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                                                                     EXHIBIT 4.3

                          REGISTRATION RIGHTS AGREEMENT

            This Registration Rights Agreement (this "Agreement") is made and
entered into as of March 31, 2005, by and among Boundless Motor Sports Racing,
Inc., a Colorado corporation (the "Company"), and the purchasers listed on
Schedule I hereto (the "Purchasers").

            This Agreement is being entered into pursuant to the Series B
Convertible Preferred Stock Purchase Agreement dated as of the date hereof among
the Company and the Purchasers (the "Purchase Agreement").

            The Company and the Purchasers hereby agree as follows:

      1.    Definitions.

            Capitalized terms used and not otherwise defined herein shall have
the meanings given such terms in the Purchase Agreement. As used in this
Agreement, the following terms shall have the following meanings:

            "Advice" shall have meaning set forth in Section 3(m).

            "Affiliate" means, with respect to any Person, any other Person that
directly or indirectly controls or is controlled by or under common control with
such Person. For the purposes of this definition, "control," when used with
respect to any Person, means the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of such Person,
whether through the ownership of voting securities, by contract or otherwise;
and the terms of "affiliated," "controlling" and "controlled" have meanings
correlative to the foregoing.

            "Board" shall have meaning set forth in Section 3(n).

            "Business Day" means any day except Saturday, Sunday and any day
which shall be a legal holiday or a day on which banking institutions in the
state of New York generally are authorized or required by law or other
government actions to close.

            "Closing Date" means the date of the closing of the purchase and
sale of the Preferred Stock and Warrants pursuant to the Purchase Agreement.

            "Commission" means the Securities and Exchange Commission.

            "Common Stock" means the Company's Common Stock, par value $.0001
per share.

            "Effectiveness Date" means with respect to the Registration
Statement the earlier of June 13, 2005 or the date which is within five (5) days
of the date on which the Commission informs the Company that the Commission (i)
will not review the Registration Statement or (ii) that the Company may request
the acceleration of the effectiveness of the Registration Statement and the
Company makes such request.

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            "Effectiveness Period" shall have the meaning set forth in Section
2.

            "Event" shall have the meaning set forth in Section 7(e).

            "Event Date" shall have the meaning set forth in Section 7(e).

            "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

            "Filing Date" means April 11, 2005.

            "Holder" or "Holders" means the holder or holders, as the case may
be, from time to time of Registrable Securities.

            "Indemnified Party" shall have the meaning set forth in Section
5(c).

            "Indemnifying Party" shall have the meaning set forth in Section
5(c).

            "Losses" shall have the meaning set forth in Section 5(a).

            "Person" means an individual or a corporation, partnership, trust,
incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or political subdivision
thereof) or other entity of any kind.

            "Preferred Stock" means the Series B Convertible Preferred Stock,
par value $.01 per share and stated value $3,000 per share, of the Company
issued to the Purchasers pursuant to the Purchase Agreement.

            "Proceeding" means an action, claim, suit, investigation or
proceeding (including, without limitation, an investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

            "Prospectus" means the prospectus included in the Registration
Statement (including, without limitation, a prospectus that includes any
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Registrable
Securities covered by the Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all
material incorporated by reference in such Prospectus.

            "Registrable Securities means the shares of Common Stock issuable
upon conversion of the Preferred Stock and the shares of Common Stock issuable
upon exercise of the Warrants.

            "Registration Statement" means the registration statements and any
additional registration statements contemplated by Section 2, including (in each
case) the Prospectus, amendments and supplements to such registration statement
or Prospectus, including pre- and

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post-effective amendments, all exhibits thereto, and all material incorporated
by reference in such registration statement.

            "Rule 144" means Rule 144 promulgated by the Commission pursuant to
the Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

            "Rule 158" means Rule 158 promulgated by the Commission pursuant to
the Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

            "Rule 415" means Rule 415 promulgated by the Commission pursuant to
the Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

            "Securities Act" means the Securities Act of 1933, as amended.

            "Special Counsel" means Kramer Levin Naftalis & Frankel LLP, for
which the Holders will be reimbursed by the Company pursuant to Section 4.

      2.    Resale Registration.

            On or prior to the Filing Date the Company shall prepare and file
with the Commission a "resale" Registration Statement covering all Registrable
Securities for an offering to be made on a continuous basis pursuant to Rule
415. The Registration Statement shall be on Form SB-2 (except if the Company is
not then eligible to register for resale the Registrable Securities on Form
SB-2, in which case such registration shall be on another appropriate form in
accordance herewith). The Company shall (i) not permit any securities other than
the Registrable Securities and the securities listed on Schedule II hereto to be
included in the Registration Statement and (ii) use its best efforts to cause
the Registration Statement to be declared effective under the Securities Act as
promptly as possible after the filing thereof, but in any event prior to the
Effectiveness Date, and to keep such Registration Statement continuously
effective under the Securities Act until such date as is the earlier of (x) the
date when all Registrable Securities covered by such Registration Statement have
been sold or (y) the date on which the Registrable Securities may be sold
without any restriction pursuant to Rule 144 as determined by the counsel to the
Company pursuant to a written opinion letter, addressed to the Company's
transfer agent to such effect (the "Effectiveness Period"). If at any time and
for any reason, an additional Registration Statement is required to be filed
because at such time the actual number of shares of Common Stock into which the
Preferred Stock is convertible and the Warrants are exercisable exceeds the
number of shares of Registrable Securities remaining under the Registration
Statement, the Company shall have twenty (20) Business Days to file such
additional Registration Statement, and the Company shall use its best efforts to
cause such additional Registration Statement to be declared effective by the
Commission as soon as possible, but in no event later than sixty (60) days after
filing.

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      3.    Registration Procedures.

            In connection with the Company's registration obligations hereunder,
the Company shall:

            (a)   Prepare and file with the Commission, on or prior to the
Filing Date, a Registration Statement on Form SB-2 (or if the Company is not
then eligible to register for resale the Registrable Securities on Form SB-2
such registration shall be on another appropriate form in accordance herewith)
in accordance with the method or methods of distribution thereof as specified by
the Holders (except if otherwise directed by the Holders) and in accordance with
applicable law, and cause the Registration Statement to become effective and
remain effective as provided herein; provided, however, that not less than three
(3) Business Days prior to the filing of the Registration Statement or any
related Prospectus or any amendment or supplement thereto, the Company shall (i)
furnish to the Holders and any Special Counsel, copies of all such documents
proposed to be filed, which documents will be subject to the review of such
Holders and such Special Counsel, and (ii) cause its officers and directors,
counsel and independent certified public accountants to respond to such
inquiries as shall be necessary, in the reasonable opinion of Special Counsel,
to conduct a reasonable review of such documents. The Company shall not file the
Registration Statement or any such Prospectus or any amendments or supplements
thereto to which the Holders of a majority of the Registrable Securities or any
Special Counsel shall reasonably object in writing within three (3) Business
Days of their receipt thereof.

