Document:

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                                                                    EXHIBIT 4.10

                            HELLER FINANCIAL, INC.

                       7.375% NOTE DUE NOVEMBER 1, 2009

No.__                                                           US  $___________
CUSIP No. 423328BM4

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

     HELLER FINANCIAL, INC., a Delaware corporation (hereinafter called the
"Company," which term shall include any successor corporation under the
Indenture referred to herein), for value received, hereby promises to pay to
CEDE & CO., or its registered assigns, the principal sum of $___________ (______
___________ DOLLARS), at the office or agency of the Company maintained for such
purpose in the Borough of Manhattan, The City of New York, on November 1, 2009
(the "Maturity Date") in such coin or currency of the United States of America
as at the time of payment shall be legal tender for the payment of public and
private debts, and to pay interest (computed on the basis of a 360-day year of
twelve 30-day months) thereon from November 8, 1999, or from and including the
most recent Interest Payment Date (as hereinafter defined) to which interest has
been paid or duly provided for, semi-annually on May 1 and November 1 of each
year, commencing May 1, 2000, through the Maturity Date (each an "Interest
Payment Date"), until the principal hereof is paid or has been duly provided
for, at the rate of 7.375% per annum at such office or agency of the Company in
the Borough of Manhattan, The City of New York, in like coin or currency;
provided, however, that at the option of the Company, interest may be paid by
check to the Holder hereof entitled thereto at such Holder's last address as it
appears on the Securities Register, and principal may be paid by check to the
Holder hereof or other Person entitled thereto against surrender of this Note.

     If any Interest Payment Date does not fall on a Business Day (as defined
below), the interest payment shall be postponed to the next day that is a
Business Day, and no interest on such payment
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shall accrue for the period from and after such Payment Date. However, if such
Business Day is in the next succeeding calendar month, such Interest Payment
Date shall be the immediately preceding day that is a Business Day.

     "Business Day" is any day which is not a Saturday or Sunday or a legal
holiday in New York, New York, Boston, Massachusetts or Hartford, Connecticut on
which banking institutions are authorized or required by law, regulation or
executive order to close.

     The interest so payable, and punctually paid or duly provided for, on any
Interest Payment Date will be paid to the Person in whose name this Note is
registered at the close of business on the fifteenth day immediately preceding
such Interest Payment Date. Any such interest not so punctually paid or duly
provided for shall forthwith cease to be payable to the Holder on such Interest
Payment Date and may be paid to the Person in whose name this Note (or one or
more Predecessor Securities) is registered at the close of business on a record
date not more than 15 days and not less than 10 days prior to the date fixed by
the Trustee for payment of such defaulted interest and not less than 10 days
after the receipt by the Trustee from the Company of notice of the proposed
payment, notice of which record date shall be given to Holders of Notes not less
than 10 days prior to such record date, or may be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Notes may be listed, and upon such notice as may be required by
such exchange, all as more fully provided in said Indenture.

     If the Maturity Date is a day that is not a Business Day, payment of
principal and interest on the Maturity Date shall be postponed to the next
Business Day and, if paid on that Business Day, such payment shall be deemed
timely made.

     Additional provisions of this Note are set forth on the reverse hereof and
such provisions shall for all purposes have the same effect as though fully set
forth at this place.

     This Note shall not be valid or become obligatory for any purpose, or be
entitled to any benefit under the Indenture, until the certificate of
authentication thereon shall have been signed by the Trustee.

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     WITNESS the Company has caused this instrument to be duly executed under
its corporate seal.

     THIS GLOBAL NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY
OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR OF THE
DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR.

Dated: [November 8, 1999]

                                        HELLER FINANCIAL, INC.

                                        By: __________________________________
                                             Name:
                                             Title:

(Seal)

ATTEST:

__________________________

__________________________

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of the series designated and referred to in
the within-mentioned Indenture.

                                        STATE STREET BANK AND TRUST COMPANY, as
                                        Trustee,

                                        By: __________________________________
                                             Name:
                                             Title:

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                               (Reverse of Note)

                            HELLER FINANCIAL, INC.

                       7.375% NOTE DUE NOVEMBER 1, 2009

     This Note is one of a duly authorized issue of debentures, notes or other
evidences of indebtedness (hereinafter call the "Securities") of the Company,
all such Securities issued and to be issued under the Indenture for Senior
Securities dated as of September 1, 1995 (herein, together with all indentures
supplemental thereof, called the "Indenture") between the Company and State
Street Bank and Trust Company, as successor to Shawmut Bank Connecticut,
National Association, as Trustee (the "Trustee," which term shall include any
successor entity under the Indenture). Reference is hereby made to the Indenture
for a specific explanation of the rights and limitation of rights thereunder of
the Holders of the Securities (including the Notes) and of the rights,
obligations, duties and immunities of the Trustee and the Company with respect
thereto.  As provided in the Indenture, the Securities may be issued in one or
more series, which different series may be issued in various aggregate principal
amounts, may mature at different times, may bear interest, if any, at different
rates, may be subject to different redemption provisions, if any, may be subject
to different sinking, purchase or analogous funds, if any, may be subject to
different covenants and Events of Default and may otherwise vary as provided or
permitted in the Indenture.  This Note is one of a series designated on the face
hereof (the "Notes").

     All capitalized terms used but not defined in this Note have the meanings
assigned to them in the Indenture.

     If any Event of Default with respect to the Notes, shall occur and be
continuing, the principal of the Notes may be declared due and payable in the
manner and with the effect provided in the Indenture.

     This Note is not subject to redemption prior to the Maturity Date.  The
Notes do not provide for any sinking fund.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities under the Indenture at
any time by the Company with the consent of the Holders of a majority in
aggregate principal amount of the Securities at the time Outstanding of each
series of Securities to be affected thereby.  The Indenture also contains
provisions permitting the Holders of specified percentages in aggregate
principal amount of the Securities of any series at the time Outstanding on
behalf of the Holders of all the Securities of such series, to waive compliance
by the Company with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences with respect to such series.
Any such consent or waiver by the Holder of this Note shall be conclusive and
binding upon such Holder and upon all future Holders of this Note and

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of any Note issued upon the transfer herefor or in exchange or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Note.

     No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of, and interest on, this Note
at the times, place and rate, and in the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein and
herein set forth, this Note is transferable on the Securities Register of the
Company, upon surrender of this Note for registration of transfer at the offices
or agencies of the Company to be maintained by the Trustee for that purpose in
the Borough of Manhattan, the City of New York, duly endorsed by, or accompanied
by an assignment in the form attached hereto and by such other documents
satisfactory to the Company and the Securities Registrar duly executed by the
Holder herefor or his attorney duly authorized in writing, and thereupon one or
more new Notes of the same class is authorized denominations evidencing the same
aggregate principal amount will be issued to the designated transferee or
transferees.  The Securities Registrar initially appointed under the Indenture
for the Notes is State Street Bank and Trust Company.

     The Notes are issuable only in fully registered form without coupons in
denominations of $100,000 and any integral multiples thereof.  As provided in
the Indenture and subject to certain limitations therein set forth, the Notes
are exchangeable for certificates representing a like aggregate principal amount
of Notes of a like tenor and of a different authorized denominations, as
requested by the Holder surrendering the same.

     This Security is exchangeable by the Company for certificated Notes in
registered form only if (x) the Depositary notifies the Company that it is
unwilling or unable to continue as Depositary for this global Note or if at any
time the Depositary ceases to be a clearing agency registered under the
Securities Exchange Act of 1934, as amended, and a successor shall not be
appointed as provided in the Indenture within 90 days after the Company receives
such notice or becomes aware of such ineligibility, (y) the Company in its sole
discretion determines that this Note shall be exchangeable for certificated
Notes in registered form or (z) an Event of Default, or an event which with the
passage of time or the giving of notice would become an Event of Default, with
respect to the Notes represented hereby has occurred and is continuing, provided
that the certificated Notes so issued by the Company in exchange for this
permanent global Note shall be in denominations of $1,000 and any integral
multiple of $1,000 in excess thereof and be of like aggregate principal amount
and tenor as the portion of this permanent global Note to be exchanged, and
provided further that certificated Notes of this series in registered form will
be exchanged for or on behalf of the persons identified by the Depositary as the
beneficial owners of such Notes, as provided in the Indenture.  Except as
provided above, owners of beneficial interests in this permanent global Note
will not be entitled to receive physical delivery of Notes in certificated
registered form and will not be considered the Holders thereof for any purpose
under the Indenture.

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     No recourse under or upon any obligation, covenant or agreement of the
Company in the Indenture or in this Note, or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator,
stockholder, officer or director, as such, past, present or future, of the
Company or of any successor corporation, either directly or indirectly through
the Company or any successor corporation, under any rule of law, statute or
constitutional provision or by the enforcement of any assessment, penalty or by
any legal or equitable proceeding or otherwise, all such liability being
expressly waived and released by the acceptance hereof and as a condition of and
as part of the consideration for the issue hereof.

     The Company will be discharged from its obligations under the Notes and the
Notes will be canceled, subject to the terms of the Indenture, upon the payment
of all sums payable with respect to the Notes or upon the irrevocable deposit
with the Trustee of cash or Government Obligations (or a combination thereof)
sufficient for such payment in accordance with Article VI of the Indenture.

     The Note shall for all purposes be governed by, and construed in accordance
with, the laws of the State of New York.

     The Company, the Trustee and any agent of the Company or the Trustee may
deem and treat the Person in whose name this Note is registered as the owner
hereof for all purposes, whether or not this Note be overdue and notwithstanding
any notation of ownership or other writing hereon, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

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                                 ABBREVIATIONS

     The following abbreviations, when used in the inscription of the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

         TEN COM    - as tenants in common
         TEN ENT    - as tenants by the entireties
         JT TEN     - as joint tenants with right of survivorship
                          and not as tenants in common
         UNIF GIFT MIN ACT -

         ________________               Custodian _________________
             (Cust)                                    (Minor)

                       Under Uniform Gifts to Minors Act

                       ______________________________________________

     Additional abbreviations may also be used though not in the above list.

                          __________________________

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

     PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE

______________________________

______________________________

____________________________________________________________________
            (Please Print or Typewrite Name and Address of Assignee)

the within instrument of HELLER FINANCIAL, INC. and does hereby irrevocably
constitute and appoint ____________________________________________________
___________________________________________________________________  Attorney to
transfer said instrument on the books of the within-named Company, with full
power of substitution in the premises.

Dated: ___________           _______________________________
                             Signature

NOTICE:  The signature to this assignment must correspond with the name as
written upon the face of the within instrument in every particular, without
alteration by enlargement or any change whatever.

                                       7<PAGE>   1
                * The confidential portion has been so omitted
                        and filed with the Commission.

                                                                   EXHIBIT 10.12

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                                  CONFIDENTIAL
                         INTERACTIVE MARKETING AGREEMENT

        This Interactive Marketing Agreement (the "Agreement"), dated as of
December 22 1999 (the "Effective Date"), is between ICQ, Inc. ("ICQ"), a
Delaware corporation, with offices at 22000 AOL Way, Dulles, Virginia 20166, and
Varsitybooks.com Inc. ("Marketing Partner" or "MP"), a Delaware corporation,
with offices at 2020 K Street, N.W. 6th Floor Washington, D.C. 20006. ICQ and MP
may be referred to individually as a "Party" and collectively as the "Parties."

                                  INTRODUCTION

        ICQ and MP each desires to enter into an interactive marketing
relationship whereby ICQ will promote and distribute an interactive site
referred to (and further defined) herein as the Affiliated MP Site and services
related thereto. This relationship is further described below and is subject to
the terms and conditions set forth in this Agreement. Defined terms used but not
defined in the body of the Agreement will be as defined on Exhibit B attached
hereto.

                                      TERMS

1.      PROMOTION, DISTRIBUTION AND MARKETING.

        1.1.   ICQ PROMOTION OF MP AREAS. ICQ will provide MP with the
               Promotions described herein in the areas specified in Exhibit A.
               Subject to MP's reasonable approval, ICQ will have the right to
               fulfill its promotional commitments with respect to any of the
               foregoing by providing MP comparable promotional placements in
               appropriate alternative areas of the ICQ Network so long as such
               alternative areas have demographic and audience reach comparable
               to the ICQ Service . In addition, if ICQ is unable to deliver any
               particular Promotion, ICQ will work with MP to provide MP, as its
               sole remedy, a comparable promotional placement. ICQ reserves the
               right to redesign or modify the organization, structure, Look and
               Feel navigation and other elements of any part of the ICQ Network
               at any time, including without limitation, by adding or deleting
               channels, subchannels and/or screens and/or making fundamental
               changes to the look and feel, navigation or other elements of the
               ICQ Service. In the event such modifications materially and
               adversely affect any specific Promotion, ICQ will work with MP to
               provide MP, as its sole remedy, a comparable promotional
               placement. Except to the extent expressly described herein
               (including but not limited to in Exhibit A), the exact form,
               placement, integration and nature of such Promotions shall be
               determined by ICQ in it's reasonable editorial discretion. As
               used throughout this Agreement, the phrases "comparable
               promotional placements" or "comparable promotions" shall mean
               placements which are of comparable overall value, to be
               determined based on a variety of factors, including size,
               quality, type (e.g., integrated or banner), location (i.e., page
               or screen and the subject matter thereof), demographically
               targeted relevance, and audience reach (taking into account the
               targeted nature of the placement). The Parties agree that
               comparable placements for integrated promotional placements shall
               be other integrated placements.

        1.2.   IMPRESSIONS COMMITMENT. During the Term, ICQ shall deliver *
               Impressions to MP through the Promotions, as described on Exhibit
               A (the "Impressions Commitment"). With respect to the Impressions
               targets specified on Exhibit A, ICQ will not be obligated to
               provide in excess of any Impressions target amounts in any year.
               In the event ICQ provides an excess of any annual Impressions
               target amounts in any year, the Impressions target for the
               subsequent year will be reduced by the amount of such windfall.
               Any shortfall in Impressions at the end of a year will not be
               deemed a breach of the Agreement by ICQ; instead such shortfall
               will be added to the Impressions target for the subsequent year.
               In the event there is (or will be in ICQ's reasonable judgment) a
               shortfall in Impressions as of the end of the Initial Term (a
               "Final Shortfall"), ICQ will

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               provide MP, with advertising placements through "run of service"
               advertising on the ICQ Network which have a total value, based on
               the advertising rate applicable to this Agreement, equal to the
               value of the Final Shortfall (determined by multiplying the
               percentage of Impressions that were not delivered by the
               guaranteed payment attributable for such promotions provided for
               below).

        1.3.   INTEGRATED PROMOTIONAL PLACEMENTS. In addition to the Impressions
               described above, MP shall receive integrated Promotions within
               the ICQ Service, as more fully described on Exhibit A attached
               hereto (the "Integrated Placements"). Except to the extent
               expressly described herein, such integration into the ICQ Service
               shall be subject to standard ICQ policies on partner integration.
               Except to the extent expressly described herein, the exact form,
               placement, integration and nature of such Promotions shall be
               determined by ICQ in it's reasonable editorial discretion.

        1.4.   CONTENT OF PROMOTIONS WITHIN THE ICQ NETWORK. Promotions for MP
               will link only to the MP Areas and will promote only the MP
               Services described on Exhibit D attached hereto (and shall not
               promote any third party or any Interactive Service). The specific
               MP Content to be contained within the Promotions (including,
               without limitation, text within the advertising banners and
               contextual promotions residing within the ICQ Network (the "Promo
               Content")) will be determined by MP, subject to ICQ's technical
               limitations, the terms of this Agreement and ICQ's
               then-applicable policies relating to advertising and promotions
               (and, in the case of the Integrated Placements, subject also to
               the terms of Sections 1.3 and 2.1). MP will submit in advance to
               ICQ for its review semiannually an online marketing plan with
               respect to the Integrated Placements. The Parties will meet in
               person or by telephone at least monthly to review operations and
               performance hereunder, including a review of the Promo Content to
               mutually agree if there are improvements that can be made to
               enhance performance. MP will consistently update the Promo
               Content on a regular basis. Except to the extent expressly
               described herein, the specific form, placement, duration and
               nature of the Promotions will be as determined by ICQ in its
               reasonable editorial discretion (consistent with the editorial
               composition of the applicable screens).

        1.5    MP PROMOTION OF MP AREAS AND ICQ. MP will provide ICQ with the
               promotions provided for on Exhibit C attached hereto. MP will not
               implement or authorize any promotion similar in any respect
               (including, without limitation, in scope, purpose, amount,
               prominence or regularity) to the promotion required or provided
               pursuant to Exhibit C for any other Interactive Service.

