purchased by such Purchaser in full at the Closing
either by certified check or by wire transfer of immediately available funds to an account
designated in writing by the Company.

Section 6.7 Investor Rights Agreement. Such Purchaser shall have entered into the
Investor Rights Agreement.

ARTICLE VII

TERMINATION

Section 7.1 Termination. This Agreement, as it applies to any single Purchaser, may
be terminated prior to the Closing:

(a) by mutual written agreement of the Company and such Purchaser, upon written notice
to the other parties;

(b) by the Company or such Purchaser, who have agreed to use commercially reasonable
efforts and cooperate in good faith to consummate the transactions contemplated by this
Agreement pursuant to Section 4.3 hereof (including, without limitation, the parties
agreement to request and use commercially reasonable efforts to obtain early termination of
the waiting period under the HSR Act), upon written notice to the other parties, in the
event that the Closing does not occur on or before September 1, 2011; provided,
however, that the right to terminate this Agreement pursuant to this Section
7.1(b) shall not be available to any party whose failure to fulfill any obligation under
this Agreement shall have been the cause of, or shall have resulted in, the failure of the
Closing to occur on or prior to such date;

(c) by such Purchaser, upon written notice to the other parties, if (i) there has been
a breach of any representation, warranty, covenant or agreement made by the Company in this
Agreement, or any such representation and warranty shall have become untrue after the date
of this Agreement, such that Section 5.1 or Section 5.2 would not be
satisfied and (ii) such breach or condition is not curable provided that this
Section 7.1(c) shall only apply if such Purchaser is not in material breach of any
of the terms of this Agreement;

(d) by the Company with respect to any single Purchaser, upon written notice to the
other parties, if (i) there has been a breach of any representation, warranty, covenant or
agreement made by such Purchaser in this Agreement, or any such representation and warranty
shall have become untrue after the date of this Agreement, such that Section 6.1 or
Section 6.2 would not be satisfied and (ii) such breach or condition is not curable;
provided that this Section 7.1(d) shall only apply if the Company is not in
material breach of any of the terms of this Agreement; or

(e) by the Company or such Purchaser, upon written notice to the other parties, in the
event that any Governmental Entity shall have issued any order, decree or injunction or
taken any other action restraining, enjoining or prohibiting any of the transactions
contemplated by this Agreement, and such order, decree, injunction or other action shall
have become final and nonappealable.

For the avoidance of doubt, the termination of this Agreement with respect to any single
Purchaser pursuant to this Section 7.1 shall not terminate or otherwise affect this
Agreement with respect to any other Purchaser.

Section 7.2 Effects of Termination. In the event of the termination of this Agreement
with respect to any single Purchaser pursuant to Section 7.1, this Agreement, as applicable
to such Purchaser, shall be of no further force or effect without liability of any party or parties
hereto, as applicable, to the other party or parties hereto, as applicable, except (a) for the
terms of this Section 7.2 and Article VIII, each of which shall survive the
termination of this Agreement, as applicable to such Purchaser, and (b) that nothing herein shall
relieve the Company or such Purchaser, as applicable, from liability for any willful breach of, or
fraud in connection with, this Agreement.

ARTICLE VIII

MISCELLANEOUS

Section 8.1 Survival of Representations. The representations, warranties, covenants
and agreements made herein or in any certificates or documents executed in connection herewith
shall survive the execution and delivery hereof and the Closing of the transactions contemplated
hereby. Notwithstanding the foregoing, the representations and warranties contained in or made
pursuant to this Agreement shall terminate on, and no claim or action with respect thereto may be
brought with respect to such representation and warranties after, the earlier of (a) the date that
is thirty (30) days after the date the Company filed its annual report on Form 10-K for the year
ending June 30, 2011 and (b) the date that is ten (10) days after the effective date of the Resale
Shelf Registration (as defined in the Investor Rights Agreement); except for the representations
and warranties set forth in Section 2.2, Section 2.18 and Section 2.23
which shall survive indefinitely.

Section 8.2 Shares Owned by Affiliates. For the purposes of applying all provisions
of this Agreement which condition the receipt of information or access to information or exercise
of any rights upon ownership of a specified number or percentage of shares, the shares owned of
record by any Affiliate of a Purchaser shall be deemed to be owned by such Purchaser.

Section 8.3 Counterparts. This Agreement may be executed in one or more counterparts,
all of which shall be considered one and the same agreement, and will become effective when one or
more counterparts have been signed by a party and delivered to the other parties. Copies of
executed counterparts transmitted by telecopy, telefax or other electronic transmission service
(including electronic mail) shall be considered original executed counterparts for purposes of this
Section 8.3, provided that receipt of copies of such counterparts is confirmed.

Section 8.4 Governing Law.

(a) Except to the extent the Delaware General Corporation Law is mandatorily
applicable, this Agreement and any disputes arising hereunder or controversies related
hereto shall be governed by and construed in accordance with the internal Laws, and not the
Laws of conflicts, of the State of New York that apply to contracts made and performed
entirely within such state. The parties hereto hereby submit to the non-exclusive
jurisdiction of the federal and state courts in the Borough of Manhattan in The City of New
York in any suit or proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby. The parties hereto irrevocably and unconditionally waive
any objection to the laying of venue of any suit or proceeding arising out of or relating to
this Agreement or the transactions contemplated hereby in federal and state courts in the
Borough of Manhattan in the City of New York and irrevocably and unconditionally waive and
agree not to plead or claim in any such court that any such suit or proceeding in any such
court has been brought in an inconvenient forum.

(b) Waiver of Jury Trial. EACH PARTY HERETO, FOR ITSELF AND ITS AFFILIATES,
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR OTHER PROCEEDING (WHETHER BASED ON
CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE ACTIONS OF THE PARTIES HERETO
OR THEIR RESPECTIVE AFFILIATES PURSUANT TO THIS AGREEMENT OR IN THE NEGOTIATION,
ADMINISTRATION, PERFORMANCE OR ENFORCEMENT HEREOF.

Section 8.5 Entire Agreement; No Third Party Beneficiary. This Agreement and the
Related Agreements contain the entire agreement by and among the parties with respect to the
subject matter hereof and all prior negotiations, writings and understandings relating to the
subject matter of this Agreement, including the term sheet dated March 16, 2011 between the
Company, TCV VII and TCV VII (A), are merged into and are superseded and canceled by, this
Agreement and the Related Agreements. Except with respect to Section 4.8(b), this
Agreement is not intended to confer upon any Person not a party hereto (or its successors and
permitted assigns) any rights or remedies hereunder.

Section 8.6 Expenses. Whether or not the Closing shall occur, all fees, costs and
expenses incurred in connection with this Agreement and the transactions contemplated hereby,
including accounting and legal fees, shall be paid by the party incurring such expenses, except
that on the Closing Date the Company shall pay up to $150,000 of the reasonable and documented
out-of-pocket fees and expenses incurred by the Purchasers, including the reasonable and documented
fees and expenses of counsel for the Purchasers and any HSR filing fees.

Section 8.7 Notices. All notices and other communications hereunder will be in writing and
given by (a) personal delivery, (b) certified or registered mail, return receipt requested,
(c) nationally recognized overnight delivery service, such as Federal Express, (d) facsimile, with
confirmation of transmission by the transmitting equipment, or (e) electronic mail, provided the
relevant computer record indicates a full and successful transmission, in each case to the party to
whom it is given at such party’s physical address, facsimile number or electronic mail address set
forth below or such other physical address, facsimile number or electronic mail address as such
party may hereafter specify by notice to the other parties hereto given in accordance herewith.
Any such notice or other communication shall be deemed to have been given as of the date so
personally delivered or transmitted by facsimile or electronic mail transmission, on the next
Business Day when sent by overnight delivery services or five (5) days after the date so mailed if
by certified or registered mail.

If to the Company, to:

K12 Inc

2300 Corporate Park Drive

Herndon, VA 20171

Attention: General Counsel

Fax No.: (703) 483-7496

Email: hpolsky@k12.com

with a copy (which shall not constitute notice) to:

Latham & Watkins LLP

555 Eleventh Street, N.W.

Suite 1000

Washington, DC 20004

Attention: William P. O’Neill

Fax No.: (202) 637-2201

Email: william.o’neill@lw.com

If to a Purchaser, to:

Technology Crossover Ventures

528 Ramona Street

Palo Alto, CA 94301

Attention: Carla S. Newell, Frederic D. Fenton

Fax No.: (650) 614-8222

Email: cnewell@tcv.com, rfenton@tcv.com

with a copy (which shall not constitute notice) to:

Kirkland & Ellis LLP

300 North LaSalle Street

Chicago, IL 60654

Attention: Stephen L. Ritchie, P.C.

Fax No.: (312) 862-2200

Email: stephen.ritchie@kirkland.com

Section 8.8 Successors and Assigns. This Agreement will be binding upon and inure to
the benefit of the parties hereto and their respective successors and permitted assigns. The
Company shall not assign this Agreement or any rights or obligations hereunder without the prior
written consent of the Majority Purchasers. Upon notice to the Company, any Purchaser may assign
some or all of its rights hereunder without the consent of the Company to any Affiliate of such
Purchaser, and such assignee shall be deemed to be a Purchaser hereunder with respect to such
assigned rights and shall agree in writing to be bound by the terms, conditions, representations
and covenants of this Agreement and the Related Agreements that apply to such Purchaser.

Section 8.9 Headings. The Section, Article and other headings contained in this
Agreement are inserted for convenience of reference only and will not affect the meaning or
interpretation of this Agreement.

Section 8.10 Amendments and Waivers. This Agreement may not be modified or amended
except by an instrument or instruments in writing signed by the Company and the Majority
Purchasers; provided that no such modification or amendment that would adversely affect any
Purchaser in a manner materially different than how it affects the Majority Purchasers shall be
effective against such adversely affected Purchaser without the prior written consent of such
adversely affected Purchaser. Any party hereto may, only by an instrument in writing, waive
compliance by any other party or parties hereto with any term or provision hereof on the part of
such other party or parties hereto to be performed or complied with. No failure or delay of any
party in exercising any right or remedy hereunder shall operate as a waiver thereof, nor will any
single or partial exercise of any right or power, or any abandonment or discontinuance of steps to
enforce such right or power, preclude any other or further exercise thereof or the exercise of any
other right or power. The waiver by any party hereto of a breach of any term or provision hereof
shall not be construed as a waiver of any subsequent breach. The rights and remedies of the
parties hereunder are cumulative and are not exclusive of any rights or remedies that they would
otherwise have hereunder.

Section 8.11 Interpretation; Absence of Presumption.

(a) For the purposes hereof: (i) words in the singular shall be held to include the
plural and vice versa and words of one gender shall be held to include the other gender as
the context requires; (ii) the terms “hereof,” “herein,” and “herewith” and words of similar
import shall, unless otherwise stated, be construed to refer to this Agreement as a whole
(including all of the Schedules and Exhibits) and not to any particular provision of this
Agreement, and Article, Section, paragraph, Exhibit and Schedule references are to the
Articles, Sections, paragraphs, Exhibits, and Schedules to this Agreement unless otherwise
specified; (iii) the word “including” and words of similar import when used in this
Agreement shall mean “including, without limitation,” unless the context otherwise requires
or unless otherwise specified; and (iv) the word “or” shall not be exclusive.

(b) With regard to each and every term and condition of this Agreement and any and all
agreements and instruments subject to the terms hereof, the parties hereto understand and
agree that the same have or has been mutually negotiated, prepared and drafted, and if at
any time the parties hereto desire or are required to interpret or construe any such term or
condition or any agreement or instrument subject hereto, no consideration will be given to
the issue of which party hereto actually prepared, drafted or requested any term or
condition of this Agreement or any agreement or instrument subject hereto.

Section 8.12 Severability. Any provision hereof that is held to be invalid, illegal
or unenforceable in any respect by a court of competent jurisdiction, shall be ineffective only to
the extent of such invalidity, illegality or unenforceability, without affecting in any way the
remaining provisions hereof; provided, however, that the parties will attempt in
good faith to reform this Agreement in a manner consistent with the intent of any such ineffective
provision for the purpose of carrying out such intent.

