Document:

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                                                                    EXHIBIT 10.4

                               LICENSE AGREEMENT
                               -----------------
                              Dated April 5, 2000

     This license agreement (this "Agreement") is between ZD Inc. (hereinafter
"Licensor"), a Delaware corporation having offices at 28 East 28th Street, New
York, NY 10016 and Ziff Davis Publishing Holdings Inc. (hereinafter "Licensee"),
a Delaware corporation having offices at 227 West Monroe Street, Chicago, IL
60606.

     As between Licensor and Licensee, Licensor is the owner of the full right,
title and interest in and to the mark Inter@ctive Investor (hereinafter the
"Mark") and the Inter@ctive Investor logo illustrated on Exhibit A attached
hereto and made a part hereof (the "Inter@ctive Investor Logo").

     Licensee (through the division formerly known as ZD Publishing and acquired
by Licensee) has used and wishes to continue to use the Mark as the title of a
section on the subject of investing online (hereinafter the "Section") in the
Inter@ctive Week publication or any successor publication (hereinafter the
"Publication").

     Licensor wishes to license Licensee to use the Mark as the tide of the
Section in the Publication on the terms and conditions hereof;

     In consideration of the mutual covenants and promises herein provided, the
parties agree as follows:

     1.   Grant of License.  Licensor hereby grants to Licensee, subject to the
          ----------------
terms and conditions of this Agreement, a perpetual, non-transferable (except in
accordance with Section is hereof) royalty-free license to use the Mark
throughout the world (except for the United Kingdom, which is specifically
excluded) (hereinafter the "Territory") during the term of this Agreement as the
title of the Section in the Publication, and on advertising and promotional
materials related to the Section, only in the design attached hereto as Exhibit
8, or in such other design as is approved by Licensor in writing, such approval
not to be unreasonably withheld.  Notwithstanding the foregoing, Licensor shall
have the right, upon notice to Licensee, to withdraw from the Territory any
country in which a third party claims that Licensee's use of the Mark is an
infringement or violation of such third party's rights; provided, however, that
Licensor shall not withdraw any such country from the Territory in the event
Licensee notifies Licensor in writing of its intention to resolve such third
party infringement claim at Licensee's expense; provided, further, that (i)
Licensee shall not enter into any settlement of any such claim in any way that
limits the validity or rights of Licensor in the Mark without Licensor's prior
written consent, and (ii) Licensee agrees to indemnify, defend and hold harmless
Licensor from all liability, damages, low, cost or expense (including but not
limited to reasonable attorneys' fees and expenses) arising from Licensee's
continued use of the Mark in such country of the Territory following Licensor's
notice to Licensee of its intention to withdraw such
<PAGE>

country from the Territory as a result of such third party infringement claim.
The Mark may only be used on print materials and may not be used or appear in
any other medium, including, without limitation, television, the World Wide Web,
the Internet, or online; provided, however, the Mark may appear (x) in other
media if it is part of the cover or another page of the Publication and that
cover or page is displayed in such other media and (y) in Alternative Electronic
Versions (as defined in Section 3(i)(z) of the Amended and Restated License
Agreement between ZDNet and ZD Publishing dated this same date (the "ZDNet
License Agreement")), provided that the Mark shall appear in that electronic
version in locations substantially equivalent to the locations that the Mark
appears in the Publication in print. All rights not expressly granted herein are
reserved to Licensor, including the right to create derivative versions of the
Mark and to use those derivative marks in all media.

     2.   Value, Ownership and Use of the Mark:  Quality Control.
          ------------------------------------------------------

     (a)  Licensee acknowledges that great value is placed on the Mark and the
goodwill associated therewith and agrees not to challenge or contest Licensor's
ownership of the Mark anywhere in the world, or the validity of the license
granted under this Agreement. Nothing in this Agreement or in the performance
thereof, or that might otherwise be implied by law, shall operate to grant
Licensee any right, title or interest in or to the Mark other than as specified
in the license grant herein.

     (b)  Licensee agrees to maintain the quality of all aspects of the
Publication (including any Alternative Mectronic Versions) (e.g., editorial
content, production, advertising, etc.) at a level that is at least commensurate
with the quality of printed periodicals distributed by Licensor immediately
prior to the date of this Agreement. During the term of this Agreement, all use
of the Mark shall be in accordance with the guidelines attached hereto as
Exhibit C, as it may he reasonably amended by Licensor from time to time upon
notice to Licensee (the "Guidelines").

     (c)  Licensee shall provide to Licensor use dates, use specimens and other
similar information relating to Licensee's use of the Mark as necessary to
monitor the quality of the Publication (including any Alternative Electronic
Versions) and obtain and maintain registration for the Mark, as and when
reasonably requested by Licensor. Licensee shall remedy any deficiencies in its
use of the Mark and/or the quality of the Publication (including any Alternative
Electronic Versions) and related advertising and promotional materials upon
notice from Licensor.

     (d)  Licensee shall use the Mark only in it form and manner that is
consistent with proper trademark usage and the Guidelines and only with the
symbols, notices and legends stated in Exhibit C as it may be reasonably amended
from time to time by Licensor upon notice to Licensee.

     (e)  Licensee understands, accepts and agrees that its usage of the Mark
shall inure solely to the benefit of Licensor. Licensee hereby assigns and shall
assign in the future to Licensor all

                                      -2-
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rights it may acquire by operation of law or otherwise in the Mark including,
without limitation, all applications or registrations therefore, along with the
goodwill associated therewith.

     (f)  Licensee shall not knowingly do anything that is inconsistent with or
impairs the validity of the Mark, or that infiinges, derogates, dilutes or is
inconsistent with or impairs the Mark or Licensor's ownership of the Mark or
which is detrimental to the reputation of the Mark or Licensor and shall
cooperate with and reasonably assist Licensor, if such cooperation and
assistance is requested, at Licensor's expense, in protecting and maintaining
Licensor's rights in the Mark, including, without limitation, in any efforts of
Licensor to register the Mark and/or record this Agreement. In the event that
Licensee unknowingly does anything that is inconsistent with or impairs the
validity of the Mark, or that infringes, derogates, dilutes or is inconsistent
with or impairs the Mark or Licensoes ownership of the Mark or which is
detrimental to the reputation of the Marks or Licensor, upon notice from
Licensor, Licensee shall promptly cease such activity.

     (g)  Without limiting the generality of anything in this paragraph 2 or
Exhibit C, Licensee specifically agrees that it shall not use the Mark, or any
name, mark or logo confusingly similar to the Mark, in any corporate, business
or trade name or in or on any electronic or online media, product or service,
whether now known or hereafter devised, except for the title of the Section in
the Publication (including any Alternative Electronic Versions), and shall not
file any trademark applications or domain name applications or registrations or
other indicia of ownership anywhere in the world for the Mark or any name, mark
or logo, confusingly similar to the Mark or the Interactive Investor Logo, or
any name, mark or logo incorporating the Mark or the Interactive Investor Logo.

     (h)  Licensee shall not advertise, market or publicize the Section or the
Publication in a manner suggesting Licensor's sponsorship or endorsement of the
Section or the Publication, other than the use of the Mark as contemplated
herein.

     (i)  Any breach of this Section 2 shall be deemed a material breach of this
Agreement.

     3.   Sublicense.  Licensee may sublicense the rights to use the Mark
          ----------
granted herein in connection with its license of foreign or other editions of
the Publication. In the event of any such sublicense, the sublicensee shall be
bound by the terms and conditions of this Agreement and Licensee shall be liable
for any breach by the sublicensee of such terms and conditions.

     4.   Infringement of the Mark; Prosecution and Maintenance of Mark.
          -------------------------------------------------------------

     (a)  Licensee shall notify Licensor in writing of any infringement or
imitations by others of the Mark which may come to Licensce's attention, and
Licensor shall have fifteen (15) business days to determine whether it shall
take action on account of any such infringements or imitations. Any action which
Licensor takes against a third party on account of any such infringement or
imitation shall be at Licensors expense and any final award granted or any
settlement made shall be

                                      -3-
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paid to Licensor, and Licensee shall have no claim to such award or settlement.
In the event that Licensor does not take any action within such fifteen (15)
business day period, or if Licensor begins to take action against such
infringement or imitation but later abandons such action, Licensee may institute
any suit or take any action on account of any such suspected infringements or
imitations at its own expense and any final award shaft be paid to Licensee,
provided, that (i) Licensee may not settle any litigation involving the Mark in
any way that limits the validity or rights of Licensor in the Mark, without
Licensor's prior written consent, and (ii) Licensee agrees to indemnify and
defend and hold harmless Licensor from all liability, damages, loss, cost or
expense (including but not limited to reasonable attorneys' fees and expenses)
arising from Licensee's institution of such suit or action. Each party shall
cooperate with the other party, at such other party's expense, whenever a party
takes any action against a suspected infiinging or imitating party.

