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                                                                   EXHIBIT 10.12

                      AGREEMENT REGARDING MANAGEMENT RIGHTS

This agreement will confirm that pursuant to the purchase of shares of stock of
Interactive Knowledge, Inc. (the "Company") by Sequel Limited Partnership
("Investor"), Investor will be entitled to the following contractual management
rights, in addition to rights to nonpublic financial information, inspection
rights, and other rights specifically provided to all investors in the current
financing:

     1). Investor shall be entitled to consult with and advise management of the
         Company on significant business issues, including management's proposed
         annual operating plans, and management will meet with Investor
         regularly during each year at the Company's facilities at mutually
         agreeable times for such consultation and advice and to review progress
         in achieving said plans;

     2). Investor may examine the books and records of the Company and inspect
         its facilities, and will receive upon request information at reasonable
         times and intervals concerning the general status of the Company's
         financial condition and operations, provided that access to
         confidential proprietary information and facilities need not be
         provided;

     3). If Investor is not represented on this Company's Board of Directors,
         the Company shall invite a representative of Investor (which person
         shall be a general partner of Investor) to attend all meetings of its
         Board of Directors (and all committees thereof) in a nonvoting observer
         capacity and, in this respect, shall give such representative copies of
         all notices, minutes, consents and other material that it provides to
         its directors; provided, however, that the Company reserves the right
         to exclude such representative from access to any material or meeting
         or portion thereof if the Company believes upon advice of counsel that
         such exclusion is reasonably necessary to preserve the attorney-client
         privilege, to protect highly confidential proprietary information or
         for other similar reasons. Such representative may participate in
         discussions of matters brought to the Board.

Investor agrees, and any representative of Investor will agree, to hold in
confidence and trust and not use or disclose any confidential information
provided to or learned by it in connection with its rights under this agreement.
The rights described herein shall terminate and be of no further force or effect
upon the earlier to occur of (1) the consummation of the sale of the Company's
securities pursuant to a registration statement filed by the Company under the
Securities Act of 1933 in connection with the firm commitment underwritten
offering of its securities to the general public, or (2) the date upon which
Investor ceases to hold any shares of the Company's stock. The confidentiality
provisions hereof will survive any such termination.

Agreed and accepted this ____ day of August, 1998.

<TABLE>
<S>                                     <C>
SEQUEL LIMITED PARTNERSHIP               Interactive Knowledge, Inc.:
By:  Sequel Venture Partners L.L.C.

By:   /s/ THOMAS WASHING                 By:  /s/ TIMOTHY R. SCHIEWE
     -------------------------------          ----------------------
         Manager                         Title:  President
</TABLE><PAGE>   1
                                                                   EXHIBIT 10.13

                           INTERACTIVE KNOWLEDGE, INC.
                          1033 Walnut Street, Suite 200
                             Boulder, Colorado 80302

                                 August 10, 1998

Mr. Ralph Z. Sorenson
603 Spruce Street
Boulder, Colorado  80302

Dear Bud:

This letter confirms and modifies our prior verbal agreement concerning your
services for Interactive Knowledge, Inc. ("I-KNOW") and the shares of I-KNOW's
common stock to be issued as compensation for those services. I have enjoyed
working with you over the past few months, and am looking forward to having you
with us over the crucial next few months, as we attempt to implement our
business plan, establish industry relationships and begin the roll-out of our
"NetLibrary" technology.

Your services, and the corresponding compensation, would encompass the
following:

1.   Participation as a Board Member. You will be elected as a member of the
     Board of Directors, and as Chairman of the Board. If we are successful in
     attracting a new CEO for I-KNOW and I elect to serve as Board Chair rather
     than CEO, you agree to resign as Board Chair. You will be paid $500 for
     each meeting you attend.

2.   Compensation for Services. In consideration for services you have performed
     in connection with the formation of I-KNOW, the development of its initial
     business strategy and the initial financing, I-KNOW will issue to you
     90,000 shares of common stock immediately, subject to the forfeiture
     arrangement described below.