2.      MP AREAS.

        2.1    AFFILIATED MP SITE; CONTENT OF MP AREAS. MP will create a
               customized, cobranded version of MP's primary Interactive Site to
               be linked to the ICQ Network for the purpose of marketing and
               promoting the sale of Products (the "Affiliated MP Site"). Except
               as mutually agreed in writing by the Parties or as otherwise set
               forth in this Agreement, the only products or services offered on
               the Affiliated MP Sites or included within the Promo Content
               (collectively the "MP Areas") will be the MP Products described
               on Exhibit D. In addition, the Affiliated MP Sites shall comply
               with the ICQ cobranding requirements set forth on Exhibit D. The
               MP Areas will not in any respect, (i) except as expressly
               permitted under this Agreement, promote, advertise, market or
               distribute the products, services or content of any other
               Interactive Service, or (ii) otherwise provide promotions,
               advertisements, products or services which violate ICQ's
               then-standard advertising or other policies, any third party
               copyright, trademark, US patent, or any other third party right,
               including without limitation, any music performance or related
               music right, or any law, rule or regulation.

        2.2    PRODUCTION WORK. Except as agreed to in writing by the Parties
               pursuant to the "Production Work" section of the Standard Online
               Commerce Terms & Conditions

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               attached hereto as Exhibit F, MP will be responsible for all
               production work and maintenance associated with the MP Areas,
               including all related costs and expenses. ICQ will be responsible
               for all operations and other support necessary to display the
               Promo Content and otherwise meet its obligations under this
               Agreement at no additional charge to MP.

        2.3    HOSTING; COMMUNICATIONS. As described more fully in Exhibit E, MP
               will be responsible for all communications, hosting and
               connectivity costs and expenses associated with the Affiliated MP
               Sites. MP will bear responsibility for the implementation,
               management and cost of the Affiliated MP Site. MP will utilize a
               dedicated high speed connection to maintain transport of
               information to and from the MP data center and ICQ's designated
               data center.

        2.4    TECHNOLOGY. MP will take commercially reasonable steps necessary
               to conform its promotion and sale of Services through the MP
               Areas to the then-existing technologies identified by ICQ (with
               reasonable advance notice to MP) which are optimized for the ICQ
               Service. ICQ will be entitled to require reasonable changes to
               the Content (including, without limitation, the features or
               functionality) within any linked pages of the MP Areas to the
               extent such Content will, in ICQ's good faith judgment, adversely
               affect any operational aspect of the ICQ Network. ICQ reserves
               the right to review and test the MP Areas from time to time to
               determine whether the site is compatible with ICQ's
               then-available ICQ client and host software and the ICQ Network.

        2.5    SERVICE OFFERING. MP will include in the MP Areas substantially
               similar Services and other Content (including, without
               limitation, any features, offers, contests, functionality or
               technology) that are then made available by or on behalf of MP
               through any Additional MP Channel, except to the extent any such
               Services or other Content are (i) subject to exclusive,
               proprietary or other preferential obligations in favor of third
               parties and such obligations cannot be reasonably duplicated for
               ICQ or for which generally comparable benefits for ICQ Users
               cannot be provided for ICQ, or (ii) are otherwise prohibited from
               inclusion in the MP Areas pursuant to this Agreement; provided,
               however, that (i) such inclusion will not be required where it is
               commercially or technically impractical to either Party (i.e.,
               inclusion would cause either Party to incur substantial
               incremental costs or cause a breach of another agreement); and
               (ii) the specific changes in scope, nature and/or offerings
               required by such inclusion will be subject to the terms of this
               Agreement.

        2.6    PRICING AND TERMS. The prices, terms and conditions for Services
               in the MP Areas shall be (i) no less favorable in any respect
               than the prices, terms and conditions for the Services or
               substantially similar Services offered by or on behalf of MP
               through any Additional MP Channel (other than non-permanent
               special offers offered through Additional MP Channels other than
               www.varsitybooks.com, that cannot be reasonably duplicated for
               ICQ Users) and (ii) in the aggregate generally competitive with
               similarly situated Section 3.5 Entities in the same market space.

        2.7    EXCLUSIVE OFFERS/USER BENEFITS. MP will (a) provide through the
               MP Areas special promotions that are generally comparable to
               promotions made available by or on behalf of MP through any
               Additional MP Channel to the extent MP's agreements with third
               parties permit it to do so; and (b) provide through the MP Areas
               on a regular basis special promotions or other unique programming
               and services exclusively available to ICQ Users (collectively,
               the "Special Promotions"). Through such Special Promotions, MP
               will be eligible for promotions in addition to the Promotions
               described on Exhibit A. In the event that MP conducts a promotion
               with another Interactive Service, MP will make available to ICQ
               Users a Special Promotion providing a similar discount or benefit
               to ICQ Users. MP will provide ICQ with reasonable prior notice of
               Special Promotions so that ICQ can market the availability of
               such Special Promotions in the manner ICQ deems appropriate in
               its editorial discretion.

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        2.8    OPERATING SUPPORT AND STANDARDS. ICQ will provide MP with the
               operational support described on Exhibit E. The MP Areas shall
               comply at all times with the standards and specifications set
               forth in Exhibit E. To the extent site standards are not
               established in Exhibit E with respect to any aspect or portion of
               the MP Areas (or the Services or other Content contained
               therein), MP will provide such aspect or portion at a level of
               accuracy, quality, completeness, and timeliness which meets or
               exceeds prevailing standards in the college textbook industry. In
               the event MP fails to comply with the requirements of Exhibit E
               attached hereto, (a) ICQ will have the right, as its sole remedy,
               to decrease the Promotions it provides to MP until such time as
               MP corrects its non-compliance (and in such event, ICQ will be
               relieved of the proportionate amount of any promotional
               commitment and/or cease any such integrated placements made to MP
               by ICQ hereunder corresponding to such decrease in promotion).
               Notwithstanding the foregoing, ICQ shall have the right to
               terminate this Agreement in the event that the Affiliated MP Site
               is non-operational for fourteen (14) days (counted in the
               aggregate) during any six (6) month period.

        2.9    TRAFFIC FLOW. It is the Parties' mutual intention to work
               together and take reasonable efforts to keep ICQ Network traffic
               either within the MP Areas or channeled back into the ICQ
               Network. The Parties will work together on implementing mutually
               acceptable links from the MP Areas back to the ICQ Network.

3       ICQ EXCLUSIVITY OBLIGATIONS.

        3.1    During the term specified in Section 3.6 below, MP will be the
               Exclusive College-Targeted Commerce Partner on the ICQ Service
               and ICQ.com.

        3.2    During the term specified in Section 3.6 below, MP will be the *
               promoted on the ICQ Service and ICQ.com.

        3.3    During the term specified in Section 3.6 below, ICQ may enter
               into arrangements with an entity except any of the Section 3.5
               Entities * on the ICQ Service and ICQ.com, provided that no such
               third party may (during such term) * .

        3.4    During the term specified in Section 3.6 below, MP will be ICQ's
               exclusive college marketing channel. Under this provision, MP
               will be the exclusive promoter, advertiser, marketer and
               distributor of the ICQ Service and ICQ.com (other than ICQ
               itself) on U.S. college campuses; provided, however, that this
               provision shall not apply * .

        3.5    The "Section 3.5 Entities" are: * .

        3.6    The exclusivity obligations set forth in Sections 3.1, 3.2, 3.3
               and 3.4 (subject to Section C of Exhibit C) above will commence
               upon the Effective Date and continue until December 31, 2000.

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        3.7    "Exclusive College-Targeted Commerce Partner" shall mean solely
               that, except otherwise expressly permitted hereunder, ICQ will
               not enter into any promotion, advertising, marketing or
               distribution arrangement with any Section 3.5 Entity on the ICQ
               Service or ICQ.com.

        3.8    The foregoing shall not preclude ICQ from (a) enabling
               ICQ Users to access any website whatsoever, including websites
               competitive with MP and/or covered by the foregoing exclusivity
               through standard web access, personalization features or similar
               means; (b) promoting a party through the ICQ service which
               markets multiple products or services so long as the promotions
               appearing on the ICQ Service for such party do not (x) promote
               any of the products or services specified in Section 1 of Exhibit
               D specifically to college students or (y) are not for textbooks.
               Further (and without limiting any actions which may be taken by
               ICQ without violation of MP's rights hereunder), no provision of
               this Agreement will limit ICQ's ability (on or off the ICQ
               Network) to (i) undertake activities or perform duties pursuant
               to existing arrangements as of the Effective Date with third
               parties (or pursuant to any agreements to which ICQ becomes a
               party subsequent to the Effective Date as a result of Change of
               Control, assignment, merger, acquisition or other similar
               transaction to the extent necessary for ICQ to perform its
               obligations under such agreements and provided that this clause
               (i) will not limit from the rights of MP under this Agreement),
               (ii) create editorial commentary relating to any third party
               marketer of products or services covered by Sections 3.1 or 3.2
               above, or (iii) post or allow ICQ Users to post Content,
               messages, contextual links or editorial commentary relating to
               any third party marketer of the Exclusive Service, to the extent
               created by such ICQ User and not by ICQ.

4       PAYMENTS.

        4.1    GUARANTEED PAYMENTS. MP will pay ICQ a non-refundable guaranteed
               payment of Nine Million Dollars ($9,000,000) (the "Guaranteed
               Payment Amount") as follows:

                  (i)       *               shall be paid on  *
                                  ;

                   (ii)      *               shall be paid on  *
                                  ;
                   (iii)     *               shall be paid on  *
                                  ;
                   (iv)      *               shall be paid on  *
                                  ;
                   (v)       *               shall be paid on  *
                                  ;
                   (vi)      *               shall be paid on  *
                                  ;
                   (vii)     *               shall be paid on  *
                                  ;
                   (viii)    *               shall be paid on  *
                                  ;
                   (ix)      *               shall be paid on  *
                                  ;

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                    (x)      *               shall be paid on  *
                                   ;
                    (xi)     *                shall be paid on  *
                                   ;
                    (xii)    *                shall be paid on  *
                                   ;
                    (xiii)   *                shall be paid on  *
                                   ;

4.2  LATE PAYMENTS; WIRED PAYMENTS. All amounts owed hereunder not
               paid when due and payable will bear interest from five days after
               the date such amounts are due and payable at the prime rate in
               effect at such time as published in the Wall Street Journal. All
               payments required hereunder will be paid in immediately
               available, non-refundable U.S. funds wired to the "America
               Online" account, Account Number    *    at the Chase Manhattan
               Bank, 1 Chase Manhattan Plaza, New York, NY 10081
               (ABA:021000021) (with the following notation in the reference
               field: "For credit to ICQ, Inc").

4.3  TAXES. MP will collect and pay and indemnify and hold ICQ harmless from
               any sales, use, excise, telecommunication or similar tax
               including any penalties and interest, as well as any costs
               associated with the collection or withholding thereof, including
               attorney's fees which arises out of any transaction between MP
               and customers. ICQ will collect and pay and indemnify and hold MP
               harmless from any sales, use, excise, internet access,
               telecommunication or any other similar tax or fee solely to the
               extent arising out of ICQ's operation of the ICQ Network,
               including any penalties and interest, as well as any costs
               associated with the collection or withholding thereof, including
               attorney's fees which arises in connection with actions taken, or
               transactions engaged in, by ICQ other than those taxes that
               directly relate to any transaction between MP and its customers.

4.4  REPORTS.

               4.4.1  Sales Reports. MP will provide ICQ in an automated manner
                      with a monthly report in a mutually agreeable format,
                      detailing the following activity in such period (and any
                      other information mutually agreed upon by the Parties or
                      reasonably required for measuring revenue activity by MP
                      through the Affiliated MP Site): (i) summary information
                      for sales generated through the Affiliated MP Site (i.e.,
                      total aggregate transaction revenues); (ii) revenue by
                      category of promotion and product for such sales, and
                      (iii) purchaser name and screenname for such sales
                      (collectively, "Sales Reports"). ICQ will be entitled to
                      use the Sales Reports in its business operations, subject
                      to the terms of this Agreement; provided, however, that
                      ICQ agrees that (a) such Sales Reports will contain
                      Confidential Information and such information shall only
                      be disclosed in aggregate reports which do not identify or
                      segregate information provided by MP, and (b) ICQ will not
                      use the information contained in such Sales Reports to
                      target advertisements, promotions or any other
                      communications of any party to MP's customers .

               4.4.2  Usage Reports. ICQ shall provide MP with standard monthly
                      usage information related to the Promotions (e.g., a
                      schedule of the Impressions delivered by ICQ at such time)
                      which are similar in substance and form to the reports
                      provided by ICQ to other interactive marketing partners
                      similar to MP. The information shall be

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                      subject to third-party audit in accordance with ICQ's
                      routine business practice and ICQ shall provide MP with a
                      summary of all results of such audits upon request.

               4.4.3  Fraudulent Transactions. To the extent permitted by
                      applicable laws, MP will provide ICQ with a report of any
                      fraudulent order made through the Affiliated MP Site,
                      including, if practicable, the date, screenname or email
                      address and amount associated with such order, promptly
                      following MP obtaining knowledge that the order is, in
                      fact, fraudulent.

5       TERM; RENEWAL; TERMINATION.

           5.1 Term. Unless earlier terminated as set forth herein, the initial
               term of this Agreement will be three (3) years from the Effective
               Date (the "Term").

           5.2 Continued Links. Upon expiration of the Term, ICQ may, at its
                  discretion, continue to promote one or more "pointers" or
                  links from the ICQ Network to the homepage of MP and continue
                  to use MP's trade names, trade marks and service marks in
                  connection therewith (collectively, a "Continued Link"). So
                  long as ICQ maintains a Continued Link, (a) MP shall pay ICQ*
                  percent of gross revenue generated by ICQ Users, and (b)
                  Sections 4.3 and 4.4, along with the terms of Sections 7 and
                  8 of Exhibit F and the terms of Exhibit G hereto shall
                  continue to apply with respect to the Continued Link and any
                  transactions arising therefrom. Notwithstanding the
                  foregoing, in the event that ICQ materially and adversely
                  changes the nature of the ICQ Service after the Term, MP may,
                  upon written notice to ICQ, require that ICQ discontinue the
                  Continued Link.

           5.3 Termination for Breach. Except as expressly provided elsewhere
                  in this Agreement, either Party may terminate this Agreement
                  at any time in the event of a material breach of the Agreement
                  by the other Party which remains uncured after thirty (30)
                  days written notice thereof to the other Party (or such
                  shorter period as may be specified elsewhere in this
                  Agreement); provided that the cure period with respect to any
                  scheduled payment will be fifteen (15) days from the date for
                  such payment provided for herein, regardless of when notice is
                  given to MP.

           5.4 Termination for Bankruptcy/Insolvency. Either Party may
                  terminate this Agreement immediately following written notice
                  to the other Party if the other Party (i) ceases to do
                  business in the normal course, (ii) becomes or is declared
                  insolvent or bankrupt, (iii) is the subject of any proceeding
                  related to its liquidation or insolvency (whether voluntary or
                  involuntary) which is not dismissed within ninety (90)
                  calendar days or (iv) makes an assignment for the benefit of
                  creditors.

           5.5 Termination on Change of Control. In the event of (i) prior to
                  MP's initial public offering of its common stock (the "IPO"),
                  any Change of Control of MP, (ii) after the IPO, any Change of
                  Control of MP, if such Change of Control results in any
                  Interactive Service, or other entity reasonably competitive to
                  AOL or ICQ, obtaining a controlling interest in MP,or (ii) a
                  Change of Control of ICQ or AOL, ICQ may terminate this
                  Agreement by providing thirty (30) days prior written notice
                  of such intent to terminate. In the event of a termination of
                  this Agreement pursuant to Section 5.5(iii), ICQ shall pay MP
                  a pro-rata refund of the Guaranteed Payment.