     (b)  Licensor has no obligation to file, or maintain in full force and
effect any applications or registrations for the Mark. Notwithstanding the
foregoing, Licensor will file applications and maintain registrations for the
Mark in Licensor's name at Licensee's reasonable request, provided that Licensee
shall reimburse Licensor for the cost of filing and prosecuting such application
and maintaining any resulting registrations. Licensor and Licensee shall
cooperate with and assist each other in the provision of documents and
information in connection with any registration or application for the Mark as
reasonably necessary to effectuate the procurement and maintenance of any
applications or registrations filed by Licensor for the Mark, whether at
Licensee's request or otherwise.

     5.   Term.

     (a)  This Agreement shall commence on the date set forth above and shall
continue thereafter unless terminated upon mutual agreement of the parties, or
in accordance with Paragraph 5(b) or (c) below (the "Term").

     (b)  In the event that Licensee ceases to use the Mark as the title of the
Section in the Publication in four (4) issues within any twelve month period,
Licensor may request by notice that the Licensee within the next 120 days use
the Mark as the title of the Section in the Publication and supply Licensorwith
evidence of such use. If Licensee falls to so use the Mark within such 120 days,
Licensor shall have the right to terminate this Agreement upon notice to
Licensee.

     (c)  In the event of a breach of this Agreement by either party, the other
party may pursue all available equitable and legal remedies (including without
limitation injunctive relief and monetary damages) but in no event shall the
license granted herein terminate because of either party's breach of its
obligations under this Agreement, except as provided in Paragraph 5(b) above;
provided, however, that in the event Licensee materially breaches this Agreement
at any time after Licensor has been granted injunctive relief or damages, or
other equitable or legal remedy, as a result of a prior breach by Licensee of
this Agreement, Licensor shall have the right to terminate this Agreement upon
written notice to Licensee (i) if Licensee has not cured or taken reasonable
steps

                                      -4-
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to cure such breach within sixty (60) days after notice from Licensor; (ii) if
after having taken reasonable steps to cure such breach within such sixty (60)
day period, Licensee does not at any time thereafter continue to take reasonable
steps to cure such breach; or (iii) if after having taken reasonable steps to
cure such breach within such sixty (60) day period and thereafter, Licensee does
not cure such breach within six (6) months after the original notice from
Licensor.

     6.   Warranty and Indemnification.  Licensee agrees to indemnify Licensor
          ----------------------------
and to save it harmless against all actions, claims, costs, damages or expenses
which may be brought or made against or incurred by Licensor as a result of or
in any way connected with (i) Licensee's conduct of its business, (ii) the
publication, marketing, promotion and distribution of the Publication,
including, without limitation, third-party claims of libel, invasion of privacy
or infringement of copyright based on material published in the Publication, or
(iii) Licensee's use of the Mark. Licensee acknowledges that Licensor makes no
representations or warranties to Licensee with respect to the Mark and Licensee
accepts the license granted herein with such understanding. Licensor agrees to
indemnify Licensee and to save it harmless against all actions, claims, costs,
damages or expenses which may be brought or made against or incurred by Licensee
as a result of or in any way connected with the infringement of third party
trademark rights as a result of Licensor's use of its marks.

     7.   Limitation of Liabililty.  EXCEPT FOR ANY INDEMNNIFICATION LIABILITY
          ------------------------
ARISING UNDER SECTION 6 HEREIN, UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE
LIABLE TO THE OTHER PARTY FOR INDIRECT, INCIDENTIAL, CONSEQUENTIAL, SPECIAL OR
EXEMPLARY DAMAGES (EVEN IF THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES), ARISING FROM ANY PROVISION OF THIS AGREEMENT (INCLUDING SUCH
DAMAGES INCURRED BY THIRD PARTIES, SUCH AS, BUT NOT LIMITED TO, LOSS OF REVENUE
OR ANTICIPATED PROFITS OR LOST BUSINESS.

     8.   No Public Statements.  Neither party may make any public statements or
          --------------------
disclosures concerning this Agreement or its terms to any medium except with the
prior approval of both parties or as required by law or the rules of any
applicable stock exchange or any governmental agency.

     9.   Notices.  Notices shall be, in writing, sent either by hand, by
          -------
certified mail, return receipt requested, postage prepaid, or by Airborne or
other recognized overnight delivery service, all delivery changes prepaid and
addresscd to Licensor and Licensee as follows:

     If to Licensor:          ZD Inc.
                              28 East 28th Street
                              New York, NY 10016
                              Attention:     President
                                             General Counsel
                              Fax No.: (212) 503-3581

                                      -5-
<PAGE>

     If to Licensee:          WS-ZD Acquisition, Inc.
                         c/o Willis Stein & Partners II, L.P.
                         227 West Monroe Street
                         Chicago, IL 60606
                         Attention:     President
                                        General Counsel
                         Fax No.: (312) 422-2418

     or to such other persons or addresses as the person to whom notice is given
may have previously furnished to the other in writing in the manner set forth
above (provided that notice of any change of address shall be effective only
upon receipt thereof).  A notice shall be deemed to have been delivered (i) upon
receipt of such notice by the receiving party in the event such notice is
delivered by hand, (ii) three (3) business days following the deposit of such
notice in the mail if such notice is being delivered by mail, and (iii) one
business day following the deposit of such notice with an overnight delivery
service.

     10.  Governing Law.  This Agreement shall be govemd by and construed in
          -------------
accordance with the laws of the State of New York, without regard to its choice
of law provisions.

     11.  Severability.  In the event that one or more provisions of this
          ------------
Agreement shall at any time be found to be invalid or otherwise rcndered
unenforceable, such provision or provisions shall be severable from this
Agreement, so that the validity or enforceability of the remaining provisions of
this Agreement shall not be affected.

     12.  No Waiver.  Failure of the parties at any time to insist upon strict
          ---------
performance of any term, condition or covenant shall not be deemed a waiver of
its right at any time thereafter to insist on strict performance.

     13.  Entire Agreement.  This Agreement expresses all the rights, duties and
          ----------------
obligations between the parties relating to its subject matter, and it may not
be modified or amended except in a writing signed by both parties.

     14.  No Agency.  This Agreement shall not be so construed as to constitute
          ---------
either party the agent or representative of the other for any purpose
whatsoever, and each party agrees that it has no authority to assume or to incur
any obligation or responsibility, expressed or implied, for, or on behalf of, or
in the name of, the other, or to bind, or attempt to bind, the other in any
manner or thing whatsoever.

     15.  Successors and Assigns.  This Agreement shall be deemed to inure to
          ----------------------
the benefit of and to bind the parties hereto and their respective successors
and permitted assigns.

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<PAGE>

     16.  Further Instruments.  Licensee agrees to execute such further
          -------------------
documents and take such further steps as may be reasonable requested by Licensor
to further the purposes of this Agreement.

     17.  Survival.  Paragraphs 2, 6, 7, 8, 10, 11, 13, 15, and 16, and any
          --------
other provisions which by their terms or sense are intended to survive the
termination of this Agreement, shall survive the terrnination of this Agreement.

     18.  Assignabililty.  Except as part of a merger or the sale of all or
          --------------
substantially all of Licensor's business or the Publication, Licensee shall not
assign or transfer this agreement or its rights or obligations hereunder without
the prior written consent of the Licensor, which consent shall not be
unreasonably withheld.

                                      -7-
<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
on the day and year first above written.

                                             ZD INC.

                                             By: /s/ J. Malcolm Morris
                                                 Name: J. Malcolm Morris
                                                 Title: Sr. Vice President

                                             Ziff Davis Publishing Holdings Inc.

                                             By: /s/ Daniel H. Blumenthal
                                                 Name: Daniel H. Blumenthal
                                                 Title: President

                                      -8-
<PAGE>

     IN WITNESS WHEREOF, the parties have caused th is Agreement to be executed
on the day and year first above written.

                                             ZD INC.

                                             By:  ______________________________
                                                  Name:
                                                  Title:

                                             Ziff Davis Publishing Holdings Inc.