Section 8.13 Equitable Adjustment. If between the date of this Agreement and the
Closing Date the outstanding shares of Common Stock shall have been changed into a different number
of shares or a different class, solely by reason of any stock dividend, subdivision,
reclassification, recapitalization, split, reverse split, combination or exchange of shares or any
other similar transaction, the number of Purchased Shares and the purchase price per Purchased
Share shall be correspondingly adjusted to reflect such stock dividend, subdivision,
reclassification, recapitalization, split, reverse split, combination or exchange of shares or any
other similar transaction and to provide to each Purchaser the same economic effect as contemplated
by this Agreement prior to such action.

Section 8.14 Schedules. The Schedule of Exceptions to this Agreement (the “Schedule
of Exceptions”) shall be arranged in sections and subsections corresponding to the numbered section
and lettered subsections of this Agreement. Any information disclosed in any such section or
subsection shall be deemed fully disclosed for the purposes of all of the other such sections and
subsections and shall be deemed to qualify all representations and warranties of the Company if the
applicability of such information to such other section or subsection is reasonably apparent on its
face. Neither the specification (directly or indirectly by reference to a defined term hereof) of
any dollar amount in the representations and warranties set forth in Article II nor the
inclusion of any items in the Schedule of Exceptions shall be deemed to constitute an admission by
the Company or the Purchasers, or otherwise imply, that any such amount or such items so included
are material for the purposes of this Agreement. The inclusion of, or reference to, any item
within any particular section or subsection to the Schedule of Exceptions does not constitute an
admission by the Company or the Purchasers that such item meets any or all of the criteria set
forth in this Agreement for inclusion in such section or subsection.

[Signature pages follow]

The parties have caused this Securities Purchase Agreement to be executed as of the
date first written above.

COMPANY:

K12 INC.

By: /s/ Ronald J. Packard

Name: Ronald J. Packard

Title: Chief Executive Officer

PURCHASERS:

TCV VII, L.P.

By: Technology Crossover Management VII, L.P.

Its: General Partner

By: Technology Crossover Management VII, Ltd.

Its: General Partner

By: /s/ Frederic D. Fenton

Name: Frederic D. Fenton

Title: Authorized Signatory

TCV VII (A), L.P.

By: Technology Crossover Management VII, L.P.

Its: General Partner

By: Technology Crossover Management VII, Ltd.

Its: General Partner

By: /s/ Frederic D. Fenton

Name: Frederic D. Fenton

Title: Authorized Signatory

TCV MEMBER FUND, L.P.

By: Technology Crossover Management VII, Ltd.

Its: General Partner

By: /s/ Frederic D. Fenton

Name: Frederic D. Fenton

Title: Authorized Signatory

2

SOLELY FOR PURPOSES OF SECTION 4.2(B) HEREOF:

TCMI, INC.

By: /s/ Frederic D. Fenton

Name: Frederic D. Fenton

Title: Authorized Signatory

EXHIBIT A

DEFINED TERMS

	1.	 	The following capitalized terms have the meanings indicated:

“Accreditation” means the status of public recognition or listing granted by an Accrediting
Body to a school or an educational program reflecting the Accrediting Body’s determination that the
school or educational program meets the published standards and requirements of the Accrediting
Body.

“Accrediting Body” means any non-governmental entity or non-governmental organization,
including any institutional or specialized accrediting agency, which engages in the granting or
withholding of Accreditation of schools or educational programs.

“Affiliate” of any Person means any Person, directly or indirectly, controlling, controlled by
or under common control with such Person.

“Board of Directors” means the Company’s board of directors.

“Business Day” means any day, other than a Saturday, Sunday or any other date in which banks
located in New York, New York are closed for business as a result of federal, state or local
holiday.

“Certificate of Designations” means the Certificate of Designations, Preferences and Relative
and Other Special Rights of Series A Special Stock dated as of July 23, 2010.

“Code” means the Internal Revenue Code of 1986, as amended.

“Educational Agency” means any Governmental Entity, State Educational Agency, Local
Educational Agency, or Accrediting Body that engages in granting or withholding Educational
Approvals for, or otherwise has jurisdiction to regulate, the Company or any of its Subsidiaries in
accordance with standards relating to the performance, operation, financial condition and/or
academic standards of, schools, educational programs and educational service providers.

“Educational Approval” means any (i) license, authorization, certification, program
participation agreement, Accreditation or other approval issued by an Educational Agency with
respect to the Company or any of its Subsidiaries and (ii) license, authorization, certification or
other approval issued to individuals by an Educational Agency and required by Law for an individual
to be employed by the Company or any of its Subsidiaries or to be engaged by the Company or any of
its Subsidiaries in providing educational services.

“Educational Law” means any laws, regulations, orders, standards or requirements administered
or promulgated by any Educational Agency.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“GAAP” means generally accepted accounting principles as in effect in the United States.

“Government Funding” means any funds accepted by the Company or any of its Subsidiaries from
any Governmental Entity.

“Government Program” means any federal, state or local program that provides Government
Funding or any program administered by an Educational Agency (other than an Accrediting Body)
relating to the performance, operation, financial condition and/or academic standards of schools,
educational programs and educational service providers and whose requirements are binding upon the
Company or any of its Subsidiaries.

“Governmental Entity” means any federal, state, local or foreign government or political
subdivision or regulatory authority or any court, tribunal, judicial or arbitral body,
administrative agency or other governmental authority or instrumentality, department, commission,
board, bureau, or regulatory authority thereof, including any Educational Agency other than an
Accrediting Body.

“HSR Act” means the United States Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended, and rules and regulations promulgated thereunder.

“Information” means all documents, materials, reports and other information relating to the
Company or any of its Subsidiaries or their respective assets or businesses, which was furnished to
the Purchasers in connection with the transactions contemplated hereby by or on behalf of the
Company or any of its Subsidiaries (whether prepared by the Company or its Representatives or
otherwise and irrespective of the form of communication). Notwithstanding the foregoing, the term
“Information” does not include any document, material, report and other information that (i) is or
becomes generally available to the public (other than by or as a result of any unauthorized
disclosure by any Purchaser or its Representatives), (ii) was already known to any Purchaser at the
time of disclosure by or on behalf of the Company, as can be reasonably demonstrated by such
Purchaser, or (iii) becomes available to any Purchaser on a non-confidential basis from a source
other than the Company or its Subsidiaries, provided that such source is not known by such
Purchaser after due inquiry to have disclosed such information in violation of an obligation of
confidentiality to the Company or any of its Subsidiaries.

“Intellectual Property Rights” means all registered copyrights, copyright registrations and
copyright applications, trademark registrations and applications for registration, patents and
patent applications, trademarks, service marks, trade names and Internet domain names that are used
by the Company or any of its Subsidiaries in their business as presently conducted, including all
(i) databases, computer programs and other computer software user interfaces, know-how, trade
secrets, customer lists, proprietary technology, processes and formulae, source code, object code,
algorithms, development tools, instructions and templates created by or on behalf of the Company or
any of its Subsidiaries and (ii) inventions, trade dress, logos and designs created by or on behalf
or any of the Company or any of its Subsidiaries.

“Investment Company Act” mean the Investment Company Act of 1940, as amended.

“Investor Rights Agreement” means the Investor Rights Agreement among the Company and each of
the Purchasers in the form attached to the Agreement as Exhibit E.

“Law” means any rule, regulation, executive order, constitution, statute, order, ordinance,
law, code, or other requirement having the effect of law promulgated by any Governmental Entity,
including any Educational Law.

“Lien” means any mortgage, pledge, security interest or other encumbrance.

“Local Educational Agency” means any public authority legally constituted within a state for
either administrative control or direction of, or to perform a service function for, public
elementary or secondary schools in a city, county, township, school district, or other political
subdivision of a state, or for a combination of school districts or counties as are recognized in a
state as an administrative agency for its public elementary or secondary schools.

“Majority Purchasers” means the Purchasers purchasing a majority of the Purchased Shares
hereunder.

“Material Adverse Effect” means a material adverse effect upon the business, financial
condition, assets, liabilities or results of operations of the Company and its Subsidiaries, taken
as a whole.

“Person” means an individual, corporation, partnership, limited liability company, joint
venture, trust or unincorporated organization or a government or agency or political subdivision
thereof.

“Permits” means all permits, licenses, authorizations, consents, approvals and franchises from
Governmental Entities.

“Proxy Statement” means the Company’s definitive proxy statement filed with the SEC on
November 23, 2010.

“Recent SEC Documents” means the SEC Documents filed since June 30, 2010, but prior to the
date hereof.

“Restricted Affiliate” means: (i) any Person who is directly or indirectly responsible for
the formation, management, operations, oversight or administration of a Purchaser (including any
principals, partners or employees of any such Person); (ii) any investment fund directly or
indirectly formed, managed or controlled by any one or more Persons referred to in the preceding
clause (i); and (iii) any direct of indirect Subsidiary of any Person referred to in the preceding
clause (i) or clause (ii) in which any one or more such Persons have the right to elect, directly
or indirectly, a majority of the board of directors, or similar governing body, of such Subsidiary
or own a majority of the voting securities entitled to elect such a majority of the board of
directors, or similar governing body.

“SEC” means the United States Securities and Exchange Commission.

“SEC Documents” means all reports, schedules, registration statements, proxy statements and
other documents (including all amendments, exhibits and schedules thereto) filed by the Company
with the SEC.

“Series A Special Stock” means the Company’s Preferred Stock designated as Series A Special
Stock.

“State Educational Agency” means any state governmental authority with responsibility for the
supervision of elementary, secondary and/or postsecondary education in a state, or which provides
such licenses, permits, consents, approvals, certificates, program participation agreements or
other approvals, in each case, necessary for the operation of the business of the Company or its
Subsidiaries in that state in accordance with standards relating to the performance, operation,
financial condition and/or academic standards of schools, educational programs and educational
service providers.

“Stock Plans” means the K12 Inc. 2007 Equity Incentive Award Plan, the K12 Inc. Employee Stock
Purchase Plan and the K12 Inc. Amended and Restated Stock Option Plan.

“Subsidiary” means, with respect to any Person, any corporation, partnership, limited
liability company, association, joint venture or other business entity of which (i) if a
corporation, more than 50% of the total voting power of shares of stock is at the time of
determination entitled (irrespective of whether, at the time, stock of any other class or classes
of such corporation shall have or might have voting power by reason of the happening of any
contingency) to vote in the election of directors, managers or trustees thereof is at the time
owned or controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (ii) if a partnership, limited liability
company, association, joint venture or other business entity, more than 50% of the partnership,
joint venture or other similar ownership interest thereof is at the time of determination owned or
controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a
combination thereof.

“Tax” and “Taxes” means all federal, state, local and foreign taxes, including income,
franchise, property, sales, withholding, payroll and employment taxes.

“TCV VII” means TCV VII, L.P., a Cayman Islands exempted limited partnership.

“TCV VII (A)” means TCV VII (A), L.P., a Cayman Islands exempted limited partnership.

“VCOC” means “venture capital operating company” as defined in the Department of Labor
Regulations, Section 25101.3-101(d).