6       MANAGEMENT COMMITTEE/ARBITRATION.

           6.1 Management Committee. The Parties meet to promptly resolve any
                  claim, dispute, claim, controversy or disagreement (each a
                  "Dispute") between the Parties or any of their respective
                  subsidiaries, affiliates, successors and assigns under or
                  related to this Agreement or any document executed pursuant to
                  this Agreement or any of the transactions contemplated hereby
                  within ten (10) days of written notice from one to the

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               other of the Dispute. If the Parties cannot resolve the Dispute
               within such time frame, the Dispute will be deemed to be
               immediately submitted to the Management Committee (as defined
               below) for resolution. For ten (10) days following such
               submission of the Dispute to the Management Committee, the
               Management Committee will have the exclusive right to resolve
               such Dispute. If the Management Committee is unable to amicably
               resolve the Dispute during the ten-day period, then the dispute
               will be referred for the resolution mechanisms described below.
               "Management Committee" will mean a committee made up of a senior
               executive from each of the Parties for the purpose of resolving
               Disputes under this Section 6 and generally overseeing the
               relationship between the Parties contemplated by this Agreement.
               Neither Party will seek, nor will be entitled to seek, binding
               outside resolution of the Dispute unless and until the Parties
               have been unable amicably to resolve the Dispute as set forth in
               this Section 6 and then, only in compliance with the procedures
               set forth in this Section 6.

        6.2 Arbitration. Except for Disputes relating to issues of
               proprietary rights, including but not limited to intellectual
               property and confidentiality, any Dispute not resolved by
               amicable resolution as set forth in Section 6.1 will be finally
               settled by arbitration. Such arbitration will be conducted by the
               American Arbitration Association ("AAA") in Washington, D.C. and
               will be initiated and conducted in accordance with the Commercial
               Arbitration Rules ("Commercial Rules") of the AAA, as such rules
               will be in effect on the date of delivery of a demand for
               arbitration ("Demand"), except to the extent that such rules are
               inconsistent with the provisions set forth herein.

        6.3 Selection of Arbitrators. The arbitration panel will consist
               of three (3) arbitrators. Each Party will name an arbitrator
               within ten (10) days after the delivery of the Demand. The two
               (2) arbitrators named by the Parties may have prior relationships
               with the naming Party, which in a judicial setting would be
               considered a conflict of interest. The third arbitrator, selected
               by the first two, should be a neutral participant, with no prior
               working relationship with either Party. If the two arbitrators
               are unable to select a third arbitrator within ten (10) days, a
               third neutral arbitrator will be appointed by the AAA. If a
               vacancy in the arbitration panel occurs after the hearings have
               commenced, the remaining arbitrator or arbitrators may not
               continue with the hearing and determination of the controversy,
               unless the Parties agree otherwise.

        6.4 Governing Law. The Federal Arbitration Act, 9 U.S.C. Secs.
               1-16, and not state law, will govern the arbitrability of all
               Disputes. The Federal Rules of Evidence will apply in toto. The
               arbitrators may enter a default decision against any Party who
               fails to participate in the arbitration proceedings.

        6.5 Arbitration Awards. The arbitrators will have the authority
               to award compensatory damages only. The award rendered by the
               arbitrators will be final, binding and non-appealable, and
               judgment upon such award may be entered by any court of competent
               jurisdiction. The Parties agree that the existence, conduct and
               content of any arbitration will be kept confidential and no Party
               will disclose to any person any information about such
               arbitration, except as may be required by law or by any
               governmental authority or for financial reporting purposes in
               each Party's financial statements.

        6.6 Fees. Each Party will pay the fees of its own attorneys,
               expenses of witnesses and all other expenses and costs in
               connection with the presentation of such Party's case
               (collectively, "Attorneys' Fees").

        6.7 Non Arbitratable Disputes. Any Dispute that is not subject to
               final resolution by the Management Committee or to arbitration
               under this Section 6 or by law (collectively, "Non-Arbitration
               Claims") will be brought in a court of competent jurisdiction in
               the Commonwealth of Virginia. Each Party irrevocably consents to
               the exclusive jurisdiction of the courts of the Commonwealth of
               Virginia and the federal courts situated in the

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               Commonwealth of Virginia, over any and all Non-Arbitration Claims
               and any and all actions to enforce such claims or to recover
               damages or other relief in connection with such claims.

        6.8 Injunctive Relief. Either party will have the right to apply
               at any time to a judicial authority for injunctive or other
               interim or provisional relief, and will not by doing so be deemed
               to have breached its agreement to arbitrate or to have affected
               the powers reserved to the arbitrators.

7   COMPLIANCE WITH LAWS. Nothing herein shall be deemed to require either party
    to violate any rule, law or regulation, including, without limitation, the
    Securities Act of 1933 or the Securities Exchange Act of 1934. In the event
    that a Party can demonstrate to the reasonable satisfaction of the other
    Party that a provision herein would require it to violate any such rule, law
    or regulation, then the Parties shall restate such provision so as to comply
    with the applicable laws and regulations at issue, while maintaining, to the
    maximum extent possible, the original effect of such provision (consistent
    with the applicable legal and regulatory requirements).

8   PRESS RELEASES. Each Party will submit to the other Party, for its prior
    written approval, which will not be unreasonably withheld or delayed, any
    press release or any other public statement ("Press Release") regarding the
    transactions contemplated hereunder; provided, however, that, following the
    initial public announcement of the business relationship between the Parties
    in accordance with the foregoing, either Party's subsequent factual
    reference to the existence of a business relationship between the Parties
    will not require the approval of the other Party. Notwithstanding the
    foregoing, either Party may issue Press Releases and other disclosures as
    required by law without the consent of the other Party and in such event,
    the disclosing Party will provide at least five (5) business days prior
    written notice of such disclosure. Because it would be difficult to
    precisely ascertain the extent of the injury caused to the non-breaching
    party, in the event of a material breach of this Section 8 that results in a
    material and adverse effect on the non-breaching party, the non-breaching
    party may elect to either (a) terminate this Agreement immediately upon
    notice to the other Party (without the other Party having any cure period),
    or (b) as liquidated damages, elect to modify the Impression Commitment
    hereunder by fifteen percent (15%) (either an increase in Impressions if AOL
    has materially breached the Agreement or a decrease in Impressions if MP has
    materially breached the Agreement). The Parties agree that the liquidated
    damages set forth are a reasonable approximation of the injury that would be
    suffered by the non-breaching Party.

9   WARRANTS. In connection with the obligations of the Parties hereunder, and
    subject to the provisions hereof, ICQ's obligations under this Agreement
    shall be contingent upon MP's delivery within one day of the Effective Date
    of (i) a Stock Subscription Warrant in the form of Exhibit H attached hereto
    (the "Warrant Agreement") and (ii) an Investor Rights Agreement in a form
    reasonably acceptable to ICQ.

10  EXHIBITS. All Exhibits attached hereto are each hereby made a part of this
    Agreement.

                       [the next page is a signature page]

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                                                                  EXECUTION COPY

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the
Effective Date.

ICQ, INC.                                     VARSITYBOOKS.COM INC.

By:    /s/ ICQ, INC.                          By:    /s/ VARSITYBOOKS.COM INC.
    ----------------------------------            -----------------------------
Name                                          Name:
Title:                                        Title:

                                       10
<PAGE>   11
                                   EXHIBIT A
                              PLACEMENT/PROMOTION

By March 1, 2000, ICQ and MP will complete a detailed Program Plan ("the Plan")
for the integration of MP into the ICQ Service and on ICQ.com which will detail
the schedule for the accomplishment of the Specifics which follow below. ICQ
will make available appropriate IT, marketing and operations personnel to work
on the Plan. MP will have the option to send relevant personnel to ICQ's Tel
Aviv offices to work on the development and implementation of the Plan. ICQ
will work in good faith with MP to maximize the placement of VarsityBooks.com
banner promotions and Integrated Placements on ICQ.com and within the ICQ
Service.

SPECIFICS:  Subject to Sections 1.1 and 1.3 above, ICQ will:

-     *. Integrated Placements within the ICQ Client will be * including, but
      not limited to, (i) *, (ii) * (i.e., to the extent retailers are named MP
      will always be named (except in the case of rotational placements, in
      which case MP shall be included within all such rotations), and * (i.e.,
      relating to a material offering of the Affiliated MP Site) *, and (iii) *.
      The Integrated Placements described in this paragraph will appear on the
      ICQ Service on or about *. Notwithstanding any provision hereof to the
      contrary, at all times during the Term, * (i) in the case of fixed
      placements, * and (ii) in the case of rotational placements, *.

-     *. Such Placements will begin by January 14, 2000; provided that MP is in
      compliance with the terms of this Agreement.

-     * (featuring such MP Products as the Parties shall mutually agree), in
      the appropriate channels on ICQ.com which will be *. This feature will
      not count toward the Impressions Commitment due under Section 1.2. So
      long as MP has provided ICQ with all necessary materials to construct
      such area, * will be operational by a mutually agreeable date.

-     * (except to the extent permitted otherwise under Section 1.1 of the
      Agreement) and *.

-     * (served based on search terms).

-     * (served based on URL terms).

-     * - served to areas/topics relevant to MP.

-     *

<PAGE>   12
      *. This feature will be available on or about June 15, 2000 (the *).
      Notwithstanding the foregoing, if the * is not delivered by the *,
      ICQ shall extend the Term by a number of days equal to the difference
      between the * and the actual date on which such * is delivered; provided,
      however, that in no event shall the Term be extended for more than six (6)
      months pursuant this provision and provided, further, that no extension of
      the Term shall increase the number of Impressions to be delivered pursuant
      to the Carriage Plan below. In the event that the * is not delivered prior
      to January 15, 2001, MP shall have the right to terminate this Agreement
      upon written notice to MP and receive a pro-rata refund of the Guaranteed
      Payment and no further Warrant Shares (as defined in the Warrant
      Agreement) shall vest after the date of such termination.

-     *

-     *. This feature and its use by ICQ users will not count toward the
      Impressions Commitment due under Section 1.2.

-     *

-     *

-     *

CARRIAGE PLAN (banner ads)

            Year 1            Year 2            Year 3
Endemic     *                 *                 *

Broad Reach *                 *                 *

*Endemic promotions include banner ads that are placed in or near relevant
portal channels, search results, co-browsing ads and web directory areas.

Placements on the Service and Integrated Placements do not impact the
impressions total due under Section 1.2.

<PAGE>   13

                                   EXHIBIT B
                                  DEFINITIONS

The following definitions will apply to this Agreement:

ADDITIONAL MP CHANNEL. Any other distribution channel (e.g., an Interactive
Service other than ICQ) through which MP makes available an offering comparable
in nature to the MP Areas.

AFFILIATED MP SITE.  "Affiliated MP Site" shall have the meaning set forth in
Section 2.1.

ALERTS. Any communication from MP directed at an ICQ User (whether by e-mail,
instant message, or otherwise) as a result of such ICQ User's expressly
requested opt-in to receive such communication, requested via an ICQ controlled
registration process, which such registration process (i) clearly and
prominently notifies all registrants of the nature and frequency of the
communications that will or may be received as a result thereof, and (ii)
requires such registrant to expressly reconfirm such election to receive such
communications, and which such communications each offer a clear and prominent
opportunity for such ICQ User to subsequently opt-out at any time.

                        (1)   AOL. "AOL" shall mean America Online, Inc., a
                              Delaware corporation.

CHANGE OF CONTROL. (a) The consummation of a reorganization, merger or
consolidation or sale or other disposition of substantially all of the assets
of a party or (b) the acquisition by any individual, entity or group (within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
1933, as amended) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under such Act) of more than 50% of either (i) the then outstanding
shares of common stock of such party; or (ii) the combined voting power of the
then outstanding voting securities of such party entitled to vote generally in
the election of directors.

CONFIDENTIAL INFORMATION. Any information relating to or disclosed in the
course of the Agreement, which is or should be reasonably understood to be
confidential or proprietary to the disclosing Party, including, but not limited
to, the material terms of this Agreement, information about ICQ Members
(including without limitation their ICQ number or other unique identifying
data), ICQ Users, and MP customers, technical processes and formulas, source
codes, product designs, sales, cost and other unpublished financial
information, product and business plans, projections, and marketing data.
"Confidential Information" will not include information (a) already lawfully
and non-confidentially known to or independently developed without use or
access to such information by the receiving Party, (b) disclosed in published
materials, (c) generally known to the public (through no breach of the
confidentiality obligations of this Agreement), or (d) lawfully and
non-confidentially obtained from any third party.

CONTENT. Text, images, video, audio (including, without limitation, music used
in synchronism or timed relation with visual displays) and other data,
Services, advertisements, promotions, links, pointers and software, including
any modifications, upgrades, updates, enhancements and related documentation.

ICQ INTERACTIVE SITE.  Any Interactive Site which is managed, maintained, owned
or controlled by ICQ or its agents.

<PAGE>   14

ICQ LOOK AND FEEL. The elements of graphics, design, organization,
presentation, layout, user interface, navigation and stylistic convention
(including the digital implementations thereof) which are generally associated
with Interactive Sites within the ICQ Service or ICQ.com.

ICQ MEMBERS. Any authorized user of the ICQ Service, including any sub-accounts
using the ICQ Service under an authorized master account.

ICQ NETWORK. *

ICQ SERVICE. *

ICQ USER. Any user of the ICQ Service, ICQ.com or the ICQ Network.

ICQ.COM. *

IMPRESSION. User exposure to the applicable Promotion, as such exposure may be
reasonably determined and measured by ICQ in accordance with its standard
methodologies and protocols (including without limitation standard
impressions).

IMPRESSIONS COMMITMENTS.  As defined in Section 1.2 hereof.

INTEGRATED PLACEMENTS.  As defined in Section 1.3 hereof.

INTERACTIVE SERVICE. An entity offering one or more of the following: (i)
online or Internet connectivity services (e.g., an Internet service provider);
(ii) an interactive site or service featuring a broad selection of aggregated
third party interactive content (or navigation thereto) (e.g., an online
service or search and directory service) and/or marketing a broad selection of
products and/or services across numerous interactive commerce

<PAGE>   15

categories (e.g., an online mall or other leading online commerce site); (iii)
a persistent desktop client; or (iv) communications software capable of serving
as the principal means through which a user creates, sends and receives
electronic mail or real time or "instant" online messages (whether by
telephone, computer or other means), including without limitation greeting
cards.

INTERACTIVE SITE. Any interactive site or area, including, by way of example
and without limitation, (i) an MP or ICQ site on the World Wide Web portion of
the Internet or (ii) a channel or area delivered through a "push" product such
as the Pointcast Network or interactive environment such as Microsoft's Active
Desktop or interactive television service such as WebTV.

LICENSED CONTENT. All Content offered through the MP Areas pursuant to this
Agreement or otherwise provided by MP or its agents in connection herewith
(e.g., offline or online promotional Content, Promotions, "slideshows", etc.),
including in each case, any modifications, upgrades, updates, enhancements, and
related documentation.

MP AREAS. The Affiliated MP Site and any portions of the Integrated Placements
which are managed, maintained, owned or controlled predominately by MP or its
agents (rather than by ICQ).

MP INTERACTIVE SITE. Any Interactive Site (other than the MP Areas) which is
managed, maintained, owned or controlled by MP or its agents.

MP PROGRAMMING. The (a) MP Areas and all Content thereon (including, without
      limitation, Content within the stock ticker or any other Integrated
      Placements, and any message boards, chat and other ICQ Member-supplied
      content areas contained therein, if and to the extent permitted herein)
      and (b) Licensed Content.

PROMOTIONS. Any of the promotions described herein (including without
limitation (a) (i) the standard Impressions described in Section 1.2, and (ii)
any Integrated Placements as described in Section 1.3 (in each case, as more
fully described on Exhibit A and including without limitation any advertising
banners, buttons, contextual promotions, searches or other promotions residing
within the ICQ Network, which may link to the MP Areas); (b) any Alerts or
other permitted communications as set forth herein; and (c) any comparable
promotions provided herein.

SERVICE. Any product, good or service which MP (or others acting on its behalf
or as distributors) offers, sells, provides, distributes or licenses to ICQ
Members directly or indirectly through (i) the MP Areas (including through any
Interactive Site linked thereto), (ii) any other electronic means directed at
ICQ Members (e.g., e-mail offers), or (iii) an "offline" means (e.g., toll-free
number) for receiving orders related to specific offers within the MP Areas
requiring purchasers to reference a specific promotional identifier or tracking
code.