                                             By: /s/ Daniel H. Blumenthal
                                                 Name: Daniel H. Blumenthal
                                                 Title: President

                                      -9-
<PAGE>

                                                                       Exhibit A

                          ["Inter@ctive Investor" logo]

                                      -10-
<PAGE>

                                   Exhibit B

                          ["Inter@ctive Investor" logo]

                                      -11-
<PAGE>

                                   EXHIBIT C

                             Trademark Guidelines

   All terms used in this Exhibit C that are defined in the Agreement shall
              have the meaning ascribed to them in the Agreement.

 1.The Mark licensed under the Agreement shall mean the "Inter@ctive Investor"
    mark.  The Mark licensed under the Agreement shall be used strictly in
   accordance with the specifications set forth in the Agreement and below.

2.The "Inter@ctive Investor" mark shall not be enclosed in any way by a border
   or combined with or incorporated with or in any other words or marks, or
    modified in any other way. The "Inter@ctive Investor" mark shall he of
  sufficient size and on an appropriately contrasting background to make all
                            words plainly legible.

   3.Licensee will use commercially diligent efforts to use the "Inter@ctive
 Investor" mark only as a brand or an adjective followed by the common generic
 term for the mark e.g., the "Inter@ctive Investor" section and shall not use
              the "Inter@ctive Investor" mark in the possessive.

4.Whenever reasonable in the context of a particular use of the Mark, Licensee
   shall identify such trademark as being used under license from Licensor.

  5.The Mark must include the (R) or (TM) symbol, as designated by Licensor,
 and where reasonable, the following notice: "Inter@ctive Investor is either a
 registered trademark or a trademark of ZDNet Inc. in the United States and/or
                               other countries,"

Licensor may reasonably amend these guidelines from time to time upon at least
60 days written notice to Licensee, subject to Licensee's consent, which shall
                         not be unreasonably withheld.

                                      -12-<PAGE>

                                                                    EXHIBIT 10.5

                      LIMITED LIABILITY COMPANY AGREEMENT
                                      OF
                           MAC PUBLICATIONS, L.L.C.

                                 July 31, 1997

     The parties to this agreement are ZIFF-DAVIS INC. ("Ziff-Davis"), a
Delaware corporation with its principal offices at One Park Avenue, New York, NY
10016, MACWORLD COMMUNICATIONS, INC. ("MCI"), a Massachusetts corporation with
its principal office at 501 Second Street, San Francisco, California 94107, and
INTERNATIONAL DATA GROUP, INC. ("IDG"), a Massachusetts corporation with its
principal office at One Exeter Plaza, Boston, Massachusetts 02115.

     Ziff-Davis publishes a number of computer-related publications including
MacUser and MacWeek.  MCI publishes a computer-related publication called
Macworld and is a subsidiary of IDG, which publishes a number of computer-
related publications.

     Ziff-Davis and MCI are all of the members of MAC Publications, L.L.C., a
limited liability company (the "Company") formed under the Delaware Limited
Liability Company Act, 6 Del. (S)(S) 18-101, et seq, as amended from time to
time (the "'Delaware Act").  Ziff-Davis and MCI are hereinafter referred to from
time to time as the "Members".

     The Members wish to set forth certain provisions governing the affairs of
the Company and the conduct of its business in this agreement which shall become
effective on the date set forth above.

     It is therefore agreed as follows:

     1.   Purpose of the Company.  The purpose of the Company shall be to engage
          ----------------------
in (a) the business of developing, producing, publishing and distributing
Macworld, MacUser, MacWeek and other Apple/Macintosh related print publications
(the "Publications") and (b) annuals or special issues or CD-ROM versions of the
Publications. The Company will not engage in the business of producing or
publishing electronic publications (other than the Publications' sites on the
World Wide Web, AOL or similar proprietary networks), trade shows, conferences,
seminars, books, tips and techniques newsletters, training materials,
directories, market information research, television, radio, database or
reference products or any other business not specified in (a) and (b) above
without the majority approval of the Management Board, as set forth in Section
5.1(h) below.

     2.   Registered Office; Registered Agent.  The address of the registered
          -----------------------------------
office of the Company in the State of Delaware is 1209 Orange Street in the City
of Wilmington, County of New Castle, Delaware 19801.  The name of the registered
agent of the Company is Corporation Trust Center.  The address of the registered
agent in the State of Delaware is 1209 Orange Street in the City of Wilmington,
County of New Castle, Delaware 19801.
<PAGE>

     3.   Capital Contributions.
          ---------------------

     3.1  Initial Contributions.
          ---------------------

          (a)  Ziff-Davis shall contribute to the Company all of its rights with
respect to the publications MacUser and MacWeek, together with the business of
publishing and distributing such publications and the assets used in connection
therewith pursuant to an Assignment and Assumption Agreement dated July 31,
1997.

          (b)  MCI and IDG shall contribute, or cause to be contributed, to the
Company all of the rights with respect to the publication, Macworld, together
with the business of publishing and distributing such publication and the assets
used in connection therewith pursuant to an Assignment and Assumption Agreement
dated July 31, 1997.

          (c)  Each of Ziff-Davis and MCI (or IDG on behalf of MCI) shall also
contribute equal cash amounts pursuant to their respective Assignment and
Assumption Agreements and as may be provided in the Preliminary Plan (as such
term is defined below). Those contributions shall be for the sole purpose of
funding the operations of the Company and the Company will not maintain cash
balances in excess of the Company's needs.  The timing and amount of each
contribution by the Members shall be specified by the President (as defined
below) in a notice delivered at least five business days prior to the specified
date of contribution.

          (d)  Notwithstanding Section 3.1(c) above, each Member shall have the
right to review its obligations set forth in such Section and to discontinue
making any capital contributions if the Company's operating income (loss) for
any given year as reflected on the Company's financial statements is more than
25% less favorable than the Company's operating income projected for such year
as reflected in the Preliminary Plan (as defined below) provided, however, such
shortfall exceeds $200,000. If a Member elects to discontinue its capital
contributions pursuant to this Section 3.1(d), the other Member may loan the
Company the amount of the contribution in issue, in return for a promissory note
bearing interest at the prime rate as published in The Wall Street Journal plus
2%, as in effect from time to time. That note shall be repayable out of the
first available cash from day-to-day operations not required for fulfilling
capital needs, as determined by the Company's Chief Financial Officer.

     3.2  Additional Contributions.  Upon a determination at any time or from
          ------------------------
time to time during the term of this agreement by the Management Board (a) to
pursue additional business ventures through the Company, or (b) that the
existing business of the Company requires capital in excess of that previously
contributed, the Members may agree on appropriate additional capital
contributions.  If the President proposes that the Company publish a new
Publication and both Members do not mutually agree that the Company shall
publish the new Publication, then one Member may advance the entire amount
required for such Publication by the Company ir return for a promissory note
bearing interest at the prime rate as published in The Wall Street Journal plus
2%, as in effect from time to time.  That note shall only be repayable out of
the proceeds of the new Publication.  Notwithstanding any provision to the
contrary, nothing in this Section shall permit the Company to engage in any of
the activities listed in the last sentence of Section 1 unless both

                                      -2-
<PAGE>

Members agree nor may the Company engage in any new Publication if the
dissenting Member in good faith believes that such new Publication may have a
material adverse effect on the Company's existing Publications or operations. In
the event the other Member reasonably believes that such new Publication would
not have a material adverse effect on the Company's existing Publications or
operations, despite the dissenting Member's good faith belief to the contrary,
and the dissenting Member has rejected the other Member's offer to fund the new
Publication, the other Member shall have the right to declare that a "deadlock"
condition exists, as described in Section 5.2 below.

     3.3  No Withdrawals.  Except as expressly provided in this agreement, no
          --------------
Member shall be entitled to resign as a Member or withdraw any part of its
capital contribution from the Company.

     3.4  No Liability for Capital Contributions; No interest.  No Member shall
          ---------------------------------------------------
be personally liable for the return of any portion of the capital contributions
of the Members.  The return of the Members' capital contributions shall be made
solely from the Company's assets.  No Member shall have the right to demand or
receive property other than cash for its Interest (as such term is defined in
Section 4 below) in the Company.  No Member shall receive any interest on its
capital contributions.

     4.   Interests.  In return for its capital contributions, each Member will
          ---------
          have a fifty (50%) percent interest (the ""Interests") in the Company
          and a right to 50% of all distributions.

