Document:

EX-10.1

 

Exhibit 10.1

SERVICES AND LICENSE AGREEMENT

     This Services and License Agreement (the “Agreement”) is entered into on April 27, 2007
between THE PRINCETON REVIEW, INC., a Delaware corporation (“TPR”), and Higher Edge Marketing
Services, Inc., a California corporation (“Licensee”).

RECITALS

     A. TPR has operated a division that develops and sells to post-secondary educational
institutions (“Educational Institutions”) (i) advertising in the TPR Website and Vanity Books (as
defined below); and (ii) the names and certain other data of students who have consented to have
their personal information furnished by TPR to the Educational Institutions in which they have
expressed interest (“Opt-In Students”). Together, clauses (i) and (ii) constitute the “Marketing
Services” business.

     B. Licensee desires to provide (i) accounts receivable management and collection services,
(ii) sales, marketing and promotional services to Educational Institutions and related contract
management, and (iii) fulfillment and delivery of leads to Educational Institutions (collectively,
the “Licensee Business”) to TPR in connection with the Marketing Services business.

     C. TPR desires to engage Licensee to provide services in connection with the Marketing
Services business, and Licensee desires to provide such services in exchange for a share of
revenues received by TPR from the Marketing Services business, and the parties desire to set forth
the terms and conditions of their business relationship with respect to certain future business
activities.

AGREEMENT

     1. Definitions. In this Agreement:

          1.1 “Accounts Receivable” means amounts billed by TPR to customers under a contract as of the
date hereof which remain unpaid as of the date hereof.

          1.2 “Aggregate PTO Value” means the aggregate dollar value of the paid time off accrued by the
Transferred Employees (as defined in Section 5.1) during their employment by TPR and not used as of
the date hereof.

          1.3 “AS Tech Contracts” means those contracts set forth on Schedule 1.3 attached hereto.

          1.4 “AS Tech Contract Receipts” means actual amounts received by TPR pursuant to each AS Tech
Contract after April 1, 2007.

          1.5 “Business Information” means the items specified in Schedule 1.5 attached hereto.

          1.6 “Completed Marketing Contract” means a contract for Marketing Services which has been
fully performed by TPR as of April 1, 2007.

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          1.7 “Completed Marketing Contract Receipts” means actual amounts received by TPR pursuant to
each Completed Marketing Contract after April 1, 2007.

          1.8 “Contracts” means the AS Tech Contracts, the Completed Marketing Contracts, the Contracts
in Progress and the New Contracts.

          1.9 “Contract In Progress” means a contract for Marketing Services which has not been fully
performed as of the date hereof and which is set forth on Schedule 1.9 attached hereto.

          1.10 “Contract in Progress Receipts” means actual amounts received by TPR pursuant to a
Contract in Progress after April 1, 2007.

          1.11 “License Agreement” means the Prospect Manager License Agreement dated February 16, 2007,
attached hereto as Exhibit A, pursuant to which MRU Holdings, Inc. has granted to TPR a
nonexclusive license to use and to sublicense the use of the Prospect Manager software module.

          1.12 “Marks” means the TPR-owned trademarks and service marks shown in Schedule 1.12 to this
Agreement.

          1.13 “Materials” means tangible marketing materials, contract forms, advertising, and other
materials developed for or historically used in connection with the Marketing Services business,
including any translations or other modifications.

          1.14 “Net Licensee Receipts” means (i) actual amounts received by Licensee pursuant to each
New Contract, minus cash commissions and royalties paid by Licensee under approved arrangements
with third-party traffic providers, plus (ii) any amount paid by TPR to Licensee pursuant to
Section 4.1(b).

          1.15 “New Contract” means a contract entered into after the date hereof between Licensee and
any Educational Institution pursuant to which Licensee shall provide Marketing Services.

          1.16 “Prospect Manager” means the web-based software module owned by MRU Holdings, Inc. and
licensed to TPR pursuant to the License Agreement and which is designed to assist admissions
officers in marketing themselves and managing inquiries and communications with Opt-In Students.

          1.17 “TPR Website” means the Internet website at which TPR enables students to interact with
Educational Institutions.

          1.18 “Vanity Books” means the titles listed in Schedule 1.18.

     2. Licensee Services.

          2.1 Completed Contracts. Licensee will manage TPR’s relationships under each AS Tech
Contract and Completed Marketing Contract and use its reasonable best efforts to take necessary
actions to assist TPR with the collection of Accounts Receivable on behalf of TPR arising under
each such contract.

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          2.2 Contracts in Progress. Licensee will manage TPR’s relationships under each
Contract in Progress and use its reasonable best efforts to perform or manage the performance of
each of TPR’s obligations under each Contract in Progress, including, without limitation, the
provision of all Marketing Services and the management and collection of Accounts Receivable on
behalf of TPR arising under each Contract in Progress.

          2.3 New Contracts. Licensee will use its reasonable best efforts to enter into New
Contracts with Educational Institutions to provide the Marketing Services. Licensee will provide
TPR with written notice and a copy of each New Contract within 10 days of execution. Licensee shall
use a template or form of customer contract substantially similar to a form that has been reviewed
and approved by TPR.

          2.4 Additional Obligations.

               a. Licensee will develop and implement all sales, promotion, and marketing activities related
to the Marketing Services business.

               b. Licensee will provide all account management with respect to the Contracts (including
assistance with collection of information for school profile pages).

               c. Licensee will provide all billing and collection services for each New Contract.

               d. Licensee will create a repository of all selling, marketing and implementation materials
(including all variations of email campaigns) that use the TPR name or mark (“Marketing
Materials”).

               e. Licensee agrees that upon request TPR shall have the right to review the Marketing
Materials at any time and to notify Licensee of its disapproval of any materials. Licensee shall
promptly cease using any Marketing Materials that TPR has disapproved. If TPR disapproves three or
more items within any 12-month period, TPR may require that Licensee obtain prior approval of all
Marketing Materials before their use. TPR’s approval will not be unreasonably withheld or unduly
delayed.

               f. Licensee will obtain TPR’s prior approval of any arrangements with third-party traffic
providers to drive web users to the TPR Website. TPR will not withhold its approval unless, in
TPR’s reasonable judgment, the arrangement is likely to conflict with or interfere with any
existing or anticipated arrangements between TPR and the third party or any other third party.

     3. TPR Services.

          3.1 Vanity Books. TPR will use its reasonable best efforts (i) to continue to publish
the Vanity Books, subject to the publishing decisions of the publisher of such books, or (ii) in
the event that such Vanity Books are no longer being published, to provide substantially similar
advertising inventory in new vanity books as has historically been provided. TPR will notify
Licensee of the deadlines for advertising sales and submission of materials within 15 days after
TPR becomes aware of the deadlines.

          3.2 Trade Shows. If TPR is exhibiting at a trade show, TPR will provide Licensee
space in TPR’s booth to promote the Marketing Services business at no cost to

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Licensee. TPR will have no obligation to provide or subsidize trade show space for Licensee
at any show at which TPR is not otherwise exhibiting on its own.

          3.3 Facility. TPR will provide Licensee with office space at TPR’s headquarters
office and its San Francisco office for use by up to 20 employees of Licensee for the sole purpose
of performing Licensee’s obligations hereunder; provided that TPR will not be obligated to provide
Licensee more space, access or support than historically provided by TPR for the Marketing Services
business and its employees working for such business. TPR will provide the Licensee’s employees
with a desk, phones, and computer support similar to the support provided to full-time employees of
TPR. TPR will have the right to refuse or limit access to the facility if it reasonably determines
that the actions of any of the Licensee’s employees do not comply with the laws, rules and
regulations applicable to the use of the facility.