2. The following terms are defined in the Sections of the Agreement indicated:

3

INDEX OF TERMS

	 	 	 
	Defined Term	 	Section
	Agreement

	 	Preamble
	Closing

	 	Section 1.2
	Closing Date

	 	Section 1.2
	Common Stock

	 	Recitals
	Company

	 	Preamble
	ERISA Documents

	 	Section 2.17
	Financial Statements

	 	Section 2.7
	Management Rights Agreement

	 	Section 4.8(c)
	Non-Disclosure Agreement

	 	Section 4.2(b)
	Preferred Stock

	 	Section 2.4(a)
	Purchased Shares

	 	Recitals
	Purchasers

	 	Preamble
	Related Agreements

	 	Section 2.2
	Representatives

	 	Section 4.2(a)
	Restricted Period

	 	Section 4.7
	Schedule of Exceptions

	 	Section 8.14
	Securities Act

	 	Section 2.4(c)
	TCMI

	 	Preamble
	TCV Designee

	 	Section 4.8(a)

EXHIBIT B

PURCHASED SHARES

	 	 	 	 	 	 	 	 	 
	 	 	Number of	 	 
	Purchaser	 	Purchased Shares	 	Aggregate Purchase Price
	TCV VII, L.P.
	 	 	2,617,727	 	 	$	82,353,691.42	 
	TCV VII (A), L.P.
	 	 	1,359,447	 	 	$	42,768,202.62	 
	TCV Member Fund, L.P.
	 	 	22,826	 	 	$	718,105.96	 
	Total
	 	 	4,000,000	 	 	$	125,840,000	 
	 
	 	 	 	 	 	 	 	 

EXHIBIT C

CERTAIN INDEMNIFICATION PROVISIONS

WHEREAS, Indemnitee is a representative of TCV VII, L.P., a Cayman Islands exempted limited
partnership (the “Fund”), and has certain rights to indemnification and/or insurance provided by
the Fund which Indemnitee and the Fund intend to be secondary to the primary obligation of the
Company to indemnify Indemnitee as provided herein, with the Company’s acknowledgement and
agreement to the foregoing being a material condition to Indemnitee’s willingness to serve on the
Board.

The Company hereby acknowledges that Indemnitee has certain rights to indemnification,
advancement of expenses and/or insurance provided by the Fund and certain of its affiliates
(collectively, the “Fund Indemnitors”). The Company hereby agrees (i) that it is the indemnitor
ahead of the Fund Indemnitors (i.e., its obligations to Indemnitee are primary and any obligation
of the Fund Indemnitors to advance expenses or to provide indemnification for the same expenses or
liabilities incurred by Indemnitee are secondary with respect to matters under this Agreement),
(ii) that it shall be required to advance the full amount of expenses incurred by Indemnitee and
shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts paid
in settlement to the extent legally permitted and as required by the Third Amended and Restated
Certificate of Incorporation or Amended and Restated Bylaws of the Company (or any agreement
between the Company and Indemnitee), without regard to any rights Indemnitee may have against the
Fund Indemnitors, and, (iii) that it irrevocably waives, relinquishes and releases the Fund
Indemnitors from any and all claims against the Fund Indemnitors for contribution, subrogation or
any other recovery of any kind in respect thereof. The Company further agrees that no advancement
or payment by the Fund Indemnitors on behalf of Indemnitee with respect to any claim for which
Indemnitee has sought indemnification from the Company shall affect the foregoing and the Fund
Indemnitors shall have a right of contribution and/or be subrogated to the extent of such
advancement or payment to all of the rights of recovery of Indemnitee against the Company. The
Company and Indemnitee agree that the Fund Indemnitors are express third party beneficiaries of the
terms hereof.

EXHIBIT D

FORM OF MANAGEMENT RIGHTS AGREEMENT

EXECUTION COPY

MANAGEMENT RIGHTS AGREEMENT

This MANAGEMENT RIGHTS AGREEMENT (this “Agreement”) is entered into as of [             ], 2011,
by and between K12 Inc., a Delaware corporation, (the “Company”) and TCV VII, L.P., a Cayman
Islands exempted limited partnership (“Fund”).

RECITALS

A. Fund’s organizational documents require that Fund have and maintain the status of a
“venture capital operating company” as defined in the Department of Labor Regulations, Section
25101.3-101(d) (the “Regulations”).

B. The Regulations require that a venture capital operating company must have direct
contractual rights to participate substantially in or substantially influence the conduct of the
management of its portfolio companies.

C. In order to induce Fund to invest in the Company, the Company has agreed to provide the
rights described herein to Fund in connection with Fund’s purchase of shares of Common Stock of the
Company (“Common Stock”) pursuant to that certain Securities Purchase Agreement dated April 13,
2011 (the “Purchase Agreement”).

NOW, THEREFORE, the parties hereto agree that upon Fund’s purchase of Common Stock from the
Company, Fund will be entitled to the following contractual management rights:

(1) Fund shall be entitled to consult with management of the Company on significant business
issues, including management’s proposed annual and quarterly operating plans;

(2) Fund may examine the books and records of the Company and inspect its facilities and may
request information at reasonable times and intervals concerning the general status of the
Company’s financial condition and operations, provided that access to highly confidential or
proprietary information and facilities need not be provided except to the extent provided to all of
the Company’s investors under the terms of the current financing; and

(3) If Fund is not represented on the Company’s Board of Directors, the Company shall invite
an employee of Fund or of Fund’s affiliates to attend all meetings of its Board of Directors in a
nonvoting observer capacity and, in this respect, shall give such observer timely copies of all
notices, minutes, consents and other materials that it provides to its directors. Such
representative may participate in discussions of matters brought to the Board of Directors.

Fund agrees that any requests for information hereunder shall be made by it to the Company’s
Chief Financial Offer or General Counsel. Fund agrees that any confidential information provided
to or learned by it in connection with its rights under this letter shall be subject to the
confidentiality provisions set forth in the Purchase Agreement.

The rights described herein shall terminate and be of no further force or effect at such time
as the TCV Purchasers (as defined in the Purchase Agreement) and their affiliates no longer own, in
the aggregate, at least 80% of the number of Purchased Shares purchased by the TCV Purchasers
pursuant to the Purchase Agreement.

This Agreement and any disputes arising hereunder or controversies related hereto shall be
governed by and construed in accordance with the internal laws, and not the laws of conflicts, of
the State of Delaware that apply to contracts made and performed entirely within such state.

This Agreement may be executed in one or more counterparts, all of which shall be considered
one and the same agreement, and will become effective when one or more counterparts have been
signed by a party and delivered to the other parties. Copies of executed counterparts transmitted
by telecopy, telefax or other electronic transmission service (including electronic mail) shall be
considered original executed counterparts for purposes of this Agreement, provided that receipt of
copies of such counterparts is confirmed.

* * * * *

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

K12 INC.

a Delaware corporation

By:

Name: Ronald J. Packard

Title: Chief Executive Officer

TCV VII, L.P.

a Cayman Islands Limited Partnership

By: Technology Crossover Management VII, L.P.

Its: General Partner

By: Technology Crossover Management VII, Ltd.

Its: General Partner

By:

Name: Frederic D. Fenton

Title: Authorized Signatory

EXECUTION COPY

MANAGEMENT RIGHTS AGREEMENT

This MANAGEMENT RIGHTS AGREEMENT (this “Agreement”) is entered into as of [             ], 2011, by and
between K12 Inc., a Delaware corporation, (the “Company”) and TCV VII (A), L.P., a Cayman Islands
exempted limited partnership (“Fund”).

RECITALS

A. Fund’s organizational documents require that Fund have and maintain the status of a
“venture capital operating company” as defined in the Department of Labor Regulations, Section
25101.3-101(d) (the “Regulations”).

B. The Regulations require that a venture capital operating company must have direct
contractual rights to participate substantially in or substantially influence the conduct of the
management of its portfolio companies.

C. In order to induce Fund to invest in the Company, the Company has agreed to provide the
rights described herein to Fund in connection with Fund’s purchase of shares of Common Stock of the
Company (“Common Stock”) pursuant to that certain Securities Purchase Agreement dated April 13,
2011 (the “Purchase Agreement”).

NOW, THEREFORE, the parties hereto agree that upon Fund’s purchase of Common Stock from the
Company, Fund will be entitled to the following contractual management rights:

(1) Fund shall be entitled to consult with management of the Company on significant business
issues, including management’s proposed annual and quarterly operating plans;

(2) Fund may examine the books and records of the Company and inspect its facilities and may
request information at reasonable times and intervals concerning the general status of the
Company’s financial condition and operations, provided that access to highly confidential or
proprietary information and facilities need not be provided except to the extent provided to all of
the Company’s investors under the terms of the current financing; and

(3) If Fund is not represented on the Company’s Board of Directors, the Company shall invite
an employee of Fund or of Fund’s affiliates to attend all meetings of its Board of Directors in a
nonvoting observer capacity and, in this respect, shall give such observer timely copies of all
notices, minutes, consents and other materials that it provides to its directors. Such
representative may participate in discussions of matters brought to the Board of Directors.

Fund agrees that any requests for information hereunder shall be made by it to the Company’s
Chief Financial Offer or General Counsel. Fund agrees that any confidential information provided
to or learned by it in connection with its rights under this letter shall be subject to the
confidentiality provisions set forth in the Purchase Agreement.

The rights described herein shall terminate and be of no further force or effect at such time
as the TCV Purchasers (as defined in the Purchase Agreement) and their affiliates no longer own, in
the aggregate, at least 80% of the number of Purchased Shares purchased by the TCV Purchasers
pursuant to the Purchase Agreement.

This Agreement and any disputes arising hereunder or controversies related hereto shall be
governed by and construed in accordance with the internal laws, and not the laws of conflicts, of
the State of Delaware that apply to contracts made and performed entirely within such state.

This Agreement may be executed in one or more counterparts, all of which shall be considered
one and the same agreement, and will become effective when one or more counterparts have been
signed by a party and delivered to the other parties. Copies of executed counterparts transmitted
by telecopy, telefax or other electronic transmission service (including electronic mail) shall be
considered original executed counterparts for purposes of this Agreement, provided that receipt of
copies of such counterparts is confirmed.

* * * * *

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

K12 INC.

a Delaware corporation

By:

Name: Ronald J. Packard

Title: Chief Executive Officer

TCV VII (A), L.P.

a Cayman Islands exempted limited partnership

By: Technology Crossover Management VII, L.P.

Its: General Partner

By: Technology Crossover Management VII, Ltd.

Its: General Partner

By:

Name: Frederic D. Fenton

Title: Authorized Signatory

EXHIBIT E

FORM OF INVESTOR RIGHTS AGREEMENT

EXECUTION COPY

INVESTOR RIGHTS AGREEMENT

Dated as of [______ __], 2011

AMONG

K12 INC.

AND

THE INVESTORS NAMED HEREIN

4

INVESTOR RIGHTS AGREEMENT

THIS INVESTOR RIGHTS AGREEMENT (the “Agreement”) is entered into as of [             ],
2011, by and among K12 Inc., a Delaware corporation (including its successors and permitted
assigns, the “Company”), and the entities listed as “Investors” on the signature pages
hereto (each, an “Investor” and, collectively, the “Investors”).

RECITALS

A. The Company has entered into a Securities Purchase Agreement, dated as of April 13, 2011
(as amended from time to time, the “Purchase Agreement”), with each of the Investors
pursuant to which the Company has sold to the Investors, and the Investors have purchased from the
Company, an aggregate of 4,000,000 shares of the Company’s Common Stock, par value $0.0001 per
share (“Common Stock”).

B. As a condition to each of the Investors’ obligations under the Purchase Agreement, the
Company and the Investors will enter into this Agreement for the purpose of granting certain
registration and other rights to the Investors.

NOW, THEREFORE, in consideration of the covenants and promises set forth herein, and for other
good and valuable consideration, intending to be legally bound hereby the parties agree as follows:

Section 1 Certain Definitions. As used in this Agreement, the capitalized terms
identified in the Preamble and the Recitals shall have the meanings identified therein and the
following terms shall have the following respective meanings:

“Affiliate” of any Person means any Person, directly or indirectly, controlling,
controlled by or under common control with such Person.

“Agreement” shall have the meaning set forth in the Preamble hereof.

“Commission” shall mean the Securities and Exchange Commission or any other federal
agency at the time administering the Securities Act or the Exchange Act.

“Common Stock” shall have the meaning set forth in the Recitals hereof.

“Company” shall have the meaning set forth in the Preamble hereof.

“Company Indemnified Parties” shall have the meaning set forth in Section 8(a)
hereof.