            (b)   (i) Prepare and file with the Commission such amendments,
including post-effective amendments, to the Registration Statement as may be
necessary to keep the Registration Statement continuously effective as to the
applicable Registrable Securities for the Effectiveness Period and prepare and
file with the Commission such additional Registration Statements in order to
register for resale under the Securities Act all of the Registrable Securities;
(ii) cause the related Prospectus to be amended or supplemented by any required
Prospectus supplement, and as so supplemented or amended to be filed pursuant to
Rule 424 (or any similar provisions then in force) promulgated under the
Securities Act; (iii) respond as promptly as possible, but in no event later
than ten (10) Business Days, to any comments received from the Commission with
respect to the Registration Statement or any amendment thereto and as promptly
as possible provide the Holders true and complete copies of all correspondence
from and to the Commission relating to the Registration Statement; and (iv)
comply in all material respects with the provisions of the Securities Act and
the Exchange Act with respect to the disposition of all Registrable Securities
covered by the Registration Statement during the Effectiveness Period in
accordance with the intended methods of disposition by the Holders thereof set
forth in the Registration Statement as so amended or in such Prospectus as so
supplemented.

            (c)   Notify the Holders of Registrable Securities and any Special
Counsel as promptly as possible (and, in the case of (i)(A) below, not less than
three (3) days prior to such filing) and (if requested by any such Person)
confirm such notice in writing no later than two (2) Business Days following the
day (i)(A) when a Prospectus or any Prospectus supplement or post-effective
amendment to the Registration Statement is filed; (B) when the Commission
notifies the Company whether there will be a "review" of such Registration
Statement and whenever the Commission comments in writing on such Registration
Statement and (C) with respect to the

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Registration Statement or any post-effective amendment, when the same has become
effective; (ii) of any request by the Commission or any other Federal or state
governmental authority for amendments or supplements to the Registration
Statement or Prospectus or for additional information; (iii) of the issuance by
the Commission of any stop order suspending the effectiveness of the
Registration Statement covering any or all of the Registrable Securities or the
initiation or threatening of any Proceedings for that purpose; (iv) if at any
time any of the representations and warranties of the Company contained in any
agreement contemplated hereby ceases to be true and correct in all material
respects; (v) of the receipt by the Company of any notification with respect to
the suspension of the qualification or exemption from qualification of any of
the Registrable Securities for sale in any jurisdiction, or the initiation of
any Proceeding for such purpose; and (vi) of the occurrence of any event that
makes any statement made in the Registration Statement or Prospectus or any
document incorporated or deemed to be incorporated therein by reference untrue
in any material respect or that requires any revisions to the Registration
Statement, Prospectus or other documents so that, in the case of the
Registration Statement or the Prospectus, as the case may be, it will not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading.

            (d)   Use its best efforts to avoid the issuance of, or, if issued,
obtain the withdrawal of, as promptly as possible, (i) any order suspending the
effectiveness of the Registration Statement or (ii) any suspension of the
qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction.

            (e)   If requested by the Holders of a majority in interest of the
Registrable Securities, (i) promptly incorporate in a Prospectus supplement or
post-effective amendment to the Registration Statement such information as the
Company reasonably agrees should be included therein and (ii) make all required
filings of such Prospectus supplement or such post-effective amendment as soon
as practicable after the Company has received notification of the matters to be
incorporated in such Prospectus supplement or post-effective amendment.

            (f)   If requested by any Holder, furnish to such Holder and any
Special Counsel, without charge, at least one conformed copy of each
Registration Statement and each amendment thereto, including financial
statements and schedules, all documents incorporated or deemed to be
incorporated therein by reference, and all exhibits to the extent requested by
such Person (including those previously furnished or incorporated by reference)
promptly after the filing of such documents with the Commission.

            (g)   Promptly deliver to each Holder and any Special Counsel,
without charge, as many copies of the Prospectus or Prospectuses (including each
form of prospectus) and each amendment or supplement thereto as such Persons may
reasonably request; and subject to the provisions of Sections 3(m) and 3(n), the
Company hereby consents to the use of such Prospectus and each amendment or
supplement thereto by each of the selling Holders in connection with the
offering and sale of the Registrable Securities covered by such Prospectus and
any amendment or supplement thereto.

            (h)   Prior to any public offering of Registrable Securities, use
its best efforts to register or qualify or cooperate with the selling Holders
and any Special Counsel in connection

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with the registration or qualification (or exemption from such registration or
qualification) of such Registrable Securities for offer and sale under the
securities or Blue Sky laws of such jurisdictions within the United States as
any Holder requests in writing, to keep each such registration or qualification
(or exemption therefrom) effective during the Effectiveness Period and to do any
and all other acts or things necessary or advisable to enable the disposition in
such jurisdictions of the Registrable Securities covered by a Registration
Statement; provided, however, that the Company shall not be required to qualify
generally to do business in any jurisdiction where it is not then so qualified
or to take any action that would subject it to general service of process in any
such jurisdiction where it is not then so subject or subject the Company to any
material tax in any such jurisdiction where it is not then so subject.

            (i)   Cooperate with the Holders to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to
be sold pursuant to a Registration Statement, which certificates, to the extent
permitted by the Purchase Agreement and applicable federal and state securities
laws, shall be free of all restrictive legends, and to enable such Registrable
Securities to be in such denominations and registered in such names as any
Holder may request in connection with any sale of Registrable Securities.

            (j)   Upon the occurrence of any event contemplated by Section
3(c)(vi), as promptly as possible, prepare a supplement or amendment, including
a post-effective amendment, to the Registration Statement or a supplement to the
related Prospectus or any document incorporated or deemed to be incorporated
therein by reference, and file any other required document so that, as
thereafter delivered, neither the Registration Statement nor such Prospectus
will contain 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,
in the light of the circumstances under which they were made, not misleading.

            (k)   Use its best efforts to cause all Registrable Securities
relating to the Registration Statement to be listed on the OTC Bulletin Board or
the Nasdaq SmallCap Market or any other securities exchange, quotation system or
market, if any, on which similar securities issued by the Company are then
listed as and when required pursuant to the Purchase Agreement.

            (l)   Comply in all material respects with all applicable rules and
regulations of the Commission and make generally available to its security
holders all documents filed or required to be filed with the Commission.

            (m)   The Company may require each selling Holder to furnish to the
Company information regarding such Holder and the distribution of such
Registrable Securities as is required by law to be disclosed in the Registration
Statement, Prospectus, or any amendment or supplement thereto, and the Company
may exclude from such registration the Registrable Securities of any such Holder
who unreasonably fails to furnish such information within a reasonable time
after receiving such request.

            Each Holder covenants and agrees that (i) it will not sell any
Registrable Securities under the Registration Statement until it has received
copies of the Prospectus as then amended or supplemented as contemplated in
Section 3(g) and notice from the Company that such Registration Statement and
any post-effective amendments thereto have become effective as contemplated by
Section 3(c) and (ii) it and its officers, directors or Affiliates, if any, will

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comply with the prospectus delivery requirements of the Securities Act as
applicable to them in connection with sales of Registrable Securities pursuant
to the Registration Statement.

            Each Holder agrees by its acquisition of such Registrable Securities
that, upon receipt of a notice from the Company of the occurrence of any event
of the kind described in Section 3(c)(ii), 3(c)(iii), 3(c)(iv), 3(c)(v),
3(c)(vi) or 3(n), such Holder will forthwith discontinue disposition of such
Registrable Securities under the Registration Statement until such Holder's
receipt of the copies of the supplemented Prospectus and/or amended Registration
Statement contemplated by Section 3(j), or until it is advised in writing (the
"Advice") by the Company that the use of the applicable Prospectus may be
resumed, and, in either case, has received copies of any additional or
supplemental filings that are incorporated or deemed to be incorporated by
reference in such Prospectus or Registration Statement.

