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                                                                    EXHIBIT 10.1

   CONFIDENTIAL MATERIALS OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

                      CO-MARKETING AND MEMBERSHIP AGREEMENT

         This Co-Marketing and Membership Agreement (this "AGREEMENT") dated as
of this 1st day of February, 2001 (the "EFFECTIVE DATE") is between Princeton
Review Publishing, L.L.C., and The Princeton Review Management, L.L.C., a
Delaware limited liability company ("TPR"), having its principle place of
business at 2315 Broadway, New York, New York 10024 and Student Advantage, Inc.,
a Delaware corporation ("SA"), having its principle offices at 280 Summer
Street, Boston, Massachusetts 02210.

                                   BACKGROUND

         WHEREAS, SA owns and operates a network of sites on the world wide web
portion (the "WEB") of the Internet targeted towards college students and alumni
which includes, but is not limited to, collegeclub.com (the "SA NETWORK") and
markets a membership program (the "SA MEMBERSHIP") which allows high school,
college and university students who are Members of the SA Membership (the "SA
MEMBERS") to purchase goods and services from certain merchants and corporate
partners at an exclusive discount using their membership identification number
(the "MEMBER ID") at the time of purchase;

         WHEREAS, TPR is engaged in the sale of preparatory courses and testing
material and other products and services, on a retail basis and via an Internet
web site on the Web located at URL http://www.review.com (the "TPR WEB SITE");

         WHEREAS, SA and TPR desire: (i) that TPR become the premier Test Prep
partner at collegeclub.com from the Effective Date through September 30, 2001
for the purpose of marketing TPR goods and services and promoting the Student
Advantage brand, and (ii) that TPR promote the SA Memberships.

         NOW, THEREFORE, in consideration of the foregoing premises, and other
good and valuable consideration, the receipt of which is hereby acknowledged,
the parties hereto hereby agree as follows:

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1. COLLEGECLUB.COM PROMOTION. TPR will be the premier Test Prep Partner at
collegeclub.com for the period from the Effective Date through September 30,
2001 in a manner to be solely determined by SA but to involve no less than 5
million banner impressions per month during the Term (the "Collegeclub.com
Promotions"). The parties will work together to develop exact nature and form of
the Collegeclub.com Promotions.

2. TPR PROMOTION OF SA AND SA MEMBERSHIPS. TPR will maintain a 120x60 badge
promoting SA on relevant parts of its web site, and will promote the SA
Membership through ads and email, in its sole discretion.

3. CONTENT INTEGRATION. Both parties will make reasonable efforts to integrate
their respective content provided to the other pursuant to this Agreement for
use on each other's web sites, except to the extent not technically and
contractually feasible (e.g. in cases where content is provided by a third
party), including special features and timely articles.

         3.1.     At a minimum, TPR will provide to SA articles from the major
                  TPR Web Site Channels (including College, Business School,
                  Graduate School, Law School, Medical School, Career and
                  Internships) for use on CollegeClub.com no less frequent than
                  the frequency that such articles are published on the TPR Web
                  Site provided that the content will contain appropriate brands
                  and links back to TPR.

         3.2.     TPR shall endorse and provide access to the SA Scholarship
                  Search through and in relevant areas of the TPR Web Site. TPR
                  agrees that the SA Scholarship Search shall be the only
                  scholarship search on the TPR Web Site, and that SA will share
                  with TPR all users that register on SA's Scholarship Search.
                  This paragraph will only take effect if TPR has not already
                  made a commitment to another scholarship search company.

         3.3.     TPR shall endorse and provide access to SA Academic Research
                  through and in relevant areas of the TPR Web Site. TPR agrees
                  that SA Academic Research shall be the only branded academic
                  research product of this type on the TPR Web Site. We consider
                  "this type" to refer to a search engine that finds appropriate
                  web sites for a topic.

4. PRESS RELEASES. SA and TPR will jointly prepare press releases concerning the
existence of this Agreement and the terms hereof. Otherwise, no public
statements concerning the terms of this Agreement shall be made or released to
any medium except with the prior approval of each party or as required by law,
including applicable securities laws and rules and regulations of the Securities
and Exchange Commission.

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5. FEES AND PAYMENTS.

         5.1.     TPR PROMOTION OF SA. SA will pay TPR $[**] per thousand
                  impressions for 85 million impressions of an approved Student
                  Advantage badge to be displayed on TPR's web site through
                  September 30, 2001. TPR will not serve more than 15 million
                  impressions in any one-month period.

