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                                                                     EXHIBIT 4.2

                          ARISTOTLE PUBLISHING, INC.

                          INVESTORS' RIGHTS AGREEMENT

                              SEPTEMBER 17, 1999
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                               TABLE OF CONTENTS

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                                                                            Page
<S>                                                                         <C>
1. Registration Rights ......................................................  1
         1.1 Definitions ....................................................  1
         1.2 Request for Registration .......................................  2
         1.3 Company Registration ...........................................  3
         1.4 Form-3 Registration ............................................  5
         1.5 Obligations of the Company .....................................  6
         1.6 Information from Holder ........................................  6
         1.7 Expenses of Registration .......................................  7
         1.8 Delay of Registration ..........................................  7
         1.9 Indemnification ................................................  7
         1.10 Reports Under Securities Exchange Act of 1934 .................  9
         1.11 Assignment of Registration Rights ............................. 10
         1.12 Limitations on Subsequent Registration Rights ................. 10
         1.13 "Market Stand-Off' Agreement .................................. 10
         1.14 Termination of Registration Rights ............................ 11

2. Covenants of the Company ................................................. 11
         2.1 Delivery of Financial Statement ................................ 11
         2.2 Inspection ..................................................... 12
         2.3 Termination of Information and Inspection Covenants............. 12
         2.4 Right of First Offer ........................................... 12
         2.5 Board of Directors ............................................. 13
         2.6 Observer Rights ................................................ 14
         2.7 Termination of Certain Covenants ............................... 15
         2.8 Confidentiality ................................................ 15

3.  Miscellaneous ........................................................... 15
         3.1 Successors and Assigns ......................................... 15
         3.2 Governing Law .................................................. 15
         3.3 Counterparts ................................................... 15
         3.4 Titles and Subtitles ........................................... 16
         3.5 Notices ........................................................ 16
         3.6 Expenses ....................................................... 16
         3.7 Entire Agreement: Amendments and Waivers ....................... 16
         3.8 Severability ................................................... 16
         3.9 Aggregation of Stock ........................................... 16
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                          INVESTORS' RIGHTS AGREEMENT


         THIS INVESTORS' RIGHTS AGREEMENT is made as of the 17th day of
September, 1999, by and among Aristotle Publishing, Inc., a Delaware corporation
(the "Company") the investors listed on Schedule A hereto, each of which is
herein referred to as an "Investor" and the holders of Common Stock listed on
Schedule B hereto, each of which is herein referred to as a "Founder."

                                   RECITALS

         WHEREAS, the Company and the Investors are parties to the Series A
Preferred Stock Purchase Agreement of even date herewith (the "Series A
Agreement");

         WHEREAS, in order to induce the Company and the Founders to approve the
issuance of the Series A Preferred Stock and to induce the Investors to invest
funds in the Company pursuant to the Series A Agreement, the Investors, the
Founders and the Company hereby agree that this Agreement shall govern the
rights of the Investors and the Founders to cause the Company to register shares
of Common Stock issued or issuable to them and certain other matters as set
forth herein;

         NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

         1.    Registration Rights. The Company covenants and agrees as follows:
               -------------------

               1.1    Definitions. For purposes of this Section 1:

                      (a)  The term "Act" means the Securities Act of 1933, as
amended.

                      (b)  The term "Form S-3" means such form under the Act as
in effect on the date hereof or any registration form under the Act subsequently
adopted by the SEC that permits inclusion or incorporation of substantial
information by reference to other documents filed by the Company with the SEC.

                      (c)  The term "Holder" means any person owning or having
the right to acquire Registrable Securities or any assignee thereof in
accordance with Section 1.11 hereof.

                      (d)  The term "Initial Offering" means the Company's first
firm commitment underwritten public offering of its Common Stock under the Act.

                      (e)  The term "1934 Act" means the Securities Exchange Act
of 1934, as amended.

                      (f)  The term "register," "registered," and "registration"
refer to a registration effected by preparing and filing a registration
statement or similar document in
<PAGE>

compliance with he Act, and the declaration or ordering of effectiveness of such
registration statement or document.

                      (g)  The term "Registrable Securities" means (i) the
Common Stock issuable or issued upon conversion of the Series A Preferred Stock,
and (ii) any Common Stock of the Company issued as (or issuable upon the
conversion or exercise of any warrant, right or other security that is issued
as) a dividend or other distribution with respect to, or in exchange for, or in
replacement of, the shares referenced in (i) above, excluding in all cases,
however, any Registrable Securities sold by a person to the public either
pursuant to Rule 144 or in a transaction in which his rights under this Section
1 are not assigned.

                      (h)  The number of shares of "Registrable Securities"
outstanding shall be determined by the number of shares of Common Stock
outstanding that are, and the number of shares of Common Stock issuable pursuant
to then exercisable or convertible securities that are, Registrable Securities.

                           (i)  The term "SEC" shall mean the Securities and
Exchange Commission.

              1.2     Request for Registration.
                      ------------------------

                      (a)   Subject to the conditions of this Section 1.2, if
the Company shall receive at any time after the earlier of (i) two (2) years
after the date of this Agreement or (ii) six (6) months after the effective date
of the Initial Offering, a written request from the Holders of twenty-five
percent (25%) or more of the Registrable Securities then outstanding (the
"Initiating Holders") that the Company file a registration statement under the
Act covering the registration of Registrable Securities with an anticipated
aggregate offering price of at least $5,000,000, then the Company shall, within
twenty (20) days of the receipt thereof, give written notice of such request to
all Holders, and subject to the limitations of this Section 1.2, use best
efforts to effect, as soon as practicable, the registration under the Act of all
Registrable Securities that the Holders request to be registered in a written
request received by the Company within twenty (20) days of the mailing of the
Company's notice pursuant to this Section 1.2(a).