          3.4 Unused Materials. TPR will deliver to Licensee at Licensee’s direction TPR’s
inventory of unused Materials as of the date hereof. TPR shall provide the Materials to Licensee
at no charge except for the reasonable cost of shipping, if any. TPR will have no responsibility
for developing or providing any Materials to Licensee after the date hereof.

          3.5 TPR Website Commitments. The parties acknowledge that the TPR Website is the
principal means of developing leads to be sold to customers of the Marketing Services business.
Accordingly:

               a. TPR will use its reasonable best efforts (i) to host all web systems necessary for
maintaining the TPR Website in form and at levels substantially similar to those historically
provided for the Marketing Services business prior to the date hereof and (ii) to maintain
availability at 99.0% or greater for the TPR Website and 99.5% for Prospect Manager; provided that
TPR will not be responsible for any failure to provide availability of Prospect Manager if such
failure arises from the actions of Licensee or modifications made by Licensee to Prospect Manager.
TPR’s performance against these service levels shall be measured monthly.

               b. TPR will use its reasonable efforts to increase site traffic levels for the overall TPR
Website, registered users and “recruiter” opt-ins in a manner consistent with historical efforts.

               c. TPR shall provide Licensee with access to the technological capacity to send outbound email
at substantially the same volume historically available to the Marketing Services business prior to
the date hereof. TPR shall make additional capacity available to the Licensee in reasonable
proportion to revenue growth of the Marketing Services business after the date hereof.

               d. TPR will update school profile pages within 5 days after its receipt of a change
request by
the customer, and shall maintain other TPR Website content consistent with TPR’s past practice for
the Marketing Services business. TPR will continue to support the products currently provided
through the Marketing Services business, with current TPR Website placement and inventory levels
(e.g., School Says profiles, Featured Schools, Enhanced Search, any other ads and sponsorship
links, etc.).

               e. TPR will provide Licensee with access to a tool or other procedure that allows Licensee
employees to migrate inquiry forms, deliver email campaigns, and update/correct client profile data
items without assistance from TPR personnel. TPR will

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provide such access as soon as practicable but is under no specific deadline. Upon delivery
of the tool, TPR will have no further obligation under Section 3.5(e).

               f. TPR will consult with Licensee before making any material change its privacy policy for TPR
Website users that adversely affects the Marketing Services business, but any change shall be in
TPR’s sole and absolute discretion. If access and use of user data changes in a manner that
adversely affects the Marketing Services business, TPR and Licensee agree to negotiate in good
faith the royalty provisions or other terms of this Agreement in order to address such effects.

               g. TPR will give Licensee an opportunity to provide feedback on proposed material changes in
the design, roadmap and plan of record of the TPR Website relating to the Marketing Services
business. TPR and Licensee shall consult with each other in good faith regarding any proposed or
actual changes or additions to the TPR Website that may reasonably be expected to affect the
operation of the Marketing Services business.

               h. TPR shall provide to Licensee an informal annual report (i) listing TPR’s current
and
anticipated product offerings; (ii) describing in summary form how TPR plans to implement any new
product offerings; (iii) specifying the products which Licensee may market and sell in connection
with the Marketing Services business; and (iv) describing in summary form the support that TPR will
provide for such marketing activities.

          3.6 No Representation. TPR makes no representation or warranty with respect to the
Materials or any AS Tech Contract, Completed Marketing Contract, Contract in Progress or any
Account Receivable.

     4. Payments and Reports.

          4.1 TPR Payments.

               a. Collection Payments. In consideration for Licensee’s collection services with
respect to the AS Tech Contracts, Completed Marketing Contracts and Contracts in Progress, TPR
shall pay Licensee an amount in cash equal to 12% of the AS Tech Contract Receipts, Completed
Marketing Contract Receipts and Contract in Progress Receipts, respectively.

               b. Contracts in Progress. In consideration for its efforts in obtaining the Contracts
in Progress, TPR shall retain 40% of the Contract in Progress Receipts with respect to each
Contract in Progress. The remaining 60% of the Contract in Progress Receipts with respect to each
such Contract in Progress shall be allocated between TPR and the Licensee proportionately based on
the percentage of the Marketing Services delivered by each party under such Contract in Progress;
provided that the maximum amount of Licensee’s portion of the Contract in Progress Receipts shall
be $676,055.60, and TPR shall pay the Licensee such amount solely by paying the Licensee an amount
in cash equal to 44% of the AS Tech Contract Receipts until Licensee has received such amount,
after which TPR shall have no further obligation to pay Licensee under this Section 4.1(b). The
amounts paid by TPR to the Licensee pursuant to the prior sentence from the AS Tech Contract
Receipts is in addition to the payment set forth in Section 4.1(a) above.

               c. Payment Procedures. Except as otherwise provided in Section 14, TPR will pay the
amounts set forth in this section within 30 days after receipt of the funds by

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TPR to an account designated by Licensee in writing.

          4.2 Licensee Payments.

               a. Royalty. In consideration for TPR’s performance of its obligations under this
Agreement in connection with the Contracts in Progress, the New Contracts and the licenses granted
in Section 6 and 7 of this Agreement, Licensee will pay TPR the following share of Net Licensee
Receipts, subject to the annual minimums specified in the Minimum Payments Table in Section 4.2(c)
below:

	 	 	 	 	 
	Net Licensee Receipts for Calendar Year	 	TPR Share of Net Revenues
	First $4M in 2007
	 	 	35	%
	First $4M in 2008
	 	 	45	%
	First $4M in 2009 and thereafter
	 	 	50	%
	$4M to $10M in any year
	 	 	50	%
	$10M to $20M in any year
	 	 	40	%
	$20M and above in any year
	 	 	30	%

               b. Receipts from Non-TPR Sources. In addition to the other payments required by this
Agreement, Licensee will pay TPR a royalty of 5% of all receipts received by Licensee that are
generated from the sales of any product, good or service of any type to any Educational
Institution.

               c. Minimum Payments. Notwithstanding Sections 4.2(a) and 4.2(b) above, each year
during the term of this Agreement Licensee will pay TPR the greater of (i) the minimum payments set
forth on Schedule 4.2(c) attached hereto for calendar years 2007-2013 (the “Minimum
Payments”) and (ii) the aggregate amount Licensee is obligated to pay TPR pursuant to Sections
4.2(a) and 4.2(b). Licensee shall pay the Minimum Payments as follows:

                    (i) To the extent that Licensee has not paid TPR at least
$200,000 pursuant to Sections 4.2(a)
and 4.2(b) from the date hereof until September 30, 2007, the Licensee shall pay TPR by October 10,
2007 the amount by which $200,000 exceeds the actual amounts paid by Licensee as of September 30,
2007.

                    (ii) To the extent that Licensee has not paid TPR at least
$780,619 pursuant to Sections
4.2(a), 4.2(b) and 4.2(c)(i) from the date hereof until December 31, 2007, the Licensee shall pay
TPR by January 1, 2008 the amount by which $780,619 exceeds the actual amounts paid by Licensee as
of December 31, 2007.

                    (iii) Beginning January 1, 2008, Licensee shall pay TPR the
Minimum Payments quarterly for the
rest of the term of this Agreement in accordance with the following sentence. To the extent that by
the last day of any fiscal quarter Licensee has not paid TPR an amount equal to one-quarter of the
applicable annual Minimum Payment (“Quarterly Minimum”) for such quarter pursuant to Sections
4.2(a) and 4.2(b), the Licensee shall pay TPR within 10 days of the end of such quarter the amount
by which the Quarterly Minimum exceeds the actual amounts paid during such quarter.

          4.3 Reports. Within 10 days after the end of each calendar month, Licensee shall
submit a report in a form prescribed by or acceptable to TPR, showing the cumulative Net

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Licensee Receipts for the applicable period of the calendar year and the royalties then due to
TPR hereunder.

          4.4 Due Date. Licensee shall pay to TPR the payments set forth in Sections 4.2(a) and
(b) monthly no later than 15 days after the end of each calendar month.