            (n)   If (i) there is material non-public information regarding the
Company which the Company's Board of Directors (the "Board") reasonably
determines not to be in the Company's best interest to disclose and which the
Company is not otherwise required to disclose, or (ii) there is a significant
business opportunity (including, but not limited to, the acquisition or
disposition of assets (other than in the ordinary course of business) or any
merger, consolidation, tender offer or other similar transaction) available to
the Company which the Board reasonably determines not to be in the Company's
best interest to disclose, then the Company may postpone or suspend filing or
effectiveness of a registration statement for a period not to exceed 20
consecutive days, provided that the Company may not postpone or suspend its
obligation under this Section 3(n) for more than 45 days in the aggregate during
any 12 month period; provided, however, that no such postponement or suspension
shall be permitted for consecutive 20 day periods, arising out of the same set
of facts, circumstances or transactions.

      4.    Registration Expenses.

            All fees and expenses incident to the performance of or compliance
with this Agreement by the Company, except as and to the extent specified in
Section 4, shall be borne by the Company whether or not the Registration
Statement is filed or becomes effective and whether or not any Registrable
Securities are sold pursuant to the Registration Statement. The fees and
expenses referred to in the foregoing sentence shall include, without
limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses (A) with respect to filings required to be made with each
securities exchange or market on which Registrable Securities are required
hereunder to be listed, (B) with respect to filing fees required to be paid by
the Company to the National Association of Securities Dealers, Inc. and the NASD
Regulation, Inc. and (C) in compliance with state securities or Blue Sky laws
(including, without limitation, fees and disbursements of counsel for the
Holders in connection with Blue Sky qualifications of the Registrable Securities
and determination of the eligibility of the Registrable Securities for
investment under the laws of such jurisdictions as the Holders of a majority of
Registrable Securities may designate)), (ii) printing expenses (including,
without limitation, expenses of printing certificates for Registrable Securities
and of printing prospectuses if the printing of prospectuses is requested by the
holders of a majority of the Registrable Securities included in the Registration
Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and
disbursements of counsel for the Company and Special Counsel for the Holders, in
the case of the Special Counsel, to a maximum amount of $5,000, (v) Securities
Act liability insurance, if the Company so desires such insurance, and (vi) fees
and expenses of all other

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Persons retained by the Company in connection with the consummation of the
transactions contemplated by this Agreement, including, without limitation, the
Company's independent public accountants (including the expenses of any comfort
letters or costs associated with the delivery by independent public accountants
of a comfort letter or comfort letters). In addition, the Company shall be
responsible for all of its internal expenses incurred in connection with the
consummation of the transactions contemplated by this Agreement (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expense of any annual audit, the
fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange as required hereunder.

      5.    Indemnification.

            (a)   Indemnification by the Company. The Company shall,
notwithstanding any termination of this Agreement, indemnify and hold harmless
each Holder, the officers, directors, agents, brokers (including brokers who
offer and sell Registrable Securities as principal as a result of a pledge or
any failure to perform under a margin call of Common Stock), investment advisors
and employees of each of them, each Person who controls any such Holder (within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act) and the officers, directors, agents and employees of each such controlling
Person, to the fullest extent permitted by applicable law, from and against any
and all losses, claims, damages, liabilities, costs (including, without
limitation, costs of preparation and attorneys' fees) and expenses
(collectively, "Losses"), as incurred, arising out of or based upon any untrue
or alleged untrue statement of a material fact contained in the Registration
Statement, any Prospectus or any form of prospectus or in any amendment or
supplement thereto or in any preliminary prospectus, or arising out of or based
upon any omission or alleged omission of a material fact required to be stated
therein or necessary to make the statements therein (in the case of any
Prospectus or form of prospectus or supplement thereto), in the light of the
circumstances under which they were made, not misleading, except to the extent,
but only to the extent, that such untrue statements or omissions arise out of or
are based upon information regarding the Holders or such other Indemnified Party
furnished in writing to the Company by a Holder expressly for use therein, which
information was reasonably relied on by the Company for use therein or to the
extent that such information relates to a Holder or such Holder's proposed
method of distribution of Registrable Securities and was reviewed and expressly
approved in writing by a Holder expressly for use in the Registration Statement,
such Prospectus or such form of Prospectus or in any amendment or supplement
thereto. The Company shall notify the Holders promptly of the institution,
threat or assertion of any Proceeding of which the Company is aware in
connection with the transactions contemplated by this Agreement.

            (b)   Indemnification by Holders. Each Holder shall, severally and
not jointly, indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within the meaning
of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the
directors, officers, agents or employees of such controlling Persons, to the
fullest extent permitted by applicable law, from and against all Losses, as
incurred, arising out of or based upon any untrue or alleged untrue statement of
a material fact contained in the Registration Statement, any Prospectus, or any
form of prospectus, or in any amendment or supplement thereto or in any
preliminary prospectus, or arising out of or based upon any omission or alleged
omission of a material fact required to be stated therein or necessary to make
the statements therein (in the case of any Prospectus or form of prospectus or

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supplement thereto), in the light of the circumstances under which they were
made, not misleading, to the extent, but only to the extent, that such untrue
statement or omission is contained in any information so furnished in writing by
such Holder or other Indemnified Party to the Company expressly for use therein
and that such information was reasonably relied upon by the Company for use
therein, or to the extent that such information relates to such Holder or such
Holder's proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use in
the Registration Statement, such Prospectus or such form of Prospectus or any
amendment or supplement thereto. Notwithstanding anything to the contrary
contained herein, the Holders shall be liable under this Section 5(b) for only
that amount as does not exceed the net proceeds to such Holder as a result of
the sale of Registrable Securities pursuant to such Registration Statement.

            (c)   Conduct of Indemnification Proceedings. If any Proceeding
shall be brought or asserted against any Person entitled to indemnity hereunder
(an "Indemnified Party"), such Indemnified Party promptly shall notify the
Person from whom indemnity is sought (the "Indemnifying Party) in writing, and
the Indemnifying Party shall be entitled to assume the defense thereof,
including the employment of counsel reasonably satisfactory to the Indemnified
Party and the payment of all fees and expenses incurred in connection with
defense thereof; provided, that the failure of any Indemnified Party to give
such notice shall not relieve the Indemnifying Party of its obligations or
liabilities pursuant to this Agreement, except (and only) to the extent that it
shall be finally determined by a court of competent jurisdiction (which
determination is not subject to appeal or further review) that such failure
shall have proximately and materially adversely prejudiced the Indemnifying
Party.

            An Indemnified Party shall have the right to employ separate counsel
in any such Proceeding and to participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of such Indemnified Party
or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such
fees and expenses; or (2) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding and to employ counsel reasonably
satisfactory to such Indemnified Party in any such Proceeding; or (3) the named
parties to any such Proceeding (including any impleaded parties) include both
such Indemnified Party and the Indemnifying Party, and such parties shall have
been advised by counsel that a conflict of interest is likely to exist if the
same counsel were to represent such Indemnified Party and the Indemnifying Party
(in which case, if such Indemnified Party notifies the Indemnifying Party in
writing that it elects to employ separate counsel at the expense of the
Indemnifying Party, the Indemnifying Party shall not have the right to assume
the defense thereof and such counsel shall be at the expense of the Indemnifying
Party). The Indemnifying Party shall not be liable for any settlement of any
such Proceeding effected without its written consent, which consent shall not be
unreasonably withheld or delayed. No Indemnifying Party shall, without the prior
written consent of the Indemnified Party, effect any settlement of any pending
or threatened Proceeding in respect of which any Indemnified Party is a party
and indemnity has been sought hereunder, unless such settlement includes an
unconditional release of such Indemnified Party from all liability on claims
that are the subject matter of such Proceeding.