                      (b)   If the Initiating Holders intend to distribute the
Registrable Securities covered by their request by means of an underwriting,
they shall so advise the Company as a part of their request made pursuant to
this Section 1.2 and the Company shall include such information in the written
notice referred to in Section 1.2(a). In such event the right of any Holder to
include its Registrable Securities in such registration shall be conditioned
upon such Holder's participation in such underwriting and the inclusion of such
Holder's Registrable Securities in the underwriting (unless otherwise mutually
agreed by a majority in interest of the Initiating Holders and such Holder) to
the extent provided herein. All Holders proposing to distribute their securities
through such underwriting shall enter into an underwriting agreement in
customary form with the underwriter or underwriters selected for such
underwriting by a majority in interest of the Initiating Holders (which
underwriter or underwriters shall be reasonably acceptable to the Company).
Notwithstanding any other provision of this Section 1.2, if the underwriter
advises the Company that marketing factors require a limitation of the number

                                       2
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of securities underwritten (including Registrable Securities), then the Company
shall so advise all Holders of Registrable Securities that would otherwise be
underwritten pursuant hereto, and the number of shares that may be included in
the underwriting shall be allocated to the Holders of such Registrable
Securities on a pro rata basis based on the number of Registrable Securities
held by all such Holders (including the Initiating Holders). Any Registrable
Securities excluded or withdrawn from such underwriting shall be withdrawn from
the registration.

                      (c)  The Company shall not be required to effect a
registration pursuant to this Section 1.2:


                           (i)   in any particular jurisdiction in which the
Company would be required to execute a general consent to service of process in
effecting such registration, unless the Company is already subject to service in
such jurisdiction and except as may be required under the Act; or

                           (ii)  after the Company has effected three (3)
registrations pursuant to this Section 1.2, and such registrations have been
declared or ordered effective; or

                           (iii) during the period starting with the date sixty
(60) days prior to the Company's good faith estimate of the date of the filing
of, and ending on a date one hundred eighty (180) days following the effective
date of, a Company-initiated registration subject to Section 1.3 below, provided
that the Company is actively employing in good faith all reasonable efforts to
cause such registration statement to become effective; or

                           (iv)  if the Initiating Holders propose to dispose of
Registrable Securities that may be registered on Form S-3 pursuant to Section
1.4 hereof; or

                           (v)   if the Company shall furnish to Holders
requesting a registration statement pursuant to this Section 1.2, a certificate
signed by the Company's Chief Executive Officer Chairman of the Board stating
that in the good faith judgment of the Board of Directors of the Company, it
would be seriously detrimental to the Company and its shareholders for such
registration statement to be effected at such time, in which event the Company
shall have the right to defer such filing for a period of not more than one
hundred twenty (120) days after receipt of the request of the Initiating
Holders, provided that such right to delay a request shall be exercised by the
Company not more than once in any twelve (12)-month period.

               1.3    Company Registration.
                      --------------------

                      (a)  If (but without any obligation to do so) the Company
proposes to register (including for this purpose a registration effected by the
Company for shareholders other than the Holders) any of its stock or other
securities under the Act in connection with the public offering of such
securities (other than a registration relating solely to the sale of securities
to participants in a Company stock plan, a registration relating to a corporate
reorganization or other transaction under Rule 145 of the Act, a registration on
any form that does not include substantially the same information as would be
required to be included in a registration statement covering the sale of the
Registrable Securities, or a registration in which the only Common Stock

                                       3
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being registered is Common Stock issuable upon conversion of debt securities
that are also being registered), the Company shall, at such time, promptly give
each Holder written notice of such registration. Upon the written request of
each Holder given within twenty (20) days after mailing of such notice by the
Company in accordance with Section 3.5, the Company shall, subject to the
provisions of Section 1.3(c), use all reasonable efforts to cause to be
registered under the Act all of the Registrable Securities that each such Holder
has requested to be registered.

                      (b)  Right to Terminate Registration. The Company shall
                           -------------------------------
have the right to terminate or withdraw any registration initiated by it under
this Section 1.3 prior to the effectiveness of such registration whether or not
any Holder has elected to include securities in such registration. The expenses
of such withdrawn registration shall be home by the Company in accordance with
Section 1.7 hereof.

                      (c)  Underwriting Requirements. In connection with any
                           -------------------------
offering involving an underwriting of shares of the Company's capital stock, the
Company shall not be required under this Section 1.3 to include any of the
Holders' securities in such underwriting unless they accept the terms of the
underwriting as agreed upon between the Company and the underwriters selected by
it (or by other persons entitled to select the underwriters) and enter into an
underwriting agreement in customary form with an underwriter or underwriters
selected by the Company, and then only in such quantity as the underwriters
determine in their sole discretion will not jeopardize the success of the
offering by the Company. If the total amount of securities, including
Registrable Securities, requested by shareholders to be included in such
offering exceeds the amount of securities sold other than by the Company that
the underwriters determine in their sole discretion is compatible with the
success of the offering, then the Company shall be required to include in the
offering only that number of such securities, including Registrable Securities,
that the underwriters determine in their sole discretion will not jeopardize the
success of the offering (the securities so included to be apportioned pro rata
among the selling Holders according to the total amount of securities entitled
to be included therein owned by each selling Holder or in such other proportions
as shall mutually be agreed to by such selling Holders), but in no event shall
(i) the amount of securities of the selling Holders included in the offering be
reduced below thirty percent (30%) of the total amount of securities included in
such offering, unless such offering is the initial public offering of the
Company's securities, in which case the selling Holders may be excluded if the
underwriters make the determination described above and no other shareholder's
securities are included, or (ii) notwithstanding (i) above, any shares being
sold by a shareholder exercising a demand registration right similar to that
granted in Section 1.2 be excluded from such offering. For purposes of the
preceding parenthetical concerning apportionment, for any selling shareholder
that is a Holder of Registrable Securities and that is a partnership or
corporation, the partners, retired partners and shareholders of such Holder, or
the estates and family members of any such partners and retired partners and any
trusts for the benefit of any of the foregoing persons shall be deemed to be a
single "selling Holder," and any pro rata reduction with respect to such
"selling Holder" shall be based upon the aggregate amount of Registrable
Securities owned by all such related entities and individuals.