<PAGE>   16

                                   EXHIBIT C

                               MP CROSS-PROMOTION

A. "Try ICQ" Button. Within each MP Interactive Site (including without
   limitation during any MP customer registration process), MP shall include a
   prominent "Try ICQ" feature (at least 90 x 30 pixels or 70 x 70 pixels in
   size) (the "ICQ Promo") through which users can obtain promotional
   information about ICQ products or services mutually designated by both
   Parties and download the then-current version of MP purposed client software
   for such products or services. ICQ will provide the creative content to be
   used in the ICQ Promo (including designation of links from such content to
   other content pages), subject to the reasonable approval of MP. MP shall
   post (or update, as the case may be) the creative content supplied by ICQ
   within the spaces for the ICQ Promo within ten business days of its receipt
   of such content from ICQ. Without limiting any other reporting obligations
   of the Parties contained herein, MP shall provide ICQ with monthly written
   reports specifying the number of impressions to the pages containing the ICQ
   Promo during the prior month so long as it is technically feasible to do so.
   In the event that ICQ elects to serve the ICQ Promo to the MP Interactive
   Site from an ad server controlled by ICQ or its agent, MP shall take all
   reasonable operational steps necessary to facilitate such ad serving
   arrangement including, without limitation, inserting HTML code designated by
   ICQ on the pages of the MP Interactive Site on which the ICQ Promo will
   appear.

B. For the purposes of this Section B, the following definitions will apply:

   "Tier 1 Communications Tools" means communications tools for e-mail, instant
   messaging, and Internet search functionality.

   "Tier 2 Communication Tools" means communications tools for yellow pages,
   chat, calendaring, homesteading, and message board functionality.

   MP will use commercially reasonable efforts to incorporate communication
   tools provided by ICQ into the Affiliated MP Site to the extent MP elects to
   offer corresponding communications functionality to users of the Affiliated
   MP Site.

   MP will not use any Instant Messaging tool other than one provided by ICQ.
   With respect to the other Tier 1 Communications Tools, if MP elects to use
   in the Affiliated MP Site a communications tool from a third party because
   it is not commercially reasonable to implement a communication tool provided
   by ICQ, then MP will not brand, or permit the provider of the tool to brand,
   the service offered using the tool with the provider's brand, nor will MP
   provide a link from the Affiliated MP Site to an Interactive Site of the
   provider in connection with the service offered using the tool. With respect
   to Tier 2 Communications Tools, if MP elects to use a communications tool
   from a third party in the Affiliated MP Site because it is not commercially
   reasonable to use a communications tool provided by ICQ, MP may co-brand the
   service offered using the tool with the brand of the provider (provided that
   the provider is not an Interactive Service with the exception of any entity
   solely described by subsection (iv) of the definition of Interactive
   Service) but will not link from the Affiliated MP Site to Interactive Sites
   of the provider in connection with the service offered using the tool.

      B.    C.    On-Campus Marketing Cross-Promotion

II.   DELIVERABLES

      By March 1, 2000, VarsityBooks.com ("VB.C") and ICQ will have completed a
      marketing and promotional campaign for ICQ/VB.C for the Year 2000 that
      will include at least:

      -     * co-branded impressions

<PAGE>   17

      - At least * Promotional e-mails to VB.C customer base
      - Permanent fixed position on VB.C

   - At least * Promotional e-mails to VB.C affiliates
   - At least * Inserts in VB.C boxes(1)
   - Use of VB.C Campus Rep Network

        The Campus Reps will perform the following marketing activities (or
        some comparable marketing activity) on behalf of ICQ/VB.C:

-       Postering
-       Fliering
   -    Chalking
   -    Class Announcements
   -    Announcements to clubs, sports teams, fraternities/sororities and other
        campus groups
   -    Distribution of premiums (premiums to be provided by ICQ at ICQ's
        expense)

III.EXPENSES

         VB.C will responsible for all costs associated with the impressions
         (except for creative to be provided by ICQ); promotional e-mails to
         customers and affiliates; the permanent fixed position on VB.C; and
         inserts in VB.C boxes (except for cost of actual insert).

         ICQ will make appropriate personnel available to help lead training
         calls for the Campus Rep Network and to perform any other necessary
         tasks to ensure the timely and successful roll-out of this campaign.

IV.TERMINATION

         On June 1, 2000, the Parties will evaluate performance under the
         co-marketing plan as described above (the "Plan") for a period of up
         to seven (7) days. In the event that ICQ believes in good-faith that
         the Plan (and/or the performance of the Plan) has not been reasonably
         satisfactory to the marketing goals of ICQ, ICQ shall provide MP with
         written notice of such. The Parties shall meet within seven (7) days
         of such notice to discuss in good-faith an appropriate course of
         action, and, in the event that the Parties are unable to mututally
         agree on such appropriate course of action, ICQ may, prior to July 1,
         2000, upon written notice to VB.C, terminate VB.C's exclusivity as its
         exclusive college marketing channel. Such a termination election will
         have no effect on any of ICQ's other obligations under the exclusivity
         provision or any other provisions of this Agreement.

D. Communications Promos. In * of any online or offline promotions by MP or
     over which MP exercises at least partial editorial control, when promoting
     solely the communications aspects of MP (each, a "Communications Promo"),
     MP will include specific references or mentions (verbally where possible)
     of the ICQ Service (e.g., a reference to the availability of the ICQ
     Service through the MP Areas or vice versa) during the period in which MP
     is ICQ's exclusive college marketing channel . For purposes of this
     paragraph, an "offline promotion" shall include without limitation, MP's
     television, radio, print and "out of home" (e.g., buses and billboards)
     advertisements and in editorial

----------------------------
(1) Inserts will be delivered as products are ordered.

<PAGE>   18

     content in any publications, programs, features or other forms of media
     over which MP exercises at least partial editorial control.

<PAGE>   19

                                   EXHIBIT D

                   DESCRIPTION OF SERVICES AND OTHER CONTENT

1. Products and Services Which MP May Promote on the Affiliated MP Site.

      MP may promote and offer any of the following products or services on the
Affiliated MP Site: *

      On the homepage of the Affiliated MP Site, MP will only be able to
promote the categories of products or services identified as "Restricted" in
Section 2 (i) so long as the amount of Content on the homepage of the Affiliate
MP Site relating to such products or services is not significant relative to
the Unlimited Products or Services on the homepage, or (ii) is highlighted only
through the use of a tab or navigational icon which directs the user to another
page on the Affiliated MP Site or any MP Interactive Site.

2. Products and Services Which MP May Promote in the Promo Content.

      MP may promote and offer only the Unlimited and Qualified Products or
Services identified below through the Promo Content for the duration specified
below. For the purposes of this Section 2:

      "Unlimited Products or Services" means the following products or services
can be promoted or offered for the term of this Agreement: *

      "Qualified Products or Services" means the following products or services
can be promoted or offered for the term of this Agreement until, and except to
the extent which, ICQ executes an agreement with a third party for the
exclusive promotion of any such product or service with another party on the
ICQ Service or ICQ.com: *. ICQ will provide MP with reasonable advance written
notice of any such arrangement with a third party.

"Restricted Products or Services" means the following products or services
cannot be promoted or offered during the term of this Agreement: *.

3. CO-BRANDING REQUIREMENTS. The co-branded Affiliated MP Site shall be
operational by March 15, 2000 and MP shall display on each page of such site
headers and footers each of 600x30 pixel size consisting of creative content
provided by ICQ (subject to MP's approval, not to be unreasonably withheld,
conditioned or delayed).and containing both ICQ and MP branding and links to
the ICQ Network. The Parties agree that the home page of the Affiliated MP Site
shall reside on a joint URL structured in a manner to provide MP with user and
unique visitor credit (i.e., www.icq.varsitybooks.com). Internal pages within
the Affiliated MP Site shall reside on a joint URL structured in a manner to
provide

<PAGE>   20

ICQ with credit for time spent on the Affiliated MP Site (i.e.,
www.varsitybooks.icq.com), unless such URL structuring would not be technically
feasible.

<PAGE>   21

                                   EXHIBIT E
                              OPERATING STANDARDS

1. Affiliated MP Site Infrastructure. Within a reasonable time after the
   execution of this Agreement, ICQ will provide MP with the technical
   requirements needed by MP to integrate the ICQ software referred to in this
   Agreement into the Affiliated MP Site. MP will be responsible for all
   communications, hosting and connectivity costs and expenses associated with
   the Affiliated MP Site. MP will provide all hardware, software,
   telecommunications lines and other infrastructure necessary to meet traffic
   demands on the Affiliated MP Site from the ICQ Network. MP will design and
   implement its connectivity to the Internet such that (i) no single component
   failure will have a materially adverse impact on ICQ Users seeking to reach
   the Affiliated MP Site from the ICQ Network and (ii) no single line will run
   at more than 70% average utilization for a 5-minute peak in a daily period.

2. Optimization; Speed. MP will use commercially reasonable efforts to see
   that: (a) the functionality and features within the Affiliated MP Site are
   compatible with the client software then in use by ICQ Users; and (b) the
   Affiliated MP Site is designed and populated in a manner that minimizes
   delays when ICQ Users attempt to access such site. At a minimum, MP will
   ensure that the Affiliated MP Site's data transfers initiate within fewer
   than fifteen (15) seconds on average; except where such inability is due to
   problems with the ICQ Network. MP will permit ICQ to conduct reasonable
   performance and load testing of the Affiliated MP Site (in person or through
   remote communications).

3. Technical Problems. MP agrees to use commercially reasonable efforts to
   address material technical problems (over which MP exercises control)
   affecting use by ICQ Users of the Affiliated MP Site (an "MP Technical
   Problem") promptly following notice thereof.

4. Monitoring. MP will monitor the performance and availability of the
   Affiliated MP Site on a Continuous basis. MP will provide ICQ with contact
   information (including e-mail, phone, pager and fax information, as
   applicable, for both during and after business hours) for MP's principal
   business and technical representatives, for use in cases when issues or
   problems arise with respect to the Affiliated MP Site.

5. Security. MP will utilize Internet standard encryption technologies (e.g.,
   Secure Socket Layer - SSL) to provide a secure environment for conducting
   transactions and/or transferring private member information (e.g. credit
   card numbers, banking/financial information, and member address information)
   to and from the Affiliated MP Site. MP will provide ICQ with periodic
   reviews of the Affiliated MP Site in order to allow ICQ to evaluate the
   security risks of such site. MP will promptly remedy any security risks or
   breaches of security as may be identified by ICQ's Operations Security team
   and verified by MP.

6.  Technical Performance.

   i. MP will design the Affiliated MP Site to support the most recent two (2)
   Windows version of the Microsoft Internet Explorer browser (currently,
   versions 3.0 and 4.0) as well as any browser that represents more than two
   percent (2%) of aggregate Affiliated MP Sites' traffic. In addition, ICQ and
   MP shall work together with the goal of preventing any caching by ICQ's
   proxy servers (where applicable, including preventing caching of any banner
   advertisements served by MP). To the extent the Affiliated MP Site do not
   support older ICQ browsers, MP shall have the option of (A) using MP's ad
   serving technology and the information contained in
   "http://"webmaster.info.ICQ.com", to restrict an ICQ User's access to
   incompatible features on the Affiliated MP Site and serve a mutually agreed
   upon promotional message to such users, or (B) add alternative features
   which may be chosen by a user depending on the type of operating system
   and/or browser a user employs.

   ii. To the extent MP creates customized pages on the Affiliated MP Site for
   ICQ Users or restricts access to advertising by ICQ Users, MP will configure
   the server from which it serves the site to examine the HTTP User-Agent
   field in order to identify the "ICQ Member-Agents" listed at:
   "http://webmaster. Info.ICQ.com."

   iii. MP will periodically review the technical information made available by
    ICQ at http://webmaster.info.ICQ.com.

   iv. MP will design its site to support HTTP 1.0 or later protocol as defined
   in RFC 1945 (available at "http://ds.internic.net/rfc/rfc1945.text").

   v. Prior to releasing material, new functionality or features through the
   Affiliated MP Site ("New Functionality"), MP will use commercially
   reasonable efforts to test the New Functionality to confirm its
   compatibility with ICQ Service client software. With respect to any major
   implementation of significant new technology, MP will provide ICQ with
   written notice of the new technology so that ICQ can perform tests of the
   new technology to confirm its compatibility with the ICQ Service client
   software.

   vi. ICQ may notify MP of any problems with respect to New Functionality or
   new technology on the Affiliated MP Site, and MP will work in good faith to
   resolve such problems. ICQ will be entitled to request reasonable changes to
   the Content (including, without limitation, the features or functionality)
   within any pages of the Affiliated MP Site linked to from the ICQ Network to
   the extent such Content will materially and adversely affect any operational
   aspect of the ICQ Network. If MP is unable to adequately resolve such
   problems, MP shall have the option of (A) using MP's ad serving technology
   to restrict an ICQ User's access to such Content and serve a mutually agreed
   upon promotional message to such users, or (B) add alternative features
   which may be chosen by a user depending on the type of operating system a
   user employs. If MP does not restrict access to such Content or add
   applicable alternative features,

<PAGE>   22

   ICQ shall have the right to terminate the link to such Content from the ICQ
   Network.

7. ICQ Internet Services Partner Support. ICQ will provide MP with access to
the highest level of online resources, standards and guidelines documentation,
technical phone support, monitoring and after-hours assistance that ICQ makes
generally available to ICQ's web-based partners. ICQ support will not, in any
case, be involved with Content creation on behalf of MP or support for any
technologies, databases, software or other applications which are not supported
by ICQ or are related to any MP area other than the Affiliated MP Site. Support
to be provided by ICQ is contingent on MP providing to ICQ demo account
information (where applicable), a detailed description of the Affiliated MP
Site's software, hardware and network architecture and access to the Affiliated
MP Site for purposes of such reasonable performance and load testing. ICQ will
use commercially reasonable efforts to respond to MP's requests for technical
support within three (3) business day of the making of the request by MP. In
addition, ICQ will provide MP with timely access to appropriate technical
resources to allow MP to integrate the ICQ software to be provided by ICQ under
this Agreement into the Affiliated MP Site.

<PAGE>   23

                                   EXHIBIT F

                  STANDARD ONLINE COMMERCE TERMS & CONDITIONS

<PAGE>   24
1.    ICQ Network Distribution. MP will not authorize or permit any third party
      to distribute or promote the Services or any MP Interactive Site through
      the ICQ Network absent ICQ's prior written approval, which approval will
      not be unreasonably withheld. The Promotions and any other promotions or
      advertisements purchased from or provided by ICQ will link only to the MP
      Areas, will be used by MP solely for its own benefit and will not be
      resold, traded, exchanged, bartered, brokered or otherwise offered to any
      third party.

2.    Provision of Other Content.  In the event that MP includes any Content
      within the MP Areas that violates ICQ's then-standard Terms of Service
      (including without limitation, the terms of the ICQ End User License
      Agreement, and the ICQ Privacy Policy) (the "Terms of Service"), the
      terms of this Agreement, then ICQ will notify MP in writing of its
      objection and, MP will take commercially reasonable steps to block access
      by ICQ Users to such Content using MP's then-available technology or take
      such other remedial action which cures the violation.  In the event that
      MP cannot, through its commercially reasonable efforts, block access by
      ICQ Users to the Content in question, then MP will provide ICQ prompt
      written notice of such fact.  ICQ may then, at its option, restrict
      access from the ICQ Network to the Content in question using technology
      available to ICQ.  MP will cooperate with ICQ's reasonable requests to
      the extent ICQ elects to implement any such access restrictions.

3.    Contests. Any contest, sweepstakes or similar promotion conducted or
      promoted through the MP Areas (a "Contest") shall comply with all
      applicable federal, state and local laws and regulations.

4.    Navigation. In cases where an ICQ User performs a search for MP through
      any search or navigational tool or mechanism that is accessible or
      available through the ICQ Network (e.g., Promotions, search terms, or any
      other promotions or navigational tools), ICQ shall have the right to
      direct such ICQ User to the MP Areas, or any other MP Interactive Site
      determined by ICQ in its reasonable discretion.

5.    Disclaimers. Upon ICQ's request, MP agrees to include within the MP Areas
      a product disclaimer (the specific form and substance to be mutually
      agreed upon by the Parties) indicating that transactions are solely
      between MP and ICQ Users purchasing Services from MP.

6.    ICQ Look and Feel.  MP acknowledges and agrees that ICQ will own all
      right, title and interest in and to the elements of graphics, design,
      organization, presentation, layout, user interface, navigation and
      stylistic convention (including the digital implementations thereof)
      which are generally associated with online areas contained within the ICQ
      Network, subject to MP's (or its licensors') ownership rights in any
      non-ICQ trademarks or copyrighted material within the MP Areas.  ICQ
      acknowledges that MP retains all right, title and interest in and to the
      elements of graphics, design, organization, presentation, layout, user
      interface, navigation and stylistic convention (including the digital
      implementations thereof) which are generally associated with the MP Areas
      and the MP Interactive Service, subject to any third-party trademarks and
      copyrighted material contained therein.