         All fees and expenses of the Indemnified Party (including reasonable
fees and expenses to the extent incurred in connection with investigating or
preparing to defend such Proceeding in a manner not inconsistent with this
Section) shall be paid to the Indemnified Party, as incurred, within ten (10)
Business Days of written notice thereof to the Indemnifying Party

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(regardless of whether it is ultimately determined that an Indemnified Party is
not entitled to indemnification hereunder; provided, that the Indemnified Party
shall reimburse all such fees and expenses to the extent it is finally
judicially determined that such Indemnified Party is not entitled to
indemnification hereunder).

            (d)   Contribution. If a claim for indemnification under Section
5(a) or 5(b) is due but unavailable to an Indemnified Party because of a failure
or refusal of a governmental authority to enforce such indemnification in
accordance with its terms (by reason of public policy or otherwise), then each
Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result
of such Losses, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the
actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations. The relative fault of such Indemnifying
Party and Indemnified Party shall be determined by reference to, among other
things, whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission of a material fact,
has been taken or made by, or relates to information supplied by, such
Indemnifying, Party or Indemnified Party, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
action, statement or omission. The amount paid or payable by a party as a result
of any Losses shall be deemed to include, subject to the limitations set forth
in Section 5(c), any reasonable attorneys' or other reasonable fees or expenses
incurred by such party in connection with any Proceeding to the extent such
party would have been indemnified for such fees or expenses if the
indemnification provided for in this Section was available to such party in
accordance with its terms.

         The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 5(d) were determined by pro rata
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.
No Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation.

         The indemnity and contribution agreements contained in this Section are
in addition to any liability that the Indemnifying Parties may have to the
Indemnified Parties pursuant to the law.

      6.    Rule 144.

         As long as any Holder owns Shares, Conversion Shares, Warrants or
Warrant Shares, the Company covenants to timely file (or obtain extensions in
respect thereof and file within the applicable grace period) all reports
required to be filed by the Company after the date hereof pursuant to Section
13(a) or 15(d) of the Exchange Act. As long as any Holder owns Shares,
Conversion Shares, Warrants or Warrant Shares, if the Company is not required to
file reports pursuant to Section 13(a) or 15(d) of the Exchange Act, it will
prepare and furnish to the Holders and make publicly available in accordance
with Rule 144(c) promulgated under the Securities Act annual and quarterly
financial statements, together with a discussion and analysis of such financial
statements in form and substance substantially similar to those that would
otherwise be required to be included in reports required by Section 13(a) or
15(d) of the Exchange Act, as well

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as any other information required thereby, in the time period that such filings
would have been required to have been made under the Exchange Act. The Company
further covenants that it will take such further action as any Holder may
reasonably request, all to the extent required from time to time to enable such
Person to sell Conversion Shares and Warrant Shares without registration under
the Securities Act within the limitation of the exemptions provided by Rule 144
promulgated under the Securities Act, including providing any legal opinions
relating to such sale pursuant to Rule 144. Upon the request of any Holder, the
Company shall deliver to such Holder a written certification of a duly
authorized officer as to whether it has complied with such requirements.

      7.    Miscellaneous.

            (a)   Remedies. In the event of a breach by the Company or by a
Holder, of any of their obligations under this Agreement, such Holder or the
Company, as the case may be, in addition to being entitled to exercise all
rights granted by law and under this Agreement, including recovery of damages,
will be entitled to specific performance of its rights under this Agreement. The
Company and each Holder agree that monetary damages would not provide adequate
compensation for any losses incurred by reason of a breach by it of any of the
provisions of this Agreement and hereby further agrees that, in the event of any
action for specific performance in respect of such breach, it shall waive the
defense that a remedy at law would be adequate.

            (b)   No Inconsistent Agreements. Neither the Company nor any of its
subsidiaries has, as of the date hereof entered into and currently in effect,
nor shall the Company or any of its subsidiaries, on or after the date of this
Agreement, enter into any agreement with respect to its securities that is
inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. Except as disclosed in Schedule
2.1(c) of the Purchase Agreement, neither the Company nor any of its
subsidiaries has previously entered into any agreement currently in effect
granting any registration rights with respect to any of its securities to any
Person. Without limiting the generality of the foregoing, without the written
consent of the Holders of a majority of the then outstanding Registrable
Securities, the Company shall not grant to any Person the right to request the
Company to register any securities of the Company under the Securities Act
unless the rights so granted are subject in all respects to the prior rights in
full of the Holders set forth herein, and are not otherwise in conflict with the
provisions of this Agreement.

            (c)   No Piggyback on Registrations. Neither the Company nor any of
its security holders (other than the Holders in such capacity pursuant hereto or
as disclosed in Schedule 2.1(c) of the Purchase Agreement or Schedule II hereto)
may include securities of the Company in the Registration Statement, and the
Company shall not after the date hereof enter into any agreement providing such
right to any of its securityholders, unless the right so granted is subject in
all respects to the prior rights in full of the Holders set forth herein, and is
not otherwise in conflict with the provisions of this Agreement.

            (d)   Piggy-Back Registrations. If at any time when there is not an
effective Registration Statement covering (i) Conversion Shares or (ii) Warrant
Shares, the Company shall determine to prepare and file with the Commission a
registration statement relating to an offering for its own account or the
account of others under the Securities Act of any of its equity

                                      -11-
<PAGE>

securities, other than on Form S-4 or Form S-8 (each as promulgated under the
Securities Act) or their then equivalents relating to equity securities to be
issued solely in connection with any acquisition of any entity or business or
equity securities issuable in connection with stock option or other employee
benefit plans, the Company shall send to each holder of Registrable Securities
written notice of such determination and, if within thirty (30) days after
receipt of such notice, or within such shorter period of time as may be
specified by the Company in such written notice as may be necessary for the
Company to comply with its obligations with respect to the timing of the filing
of such registration statement, any such holder shall so request in writing,
(which request shall specify the Registrable Securities intended to be disposed
of by the Purchasers), the Company will cause the registration under the
Securities Act of all Registrable Securities which the Company has been so
requested to register by the holder, to the extent requisite to permit the
disposition of the Registrable Securities so to be registered, provided that if
at any time after giving written notice of its intention to register any
securities and prior to the effective date of the registration statement filed
in connection with such registration, the Company shall determine for any reason
not to register or to delay registration of such securities, the Company may, at
its election, give written notice of such determination to such holder and,
thereupon, (i) in the case of a determination not to register, shall be relieved
of its obligation to register any Registrable Securities in connection with such
registration (but not from its obligation to pay expenses in accordance with
Section 4 hereof), and (ii) in the case of a determination to delay registering,
shall be permitted to delay registering any Registrable Securities being
registered pursuant to this Section 7(d) for the same period as the delay in
registering such other securities. The Company shall include in such
registration statement all or any part of such Registrable Securities such
holder requests to be registered; provided, however, that the Company shall not
be required to register any Registrable Securities pursuant to this Section 7(d)
that are eligible for sale pursuant to Rule 144(k) of the Securities Act. In the
case of an underwritten public offering, if the managing underwriter(s) or
underwriter(s) should reasonably object to the inclusion of the Registrable
Securities in such registration statement, then if the Company after
consultation with the managing underwriter should reasonably determine that the
inclusion of such Registrable Securities would materially adversely affect the
offering contemplated in such registration statement, and based on such
determination recommends inclusion in such registration statement of fewer or
none of the Registrable Securities of the Holders, then (x) the number of
Registrable Securities of the Holders included in such registration statement
shall be reduced pro-rata among such Holders (based upon the number of
Registrable Securities requested to be included in the registration), if the
Company after consultation with the underwriter(s) recommends the inclusion of
fewer Registrable Securities, or (y) none of the Registrable Securities of the
Holders shall be included in such registration statement, if the Company after
consultation with the underwriter(s) recommends the inclusion of none of such
Registrable Securities; provided, however, that if securities are being offered
for the account of other persons or entities as well as the Company, such
reduction shall not represent a greater fraction of the number of Registrable
securities intended to be offered by the Holders than the fraction of similar
reductions imposed on such other persons or entities (other than the Company).