                                       4
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               1.4    Form S-3 Registration. In case the Company shall receive
                      ---------------------
from the Holders of Registrable Securities a written request or requests that
the Company effect a registration on~Form S-3 and any related qualification or
compliance with respect to all or a part of the Registrable Securities owned by
such Holder or Holders, the Company shall:

                      (a)  promptly give written notice of the proposed
registration, and any related qualification or compliance, to all other Holders;
and

                      (b)  use best efforts to effect, as soon as practicable,
such registration and all such qualifications and compliances as may be so
requested and as would permit or facilitate the sale and distribution of all or
such portion of such Holders' Registrable Securities as are specified in such
request, together with all or such portion of the Registrable Securities of any
other Holders joining in such request as are specified in a written request
given within fifteen (15) days after receipt of such written notice from the
Company, provided, however, that the Company shall not be obligated to effect
any such registration, qualification or compliance, pursuant to this section
1.4:

                           (i)   if Form S-3 is not available for such offering
by the holders;

                           (ii)  if the Holders, together with the holders of
any other securities of the Company entitled to inclusion in such registration,
propose to sell Registrable Securities and such other securities (if any) at an
aggregate price to the public (net of any underwriters' discounts or
commissions) of less than $5,000,000;

                           (iii) if the Company shall furnish to the Holders a
certificate signed by the Chief Executive Officer or Chairman of the Board of
the Company stating that in the good faith judgment of the Board of Directors of
the Company, it would be seriously detrimental to the Company and its
shareholders for such Form S-3 Registration to be effected at such time, in
which event the Company shall have the right to defer the filing of the Form S-3
registration statement for a period of not more than one hundred twenty (120)
days after receipt of the request of the Holder or Holders under this Section
1.4; provided, however, that the Company shall not utilize this right more than
once in any twelve month period;

                           (iv)  if the Company has, within the twelve (12)
month period preceding the date of such request, already effected one
registration on Form S-3 for the Holders pursuant to this Section 1.4; or

                           (v)   in any particular jurisdiction in which the
Company would be required to qualify to do business or to execute a general
consent to service of process in effecting such registration, qualification or
compliance.

                    (c)    Subject to the foregoing, the Company shall file a
registration statement covering the Registrable Securities and other securities
so requested to be registered as soon as practicable after receipt of the
request or requests of the Holders. Registrations effected pursuant to this
Section 1.4 shall not be counted as requests for registration effected pursuant
to Sections 1.2.

                                       5
<PAGE>

               1.5  Obligations of the Company. Whenever required under this
                    --------------------------
Section 1 to effect the registration of any Registrable Securities, the Company
shall, as expeditiously sly as reasonably possible:

                    (a)    prepare and file with the SEC a registration
statement with respect to such Registrable Securities and use best efforts to
cause such registration statement to become effective, and, upon the request of
the Holders of a majority of the Registrable Securities registered thereunder,
keep such registration statement effective for a period of up to one hundred
twenty (120) days or, if earlier, until the distribution contemplated in the
Registration Statement has been completed;

                    (b)    prepare and file with the SEC such 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 Act with respect to the disposition of all securities covered
by such registration statement;

                    (c)    furnish to the Holders such numbers of copies of a
prospectus, including a preliminary prospectus, in conformity with the
requirements of the Act, and such other documents as they may reasonably request
in order to facilitate the disposition of Registrable Securities owned by them;

                    (d)    use 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 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;

                    (e)    in the event of any underwritten public offering,
enter into and perform its obligations under an underwriting agreement, in usual
and customary form, with the managing underwriter of such offering;

                    (f)    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 Act or 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 in the light of the circumstances then existing;

                    (g)    cause all such Registrable Securities registered
pursuant hereunder to be listed on each securities exchange on which similar
securities issued by the Company are then listed; and

                    (h)    provide a transfer agent and registrar for all
Registrable Securities registered pursuant hereunder and a CUSIP number for all
such Registrable Securities, in each case not later than the effective date of
such registration.

               1.6  Information from Holder. It shall be a condition precedent
                    -----------------------
to the obligations of the Company to take any action pursuant to this Section 1
with respect to the

                                       6
<PAGE>

Registrable Securities of any selling Holder that such Holder shall furnish to
the Company such information regarding itself, the Registrable Securities held
by it, and the intended method of disposition of such securities as shall be
required to effect the registration of such Holder's Registrable Securities.

               1.7  Expenses of Registration. All expenses other than
                    ------------------------
underwriting discounts and commissions incurred in connection with
registrations, filings or qualifications pursuant to Sections 1.2, 1.3 and 1.4,
including (without limitation) all registration, filing and qualification fees,
printers' and accounting fees, fees and disbursements of counsel for the Company
and the reasonable fees and disbursements of one counsel for the selling Holders
which fees and disbursements shall not exceed $30,000, shall be borne by the
Company. Notwithstanding the foregoing, the Company shall not be required to pay
for any expenses of any registration proceeding begun pursuant to Section 1.2 or
Section 1.4 if the registration request is subsequently withdrawn at the request
of the Holders of a majority of the Registrable Securities to be registered (in
which case all participating Holders shall bear such expenses pro rata based
upon the number of Registrable Securities that were to be requested in the
withdrawn registration), unless, in the case of a registration requested under
Section 1.2, the Holders of a majority of the Registrable Securities agree to
forfeit their right to one demand registration pursuant to Section 1.2,
provided, however, that if at the time of such withdrawal, the Holders have
learned of a material adverse change in the condition, business, or prospects of
the Company different from that known to, or not previously known by, the
Holders at the time of their request and have withdrawn the request with
reasonable promptness following disclosure by the Company of such material
adverse change, then the Holders shall not be required to pay any of such
expenses and shall retain their rights pursuant to Section 1.2 or 1.4.