3.   Additional Services. As a board member and Chair of the Board, you will use
     your efforts to assist management in obtaining support from the publishing
     industry and obtaining adequate financing for future growth, work with
     management and the board to help craft a successful business strategy, and
     provide overall leadership and advice to the board and management.

4.   Vesting. One third of the shares issued to you (or 30,000 shares) shall be
     vested effective August 10, 1998. The remaining shares shall be subject to
     forfeiture, decreasing ratably on a monthly basis over a three-year period
     (1,666.66 shares per month), for as long as you continue to serve as a
     director. If you do not continue as a Chair, shares will continue to vest,
     provided you continue to serve as a director.

Upon receipt of the shares and other compensation described above, you agree
that you shall have no other claims for compensation against I-KNOW, including
any claims for the issuance of any additional shares of stock. If this proposal
is acceptable to you, please execute a copy of this letter

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Mr. Ralph Z. Sorenson
August 10, 1998
Page Two

in the space provided below and return it to me. We will then prepare the
definitive documents covering the issuance of the stock or options.

You will be entitled to defense and indemnification by I-KNOW to the full extent
permitted under I-KNOW's certificate of incorporation. Either I-KNOW's
shareholders or you may terminate the director position at any time.

Sincerely,

/s/ TIMOTHY R. SCHIEWE
-------------------------
Timothy R. Schiewe

Accepted and agreed to this 20th day of August, 1998:

 /s/ RALPH Z. SORENSON
-------------------------
     Ralph Z. Sorenson

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                           INTERACTIVE KNOWLEDGE, INC.
                          1033 Walnut Street, Suite 200
                             Boulder, Colorado 80302

                                 January 4, 1999

Mr. Ralph Z. Sorenson
603 Spruce Street
Boulder, Colorado  80302

Dear Bud:

This letter is executed effective January 4, 1999, to amend and restate the
letter agreement dated August 10, 1998 concerning your services for Interactive
Knowledge, Inc. ("I-KNOW") and the shares of I-KNOW's common stock to be issued
as compensation for those services. These changes have been agreed to in
connection with and in consideration of the agreement to permit you to purchase
shares of I-KNOW's Series A Preferred Stock.

Your services, and the corresponding compensation, would encompass the
following:

1.   Participation as a Board Member. You will be elected as a member of the
     Board of Directors, and as Chairman of the Board. You agree to resign as
     Board Chair at such time as you may be asked to do so by the Board. You
     will not be paid any board fees or compensation other than as outlined
     below.

2.   Compensation for Services. In consideration for services you have performed
     in connection with the formation of I-KNOW, the development of its initial
     business strategy and the initial financing, I-KNOW has issued to you
     90,000 shares of common stock immediately, subject to the forfeiture
     arrangement described below.

3.   Additional Services. As a board member and Chair of the Board, you will use
     your efforts to assist management in obtaining support from the publishing
     industry and obtaining adequate financing for future growth, work with
     management and the board to help craft a successful business strategy, and
     provide overall leadership and advice to the board and management.

4.   Vesting. One third of the shares issued to you (or 30,000 shares) shall be
     vested effective August 10, 1998. The remaining shares shall be subject to
     forfeiture, decreasing ratably on a monthly basis over a three-year period
     (1,666.66 shares per month), for as long as you continue to serve as a
     director. If you do not continue as a Chair, shares will continue to vest,
     provided you continue to serve as a director.

Upon receipt of the shares described above, you agree that you shall have no
other claims for compensation against I-KNOW, including any claims for the
issuance of any additional shares of stock. If this proposal is acceptable to
you, please execute a copy of this letter in the space provided below and return
it to me.

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You will be entitled to defense and indemnification by I-KNOW to the full extent
permitted under I-KNOW's certificate of incorporation. Either I-KNOW's
shareholders or you may terminate the director position at any time.

Sincerely,

/s/ TIMOTHY R. SCHIEWE
Timothy R. Schiewe

Accepted and agreed to
this     day of January, 1999:
     ---

/s/ RALPH Z. SORENSON
------------------------------
Ralph Z. Sorenson

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