            (e)   Failure to File Registration Statement and Other Events. The
Company and the Holders agree that the Holders will suffer damages if the
Registration Statement is not filed on or prior to the Filing Date and not
declared effective by the Commission on or prior to the Effectiveness Date and
maintained in the manner contemplated herein during the Effectiveness Period or
if certain other events occur. The Company and the Holders further agree that it
would not be feasible to ascertain the extent of such damages with precision.

                                      -12-
<PAGE>

Accordingly, if, except as set forth in Section 3(n), (A) the Registration
Statement is not filed on or prior to the Filing Date, or (B) the Registration
Statement is not declared effective by the Commission on or prior to the
Effectiveness Date (or in the event an additional Registration Statement is
filed because the actual number of shares of Common Stock into which the
Preferred Stock is convertible and the Warrants are exercisable exceeds the
number of shares of Common Stock initially registered is not filed and declared
effective with the time periods set forth in Section 2), or (C) the Company
fails to file with the Commission a request for acceleration in accordance with
Rule 461 promulgated under the Securities Act within five (5) days of the date
that the Company is notified (orally or in writing, whichever is earlier) by the
Commission that a Registration Statement will not be "reviewed," or is not
subject to further review, or (D) the Registration Statement is filed with and
declared effective by the Commission but thereafter ceases to be effective as to
all Registrable Securities at any time prior to the expiration of the
Effectiveness Period, without being succeeded immediately by a subsequent
Registration Statement filed with and declared effective by the Commission in
accordance with Section 2 hereof or (E) the Company has breached Section 3(n),
or (F) trading in the Common Stock shall be suspended or if the Common Stock is
delisted from the OTC Bulletin Board or the Nasdaq SmallCap Market (or other
principal exchange on which the Common Stock is traded) for any reason for more
than three Business Days in the aggregate without subsequent listing on another
exchange (any such failure or breach being referred to as an "Event," and for
purposes of clauses (A) and (B) the date on which such Event occurs, or for
purposes of clause (C) the date on which such five Business Day period is
exceeded, or for purposes of clause (D) after more than twenty Business Days, or
for purposes of clause (F) the date on which such three Business Day period is
exceeded, being referred to as "Event Date"), the Company shall pay an amount as
liquidated damages to each Holder in cash equal to 2.0% for the first calendar
month (prorated for shorter periods) and 1.5% per calendar month thereafter
(prorated for shorter periods) of the Holder's initial investment in the
Preferred Stock from the Event Date, less any amount of Preferred Stock that has
been converted and sold by such Holder, until the applicable Event is cured.
Notwithstanding anything to the contrary in this paragraph (e), if (I) any of
the Events described in clauses (A), (B) or (C) shall have occurred, (II) on or
prior to the applicable Event Date, the Company shall have exercised its rights
under Section 3(n) hereof and (III) the postponement or suspension permitted
pursuant to such Section 3(n) shall remain effective as of such applicable Event
Date, then the applicable Event Date shall be deemed instead to occur on the
second Business Day following the termination of such postponement or
suspension.

            (f)   Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the same shall be in writing and signed by the Company
and the Holders of seventy-five percent (75%) of the Registrable Securities
outstanding.

            (g)   Notices. Any and all notices or other communications or
deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earlier of (i) the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile telephone number specified for notice prior to 5:00 p.m., New York
City time, on a Business Day, (ii) the Business Day after the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile telephone number specified for notice later than 5:00 p.m., New York
City time, on any date and earlier than 11:59 p.m., New York City time, on such
date, (iii) the Business Day following the date of mailing, if

                                      -13-
<PAGE>

sent by overnight delivery by nationally recognized overnight courier service or
(iv) actual receipt by the party to whom such notice is required to be given.
The addresses for such communications shall be with respect to each Holder at
its address set forth under its name on Schedule I attached hereto, or with
respect to the Company, addressed to:

                     Boundless Motor Sports Racing, Inc.
                     2500 McGee Drive, Suite 147
                     Norman, Oklahoma 73072
                     Attention: Paul Kruger and Brian Carter
                     Tel. No.: (405) 360-5047
                     Fax No.: (405) 360-5354

or to such other address or addresses or facsimile number or numbers as any such
party may most recently have designated in writing to the other parties hereto
by such notice. Copies of notices to the Company shall be sent to Jackson Walker
L.L.P., 2435 N. Central Expressway, Suite 600, Richardson, Texas, 75080,
Attention: Richard F. Dahlson, Telephone No.: (972) 744-2996, Facsimile No.:
(972) 744-2990. Copies of notices to each Holder shall be sent to Kramer Levin
Naftalis & Frankel LLP, 919 Third Avenue, New York, New York, 10022, Attention:
Christopher S. Auguste, Telephone No.: (212) 715-9100, Facsimile No.: (212)
715-8000.

            (h)   Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the parties and their successors and permitted
assigns and shall inure to the benefit of each Holder and its successors and
assigns. The Company may not assign this Agreement or any of its rights or
obligations hereunder without the prior written consent of each Holder. Each
Purchaser may assign its rights hereunder in the manner and to the Persons as
permitted under the Purchase Agreement.

            (i)   Assignment of Registration Rights. The rights of each Holder
hereunder, including the right to have the Company register for resale
Registrable Securities in accordance with the terms of this Agreement, shall be
automatically assignable by each Holder to any Affiliate of such Holder or any
other Holder or Affiliate of any other Holder of all or a portion of the
Preferred Stock or the Registrable Securities if: (i) the Holder agrees in
writing with the transferee or assignee to assign such rights, and a copy of
such agreement is furnished to the Company within a reasonable time after such
assignment, (ii) the Company is, within a reasonable time after such transfer or
assignment, furnished with written notice of (a) the name and address of such
transferee or assignee, and (b) the securities with respect to which such
registration rights are being transferred or assigned, (iii) following such
transfer or assignment the further disposition of such securities by the
transferee or assignees is restricted under the Securities Act and applicable
state securities laws, (iv) at or before the time the Company receives the
written notice contemplated by clause (ii) of this Section, the transferee or
assignee agrees in writing with the Company to be bound by all of the provisions
of this Agreement, and (v) such transfer shall have been made in accordance with
the applicable requirements of the Purchase Agreement. In addition, each Holder
shall have the right to assign its rights hereunder to any other Person with the
prior written consent of the Company, which consent shall not be unreasonably
withheld. The rights to assignment shall apply to the Holders (and to
subsequent) successors and assigns.