          4.5 Delinquency. If any amounts owed to TPR by Licensee are not paid in full by the
due date, TPR will have the right to charge a fee equal to 10% of the overdue amount to reimburse
TPR for its administrative costs related to the delinquency. In addition, the overdue amount shall
bear interest at the annual rate of 18% (or the maximum rate permitted by applicable law, if less
than 18%) from the date such amount was due until paid in full. Unpaid interest charges shall be
compounded annually.

          4.6 Payments in United States Currency. Licensee shall make all payments to TPR in
U.S. dollars. For purposes of calculating any payments requiring conversion to U.S. dollars, local
currency shall be converted to U.S. dollars at the New York selling rate for U.S. dollars quoted by
The Wall Street Journal for the last business day of the month preceding the month in which
the payment is due. Licensee shall bear the expense of any foreign exchange levy imposed on the
purchase of U.S. dollars to comply with this provision.

          4.7 Taxes. All payments hereunder shall be made without deduction for any taxes,
except that a paying party shall deduct and pay to the appropriate government authority, on behalf
of the payee, any taxes which may be owed by such payee and which payor is obligated by law to
withhold. Payor shall provide payee with official receipts or other evidence of payment from such
taxing authorities. If payor fails to withhold or to pay such taxes, payor shall indemnify payee
for any loss or liability (including penalties, interest, and expenses) occasioned by payor’s
failure to withhold or to pay any taxes as required by law. All other taxes and duties imposed now
or in the future on payments by payor to payee, including but not limited to stamp taxes,
value-added taxes, consumption taxes, and sales taxes, shall be solely payor’s responsibility.

     5. Employees.

          5.1 Transferred Employees. Licensee shall offer and
agree, or shall have offered and agreed, to hire each person set forth on Schedule 5.1 to this Agreement (each, a “Transferred
Employee”) effective as of April 13, 2007 at a level of compensation and benefits substantially similar
to that of such Transferred Employee while at TPR. Licensee shall have no responsibility with
respect to the re-assignment or termination of any employee of TPR’s Admissions Services division
who is not listed in Schedule 5.1.

          5.2 Paid Time Off. Licensee will credit each Transferred Employee with the amount of
his or her unused, accrued paid time off with TPR as of the date hereof. No later than 60 days
after the date hereof, TPR shall pay Licensee the Aggregate PTO Value.

          5.3 Accrued Compensation. TPR shall remain liable for (i) bonuses earned by the
Transferred Employees through December 31, 2006 and (ii) commissions earned by the Transferred
Employees from January 1, 2007 through the date hereof to the extent not already paid by TPR.

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     6. Prospect Manager.

          6.1 License. TPR hereby grants Licensee a nonexclusive, world-wide, nontransferable,
non-sublicensable license to reproduce, publicly display, publicly perform, install, execute,
operate, internally transmit and otherwise use the Prospect Manager solely for its use in
connection with the Marketing Services business. TPR shall provide Licensee with a number of
client access licenses sufficient for providing access to Licensee’s employees solely for
Licensee’s internal use. Licensee shall use Prospect Manager only in accordance with the terms and
conditions of this Agreement and the License Agreement. This license will terminate automatically
if this Agreement or the License Agreement terminates. In addition, TPR may terminate this license
without terminating this Agreement if Licensee takes any action or omits to take any action that
would cause TPR to be in breach of the License Agreement and fails to cure within the time provided
by the License Agreement.

          6.2 General Intent. The intent of this Section 6 is to enable Licensee, after the
date hereof, to use Prospect Manager for the Marketing Services business in substantially the same
manner that Prospect Manager was used by TPR prior to the date hereof.

          6.3 Modifications. TPR will consider in good faith any proposed modifications to
Prospect Manager that Licensee may suggest from time to time (“Modifications”), to the extent TPR
determines them appropriate for the Marketing Services business. Upon reasonable request, TPR may
(but shall have no obligation to) give Licensee access to the Prospect Manager source code to
facilitate Modifications consistent with this section. Licensee acknowledges TPR’s obligation to
disclose any such Modifications to MRU Holdings, Inc. and Licensee agrees to assign to MRU
Holdings, Inc. any and all rights of Licensee in any Modifications, provided that Licensee shall
have a license as provided in Section 6.1 to use such Modifications on the terms of this Agreement
and the License Agreement. Except as specified above, Licensee shall not copy, duplicate,
disassemble, decompile, or reverse engineer the Prospect Manager software.

     7. Trademark License.

          7.1 License. TPR hereby grants to Licensee, subject to the terms of this License, a
non-exclusive, world-wide, non-transferable, royalty-free terminable license, without the right to
sublicense, to use the Marks solely in connection with the Marketing Services business while this
Agreement is in effect. Licensee may represent to others in conjunction with Licensee’s legal name
that Licensee is “doing business as Princeton Review Marketing Services,” provided that Licensee’s
business checks, payroll records, stationery, contracts, business licenses, etc. do not give the
impression that Licensee is an affiliate of TPR. At TPR’s request, Licensee shall identify itself
to others as an independent contractor operating under license from TPR.

          7.2 Use of Marks. All use of the Marks by Licensee shall cease immediately upon the
termination of this Agreement for any reason. Licensee shall not, during or after the term of this
Agreement, attack, challenge or oppose the validity of, or TPR’s rights in, or TPR’s registration
of, the Marks. Licensee shall not attempt to register the Marks or any trademark which includes or
is so similar to, or so nearly resembles the Marks, as to be likely to cause deception or confusion
with the Marks.

          7.3 Infringement. Licensee agrees to give notice promptly in writing to TPR of any
infringement or suspected or threatened infringement by a third party of the Marks which

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it learns of at any time during the term of this Agreement. Licensee shall take no further
steps with respect to such infringement pending instructions from TPR. TPR may decide in its sole
discretion whether and what steps should be taken to prevent or terminate infringement of the
Marks, including the institution of legal proceedings and settlement of any claim or proceeding.
TPR shall maintain sole control of any action(s) taken against infringers. Licensee shall join as
a party in any such legal proceedings where necessary for the conduct thereof. Licensee will
provide or procure reasonable assistance, such as the furnishing of documents and information and
the execution of all reasonably necessary documents, as TPR may reasonably request.

          7.4 Quality Control. License shall use the Marks only in accordance with good
trademark practice and in strict conformity with the TPR Usage Guidelines attached hereto as
Exhibit B for all marketing activities and uses of the Marketing Materials. Upon reasonable request
of TPR, Licensee will submit specimens of its use of the Marks to TPR for its review. If, in TPR’s
reasonable judgment, Licensee is not using the Marks in accordance with the standards and policies
set forth herein or is otherwise using the Marks in a manner that is inconsistent with the terms of
this Agreement, then TPR may give Licensee written notice of termination of the license set forth
in Section 7.1, effective on the 30th day after receipt of such notice if Licensee fails to cure
such use to TPR’s reasonable satisfaction.

     8. Ownership.

          8.1 Trademarks. Except for the license granted under Section 7.1 of this Agreement
and subject to the terms and conditions of this Agreement, TPR retains all right, title and
interest, express or implied, in the Marks, and all of the good will of the Marks arising from
Licensee’s use shall inure solely to the benefit of TPR. Except as expressly described in this
Agreement, Licensee shall have no rights to use the Mark or any derivative thereof. Licensee shall
not at any time, whether during the life or after expiration of this Agreement, assert or claim any
right to manufacture, sell or offer for sale or distribute any products or offer any services under
the Marks, or any trademark confusingly similar thereto, or any trademark which may constitute a
colorable imitation of the Marks, except as provided for in this Agreement.