         5.2.     SA MEMBERSHIP. SA shall pay TPR a sales commission (the
                  "Membership Commission") of [**] dollars ($[**]) for each
                  twenty-dollar ($20.00) SA Membership sold through the TPR Web
                  Site or other TPR marketing channels (the "Membership
                  Commission"), so long as full payment for the SA Membership,
                  including shipping and handling, is received by SA.

         5.3.     SA will pay TPR a guaranteed, non-refundable minimum of [**]
                  Dollars ($[**]), credited towards the services provided by TPR
                  in paragraphs 5.1 and 5.2. The first payment under this
                  Section 5.1 of $[**] will be due net 30 from June 30, 2001 and
                  the final payment of $[**] will be due net 30 from September
                  30, 2001. In the event that TPR generates total Membership
                  Commission under this Section 5.1 in excess of $[**] during
                  such period (the "Excess"), TPR will invoice SA on September
                  30, 2001 for such Excess with payment terms of net 30. For all
                  sales of SA Memberships after September 30, 2001, TPR will
                  receive a maximum commission of [**] dollars ($[**]) per
                  Membership sold.

         5.4.     COLLEGECLUB.COM PROMOTION FEE. TPR will pay SA a monthly fee
                  of [**] Dollars ($[**]) as payment for the Collegeclub.com
                  Promotion, with the first two payments of $[**] due net 30
                  from February 28, 2001 and June 30, 2001 and the final payment
                  of $[**] due net 30 from September 30, 2001.

6. TERM/TERMINATION. The Term of the Agreement shall begin on the Effective Date
and continue through December 31, 2001.

         6.1.     This Agreement may be terminated by one party in the event of
                  a material breach of the terms of this Agreement by the other
                  party if said breach is not cured within thirty (30) calendar
                  days after receipt of written notice specifying the breach.

         6.2.     This Agreement may be terminated immediately by one party upon
                  the commencement of a voluntary or involuntary bankruptcy,
                  insolvency, bankruptcy related reorganization or similar
                  proceeding of the other party.

         6.3.     This Agreement may be terminated by one party, if upon
                  consultation with its legal counsel, a party determines the
                  other party is in violation of any federal or state legal or
                  regulatory requirement in connection with or relating to
                  performance of such other party's obligations hereunder.

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7. REPRESENTATIONS AND WARRANTIES. Each of TPR and SA warrant that it has the
power, right, and authority to enter into this Agreement. Each of TPR and
warrant that it will comply at all times with all federal, state and local laws
and regulations applicable to it, including without limitation, all consumer
finance, fair trade and non-discrimination laws and regulations and that this
agreement was negotiated at arms-length. Each of TPR and SA warrant and
represent that its performance hereunder (including, without limitation, their
provision of materials for use by the other party) will not, directly or
indirectly, infringe upon or violate any intellectual property right (including,
but not limited to publicity, privacy, patent, copyright or trademark) or other
proprietary rights of any third party, or constitute defamation, false
advertising, invasion of privacy or violation of any right of publicity or other
right of any third party, or violate any applicable law or regulation. EXCEPT AS
EXPRESSLY PROVIDED IN THIS SECTION, SA MAKES NO OTHER WARRANTIES, EXPRESS OR
IMPLIED, WITH RESPECT TO THE SA NETWORK, ANY OTHER WEB SITE OR ANY OTHER
SERVICES TO BE PROVIDED BY SA HEREUNDER, INCLUDING BUT NOT LIMITED TO ANY
WARRANTIES OF MERCHANTABILITY, TITLE OR FITNESS FOR A PARTICULAR PURPOSE. EXCEPT
AS EXPRESSLY PROVIDED IN THIS SECTION, TPR MAKES NO OTHER WARRANTIES, EXPRESS OR
IMPLIED, WITH RESPECT TO THE TPR WEB SITE, ANY OTHER WEB SITE OR ANY OTHER
PRODUCTS OR SERVICES TO BE PROVIDED BY TPR HEREUNDER, INCLUDING BUT NOT LIMITED
TO ANY WARRANTIES OF MERCHANTABILITY, TITLE OR FITNESS FOR A PARTICULAR PURPOSE.