     5.   Management of the Company
          -------------------------

     5.1  The Management Board.
          --------------------

          (a)  The Company shall have a Management Board of four members, which
shall oversee and manage the business and affairs of the Company. It is the
intention that the Company be set up as a partnership, therefore two members of
the Management Board shall be appointed by Ziff-Davis and two shall be appointed
by MCI. The parties hereto intend that such members of the Management Board
shall be high-level executives of Ziff-Davis and IDG, respectively. Therefore,
neither Member shall appoint as a member of the Management Board any person who
is actively involved in the day-to-day operations of the Company. The President
may attend meetings of the Management Board as a nonvoting participant.

          (b)  Each member of the Management Board shall hold office until his
or her successor is appointed or until his or her earlier resignation or
removal. Any member may resign at any time upon written notice to the Members.
Such resignation shall take effect at the time specified therein, and unless
otherwise specified therein no acceptance of such resignation shall be necessary
to make it effective. Any member of the Management Board may he removed, with or
without cause, by the Member which appointed such member. In the event of a
removal or resignation of any member of the Management Board, the resulting
vacancy shall be filled by the Member which appointed the departing member.

                                      -3-
<PAGE>

          (c)  Regular meetings of the Management Board shall be held at least
quarterly and may be held at such places and at such times as the Management
Board may from time to time determine.

          (d)  Special meetings of the Management Board may be held at any time
or place or by conference telephone or similar equipment whenever called by the
President or by any Member. Reasonable notice thereof shall be given by the
person or persons calling the meeting.

          (e)  At all meetings of the Management Board, the presence of at least
one member designated by each Member shall be required for a quorum for the
transaction of business. Any member of the Management Board may vote by proxy
for any absent member appointed by the same Member. The vote of a majority of
the members present, including votes by proxy, if any, at a meeting at which a
quorum is present shall be the act of the Management Board. In case at any
meeting of the Management Board a quorum shall not be present, the members of
the Management Board present may adjourn the meeting from time to time until a
quorum shall be present.

          (f)  Meetings of the Management Board shall be presided over by a
member of the Management Board mutually agreed upon by the Members.

          (g)  Any action required or permitted to be taken at any meeting of
the Management Board, may be taken without a meeting if all members of the
Management Board personally consent thereto in writing, and the writing or
writings are filed with the minutes of proceedings of the Management Board.

          (h)  In addition to any rights expressly reserved in this agreement or
by law to the Members and the Management Board and notwithstanding anything to
the contrary contained in Section 5.3 below, each of the following actions
("Major Decisions") may be taken only with the majority approval of the
Management Board:

                    (i)    making any material change in the nature of the
     business conducted by the Company, including, without limitation, the
     addition of any Publication (subject to Section 3.2 above), the
     discontinuation of any Publication or changing the name of any Publication
     from the names set forth in Section 1 above or licensing the name or other
     material intellectual property of any Publication to any third party or the
     decision to pursue additional business ventures through the Company;

                    (ii)   approval of the Plans (as defined in Section 6 below)
     and any material changes to the Plans;

                    (iii)  (A) hiring, promotion, termination or determination
     of the compensation of the President or any employee whose term of
     employment is equal to or exceeds one year, or (B) the hiring of any
     employee(s) beyond those contemplated in the then current approved Plan or
     (C) the veto of the President's decisions with respect to the hiring,
     promotion, termination or determination of compensation of the publisher,
     or the senior editorial position of any of the Publications;

                                      -4-
<PAGE>

                    (iv)   the distribution of profits of the Company;

                    (v)    the sale, lease or other disposition or encumbrance
     of any of the Company's assets in excess of $25,000 and not in the ordinary
     course of business or any sale or transfer of any interest in the Company,
     except as permitted herein;

                    (vi)   the investment of the Company's earnings in the
     purchase or other acquisition of assets by the Company not in the ordinary
     course of business or of securities or investments other than cash or cash
     equivalents;

                    (vii)  entering into any joint venture or other similar
     arrangement with any party or agreeing to merge or consolidate the Company
     with any other entity, or forming a subsidiary of the Company or
     reorganizing the capital structure of the Company;

                    (viii) any request that a third party provide funds to the
     Company or any incurrence of indebtedness by the Company in respect of such
     funds;

                    (ix)   (A) a guarantee by the Company of any obligation of
     any person or entity or a pledge, or (B) a grant of a security interest in
     any assets of the Company, other than purchase money security interests
     entered into in the ordinary course of business, or (C) use of any asset of
     the Company for the benefit of a party hereto but not for the commensurate
     benefit of the other parties hereto;

                    (x)    any material action taken or agreement entered into,
     including settlement of any Internal Revenue Service audit, by the Tax
     Matters Partner designated under Section 15.4 below;

                    (xi)   any capital expenditure by the Company in excess of
     $10,000, except as approved as part of a Plan;

                    (xii)  entering into any lease, contract or other instrument
     which creates obligations of the Company in excess of $20,000 or greater
     than one year in duration, except as approved as part of a Plan;

                    (xiii) any other transaction not in the ordinary course of
     business;

                    (xiv)  entering into any transaction with any officer, owner
     or affiliate of any Member, except as contemplated herein and except for
     advancements or reimbursement of expenses in the ordinary course of
     business;

                    (xv)   commencement or settlement of any material claim or
     litigation, or a decision to forgo any material claim or litigation in
     excess of $10,000;

                                      -5-
<PAGE>

                    (xvi)   the selection or removal of legal counsel in
     connection with the defense or prosecution of claims or any other actions
     relating to arbitration proceedings, litigation or potential litigation by
     or against the Company;

                    (xvii)  the selection or removal of independent accountants,
     auditors and tax advisers;

                    (xviii) entering into, amending or terminating an employee
     benefit plan; or

                    (xix)   such other matters as may be established by
     agreement of the Management Board.

          (i)  Notwithstanding Section 5.3(e) below, the Management Board shall
have the right to oversee and direct the hiring, promotion, termination or
determination of the compensation of the chief financial officer.

          (j)  Any Member may act alone on behalf of the Company in any claim
against the other Member or IDG for breach of this Agreement, the relevant
Assignment and Assumption Agreement, or any other agreement between the Company
and that other Member, IDG or an affiliate of that other Member.

     5.2  Deadlock.  In the event that the members of the Management Board are
          --------
equally divided over a proposed Major Decision, or the publication of a new
Publication, as described in Section 3.2 above, or any Member repeatedly refuses
to attend meetings of the Management Board after notice thereof, either Member
shall have the right to provide notice to the other Member that a "deadlock"
condition exists.  For a period of 90 days following the delivery of such
notice, the Members shall negotiate in good faith in order to resolve such
deadlock.  If, after such 90 day period, the Members are unable to resolve such
deadlock, the Members shall submit such dispute to non-binding mediation before
a mediator mutually agreed upon by the Members.  If, after mediation for a
period not to exceed 60 days the parties are unable to resolve such deadlock,
either Member may make an offer to purchase the other Member's interest in the
Company.  The Member receiving such an offer must either accept such offer or
purchase the offering member's interest at the offer price and on the terms of
the offer.  The purchase and sale shall be set forth in an agreement with terms
and conditions standard in such a sale, including a two year non-compete and no
solicitation period applicable to the selling Member on terms substantially the
same as the provisions of Sections 10.1 and 10.3 hereof.

     5.3  President.  The daily business and affairs of the Company generally
          ---------
shall be supervised by a President (the "President") chosen by the Members.  The
initial President and Chief Executive Officer shall be Colin Crawford.  The
President will be responsible for overseeing all day-to-day operations of the
Company and the Publications, subject to any limitations contained in the Plans
and in this agreement.  The President will keep the Management Board informed of
all material business issues and any material (i.e., greater than $50,000 in
value) or strategic deviation from the Plans must be disclosed and agreed to by
the Management Board.  In addition, the President shall have the power and
authority to take any of the following actions:

                                      -6-
<PAGE>

          (a)  prepare the Plans and present them to the Management Board for
its approval;

          (b)  implement the Plans in accordance with their terms including the
budget;

          (c)  manage the day-to-day business and affairs of the Company in the
ordinary course of its business, in accordance with the Plans;

          (d)  collect all revenue of the Company and pay all expenses; and

          (e)  approve and carry out the hiring, promotion, termination and the
determination of compensation of employees in accordance with the then current
approved Plan, provided, however, the Management Board (i) shall have control
over the chief financial officer of the Company, as provided in Section 5.1(i)
above, (ii) shall have the right to veto the President's recommendations
regarding the hiring or termination of publisher and the senior editorial
position of any Publication and (iii) shall approve the hiring of any
employee(s) whose term is more than one year.