          8.2 Intellectual Property. Each party hereto acknowledges that all intellectual
property rights held by the other party, including, but not limited to, all copyrights, patent
rights, trade secrets, customer information, methodologies, processes, technologies, know how,
development tools or forms or other proprietary information whether registered or not, and the
goodwill associated therewith, are valuable properties belonging to such other party, and all
rights thereto (other than those specific rights licensed hereunder of such party or which are
otherwise owned or licensed by such party) are and shall remain the sole and exclusive property of
such other party.

     9. Limited Exclusivity. While this Agreement is in effect, TPR will not operate or
license any other party to operate a business that competes with the Licensee Business other than
the Marketing Services business. Nothing in this Agreement precludes or limits TPR from using and
licensing others to use Prospect Manager or from marketing products or services to Educational
Institutions that are not Marketing Services as defined in this Agreement.

     10. No Right to Assign or Sublicense. The licenses granted in Sections 6 and 7 apply
solely to Licensee, and Licensee has no right or power to assign or sublicense any of the rights
granted thereunder to anyone else.

     11. Term. Unless sooner terminated under Section 20 below, this Agreement will

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expire seven (7) years from the date of this Agreement without notice to Licensee. Licensee
shall have the opportunity to continue the relationship at the end of the term, subject to the
provisions of Section 19 below.

     12. Inspection of Books and Records. Licensee shall maintain appropriate books and
records in such a manner as to clearly and accurately show the results of operation of the Licensee
Business. All such books and records shall be open at all reasonable times to inspection and
verification by TPR or its duly authorized representatives. TPR shall be entitled at any time
during normal business hours, on 72 hours notice, to have Licensee’s books and records relating to
this License examined or audited at TPR’s expense, and Licensee shall cooperate fully with the
persons making such examination or audit on behalf of TPR. Licensee shall promptly pay to TPR any
amount shown to be due by the examination or audit. If an examination or audit is performed due to
Licensee’s failure to submit any reports or statements required under this License or its failure
to maintain books and records as provided herein, or if the royalties reported by Licensee for any
period of three consecutive months are more than five percent (5%) below the actual royalties due
for such period (as determined by the examination or audit), then Licensee shall, within fifteen
(15) days following notice, pay to TPR the reasonable and customary cost of the examination or
audit as well as all royalties shown to be due. Payment and acceptance of such amounts shall not
constitute a waiver by, or prejudice any right of, TPR to exercise any other remedy of this
License, including termination in accordance with Section 20.

     13. Inspection of Premises. TPR shall have the right at any time to inspect the
premises and equipment used by Licensee to conduct the Licensee Business, in order to evaluate
Licensee’s compliance with this Agreement.

     14. TPR Financing.

          14.1 Licensee shall have the right to borrow from TPR for use as working capital an amount up
to the aggregate AS Tech Contract Receipts, subject to the limitation in Section 14.3 below and the
following conditions: (i) TPR shall not be required to lend Licensee more than 50% of the
aggregate amount of AS Tech Contract Receipts paid by TPR to the Licensee pursuant to Section
4.1(b); (ii) all such funds borrowed by Licensee shall accrue interest monthly until paid to TPR at
the prime rate quoted by TPR’s principal commercial bank; and (iii) all such borrowed funds,
together with accrued interest, shall be paid to TPR no later than the first anniversary of the
date hereof.

          14.2 In addition to the arrangement in Section 14.1, TPR will provide Licensee with a line of
credit which Licensee may draw down for the initial working capital needs of the Licensee Business.
Funds drawn on the line of credit will accrue interest monthly at the annual rate of 18%. All
funds drawn on the line of credit, together with accrued interest, shall be paid to TPR no later
than 18 months from the date hereof. At TPR’s request, Licensee shall execute a promissory note
and such other documents as TPR may reasonably require in connection with the line of credit.

          14.3 The aggregate amount of funds borrowed by Licensee under Section 14.1 and 14.2 shall not
at any time exceed $300,000.

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     15. Restrictions. While this Agreement is in effect:

          15.1 Licensee shall not directly or indirectly, without TPR’s prior written consent, own,
operate, engage in, be employed by, provide assistance to, or have any interest in any other
business that is similar to any of (i) the Marketing Services business, (ii) the business of
providing electronic application tools to Educational Institutions, (iii) TPR’s test preparation
business, or (iv) any business that sells any products, goods or services to Educational
Institutions, or divert any student or customer, or prospective student or customer, to any
competitor of TPR. This provision does not preclude Licensee from generating leads from sources
other than TPR, provided that such leads are sold only to customers of the Marketing Services
business in accordance with this Agreement.

          15.2 Except as provided in Section 5 with respect to the Transferred Employees, neither TPR
nor Licensee shall solicit the other’s employees without the other’s consent; provided, however,
that neither party shall be in breach of this Section 15.2 with respect to any employment related
discussion occurring after the date hereof if such discussions commenced prior to the date hereof.

     16. Licensee Sale.

          16.1 TPR’s prior consent shall be required for (i) any proposed sale by Licensee of
substantially all of the assets associated with the Licensee Business; or (ii) any proposed sale,
transfer, pledge or distribution of any direct or indirect ownership interest that would result in
a change of control of Licensee. Licensee shall furnish such information and documentation as TPR
may request concerning any such proposed transaction.

          16.2 With respect to any transaction subject to Section 16.1, TPR shall have the first right
and option to purchase or acquire the interest proposed to be transferred. Licensee or the
transferring owner shall submit to TPR: (i) a copy of the bona fide written offer from the
proposed purchaser or other appropriate documentation setting forth all of the terms of the
proposed transaction; (ii) detailed financial information for the proposed purchaser transferee and
for any proposed guarantor of such person’s obligations; and (iii) a detailed biographical
statement (including the background of the top-level management and controlling owners of any legal
entity). For 20 days after TPR’s receipt of such documentation, TPR shall have the right to
request additional information concerning the terms of the proposed transaction and/or the proposed
principal parties thereto. TPR may assign its right of first refusal before or after exercising
such right.

          16.3 TPR may exercise its right under Section 16.2 by notifying Licensee in writing of its
election to do so within 20 days following TPR’s receipt of all information requested by TPR under
Section 16.2 above (the “Option Period”). If the transfer is proposed to be made pursuant to a
sale, TPR or its designee may purchase the interest to be transferred on substantially the same
financial terms and conditions offered by the third party, except that TPR shall have the right to
substitute the reasonable equivalent in U.S. dollars for any other form of consideration offered by
the third party. If the transfer is proposed to be made by gift, bequest, or operation of law, TPR
shall designate an accounting firm of recognized international standing to act as an independent
appraiser at TPR’s expense. The appraiser shall determine the fair market value of the interest to
be transferred. TPR may purchase such interest at the fair market value determined by the
appraiser. If the proposed transfer involves assets or interests in addition to the Licensee
Business, TPR may exercise its right as to the entire transaction or as to the Licensee Business
only, and in the latter case the sale price (or appraiser’s

11

 

determination, as the case may be) shall be allocated equitably between the Licensee Business
and any other assets or interests included in the proposed transaction.

          16.4 If TPR does not notify Licensee within the Option Period, then the proposed transfer may
be completed subject to TPR’s consent as provided in Section 16.1, but only on the terms set forth
in the written offer or statement and only to the party therein identified. If the proposed sale,
assignment or transfer is not completed within 120 days after the expiration of the Option Period,
the offer shall be deemed withdrawn or rejected, and the provisions of Section 16.2 shall renew and
again be fully applicable.

     17. Business Information and Confidentiality.

          17.1 Use. Licensee agrees to use the Business Information in accordance with the terms
of this Agreement, the applicable TPR privacy policy and all applicable Federal, state and local
laws, ordinances, rules and regulations relating to data privacy, personal data, transborder data
flow and data protection (collectively, the “Privacy Laws”).