8. MUTUAL CONFIDENTIALITY. Any confidential information or material furnished or
disclosed by one party to the other party shall remain the exclusive property of
the disclosing party. SA and TPR agree not to disclose the confidential
information of the other party to any third party or use such information expect
as authorized hereunder. Notwithstanding the foregoing, confidential information
shall not include any information that is (a) already known by the receiving
party at the time of its disclosure or becomes publicly known through no
wrongful act of the receiving party or (b) lawfully required to be disclosed to
any government agency or judicial body. For purposes of this Agreement, subject
to Section 9, confidential information shall include any information of a
confidential or proprietary nature, including, without limitation, advertising
materials, any information about SA Members (such as, but not limited to, the SA
Membership list and database and SA Member Data), plans strategies, trade
secrets, techniques, products, research and development, production, costs,
profit information, and the terms of this Agreement.

9. LICENSES/INTELLECTUAL PROPERTY. TPR hereby grants SA a non-exclusive license
to use and reproduce TPR logo and trade name, as such logo and trade name may be
altered from time to time, as is necessary under this Agreement. All use such
logo and trade name shall inure to the benefit of TPR or its affiliates. Such
license will terminate upon termination of this Agreement, except SA will have a
reasonable period of time to clear marketing channels upon any termination. SA
hereby grants TPR a non-exclusive license to use and reproduce the SA logo and
trade name, as such logo and trade name may be altered from

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time to time, as is necessary to promote the SA Memberships as set forth in
Section 2. Such license will terminate upon termination of this Agreement,
except TPR will have a reasonable period of time to clear marketing channels
upon any termination. Both parties reserve the right to make adjustments to
their business and product names. Each party hereby acknowledges the other
party's rights and interests in said party's trademarks and agrees not to claim
any right, title or interest in or to such trademarks or to at any time
challenge or attack said party's rights in or to such trademarks for any reason
whatsoever. TPR acknowledges that SA retains copyright, the right of extraction
and all other rights in the names, addresses and other information pertaining to
SA Members, the SA Member Data, and the SA Membership list and database; except
that the copyright in the TPR Registration Data shall be jointly owned by the
parties, and TPR shall also have a right of extraction and all other rights in
the names, addresses and other information included in such TPR Registration
Data. SA acknowledges that except to the extent it contains intellectual
property rights of SA, which shall be owned by SA, TPR will maintain sole
ownership of the TPR Web Site. TPR agrees that upon the termination of this
Agreement it shall not knowingly attempt to contact or solicit further business
from SA Members who shall have been SA Members at the time of such termination,
except SA Members who registered with TPR at the TPR Web Site, and will not use
the any TPR registration data in contravention of SA's Privacy Policies located
at studentadvantage.com.

10. INDEMNIFICATION. Each party shall defend, indemnify, and hold harmless the
other party, its officers, employees, and affiliates from any claims, demands,
suits, causes of action, liability and expense (including reasonable attorney's
fees and costs) and costs (collectively, "Damages") arising out of or relating
to its grossly negligent performance under this Agreement and/or the breach of
any representations or warranties made by it hereunder. TPR shall also
indemnify, defend and hold harmless SA in respect of any Damages arising from or
relating to the TPR's provision of goods or services to SA Members. SA shall
also indemnify, defend and hold harmless TPR in respect of any Damages arising
from or relating to the SA's provision of goods or services.

11. LIMITATION ON DAMAGES. EXCEPT AS PROVIDED IN SECTION 10 ABOVE,
NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, NEITHER PARTY NOR THEIR
RESPECTIVE AFFILIATES SHALL BE LIABLE TO THE OTHER FOR PUNITIVE, EXEMPLARY,
CONSEQUENTIAL OR INDIRECT DAMAGES, INCLUDING, BUT NOT LIMITED TO DAMAGES
RESULTING FROM LOST PROFITS OR GOODWILL, WHETHER OR NOT THAT PARTY HAS BEEN
ADVISED OR IS AWARE OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT SHALL EITHER
PARTY'S TOTAL, AGGREGATE LIABILITY ARISING FROM OR RELATING TO THIS AGREEMENT
EXCEED THE NET AMOUNT PAID TO SUCH PARTY UNDER THIS AGREEMENT.

12.  GENERAL TERMS.

         12.1.    Notwithstanding anything to the contrary in the Agreement,
                  either TPR or SA shall be entitled to assign its rights under
                  this Agreement to any affiliate of such

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                  party or any successor to of such party, whether by merger,
                  consolidation or purchase of stock or assets.