                                      -14-
<PAGE>

            (j)   Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original
and, all of which taken together shall constitute one and the same Agreement. In
the event that any signature is delivered by facsimile transmission, such
signature shall create a valid binding obligation of the party executing (or on
whose behalf such signature is executed) the same with the same force and effect
as if such facsimile signature were the original thereof.

            (k)   Governing Law. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of New York, without
giving effect to any of the conflicts of law principles which would result in
the application of the substantive law of another jurisdiction. This Agreement
shall not be interpreted or construed with any presumption against the party
causing this Agreement to be drafted.

            (l)   Cumulative Remedies. The remedies provided herein are
cumulative and not exclusive of any remedies provided by law.

            (m)   Severability. If any term, provision, covenant or restriction
of this Agreement is held to be invalid, illegal, void or unenforceable in any
respect, the remainder of the terms, provisions, covenants and restrictions set
forth herein shall remain in full force and effect and shall in no way be
affected, impaired or invalidated, and the parties hereto shall use their
reasonable efforts to find and employ an alternative means to achieve the same
or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

            (n)   Headings. The headings herein are for convenience only, do not
constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

            (o)   Shares Held by the Company and its Affiliates. Whenever the
consent or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by the Company or
its Affiliates (other than any Holder or transferees or successors or assigns
thereof if such Holder is deemed to be an Affiliate solely by reason of its
holdings of such Registrable Securities) shall not be counted in determining
whether such consent or approval was given by the Holders of such required
percentage.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -15-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Registration
Rights Agreement to be duly executed by their respective authorized persons as
of the date first indicated above.

                                      BOUNDLESS MOTOR SPORTS RACING, INC.

                                      By: /s/ Brian Carter
                                          Name: Brian Carter
                                          Title: Vice President

                                      PURCHASER:

                                       North Sound Legacy Fund LLC
                                        By: North Sound Capital,
                                           its Manager

                                          By: /s/ Andrew B David
                                             Name: Andrew B. David
                                             Title: General Counsel

                                       North Sound Legacy Institutional Fund LLC
                                        By: North Sound Capital,
                                           its Manager

                                          By: /s/ Andrew B David
                                             Name: Andrew B. David
                                             Title: General Counsel

                                       North Sound Legacy International Fund LLC
                                        By: North Sound Capital,
                                           its Manager

                                          By: /s/ Andrew B David
                                             Name: Andrew B. David
                                             Title: General Counsel

                                      -16-<PAGE>

[* SIGNIFIES THAT CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT.]

                                                                    EXHIBIT 10.7

                                                                 October 1, 2002

The Peoples Publishing Group, Inc.
299 Market Street
Saddle Brook, NJ 07663
Attn: James Peoples

This letter when counterexecuted and delivered to us, shall constitute an
agreement effective as of the above date between John Wiley & Sons, Inc.
("Publisher") and The Peoples Publishing Group, Inc. ("Distributor").

1.   APPOINTMENT.

     a)  Publisher hereby appoints Distributor, and Distributor accepts
         appointment to be, Publisher's sole and exclusive distributor in the
         areas and markets set forth on Schedule 1 (the "Market") for the
         promotion, sale, and distribution of the print materials set forth on
         Schedule 1 (the "Works") provided, however, that Distributor's rights
         with respect to works which are not college textbooks shall be
         non-exclusive. Publisher shall have the right, in its sole discretion
         to withdraw selective Work(s) from this Agreement so long as such Works
         constituted [*]% or less of the Distributor's prior fiscal year total
         purchases and commissions from all the Work(s), and thereby to
         terminate Distributor's distribution rights with respect to such
         Work(s). In the event of such partial withdrawal of the Works,
         Publisher will provide a minimum of nine months written notice.
         However, if Publisher gives notice of withdrawal during the period from
         October 1 through December 31, Distributor may continue to sell such
         Works through September 30 of the following year. Publisher shall give
         Distributor timely advance notice and information concerning all new
         Works it plans to publish that Publisher determines would be
         appropriate for distribution in the Market, including notice of any
         sales restrictions, and one free copy of each new Work on availability.

     b)  All rights not specifically granted herein are retained by Publisher.

2.   DISTRIBUTOR.  Distributor shall perform, at Distributor's expense, the
following duties as well as any other services reasonably necessary to fulfill
its obligations as Distributor hereunder:

     a)  Use its reasonable efforts to sell the Works to the Market;

     b)  Execute at Distributor's sole expense a sales and marketing effort as
         described in Schedule 2 and provide sales and marketing management for
         its staff, inclusive of ongoing training programs;

     c)  Provide all normal and customary pre-sale and post-sale presentations
         and product training requested by schools; that are reasonable and
         consistent with the industry practices of school publishers selling
         college textbooks to secondary schools.

<PAGE>

     d)  Submit to Publisher quarterly written reports to advise Publisher on
         its selling program for the Works, pending sales and complementary
         copies distributed, and attend quarterly meetings with Publisher to
         discuss all aspects of the parties' relationship, including inventory,
         participation in state adoptions, bids, adoption contracts, sales and
         complementary copies. Distributor also shall submit, broken down by
         title, formal inventory forecasts, in May and November of each year
         during the term of this Agreement, an adoption forecast broken down by
         state and an open State forecast including significant adoption
         opportunities for the two year period commencing on the date of this
         Agreement and for each two year period thereafter during the term, and
         a fiscal year sales forecast to aid Publisher and Distributor in
         mutually setting reasonable inventory and sales targets. Distributor
         shall provide Publisher with updates to these forecasts on a quarterly
         basis;

     e)  Attend, at Publisher's request, sales meetings and conventions at which
         Publisher has sponsored exhibits. Publisher agrees to discuss with the
         Distributor the merits of attending such meetings and conventions
         before requesting the Distributor's attendance. Distributor shall pay
         the expenses associated with attending such meetings and conventions;

     f)  Permit Publisher, upon reasonable notice, to inspect Distributor's
         premises;

     g)  [*];

     h)  [*]; and

     i)  Bill customers for the Works and collect on invoices.

3.   PUBLISHER'S DUTIES. Publisher shall perform, at Publisher's expense, the
following duties as well as any other services reasonably necessary to fulfill
its obligations as Publisher hereunder:

     a)  Provide Distributor with leads and information on front and back lists,
         such material to remain the Publisher's property;

     b)  Provide access to all Publisher's appropriate editorial and marketing
         personnel for information on the Works. The primary contact for such
         information shall be the Marketing Systems Support Manager for the
         Publisher's educational division;

     c)  For every year of the term of this Agreement, supply Distributor with
         free copies of the Works solely for demonstration, examination and
         selling purposes, the cost of such copies not to exceed a value of [*]
         percent ([*]%) of the annual net sales of Works by the Distributor, to
         be estimated by Distributor and Publisher. The cost of such free copies
         shall be determined by multiplying the average cost of Works in
         Publisher's inventory by the number of free copies to be supplied to
         Distributor. Such free copies shall remain Publisher's property. Under
         no circumstances shall Distributor sell such free copies to any third
         party;

                                       2
<PAGE>

     d)  Supply Distributor with reasonable amounts of sales literature,
         brochures, and other materials on a regular basis, as available and
         requested by Distributor;

     e)  Fulfill orders submitted by Distributor and bear costs related to
         shipping orders and free copies;

     f)  Enter into State Adoption Contracts and contracts with counties, school
         districts and other local authorities within the state adoption states,
         taking into consideration the Distributor's recommendations and the
         commercial interests of both of the parties; and

     g)  Provide prior and current fiscal year monthly, quarterly and annual
         purchase reports and commission statements, broken down by title and
         presented in a format providing the Distributor with the information
         needed to provide Publisher with the reports and other requirements for
         formal inventory forecasts, adoption forecasts, open state forecasts,
         quarterly sales forecasts and sales targets. Publisher reporting will
         be inclusive to the Work(s) and will exclude other works sold by the
         Publisher to schools.