               1.8  Delay of Registration. No Holder shall have any right to
                    ---------------------
obtain or seer; an injunction restraining or otherwise delaying any such
registration as the result of any controversy that might arise with respect to
the interpretation or implementation of this Section 1.

               1.9  Indemnification. In the event any Registrable Securities
                    ---------------
are included in a registration statement under this Section 1:

                    (a)    To the extent permitted by law, the Company will
indemnify and hold harmless each Holder, the partners or officers, directors and
shareholders of each Holder, legal counsel and accountants for each Holder, any
underwriter (as defined in the Act) for such Holder and each person, if any, who
controls such Holder or underwriter within the meaning of the Act or the 1934
Act, against any losses, claims, damages or liabilities (joint or several) to
which they may become subject under the Act, the 1934 Act or any state
securities laws, insofar as such losses, claims, damages, or liabilities (or
actions in respect thereof) arise out of or are based upon any of the following
statements, omissions or violations (collectively a "Violation"): (i) any untrue
statement or alleged untrue statement of a material fact contained in such
registration statement, including any preliminary prospectus or final prospectus
contained therein or any amendments or supplements thereto, (ii) the omission or
alleged omission to state therein a material fact required to be stated therein,
or necessary to make the statements therein not misleading, or (iii) any
violation or alleged violation by the Company of the Act, the 1934 Act, any
state securities laws or any rule or regulation promulgated under the Act, the
1934 Act

                                       7
<PAGE>

or any state securities laws; and the Company will reimburse each such Holder,
underwriter or controlling person for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the indemnity
agreement contained in this subsection 1.9(a) shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Company (which consent shall
not be unreasonably withheld), nor shall the Company be liable in any such case
for any such loss, claim, damage, liability or action to the extent that it
arises out of or is based upon a Violation that occurs in reliance upon and in
conformity with written information furnished expressly for use in connection
with such registration by any such Holder, underwriter controlling person;
provided further, however, that the foregoing indemnity agreement with respect
to any preliminary prospectus shall not inure to the benefit of any Holder or
underwriter, or any person controlling such Holder or underwriter, from whom the
person asserting any such losses, claims, damages or liabilities purchased
shares in the offering, if a copy of the prospectus (as then amended or
supplemented if the Company shall have furnished any amendments or supplements
thereto) was not sent or given by or on behalf of such Holder or underwriter to
such person, if required by law so to have been delivered, at or prior to the
written confirmation of the sale of the shares to such person, and if the
prospectus (as so amended or supplemented) would have cured the defect giving
rise to such loss, claim, damage or liability.

                    (b)    To the extent permitted by law, each selling Holder
will indemnify and hold harmless the Company, each of its directors, each of its
officers who has signed the registration statement, each person, if any, who
controls the Company within the meaning of the Act, legal counsel and
accountants for the Company, any underwriter, any other Holder selling
securities in such registration statement and any controlling person of any such
underwriter or other Holder, against any losses, claims, damages or liabilities
(joint or several) to which any of the foregoing persons may become subject,
under the Act, the 1934 Act or any state securities laws, insofar as such
losses, claims, damages or liabilities (or actions in respect thereto) arise out
of or are based upon any Violation, in each case to the extent (and only to the
extent) that such Violation occurs in reliance upon and in conformity with
written information furnished by such Holder expressly for use in connection
with such registration; and each such Holder will reimburse any person intended
to be indemnified pursuant to this subsection 1.9(b), for any legal or other
expenses reasonably incurred by such person in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that the indemnity agreement contained in this subsection 1.9(b) shall not apply
to amounts paid in settlement of any such loss, claim, damage, liability or
action if such settlement is effected without the consent of the Holder (which
consent shall not be unreasonably withheld), provided that in no event shall any
indemnity under this subsection 1.9(b) exceed the net proceeds from the offering
received by such Holder.

                    (c)    Promptly after receipt by an indemnified party under
this Section 1.9 of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect thereof
is to be made against any indemnifying party under this Section 1.9, deliver to
the indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however,

                                       8
<PAGE>

that an indemnified party (together with all other indemnified parties that may
be represented without conflict by one counsel) shall have the right to retain
one separate counsel, with the 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 actual or potential
differing interests between such indemnified party and any other party
represented by such counsel in such proceeding. The failure to deliver written
notice to the indemnifying party within a reasonable time of the commencement of
any such action, if prejudicial to its ability to defend such action, shall
relieve such indemnifying party of any liability to the indemnified party under
this Section 1.9, but the omission so to deliver written notice to the
indemnifying will not relieve it of any liability that it may have to any
indemnified party otherwise than under this Section 1.9.

                    (d)    If the indemnification provided for in this Section
1.9 is held by a court of competent jurisdiction to be unavailable to an
indemnified party with respect to any loss, liability, claim, damage or expense
referred to herein, then 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 loss, liability, claim, damage or
expense in such proportion as is appropriate to reflect the relative fault of
the indemnifying party on the one hand and of the indemnified party on the other
in connection with the statements or omissions that resulted in such loss,
liability, claim, damage or expense, 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 relates 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.