7.    Management of the MP Areas.  MP will manage, review, delete, edit,
      create, update and otherwise manage all Content available on or through
      the MP Areas, in a timely and professional manner and in accordance with
      the terms of this Agreement.  MP will use commercially reasonable efforts
      to cause the MP Areas to be current, accurate and well-organized at all
      times.  MP agrees that the Services and other Licensed Content : (i) will
      not infringe on or violate any copyright, trademark, U.S. patent or any
      other third party right, including without limitation, any music
      performance or other music-related rights; and (ii) will not violate any
      applicable law or regulation of the United State or any other country or
      jurisdiction. Additionally, MP represents and warrants that it owns or
      has all rights to any Licensed Content required to perform under this
      Agreement. MP also warrants that a reasonable basis exists for all
      Service performance or comparison claims expressly made by MP and
      appearing in the MP Areas.  Except as provided herein, MP shall not in
      any manner, including, without limitation in any Promotion, the Licensed
      Content or promotional materials state or imply that ICQ recommends or
      endorses MP or MP's Services (e.g., no statements that MP is an
      "official" or "preferred" provider of products or services for ICQ)
      without the prior authorization of ICQ.  ICQ will have no obligations
      with respect to the Services available on or through the MP Areas,
      including, but not limited to, any duty to review or monitor any such
      Services.

8.    Management of ICQ Network.  ICQ will manage, review, delete, edit,
      create, update and otherwise manage all Content available on or through
      the ICQ Network, in a timely and professional manner and in accordance
      with the terms of this Agreement. ICQ will use commercially reasonable
      efforts to see that the ICQ Network remains current, accurate and
      well-organized at all times.  ICQ agrees that the ICQ Service and ICQ.com
      and any Content available on them: (i) will not infringe on or violate
      any third-party copyright, trademark, U.S. patent which exists on the
      effective date of this agreement, or any other third party right,
      including without limitation, any music performance or other
      music-related rights; (ii) will not violate ICQ's then-applicable Terms
      of Service or any other standard, written ICQ policy or license; and
      (iii) will not violate any applicable law or regulation of the United
      State or any other country or jurisdiction, including those relating to
      contests, sweepstakes or similar promotions.  ICQ also warrants that a
      reasonable basis exists for all ICQ Service performance or comparison
<PAGE>   25

      claims expressly made by ICQ and appearing through the ICQ Network.
      Except as provided herein, ICQ shall not in any manner state or imply
      that MP recommends or endorses ICQ or the ICQ Network (e.g., no
      statements that ICQ is an  "official" or "preferred" provider of products
      or services for MP) without the prior authorization of MP.  MP will have
      no obligations with respect to the ICQ Services available on or through
      the ICQ Network other than the MP Areas, including, but not limited to,
      any duty to review or monitor any such ICQ Services.

9.    Duty to Inform. MP will promptly inform ICQ of any information related to
      the MP Areas which could reasonably lead to a claim, demand, or liability
      of or against ICQ and/or its affiliates by any third party. ICQ will
      promptly inform MP of any information related to the ICQ Network which
      could reasonably lead to a claim, demand, or liability of or against MP
      and/or its affiliates by any third party.

10.   Customer Service.  It is the sole responsibility of MP to provide
      customer service to persons or entities purchasing Services through the
      ICQ Network ("Customers"). MP will bear full responsibility for all
      customer service, including without limitation, order processing,
      billing, fulfillment, shipment, collection and other customer service
      associated with any Services offered, sold or licensed through the MP
      Areas, and ICQ will have no obligations whatsoever with respect thereto.
      MP will receive all emails from Customers via a computer available to
      MP's customer service staff and generally respond to such emails within
      three (3) days from receipt.  MP will receive all orders electronically
      and generally process all orders within three (3) days from receipt,
      provided Services ordered are not advance order items.  MP will use
      commercially reasonable efforts to receive, process, fulfill and deliver
      all orders of Services on a timely and professional basis.  MP will offer
      ICQ Users who purchase Services through such MP Areas a money back
      satisfaction guarantee, to the same extent offered by MP generally  MP
      will bear all responsibility for compliance with federal, state and local
      laws in the event that Services are out of stock or are no longer
      available at the time an order is received.  MP will also comply with the
      requirements of any federal, state or local consumer protection or
      disclosure law.  Payment for Services will be collected by MP directly
      from customers.

11.   Production Work.  In the event that MP requests ICQ's production
      assistance for activities outside the scope of ICQ's obligations under
      this Agreement in connection with (i) ongoing programming and maintenance
      related to the MP Areas, (ii) a redesign of or addition to the MP Areas
      (e.g., a change to an existing screen format or construction of a new
      custom form), (iii) production to modify work performed by a third party
      provider or (iv) any other type of production work, MP will work with ICQ
      to develop a detailed production plan for the requested production
      assistance (the "Production Plan").  Following receipt of the final
      Production Plan, ICQ will notify MP of (i) ICQ's availability to perform
      the requested production work, (ii) the proposed fee or fee structure for
      the requested production and maintenance work and (iii) the estimated
      development schedule for such work.  ICQ will make commercially
      reasonable efforts to respond to MP promptly and to undertake in good
      faith the production assistance requested by MP.  To the extent the
      Parties reach agreement regarding implementation of the agreed-upon
      Production Plan after good faith negotiations, such agreement will be
      reflected in a separate work order signed by the Parties.  To the extent
      MP elects to retain a third party provider to perform any such production
      work, work produced by such third party provider must generally conform
      to ICQ's standards & practices (and any standard ICQ "styleguide").  The
      specific production resources which ICQ allocates to any production work
      to be performed on behalf of MP will be as determined by the Parties in
      the work order.  With respect to any routine production, maintenance or
      related services which are necessary for ICQ to perform in order to
      support the proper functioning and integration of the MP Areas ("Routine
      Services"), MP will pay the then-standard fees charged by ICQ for such
      Routine Services provided that ICQ notifies MP in advance of incurring
      these charges (providing MP an explanation of the basis for them) and
      obtains MP's prior approval for them.

12.   Bookmarking. To the extent ICQ allows ICQ Users to "bookmark" the URL or
      other locator for the MP Areas, such bookmarks will be subject to ICQ's
      control at all times. Upon the termination of this Agreement, MP's rights
      to any Keyword Search Terms and bookmarking will terminate.

13.   Merchant Certification Program.  MP will be provided the opportunity to
      participate in any generally applicable "Certified Merchant" program
      operated by ICQ or its authorized agents or contractors.  Such program
      may require merchant participants on an ongoing basis to meet certain
      reasonable, generally applicable standards relating to provision of
      electronic commerce through the ICQ Network (including, as a minimum, use
      of 40-bit SSL encryption and if requested by ICQ, 128-bit encryption) and
      may also require the payment of certain reasonable certification fees to
      the applicable entity operating the program.  Each Certified Merchant in
      good standing will be entitled to place on its affiliated Interactive
      Site an ICQ designed and approved button promoting the merchant's status
      as an ICQ Certified Merchant.

14.   Message Boards; Chat Rooms and Comparable Vehicles.  Any Content
      submitted by MP or its agents within message boards, chat rooms or any
      comparable vehicles will be subject to the license grant relating to
      submissions to "public areas" set forth in the ICQ Terms of Service.  MP

<PAGE>   26

      acknowledges that it has no rights or interest in ICQ Member submissions
      to message boards within the ICQ Network.  MP will refrain from editing,
      deleting or altering, without ICQ's prior approval (which shall not be
      unreasonably withheld or delayed), any opinion expressed or submission
      made by an ICQ Member within MP Programming except in cases where MP  has
      a good faith belief that the Content in question violates an applicable
      law, regulation, third party right or the applicable ICQ Terms of
      Service.

<PAGE>   27

                                   EXHIBIT G
                       STANDARD LEGAL TERMS & CONDITIONS

1.    Promotional Materials/Press Releases. Each Party will submit to the other
      Party, for its prior written approval, which will not be unreasonably
      withheld or delayed, any marketing, advertising, or other promotional
      materials, excluding Press Releases, related to the MP Areas and/or
      referencing the other Party and/or its trade names, trademarks, and
      service marks (the "Promotional Materials"); provided, however, that
      either Party's use of screen shots of the MP Areas for promotional
      purposes will not require the approval of the other Party so long as
      America Online(R) is clearly identified as the source of such screen
      shots; and provided further, however, that, following the initial public
      announcement of the business relationship between the Parties in
      accordance with the approval and other requirements contained herein,
      either Party's subsequent factual reference to the existence of a
      business relationship between the Parties in Promotional Materials, will
      not require the approval of the other Party. Each Party will solicit and
      reasonably consider the views of the other Party in designing and
      implementing such Promotional Materials. Once approved, the Promotional
      Materials may be used by a Party and its affiliates for the purpose of
      promoting the MP Areas and the content contained therein and reused for
      such purpose until such approval is withdrawn with reasonable prior
      notice. In the event such approval is withdrawn, existing inventories of
      Promotional Materials may be depleted.

2.    License. MP hereby grants ICQ a non-exclusive worldwide license to
      market, license, distribute, reproduce, display, perform, translate,
      transmit, and promote the Licensed Content (or any portion thereof)
      through such areas or features of the ICQ Network as required for ICQ to
      perform under this Agreement. MP acknowledges and agrees that the
      foregoing license permits ICQ to distribute portions of the Licensed
      Content in synchronism or timed relation with visual displays prepared by
      MP or ICQ (e.g., as part of an ICQ "slideshow"). In addition, ICQ Users
      will have the right to access and use the MP Areas.

3.    Trademark License. In designing and implementing the promotional
      materials and subject to the other provisions contained herein, MP will
      be entitled to use such trade names, trademarks, and service marks of ICQ
      as designated by ICQ and ICQ; and its affiliates will be entitled to use
      such trade names, trademarks, and service marks of MP as designated by MP
      (collectively, together with the ICQ marks listed above, the "Marks");
      provided that each Party: (i) does not create a unitary composite mark
      involving a Mark of the other Party without the prior written approval of
      such other Party; and (ii) displays symbols and notices clearly and
      sufficiently indicating the trademark status and ownership of the other
      Party's Marks in accordance with applicable trademark law and practice.

4.    Ownership of Trademarks. Each Party acknowledges the ownership right of
      the other Party in the Marks of the other Party and agrees that all use
      of the other Party's Marks will inure to the benefit, and be on behalf,
      of the other Party. Each Party acknowledges that its utilization of the
      other Party's Marks will not create in it, nor will it represent it has,
      any right, title, or interest in or to such Marks other than the licenses
      expressly granted herein. Each Party agrees not to do anything contesting
      or impairing the trademark rights of the other Party.

5.    Quality Standards. Each Party agrees to supply the other Party, upon
      request, with a reasonable number of samples of any promotional materials
      publicly disseminated by such Party which utilize the other Party's
      Marks. Each Party will comply with all applicable laws, regulations, and
      customs and obtain any required government approvals pertaining to use of
      the other Party's marks.

6.    Infringement Proceedings. Each Party agrees to promptly notify the other
      Party of any unauthorized use of the other Party's Marks of which it has
      actual knowledge. Each Party will have the sole right and discretion to
      bring proceedings alleging infringement of its Marks or unfair
      competition related thereto; provided, however, that each Party agrees to
      provide the other Party with its reasonable cooperation and assistance
      with respect to any such infringement proceedings.

7.    Representations and Warranties. Each Party represents and warrants to the
      other Party that: (i) such Party has the full corporate right, power and
      authority to enter into this Agreement and to perform the acts required
      of it hereunder; (ii) the execution of this Agreement by such Party, and
      the performance by such Party of its obligations and duties hereunder, do
      not and will not violate any agreement to which such Party is a party or
      by which it is otherwise bound; (iii) when executed and delivered by such
      Party, this Agreement will constitute the legal, valid and binding
      obligation of such Party, enforceable against such Party in accordance
      with its terms; and (iv) such Party acknowledges that the other Party
      makes no representations, warranties or agreements related to the subject
      matter hereof that are not expressly provided for in this Agreement
      (including its Exhibits). MP hereby represents and warrants that, except
      where failure to possess would not materially affect its ability to
      perform hereunder, it possesses all authorizations, approvals, consents,
      licenses, permits, certificates or other rights and permissions necessary
      to sell the Services. ICQ represents and warrants that, except where
      failure to possess would not materially affect its ability to perform
      hereunder, it possesses all authorizations, approvals, consents,
      licenses, permits, certificates or other rights and permissions necessary
      to offer and operate the ICQ Network.

8.    Confidentiality. Each Party acknowledges that Confidential Information
      may be disclosed to the other Party during the course of this Agreement.
      Each Party agrees that it will take reasonable steps, at least
      substantially equivalent to the steps it takes to protect its own
      proprietary information, during the term of this Agreement, and for a
      period of three years following expiration or termination of this

<PAGE>   28

      Agreement, to prevent the duplication or disclosure of Confidential
      Information of the other Party, other than by or to its employees or
      agents who must have access to such Confidential Information to perform
      such Party's obligations hereunder, who will each agree to comply with
      this section. Notwithstanding the foregoing, either Party may issue a
      press release or other disclosure containing Confidential Information
      without the consent of the other Party, to the extent such disclosure is
      required by law, rule, regulation or government or court order, provided
      that such Party shall first make every reasonable effort to avoid the
      disclosure. In such event, the disclosing Party will provide at least
      five (5) business days prior written notice of such proposed disclosure
      to the other Party. Further, in the event such disclosure is required of
      either Party under the laws, rules or regulations of the Securities and
      Exchange Commission or any other applicable governing body, such Party
      will (i) redact mutually agreed-upon portions of this Agreement to the
      fullest extent permitted under applicable laws, rules and regulations and
      (ii) submit a request to such governing body that such portions and other
      provisions of this Agreement receive confidential treatment under the
      laws, rules and regulations of the Securities and Exchange Commission or
      otherwise be held in the strictest confidence to the fullest extent
      permitted under the laws, rules or regulations of any other applicable
      governing body.

9.    Limitation of Liability; Disclaimer; Indemnification.

      9.1   LIABILITY. UNDER NO CIRCUMSTANCES WILL EITHER PARTY BE LIABLE TO
            THE OTHER PARTY FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR
            EXEMPLARY DAMAGES (EVEN IF THAT PARTY HAS BEEN ADVISED OF THE
            POSSIBILITY OF SUCH DAMAGES), ARISING FROM BREACH OF THE AGREEMENT,
            THE SALE OF SERVICES, THE USE OR INABILITY TO USE THE ICQ NETWORK,
            THE ICQ SERVICE, ICQ.COM OR THE MP AREAS, OR ARISING FROM ANY OTHER
            PROVISION OF THIS AGREEMENT, SUCH AS, BUT NOT LIMITED TO, LOSS OF
            REVENUE OR ANTICIPATED PROFITS OR LOST BUSINESS (COLLECTIVELY,
            "DISCLAIMED DAMAGES"); PROVIDED THAT EACH PARTY WILL REMAIN LIABLE
            TO THE OTHER PARTY TO THE EXTENT ANY DISCLAIMED DAMAGES ARE CLAIMED
            BY A THIRD PARTY AND ARE SUBJECT TO INDEMNIFICATION PURSUANT TO
            SECTION 9.3. EXCEPT AS PROVIDED IN SECTION 9.3, (I) LIABILITY
            ARISING UNDER THIS AGREEMENT WILL BE LIMITED TO DIRECT, OBJECTIVELY
            MEASURABLE DAMAGES, AND (II) THE MAXIMUM LIABILITY OF ONE PARTY TO
            THE OTHER PARTY FOR ANY CLAIMS ARISING IN CONNECTION WITH THIS
            AGREEMENT WILL NOT EXCEED THE AGGREGATE PAYMENTS MADE UNDER THIS
            AGREEMENT; PROVIDED THAT EACH PARTY WILL REMAIN LIABLE FOR THE
            AGGREGATE AMOUNT OF ANY PAYMENT OBLIGATIONS OWED TO THE OTHER PARTY
            PURSUANT TO THE AGREEMENT.