In addition, the President shall have such other powers and authority as may be
determined from time to time by the Management Board.

     6.   Business Plans.  The Members have reached a preliminary agreement on
          --------------
the terms of an initial 3-Year Business Plan which is attached as Exhibit A
hereto (the "Preliminary Plan") No later than October 1 of this year and each
subsequent year, the President shall prepare and submit to the Management Board
for its approval an annual business plan and budget for the following calendar
year (an "Annual Plan") (the Preliminary Plan and Annual Plan, hereinafter the
"Plans"). The parties hereto agree that the Annual Plan for 1998 shall be
consistent with the Preliminary Plan. Each Annual Plan will include, without
limitation, (i) performance benchmarks for the Company's operations during each
fiscal year covered by such Plan, (ii) overall financial and operating
objectives and projections for the Company for such fiscal year, (iii) the
number of issues of each Publication to be published each year, and (iv) certain
advertising and circulation targets for each Publication, such as ad rates, ad
yields, and circulation and rate base levels.  The Management Board may approve
each Plan as presented by the President or adopt such Plan with such amendments
or changes (including different performance benchmarks) as it sees fit.

     7.   Certain Operational Issues.
          --------------------------

     7.1  Services.  The Company shall have the right to procure centralized
          --------
services from either Member at an at-cost-basis, that is on the same terms that
Members provide such services to their own publications.  It is the intention of
the parties that the Company should procure the following services from either
Member, as is least expensive: circulation, production, accounting, public
relations, facilities and legal.  It is the intention of the parties that the
Member who can provide such services at the lowest cost shall provide such
services to the Company.  Within 30 days of the date hereof, the Company shall
determine which Member shall provide such services for the two year calendar
period following the date hereof based upon the Member's reported 1997 costs for
such services, as set forth in Schedule 7.1 hereto.  At the end of each two year
period following the

                                      -7-
<PAGE>

date hereof, the Company shall revisit its determination as to which Member (or
whether the Company itself or a third party) shall provide such services. The
Company shall pay for such services on a monthly basis promptly following the
receipt of a invoice from the providing Member.

     7.2  Benefits and Employee Leasing Arrangements.  (a) From the date hereof
          ------------------------------------------
until December 31, 1997, each of IDG and Ziff-Davis shall lease to the Company
their employees chosen by the Company to continue to work on the Publications
and shall continue to pay those employees and provide these employees benefits
under their respective existing benefits plans.  Promptly following the date
hereof, IDG and Ziff-Davis shall each enter into a leasing agreement with the
Company consistent with the provisions of this Section 7.2, including terms and
conditions similar to those that are normally included in agreements of that
type.  The Company shall promptly reimburse each Member for all costs and
expenses incurred for salaries, expenses and benefits according to the regular
charging method in effect prior to this date.  The costs of amounts which are
payable for the year, such as a retirement plan contribution or annual bonus,
shall be pro rated between the Member and the Company according to the period
within the year prior to this date and the period after this date.

     (b) Promptly following the date hereof, the Company shall prepare a
benefits plan for its employees, which plan shall not distinguish between former
Ziff-Davis and IDG employees and shall provide benefits substantially equivalent
to those provided prior to that date to the extent practicable.  The Company
shall submit the plan to the Management Board for approval, provided, that, if
the proposed plan is no more expensive than the current IDG plan, the Management
Board's approval shall not be unreasonably withheld.  Commencing January 1,
1998, the Company shall establish its own payroll and take over all employees
and provide these employees with benefits pursuant to the Management Board
approved plan.  If requested by the Company, each of the Members shall, to the
extent permissible, extend the coverage of its respective welfare plans (which
shall not include any employee stock option plan or similar long term
compensation plan) to the Company's employees, to allow for the cost benefits
resulting from participation in a larger group. The Company shall to the extent
permitted by law provide credit for past service with the Members for purposes
of eligibility, vesting and level of benefits under all Company benefit plans.

     8.   Licenses to Members and Third Parties.
          -------------------------------------

     8.1  Macworld Expos.
          --------------

          (a)  With respect to existing, continuously run Macworld Expos held
within the United States, the Company shall (i) grant a sublicense to IDG for
the use of the name "Macworld" and all other trademarks, trade names or service
marks containing the term "Macworld" (collectively, the "'Macworld Marks")
solely in connection with such Macworld Expos and (ii) perform the obligations
set forth in Schedule 8.1 hereto for such Macworld Expos in exchange for a
royalty of 8% of the aggregate revenues of such Macworld Expos held after August
15, 1997, using historical practices to calculate such revenues; provided, that,
(x) if the Company's aggregate costs and expenses in performing the obligations
set forth in Schedule 8.1 hereto exceed such royalty amounts, the Company shall
terminate the license and its obligations set forth in this Section, unless IDG
raises the royalty to an amount greater than the aggregate costs and expenses or
reduces the services

                                      -8-
<PAGE>

required so that the existing royalty becomes greater than the new costs and
expenses and (y) with respect to any Macworld Expos that discontinues events in
its current geographic region of the United States, the sublicense and
obligations set forth in (i) and (ii) above with respect to such geographic
region shall terminate. The license granted hereunder shall be utilized by IDG
for Macworld Expos to extent such services are conducted substantially
consistent with its current scope of operations.

          (b)  With respect to existing, continuously run Macworld Expos held
outside of the United States, the Company shall grant a royalty-free sublicense
to IDG for the use of the Macworld Marks solely in connection with such Macworld
Expos, provided, that (x) the Company shall not perform any services or
obligations with respect to such Macworld Expos, and (y) with respect to any
Macworld Expos that discontinues events in its current geographic region, the
sublicense set forth above with respect to such geographic region shall
terminate. The license granted hereunder shall be utilized for Macworld Expos to
extent such services are conducted substantially consistent with its current
scope of operations.

          (c)  All new sublicenses for new geographic locations in the United
States and internationally between IDG and the Company shall be entered on arms'
length terms and conditions. IDG shall have a right of first refusal for itself
or on behalf of its affiliates for all new sublicenses offered to third parties
for new geographic locations in the United States and internationally.

          (d)  Promptly hereafter, the Company and IDG shall negotiate and
execute a standard form of license agreement consistent with the provisions of
this Section 8.1, including terms and conditions similar to those that are
normally included in agreements of that type.

     8.2  Sublicense to IDG for International Editions.
          --------------------------------------------

          (a)  With respect to existing international editions of Macworld
produced by IDG or its affiliates, the Company shall (a) grant a sublicense to
IDG for the use of the Macworld Marks solely in connection with the publication
of such international editions, and (b) perform the obligations set forth in
Schedule 8.2 hereto in exchange for a royalty of 2% of the aggregate revenues
from such editions; provided, that, (x) in the event the Company's aggregate
costs and expenses in performing the obligations set forth in Schedule 8.2
hereto exceed such royalty amounts, the Company shall terminate the license and
its obligations set forth in this Section unless IDG raises the royalty to an
amount greater than the aggregate costs and expenses or reduces the services
required so that the existing royalty becomes greater than the new costs and
expenses, (y) with respect to any international edition that discontinues
publication, the sublicense set forth above shall terminate, and (z) IDG shall
have the right to terminate any license on not less than 60 days notice to the
Company.

          (b)  With respect to existing international editions of Macworld
produced by non-IDG affiliates, pursuant to the Assignment and Assumption
Agreement, MCI has assigned to the Company all of its rights, and the Company
agreed to assume all of MCI's obligations, under the currently existing licenses
with such non-affiliates.

                                      -9-
<PAGE>

          (c)  All new licenses for new international geographic locations
between IDG and the Company shall be entered on arms' length terms and
conditions. IDG shall have a right of first refusal for itself or on behalf of
its affiliates for all new licenses offered to third parties for new
international geographic locations.

          (d)  Promptly hereafter, the Company and IDG shall negotiate and
execute a standard form of license agreement consistent with the provisions of
this Section 8.2, including terms and conditions similar to those that are
normally included in agreements of that type.

     8.3  MacUser and MacWeek Licenses.
          ----------------------------

          (a)  With respect to existing international editions of MacUser
produced by licenses, pursuant to the Assignment and Assumption Agreement, Ziff-
Davis has assigned to the Company all of its rights, and the Company agreed to
assume all of Ziff-Davis' obligations, under the currently existing licenses
with such licensees.