                    (e)    Notwithstanding the foregoing, to the extent that the
provisions on indemnification and contribution contained in the underwriting
agreement entered into in connection with the underwritten public offering are
in conflict with the foregoing provisions, the provisions in the underwriting
agreement shall control.

                    (f)    The obligations of the Company and Holders under this
Section 1.9 shall survive the completion of any offering of Registrable
Securities in a registration statement under this Section 1, and otherwise.

               1.10 Reports Under Securities Exchange Act of 1934. With a view
                    ---------------------------------------------
to making available to the Holders the benefits of Rule 144 promulgated under
the Act and any other rule or regulation of the SEC that may at any time permit
a Holder to sell securities of the Company to the public without registration or
pursuant to a registration on Form S-3, the Company agrees to:

                    (a)    make and keep public information available, as those
terms are understood and defined in SEC Rule 144, at all times after ninety (90)
days after the effective date of the Initial Offering;

                    (b)    file with the SEC in a timely manner all reports and
other documents required of the Company under the Act and the 1934 Act; and

                                       9
<PAGE>

                    (c)    furnish to any Holder, so long as the Holder owns any
Registrable Securities, forthwith upon request (i) a written statement by the
Company that it has complied with the reporting requirements of SEC Rule 144 (at
any time after ninety (90) days after the effective date of the first
registration statement filed by the Company), the Act and the 1934 Act (at any
time after it has become subject to such reporting requirements), or that it
qualifies as a registrant whose securities may be resold pursuant to Form S-3
(at any time after it so qualifies), (ii) a copy of the most recent annual or
quarterly report of the Company and such other reports and documents so filed by
the Company, and (iii) such other information as may be reasonably requested in
availing any Holder of any rule or regulation of the SEC that permits the
selling of any such securities without registration or pursuant to such form.

               1.11 Assignment of Registration Rights. The rights to cause
                    ---------------------------------
the Company to register Registrable Securities pursuant to this Section I may be
assigned (but only with all related obligations) by a Holder to a transferee or
assignee of such securities that (i) is a subsidiary, parent, partner, limited
partner, retired partner or shareholder of a Holder, (ii) is a Holder's family
member or trust for the benefit of an individual Holder, or (iii) after such
assignment or transfer, holds at least 125,000 shares of Registrable Securities
(subject to appropriate adjustment for stock splits, stock dividends,
combinations and other recapitalizations), provided: (a) the Company is, within
a reasonable time after such transfer, furnished with written notice of the name
and address of such transferee or assignee and the securities with respect to
which such registration rights are being assigned; (b) such transferee or
assignee agrees in writing to be bound by and subject to the terms and
conditions of this Agreement, including without limitation the provisions of
Section 1.13 below; and (c) such assignment shall be effective only if
immediately following such transfer the further disposition of such securities
by the transferee or assignee is restricted under the Act.

               1.12 Limitations on Subsequent Registration Rights. From and
                    ---------------------------------------------
after the date of this Agreement, the Company shall not, without the prior
written consent of the Holders of a majority of the Registrable Securities,
enter into any agreement with any holder or prospective holder of any securities
of the Company that would allow such holder or prospective holder (a) to include
such securities in any registration filed under Section 1.3 hereof, unless under
the terms of such agreement, such holder or prospective holder may include such
securities in any such registration only to the extent that the inclusion of
such securities will not reduce the amount of the Registrable Securities of the
Holders that are included or (b) to demand registration of their securities.

               1.13 "Market Stand-Off,' Agreement. Each Holder hereby agrees
                    -----------------------------
that it will not, without the prior written consent of the managing underwriter,
during the period commencing on the date of the final prospectus relating to the
Company's initial public offering and ending on the date specified by the
Company and the managing underwriter (such period not to exceed one hundred
eighty (180) days) (i) lend, offer, pledge, sell, contract to sell, sell any
option or contract to purchase, purchase any option or contract to sell, grant
any option, right or warrant to purchase, or otherwise transfer or dispose of,
directly or indirectly, any shares of Common Stock or any securities convertible
into or exercisable or exchangeable for Common Stock (whether such shares or any
such securities are then owned by the Holder or are thereafter acquired), or
(ii) enter into any swap or other arrangement that transfers to another, in
whole or in part, any of the economic consequences of ownership of the Common
Stock, whether any

                                      10
<PAGE>

such transaction described in clause (i) or (ii) above is to be settled by
delivery of Common Stock or such other securities, in cash or otherwise. The
foregoing provisions of this Section 1.13 shall apply only to the Company's
initial public offering of equity securities, shall not apply to the sale of any
shares to an underwriter pursuant to an underwriting agreement, and shall only
be applicable to the Holders if all officers and directors and greater than one
percent (1%) shareholders of the Company enter into similar agreements. The
underwriters in connection with the Company's initial public offering are
intended third party beneficiaries of this Section 1.13 and shall have the
right, power and authority to enforce the provisions hereof as though they were
a party hereto.

               In order to enforce the foregoing covenant, the Company may
impose stop-transfer instructions with respect to the Registrable Securities of
each Holder (and the shares or securities of every other person subject to the
foregoing restriction) until the end of such period.

               1.14 Termination of Registration Rights. No Holder shall be
                    ----------------------------------
entitled to exercise any right provided for in this Section 1 after five (5)
years following the consummation of the Initial Offering or, as to any Holder,
such earlier time at which all Registrable Securities held by such Holder (and
any affiliate of the Holder with whom such Holder must aggregate its sales under
Rule 144) can be sold in any three (3)-month period without registration in
compliance with Rule 144 of the Act.