      9.2   NO ADDITIONAL WARRANTIES. EXCEPT AS EXPRESSLY SET FORTH IN THIS
            AGREEMENT, NEITHER PARTY MAKES ANY, AND EACH PARTY HEREBY
            SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS OR WARRANTIES, EXPRESS
            OR IMPLIED, REGARDING THE ICQ NETWORK, THE ICQ SERVICE, ICQ.COM,
            THE SERVICES OR THE MP AREAS, INCLUDING ANY IMPLIED WARRANTY OF
            MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND IMPLIED
            WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE.
            WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, ICQ SPECIFICALLY
            DISCLAIMS ANY WARRANTY REGARDING THE PROFITABILITY OF THE MP AREAS.

      9.3   Indemnity. Either Party will defend, indemnify, save and hold
            harmless the other Party and the officers, directors, agents,
            affiliates, distributors, franchisees and employees of the other
            Party from any and all third party claims, demands, liabilities,
            costs or expenses, including reasonable attorneys' fees
            ("Liabilities"), resulting from the indemnifying Party's breach of
            its warranty under Section 7 or 8 of Exhibit F, as applicable.

      9.4   Claims. If a Party entitled to indemnification hereunder (the
            "Indemnified Party") becomes aware of any matter it believes is
            indemnifiable hereunder involving any claim, action, suit,
            investigation, arbitration or other proceeding against the
            Indemnified Party by any third party (each an "Action"), the
            Indemnified Party will give the other Party (the "Indemnifying
            Party") prompt written notice of such Action. Such notice will (i)
            provide the basis on which indemnification is being asserted and
            (ii) be accompanied by copies of all relevant pleadings, demands,
            and other papers related to the Action and in the possession of the
            Indemnified Party. The Indemnifying Party will have a period of ten
            (10) business days after delivery of such notice to respond. If the
            Indemnifying Party elects to defend the Action or does not respond
            within the requisite ten (10) business day period, the Indemnifying
            Party will be obligated to defend the Action, at its own expense,
            using counsel of its choosing. The Indemnified Party will
            cooperate, at the expense of the Indemnifying Party, with the
            Indemnifying Party and its counsel in the defense and the
            Indemnified Party will have the right to participate fully, at its
            own expense, in the defense of such Action. If the Indemnifying
            Party responds within the required ten (10) business day period and
            elects not to defend such Action, the Indemnified Party will be
            free, without prejudice to any of the Indemnified Party's rights
            hereunder, to compromise or defend (and control the defense of)
            such Action. In such case, the Indemnifying Party will cooperate,
            at its own expense, with the Indemnified Party and its counsel in
            the defense against such Action and the Indemnifying Party will
            have the right to participate fully, at its own expense, in the
            defense of such Action. Any compromise or settlement of an Action
            will require the prior written consent of both Parties hereunder,
            such consent not to be unreasonably withheld or delayed.
<PAGE>   29
      9.5   Acknowledgment. ICQ and MP each acknowledges that the provisions of
            this Agreement were negotiated to reflect an informed, voluntary
            allocation between them of all risks (both known and unknown)
            associated with the transactions contemplated hereunder. The
            limitations and disclaimers related to warranties and liability
            contained in this Agreement are intended to limit the circumstances
            and extent of liability. The provisions of this Section 9 will be
            enforceable independent of and severable from any other enforceable
            or unenforceable provision of this Agreement.

10.   Solicitation of ICQ Users. During the term of the Agreement and for a two
      year period thereafter, MP will not use the ICQ Network (including,
      without limitation, the e-mail network contained therein) to solicit ICQ
      Users on behalf of another Interactive Service. More generally, MP will
      not send unsolicited, commercial e-mail (i.e., "spam") or other online
      communications through or into ICQ's products or services, absent a Prior
      Business Relationship. For purposes of this Agreement, a "Prior Business
      Relationship" will mean that the ICQ User to whom commercial e-mail or
      other online communication is being sent has voluntarily either (i)
      engaged in a transaction with MP or (ii) provided information to MP
      through a contest, registration, or other communication, which included
      clear notice to the ICQ User that the information provided could result
      in commercial e-mail or other online communication being sent to that ICQ
      User by MP or its agents. Any commercial e-mail communications to ICQ
      Users which are otherwise permitted hereunder, will (a) include a
      prominent and easy means to "opt-out" of receiving any future commercial
      e-mail or other online communications from MP, and (b) shall also be
      subject to ICQ's then-standard restrictions on distribution of bulk
      e-mail (e.g., related to the time and manner in which such e-mail can be
      distributed through or into the ICQ product or service in question).

11.   ICQ User Communications. To the extent that MP is permitted to
      communicate with ICQ Users under Section 10 of this Exhibit G, in any
      such communications to ICQ Users on or off the MP Areas (including,
      without limitation, e-mail solicitations), MP will not encourage ICQ
      Users to take any action inconsistent with the scope and purpose of this
      Agreement, including without limitation, the following actions: (i) using
      an Interactive Site other than the MP Areas for the purchase of Services,
      or (ii) bookmarking of Interactive Sites. Additionally, with respect to
      such ICQ User communications, in the event that MP encourages an ICQ User
      to purchase products through such communications, MP shall ensure that
      (a) the ICQ Network is promoted as the primary means through which the
      ICQ User can access the MP Areas and (b) any link to the MP Areas will
      link to a page which indicates to the ICQ User that such user is in a
      site which is affiliated with the ICQ Network.

12.   Collection and Use of User Information. The collection, use and
      disclosure by MP of information obtained from ICQ Users under this
      Agreement ("User Information") shall comply with (i) all applicable laws
      and regulations and (ii) ICQ's standard privacy policies, available on
      the Interactive Site ICQ.com (or, in the case of the MP Areas, MP's
      standard privacy policies so long as such policies are prominently
      published on the site and provide adequate notice, disclosure and choice
      to users regarding MP's collection, use and disclosure of user
      information). MP will not disclose User Information collected hereunder
      to any third party in a manner that identifies ICQ Users as end users of
      an ICQ product or service or use Member Information collected under this
      Agreement to market another Interactive Service.

13.   Statements through ICQ Network. Neither Party shall make, publish, or
      otherwise communicate through the ICQ Network or the MP Areas any
      deleterious remarks concerning the other Party or its affiliates,
      directors, officers, employees, or agents (including, without limitation,
      the other Party's business projects, business capabilities, performance
      of duties and services, or financial position) which remarks are based on
      the relationship established by this Agreement or information exchanged
      hereunder.

14.   Excuse. Neither Party will be liable for, or be considered in breach of
      or default under this Agreement on account of, any delay or failure to
      perform as required by this Agreement as a result of any causes or
      conditions which are beyond such Party's reasonable control and which
      such Party is unable to overcome by the exercise of reasonable diligence.

15.   Independent Contractors. The Parties to this Agreement are independent
      contractors. Neither Party is an agent, representative or employee of the
      other Party. Neither Party will have any right, power or authority to
      enter into any agreement for or on behalf of, or incur any obligation or
      liability of, or to otherwise bind, the other Party. This Agreement will
      not be interpreted or construed to create an association, agency, joint
      venture or partnership between the Parties or to impose any liability
      attributable to such a relationship upon either Party.

16.   Notice. Any notice, approval, request, authorization, direction or other
      communication under this Agreement will be given in writing and will be
      deemed to have been delivered and given for all purposes (i) on the
      delivery date if delivered by electronic mail on the ICQ Network (to the
      e-mail address "AOLNotice@aol.com" in the case of ICQ) or by confirmed
      facsimile; (ii) on the delivery date if delivered personally to the Party
      to whom the same is directed; (iii) one business day after deposit with a
      commercial overnight carrier, with written verification of receipt; or
      (iv) five (5) business days after the mailing date, whether or not
      actually received, if sent by U.S. mail, return receipt requested,
      postage and charges prepaid, or any other means of rapid mail delivery
      for which a receipt is available. In the case of ICQ, such notice will be
<PAGE>   30
      provided to both the President for Business Affairs (fax no.
      703-265-1206) and the Deputy General Counsel (fax no. 703-265-1105), each
      at the address of ICQ set forth in the first paragraph of this Agreement.
      In the case of MP, except as otherwise specified herein, the notice
      address will be the address for MP set forth in the first paragraph of
      this Agreement, with the other relevant notice information, including the
      recipient for notice and, as applicable, such recipient's fax number or
      ICQ e-mail address, to be as reasonably identified to ICQ by MP.

17.   No Waiver. The failure of either Party to insist upon or enforce strict
      performance by the other Party of any provision of this Agreement or to
      exercise any right under this Agreement will not be construed as a waiver
      or relinquishment to any extent of such Party's right to assert or rely
      upon any such provision or right in that or any other instance; rather,
      the same will be and remain in full force and effect.

18.   Return of Information. Upon the expiration or termination of this
      Agreement, each Party will, upon the written request of the other Party,
      return or destroy (at the option of the Party receiving the request) all
      confidential information, documents, manuals and other materials
      specified the other Party.

19.   Survival. Sections 4.1, 4.2, 4.3, 5.2 and 6 of the body of the Agreement,
      Sections 7 and 8 of Exhibit F and Sections 8 through 29 of this Exhibit,
      will survive the completion, expiration, termination or cancellation of
      this Agreement.

20.   Entire Agreement. This Agreement sets forth the entire agreement and
      supersedes any and all prior agreements of the Parties with respect to
      the transactions set forth herein. Neither Party will be bound by, and
      each Party specifically objects to, any term, condition or other
      provision which is different from or in addition to the provisions of
      this Agreement (whether or not it would materially alter this Agreement)
      and which is proffered by the other Party in any correspondence or other
      document, unless the Party to be bound thereby specifically agrees to
      such provision in writing.

21.   Amendment. No change, amendment or modification of any provision of this
      Agreement will be valid unless set forth in a written instrument signed
      by the Party subject to enforcement of such amendment signed by an
      executive of at least the same standing to the executive who signed the
      Agreement.

22.   Further Assurances. Each Party will take such action (including, but not
      limited to, the execution, acknowledgment and delivery of documents) as
      may reasonably be requested by any other Party for the implementation or
      continuing performance of this Agreement.

23.   Assignment. MP will not assign this Agreement or any right, interest or
      benefit under this Agreement without the prior written consent of ICQ,
      which consent shall not be unreasonably withheld or delayed.. ICQ shall
      not assign this Agreement to any Section 3.5 Entity without the prior
      written consent of MP, which consent shall not be unreasonably withheld
      or delayed. Subject to the foregoing, this Agreement will be fully
      binding upon, inure to the benefit of and be enforceable by the Parties
      hereto and their respective successors and assigns.

24.   Construction; Severability. In the event that any provision of this
      Agreement conflicts with the law under which this Agreement is to be
      construed or if any such provision is held invalid by a court with
      jurisdiction over the Parties to this Agreement, (i) such provision will
      be deemed to be restated to reflect as nearly as possible the original
      intentions of the Parties in accordance with applicable law, and (ii) the
      remaining terms, provisions, covenants and restrictions of this Agreement
      will remain in full force and effect.

25.   Remedies. Except where otherwise specified, the rights and remedies
      granted to a Party under this Agreement are cumulative and in addition
      to, and not in lieu of, any other rights or remedies which the Party may
      possess at law or in equity; provided that, in connection with any
      dispute hereunder, MP will be not entitled to offset any amounts that it
      claims to be due and payable from ICQ against amounts otherwise payable
      by MP to ICQ.

26.   Applicable Law. Except as otherwise expressly provided herein, this
      Agreement will be interpreted, construed and enforced in all respects in
      accordance with the laws of the Commonwealth of Virginia except for its
      conflicts of laws principles.

27.   Export Controls. Both Parties will adhere to all applicable laws,
      regulations and rules relating to the export of technical data and will
      not export or re-export any technical data, any products received from
      the other Party or the direct product of such technical data to any
      proscribed country listed in such applicable laws, regulations and rules
      unless properly authorized.

28.   Headings. The captions and headings used in this Agreement are inserted
      for convenience only and will not affect the meaning or interpretation of
      this Agreement.

29.   Counterparts. This Agreement may be executed in counterparts, each of
      which will be deemed an original and all of which together will
      constitute one and the same document
<PAGE>   31

                                    EXHIBIT H

WARRANT AGREEMENT

<PAGE>   32
                                                                    CONFIDENTIAL

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED. THESE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE
SECURITIES UNDER SAID ACT OR LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE
CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.

                             VARSITYBOOKS.COM INC.

                           STOCK SUBSCRIPTION WARRANT

                                                December 22, 1999

      1.    GENERAL.

            (a) THIS CERTIFIES that, for value received, AMERICA ONLINE, INC.
("AOL"), or assigns, is entitled to subscribe for and purchase from
VARSITYBOOKS.COM INC., a Delaware corporation (the "Corporation"), at any time
or from time to time commencing as set forth in Section 1(b) and ending on the
seventh (7th) anniversary of the date hereof (the "Exercise Period"), on the
terms and subject to the provisions hereinafter set forth, up to 463,246 shares
(subject to adjustment as provided herein) (the "Warrant Shares") of fully paid
and non-assessable shares of Common Stock, $0.0001 par value, of the
Corporation (the "Common Stock") as shall be determined in accordance with the
provisions of Section 1(b) hereof, at a price per share (the "Warrant Price")
equal to the per share initial public offering price of the IPO (as hereinafter
defined); provided that if the Stipulated Event (as defined below) occurs prior
to the IPO Date, the Warrant Price shall be equal to the fully-diluted per
share valuation established in the Corporate Transaction (as defined below).
The Corporation represents, warrants and covenants that, as of the date hereof,
the maximum Warrant Shares issuable hereunder shall constitute three percent
(3%) of the number of shares of voting capital stock of the Corporation
outstanding immediately prior to the closing of the IPO (as hereinafter
defined) after giving effect to the exercise, exchange or conversion of all
outstanding securities, rights, options, warrants (including this Warrant),
calls, commitments or agreements of any nature or character (whether debt or
equity) that are, directly or indirectly, exercisable or exchangeable for, or
convertible into or otherwise represent the right to purchase or otherwise
receive, directly or indirectly, any such capital stock or other arrangement to
acquire at any time or under any circumstance, voting capital stock of the
Corporation or any such other securities and assuming that all stock options
and/or shares of capital stock reserved for grant or issuance to officers,

                                       1

<PAGE>   33

                                                                    CONFIDENTIAL

directors, employees and consultants under all agreements, plans or
arrangements theretofore approved by the Board of Directors of the Corporation
have been so granted or issued (as the case may be) (collectively, the
"Fully-Diluted Shares"). In the event that the number of Warrant Shares listed
above does not constitute three percent (3%) of the Fully-Diluted Shares
existing immediately prior to the closing of the IPO, the number of Warrant
Shares initially issuable hereunder (the "Initial Number") shall be adjusted
accordingly to cause the Initial Number to constitute three percent (3%) of the
Fully-Diluted Shares existing immediately prior to the closing of the IPO. As
used in this Agreement, the term "IPO Date" shall mean the date on which the
Corporation closes the initial public offering of its Common Stock (the "IPO").

      This Warrant is being issued pursuant to an Interactive Marketing
Agreement dated as of the date hereof (the "Agreement"), between the
Corporation and ICQ, Inc. All terms used but not defined herein shall have the
meanings set forth in the Agreement.

            (b)   This Warrant shall become exercisable as to that number of
Warrant Shares, and at such times, as are determined in accordance with Exhibit
A attached hereto; provided, however, that this Warrant shall become
exercisable as to all unvested Warrant Shares immediately upon the occurrence
of a Stipulated Event. As used herein, the term "Stipulated Event" shall mean
(a) a Corporate Transaction (as hereinafter defined) or (b) a termination of
the Agreement that results from a material breach by the Corporation of the
Agreement. "Corporate Transaction" means (A) any consolidation or merger of the
Corporation with or into any other corporation or other entity, other than any
merger or consolidation resulting in the holders of the capital stock of the
Corporation entitled to vote for the election of directors holding a majority
of the capital stock of the surviving or resulting corporation or other entity
entitled to vote for the election of directors, (B) any person or entity
(including any affiliates thereof) becoming the holder of a majority of the
capital stock of the Corporation entitled to vote for the election of
directors, or (C) any sale or other disposition by the Corporation of all or
substantially all of its assets or capital stock.