          (b)  With respect to the existing international edition of MacUser
produced by SOFTBANK Japan or its affiliates, the Company shall grant a
perpetual royalty-free sublicense to SOFTBANK Japan for the use of the "MacUser"
trademark and all other trademarks, trade names or service marks containing the
term "MacUser" (collectively, the "MacUser Marks") solely in connection with the
publication of MacUser in Japan; provided, that, in the event that SOFTBANK
Japan discontinues publication of such publication, the sublicense set forth
above shall terminate. Promptly after this date, the parties shall use good
faith efforts to consider and negotiate a joint venture or other arrangement
with respect to the publication of Macworld in Japan.

          (c)  With respect to the existing international edition of MacUser
produced by Editorial America Iberica ("EAI") or its affiliates, the Company
shall grant a one-year, royalty-free sublicense to EAI for the use of the
"MacUser" trademark in connection with the publication of MacUser in Spain in
order to enable EAI to transition from the MacUser trademark; provided, that, in
the event that EAI discontinues publication of such publication, the sublicense
set forth above shall terminate.

          (d)  Promptly hereafter, the Company and companies set forth in this
Section 8.3 shall negotiate and execute a standard form of license agreement
consistent with the provisions of this Section 8.3, including terms and
conditions similar to those that are normally included in agreements of that
type.

     9.   The Company's Web Sites.
          -----------------------

     9.1  Publication Web Sites.  The Company shall own (except for the sites
          ---------------------
licensed pursuant to the Assignment and Assumption Agreements), produce, publish
and maintain sites on the World Wide Web with respect to the Publications and
Apple/MacIntosh products, including without limitation the sites licensed
pursuant to the Assignment and Assumption Agreements and the ZDNet MAC sites
licensed pursuant to Section 9.2 below (collectively, the "Sites").  With
respect to the Sites:

                                      -10-
<PAGE>

          (a)  Each of the Sites shall have "zdnet.com" as its root domain.

          (b)  The Company shall solicit and sell advertising for insertion in
the Sites at its own cost and expense.

          (c)  At the Company's option, Ziff-Davis or IDG may solicit and sell
non-Apple/MacIntosh advertising on the Sites and shall receive a 20% commission
on all ads sold.

          (d)  IDG and Ziff-Davis shall each maintain reciprocal links on its
sites to the Sites, the location of such links to be editorially appropriate.

          (e)  IDG and Ziff-Davis shall modify their search engines at
idgnet.com and zdnet.com, respectively, so that the scope of such search engines
includes the content located on the Sites.

          (f)  The Company hereby grants IDG and Ziff-Davis a non-exclusive,
royalty-free, perpetual license and right to create excerpts and links to
content located on the Sites, including, without limitation, news content and
products.

          (g)  The Company shall maintain the archival content of the Sites
consistent with MCI's existing practices with respect to Macworld, and Ziff-
Davis' existing practices with respect to MacWeek and MacUser.

          (h)  All advertising revenue and web traffic statistics resulting from
access to the Sites shall be credited to Company for audit purposes, provided
that, advertising revenue and web traffic statistics shall be attributed first
to ZDNet, and then IDG to the extent audit rules of the relevant reporting
entity permit.  The Company shall provide ZDNet and IDG with such records and
data reasonably required for their auditing needs and shall reasonably
accommodate ZDNet and IDG in the Company's selection of its reporting entity.
The Company shall maintain complete and accurate records of such web traffic and
shall report such traffic consistent with the provisions of this Section.

          (i)  The Company shall establish and maintain a link to Ziff-Davis'
shareware library and shall not maintain any link to any non-Company site which
offers shareware products or software.  If the Company publishes and maintains a
site which offers shareware products or software, in no event shall the Company
display or promote such site more prominently than Ziff-Davis' shareware
library.

          (j)  With respect to the sites on the World Wide Web contributed by
Ziff-Davis and IDG pursuant to the Assignment and Assumption Agreements (the
"Contributed Sites"), the Company shall cause the Contributed Sites to perform,
and the quality of its content to be, in accordance with or better than current
ZDNet standards.

     9.2  ZDNet MAC.  The Company, pursuant to a license from ZDNet, an
          ---------
affiliate of Ziff-Davis, shall produce, publish and maintain a site to replace
the ZDNet MAC channel and each of the subsidiary ZDNet MAC sections currently
produced, published and maintained by ZDNet,

                                      -11-
<PAGE>

except for "Mac Download," which shall continue to be produced, published and
maintained by ZDNet. Ziff-Davis and the Company shall agree upon a new name for
such site, as well as the look and feel of such site. With respect to existing
subsidiary ZDNet MAC channel sections which are produced, published or
maintained by third parties, Ziff-Davis shall use commercially reasonable
efforts to assign and transfer such rights and obligations to the Company.
Thereafter, the Management Board may continue, modify or terminate such rights
and obligations. Furthermore, the Company shall maintain the site reasonably
consistent with the existing ZDNet "look and feel", and the site shall perform
and the quality of its content shall be in accordance with or better than
current ZDNet standards.

     10.  Special Covenants.
          -----------------

     10.1 Non-Compete.  During the period that Ziff-Davis is a member, Ziff-
          -----------
Davis (nor any of its respective subsidiaries or affiliates) shall not, and
during the period that MCI is a member, neither MCI nor IDG shall (nor any of
its respective subsidiaries or affiliates) publish, or own more than a 5%
interest in any business that publishes a print magazine for distribution
primarily in the United States which is directly competitive with the
Publications and principally devoted to computers and other products of Apple
Inc.  or its licensees and assignees, unless such publication or other interest
is owned by the Company.  Notwithstanding anything to the contrary contained in
this Section, Ziff-Davis and IDG (and any of their respective subsidiaries or
affiliates) may continue to publish and operate all of their present
publications, services and products, so long as such products do not
substantially change to become significantly more focused on the products of
Apple or its licensees or assignees, and may publish or otherwise participate in
print magazines outside of the Company which are directed generally at home,
educational or personal computing, so long as any such publications do not
provide substantially disproportionate coverage to Apple products and services.
Notwithstanding the foregoing, Ziff-Davis may continue to publish and operate a
shareware library which contains products of Apple and its licensees and
assignees.

     10.2 Confidentiality.  Each of the Members and IDG shall keep confidential
          ---------------
and shall not (a) disclose to any person or (b) use in any manner other than on
behalf of the Company or as may otherwise be specifically permitted under this
agreement or by a specific determination of the Management Board, or as
otherwise required by any applicable legal or regulatory authority, any
Confidential Information.  "Confidential Information" means any nonpublic,
confidential or proprietary information of the Company, or relating to any of
the Publications other than information which is or becomes generally available
to the public other than as a result of a breach of this agreement by the
disclosing Member or IDG.

     10.3 Non-Solicitation/No Hire.  During the period that Ziff-Davis is a
          ------------------------
member, Ziff-Davis (nor any of its respective subsidiaries or affiliates) shall
not, and during the period that MCI is a member, neither MCI nor IDG shall (nor
any of its respective subsidiaries or affiliates) solicit, employ or hire, as an
employee or consultant, for its business or on behalf of any third party any
individual who after this date is an employee or consultant of the Company
(unless the services of such employee or consultant ceased more than three
months before such solicitation or hire or such employee or consultant was fired
or laid-off by the Company).  Notwithstanding the foregoing, (i) the limitation
set forth above shall not apply in the event that the President approves of a
Member

                                      -12-
<PAGE>

hiring the Company employee, (provided, the President shall act in an even
handed manner as between Ziff-Davis on the one hand and MCI and IDG on the
other) and (ii) none of Ziff-Davis, MCI or IDG shall encourage the resignation
or termination of any individual who after this date is an employee or
consultant of the Company.

     10.4 Remedies.  Each of Ziff-Davis, MCI and IDG acknowledge that the remedy
          --------
at law for breach of any of their respective covenants under this Section 10
will be inadequate and, accordingly, in the event of any breach or threatened
breach by any of them of the provisions of this Section 10, the other parties
shall be entitled, in addition to all other remedies, to an injunction
restraining any such breach, without bond or other security being required.