4.   TERMS OF SALE.

     a)  Distributor may purchase Works to complete orders, from open territory
         states, private and parochial schools and from adoption states, other
         than State Adoption Contracts, from Publisher's available inventory on
         the following terms, in each case payable in U.S. dollars within [*]
         days of invoice: [*].

     b)  Sales shall be f.o.b. Publisher's bindery or warehouse, as applicable.
         Publisher shall bill Distributor for the discounted sales price plus
         postage or other transportation charges.

     c)  Sales under State Adoption Contracts shall be made directly between the
         Publisher and the States. On State Adoption Contracts, the Publisher
         shall pay the Distributor a standard sales commission of [*]. Based on
         the adoption requirements and the commission potential related to a
         particular State Adoption, the parties shall agree on the exact
         commission rate prior to the decision to enter a State Adoption.
         [*].

5.   RETURNS. Distributor shall have the right to return Works in saleable
condition, for full credit against amounts due Publisher from Distributor or, if
there are no such amounts due, for refund. Works received by Distributor
containing manufacturing defects may be returned pursuant to the applicable
provisions of the Uniform Commercial Code.

Distributor shall enact a returns policy for its customers with respect to
Publisher's products that is substantially similar to the policy attached hereto
as Schedule 3.

Publisher shall be responsible for returns resulting from State Adoption
Contracts.

Independent of returns or manufacturing defects, on termination for any reason
including the end of the Term, the Publisher shall use reasonable efforts to
resolve concerns raised by Customers, who purchased Work(s) from the
Distributor, related to the durability of college textbooks compared to high
school textbooks, which are manufactured to NASTA specifications.

                                       3
<PAGE>

6.   SALES REPORTS AND GOALS. Distributor shall semi-annually report to
Publisher its estimated needs by title for Works in the forthcoming 6-month
period. These reports shall be given to Publisher on October 1 and April 1 of
each year during the term. By November 1 of each year during the term,
Distributor shall submit its proposed sales targets for the upcoming fiscal year
to Publisher (the "Original Forecast"). By May 15 of each year during the term,
Distributor and Publisher shall do a re-forecast to determine the overall sales
target for Distributor for the upcoming fiscal year as well as the sales target
for Distributor for specific titles, including the Works that are competitive
with the W.W. Norton works and any other works that Publisher approves for
distribution pursuant to Section 8. If Distributor fails to meet the overall
target set in the Original Forecast in any fiscal year by [*]% or fails to meet
the overall target set in the Original Forecast by [*]% in two fiscal years in a
row, Publisher shall have the option to terminate this Agreement on 150 days
notice or to make Distributor's rights hereunder non-exclusive.

7.   HANDLING OF ORDERS.

     a)  Orders received by Distributor for Works covered under State Adoption
         Contracts shall be promptly turned over to the Publisher. The Publisher
         shall be responsible for all order processing, invoicing, fulfillment,
         collection and bad debt of works sold under State Adoption Contracts.

     b)  In the event Publisher receives any orders or inquiries for Works that
         would fall within the Market, except for State Adoption Contracts,
         Publisher shall promptly turn such orders and inquiries over to
         Distributor. In the event Distributor receives any orders or inquiries
         for Works outside the Market, Distributor shall promptly turn such
         orders and inquiries over to Publisher.

     c)  Distributor shall be responsible for invoicing and for providing to
         Publisher all shipping documents reasonably necessary for fulfillment.

     d)  Publisher shall be responsible for picking, packing and shipping
         orders.

8.   HUGHES-HALLETT CALCULUS AND CONNALLY PRECALCULUS TRAINING FUND. The
Publisher and Distributor shall establish a program to train teacher and
administrator to successfully implement the Hughes-Hallett Calculus and Connally
Precalculus program in high schools. The training program shall be conducted by
Distributor trained and certified instructors. The Distributor shall fund the
training program for Fiscal Year 2003 with a unilateral non-matching $[*] to
train and certify instructors and to pay the expense of a dedicated FRN high
school person. In Fiscal Year 2004 and subsequent years during the Term, the
parties shall agree on an amount to be dedicated to the training program based
on the previous year's sales and sales projections for the upcoming year and [*]
shall [*] be responsible for [*]% of the agreed upon amount for the training
program. The Distributor in consultation with the Publisher and the authors of
the Training Works shall be responsible for developing and executing the
certification and training program. The Publisher shall be provided with
quarterly reports, detailing expenses and shall be given reasonable access to
the records to verify the Distributor reporting. The Publisher shall pay the
Publisher's portion of the expenses so long as such amount does not exceed the
agreed upon total for the year. The use of training funds is limited to direct
expenses related to the certification and training program and the Publisher and
Distributor shall

                                       4
<PAGE>

not be reimbursed for any expense related to the administration, including
personnel, of the fund. Thirty days following the close of fiscal year April 30,
2005, the Publisher and Distributor shall evaluate the results and funding of
the training program and make a decision to continue, modify or terminate the
training program.

9.   DISTRIBUTOR PRODUCT: NON-COMPETE. Distributor may market and sell in the
Market publications and products designed and published expressly for the high
school market, including its own publications as well as publications and
products acquired by Distributor after the date hereof. In this context, it is
understood that the Distributor is actively engaged as a distributor for high
school publishers and nothing in this Agreement shall prohibit the Distributor
from distributing products of any kind, including electronic products, that have
been designed and published expressly for the high school market. Distributor
shall not, however, during the term of this Agreement, act as sales
representative or distributor or sell books or other products for any other
college publisher which publishes books or other products which compete with the
Works in the product lines published by Publisher without the prior written
consent of Publisher. [*].

10.   PROVISIONS FOR CROSS CLAIMING ACCOUNTS. Accounts are occasionally miscoded
as high school or post secondary accounts resulting in the wrong sales
attribution to the Publisher or Distributor. Twice each fiscal year, for the six
month period ending October 31 and April 30, the parties shall make available,
on their respective premises and under supervision, lists of all the active
customers and distributors during the prior six month period for the purpose of
cross claiming, including period sales, and recoding accounts. Payments or
credits, as set forth in Section 4, resulting from the claiming process shall be
due [*] days from the claim date.