          17.2 Security Measures and Security Breaches. Licensee shall use its best efforts to
maintain all appropriate standard security measures with respect to the Business Information in its
custody and control, including technical, physical and organizational controls, and shall use its
best efforts to maintain the confidentiality, integrity and availability thereof. Licensee shall
use its best efforts to prevent unauthorized access by itself or any of its affiliates or their
respective employees, officers, directors, advisors, representatives or other agents (each, an
“Authorized Person”). If any Authorized Person misplaces or otherwise fails to maintain possession
of the Business Information or their computer, software, access data or device, which contains any
Business Information , within a reasonable period of time (not to exceed five business days) after
Licensee becomes aware of such misplacement or failure to maintain possession, Licensee will notify
TPR’s chief privacy officer. Licensee shall maintain computer security procedures and systems
providing a standard of protection substantially similar to that provided by TPR in the twelve
months prior to the date hereof and will give written notice to TPR of each material change in
Licensee’s security measures which would result in a standard of protection which is less secure
than that which TPR had in place with respect to the Marketing Services business prior to the date
hereof. TPR reserves the right to review Licensee’s systems and facilities used to process
Business Information or containing TPR’s Confidential Information with appropriate notice and at
TPR’s expense, to confirm compliance with the terms of this Section 17. In the event that there is
a suspected or confirmed incident of a breach of security which may involve Business Information,
Licensee will immediately report the circumstances to TPR’s chief privacy officer and, if requested
by TPR, conduct forensic analysis at TPR’s expense unless the security breach arose as a result of
Licensee’s breach of this Agreement, in which case the analysis shall be at Licensee’s expense.
Results of the investigation (to the extent they relate to Business Information ) must be delivered
to TPR in accordance with the confidentiality and notice provisions of this Agreement and marked
“CONFIDENTIAL.”

          17.3 Confidentiality. TPR and Licensee recognize that, in the course of performing the
obligations contemplated by this Agreement, each of them may have access to information considered
by the other party to be confidential or proprietary (including, without limitation, the Business
Information), customer lists and information, the terms of this Agreement and the cost of related
services, products, services, processes, trade secrets, know how, reports, studies, business plans,
forecasts and financial information of any party, or any other information marked as confidential
when delivered, but excluding the existence of this

12

 

Agreement) (collectively, “Confidential Information”). The recipient party agrees that it
shall hold in strict confidence all Confidential Information of the other party and shall use such
Confidential Information solely to perform its obligations under this Agreement. The recipient
party shall use reasonable efforts to maintain the confidentiality of Confidential Information and
in no event in a manner less protective than the manner in which it treats its own Confidential
Information. The foregoing restrictions do not apply to information that: (a) is already known by
the recipient party or its representatives or affiliates and not subject to an obligation of
confidentiality other than under this Agreement, (b) is publicly known or becomes publicly known
through no unauthorized act of the recipient party, its representatives or affiliates, (c) is
received from a third party (provided that such third party is not known by the recipient party or
its representatives or affiliates to be prohibited from disclosing such information) or (d) is
independently developed by the recipient party, its representatives or its affiliates without use
of the disclosing party’s Confidential Information. If Confidential Information is in the opinion
of such party’s counsel required to be disclosed pursuant to law, any regulation, including
regulations of any officially recognized securities exchange, a decision of the courts or a
requirement of any other governmental authority, such Confidential Information may be disclosed
pursuant to such requirement so long as the recipient party provides the disclosing party with
timely prior written notice of the requirement, to the extent such notice is permitted by law, rule
or regulation, and reasonably coordinates with the disclosing party in an effort to limit the
nature and scope of such required disclosure.

     18. Compliance With Laws. Licensee shall conduct the Licensee Business in accordance
with all applicable laws and regulations and at its own expense obtain and maintain all required
permits, certificates, and licenses.

     19. Renewal. Licensee shall have the option to renew the rights granted under this
Agreement when the term expires, subject to the following conditions:

          19.1 Licensee must give written notice to TPR of Licensee’s intention to continue the services
provided hereunder no later than 180 days, and no earlier than one year, before this Agreement
expires.

          19.2 At the time of giving notice and at the expiration of this Agreement, there must be no
uncured material default of this Agreement by Licensee, and Licensee must have a satisfactory
record of customer service and compliance with this Agreement during the expiring term.

          19.3 No later than 60 days before this Agreement expires, Licensee must execute a renewal
license agreement. Provided that Licensee generated revenues hereunder sufficient to pay royalties
in excess of the Minimum Payment in the final two years of the term, the following provisions of
this Agreement will be preserved in the renewal agreement: (i) the licenses to use Prospect
Manager and the Marks in Sections 6 and 7; (ii) the royalty rates in Section 4(a); (iii) the
exclusivity granted in Section 9; (iv) the restrictions is Section 15 and (v) the confidentiality
obligations in Section 17. TPR and Licensee shall establish a new Minimum Payment schedule,
provided that the Minimum Payment shall not increase at a rate greater than the increase in the
rate of actual revenues generated by Licensee hereunder over the last two years of this Agreement.
The term of the renewal agreement will be three years from the date of expiration of this
Agreement.

          19.4 Licensee shall reimburse TPR for its reasonable expenses incurred in connection with the
conditions set out in this Section 19.1, including any attorneys’ fees and/or

13

 

travel costs for TPR’s representatives to meet with Licensee and to review Licensee’s
operations.

          19.5 Licensee and TPR shall execute a mutual general release of claims, except with respect to
calculation and payment of amounts due under this Agreement.

     20. Termination by TPR. In addition to its other rights to terminate this Agreement,
TPR may terminate this Agreement if any of the following conditions occurs, by giving Licensee
written notice of termination:

          20.1 Licensee fails to make any payment to TPR when due, or fails to submit to TPR when due
any report required pursuant to this Agreement, and the default is not fully cured within 15 days
after TPR gives notice of the default to Licensee;

          20.2 Licensee or its principal owner is declared or becomes insolvent or bankrupt or makes an
assignment for the benefit of creditors, or a receiver is appointed for Licensee’s or its principal
owner’s assets or business, or a proceeding is commenced by or against Licensee or its principal
owner for appointment of a receiver or for a reorganization or similar arrangement under any
applicable law and, if involuntary, such proceeding is not dismissed within 60 days of the filing
thereof;

          20.3 Licensee or any direct or indirect owner of Licensee transfers any interest except in
accordance with the terms of Section 16;

          20.4 Licensee abandons the Licensee Business;

          20.5 Licensee or any officer, director, or direct or indirect owner of Licensee: commits any
act which demonstrably threatens TPR’s reputation or the goodwill of the Marks; or pleads guilty
to or is convicted of a felony;

          20.6 Licensee fails to cure a material breach of Section 17 of this Agreement within 15 days
after notice of default;

          20.7 Licensee refuses to permit an inspection of its premises or an examination or audit of
any of the books, records, or financial statements of the Licensee Business under Sections 12 or 13
of this Agreement;

          20.8 Licensee at any time submits any report or statement which Licensee knows or should know
to be false or misleading;

          20.9 Licensee receives any notice that its business operations are in violation of applicable
laws and regulations and Licensee fails to cure the violation promptly. This shall not prevent
Licensee from contesting in good faith the validity or applicability of any purported legal
obligation to the extent and in the manner permitted by law;

          20.10 Licensee purports to assign or sublicense any rights hereunder without TPR’s prior
approval; or

          20.11 Licensee takes any action or omits to take any action that causes a breach of the
License Agreement and fails to cure within the time provided by the License Agreement.

14

 

          20.12 Licensee fails to comply with any material provision of this Agreement not otherwise
specifically referred to in this Section 20 and such default is not cured within 30 days after TPR
gives written notice of default to Licensee.