         2.    Covenants of the Company.
               ------------------------

               2.1  Delivery of Financial Statements. The Company shall deliver
                    --------------------------------
to each Investor and each Holder, so long as each such Holder holds at least
125,000 shares of Registrable Securities (subject to appropriate adjustment for
stock splits, stock dividends, combinations and other recapitalizations):

                    (a)    as soon as practicable, but in any event within
ninety (90) days after the end of each fiscal year of the Company, an income
statement for such fiscal year, a balance sheet of the Company and statement of
shareholder's equity as of the end of such year, and a statement of cash flows
for such year, such year-end financial reports to be in reasonable detail,
prepared in accordance with generally accepted accounting principles ("GAAP"),
and audited and certified by independent public accountants of nationally
recognized standing selected by the Company;

                    (b)    as soon as practicable, but in any event within
forty-five (45) days after the end of each of the first three (3) quarters of
each fiscal year of the Company, an unaudited income statement, statement of
cash flows for such fiscal quarter and an unaudited balance sheet as of the end
of such fiscal quarter.

                    (c)    within thirty (30) days of the end of each month, an
unaudited income statement and statement of cash flows and balance sheet for and
as of the end of such month, in reasonable detail;

                                      11
<PAGE>

               (d)  as soon as practicable, but in any event at least thirty
(30) days prior to the end of each fiscal year, a budget and business plan for
the next fiscal year, prepared on a monthly basis, including balance sheets,
income statements and statements of cash flows for such months and, as soon as
prepared, any other budgets or revised budgets prepared by the Company;

               (e)  with respect to the financial statements called for in
subsections (b) and (c) of this Section 2.1, an instrument executed by the Chief
Financial Officer or President of the Company certifying that such financials
were prepared in accordance with GAAP consistently applied with prior practice
for earlier periods (with the exception of -footnotes that may be required by
GAAP) and fairly present the financial condition of the Company and its results
of operation for the period specified, subject to year-end audit adjustment; and

               (f)  such other information relating to the financial condition,
business, prospects or corporate affairs of the Company as the Investor or any
assignee of the Investor may from time to time request, provided, however, that
the Company shall not be obligated under this subsection (f) or any other
subsection of Section 2.1 to provide information that it deems in good faith to
be a trade secret or similar confidential information.

          2.2  Inspection. The Company shall permit each Investor, at such
               ----------
Investor's expense, to visit and inspect the Company's properties, to examine
its books of account and records and to discuss the Company's affairs, finances
and accounts with its officers, all at such reasonable times as may be requested
by the Investor; provided, however. that the Company shall not be obligated
pursuant to this Section 2.2 to provide access to any information that it
reasonably considers to be a trade secret or similar confidential information.

          2.3  Termination of Information and Inspection Covenants. The
               ---------------------------------------------------
covenants set forth in Sections 2.1 and 2.2 shall terminate as to Investors and
be of no further force or effect when the sale of securities pursuant to a
registration statement filed by the Company under the Act in connection with the
firm commitment underwritten offering of its securities to the general public is
consummated or when the Company first becomes subject to the periodic reporting
requirements of Sections 12(g) or 15(d) of the 1934 Act, whichever event shall
first occur.

          2.4  Right of First Offer. Subject to the terms and conditions
               --------------------
specified in this paragraph 2.4, the Company hereby grants to each Investor who
holds at least 125,000 Registrable Securities (for purposes of this Section 2.4,
a "Major Investor"), a right of first offer with respect to future sales by the
Company of its Shares (as hereinafter defined). For purposes of this Section
2.4, Investor includes any general partners and affiliates of an Investor. An
Investor shall be entitled to apportion the right of first offer hereby granted
it among itself and its partners and affiliates in such proportions as it deems
appropriate.

     Each time the Company proposes to offer any shares of, or securities
convertible into or exchangeable or exercisable for any shares of, any class of
its capital stock ("Shares"), the Company shall first make an offering of such
Shares to each Investor in accordance with the following provisions.

                                      12
<PAGE>

               (a)  The Company shall deliver a notice in accordance with
Section 3.5 ("Notice") to the Major Investors stating (i) its bona fide
intention to offer such Shares, (ii) the number of such Shares to be offered,
and (iii) the price and terms upon which it proposes to offer such Shares.

               (b)  By written notification received by the Company, within
fifteen (15) calendar days after receipt of the Notice, each Major Investor may
elect to purchase or obtain, at the price and on the terms specified in the
Notice, up to that portion of such Shares that equals the proportion that the
number of shares of Common Stock issued and held, or issuable upon conversion of
the Series A Preferred Stock then held, by such Major Investor bears to the
total number of shares of Common Stock of the Company then outstanding (assuming
full conversion of all convertible securities). The Company shall promptly, in
writing, inform each Major Investor that elects to purchase all the shares
available to it (a "Fully Exercising Investor") of any other Major Investor's
failure to do likewise. During the ten (10) day period commencing after such
information is given, each Fully Exercising Investor may elect to purchase that
portion of the Shares for which Major Investors were entitled to subscribe but
which were not subscribed for by the Major Investors that is equal to the
proportion that the number of shares of Common Stock issued and held, or
issuable upon conversion of Series A Preferred Stock then held, by such Fully
Exercising Investor bears to the total number of shares of Common Stock issued
and held, or issuable upon conversion of the Series A Preferred Stock then held,
by all Fully Exercising Investors who wish to purchase some of the unsubscribed
shares.

               (c)  If all Shares that Major Investors are entitled to obtain
pursuant to subsection 2.4(b) are not elected to be obtained as provided in
subsection 2.4(b) hereof, the Company may, during the ninety (90) day period
following the expiration of the period provided in subsection 2.4(b) hereof,
offer the remaining unsubscribed portion of such Shares to any person or persons
at a price not less than, and upon terms no more favorable to the offeree than
those specified in the Notice. If the Company does not enter into an agreement
for the sale of the Shares within such period, or if such agreement is not
consummated within ninety (90) days of the execution thereof, the right provided
hereunder shall be deemed to be revived and such Shares shall not be offered
unless first reoffered to the Major Investors in accordance herewith.