“Effectiveness Period” shall have the meaning set forth in Section 3(b)
hereof.

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, or any
similar successor federal statute, and the rules and regulations of the Commission thereunder, all
as the same shall be in effect from time to time.

“Holder” shall mean (i) any Investor holding Registrable Securities and (ii) any
member or general or limited partner of an Investor or other Person to whom the rights under this
Agreement have been transferred in accordance with Section 11 hereof.

“Holder Indemnified Parties” shall have the meaning set forth in Section 8(b)
hereof.

“Indemnified Party” shall have the meaning set forth in Section 8(c) hereof.

“Indemnifying Party” shall have the meaning set forth in Section 8(c) hereof.

“Investor Shares” shall mean the shares of Common Stock purchased by the Investors
pursuant to the Purchase Agreement.

“Investors” shall have the meaning set forth in the Preamble hereof.

“Long-Form Registration Statement” shall have the meaning set forth in Section
3(a).

“Majority Holders” shall mean the holders of a majority of the Registrable Securities
at any time of determination.

“New Securities” shall have the meaning set forth in Section 2(a) hereof.

“Person” shall mean an individual, corporation, partnership, limited liability
company, joint venture, association, trust, unincorporated organization, other legal entity, or any
government or governmental agency or authority.

“Purchase Agreement” shall have the meaning set forth in the Recitals hereof.

“register”, “registered” and “registration” refer to a registration
effected by preparing and filing a registration statement in compliance with the Securities Act,
and the declaration or ordering of the effectiveness of such registration statement.

“Registrable Securities” shall mean the Investor Shares or other securities issued or
issuable in respect of the Investor Shares upon any stock split, stock dividend, recapitalization,
reclassification, merger, consolidation or similar event; provided, however, that
such securities shall only be treated as Registrable Securities until the earliest of: (w) the
date on which such security has been registered under the Securities Act and disposed of in
accordance with an effective registration statement relating thereto; (x) the date on which such
security has been sold pursuant to Rule 144 and the security is no longer a Restricted Security;
(y) the date on which all Registrable Securities owned by the Holder thereof may be resold without
volume restrictions during any and all three-month periods pursuant to Rule 144; or (z) the date on
which such security is transferred in a transaction pursuant to which the registration rights are
not also assigned in accordance with Section 11 hereof.

“Registration Expenses” shall mean all expenses incurred by the Company in complying
with Section 3 and Section 4 hereof, including all registration, qualification,
listing and filing fees (including fees for filings to be made with and charged by the Financial
Industry Regulatory Authority, Inc. in connection with an Underwritten Take-Down), printing
expenses, escrow fees related to escrow funds established for the Company’s benefit, fees and
disbursements of counsel for the Company, blue sky fees and expenses, fees and expenses charged by
the Company’s independent public accountants, fees and expenses of the Company in connection with
any “road show,” the expense of any special audits required by any such registration;
provided, however, that Registration Expenses shall not be deemed to include any
Selling Expenses.

“Resale Shelf Registration” shall have the meaning set forth in Section 3(a)
hereof.

“Restricted Securities” shall mean the Investor Shares required to bear the legend set
forth in Section 13 hereof.

“Rule 144” shall mean Rule 144 promulgated under the Securities Act and any successor
provision.

“Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder or any similar federal statute and the rules and regulations of
the Commission thereunder, all as the same shall be in effect at the time.

“Selling Expenses” shall mean all underwriting discounts, selling commissions and
stock transfer taxes applicable to the securities registered by the Holders.

“Shelf Registration” shall mean the Resale Shelf Registration or a Subsequent Shelf
Registration, as applicable.

“Short-Form Registration Statement” shall have the meaning set forth in Section
3(a).

“Subsequent Holder Notice” shall have the meaning set forth in Section 3(e)
hereof.

“Subsequent Shelf Registration” shall have the meaning set forth in Section
3(c) hereof.

“Subsidiary” shall mean, with respect to any Person, any corporation, partnership,
limited liability company, association, joint venture or other business entity of which (i) if a
corporation, more than 50% of the total voting power of shares of stock is at the time of
determination entitled (irrespective of whether, at the time, stock of any other class or classes
of such corporation shall have or might have voting power by reason of the happening of any
contingency) to vote in the election of directors, managers or trustees thereof is at the time
owned or controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (ii) if a partnership, limited liability
company, association, joint venture or other business entity, more than 50% of the partnership,
joint venture or other similar ownership interest thereof is at the time of determination owned or
controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a
combination thereof.

“TCV Holder” shall mean any of TCV VII, TCV VII (A), TCV Member Fund or any of their
respective Affiliates who at any time hold capital stock of the Company.

“TCV VII” shall mean TCV VII, L.P., a Cayman Islands exempted limited partnership.

“TCV VII (A)” shall mean TCV VII (A), L.P., a Cayman Islands exempted limited
partnership.

“TCV Member Fund” shall mean TCV Member Fund, L.P., a Cayman Islands exempted limited
partnership.

“Transfer” shall mean any pledge, sale, contract to sell, assignment, transfer or
other disposition.

“Underwritten Take-Down” shall have the meaning set forth in Section 3(f)
hereof.

“Underwritten Take-Down Notice” shall have the meaning set forth in Section
3(f) hereof.

Section 2 Participation Rights.

(a) If the Company proposes to issue or sell any shares of Common Stock or any securities
(including debt securities exchangeable for or convertible into shares of Common Stock) containing
options or rights to acquire any shares of Common Stock (other than as a dividend on the
outstanding shares of Common Stock) or any securities exchangeable for or convertible into Common
Stock (collectively, the “New Securities”), other than in an Exempt Issuance, at least
twenty (20) days prior to such issuance or sale, the Company shall first offer to sell to each TCV
Holder a portion of such New Securities equal to the quotient determined by dividing (x) the number
of shares of Common Stock held by such TCV Holder (assuming conversion of all convertible,
exchangeable or exercisable capital stock, securities, warrants and options) by (y) the total
number of shares of Common Stock then outstanding (assuming conversion of all convertible,
exchangeable or exercisable capital stock, securities, warrants and options, other than unvested
employee stock options and unvested restricted shares). Each TCV Holder shall be entitled to
purchase all or any portion of its allotment of such New Securities at the most favorable price and
on the most favorable terms as such New Securities are to be offered to any other parties. For
purposes of this Agreement, “Exempt Issuance” means any issuance of New Securities (i) as
consideration in connection with the acquisition of another company or business, (ii) pursuant to
an underwritten public offering of debt or equity securities of the Company, (iii) to employees or
consultants or directors of the Company or any of its Subsidiaries pursuant to arrangements
approved by the Company’s board of directors, (iv) upon conversion or exercise of, or in exchange
for, any securities of the Company or any options or other rights to acquire securities of the
Company outstanding on the date hereof or issued hereafter in compliance with the terms of this
Section 2, or (v) pursuant to any stock split, stock dividend, stock combination,
recapitalization or similar transaction that affects all stockholders or holders of any class of
securities (as the case may be) proportionately.

(b) In order to exercise its purchase rights hereunder, a TCV Holder must, within fifteen (15)
days after receipt of written notice from the Company describing in reasonable detail the New
Securities being offered, the purchase price thereof, the payment terms and such TCV Holder’s
percentage allotment, deliver a written notice to the Company notifying the Company of its intent
to exercise its purchase rights pursuant to this Section 2 and as to the amount of New
Securities such TCV Holder desires to purchase, up to the maximum amount calculated pursuant to
Section 2(a). Such notice shall constitute a binding agreement of a TCV Holder to purchase
the amount of New Securities so specified at the price and other terms set forth in the Company’s
notice to it. The failure of a TCV Holder to respond within such fifteen (15) day period shall be
deemed to be a waiver of such TCV Holder’s rights under this Section 2 only with respect to
the offering described in the applicable notice.

(c) Upon the expiration of the ten (10) day exercise period described above, the Company shall
be entitled to sell such New Securities which the TCV Holders have not elected to purchase during
the one hundred and twenty (120) days following such expiration on terms and conditions no more
favorable to the purchasers thereof than those offered to the TCV Holders. Any New Securities
offered or sold by the Company after such one hundred and twenty (120) day period must be reoffered
to the TCV Holders pursuant to the terms of this Section 2.

(d) If a TCV Holder exercises its purchase rights pursuant to this Section 2, the
closing of the purchase of the New Securities with respect to which such right has been exercised
shall take place within thirty (30) days after the giving of notice of such exercise;
provided that if such issuance is subject to regulatory approval, such thirty (30) day
period shall be extended until the expiration of fifteen (15) days after all such approvals have
been received, but in no event later than one hundred and twenty (120) days from the date of the
Company’s initial notice pursuant to this Section 2. At any such closing of the purchase
of New Securities, the Company will deliver the New Securities being acquired by each TCV Holder in
the form of one or more certificates or instruments, as applicable, issued in such TCV Holder’s
name upon receipt by the Company of payment of the full purchase price therefor by or on behalf of
such Purchaser.

(e) Notwithstanding anything to the contrary herein, for purposes of applying this Section
2, a TCV Holder may assign its purchase rights pursuant to this Section 2 to an
investment fund affiliated with such TCV Holder; provided, however, that any such
assignee shall assume all of such TCV Holder’s rights, obligations and agreements under this
Agreement, the Purchase Agreement and the Related Agreements (as defined in the Purchase Agreement)
in connection with such assignment.

(f) The purchase rights set forth in this Section 2 shall terminate upon the first to
occur of either (i) the TCV Holders and their Affiliates no longer beneficially own at least fifty
percent (50%) of the number of Investor Shares acquired by the TCV Holders pursuant to the Purchase
Agreement or (ii) the TCV Holders and their Affiliates no longer beneficially own at least three
percent (3%) of the outstanding Common Stock at the time of determination. Additionally, the
purchase rights set forth in this Section 2 shall not be exercisable by any TCV Holder or its
Affiliates to the extent such exercise and the corresponding purchase of the applicable New
Securities by any TCV Holder or its Affiliates would result in the TCV Holders and their Restricted
Affiliates (as defined in the Purchase Agreement), in the aggregate, having record or beneficial
ownership of more than 24.99% of the Common Stock beneficially owned by all securityholders of the
Company at the time of determination (excluding for purposes of this calculation any compensatory
stock options and/or unvested restricted shares outstanding at the time of determination).

Section 3 Resale Shelf Registration.

(a) The Company shall use its best efforts to file no later than October 1, 2011 a
registration statement covering the sale or distribution from time to time by the Holders, on a
delayed or continuous basis pursuant to Rule 415 of the Securities Act, including by way of an
underwritten offering, block sale or other distribution plan designated by the Majority Holders, of
all of the Registrable Securities (the “Resale Shelf Registration”) and shall use its best
efforts to cause such Resale Shelf Registration to be declared effective by the Commission as
promptly as possible after the filing thereof, but in any event within forty-five (45) days after
the filing of such Resale Shelf Registration with the Commission. Such Resale Shelf Registration
shall be on Form S-3 or on another equivalent form providing for the registration of such
Registrable Securities (a “Short-Form Registration Statement”). If the Company is not
eligible to use a Short-Form Registration Statement by October 1, 2011, the Company shall, upon the
request of the Majority Holders, use its best efforts to file as soon as practicable, and in no
event later than November 15, 2011, or such longer period as agreed by the Majority Holders in
their sole discretion, a Resale Shelf Registration on Form S-1 or another equivalent form (a
“Long-Form Registration Statement”) providing for the registration of such Registrable
Securities from time to time by the Holders on a delayed or continuous basis pursuant to Rule 415
of the Securities Act, and shall use its best efforts to cause such Long-Form Registration
Statement to be declared effective by the Commission as promptly as possible after the filing
thereof, but in any event within forty-five (45) days after the filing of such Long-Form
Registration Statement with the Commission. If the Resale Shelf Registration (or any Subsequent
Shelf Registration Statement (as defined below)) is made on a Long-Form Registration Statement and
the Company becomes eligible to use a Short-Form Registration Statement, the Company shall have the
option, but not the obligation, subject to the prior written consent of the Majority Holders (which
consent shall not be unreasonably withheld or delayed), to convert such Long-Form Registration
Statement to a Short-Form Registration Statement. In the event the Company chooses to exercise
such option, the Company shall promptly inform the Holders that the Company is eligible to use a
Short-Form Registration Statement and notify the Holders that the Company has elected to effectuate
such a conversion, subject to the prior written consent of the Majority Holders (which consent
shall not be unreasonably withheld or delayed). Upon receipt of such consent from the Majority
Holders, the Company shall use its best efforts to effectuate such conversion without undue delay.