     11.  Distributions.  Distributions shall be made to the Members at the
          -------------
times and in the aggregate amounts unanimously determined by the Management
Board.  Such distributions shall be made among the Members pro rata based on
their respective Interests.  Notwithstanding the foregoing, distributions made
in connection with a sale of all or substantially all the Company's assets or a
liquidation of the Company shall be made in accordance with the positive capital
account balances of the Members (determined after giving effect to the
allocation of all gains and losses realized in connection with the liquidation)
within the time period set forth in Treasury Regulation Section 1.704-
1(b)(2)(ii)(b)(3), to the extent thereof and thereafter, in proportion to the
Members' respective Interests.  This Section 11 shall not apply to repayment of
Member loans made pursuant to Sections 3.1 or 3.2 hereof.

     12.  Transfer Restrictions.  During the period beginning on the date of
          ---------------------
this agreement, and ending five years from such date, no Member may sell,
transfer, assign, pledge, mortgage or otherwise dispose of or encumber all or
any portion of its Interests in the Company, or enter into any agreement as a
result of which any person shall have an interest in, or right to receive
distributions from, the Company (any of the foregoing, a "Transfer").  After the
expiration of such five year period, neither Member may sell, transfer, assign
or otherwise dispose of its Interest in the Company without granting the other
Member a right of first refusal.  Any attempted Transfer of an Interest in the
Company otherwise than in accordance with this Section 12 shall be void as
against the other Member.  Notwithstanding anything to the contrary in this
Section, either Member may at any time without the consent of the other Member
(but after giving prior notice to the other Member) effect a Transfer of all
(but not less than all) of its Interests in the Company to an affiliate of such
Member which has expressly assumed in writing all of such Member's obligations
under this agreement, provided, however, such Transfer shall not release the
transferor of liability for these obligations if not performed by the
transferee.  For purposes of this agreement, an "affiliate" of any Member shall
mean (a) any existing or future entity which directly or indirectly controls or
is controlled by or is under common control with such Member, (b) any entity
that directly or indirectly, is the beneficial owner of 50% or more of any class
of the voting securities of such Member provided, however, SOFTBANK Corporation
or any of its wholly owned subsidiaries shall not be considered an affiliate of
Ziff-Davis hereunder, except with respect to Section 10.1 above.

                                      -13-
<PAGE>

     13.  Term; Dissolution; Liquidation.
          ------------------------------

     13.1 Term.  Unless terminated earlier pursuant to Section 13.2, the term of
          ----
the Company shall end on December 31, 2026.

     13.2 Dissolution Prior to Expiration of Term.  The Company shall be
          ---------------------------------------
dissolved prior to the expiration of its term (a) upon agreement of Members to
dissolve the Company, (b) upon a sale of all or substantially all of the assets
of the Company, (c) if the Members are unable to resolve a deadlock condition
pursuant to Section 5.2 above and neither Member purchases the interest of the
other Member as provided in Section 5.2 above, or (d) as otherwise provided by
applicable law.

     13.3 Liquidation and Distribution of Assets.  Upon dissolution, the
          --------------------------------------
Company's business shall be liquidated in an orderly manner.  The Management
Board shall act as the liquidator (unless the Management Board elects to appoint
a liquidator) to wind up the affairs of the Company pursuant to this Agreement.
In performing its duties, the liquidator is authorized to sell, distribute,
exchange or otherwise dispose of the assets of the Company in accordance with
the Delaware Act and in any reasonable manner that the liquidator shall
determine to be in the best interest of the Members or their successors-in-
interest.

     13.4 Termination.  The Company shall terminate when all property owned by
          -----------
the Company has been disposed of and the assets, after payment of or provisions
for liabilities to the Company's creditors, have been distributed between the
Members as provided in Section 11 above.

     14.  Fiscal Year; Reports.
          --------------------

     14.1 Fiscal Year.  The Company's fiscal year shall be the calendar year.
          -----------

     14.2 Books of Account.  Complete and accurate corporate records and books
          ----------------
of account shall be kept by the Company at the principal office of the Company
(or at such other office as the Management Board may designate).  Each Member
shall have unrestricted access at all time to such records and books.  The
determinations of the Management Board with respect to the treatment of any item
or its allocation for foreign, federal, state or local income tax purposes shall
be binding upon the Members so long as that determination is not inconsistent
with any provision of this agreement.

     14.3 Reports and Tax Return.  Within 90 days after the end of each fiscal
          ----------------------
year the Company shall furnish to each Member financial statements for that
fiscal year.  The financial statements shall include a balance sheet of the
Company as of the end of the year and a statement of income and a statement of
changes in financial position of the Company for the year, setting forth in each
case in comparative form the figures as of the end of and for the previous
fiscal year.  In addition, the Company shall furnish to each Member monthly
financial statements within 15 days after the close of each month.  Each annual
tax return of the Company shall be presented to the Members (other than a Member
responsible for preparing such return) within 90 days after the end of the
fiscal year to which it applies, and the Member or Members shall have 30 days
within which to approve such return.

                                      -14-
<PAGE>

     14.4 Access.  Each Member and its representatives shall have access during
          ------
normal business hours to the premises, books and records of the Company and
shall be entitled to meet with the President and other key persons or officers
of the Company at reasonable intervals and on reasonable notice.

     15.  Tax Matters.
          -----------

     15.1 Designation.  The Members intend that the Company be treated as a
          -----------
partnership for Federal income tax purposes.

     15.2 Allocations of Profits and Losses.  The Company's taxable income and
          ---------------------------------
tax losses shall be allocated to each Member based on its respective Interest in
the Company.

     15.3 Capital Accounts.  The Company shall maintain a separate capital
          ----------------
account for each Member, Such capital account shall be maintained and adjusted
in accordance with Treasury Regulation Sections 1.704-1(b) and 1.704-2.  For tax
purposes, all items of income, gain, loss, deduction or credit shall be
allocated to the Members in the same manner as are taxable income and tax losses
of the Company; provided, that items of income, gain, loss, deduction or credit
                --------
for tax purposes shall be allocated among the Members in a manner that takes
account of the variations between the adjusted tax basis and fair market value
of property contributed to the Company in determining the Members' respective
shares of tax items under Section 704(c) of the Internal Revenue Code of 1986,
as amended (the "Code").  Consistent with applicable Treasury Regulations (A)
there shall be credited to each Member's capital account: (i) the amount of any
cash contributed by such Member to the capital of the Company; (ii) the fair
market value of any property contributed by such Member to the capital of the
Company (net of any liability secured by such property that the Company is
considered to assume or take subject to under Section 752 of the Code), (iii)
such Member's share of Company income or gain (or items thereof); and (B) there
shall be charged against each Member's capital account: (i) the amount of all
cash distributions to such Member; (ii) the fair market value of any property
distributed to such Member by the Company (net of any liability secured by such
property that the Member is considered to assume or take subject to under
Section 752 of the Code); (iii) such Member's share of Company loss and
deduction (or items thereof); and (iv) any Company expenditures described in
Section 705(a)(2)(B) of the Code.

     15.4 Tax Matters Partner.  (a) Ziff-Davis shall be the Tax Matters Partner
          -------------------
(as defined in Section 6231(a)(7) of the Code).

     (b) The Tax Matters Partner is specifically directed and authorized to take
whatever steps it, in its sole discretion, deems necessary or desirable to
perfect its designation as such, including filing any forms or documents with
the Internal Revenue Service and taking such other action as may from time to
time be required under Treasury Regulations.  In addition, the Tax Matters
Partner shall serve in a similar capacity with respect to any similar tax
related or other elections provided by state or local laws.  The Tax Matters
Partner is authorized to employ such accountants, attorneys and agents as it, in
its sole discretion, determines are necessary to or useful in the performance of
its duties. Any amounts of tax or expenses paid or incurred by the Tax Matters
Partner with respect to the determination of any tax imposed on the Company or
its Members with respect to Company income

                                      -15-
<PAGE>

or deduction (including expenses of administrative and judicial proceedings
relating to the determination of Company items at the Company level) shall
constitute a Company expense and shall be paid by the Company.