               (d)  The right of first offer in this paragraph 2.4 shall not be
applicable to (i) the issuance or sale of shares of Common Stock (or options
therefor) to employees, directors and consultants for the primary purpose of
soliciting or retaining their services; (ii) the issuance of securities pursuant
to a bona fide, firmly underwritten public offering of shares of Common Stock,
registered under the Act, resulting in proceeds to the Company of at least
$15,000,000 in the aggregate, (iii) the issuance of securities pursuant to the
conversion or exercise of convertible or exercisable securities outstanding as
of the date of this Agreement, or (iv) the issuance of securities in connection
with a bona fide business acquisition of or by the Company, whether by merger,
consolidation, sale of assets, sale or exchange of stock or otherwise.

          2.5  Board of Directors;
               ------------------

               (a)  With respect to one (1) of the members of the Company's
Board of Directors that the Company's Restated Certificate of Incorporation (the
"Restated Certificate") provides are to be elected by the holders of Common
Stock (the "Common Directors"), the

                                      13
<PAGE>

Investors and the Founders hereby agree to vote all of their shares of Common
Stock and Preferred Stock now owned or hereafter acquired in favor of a person
designated by the unanimous consent of the remaining members of the Board of
Directors.

               (b)  With respect to one (1) of the two (2) members of the
Company's Board of Directors that the Restated Certificate provides are to be
elected by the holders of the Series A Preferred Stock (the "Series A
Directors"), the Investors hereby agree to vote all of their shares of Series A
Preferred Stock now owned or hereafter acquired in favor of the election of a
designee of entities affiliated with W.R. Hambrecht & Co., which designee shall
initially be William R. Hambrecht ("Mr. Hambrecht") until such time as Mr.
Hambrecht is no longer able to serve as director of the Company as a result of
death or prolonged physical or mental incapacity.

               (c)  Should the provisions of this Section 2.5 be construed to
constitute the granting of proxies, such proxies shall be deemed coupled with an
interest and are irrevocable for the term of this Agreement. It is agreed and
understood that monetary damages would not adequately compensate an injured
party for the breach of this Section 2.5 by any party, that this Section 2.5
shall be specifically enforceable, and that any breach or threatened breach of
this Section 2.5 shall be the proper subject of a temporary or permanent
injunction or restraining order. Further, each party hereto waives any claim or
defense that there is an adequate remedy at law for such breach or threatened
breach.

               (d)  In the event of the resignation, death, removal or
disqualification of a Series A Director, as the case may be, W.R. Hambrecht &
Co. shall promptly nominate a new director, and, after written notice of the
nomination has been given by W.R. Hambrecht & Co. to the other parties, each
Investor and Founder shall vote its shares of capital stock of the Company
entitled to vote in such election to elect such nominee to the Board of
Directors.

               (e)  Except with respect to Mr. Hambrecht, W.R. Hambrecht & Co.
may remove its designated director(s) at any time and from time to time, with or
without cause (subject to the Bylaws of the Company as in effect from time to
time and any requirements of law), in its sole discretion, and, after written
notice to each of the parties hereto of the new nominee to replace such
director, each Investor and Founder shall promptly vote its shares of capital
stock of the Company entitled to vote in such election to elect such nominee to
the Board of Directors.

          2.6  Observer Rights. The Company shall invite a representative of
               ---------------
entities affiliated with W.R Hambrecht & Co., which representative shall
initially be Scott Gibbs, to attend all meetings of its Board of Directors in a
nonvoting observer capacity and, in this respect, shall give such representative
copies of all notices, minutes, consents, and other materials that it provides
to its directors; provided, however, that such representative shall agree to
hold in confidence and trust and to act in a fiduciary manner with respect to
all information so provided; and, provided further, that the Company reserves
the right to withhold any information and to exclude such representative from
any meeting or portion thereof if access to such information or attendance at
such meeting could adversely affect the attorney-client privilege between the
Company and its counsel or would result in disclosure of trade secrets to such
representative or if such Investor or its representative is a direct competitor
of the Company.

                                      14
<PAGE>

          2.7  Termination of Certain Covenants. The covenants set forth in
               --------------------------------
Sections 2.4, 2.5 and 2.6 shall terminate and be of no further force or effect
upon the earlier to occur of:

               (i)  the sale of securities pursuant to a registration statement
filed by the Company under the Act in connection with the firm commitment
underwritten offering of its securities to the general public is consummated,
resulting in at least $15,000,000 in aggregate proceeds to the Company; or

               (ii) the date upon which the Company first becomes subject to the
periodic reporting requirements of Sections 12(g) or 15(d) of the 1934 Act.

          2.8  Confidentiality. Each Holder shall agree to use, and to
               ---------------
its best efforts to insure that its authorized representatives use, the same
degree of care as such Holder uses to protect its own confidential information
to keep confidential any information furnished to it, which the Company
identifies as being confidential or proprietary (so long as such information is
not in the public domain), except that such Holder may disclose such
confidential and proprietary information to any partner, subsidiary or parent of
such Holder for the sole purpose of evaluating its investment in the Company so
long as such partner, subsidiary or parent is advised and agrees to the
confidentiality provisions of this Section 2.8; provided, however, that the
obligations under this Section 2.8 shall not apply to a Holder with respect to
any information after five years following the disclosure thereof or any
information that such Holder can document (i) is or becomes (through no improper
action or inaction by such Holder or any affiliate, agent, consultant or
employee thereof) generally available to the public, (ii) was in its possession
or known by such Holder prior to receipt from the Company, (iii) was rightfully
disclosed to such Holder by a third party, or (iv) was independently developed
without use of any confidential information of the Company. Each Holder may make
disclosures required by law or court order provided such Holder uses diligent
reasonable efforts to limit disclosure and to obtain confidential treatment or a
protective order and has allowed the Company to participate in the proceeding.