(b) Once declared effective, the Company shall, subject to Section 3(h), use its
reasonable best efforts to cause the Resale Shelf Registration to be continuously effective until
such time as there are no longer any Registrable Securities (the “Effectiveness Period”).

(c) If any Shelf Registration ceases to be effective under the Securities Act for any reason
at any time during the Effectiveness Period, the Company shall use its reasonable best efforts to
(i) promptly cause such Shelf Registration to again become effective under the Securities Act
(including obtaining the prompt withdrawal of any order suspending the effectiveness of such Shelf
Registration), and in any event shall use its reasonable best efforts to, within thirty (30) days
of such cessation of effectiveness, amend such Shelf Registration in a manner reasonably expected
to obtain the withdrawal of any order suspending the effectiveness of such Shelf Registration or
(ii) at the option of the Company, promptly file an additional registration statement (a
“Subsequent Shelf Registration”) for an offering to be made on a delayed or continuous
basis pursuant to Rule 415 of the Securities Act registering the resale from time to time by
Holders thereof of all securities that are Registrable Securities as of the time of such filing.
If a Subsequent Shelf Registration is filed, the Company shall use its reasonable best efforts to
(x) cause such Subsequent Shelf Registration to become effective under the Securities Act as
promptly as is reasonably practicable after such filing, but in no event later than the date that
is ninety (90) days after such Subsequent Shelf Registration is filed and (y) keep such Subsequent
Shelf Registration (or another Subsequent Shelf Registration) continuously effective until the end
of the Effectiveness Period. Any such Subsequent Shelf Registration shall be a Registration
Statement on Form S-3 to the extent that the Company is eligible to use such form. Otherwise, such
Subsequent Shelf Registration shall be on another appropriate form and shall provide for the
registration of such Registrable Securities for resale by such Holders in accordance with any
reasonable method of distribution elected by the Holders.

(d) The Company shall supplement and amend any Shelf Registration if required by the rules,
regulations or instructions applicable to the registration form used by the Company for such Shelf
Registration if required by the Securities Act or as reasonably requested by the Majority Holders
then covered by such Shelf Registration.

(e) If a Person becomes a Holder of Registrable Securities after a Shelf Registration becomes
effective under the Securities Act, the Company shall, as promptly as is reasonably practicable
following delivery of written notice to the Company of such Person becoming a Holder and requesting
for its name to be included as a selling securityholder in the prospectus related to the Shelf
Registration (a “Subsequent Holder Notice”), and in any event within fifteen (15) days
after such date:

(i) if required and permitted by applicable law, file with the Commission a supplement to the
related prospectus or a post-effective amendment to the Shelf Registration and any necessary
supplement or amendment to any document incorporated therein by reference and file any other
required document with the Commission so that such Holder is named as a selling securityholder in
the Shelf Registration and the related prospectus in such a manner as to permit such Holder to
deliver a prospectus to purchasers of the Registrable Securities in accordance with applicable law;
provided, however, that if a post-effective amendment is required by the rules and
regulations of the Commission in order to permit resales by such Holder, the Company shall not be
required to file more than one post-effective amendment or a supplement to the related prospectus
for such purpose in any sixty (60) day period;

(ii) if, pursuant to Section 3(e)(i), the Company shall have filed a post-effective
amendment to the Shelf Registration, use its reasonable best efforts to cause such post-effective
amendment to become effective under the Securities Act as promptly as is reasonably practicable,
but in any event by the date that is sixty (60) days after the date such post-effective amendment
is required by this Section 3(e) to be filed; and

(iii) notify such Holder as promptly as is reasonably practicable after the effectiveness
under the Securities Act of any post-effective amendment filed pursuant to clause (i) above.

(f) The Majority Holders may on one (1) occasion after the Resale Shelf Registration becomes
effective deliver a written notice to the Company (the “Underwritten Take-Down Notice”)
specifying that the sale of some or all of the Registrable Securities subject to the Shelf
Registration is intended to be conducted through an underwritten offering (the “Underwritten
Take-Down”). In the event of an Underwritten Take-Down:

(i) The Majority Holders shall have the right to select the managing underwriter or
underwriters to administer the offering; provided, however, that such managing underwriter or
underwriters shall be reasonably acceptable to the Company.

(ii) A sale of Registrable Securities pursuant to the Resale Shelf Registration shall not
count as the one (1) permitted Underwritten Take-Down until the sale has been completed and unless
Holders are able to sell at least eighty percent (80%) of the Registrable Securities requested to
be included and so initially included in such Underwritten Take-Down (calculated exclusive of any
overallotment option of the underwriters thereof).

(iii) Each Holder of Registrable Securities to be included in such Underwritten Take-Down and
the Company shall enter into an underwriting agreement in such customary form as shall have been
negotiated and agreed to by the Company and the Majority Holders with the underwriter or
underwriters selected for such underwriting.

(iv) Notwithstanding any other provision of this Section 3(f), if the managing
underwriter or underwriters of a proposed Underwritten Take-Down advises the Board of Directors of
the Company that in its or their opinion the number of Registrable Securities requested to be
included in such Underwritten Take-Down exceeds the number which can be sold in such Underwritten
Take-Down in light of market conditions, the Registrable Securities included in such Underwritten
Take-Down shall be allocated among the Holders, up to the total number of Registrable Securities
the Holders have indicated in the Underwritten Take-Down Notice will be included in the
Underwritten Take-Down, on a pro rata basis based on the number of Registrable Securities owned by
each such Holder at the time of such determination. To facilitate the allocation of shares in
accordance with the above provisions, the Company or the managing underwriters may round the number
of shares allocated to any Holder or other holder to the nearest 100 shares. If any Holder
disapproves of the terms of any such underwriting, such Holder may elect to withdraw therefrom by
written notice to the Company and the managing underwriter or underwriters; provided,
however, that if a Holder so withdraws, and the Holder’s Registrable Securities so
withdrawn would have enabled Holders to sell at least eighty percent (80%) of the Registrable
Securities initially requested to be included in such Underwritten Take-Down (calculated exclusive
of any overallotment option of the underwriters thereof), the Holders participating in such
Underwritten Take-Down shall reimburse the Company for all fees and expenses incurred by the
Company in connection with any “ road show” therewith.

(g) In the event any Holder requests to participate in a Shelf Registration pursuant to this
Section 3 in connection with a distribution of Registrable Securities to its partners or
members, the Shelf Registration shall in the event such distribution and subsequent resale is
permitted by applicable law provide for resale by such partners or members, if requested by such
Holder.

(h) Notwithstanding any other provision of this Section 3, if the Board of Directors
of the Company has determined in good faith that (i) the disclosure necessary for continued use of
the prospectus and registration statement by the Holders would be materially detrimental to the
Company or (ii) upon receipt of an Underwritten Take-Down Notice, effectuating an Underwritten
Take-Down would be materially detrimental to the Company’s immediate capital raising initiatives as
of such date, the Company shall have the right to suspend the use of the prospectus and the
registration statement covering any Registrable Security or delay the effect of such Underwritten
Take-Down, respectively, for such period of time as its use would be materially detrimental to the
Company or its immediate capital raising initiatives as of such time, as applicable, by delivering
written notice of such suspension to all Holders listed on the Company’s records; provided,
however, that in any 12-month period the Company may exercise the right to such suspension
not more than once and for not more than an aggregate of ninety (90) days, other than routine
blackout periods imposed on the Company’s directors and officers at the end of calendar quarters;
provided, further, that if such suspension occurs after the receipt of an
Underwritten Take-Down Notice, the Majority Holders shall be entitled to withdraw their request for
an Underwritten Take-Down and, if such request is withdrawn, such registration shall not count as
the one (1) permitted Underwritten Take-Down hereunder and the Company shall pay all Registration
Expenses in connection with such requested Underwritten Take-Down reasonably incurred prior to the
date of notice of suspension under this Section 3(h). From and after the date of a notice
of suspension under this Section 3(h), each Holder agrees not to use the prospectus or
registration statement until the earlier of (i) notice from the Company that such suspension has
been lifted or (ii) the day following the ninetieth (90th) day of suspension within any twelve (12)
month period.

Section 4 Company Registration.

(a) Notice of Registration. So long as there are Registrable Securities outstanding,
if at any time or from time to time the Company shall determine to file a registration statement
for an underwritten public offering of its equity securities, whether a primary offering or on
behalf of holders of the Company’s equity securities, or to do an underwriten takedown from an
effective registration statement pursuant to which the resale of the Registrable Securities has
been registered (for the avoidance of doubt, the following will not apply to any
registration statement filed on a Form S-4, Form S-8 or any successor forms), the Company will:

(i) promptly give to each Holder written notice thereof; and

(ii) subject to Section 4(b) below, include in such registration and underwritten
offering (and any related qualification under blue sky laws or other compliance) all the
Registrable Securities specified in a written request or requests made within ten (10) days after
receipt of such written notice from the Company by any Holder.

(b) Underwriting. The right of any Holder to registration pursuant to this
Section 4 shall be conditioned upon such Holder’s participation in such underwriting and
the inclusion of Registrable Securities in the underwriting to the extent provided herein. Each
Holder proposing to distribute its securities through such underwriting shall (together with the
Company and the other holders distributing their securities through such underwriting) enter into
and perform such Holder’s obligations under an underwriting agreement with the managing underwriter
selected for such underwriting by the Company or by the stockholders of the Company who have the
right to select the underwriters (such underwriting agreement to be in the form negotiated by the
Company or such stockholders, as the case may be). Notwithstanding any other provision of this
Section 4, if the managing underwriter or underwriters of a proposed underwritten offering
with respect to which Holders have exercised their piggyback registration rights advise the Board
of Directors of the Company that in its or their opinion the number of Registrable Securities
requested to be included in such offering and all other securities proposed to be sold in such
offering exceeds the number which can be sold in such underwritten offering in light of market
conditions, the Registrable Securities and such other securities to be included in such
underwritten offering shall be allocated as follows: (i) first, (x) in the event such offering was
initiated by the Company, up to the total number of securities that the Company has requested to be
included in such registration and (y) in the event such offering was initiated by the holders of
Company securities (other than the Holders) who as of the date of this Agreement have a contractual
right to demand registration of such securities by the Company, up to the total number of
securities that such holders of such securities have requested to be included in such offering,
(ii) second, and only if all the securities referred to in clause (i) have been included, up to the
total number of securities that the Holders and other holders of securities that have existing
contractual rights to be included in such registration have requested to be included in such
offering (pro rata based upon the number of securities that each of them shall have requested to be
included in such offering) and (iii) third, and only if all the securities referred to in clause
(ii) have been included, all other securities proposed to be included in such offering that, in the
opinion of the managing underwriter or underwriters can be sold without having such adverse effect.
To facilitate the allocation of shares in accordance with the above provisions, the Company or the
managing underwriters may round the number of shares allocated to any Holder or other holder to the
nearest 100 shares. If any Holder disapproves of the terms of any such underwriting, such Holder
may elect to withdraw therefrom by written notice to the Company and the managing underwriter or
underwriters. Any securities excluded or withdrawn from such underwriting shall be withdrawn from
such registration.

(c) Right to Terminate Registration. The Company or the holders of securities who
have caused a registration statement to be filed as contemplated by this Section 4, as the
case may be, shall have the right to have any registration initiated by it or them under this
Section 4 terminated or withdrawn prior to the effectiveness thereof, whether or not any
Holder has elected to include securities in such registration.