     21. Obligations on Expiration or Termination. Upon expiration or termination of this
Agreement:

          21.1 Licensee shall immediately cease to use the Marks and the phrase “doing business as
Princeton Review Marketing Services”;

          21.2 TPR may immediately cancel all user IDs and passwords issued to Licensee for Prospect
Manager;

          21.3 Licensee shall cease use of the Business Information and turn over to TPR all
Confidential Information of TPR in Licensee’s possession or control;

          21.4 Licensee shall remain liable for payment of royalties accrued through the effective date
of expiration or termination. In addition, in the event of termination for default by Licensee,
Licensee shall pay to TPR as liquidated damages any remaining Minimum Payments specified in Section
4.2. If Licensee proves to TPR’s satisfaction that Licensee is unable to complete the Minimum
Payments, then at TPR’s request, Licensee shall assign to TPR or its designee all then-existing
uncompleted contracts with customers of the Marketing Services business;

          21.5 Licensee shall grant TPR a world-wide, nonexclusive, fully paid, nontransferable license
to reproduce, distribute, make derivative works of, and publicly display and perform any
advertising material or other material, tool or product created by Licensee for use in the Licensee
Business, and a world-wide, non-exclusive, fully paid, non-transferable license to use any of
Licensee’s trademarks contained in such material, tool or product. Licensee shall retain all its
rights, including copyright, trademark and other intellectual property rights, if any, in and to
such material, tool or product.

          21.6 Licensee shall take all other actions reasonably requested by TPR to facilitate an
orderly transition of the services provided hereunder back to TPR or to its designee and shall take
all other actions reasonably requested by TPR to assist TPR in securing the ownership and use of
such Inventions and all other intellectual property created hereunder.

     22. Insurance and Indemnification.

          22.1 Insurance. Licensee has sole responsibility for all loss or damage arising out
of or relating to the operation of the Licensee Business, or arising out of the acts or omissions
of Licensee or any of its owners, officers, agents, employees, servants or contractors. Licensee
shall obtain, at its own cost and expense, and at all times during the term of this Agreement shall
maintain in full force and effect a commercial general liability policy with coverage limits of not
less than $3 million per claim and no more than customary policy exclusions. The insurance
policies shall expressly insure and protect TPR and its affiliates as additional named insureds.
Licensee shall furnish to TPR certificates of insurance evidencing the proper types and minimum
amounts of required coverage. All certificates shall expressly provide that no less than thirty
(30) days prior written notice shall be given TPR in the event of material alteration to or
cancellation or non-renewal of the coverages evidenced by such certificates.

15

 

          22.2 Indemnification. Licensee shall indemnify and hold TPR harmless against and from
any and all claims, loss, damages or liability, including attorneys’ fees and costs of defense,
arising out of or relating to the operation of the Licensee Business or any breach of this
Agreement by Licensee. TPR shall give Licensee reasonable notice of any suit or action instituted
or threatened against TPR for which TPR intends to seek indemnification hereunder. TPR shall have
the right to direct and control the defense and settlement of any such suit or action, but Licensee
shall have the right to participate in the defense with counsel of its own choosing, at Licensee’s
expense. Licensee’s obligation under this indemnity will survive the termination of this Agreement
and is not limited to the policy limits of any applicable insurance coverage. Licensee shall have
no obligation to indemnify TPR for any security breach, privacy policy violation, or other third
party claim resulting solely from any act or omission by TPR.

     23. General Provisions.

          23.1 No implied waiver. No delay or failure by TPR to exercise any right hereunder or
to take action on account of any default by Licensee, whether in a single instance or repeatedly,
shall constitute a waiver of such right or of such default or of the performance required of
Licensee hereunder.

          23.2 Invalidity. If any provision of this License is deemed by a court or arbitrator
to be invalid or unenforceable, either in its entirety or partially, or because of its application
to particular circumstances, the invalid provision shall be deemed modified to the extent necessary
to render such provision valid or inapplicable, or to be eliminated from this License, if required,
and this License shall be construed and enforced as if such provision had been originally so
modified or eliminated.

          23.3 Entire Agreement. This Agreement and the attached Schedules constitute the
entire agreement and understanding of the parties with respect to the subject matter hereof. This
Agreement may be modified only by a written document executed by authorized representatives of TPR
and Licensee. This Agreement supersedes any prior written or oral agreements, representations,
negotiations, or correspondence concerning the subject matter of this Agreement.

          23.4 Survival of Obligations. All obligations and agreements of Licensee that
expressly or by implication are to be performed after the expiration or termination of this
Agreement shall survive such expiration or termination.

          23.5 Relationship of the Parties. This Agreement does not create the relationship of
principal and agent, joint venturers, or partners between TPR and Licensee, and in no circumstances
shall Licensee be considered an agent of TPR. Licensee agrees that it will do nothing to give the
impression that it has the authority to create any obligation on behalf of or in the name of TPR.

          23.6 Governing Law. The law of the State of New York, U.S.A. shall govern any claim
or controversy regarding the making, entering into, performance, interpretation or enforcement of
this Agreement, without giving effect to New York conflict-of-law rules. However, any issue
regarding arbitrability or enforcement of Section 23.7 shall be governed by the Federal Arbitration
Act.

          23.7 Arbitration. Except as provided in Section 23.8, all claims and controversies
relating to this Agreement shall be submitted to arbitration pursuant to the then-

16

 

prevailing Commercial Arbitration Rules of the American Arbitration Association (the “Rules”)
before a single arbitrator chosen by the parties, but if the parties cannot agree, then chosen as
provided in the Rules. The arbitration proceeding shall be held at the office of the American
Arbitration Association closest to TPR’s principal place of business. The proceedings and all
documents submitted in connection therewith shall be in the English language. The arbitrator may
make any award or awards or enter such order or orders, including an injunction or specific
performance, as may be deemed appropriate by the arbitrator. Except as provided in Section 23.8,
such award or awards shall be the sole remedy between the parties hereto regarding any claims,
counter-claims, issues, or accounting presented or pled to the arbitrator. All awards shall be
promptly payable in United States dollars, free of any tax deduction or offset; and any costs,
fees, or taxes incident to enforcing such award shall, in the maximum permitted by law, be charged
against the party resisting such enforcement. Judgment on the award may be entered by either party
in any court of competent jurisdiction. The award shall include interest from the date of any
damages incurred as a result of a breach of this License until the award is paid in full, at a rate
to be fixed by the arbitrator.

          23.8 Equitable Relief. Nothing herein shall be deemed to bar the right of TPR and any
third-party licensor to obtain injunctive or declaratory relief in any court of competent
jurisdiction against conduct or threatened conduct that will cause it loss or damage.

          23.9 Notices. Any notice pursuant to this Agreement shall be sent by mail, return
receipt requested, postage fully prepaid; by telecopy, with a confirmation copy mailed within three
(3) business days; or by a commercial delivery service of recognized international standing.
Notices shall be addressed as follows:

	 	 	 	 	 
	 

	 	If to Licensee:
	 	Higher Edge Marketing Services, Inc.

77 Battery Street, 2nd Floor

San Francisco, CA 94111

Fax: (415) 962-4055

Attn: Young J. Shin
	 
	 	 	 	 
	 

	 	If to TPR:
	 	The Princeton Review, Inc.

2315 Broadway

New York, NY 10024

Fax: 212-874-0775

Attn: Mark Chernis

     Addresses for notice may be changed at any time by written notice.

17

 

          23.10 Publicity. Licensee acknowledges that TPR is a publicly-traded company as
of the date of this Agreement. Licensee agrees that, as long as TPR continues to be
publicly-traded, Licensee shall provide at least 48 hours advance notice to TPR of any press
releases or similar communications by Licensee in order to permit TPR to evaluate whether the
communication may trigger any disclosure or other obligations of TPR under applicable securities
laws.