      2.    EXERCISE OF WARRANT. The rights represented by this Warrant may be
exercised by the holder hereof, in whole or in part, at any time or from time
to time during the Exercise Period, by the surrender of this Warrant (properly
endorsed) at the office of the Corporation at 2020 K St., NW, 6th Floor,
Washington, DC 20006, or at such other agency or office of the Corporation in
the United States of America as it may designate by notice in writing to the
holder hereof at the address of such holder appearing on the books of the
Corporation, and by payment (either in cash, by check, by cancellation of
indebtedness and/or in shares of capital stock of the Corporation valued at
Fair Market Value (as hereinafter defined) on the date of such exercise) to the
Corporation of the Warrant Price for each Warrant Share being purchased. In the
event of the exercise of the rights represented by this Warrant, a certificate
or certificates for the Warrant Shares so purchased, registered in the name of
the holder, and if this Warrant shall not have been exercised for all of the
Warrant Shares, a new Warrant, registered in the name of the holder hereof, of
like tenor to this Warrant, shall be delivered to the holder hereof within a
reasonable time, not exceeding ten days, after the rights represented by this
Warrant shall have been so exercised. The person in whose name any

                                       2

<PAGE>   34

                                                                    CONFIDENTIAL

certificate for Warrant Shares is issued upon exercise of this Warrant shall
for all purposes be deemed to have become the holder of record of such shares
on the date on which the Warrant was surrendered and payment of the Warrant
Price and any applicable taxes was made, irrespective of the date of delivery
of such certificate, except that, if the date of such surrender and payment is
a date when the stock transfer books of the Corporation are closed, such person
shall be deemed to have become the holder of such shares at the close of
business on the next succeeding date on which the stock transfer books are
open.

      3.    EXCHANGE OF WARRANT.

            (a)   In addition to, and independent of, the rights of the holder
of this Warrant set forth in Section 2 hereof, the holder hereof may at any
time or from time to time elect to receive, without the payment by the holder
of any additional consideration, that number of Warrant Shares determined as
hereinafter provided in this Section 3 by the surrender of this Warrant or any
portion hereof to the Corporation, accompanied by an executed Notice of
Exchange in substantially the form thereof attached hereto (the "Net Issue
Election"). Thereupon, the Corporation shall issue to the holder hereof such
number of fully paid and nonassessable Warrant Shares as is computed using the
following formula:

                                   X = Y (A-B)
                                       -------
                                          A

where X =   the number of Warrant Shares to be issued to the holder pursuant to
            this Section 3.

      Y =   the number of Warrant Shares covered by this Warrant in respect of
            which the Net Issue Election is made pursuant to this Section 3.

      A =   the Fair Market Value (as hereinafter defined) of one Warrant Share
            determined at the time the Net Issue Election is made pursuant to
            this Section 3 (the "Determination Date").

      B =   the Warrant Price in effect under this Warrant at the time the Net
            Issue Election is made pursuant to this Section 3.

For purposes of the above calculation, "Fair Market Value" of one Warrant Share
as of the Determination Date shall mean:

            (i)   (A) if the Common Stock of the Corporation is not then traded
      on a national securities exchange, the average of the closing prices
      quoted on the National Association of Securities Dealers, Inc. Automated
      Quotation National Market System, if applicable, or the average of the
      last bid and asked prices of the Common Stock quoted in the
      over-the-counter-market or (B) if the Common Stock is then traded on a
      national securities exchange, the average of the high and low prices of
      the Common Stock listed on the principal national securities exchange on
      which the Common Stock is so traded, in each case for the twenty

                                       3

<PAGE>   35

                                                                    CONFIDENTIAL

      (20) trading days immediately preceding the Determination Date or, if such
      date is not a business day on which shares are traded, the next
      immediately preceding trading day;

            (ii)  in the event of a Warrant Exchange in connection with a
      Corporate Transaction, the value per share of Common Stock received or
      receivable by each holder thereof (assuming for purposes of this
      determination, in the case of a sale of assets, the Corporation is
      liquidated immediately following such sale and the consideration paid to
      the Corporation is immediately distributed to its stockholders); and

            (iii) in all other circumstances, the fair market value per share
      of Common Stock as determined by a nationally recognized independent
      investment banking firm jointly selected by the Corporation and the
      holder of this Warrant or, if such selection cannot be made within five
      business days after delivery of the Notice of Exchange referred to above,
      by a nationally recognized independent investment banking firm selected
      by the American Arbitration Association then obtaining.

The closing of any Warrant Exchange shall take place at the offices of the
Corporation on the date specified in the Notice of Exchange (the "Exchange
Date"), which shall be not less than five and not more than 30 days after the
delivery of such Notice. At such closing, the Corporation shall issue and
deliver to the holder or its designee a certificate or certificates for the
Warrant Shares to be issued upon such Warrant Exchange, registered in the name
of the holder or such designee, and if such Warrant Exchange shall not have
been for all Warrant Shares, a new Warrant, registered in the name of the
holder, of like tenor to this Warrant for the number of shares still subject to
this Warrant following such Warrant Exchange.

      4.    ADJUSTMENT OF WARRANT PRICE.

            (a)   The Warrant Price shall be subject to adjustment from time to
time as follows:

            (i)   If the Corporation shall at any time or from time to time
      during the Exercise Period, issue any shares of Common Stock (or be
      deemed to have issued any shares of Common Stock as provided herein),
      other than Excluded Securities (as defined in Section 4(a)( v)) without
      consideration or for a consideration per share less than the Fair Market
      Value (determined in accordance with the formula set forth in Section 3)
      of a share of Common Stock in effect immediately prior to the issuance of
      Common Stock, the Warrant Price in effect immediately prior to such
      issuance shall forthwith be lowered to a price equal to the quotient
      obtained by dividing: (x) an amount equal to the sum of (1) the total
      number of shares of Common Stock outstanding (including any shares of
      Common Stock deemed to have been issued pursuant to Section 4(a)(ii)(D))
      immediately prior to such issuance multiplied by the Warrant Price in
      effect immediately prior to such issuance, plus (2) the consideration
      received by the Corporation upon such

                                       4

<PAGE>   36

                                                                    CONFIDENTIAL

      issuance, by (y) the total number of shares of Common Stock outstanding
      (including any shares of Common Stock deemed to have been issued pursuant
      to Section 4(a)(ii)(D)) immediately after the issuance of such Common
      Stock.

            (ii)  For the purposes of any adjustment of the Warrant Price
      pursuant to Section 4(a)(i), the following provisions shall be
      applicable:

                  (A)   In the case of the issuance of Common Stock for cash,
      the consideration shall be deemed to be the amount of cash paid therefor
      before deducting therefrom any discounts, commissions or other expenses
      allowed, paid or incurred by the Corporation for any underwriting or
      otherwise in connection with the issuance and sale thereof.

                  (B)   In the case of the issuance of Common Stock for a
      consideration in whole or in part other than cash, the consideration
      other than cash shall be deemed to be the fair market value thereof as
      determined in good faith by the Board of Directors of the Corporation,
      irrespective of any accounting treatment.

                  (C)   In the case of the issuance of Common Stock without
      consideration, the consideration shall be deemed to be $0.01 per share.

                  (D)   In the case of the issuance of (x) options to purchase
      or rights to subscribe for Common Stock, (y) securities by their terms
      convertible into or exchangeable for Common Stock or (z) options to
      purchase rights to subscribe for such convertible or exchangeable
      securities:

                        (1)   the aggregate maximum number of shares of Common
       Stock deliverable upon exercise of such options to purchase or rights to
       subscribe for Common Stock shall be deemed to have been issued at the
       time such options or rights were issued and for a consideration equal to
       the consideration (determined in the manner provided in subdivisions
       (A), (B) and (C) above), if any, received by the Corporation upon the
       issuance of such options or rights plus the minimum purchase price
       provided in such options or rights for the Common Stock covered thereby;

                        (2)   the aggregate maximum number of shares of Common
       Stock deliverable upon conversion of or in exchange for any such
       convertible or exchangeable securities or upon the exercise of options
       to purchase or rights to subscribe for such convertible or exchangeable
       securities and subsequent conversion or exchange thereof shall be deemed
       to have been issued at the time such securities were issued or such
       options or rights were issued and for a consideration equal to the
       consideration received by the Corporation for any such securities and
       related options or rights (excluding any cash received on account of
       accrued interest or accrued dividends), plus the additional
       consideration, if any, to be received by the Corporation upon the
       conversion or exchange of such

                                       5

<PAGE>   37

                                                                    CONFIDENTIAL

            securities or the exercise of any related options or rights (the
            consideration in each case to be determined in the manner provided
            in subdivisions (A), (B) and (C) above);

                        (3)   on any change in the number of shares or exercise
            price of Common Stock deliverable upon exercise of any such options
            or rights or conversions of or exchanges for such securities, other
            than a change resulting from the antidilution provisions thereof,
            the applicable Warrant Price shall forthwith be readjusted to such
            Warrant Price as would have resulted had the adjustment made upon
            the issuance of such options, rights or securities not converted
            prior to such change (or options or rights related to such
            securities not converted prior to such change) been made upon the
            basis of such change; provided, however, that such readjustment
            shall not result in a Warrant Price that is greater than the
            original Warrant Price; and

                        (4)   on the expiration of all such options or rights,
            the termination of all such rights to convert or exchange or the
            expiration of all options or rights related to such convertible or
            exchangeable securities in each case having been issued by the
            Corporation for the same consideration (as determined pursuant to
            subdivision (A), (B) and (C) above), the applicable Warrant Price
            shall forthwith be readjusted to such Warrant Price as would have
            resulted had the adjustment made upon the issuance of such options,
            rights, securities or options or rights related to such securities
            not been made; provided, however, that such readjustment shall not
            result in a Warrant Price that is greater that the original Warrant
            Price.

                  (iii) If, at any time during the Exercise Period, the number
   of shares of Common Stock outstanding is increased by a stock dividend
   payable in shares of Common Stock or by a subdivision or split-up of shares
   of Common Stock, then, following the record date fixed for the determination
   of holders of Common Stock entitled to receive such stock dividend,
   subdivision or split-up, the Warrant Price shall be appropriately decreased
   and the number of shares of Common Stock issuable upon exercise of this
   Warrant shall be appropriately increased, in each case in proportion to such
   increase in outstanding shares.

                  (iv)  If, at any time during the Exercise Period, the number
   of shares of Common Stock outstanding is decreased by a combination of the
   outstanding shares of Common Stock, then, following the record date for such
   combination, the Warrant Price shall be appropriately increased and the
   number of shares of Common Stock issuable upon exercise of this Warrant
   shall be appropriately decreased, in each case, in proportion to such
   decrease in outstanding shares.

                  (v)   For purposes of Section 4(a), the term "Excluded
   Securities" shall mean (A) shares of Common Stock (subject to equitable
   adjustment

                                       6

<PAGE>   38

                                                                    CONFIDENTIAL

   for stock splits, dividends, combinations and like occurrences) issued to
   officers, employees or directors of Corporation, pursuant to any agreement,
   plan or arrangement approved by the Board of Directors of the Corporation,
   or options to purchase or rights to subscribe for such Common Stock, or
   securities by their terms convertible into or exchangeable for such Common
   Stock, or options to purchase or rights to subscribe for such convertible or
   exchangeable securities pursuant to such agreement, plan or arrangement; (B)
   shares of Common Stock issued as a stock dividend or upon any stock split or
   other subdivision or combination of shares of Common Stock; (C) securities
   issued pursuant to the acquisition of another corporation or other entity by
   the Corporation by merger or purchase of stock or purchase of all or
   substantially all of such other corporation's or other entity's assets
   whereby the Corporation owns not less than a majority of the voting power of
   such other corporation or other entity following such acquisition or
   purchase; or (D) securities issued in an underwritten public offering
   approved by the Board of Directors.

                  (vi)  All calculations under this Section 4 shall be made to
   the nearest one tenth (1/10) of a cent or to the nearest one tenth (1/10) of
   a share, as the case may be.

            (b)   Whenever the Warrant Price shall be adjusted as provided in
this Section 4 the Corporation shall forthwith file, at the office of the
Corporation or any transfer agent designated by the Corporation for the Common
Stock, a statement, signed by its chief financial officer, showing in detail
the facts requiring such adjustment and the adjusted Warrant Price. The
Corporation shall also cause a copy of such statement to be sent by first-class
certified mail, return receipt requested, postage prepaid, to each holder of a
Warrant at his or its address appearing on the Corporation's records. Where
appropriate, such copy may be given in advance and may be included as part of a
notice required to be mailed under the provisions set forth immediately below.

            (c)   In the event the Corporation shall propose to take any action
of the types described in Section 4(a)(iii) or (iv) or Section 11, the
Corporation shall give notice to each holder of a Warrant in the manner set
forth herein, which notice shall specify the record date, if any, with respect
to any such action and the date on which such action is to take place. Such
notice shall also set forth such facts with respect thereto as shall be
reasonably necessary to indicate the effect of such action (to the extent such
effect may be known at the date of such notice) on the Warrant Price then in
effect and the number, kind or class of shares or other securities or property
which shall be delivered or purchasable upon the occurrence of such action or
deliverable upon exercise of this Warrant. In the case of any action which
would require the fixing of a record date, such notice shall be given at least
10 days prior to the date so fixed, and in case of all other action, such
notice shall be given at least 20 days prior to the taking of such proposed
action. Failure to give such notice, or any defect therein, shall not affect
the legality or validity of any such action.

      5.    ADJUSTMENT OF WARRANT SHARES. Upon each adjustment of the Warrant
Price as provided in Section 4, the holder hereof shall thereafter be entitled
to subscribe

                                       7

<PAGE>   39

                                                                    CONFIDENTIAL

for and purchase, at the Warrant Price resulting from such adjustment, the
number of Warrant Shares equal to the product of (i) the number of Warrant
Shares existing prior to such adjustment and (ii) the quotient obtained by
dividing (A) the Warrant Price existing prior to such adjustment by (B) the new
Warrant Price resulting from such adjustment. No fractional shares of Common
Stock shall be issued as a result of any such adjustment, and any fractional
shares resulting from the computations pursuant to this paragraph shall be
eliminated without consideration.

      6.    COVENANTS AS TO COMMON STOCK. The Corporation covenants and agrees
that all shares of Common Stock that may be issued upon the exercise of the
rights represented by this Warrant, will, upon issuance, be validly issued,
fully paid and non-assessable and free from all taxes, liens and charges with
respect to the issuance thereof. The Corporation further covenants and agrees
that the Corporation will from time to time take all such action as may be
requisite to assure that the stated or par value per share of Common Stock is
at all times equal to or less than the then effective Warrant Price per share
of Common Stock issuable upon exercise of this Warrant. The Corporation further
covenants and agrees that the Corporation will at all times have authorized and
reserved, free from preemptive rights, a sufficient number of shares of Common
Stock to provide for the exercise of the rights represented by this Warrant.
The Corporation further covenants and agrees that if any shares of capital
stock to be reserved for the purpose of the issuance of shares of Common Stock
upon the exercise of this Warrant require registration with or approval of any
governmental authority under any Federal or state law before such shares may be
validly issued or delivered upon exercise, then the Corporation will in good
faith and expeditiously as possible endeavor to secure such registration or
approval, as the case may be. If and so long as the Common Stock issuable upon
the exercise of the rights represented by this Warrant is listed on any
national securities exchange, the Corporation will, if permitted by the rules
of such exchange, list and keep listed on such exchange, upon official notice
of issuance, all shares of such capital stock.

      7.    NO SHAREHOLDER RIGHTS. This Warrant shall not entitle the holder
hereof to any voting rights or other rights as a shareholder of the
Corporation.

      8.    RESTRICTIONS ON TRANSFER. The holder of this Warrant acknowledges
that neither this Warrant nor the Warrant Shares have been registered under the
Securities Act of 1933, as amended (the "Securities Act") and the holder of
this Warrant agrees that no sale, transfer, assignment, hypothecation or other
disposition of this Warrant or the Warrant Shares shall be made in the absence
of (a) current registration statement under the Securities Act as to this
Warrant or the Warrant Shares and the registration or qualification of this
Warrant or the Warrant Shares under any applicable state securities laws is
then in effect or (ii) an opinion of counsel reasonably satisfactory to the
Corporation to the effect that such registration or qualification is not
required. Each certificate or other instrument for Warrant Shares issued upon
exercise of this Warrant shall, if required under the Securities Act or the
rules promulgated thereunder, be imprinted with a legend substantially to the
foregoing effect.

                                       8

<PAGE>   40

                                                                    CONFIDENTIAL

      9.    Investor Rights Agreement. Anything contained herein to the
contrary notwithstanding, the Warrant Shares shall be entitled to all rights
and benefits accorded thereto in that certain Third Amended and Restated
Investors' Rights Agreement, dated as of December 22, 1999, by and among the
Corporation and the Investors (as defined therein) .