Section 5 Limitations on Subsequent Registration Rights. From and after the date
hereof, the Company shall not enter into any agreement granting any holder or prospective holder of
any securities of the Company registration rights with respect to its securities that would
prohibit the performance of the rights granted to the Holders herein, without the consent of the
Majority Holders.

Section 6 Expenses of Registration. Subject to the proviso to the penultimate
sentence of Section 3(f)(iv), all Registration Expenses incurred in connection with any
registration pursuant to Section 3 and Section 4 shall be borne by the Company
whether or not any registration statement is filed or becomes effective. All Selling Expenses
relating to securities registered on behalf of the Holders shall be borne by the Holders of the
registered securities included in such registration pro rata on the basis of the number of shares
so registered.

Section 7 Registration Procedures. In the case of each registration effected by the
Company pursuant to Section 3 and Section 4, the Company will keep each Holder
participating in such registration reasonably informed as to the status thereof and, at its
expense, the Company will:

(a) prepare and file with the Commission a registration statement with respect to such
securities in accordance with the applicable provisions of this Agreement;

(b) prepare and file with the Commission such amendments, including post-effective amendments,
and supplements to such registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the Securities Act with
respect to the disposition of all securities covered by such registration statement and as may be
necessary to keep the registration statement continuously effective for the period set forth in
this Agreement;

(c) furnish to the Holders participating in such registration and to their legal counsel
copies of the registration statement proposed to be filed, and provide such Holders and their legal
counsel the reasonable opportunity to review and comment on such registration statement;

(d) furnish to the Holders participating in such registration and to the underwriters of the
securities being registered such reasonable number of copies of the registration statement,
preliminary prospectus, final prospectus and such other documents as such underwriters may
reasonably request in order to facilitate the public offering of such securities, provided,
however, that the availability of such documentation (other than a preliminary prospectus or final
prospectus in connection with an Underwritten Take-Down) on the SEC’s Electronic Data Gathering,
Analysis, and Retrieval system or such successor system (“EDGAR”) shall satisfy such
delivery requirement hereunder;

(e) use reasonable best efforts to notify each Holder of Registrable Securities covered by
such registration statement at any time when a prospectus relating thereto is required to be
delivered under the Securities Act of the Company’s knowledge of the happening of any event as a
result of which the prospectus included in such registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact required to be stated
therein or necessary to make the statements therein not misleading or incomplete in the light of
the circumstances then existing, and, subject to Section 3(h), at the request of any such
Holder, prepare promptly and furnish to such Holder a reasonable number of copies of a supplement
to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the
purchaser of such shares, such prospectus shall not include an untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary to make the statements
therein not misleading or incomplete in the light of the circumstances then existing, provided,
however, that the availability of such supplement to or an amendment of such prospectus on EDGAR
shall satisfy such delivery requirement hereunder;

(f) use reasonable best efforts to register and qualify the securities covered by such
registration statement under such other securities or blue sky laws of such jurisdictions as shall
be reasonably requested by the Holders; provided, however, that the Company shall
not be required in connection therewith or as a condition thereto to qualify to do business or to
file a general consent to service of process in any such states or jurisdictions;

(g) make available for inspection by any Holder participating in such registration, any
underwriter participating in any disposition pursuant to such registration, and any attorney or
accountant retained by any such Holder or underwriter, all relevant financial and other records,
pertinent corporate documents and properties of the Company, and cause the Company’s officers and
directors to supply all information reasonably requested by any such Holder, underwriter, attorney
or accountant in connection with such registration statement; provided, however,
that such Holder or underwriter shall agree to hold in confidence and trust all information so
provided pursuant to a confidentiality agreement in form and substance customary under the
circumstances;

(h) in the event that the Registrable Securities are being offered in an underwritten public
offering, enter into and perform its obligations under an underwriting agreement in accordance with
the applicable provisions of this Agreement and participate and cooperate with the underwriters in
connection with any road show or marketing activities customary for an underwritten public
offering; and

(i) use reasonable best efforts to furnish, on the date that such Registrable Securities are
delivered to the underwriters for sale, if such securities are being sold through underwriters, (i)
a customary opinion, dated as of such date, of the legal counsel representing the Company for the
purposes of such registration, in form and substance as is customarily given to underwriters in an
underwritten public offering, addressed to the underwriters, if any, and (ii) a letter dated as of
such date, from the independent certified public accountants of the Company, in form and substance
as is customarily given by independent certified public accountants to underwriters in an
underwritten public offering, addressed to the underwriters.

Section 8 Indemnification.

(a) The Company will, with respect to any Registrable Securities as to which registration or
qualification or compliance under applicable blue sky laws has been effected pursuant to this
Agreement, indemnify each Holder, each Holder’s current and former officers, directors, partners
and members, and each Person controlling such Holder within the meaning of Section 15 of the
Securities Act, and each underwriter thereof, if any, and each Person who controls any such
underwriter within the meaning of Section 15 of the Securities Act (collectively, the “Company
Indemnified Parties”), against all expenses, claims, losses, damages and liabilities, joint or
several, (or actions in respect thereof) arising out of or based on any untrue statement (or
alleged untrue statement) of a material fact contained in any registration statement, prospectus,
preliminary prospectus, offering circular or other document, or any amendment or supplement thereto
incident to any such registration, qualification or compliance or based on any omission (or alleged
omission) to state therein a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances in which they were made, not misleading, or any
violation by the Company of any rule or regulation promulgated under the Securities Act, Exchange
Act or state securities laws applicable to the Company in connection with any such registration,
and the Company will reimburse each of the Company Indemnified Parties for any reasonable legal and
any other expenses reasonably incurred in connection with investigating, preparing or defending any
such claim, loss, damage, liability or action, as such expenses are incurred. The indemnity
agreement contained in this Section 8(a) shall not apply to amounts paid in settlement of
any loss, claim, damage, liability or action if such settlement is effected without the consent of
the Company (which consent shall not be unreasonably withheld or delayed), nor shall the Company be
liable to a Holder in any such case for any such loss, claim, damage, liability or action (i) to
the extent that it arises out of or is based upon a violation or alleged violation of any state or
federal law (including any claim arising out of or based on any untrue statement or alleged untrue
statement or omission or alleged omission in the registration statement or prospectus) which occurs
in reliance upon and in conformity with written information furnished expressly for use in
connection with such registration by or on behalf of such Holder or (ii) in the case of a sale
directly by a Holder of Registrable Securities (including a sale of such Registrable Securities
through any underwriter retained by such Holder engaging in a distribution solely on behalf of such
Holder), such untrue statement or alleged untrue statement or omission or alleged omission was
corrected in a final or amended prospectus, and such Holder failed to deliver a copy of the final
or amended prospectus at or prior to the confirmation of the sale of the Registrable Securities to
the Person asserting any such loss, claim, damage or liability in any case in which such delivery
is required by the Securities Act.

(b) Each Holder will, if Registrable Securities held by such Holder are included in the
securities as to which such registration or qualification or compliance under applicable blue sky
laws is being effected, indemnify, severally and not jointly, the Company, each of its directors,
officers, partners and members, each underwriter, if any, of the Company’s securities covered by
such a registration, each Person who controls the Company or such underwriter within the meaning of
Section 15 of the Securities Act, and each other Holder and each of such Holder’s officers,
directors, partners and members and each Person controlling such Holder within the meaning of
Section 15 of the Securities Act (collectively, the “Holder Indemnified Parties”), against
all expenses, claims, losses, damages and liabilities (or actions in respect thereof) arising out
of or based on any untrue statement (or alleged untrue statement) of a material fact contained in
any registration statement, prospectus, preliminary prospectus, offering circular or other
document, or any amendment or supplement thereto incident to any such registration, qualification
or compliance or based on any omission (or alleged omission) to state therein a material fact
required to be stated therein or necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading, or any violation by such Holder of any rule
or regulation promulgated under the Securities Act, Exchange Act or state securities law applicable
to such Holder, and will reimburse each of the Holder Indemnified Parties for any reasonable legal
or any other expenses reasonably incurred in connection with investigating, preparing or defending
any such claim, loss, damage, liability or action, as such expenses are incurred, in each case to
the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or
omission (or alleged omission) is made in such registration statement, prospectus, offering
circular or other document in reliance upon and in conformity with written information furnished to
the Company by such Holder and stated to be specifically for use therein; provided,
however, that in no event shall any indemnity under this Section 8(b) payable by a
Holder exceed the amount by which the net proceeds actually received by such Holder from the sale
of Registrable Securities included in such registration exceeds the amount of any other losses,
expenses, settlements, damages, claims and liabilities that such Holder has been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission or violation.
The indemnity agreement contained in this Section 8(b) shall not apply to amounts paid in
settlement of any loss, claim, damage, liability or action if such settlement is effected without
the consent of the applicable Holder (which consent shall not be unreasonably withheld or delayed),
nor shall the Holder be liable for any such loss, claim, damage, liability or action where such
untrue statement or alleged untrue statement or omission or alleged omission was corrected in a
final or amended prospectus, and the Company or the underwriters failed to deliver a copy of the
final or amended prospectus at or prior to the confirmation of the sale of the Registrable
Securities to the Person asserting any such loss, claim, damage or liability in any case in which
such delivery is required by the Securities Act; provided, however, that the availability of such
corrected final or amended prospectus on EDGAR shall be deemed to have satisfied such delivery
obligation with respect to the Company.

(c) Each party entitled to indemnification under this Section 8 (the “Indemnified
Party”) shall give notice to the party required to provide indemnification (the
“Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any
claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the
defense of any such claim or any litigation resulting therefrom; provided, however,
that counsel for the Indemnifying Party, who shall conduct the defense of such claim or litigation,
shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld or
delayed), and the Indemnified Party may participate in such defense at such party’s expense;
provided, further, however, that an Indemnified Party (together with all
other Indemnified Parties which may be represented without conflict by one counsel) shall have the
right to retain one separate counsel, with the reasonable fees and expenses to be paid by the
Indemnifying Party, if representation of such Indemnified Party by the counsel retained by the
Indemnifying Party would be inappropriate due to conflicting interests between such Indemnified
Party and any other party represented by such counsel in such proceeding. The failure of any
Indemnified Party to give notice as provided herein shall relieve the Indemnifying Party of its
obligations under this Section 8, only to the extent that, the failure to give such notice
is materially prejudicial or harmful to an Indemnifying Party’s ability to defend such action. No
Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent
of each Indemnified Party (which consent shall not be unreasonably withheld or delayed), consent to
entry of any judgment or enter into any settlement which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all
liability in respect to such claim or litigation. The indemnity agreements contained in this
Section 8 shall not apply to amounts paid in settlement of any loss, claim, damage,
liability or action if such settlement is effected without the consent of the Indemnifying Party,
which consent shall not be unreasonably withheld or delayed. The indemnification set forth in this
Section 8 shall be in addition to any other indemnification rights or agreements that an
Indemnified Party may have.

(d) If the indemnification provided for in this Section 8 is held by a court of
competent jurisdiction to be unavailable to an Indemnified Party, other than pursuant to its terms,
with respect to any claim, loss, damage, liability or action referred to therein, then, subject to
the limitations contained in Section 8(e), the Indemnifying Party, in lieu of indemnifying
such Indemnified Party hereunder, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such claim, loss, damage, liability or action in such proportion
as is appropriate to reflect the relative fault of the Indemnifying Party on the one hand and the
Indemnified Party on the other in connection with the actions that resulted in such claims, loss,
damage, liability or action, as well as any other relevant equitable considerations. The relative
fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact related to information supplied by the Indemnifying Party or by
the Indemnified Party and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Company and the Holders agree
that it would not be just and equitable if contribution pursuant to this Section 8(d) were
based solely upon the number of entities from whom contribution was requested or by any other
method of allocation which does not take account of the equitable considerations referred to above
in this Section 8(d). In no event shall any Holder’s contribution obligation under this
Section 8(d) exceed the amount of the net proceeds actually received by such Holder from
the sale of Registrable Securities included in such registration.