	 	 	 	 	 	 	 	 	 	 	 
	THE PRINCETON REVIEW, INC.	 	 	 	HIGHER EDGE MARKETING SERVICES, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Mark Chernis
 

Mark Chernis
	 	 
	 	By:
	 	/s/ Young Shin
 

Young J. Shin
	 	 

18EX-10.2

 

Exhibit 10.2

AGREEMENT AND GENERAL RELEASE

          THE PRINCETON REVIEW, INC., a Delaware corporation (“TPR”), and Young Shin, an individual
residing at 63 Parnassus Ave, San Francisco, CA 94117, and his heirs, executors, administrators,
successors, and assigns (collectively referred to throughout this Agreement as “Employee”), agree
as of April 27, 2007 (the “Effective Date”) that:

          1. Last Day of Employment. Employee’s last day of employment with TPR was April 16,
2007.

          2. Consideration. In consideration for signing this Agreement and General Release and
compliance with the promises made herein, TPR agrees as follows:

               (a) TPR shall pay Employee (i) his earned and accrued bonus for the year ended
December 31,
2006 in the amount equal to $114,736 in accordance with the terms and conditions of TPR’s bonus
plan, and (ii) an amount equal to $4,090.79 for Employee’s accrued paid time off;

               (b) Notwithstanding the termination of Employee’s employment with TPR, subject to approval
of
TPR’s Compensation Committee of its Board of Directors, the post-termination exercise period of
each of Employee’s grants of options to purchase shares of TPR’s common stock shall be extended
until December 31, 2007 for each such agreement (collectively, the “Option Agreements”);

               (c) TPR hereby transfers to Employee a Dell laptop computer, Serial No.
JP0M0270-48634-4AE-0619.

               (e) TPR shall take reasonable actions as soon as practicable after the date hereof to ensure
that Employee (or any entity controlled by Employee) has access to, and control of, the domain name
“higheredge.com”. In its reasonable discretion, TPR may effect the above through a license or a
complete assignment of such domain name, in either case, at no additional cost to Employee.

          3. No Consideration Absent Execution of this Agreement. Employee understands and
agrees that he would not receive the monies and/or benefits specified in paragraph “2” above,
except for his execution of this Agreement and General Release and the fulfillment of the promises
contained herein.

          4. General Release of Claims. Employee knowingly and voluntarily releases and forever
discharges, to the full extent permitted by law, TPR, its parent corporation, affiliates,
subsidiaries, divisions, predecessors, successors and assigns and the current and former employees,
officers, directors and agents thereof individually and in their corporate capacities, and TPR’s
employee benefit plans and programs and their administrators and fiduciaries (collectively referred
to throughout the remainder of this Agreement as “Releasees”), of and from any and all claims,
known and unknown, asserted and unasserted, Employee has or may

1

 

have against Releasees as of the date of execution of this Agreement and General Release,
including, but not limited to, any alleged violation of:

	 	•	 	Title VII of the Civil Rights Act of 1964, as amended;
	 
	 	•	 	The Civil Rights Act of 1991;
	 
	 	•	 	Sections 1981 through 1988 of Title 42 of the United States Code, as amended;
	 
	 	•	 	The Age Discrimination in Employment Act of 1967, as amended;
	 
	 	•	 	The Employee Retirement Income Security Act of 1974, as amended;
	 
	 	•	 	The Immigration Reform and Control Act, as amended;
	 
	 	•	 	The Americans with Disabilities Act of 1990, as amended;
	 
	 	•	 	The Workers Adjustment and Retraining Notification Act, as amended;
	 
	 	•	 	The Occupational Safety and Health Act, as amended;
	 
	 	•	 	The Sarbanes-Oxley Act of 2002;
	 
	 	•	 	The New York State Civil Rights Act, as amended;
	 
	 	•	 	The New York State Human Rights Law, as amended;
	 
	 	•	 	The New York Equal Pay Act, as amended;
	 
	 	•	 	The New York State Labor Law, as amended;
	 
	 	•	 	The New York State Workers’ Compensation Law’s Retaliation provisions, as amended;
	 
	 	•	 	The New York State Disability Benefits law’s Retaliation provisions, as amended;
	 
	 	•	 	The New York City Administrative Code and Charter, as amended;
	 
	 	•	 	The New York City Human Rights Law, as amended;
	 
	 	•	 	Any other federal, state or local civil or human rights law or any other local, state or
federal law, regulation or ordinance;
	 
	 	•	 	Any public policy, contract, tort, or common law; or
	 
	 	•	 	Any claim for costs, fees, or other expenses including attorneys’ fees incurred in these
matters;
	 
	 	•	 	California Family Rights Act — Cal. Govt. Code § 12945.2 et seq.
	 
	 	•	 	California Fair Employment and Housing Act — Cal. Gov’t Code § 12900 et seq.
	 
	 	•	 	Statutory Provision Regarding Retaliation/Discrimination for Filing a Workers
Compensation Claim — Cal. Lab. Code §132a (1) to (4)
	 
	 	•	 	California Unruh Civil Rights Act — Civ. Code § 51 et seq.
	 
	 	•	 	California Sexual Orientation Bias Law — Cal. Lab. Code §1101 et seq.
	 
	 	•	 	California AIDS Testing and Confidentiality Law — Cal. Health & Safety Code §199.20 et
seq.
	 
	 	•	 	California Confidentiality of Medical Information — Cal. Civ. Code §56 et seq.
	 
	 	•	 	California Smokers’ Rights Law — Cal. Lab. Code §96
	 
	 	•	 	California Parental Leave Law — Cal. Lab. Code §230.7 et seq.
	 
	 	•	 	California Apprenticeship Program Bias Law — Cal. Lab. Code §3070 et seq.
	 
	 	•	 	California Wage Payment Act, as amended;
	 
	 	•	 	California Equal Pay Law — Cal. Lab. Code §1197.5 et seq.
	 
	 	•	 	California Whistleblower Protection Law — Cal. Lab. Code § 1102-5(a) to (c)
	 
	 	•	 	California Military Personnel Bias Law — Cal. Mil. & Vet. Code §394 et seq.
	 
	 	•	 	California Family and Medical Leave — Cal. Lab. Code §233
	 
	 	•	 	California Parental Leave for School Visits Law — Cal. Lab. Code §230.7 et seq.

2

 

	 	•	 	California Electronic Monitoring of Employees — Cal. Lab. Code §435 et seq
	 
	 	•	 	Cal/OSHA law, as amended;
	 
	 	•	 	California Consumer Reports: Discrimination Law — Cal. Civ. Code §1786.10 et seq.
	 
	 	•	 	California Political Activities of Employees Act — Cal. Lab. Code §1101 et seq.
	 
	 	•	 	California Domestic Violence Victim Employment Leave Act — Cal. Lab. Code §230.1
	 
	 	•	 	California Voting Leave Law — Cal. Elec. Code §14350 et seq.
	 
	 	•	 	California Court Leave Law — Cal. Lab. Code §230
	 
	 	•	 	N.B., if applicable, San Francisco AIDS-Based Discrimination Ordinance, §3801 et seq.

          5. Covenant not to Sue; No Claims Filed or Assigned. The Employee agrees not to
participate (except pursuant to subpoena or court order and after notice), commence, maintain or
prosecute any action or proceeding of any kind against any of the Releasees arising out of any act,
omission, transaction or occurrence occurring from the beginning of time up to and including the
Effective Date of this Agreement. The Employee further represents and warrants that he has not
previously commenced any action or proceeding of any kind against any of the Releasees. The
Employee further agrees, to the extent permitted by law, not to instigate, encourage, assist or
participate in an action or proceeding commenced by anyone else against TPR or any other Releasee
except as required by law, court order, or subpoena.