         12.2.    This Agreement constitutes the entire agreement between the
                  parties with regard to the subject matter hereof and no party
                  shall be liable or bound to any other party in any manner by
                  any warranties, representations, or covenants except as
                  specifically set forth herein. The terms and conditions of
                  this Agreement shall inure to the benefit of and be binding
                  upon the respective heirs, personal representatives, and
                  successors and assigns of the parties, except to the extent
                  assignability is limited herein. This agreement may be amended
                  only with the written consent of both SA and TPR.

         12.3.    Neither party shall be liable for failure to perform any
                  obligation under this Agreement where such failure is due to
                  fire, flood, labor dispute, natural calamity, acts of the
                  government or other causes that are otherwise beyond the
                  control of such party.

         12.4.    The parties to this Agreement are independent contractors.
                  Neither party has the authority to bind the other or to incur
                  any obligation on its behalf except as explicitly provided in
                  this Agreement.

         12.5.    This Agreement shall be governed by and construed under the
                  laws of the Commonwealth of Massachusetts except for such
                  choice of laws principles that would cause the laws of another
                  jurisdiction to govern. All notices, requests and other
                  communications to either party hereunder must be in writing
                  and given to such party at its address set forth above.

         12.6.    This Agreement may be executed in one or more counterparts,
                  each of which will be deemed an original, but which
                  collectively will constitute one and the same instrument.

         12.7.    Any notices or other communications hereunder, except as may
                  otherwise be provided in this Agreement, will be deemed given
                  and delivered when delivered personally or telecopied by
                  confirmed facsimile, or the day signed for or rejected by
                  addressee after mailing by registered or certified mail,
                  return receipt requested, or the next business day if sent by
                  nationally recognized overnight courier providing for a return
                  receipt, in each case postage prepaid, addressed to the
                  address on the first page hereof or to such other address as
                  either party shall designate by written notice to the other,
                  effective ten (10) days after such notice.

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IN WITNESS WHEREOF, the parties have hereunto executed this document as of that
day and year first written above.

STUDENT ADVANTAGE, INC.                   THE PRINCETON REVIEW, INC

By: /s/ Raymond V. Sozzi, Jr.             By: /s/ John Katzman
    -------------------------                 --------------------------

Name:  Raymond V. Sozzi, Jr.              Name:  John Katzman
       ----------------------                    -----------------------
Title: President                          Title: Chief Executive Officer
       ----------------------                    -----------------------

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                      CO-MARKETING AND MEMBERSHIP AGREEMENT
                                 AMENDMENT NO. 1

         This Amendment No. 1 (the "AMENDMENT") is made and entered into as of
this 10th day of August, 2001, by and between Student Advantage, Inc., a
Delaware corporation ("SA"), having offices at 280 Summer Street, Boston,
Massachusetts 02210 and Princeton Review Publishing, L.L.C. and The Princeton
Review Management, L.L.C., a Delaware limited liability company (collectively,
"TPR"), having its principle place of business at 2315 Broadway, New York, New
York 10024. The aforesaid shall be referred to hereinafter collectively as the
"PARTIES" all other terms shall have the meaning ascribed to them in the
Agreement.

         WHEREAS, the Parties entered into a Co-Marketing and Membership
Agreement dated February 1, 2001 and effective April 1, 2001 (the "AGREEMENT");
and

         WHEREAS, the Parties have decided to amend the Agreement effective as
of the above date, as set forth herein.

         NOW, THEREFORE, in consideration of these premises and the mutual
promises herein contained, it is agreed by and among the Parties as follows:

1.       Section 3 of the Agreement is hereby amended to include the following
         new sections:

         "3.4 DISCOUNT. TPR agrees to provide SA Members an ongoing discount
         (the "OFFER") of a $[**] discount off all TPR online and offline
         regularly priced, complete MCAT, GMAT, LSAT and GRE courses (a
         "COURSE"). The Discount will be redeemable by SA Members through the
         TPR toll-free number (1-800-2-REVIEW) and via online links from the SA
         Network.

         3.5 INCREMENTAL COUPON. In addition to the Discount, TPR will provide
         for inclusion by SA an incremental coupon with a value of [**] Dollars
         ($[**]) off any Course (the "COUPON") for SA Members be included in at
         least 100,000 SA Membership card carriers for the 2001-2002 SA
         Membership year as part of SA's fulfillment kit.

         3.6 Sponsor agrees that it will not provide discounts to, or otherwise
         engage the services of, any company, other than SA, that provides
         ongoing or limited time discounts to Students by means of a national
         student discount card product or any other identification instrument.
         Any non-SA Members that contact Sponsor to inquire about Sponsor's
         national student discount policy will be informed that Sponsor's
         national student discount card discount is offered exclusively through
         SA.