     16.  Indemnification.
          ---------------

     16.1 General.  To the extent not inconsistent with applicable law, the
          -------
Company shall indemnify and hold harmless the Members and any officers of the
Company from any loss, liability, damage or expense (including, but not limited
to, any judgment, award or settlement and reasonable attorneys' fees and other
costs or expenses incurred in connection with the defense of any actual or
threatened action, proceeding or claim) arising out of (a) any acts or omissions
or alleged acts or omissions arising out of their activities or the activities
of any of their respective employees or agents on behalf of the Company or in
connection with the business or operations of the Company, and (b) any liability
imposed upon any Member or any of their respective officers, directors or other
affiliates or any officer under any statute, rule or regulation relating to
environmental matters; provided that the acts or omissions or the alleged acts
or omissions upon which the action or threatened action, proceeding or claim is
based were not performed or omitted through gross negligence or intentional
malfeasance of the indemnified party.  Reasonable expenses incurred by any
officer or any Member or any of their respective officers, directors or other
affiliates in connection with the matters referred to above may be paid or
reimbursed by the Company in advance of the final disposition of the proceeding
upon receipt by the Company of (a) a written affirmation by any officer or any
Member or the officer, director or other affiliate of his or its good faith
belief that he or it met the standard of conduct necessary for indemnification
by the Company, and (b) a written undertaking by or on behalf of any officer or
any Member or the officer, director or other affiliate to repay such amount if
it shall ultimately be determined by a court of competent jurisdiction that it
has not met that standard of conduct.

     16.2 Liability for Acts or Omissions.  To the extent not inconsistent with
          -------------------------------
applicable law, neither any officer nor any Member nor any officer, director,
employee or other affiliate of any Member shall be liable, responsible or
accountable in damages or otherwise to the Company or to any Member for any
action taken or for any failure to act on behalf of the Company in connection
with the business or operations of the Company, unless the act or omission was
performed or omitted through gross negligence or intentional malfeasance.

     17.  Further Assurances.  Each Member shall execute and deliver such
          ------------------
additional documents and instruments, and shall perform such additional acts, as
may be necessary or appropriate to carry out the terms of this agreement.

     18.  Liability of the Members.  Except as otherwise expressly provided in
          ------------------------
the Delaware Act, the debts, obligations and liabilities of the Company, whether
arising in contract, tort or otherwise, shall be solely the debts, obligations
and liabilities of the Company, and no Member shall be obligated personally for
any such debt, obligation or liability of the Company solely by reason of being
a member.  Except as otherwise expressly provided in the Delaware Act, the
liability of each member shall be limited to the amount of capital
contributions, if any, required to be made by

                                      -16-
<PAGE>

such person in accordance with the provisions of this Agreement, but only when
and to the extent the same shall become due pursuant to the provisions of this
Agreement.

     19.  Miscellaneous.
          -------------

     19.1 Joint and Several Liability.  IDG and MCI hereby acknowledge and agree
          ---------------------------
that their respective obligations under this agreement are joint and several,
and that each guarantees, jointly and severally, absolutely and unconditionally,
to the Company and to Ziff-Davis for the performance of such obligations

     19.1 Entire Agreement; Amendment.  This agreement together with the
          ---------------------------
Assignment and Assumption Agreements, contains a complete statement of the
arrangements among the Members with respect to this subject matter, and
supersedes all prior agreements and understandings between them with respect to
such subject matter. This agreement may be amended only by a written agreement
of the Members.

     19.2 Notices.  Any notice or other communication under this agreement shall
          -------
be in writing and shall be considered given when delivered in person or mailed
by certified or registered mail, postage prepaid and return receipt requested,
or sent by reputable overnight courier addressed to the party intended as the
recipient at the address listed on the Company's records or at such other
address as a Member may designate by written notice to the other Members and the
Company.

     19.3 Governing Law.  This agreement shall be governed by, and construed in
          -------------
accordance with, the law of the State of Delaware applicable to agreements made
and to be performed in Delaware.

     19.4 Severability.  The invalidity or unenforceability of any provision of
          ------------
this agreement shall not effect the validity or enforceability of any other
provision of this agreement, which shall remain in full force and effect.

                                   *   *   *

                                      -17-
<PAGE>

     IN WITNESS WHEREOF, authorized officers of the parties hereto have duly
executed this agreement as of the date first above written.

ZIFF-DAVIS INC.                   INTERNATIONAL DATA GROUP, INC.

By: /s/ Daryl Otte                By: /s/ James G. Ghirardi
    --------------------              --------------------------
    Name:  Daryl Otte                 Name:  James G. Ghirardi
    Title: VP Planning                Title: VP Finance

MACWORLD COMMUNICATIONS, INC.

By: /s/ James G. Ghirardi
    ----------------------------
    Name:  James G. Ghirardi
    Title: VP Finance

                                      -18-
<PAGE>

                                   Exhibit A
                           Preliminary Business Plan

                              1998   1999   2000
Revenue
  MacWorld/MacUser            $47.0
  MacWeek                     $22.0
                              -------------------
Total                         $69.0  $72.5  $76.0

Operating Profit
  MacWorld/MacUser            $16.0
MacWeek                       $ 4.0
                              -------------------
Total                         $20.0  $22.0  $24.0

Initial Cash Need [OPEN]

                                      -19-
<PAGE>

                                  Schedule 7.1
                                Cost of Services

                                  Cost Per Month ($000)
                            -----------------------------------
                            MacWorld/User         MacWeek
                            -----------------     -------------
                            ZD            IDG     ZD        IDG
Circulation*
-----------
  Management                $54         $76       $29       NA
  Promo Purchasing            4         incl.       2       NA
                            -----------------------------------
Total                       $58         $76       $31       NA

Production*
----------
  Non-Classified            $18         $49       $28       NA
  Classified                  4         incl.      10       NA
                            -----------------------------------
Total                       $22         $49       $38       NA

Accounting
----------
GL, AP, AR, Credit,         $20         $36       $13       NA
Collections, Tax Treasury
Accounting Systems            5         incl.       5       NA
                            -----------------------------------
Total                       $25         $36       $18       NA

Facilities                  $17         $26       $12       NA
----------

* The parties understand that vendor contracts at Ziff-Davis are available to
  the Company only if the ZD Central Service Departments are used by the
  Company.

                                      -20-
<PAGE>

                                  Schedule 8.1
                             Macworld Expo Services

A.  ADVERTISING

IDG shall receive 32 pages and provided inserts where noted of advertising in
the Publication:

               January             2 FP 4C ads
               February            2 FP 4C ads
               March               2 FP 4C ads
               April               2 FP 4C ads
               May                 2 FP 4C ads
               June                4 FP 4C w/2po insert (pre-reg ad)
               July                4 FP AC w/2pg insert (pre-reg ad)
               August              2 FP 4C ads
               September           2 FP 4C ads
               October             2 FP 4C ads
               November            4 FP 4C w/2pg insert (pre-reg ad)
               December            4 FP 4C w/2pg insert (pre-reg ad)

B.  DIRECT MAIL

     1.   IDG shall receive unlimited use of the Publication subscriber file at
cost [handwritten, initialed addition: for use at Macworld Expo only.]

     2.   The Company will polybag all August subscriber issues of the
          Publication in the Boston area and provide insertion space for
          Macworld Expo promotional items.

C.  INTERNET

     1.   The Company will maintain a permanent link between the Macworld Online
          site and the Macworld Expo site.  During the two weeks before the pre-
          registration deadline for a Macworld Expo show and the two weeks
          before the first day of the show, this link shall appear on the
          Macworld Online home page.

     2.   Mention of Macworld Expo be made in each "Express" bulletin that is
          distributed by the Company via e-mail during the two peak periods
          described above.

     3.   Information on Macworld Expo will be prominently included by the
          Company in the Macworld area on America on Line.

D.   ON SITE

     1.   The Company will provide current issues of the Publication and
          ClubMacworld brochures for distribution in registration lobbies at
          each Macworld Expo show.

                                      -21-
<PAGE>

     2.   The Company will provide tradeshow bags containing the Macworld Expo
          logo for distribution at registration booths.

     3.   The Company will provide table tents promoting ClubMacworld for
          display in registration lobbies.

     4.   The Company will provide banners promoting the Publication for display
          in show registration lobbies.

                                      -22-
<PAGE>

Schedule 8.2
Obligations for International Edition
-------------------------------------

Respond to Inquiries and Provide Contact Information to and for International
Publications

Host Event at Expo that Address the Global Market

Annual Product Line Meeting to Provide a Forum to Share Information on
Publishing, the Macworld Brand and the MacMarket

Provide support for various publishing functions through:

 . Content from Macworld US
 . Issue of MacWorld US sent monthly
 . Editorial Updates for Future Coverage
 . Macintosh Market Information
 . Audit Content Usage
 . International Web Page
 . Shared Online Advertising
 . Consolidated Subscriber List for Rental
 . Assistance with Marketing Efforts
 . Assistance with International Expos and Events including Speaking Engagements

                                      -23-

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