          6. Affirmations. Employee affirms that he has not filed, caused to be filed, or
presently is a party to any claim, complaint, or action against TPR in any forum or form. Employee
further affirms that he has been paid and/or has received all leave (paid or unpaid), compensation,
wages, bonuses, commissions, and/or benefits to which he may be entitled and that no other leave
(paid or unpaid), compensation, wages, bonuses, commissions and/or benefits are due to him, except
as provided in this Agreement and General Release. Employee furthermore affirms that he has no
known workplace injuries or occupational diseases and has been provided and/or has not been denied
any leave to which he was entitled under the Family and Medical Leave Act or related state or local
leave or disability accommodation laws.

          Employee also affirms that Employee has not divulged any proprietary or confidential
information of TPR and will continue to maintain the confidentiality of such information consistent
with TPR’s policies and Employee’s agreement(s) with TPR and/or common law.

          Employee further affirms that Employee has not been retaliated against for reporting any
allegations of wrongdoing by TPR or its officers, including any allegations of corporate fraud.
Both Parties acknowledge that this Agreement does not limit either party’s right, where applicable,
to file or participate in an investigative proceeding of any federal, state or local governmental
agency. To the extent permitted by law, Employee agrees that if such an administrative claim is
made, Employee shall not be entitled to recover any individual monetary relief or other individual
remedies.

          7. Non-Disparagement. Employee hereby agrees not to make any statements (orally or in
writing, including, without limitation, whether in fiction or nonfiction) or

3

 

take any action which in any way disparage or which could reasonably be expected to harm the
reputation and/or goodwill of TPR or any other Releasee or in any way, directly or indirectly,
cause or encourage the making of such statements or the taking of such actions by anyone else. TPR
agrees that no member of its current Executive Management Team (which includes all EVPs, the CFO,
COO and CEO) will make any statements (orally or in writing, including, without limitation, whether
in fiction or nonfiction) or take any action which in any way disparage or which could reasonably
be expected to harm the reputation and/or goodwill of Employee or in any way, directly or
indirectly, cause or encourage the making of such statements or the taking of such actions by
anyone else.

          8. Noncompete. Section 2 of TPR Executive Compensation Policy Statement (the “Policy”)
shall remain in full force and effect with respect to the activities of Employee until the later of
(i) the term of such restrictions provided in the Policy and (ii) the termination, expiration or
non-renewal of the Services and Licensing Agreement, dated April 27, 2007, by and between TPR and
Higher Edge Marketing Services, Inc.; provided that Employee’s activities with respect to the
Marketing Services business (as defined in the Services and Licensing Agreement) are hereby
acknowledged by TPR and shall be deemed to be permitted activities pursuant to Section 2 of the
Policy.

          9. Confidentiality/Return of Property. Employee agrees not to disclose any
information regarding the existence or substance of this Agreement and General Release, except to
his spouse, tax advisor, and an attorney with whom Employee chooses to consult regarding his
consideration of this Agreement and General Release. Employee affirms that Employee has returned
all of TPR’s property, except for those documents and confidential information in Employee’s
possession or control in connection with, and subject to the confidentiality provisions of, that
certain Services and License Agreement, by and between TPR and Higher Edge Marketing Services,
Inc., dated as of the date hereof.

          10. Revocation. Employee may revoke this Agreement and General Release for a period
of seven (7) calendar days following the day he executes this Agreement and General Release. Any
revocation within this period must be submitted, in writing, to Cindy Ramsey and state, “I hereby
revoke my acceptance of our Agreement and General Release.” The revocation must be personally
delivered to Cindy Ramsey, or mailed to Cindy Ramsey and postmarked within seven (7) calendar days
of execution of this Agreement and General Release. This Agreement and General Release shall not
become effective or enforceable until the revocation period has expired. If the last day of the
revocation period is a Saturday, Sunday, or legal holiday in the state in which Employee was
employed at the time of his last day of employment, then the revocation period shall not expire
until the next following day which is not a Saturday, Sunday, or legal holiday.

          11. Cooperation. The Employee hereby agrees that he will cooperate with TPR
and their respective counsel in connection with any investigation administrative proceeding or
litigation relating to any matter that occurred during his employment in which he was involved or
of which he has knowledge.

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          12. Governing Law and Interpretation. This Agreement and General Release shall be
governed and conformed in accordance with the laws of the state in New York without regard to its
conflict of laws provision. In the event the Employee or TPR breaches any provision of this
Agreement and General Release, Employee and TPR affirm that either may institute an action to
specifically enforce any term or terms of this Agreement and General Release. Should any provision
of this Agreement and General Release be declared illegal or unenforceable by any court of
competent jurisdiction and cannot be modified to be enforceable, excluding the general release
language, such provision shall immediately become null and void, leaving the remainder of this
Agreement and General Release in full force and effect.

          13. Nonadmission of Wrongdoing. The parties agree that neither this Agreement and
General Release nor the furnishing of the consideration for this Release shall be deemed or
construed at anytime for any purpose as an admission by TPR of any liability or unlawful conduct of
any kind.

          14. Amendment. This Agreement and General Release may not be modified, altered or
changed except upon express written consent of both parties wherein specific reference is made to
this Agreement and General Release.

          15. Entire Agreement. This Agreement and General Release sets forth the entire
agreement between the parties hereto with respect to the limited subject matter hereof, and fully
supersedes any prior obligation of the TPR to the Employee other than the Option Agreements and the
provisions of the Policy which, by their terms, survive Employee’s termination of employment (in
such case, as amended by this Agreement). Employee acknowledges that he has not relied on any
representations, promises, or agreements of any kind made to him in connection with his decision to
accept this Agreement and General Release, except for those set forth in this Agreement and General
Release. Each of TPR and the Employee agree that, to the extent that any of the provisions of this
Agreement cancel, modify, amend or supplement the provisions of other agreements to which they are
a party, such agreements shall be deemed amended by the provisions of this Agreement for the
purpose of effectuating the provisions of this Agreement.

          Employee agrees that this General Release will cover all claims of every nature and kind
whatsoever, which Employee may have, known or unknown, suspected or unsuspected, past or present,
which he may have against TPR, despite the fact that California Civil Code section 1542 may provide
otherwise. Employee expressly waives any right or benefit available to him in any capacity under
the provisions of Section 1542, which provides as follows:

A general release does not extend to the claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which if known
by him must have materially affected his settlement with debtor.

          EMPLOYEE IS HEREBY ADVISED THAT HE HAS UP TO TWENTY-ONE (21) CALENDAR DAYS TO REVIEW THIS
AGREEMENT AND GENERAL

5

 

RELEASE AND TO CONSULT WITH AN ATTORNEY PRIOR TO EXECUTION OF THIS AGREEMENT AND GENERAL
RELEASE.

          EMPLOYEE AGREES THAT ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS AGREEMENT AND
GENERAL RELEASE DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL TWENTY-ONE (21) CALENDAR DAY
CONSIDERATION PERIOD.

          HAVING ELECTED TO EXECUTE THIS AGREEMENT AND GENERAL RELEASE, TO FULFILL THE PROMISES AND TO
RECEIVE THE SUMS AND BENEFITS IN PARAGRAPH “2” ABOVE, EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE
CONSIDERATION, ENTERS INTO THIS AGREEMENT AND GENERAL RELEASE INTENDING TO WAIVE, SETTLE AND
RELEASE ALL CLAIMS HE HAS OR MIGHT HAVE AGAINST TPR.

          Should any provision of this Agreement require interpretation or construction, it is agreed by
the parties that the entity interpreting or construing this Agreement shall not apply a presumption
against one party by reason of the rule of construction that a document is to be construed more
strictly against the party who prepared the document.

          IN WITNESS WHEREOF, the parties hereto knowingly and voluntarily executed this Agreement and
General Release as of the date set forth below:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	THE PRINCETON REVIEW, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Young Shin
 

Young Shin

	 	 
	 	By:
	 	/s/ Mark Chernis
 

Mark Chernis
President
	 	 
	 
	 	 	 	 	 	 	 	 
	Date: April 27, 2007	 	 	 	Date: April 27, 2007	 	 

6

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