11.   WARRANTIES; INDEMNITIES. Publisher represents and warrants to Distributor
that it has full power and authority to enter into this Agreement and to make
the grants herein contained, [*]. Distributor warrants that it has full power
and authority to enter into this Agreement, that it shall make all payments for
salaries, commissions and fees to its employees and independent contractors and
all applicable social security, unemployment insurance, income tax or other
deductions required by law and that it shall not take any action in performing
this Agreement which is illegal or infringes on the rights of any third party.
The parties agree to indemnify each other ("Indemnitee") against and hold the
Indemnitee harmless from any loss (including without limitation counsel fees and
costs), expense or damage occasioned by any claim, demand, suit or recovery
arising out of a breach of any of the foregoing warranties. [*].

12.   TERM AND TERMINATION. This Agreement shall be effective on the above date
and shall continue until September 30, 2005 unless earlier terminated as
provided below. The Agreement shall thereafter be automatically renewed from
year to year unless either party gives notice of termination on or before
January 15th of any year, to be effective the September 30th of

                                       5
<PAGE>

such year. References in this Agreement to "year," "fiscal year" or to "FY"
shall mean the twelve-month period ending on April 30th.

Notwithstanding the foregoing, this Agreement shall terminate immediately in the
event of:

     a)  a substantial breach by a party of any of the terms or conditions of
         this Agreement upon prior written notice if the party breaching this
         Agreement fails to cure such breach within sixty (60) days after
         receipt of such notice;

     b)  upon Publisher's written notice upon Distributors' acquisition and/or
         marketing of books which compete directly with Works identified in
         Schedule 1 except as expressly provided in Section 8 above;

     c)  any receivership, insolvency, bankruptcy, assignment for the benefit of
         creditors, reorganization, or arrangement with creditors whether or not
         pursuant to bankruptcy law, dissolution, or any other similar
         proceeding, whether voluntary or involuntary (any such condition is
         hereinafter referred to as "Bankruptcy") of either party to this
         Agreement;

     d)  on the one-year anniversary of Publisher's written notice to
         Distributor advising that Publisher has acquired all or substantially
         all of the assets related to another publisher's higher education
         business and therefore intends to terminate this Agreement.

     e)  In the event of termination pursuant to subsection (a) above as a
         result of a breach by Distributor or Publisher or pursuant to
         subsection (c) above as a result of the Bankruptcy of Distributor or
         Publisher, all payments due to the respective parties hereunder shall
         become due and payable immediately without regard to any terms of
         payment set forth elsewhere in this Agreement. Upon expiration or
         termination for any reason, Distributor shall provide Publisher with
         information and existing documentation on any pending or prospective
         sales and adoptions of the Works.

13.  WINDING UP. On termination, Distributor and Publisher shall remain
responsible for any payments due in connection with Works shipped prior to the
termination date. Publisher shall accept returns from Distributor pursuant to
Section 5 for [*].

14.  INFRINGEMENT AND PIRACY. Distributor shall promptly report to Publisher all
incidents of copyright infringement of the Works that come to its attention, and
shall cooperate in civil and/or criminal prosecution of the entities engaging in
such activity.

15.  COMPLETE AGREEMENT; AMENDMENT. This Agreement sets forth the complete
understanding of the parties and cannot be waived, amended or modified except in
writing signed by Distributor and Publisher. This Agreement cancels and
supersedes all prior Agreements between the parties in respect to the subject
matter hereof

16.  NO PARTNERSHIP, AGENCY, FRANCHISE OR JOINT VENTURE. It is understood that
Distributor is and shall remain an independent contractor, operating a
separately established business, and not Publisher's agent, partner or legal
representative and that Distributor has no authority to commit Publisher to any
legal obligation to a third-party

                                       6
<PAGE>

17.  GOVERNING LAW. This Agreement shall be construed and interpreted pursuant
to the laws of the State of New York applicable to contracts wholly entered into
and performed in the State of New York. Any legal action, suit or proceeding
arising out of or relating to this Agreement or the breach thereof shall be
instituted in a court of competent jurisdiction in New York County in the State
of New York and each party hereby consents and submits to the personal
jurisdiction of such court, waives any objection to venue in such court and
consents to service of process by registered or certified mail, return receipt
requested, at the last known address of such party.

18.  NOTICES. Notices hereunder shall be in writing and delivered by hand, by
express courier or by facsimile (provided an electronic signal from the
equipment of the recipient indicating receipt is generated), as follows:

If to Publisher:                              If to Distributor:

John Wiley and Sons, Inc.                     The Peoples Publishing Group, Inc.
605 Third Avenue                              299 Market Street
New York, NY                                  10158 Saddle Brook, NJ 07663
FAX: (212) 850-6118                           FAX: (201) 712-1534
Attn: SVP & General Manager,                  Attn: President and CEO
Higher Education Division
(with a copy to General Counsel)

                                       7
<PAGE>

                                        (with copy to Counsel):
                                        John R. Houston
                                        Robins, Kaplan, Miller and Ciresi L.L.P.
                                        2800 La Salle Plaza
                                        800 La Salle Avenue
                                        Minneapolis, MN 55402)

Notices shall be effective upon delivery.

19.   SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon the parties
and their successors and assigns. This Agreement may not be assigned by
Distributor without the prior approval of Publisher, which approval shall not be
unreasonably withheld. Except in connection with the sale of all or
substantially all of the area of business of Publisher related to this Agreement
or a merger or reorganization, this Agreement may not be assigned by Publisher
without the prior approval of Distributor, which approval shall not be
unreasonably withheld.

20.   CONFIDENTIALITY. Each party agrees to keep confidential the terms of this
Agreement. In addition, Distributor agrees to keep confidential and not
disclose, directly or indirectly, to any third person, or use other than for the
purposes set forth in this Agreement, any confidential or proprietary
information relating to Publisher or the Works that Distributor receives from
Publisher or otherwise as a result of the distribution relationship created by
this Agreement.

If this correctly sets forth your understanding of our agreement, please
countersign this letter and return one fully-executed copy to me.

Very Truly yours,

/s/ Susan Kantrowitz
Susan Kantrowitz

ACCEPTED AND AGREED:

JOHN WILEY & SONS, INC.

By: /s/ ________________________
Title: Vice President & National Sales Manager

THE PEOPLES PUBLISHING GROUP, INC.

By: /s/ Brian T. Beckwith
Title: President & CEO

                                       8
<PAGE>

                                   SCHEDULE I

MARKET

The "Market" is defined as the United States, including its territories and
possessions, The Department of Defense Dependent Schools and The American
International Schools and Bilingual Schools, public and private schools, grades
K-12 (including the day and evening enrollments for such schools) and high
school bookstores and distributors whose primary business is reselling college
books to high schools and who represent that book orders are to supply high
schools and high school bookstores (Adams Book Company, LaSalle, Academic Book
Services, Educational Sales, J.J. Flannery, Varsity Books et. al.)

WORKS

All Wiley books and ancillaries in hardcover or paperback format, and other
materials including CDs, tapes, transparencies, web-based and electronic
products, and revisions thereof, suitable to the Market (as determined by
Publisher) published by Publisher.

                                        9
<PAGE>

                                   SCHEDULE 2

[*]

                                       10
<PAGE>

                                   SCHEDULE 3

1.   We shall accept authorized returns for [*] from date of invoice. Please
     call 800-822-1080 for authorization.

2.   Unused books in saleable condition may be returned for credit (less
     shipping and handling).

3.   Please provide the date of purchase and the invoice number.

4.   Out-of-print titles are not accepted more than [*] days after publisher's
     out-of-print notification.

5.   No returns shall be accepted from any customer who has not purchased books
     directly from The Peoples Publishing Group.

                                       11

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