          3.   Miscellaneous.
               --------------

               3.1  Successors and Assigns. Except as otherwise provided herein,
                    ----------------------
the terms and conditions of this Agreement shall inure to the benefit of and be
binding upon the respective successors and assigns of the parties (including
transferees of any shares of Registrable Securities). Nothing in this Agreement,
express or implied, is intended to confer upon any path than the parties hereto
or their respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

               3.2  Governing Law. This Agreement shall be governed by and
                    -------------
construed under the laws of the State of Delaware as applied to agreements among
Delaware residents entered into and to be performed entirely within Delaware.

               3.3  Counterparts. This Agreement may be executed in two or more
                    ------------
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                                      15
<PAGE>

               3.4  Titles and Subtitles. The titles and subtitles used in this
                    --------------------
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

               3.5  Notices. Unless otherwise provided, any notice required or
                    -------
permitted under this Agreement shall be given in writing and shall be deemed
effectively given upon personal delivery to the party to be notified or upon
delivery by confirmed facsimile transmission, nationally recognized overnight
courier service, or upon deposit with the United States Post Office, by
registered or certified mail, postage prepaid and addressed to the party to be
notified at the address indicated for such party on the signature page hereof,
or at such other address as such party may designate by ten (10) days' advance
written notice to the other parties.

               3.6  Expenses. If any action at law or in equity is necessary to
                    --------
enforce or interpret the terms of this Agreement, the prevailing party shall be
entitled to reasonable attorneys' fees, costs and necessary disbursements in
addition to any other relief to which such party may be entitled.

               3.7  Entire Agreement: Amendments and Waivers. This Agreement
                    ----------------------------------------
(including the Exhibits hereto, if any) constitutes the full and entire
understanding and agreement among the parties with regard to the subjects hereof
and thereof. Any term of this Agreement may be amended and the observance of any
term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written
consent of the Company and the holders of a majority of the Registrable
Securities. Any amendment or waiver effected in accordance with this paragraph
shall be binding upon each holder of any Registrable Securities each future
holder of all such Registrable Securities, and the Company.

               3.8  Severability. If one or more provisions of this Agreement
                    ------------
are held to be unenforceable under applicable law, such provision shall be
excluded from this Agreement and the balance of the Agreement shall be
interpreted as if such provision were so excluded and shall be enforceable in
accordance with its terms.

               3.9  Aggregation of Stock. All shares of Registrable Securities
                    --------------------
held or acquired by affiliated entities or persons shall be aggregated together
for the purpose of determining the availability of any rights under this
Agreement.

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

                                           ARISTOTLE PUBLISHING, INC.

                                           By:  /s/ John Phillips
                                                ________________________________

                                           Name:  John Phillips
                                                  ______________________________

                                           Title:  CEO
                                                   _____________________________

                                      16
<PAGE>

                                       INVESTORS:



                                       W. R. Hambrecht/Aristotle, LLC
                                       ------------------------------
                                       Name of Investor

                                       By:  /s/ W. R. Hambrecht/Aristotle
                                                Management LLC, Manager

                                       Name:  M. Scott Gibbs
                                              --------------

                                       Title:  Manager
                                               -------

                                       Address:  550 15/th/ Street, 2nd Floor
                                                 San Francisco, Ca  94103
                                                 ------------------------


                                      17
<PAGE>

                                           INVESTORS:



                                           EPARTNERS
                                           ---------
                                           Name of Investor

                                           By:  /s/ News American Incorporated,
                                                    General Partner

                                           Name:  Lawrence A. Jacobs

                                           Title:  Senior Vice President

                                           Address:  1211 Avenue of the Americas
                                                     New York, New York  10036

                                      18
<PAGE>

                                           INVESTORS:



                                           Odyssey Capital II, LLC
                                           Name of Investor

                                           By:  Odyssey Capital management, LLC
                                           Its: Managing Member

                                           Name:  /s/ Nicholas Donatiello, Jr.

                                           Title:  Management Member

                                           Address:  550 Fifteenth Street
                                                     San Francisco, Ca  94103

                                      19
<PAGE>

                                           FOUNDERS:





                                           /s/ John Phillips
                                           __________________________________
                                           NAME

                                           __________________________________
                                           NAME

                                      20
<PAGE>

                                           FOUNDERS:






                                           ___________________________________
                                           NAME


                                           /s/ Dean A. Phillips
                                           ___________________________________
                                           NAME

                                      21
<PAGE>

                                  SCHEDULE A
                                  ----------

                               List of Investors

<TABLE>
<CAPTION>
                                                                               Number of Series A
              Name and Address                                                  Shares Purchased
              ----------------                                                  -----------------
         <S>                                      <C>                          <C>
         WR Hambrecht/Aristotle, LLC              $ 2,000,000.00                     727,273
         ePartners                                $ 1,000,000.00                     363,636
         Odyssey Capital II, LLC                  $   500,000.00                     181,818

         Total                                    $ 3,500,000.00                   1,272,727
</TABLE>

                                      22
<PAGE>

                                  SCHEDULE B
                                  ----------

                               List of Founders

<TABLE>
<CAPTION>
                                                                            Number of Common
         Name and Address                                                      Shares Held
         ----------------                                                      -----------
         <S>                                                                <C>
         John A. Phillips                                                       1,500,000

         Dean A. Phillips                                                       1,500,000
</TABLE>

                                      23