      10.   TRANSFER OF WARRANT; AMENDMENT. Subject to the restriction set
forth in Section 8, this Warrant and all rights hereunder are transferable, in
whole, or in part, at the agency or office of the Corporation referred to in
Section 2, by the holder hereof in person or by duly authorized attorney, upon
surrender of this Warrant properly endorsed. Each taker and holder of this
Warrant, by taking or holding the same, consents and agrees that this Warrant,
when endorsed, in blank, shall be deemed negotiable, and, when so endorsed the
holder hereof may be treated by the Corporation and all other persons dealing
with this Warrant as the absolute owner hereof for any purposes and as the
person entitled to exercise the rights represented by this Warrant, or to the
transfer hereof on the books of the Corporation, any notice to the contrary
notwithstanding; but until each transfer on such books, the Corporation may
treat the registered holder hereof as the owner hereof for all purposes.

      11.   REORGANIZATIONS, ETC. In case, at any time during the Exercise
Period, of any capital reorganization, of any reclassification of the stock of
the Corporation (other than a change in par value or from par value to no par
value or from no par value to par value or as a result of a stock dividend or
subdivision, split-up or combination of shares), or the consolidation or merger
of the Corporation with or into another corporation (other than a consolidation
or merger in which the Corporation is the continuing operation and which does
not result in any change in the Common Stock) or of the sale of all or
substantially all the properties and assets of the Corporation as an entirety
to any other corporation, this Warrant shall, after such reorganization,
reclassification, consolidation, merger or sale, be exercisable for the kind
and number of shares of stock or other securities or property of the
Corporation or of the corporation resulting from such consolidation or
surviving such merger or to which such properties and assets shall have been
sold to which such holder would have been entitled if he had held the Common
Stock issuable upon the exercise hereof immediately prior to such
reorganization, reclassification, consolidation, merger or sale. In any such
reorganization or other action or transaction described above, appropriate
provision shall be made with respect to the rights and interests of the holder
of this Warrant to the end that the provisions hereof (including, without
limitation, provisions for adjustments of the Warrant Price and of the number
of shares purchasable and receivable upon the exercise of this Warrant) shall
thereafter be applicable, as nearly as may be, in relation to any shares of
stock, securities or assets thereafter deliverable upon the exercise hereof.
The Corporation will not effect any such consolidation, merger or sale unless,
prior to the consummation thereof, the successor corporation or entity (if
other than the Corporation) resulting from such transaction or the corporation
or entity purchasing such assets shall assume by written instrument, executed
and mailed or delivered to the registered holder hereof at the last address of
such holder appearing on the books of the Corporation, the obligation to
deliver to such holder such shares of stock, securities or assets as, in
accordance with the foregoing provisions, such holder may be entitled to
purchase.

                                       9

<PAGE>   41

                                                                    CONFIDENTIAL

      12.   LOST, STOLEN, MUTILATED OR DESTROYED WARRANT. If this Warrant is
lost, stolen, mutilated or destroyed, the Corporation may, on such terms as to
indemnity or otherwise as it may in its discretion impose (which shall, in the
case of a mutilated Warrant, include the surrender thereof), issue a new
Warrant of like denomination and tenor as the Warrant so lost, stolen,
mutilated or destroyed. Any such new Warrant shall constitute an original
contractual obligation of the Corporation, whether or not the allegedly lost,
stolen, mutilated or destroyed Warrant shall be at any time enforceable by
anyone.

      13.   MODIFICATION AND WAIVER. This Warrant and any provision hereof may
be changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of the same is sought.

      14.   NOTICES. All notices, advices and communications to be given or
otherwise made to any party to this Agreement shall be deemed to be sufficient
if contained in a written instrument delivered in person or by telecopier or
duly sent by first class registered or certified mail, return receipt
requested, postage prepaid, or by overnight courier, or by electronic mail,
with a copy thereof to be sent by mail (as aforesaid) within 24 hours of such
electronic mail, addressed to such party at the address set forth below or at
such other address as may hereafter be designated in writing by the addressee
to the addresser listing all parties:

            If to the Corporation, to:

               VarsityBooks.com Inc.
               2020 K St., NW
               6th Floor
               Washington, DC 20006
               Attention:  Richard Hozik
               Telecopier:  202-332-5498
               Electronic mail:  rich@varsitybooks.com

               With a copy to:

               Shaw Pittman
               1676 International Drive
               McLean, Virginia 22102-4835
               Attention: Andrew M. Tucker
               Telecopier:  703-790-7901
               Electronic mail: andy.tucker@shawpittman.com

         and

                                       10

<PAGE>   42

                                                                    CONFIDENTIAL

            If to AOL as follows:

               America Online, Inc.
               22000 AOL Way
               Dulles, Virginia  20166
               Attention:  General Counsel
               Telecopier: (703) 265-2208
               Electronic mail:  PTCapp@aol.com

Or to such other address as the party to whom notice is to be given may have
furnished to the other parties hereto in writing in accordance herewith. Any
such notice or communication shall be deemed to have been delivered and
received (i) in the case of personal delivery or delivery by telecopier, on the
date of such deliver, (ii) in the case of nationally-recognized overnight
courier, on the next business day after the date when sent and (ii) in the case
of mailing, on the third business day following that on which the piece of mail
containing such communication is posted. As used in this Section 14, "business
day" shall mean any day other than a day on which banking institutions in the
Commonwealth of Virginia are legally closed for business.

      15.   BINDING EFFECT ON SUCCESSORS; SURVIVAL. This Warrant shall be
binding upon any corporation succeeding the Corporation by merger,
consolidation or acquisition of all or substantially all of the Corporation's
assets. All of the obligations of the Corporation relating to the Common Stock
issuable upon the exercise of this Warrant shall survive the exercise and
termination of this Warrant. All of the covenants and agreements of the
Corporation shall inure to the benefit of the successors and assigns of AOL.

      16.   DESCRIPTIVE HEADINGS AND GOVERNING LAW. The description headings of
the several sections and paragraphs of this Warrant are inserted for
convenience only and do not constitute a part of this Warrant. This Warrant
shall be construed and enforced in accordance with, and the rights of the
parties shall be governed by, the laws of the State of Delaware.

      17.   FRACTIONAL SHARES. No fractional shares shall be issued upon
exercise of this Warrant. The Corporation shall, in lieu of issuing any
fractional share, pay the holder entitled to such fraction a sum in cash equal
to such fraction multiplied by the then Fair Market Value of one Warrant Share.

                                     * * *

                                       11

<PAGE>   43

                                                                    CONFIDENTIAL

      IN WITNESS WHEREOF, the undersigned have caused this Warrant and Warrant
Agreement to be executed by their duly authorized officers on the date first
above written.

                                    VARSITYBOOKS.COM INC.

                                    By:  /s/ VARSITYBOOKS.COM INC.
                                        ----------------------------------------
                                          Name:  Eric J. Kuhn
                                          Title: Chief Executive Officer

ATTEST:
        ---------------------------
         SECRETARY

                                    AMERICA ONLINE, INC.

                                    By:  /s/ AMERICA ONLINE, INC.
                                        ----------------------------------------
                                          Name:
                                          Title:

                                       12

<PAGE>   44

                                                                    CONFIDENTIAL

                              FORM OF SUBSCRIPTION

                    [To be signed upon exercise of Warrant]

            The undersigned, the holder of the Warrant, hereby irrevocably
elects to exercise the purchase rights represented by such Warrant for, and to
purchase thereunder, _________ shares of _________ of Varsitybooks.com Inc.,
and herewith makes payment of $_________ therefor, and requests that the
certificates for such shares be issued in the name of and delivered to,
_________________________________, whose address is
_________________________________________________.

Dated:
      --------------
                                    ---------------------------------
                                   (Signature)

                                    ---------------------------------
                                    (Address)

                                       13

<PAGE>   45

                                                                    CONFIDENTIAL

                               NOTICE OF EXCHANGE

                        (To be executed by the Holder in
                        order to exchange the Warrant.)

            The undersigned hereby irrevocably elects to exchange this Warrant
into __________ shares (the foregoing number constituting the number of Warrant
Shares to be issued pursuant to Section 3 of this Warrant) of ________ of
Varsitybooks.com Inc., minus any shares to be deducted from the foregoing
number in accordance with the terms of this Warrant, according to the
conditions thereof. The undersigned desires to consummate such exchange on
________________.

Dated:

                                    -----------------------------
                                    Name of Holder:

                                    By:
                                       --------------------------

                                       14

<PAGE>   46

                                                                    CONFIDENTIAL

                               FORM OF ASSIGNMENT

                  [To be signed only upon transfer of Warrant]

            For value received, the undersigned hereby sells, assigns and
transfers unto the right represented by the Warrant to purchase _______ shares
of _________ of Varsitybooks.com Inc., to which the Warrant relates, and
appoints [Name of Attorney] to transfer such right on the books of [ISSUER],
with full power of substitution in the premises.

Dated:
      -------------
                                   ---------------------------------------------
                                   (Signature)

Signed in the presence of:

------------------------------

                                       15

<PAGE>   47
      ADDENDUM NUMBER 1 TO VARSITYBOOKS.COM INC. STOCK SUBSCRIPTION WARRANT

       This Addendum (this "Addendum") to that certain VarsityBooks.com Inc.
Stock Subscription Warrant (the "Warrant") dated December 22, 1999, by and
between America Online, Inc. ("AOL"), and VarsityBooks.com Inc. (the
"Corporation") is made as of December 22, 1999, by and between AOL and the
Corporation. Capitalized terms used herein and not otherwise defined shall have
the meanings ascribed to them in the Warrant.

       For valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties desire to amend certain provisions of the
Warrant as follows:

       Exhibit A of the Warrant shall be amended and restated in its entirety
to read as set forth on Exhibit A attached hereto.

       In witness whereof the Parties have executed this Addendum as of the
date written hereinabove.

AMERICA ONLINE, INC.

BY:
   ---------------------------------
TITLE:
      ------------------------------

VARSITYBOOKS.COM INC.

BY:
   ---------------------------------
TITLE:
      ------------------------------

                                      16
<PAGE>   48
                                    EXHIBIT A

                         NUMBER OF SHARES FOR WHICH THE
                          WARRANT SHALL BE EXERCISABLE:

Up to a maximum 463,246 Warrant Shares (subject to adjustment in accordance
with the terms of this Warrant) shall vest as follows:

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
Number of Warrant Shares                     Vesting
---------------------------------------------------------------------------------------------------
<S>                                          <C>
(A) 154,414                                  Fully vested as of the date hereof.
---------------------------------------------------------------------------------------------------
(B) *                                        Shall vest and become exercisable upon the
                                             attainment between the Effective Date and March 31,
                                             2000 of * "click-thrus" of the Promotions;
                                             provided, however, that if the * threshold is
                                             not attained prior to March 31, 2000, no Warrant
                                             Shares shall vest pursuant to this Exhibit A,
                                             Section (B) and these Warrant Shares shall not vest
                                             in subsequent periods.
---------------------------------------------------------------------------------------------------
(C) *                                        Shall vest and become exercisable upon the
                                             attainment between April 1, 2000 and June 30, 2000
                                             of * "click-thrus" of the Promotions;
                                             provided, however, that if the * threshold is
                                             not attained between April 1, 2000 and June 30,
                                             2000, no Warrant Shares shall vest pursuant to this
                                             Exhibit A, Section (C) and these Warrant Shares shall
                                             not vest in subsequent periods.
---------------------------------------------------------------------------------------------------
(D) *                                        Shall vest and become exercisable upon the
                                             attainment between July 1, 2000 and September 30,
                                             2000 of * "click-thrus" of the Promotions;
                                             provided, however, that if the * threshold is
                                             not attained between July 1, 2000 and September 30,
                                             2000, no Warrant Shares shall vest pursuant to this
                                             Exhibit A, Section (D) and these Warrant Shares shall
                                             not vest in subsequent periods.
---------------------------------------------------------------------------------------------------
(E) *                                        Shall vest and become exercisable upon the
                                             attainment between October 1, 2000 and December 31,
                                             2000 of * "click-thrus" of the Promotions;
                                             provided, however, that if the * threshold is
                                             not attained between October 1, 2000 and December
                                             31, 2000, no Warrant Shares shall vest pursuant to
                                             this Exhibit A, Section (E) and these Warrant Shares
                                             shall not vest in subsequent periods.
---------------------------------------------------------------------------------------------------
(F) *                                        Shall vest and become exercisable upon the
                                             attainment between the January 1, 2001 and March 31,
                                             2001 of ** "click-thrus" of the Promotions;
                                             provided, however, that if the ** threshold is
                                             not attained between January 1, 2001 and March 31,
                                             2000, no Warrant Shares shall vest pursuant to this
                                             Exhibit A, Section (F) and these Warrant Shares
                                             shall not vest in subsequent periods.
---------------------------------------------------------------------------------------------------
(G) *                                        Shall vest and become exercisable upon the
                                             attainment between April 1, 2001 and June 30, 2001
                                             of ** "click-thrus" of the Promotions;
                                             provided, however, that if the ** threshold is
                                             not attained between April 1, 2001 and June 30,
                                             2001, no Warrant Shares shall vest pursuant to this
                                             Exhibit A, Section (G) and these Warrant Shares shall
                                             not vest in subsequent periods.
---------------------------------------------------------------------------------------------------
(H) *                                        Shall vest and become exercisable upon the
                                             attainment between July 1, 2001 and September 30,
                                             2001 of ** "click-thrus" of the Promotions;
                                             provided, however, that if the ** threshold is
                                             not attained between July 1, 2001 and September 30,
                                             2001, no Warrant Shares shall vest pursuant to this
                                             Exhibit A, Section (H) and these Warrant Shares shall
                                             not vest in subsequent periods.
---------------------------------------------------------------------------------------------------
(I) *                                        Shall vest and become exercisable upon the
                                             attainment between October 1, 2001 and December 31,
                                             2001 of ** "click-thrus" of the Promotions;
                                             provided, however, that if the ** threshold is
                                             not attained between October 1, 2001 and December
                                             31, 2001, no Warrant Shares shall vest pursuant to
                                             this Exhibit A, Section (I) and these Warrant Shares
                                             shall not vest in subsequent periods.
---------------------------------------------------------------------------------------------------
(J) *                                        Shall vest and become exercisable upon the
                                             attainment between the January 1, 2002 and March 31,
                                             2002 of ** "click-thrus" of the Promotions;
                                             provided, however, that if the ** threshold is
                                             not attained between January 1, 2002 and March 31,
                                             2002, no Warrant Shares shall vest pursuant to this
                                             Exhibit A, Section (J) and these Warrant Shares
                                             shall not vest in subsequent periods.
---------------------------------------------------------------------------------------------------
(K) *                                        Shall vest and become exercisable upon the
                                             attainment between April 1, 2002 and June 30, 2002
                                             of ** "click-thrus" of the Promotions;
                                             provided, however, that if the ** threshold is
                                             not attained between April 1, 2002 and June 30,
                                             2002, no Warrant Shares shall vest pursuant to this
                                             Exhibit A, Section (K) and these Warrant Shares shall
                                             not vest in subsequent periods.
---------------------------------------------------------------------------------------------------
(L) *                                        Shall vest and become exercisable upon the
                                             attainment between July 1, 2002 and September 30,
                                             2002 of ** "click-thrus" of the Promotions;
                                             provided, however, that if the ** threshold is
                                             not attained between July 1, 2002 and September 30,
                                             2002, no Warrant Shares shall vest pursuant to this
                                             Exhibit A, Section (L) and these Warrant Shares shall
                                             not vest in subsequent periods.
---------------------------------------------------------------------------------------------------
(M) *                                        Shall vest and become exercisable upon the
                                             attainment between October 1, 2002 and December 22,
                                             2002 of ** "click-thrus" of the Promotions;
                                             provided, however, that if the ** threshold is
                                             not attained between October 1, 2002 and December
                                             31, 2002, no Warrant Shares shall vest pursuant to
                                             this Exhibit A, Section (M) and these Warrant Shares
                                             shall not vest in subsequent periods.
---------------------------------------------------------------------------------------------------
</TABLE>

* Notwithstanding any provision of this Exhibit A to the contrary, in event
that ICQ shall fail to deliver the * required to be delivered under the
Agreement prior to January 15, 2001, (i) the "click-thru" thresholds required
under each of Sections (F), (G), (H) and (I) of this Exhibit A shall be
increased from * and (ii) the "click-thru" thresholds required under each of
Sections (J), (K), (L) and (M) of this Exhibit A shall be increased from *

                                      17

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