(e) No Person guilty of fraudulent misrepresentation (within the meaning of the Securities
Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation.

Section 9 Information by Holders, Etc. The Holder or Holders of Registrable
Securities included in any registration shall furnish to the Company such information regarding
such Holder or Holders and their Affiliates, the Registrable Securities held by them and the
distribution proposed by such Holder or Holders and their Affiliates as the Company may reasonably
request in writing and as shall be required in connection with any registration, qualification or
compliance referred to in this Agreement. It is understood and agreed that the obligations of the
Company under Section 3 and Section 4 are conditioned on the timely provisions of
the foregoing information by such Holder or Holders and, without limitation of the foregoing, will
be conditioned on compliance by such Holder or Holders with the following:

(a) such Holder or Holders will, and will cause their respective Affiliates to, cooperate with
the Company in connection with the preparation of the applicable registration statement, and for so
long as the Company is obligated to keep such registration statement effective, such Holder or
Holders will and will cause their respective Affiliates to, provide to the Company, in writing and
in a timely manner, for use in such registration statement (and expressly identified in writing as
such), all information regarding themselves and their respective Affiliates and such other
information as may be required by applicable law to enable the Company to prepare such registration
statement and the related prospectus covering the applicable Registrable Securities owned by such
Holder or Holders and to maintain the currency and effectiveness thereof;

(b) during such time as such Holder or Holders and their respective Affiliates may be engaged
in a distribution of the Registrable Securities, such Holder or Holders will, and they will cause
their respective Affiliates to, comply with all laws applicable to such distribution, including
Regulation M promulgated under the Exchange Act, and, to the extent required by such applicable
laws, will, and will cause their respective Affiliates to, among other things: (i) not engage in
any stabilization activity in connection with the securities of the Company in contravention of
such laws; (ii) distribute the Registrable Securities acquired by it solely in the manner described
in the applicable registration statement; and (iii) cause to be furnished to each agent or
broker-dealer to or through whom such Registrable Securities may be offered, or to the offeree if
an offer is made directly by such Holder or Holders or their respective Affiliates, such copies of
the applicable prospectus (as amended and supplemented to such date) and documents incorporated by
reference therein as may be required by such agent, broker-dealer or offeree, provided, however,
that the Company shall have provided such Holder or Holders with an adequate number of copies
thereof; and

(c) on receipt of written notice from the Company of the happening of any of the events
specified in Section 3(h) or that requires the suspension by such Holder or Holders and
their respective Affiliates of the distribution of any of the Registrable Securities owned by such
Holder or Holders, then such Holders shall, and they shall cause their respective Affiliates to,
cease offering or distributing the Registrable Securities owned by such Holder or Holders until the
offering and distribution of the Registrable Securities owned by such Holder or Holders may
recommence in accordance with the terms hereof and applicable law.

Section 10 Rule 144 Reporting. With a view to making available the benefits of
certain rules and regulations of the Commission which may at any time permit the sale of the
Restricted Securities to the public without registration, the Company agrees that, for so long as a
Holder owns Registrable Securities, the Company will use its reasonable best efforts to:

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

(b) file with the Commission in a timely manner all reports and other documents required of
the Company under the Securities Act and the Exchange Act; and

(c) so long as a Holder owns any Restricted Securities, to furnish to the Holder forthwith
upon written request a written statement by the Company as to its compliance with the reporting
requirements of Rule 144, the Securities Act and the Exchange Act, a copy of the most recent annual
or quarterly report of the Company, and such other reports of the Company filed pursuant to the
requirements of Section 13 or 15(d) of the Exchange Act a Holder may reasonably request in availing
itself of any rule or regulation of the Commission allowing a Holder to sell any such securities
without registration; provided, however, the availability of any such reports on EDGAR shall
satisfy the Company’s requirement to furnish such reports hereunder.

Section 11 Transfer of Registration Rights. The rights to cause the Company to
register securities granted to a Holder under this Agreement may be assigned to a transferee or
assignee in connection with any transfer or assignment of Registrable Securities by such party;
provided, however, that (a) such transfer may otherwise be effected in accordance
with applicable securities laws, (b) prior written notice of such assignment is given to the
Company, (c) such transferee or assignee (i) acquires from such Holder at least 100,000 Registrable
Securities (as adjusted for any stock dividends paid in Registrable Securities, and combinations,
stock splits, recapitalizations and the like each with respect to shares of Registrable
Securities), (ii) is an Affiliate of such Holder, (iii) is a general or limited partner or member
of such Holder, (iv) is a member of a limited liability company that is a general or limited
partner or member of such Holder, (v) is a retired partner of any of the foregoing, or (vi) is a
spouse, ancestor, lineal descendant or sibling of any of the foregoing who acquires Registrable
Securities by gift, will or intestate succession, and (d) such transferee or assignee agrees in
writing to be bound by, and subject to, this Agreement as a Holder pursuant to a written instrument
in form and substance reasonably acceptable to the Company. All shares or Registrable Securities
transferred by affiliated Persons, shall be aggregated together for purposes of determining the
availability of any rights in this Section 11.

Section 12 Termination of Rights. The rights of any particular Holder to cause the
Company to register securities under Section 3 and Section 4 shall terminate with
respect to such Holder upon the date upon which all of such Holder’s shares are no longer
Registrable Securities.

Section 13 Securities Law Legend.

(a) Each certificate representing the Investor Shares (unless otherwise permitted by the
provisions of Section 13(b) below) shall be stamped or otherwise imprinted with a legend in
the following form (in addition to any legend required under applicable state securities laws):

“THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED, TRANSFERRED OR OTHERWISE
DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT.”

(b) Each Holder shall comply in all respects with the provisions of this Section
13(b). Prior to any proposed Transfer of any Restricted Securities, unless a registration
statement is in effect under the Securities Act covering the proposed Transfer, a Holder shall give
written notice to the Company of such Holder’s intention to effect such Transfer. Each such notice
shall describe the manner and circumstances of the proposed Transfer in sufficient detail, and
shall be accompanied by either (i) an opinion of legal counsel reasonably satisfactory to the
Company to the effect that the proposed Transfer of the Restricted Securities may be effected
without registration under the Securities Act, (ii) a “no action” letter from the Commission to the
effect that the Transfer of such securities without registration will not result in a
recommendation by the staff of the Commission that action be taken with respect thereto or (iii)
such other evidence reasonably satisfactory to counsel to the Company that such Transfer of the
Restricted Securities may be effected without registration under the Securities Act, whereupon such
Investor shall be entitled to Transfer such Restricted Securities in accordance with the terms of
the notice delivered by such Investor to the Company. Notwithstanding the foregoing, the Company
will not require such a notice or legal opinion or “no action” letter or such other evidence (x) in
any transaction in compliance with Rule 144, (y) in any transaction in which a Holder that is a
corporation distributes Restricted Securities solely to its majority owned subsidiaries or
Affiliates for no consideration or (z) in any transaction in which a Holder that is a partnership
or limited liability company distributes Restricted Securities solely to its Affiliates (including
affiliated fund partnerships), or partners or members of such Holder or its Affiliates for no
consideration (it being understood that a Holder may be required to satisfy certain requirements of
the Company’s transfer agent in order to effect such a Transfer pursuant to the foregoing clauses
(x), (y) and (z)). Each certificate evidencing the Restricted Securities transferred shall bear
the restrictive legend set forth in Section 13(a) above, except that such certificate shall
not bear the restrictive legend if such legend is not required in order to establish compliance
with any provisions of the Securities Act. Upon the request of a Holder of a certificate bearing
such restrictive legend and, if necessary, the appropriate evidence as required by clause (i), (ii)
or (iii) of the third sentence of this Section 13(b), the Company shall remove such
restrictive legend from such certificate and from the certificate to be issued to the applicable
transferee if such legend is not required in order to establish compliance with any provisions of
the Securities Act.

Section 14 Miscellaneous.

14.1. Counterparts. This Agreement may be executed in one or more counterparts, all
of which shall be considered one and the same agreement, and will become effective when one or more
counterparts have been signed by a party and delivered to the other parties. Copies of executed
counterparts transmitted by telecopy, telefax or other electronic transmission service (including
electronic mail) shall be considered original executed counterparts for purposes of this
Section 14.1, provided that receipt of copies of such counterparts is confirmed.

14.2. Governing Law; Waiver of Jury Trial.

(a) This Agreement and any disputes arising hereunder or controversies related hereto shall be
governed by and construed in accordance with the internal laws, and not the laws of conflicts, of
the State of New York that apply to contracts made and performed entirely within such state. The
parties hereto hereby submit to the non-exclusive jurisdiction of the federal and state courts in
the Borough of Manhattan in The City of New York in any suit or proceeding arising out of or
relating to this Agreement or the transactions contemplated hereby. The parties hereto irrevocably
and unconditionally waive any objection to the laying of venue of any suit or proceeding arising
out of or relating to this Agreement or the transactions contemplated hereby in federal and state
courts in the Borough of Manhattan in the City of New York and irrevocably and unconditionally
waive and agree not to plead or claim in any such court that any such suit or proceeding in any
such court has been brought in an inconvenient forum.

(b) Waiver of Jury Trial. EACH PARTY HERETO, FOR ITSELF AND ITS AFFILIATES, HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ALL RIGHT
TO TRIAL BY JURY IN ANY ACTION, SUIT OR OTHER PROCEEDING (WHETHER BASED ON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR RELATING TO THE ACTIONS OF THE PARTIES HERETO OR THEIR RESPECTIVE
AFFILIATES PURSUANT TO THIS AGREEMENT OR IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR
ENFORCEMENT HEREOF.

14.3. Entire Agreement; No Third Party Beneficiary. This Agreement, the Purchase
Agreement and the Related Agreements (as defined in the Purchase Agreement) contain the entire
agreement by and among the parties with respect to the subject matter hereof and all prior
negotiations, writings and understandings relating to the subject matter of this Agreement,
including the term sheet dated March 16, 2011 between the Company, TCV VII and TCV VII (A), are
merged in and are superseded and canceled by, this Agreement, the Purchase Agreement and the
Related Agreements. Except as provided in Section 8, this Agreement is not intended to
confer upon any Person not a party hereto (or their successors and permitted assigns) any rights or
remedies hereunder.

14.4. Expenses. Except as provided in Section 6, all fees, costs and expenses
incurred in connection with this Agreement and the transactions contemplated hereby, including
accounting and legal fees shall be paid by the party incurring such expenses.

14.5. Notices. All notices and other communications hereunder will be in writing and
given by (a) personal delivery, (b) certified or registered mail, return receipt requested, (c)
nationally recognized overnight delivery service, such as Federal Express, (d) facsimile,
with confirmation of transmission by the transmitting equipment, or (e) electronic mail, provided
the relevant computer record indicates a full and successful transmission, in each case to the
party to whom it is given at such party’s physical address, facsimile number or electronic mail
address set forth below or such other physical address, facsimile number or electronic mail address
as such party may hereafter specify by notice to the other parties hereto given in accordance
herewith. Any such notice or other communication shall be deemed to have been given as of the date
so personally delivered or transmitted by facsimile or electronic mail transmission, on the next
business day when sent by overnight delivery services or five (5) days after the date so mailed if
by certified or registered mail.

If to the Company, to:

K12 Inc.

2300 Corporate Park Drive

Herndon, VA 20171

Attention: General Counsel

Fax No.: (703) 483-7496

Email: hpolsky@k12.com

with a copy (which shall not constitute notice) to:

Latham & Watkins LLP

555 Eleventh Street, N.W.

Suite 1000

Washington, DC 20004

Attention: William P. O’Neill

Fax No.: (202) 637-2201

Email: william.o’neill@lw.com

If to the Investors, to:

Technology Crossover Ventures

528 Ramona Street

Palo Alto, CA 94301

Attention: Carla S. Newell, Frederic D. Fenton

Fax No.: (650) 614-8222

Email: cnewell@tcv.com, rfenton@tcv.com

with a copy (which shall not constitute notice) to:

Kirkland & Ellis LLP

300 North LaSalle Street

Chicago, IL 60654

Attention: Stephen L. Ritchie, P.C.

Fax No.: (312) 862-2200

Email: stephen.ritchie@kirkland.com

14.6. Successors and Assigns. This Agreement will be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted assigns. Any purported
assignment or delegation in violation of this Agreement shall be null and void ab initio.

14.7. Headings. The Section, Article and other headings contained in this Agreement
are inserted for convenience of reference only and will not affect the meaning or interpretation of
this Agreement.

14.8. Amendments and Waivers. This Agreement may not be modified or amended except by
an instrument or instruments in writing signed by the Company and the Majority Holders at the time
of such amendment. Any party hereto may, only by an instrument in writing, waive compliance by any
other party or parties hereto with any term or provision hereof on the part of such other party or
parties hereto to be performed or complied with. No failure or delay of any party in exercising
any right or remedy hereunder shall operate as a waiver thereof, nor will any single or partial
exercise of any right or power, or any abandonment or discontinuance of steps to enforce such right
or power, preclude any other or further exercise thereof or the exercise of any other right or
power. The waiver by any party hereto of a breach of any term or provision hereof shall not be
construed as a waiver of any subsequent breach. The rights and remedies of the parties hereunder
are cumulative and are not exclusive of any rights or remedies that they would otherwise have
hereunder.

14.9. Interpretation; Absence of Presumption.

(a) For the purposes hereof: (i) words in the singular shall be held to include the plural
and vice versa and words of one gender shall be held to include the other gender as the context
requires; (ii) the terms “hereof,” “herein,” and “herewith” and words of similar import shall,
unless otherwise stated, be construed to refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Section and paragraph references are to the Sections
and paragraphs in this Agreement unless otherwise specified; (iii) the word “including” and words
of similar import when used in this Agreement shall mean “including, without limitation,” unless
the context otherwise requires or unless otherwise specified; and (iv) the word “or” shall not
be exclusive.

(b) With regard to each and every term and condition of this Agreement, the parties hereto
understand and agree that the same have or has been mutually negotiated, prepared and drafted, and
if at any time the parties hereto desire or are required to interpret or construe any such term or
condition, no consideration will be given to the issue of which party hereto actually prepared,
drafted or requested any term or condition of this Agreement.

14.10. Severability. Any provision hereof that is held to be invalid, illegal or
unenforceable in any respect by a court of competent jurisdiction, shall be ineffective only to the
extent of such invalidity, illegality or unenforceability, without affecting in any way the
remaining provisions hereof, provided, however, that the parties will attempt in
good faith to reform this Agreement in a manner consistent with the intent of any such ineffective
provision for the purpose of carrying out such intent.

14.11. Rights of Holders. Each party to this Agreement shall have the absolute right
to exercise or refrain from exercising any right or rights that such party may have by reason of
this Agreement, including the right to consent to the waiver or modification of any obligation
under this Agreement, and such party shall not incur any liability to any other party or other
holder of any securities of the Company as a result of exercising or refraining from exercising any
such right or rights.

[Signature pages follow]

5

The parties have caused this Investor Rights Agreement to be executed as of the date first
above written.

COMPANY:

K12 INC.

By:

Name: Ronald J. Packard

Title: Chief Executive Officer

INVESTORS:

TCV VII, L.P.

By: Technology Crossover Management VII, L.P.

Its: General Partner

By: Technology Crossover Management VII, Ltd.

Its: General Partner

By:

Name: Frederic D. Fenton

Title: Authorized Signatory

TCV VII (A), L.P.

By: Technology Crossover Management VII, L.P.

Its: General Partner

By: Technology Crossover Management VII, Ltd.

Its: General Partner

By:

Name: Frederic D. Fenton

Title: Authorized Signatory

TCV MEMBER FUND, L.P.

By: Technology Crossover Management VII, Ltd.

Its: General Partner

By:

Name: Frederic D. Fenton

Title: Authorized Signatory

EXHIBIT F

FORM OF OPINION OF COMPANY COUNSEL

April [?], 2011

To the Purchasers party to the Securities Purchase Agreement
dated as of April [?], 2011 among K12 Inc. and such
Purchasers

	 	 	 	Re: Sale and Issuance of K12 Inc. Common Stock

Ladies and Gentlemen:

We have acted as special counsel to K12 Inc., a Delaware corporation (the “Company”), in
connection with the issuance and sale on the date hereof of 4,000,000 shares (the “Shares”) of the
common stock, par value $0.0001 per share, of the Company (the “Common Stock”) pursuant to that
certain Securities Purchase Agreement dated as of April [?], 2011 (the “Purchase Agreement”) among
the Company and the purchasers named therein (the “Purchasers”). This letter is furnished pursuant
to Section 5.10 of the Purchase Agreement.

As such counsel, we have examined such matters of fact and questions of law as we have
considered appropriate for purposes of this letter, except where a specified fact confirmation
procedure is stated to have been performed (in which case we have with your consent performed the
stated procedure). We have examined, among other things, the following:

(a) The Purchase Agreement;

(b) The Investor Rights Agreement dated as of April [?], 2011, by and among the Company
and the investors named therein (the “Investor Rights Agreement,” and together with the
Purchase Agreement, the “Transaction Documents”);

(c) The Third Amended and Restated Certificate of Incorporation of the Company filed
with the Secretary of State of the State of Delaware on December 18, 2007, the Amended and
Restated Bylaws of the Company dated December 18, 2007 and the Certificate of Designations,
Preferences and Relative and Other Special Rights of Series A Special Stock filed with the
Secretary of State of the State of Delaware on July 23, 2010 (collectively, the “Governing
Documents”) and certain resolutions of the Board of Directors of the Company.

Except as otherwise stated herein, as to factual matters we have, with your consent, relied
upon the foregoing, and upon oral and written statements and representations of officers and other
representatives of the Company and others, including the representations and warranties of the
Company in the Transaction Documents. We have not independently verified such factual matters.

Except as otherwise stated herein, we are opining as to the effect on the subject transaction
only of (a) the federal laws of the United States, (b) in numbered paragraphs 3, 4(ii) and 4(iii)
of this letter, the internal laws of the State of New York, and (c) in numbered paragraphs 1, 2,
4(i), 4(ii), 4(iii) and 5 of this letter, the Delaware General Corporation Law (the “DGCL”),
and we express no opinion with respect to the applicability thereto, or the effect thereon,
of the laws of any other jurisdiction or in the case of Delaware, any other laws, or as to any
matters of municipal law or the laws of any local agencies within any state. Except as otherwise
stated herein, our opinions are based upon our consideration of only those statutes, rules and
regulations which, in our experience, are normally applicable to the sales of shares of common
stock in a private placement.

Subject to the foregoing and the other matters set forth herein, as of the date hereof:

1. The Company is a corporation under the DGCL. With your consent, based solely on
certificates from public officials, we confirm that the Company is validly existing and in good
standing under the laws of the State of Delaware.

2. The execution, delivery and performance of the Transaction Documents have been duly
authorized by all necessary corporate action of the Company, and the Transaction Documents have
been duly executed and delivered by the Company.

3. The Transaction Documents constitute legally valid and binding obligations of the
Company, enforceable against the Company in accordance with their respective terms.

4. The execution and delivery of the Transaction Documents by the Company, and the issuance
and sale of the Shares by the Company to the Purchasers pursuant to the Purchase Agreement do
not on the date hereof:

(i) violate the provisions of the Governing Documents,

(ii) violate any federal or New York statute, rule or regulation applicable to the
Company or the DGCL, or

(iii) require any consents, approvals, or authorizations to be obtained by the Company
from, or any registrations, declarations or filings to be made by the Company with, any
governmental authority under any federal or New York statute, rule or regulation applicable
to the Company or the DGCL on or prior to the date hereof that have not been obtained or
made.

5. The Shares to be issued and sold by the Company pursuant to the Purchase Agreement have
been duly authorized by all necessary corporate action of the Company and, when issued to and
paid for by the Purchasers in accordance with the terms of the Purchase Agreement, will be
validly issued, fully paid and nonassessable and free of preemptive rights arising from the
Governing Documents or the DGCL.

6. No registration of the Shares under the Securities Act of 1933, as amended is required
for the purchase of the Shares by the Purchasers in the manner contemplated by the Purchase
Agreement. We express no opinion, however, as to when or under what circumstances any Shares
initially sold to the Purchasers may be reoffered or resold.

Our opinions are subject to: (i) the effect of bankruptcy, insolvency, reorganization,
fraudulent transfer, moratorium or other similar laws relating to or affecting the rights or
remedies of creditors; (ii) the effect of general principles of equity, whether considered in a
proceeding in equity or at law (including the possible unavailability of specific performance or
injunctive relief), concepts of materiality, reasonableness, good faith and fair
dealing, and the discretion of the court before which a proceeding is brought; (iii) the invalidity
under certain circumstances under law or court decisions of provisions for the indemnification of
or contribution to a party with respect to a liability where such indemnification or contribution
is contrary to public policy; and (iv) we express no opinion with respect to (a) consents to, or
restrictions upon, governing law, jurisdiction, venue, arbitration, remedies, or judicial
relief; (b) advance waivers of claims, defenses, rights granted by law, notice,
opportunity for hearing, evidentiary requirements, statutes of limitation, trial by jury or at law,
or other procedural rights; (c) waivers of broadly or vaguely stated rights; (d) any provision for
exclusivity, election or cumulation of rights or remedies; (e) any provision authorizing or
validating conclusive or discretionary determinations; (f) any provision for the payment of
attorneys’ fees where such payment is contrary to law or public policy; (g) provisions prohibiting,
restricting, or requiring consent to assignment or transfer of any right or property; (h) proxies,
powers and trusts; (i) any provision for liquidated damages, default interest, late charges,
monetary penalties, make-whole premiums or other economic remedies to the extent such provisions
are deemed to constitute a penalty; and (j) the severability, if invalid, of provisions to the
foregoing effect.

We express no opinion or confirmation as to federal or state securities laws (except as set
forth in paragraph 6 as to federal securities laws), tax laws, antitrust or trade regulation laws,
insolvency or fraudulent transfer laws, antifraud laws, compliance with fiduciary duty
requirements, pension or employee benefit laws, usury laws, environmental laws, margin regulations,
FINRA rules, or stock exchange rules (without limiting other laws excluded by customary practice).
With your consent, for purposes of the opinion rendered in paragraph 6, we have assumed that the
representations and agreements made by each of the Company and the Purchasers contained in the
Purchase Agreement are accurate and have been and will be complied with.

With your consent, we have assumed (a) that the Transaction Documents have been duly
authorized, executed and delivered by the parties thereto other than the Company (b) that the
Transaction Documents constitute legally valid and binding obligations of the parties thereto other
than the Company, enforceable against each of them in accordance with their respective terms, and
(c) that the status of the Transaction Documents as legally valid and binding obligations of the
parties is not affected by any (i) breaches of, or defaults under, agreements or instruments, (ii)
violations of statutes, rules, regulations or court or governmental orders, or (iii) failures to
obtain required consents, approvals or authorizations from, or make required registrations,
declarations or filings with, governmental authorities, provided that we make no such assumption to
the extent we have specifically opined as to such matters with respect to the Company herein.

This letter is furnished only to you in your capacity as purchasers under the Purchase
Agreement and is solely for your benefit in connection with the transactions referenced in the
first paragraph. This letter may not be relied upon by you for any other purpose, or furnished to,
assigned to, quoted to or relied upon by any other person, firm or other entity for any purpose
(including any person, firm or other entity that acquires Shares or any interest therein from any
of the Purchasers), without our prior written consent, which may be granted or withheld in our sole
discretion.

Very truly yours,

DRAFT

6

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