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         3.7 The Discount will be available on all regularly priced products,
         and is valid throughout the term of this Agreement provided the student
         is a valid SA Member.

         3.8 Sponsor agrees that it will require SA Members to submit a valid
         Member ID when making purchases through the TPR toll-free number
         (1-800-2-REVIEW) and via online links from the SA Network."

2.       Section 5 of the Agreement is hereby amended to include the following
         new sections:

         "5.5 OFFER COMMISSION. TPR will pay SA an amount equal to [**] Dollars
         ($[**]) for each Course purchased by an SA Member (the "OFFER
         COMMISSION"). TPR will pay SA the Offer Commissions and send SA reports
         supporting such Offer Commission calculation on a quarterly basis no
         later then thirty (30) days after the end of each calendar quarter.

         5.6 COUPON COMMISSION. TPR will pay SA an amount equal to [**] Dollars
         ($[**]) for each Course purchased by an SA Member (the "COUPON
         COMMISSION") for which a Coupon is submitted. Coupons will be tracked
         by TPR using a unique code. Coupon may only be redeemed via TPR's toll
         free number. TPR will pay SA the Coupon Commissions and send SA reports
         supporting such Coupon Commission calculation on a quarterly basis no
         later then thirty (30) days after the end of each calendar quarter.
         This coupon expires December 31, 2001.

3.       This Amendment may be executed in any number of counterparts, all of
         which together shall constitute one Agreement. Except as specifically
         referenced herein all other terms of the Agreement shall continue in
         full force and effect.

4.       Each party has read this Amendment and understands its terms. Each
         Party has executed this Agreement voluntarily and with full knowledge
         of its legal significance.

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IN WITNESS WHEREOF, the Parties have duly executed and delivered this Amendment
as of the date indicated above.

<TABLE>
<S>                                         <C>
STUDENT ADVANTAGE, INC.                      THE PRINCETON REVIEW, INC.

By (signature) /s/ Josh Fraser               By (signature) /s/ Stephen Quattrocinch
----------------------------------------     ----------------------------------------

Name  Josh Fraser                            Name  Stephen Quattrocinch
----------------------------------------     ----------------------------------------

Title  VP, Business Development              Title  Executive Vice President
----------------------------------------     ----------------------------------------

</TABLE>

                                       10<PAGE>

EXHIBIT 10.4(2) FORM OF EMPLOYMENT AGREEMENT WITH SCOTT P. DICKEY DATED
                MARCH 28, 2001.

                              EMPLOYMENT AGREEMENT
                              --------------------

This EMPLOYMENT AGREEMENT is dated as of March 28, 2001 (this "Agreement"), by
and between FOTOBALL USA, INC., a Delaware corporation (the "Company"), and
Scott P. Dickey ("Executive").

                              W I T N E S S E T H :
                              ---------------------

         WHEREAS, the Company and Executive desire to enter into an employment
relationship upon the terms set forth in this Agreement;

         NOW THEREFORE, in consideration of the premises and mutual covenants
contained herein and for other good and valuable consideration, the adequacy and
receipt of which are hereby acknowledged, the parties agree as follows:

         1.     Employment. (a) The Company hereby employs (the "Employment")
Executive as the President and Chief Operating Officer of the Company. Executive
shall have authority to control the day-to-day operations of the Company,
subject to the general supervision, control and guidance of the Chief Executive
Officer (the "CEO") and the Board of Directors of the Company (the "Board").
Executive hereby accepts the Employment and agrees to (i) render such executive
services, (ii) perform such executive duties and (iii) exercise such executive
supervision and powers to, for and with respect to the Company, as may be
reasonably established by the CEO or the Board, for the period and upon the
terms set forth in this Agreement. Other than the CEO, Executive shall be the
most senior executive officer of the Company during the Term.

                (b) Executive shall devote substantially all of his business
time and attention during the normal business day to the business and affairs of
the Company consistent with his executive positions with the Company, except for
vacations permitted pursuant to Section 3.5 and Disability (as defined in
Section 6.2). This Agreement shall not be construed as preventing Executive from
engaging in charitable and community affairs, or giving attention to his passive
investments, provided that such activities do not interfere with the regular
performance of his duties and responsibilities under this Agreement.

         2.     Term. Except as otherwise specifically  provided in Section 6
below, the term of this Agreement (the "Term") shall commence on April 2, 2001
and shall continue until April 1, 2003, subject to the terms and conditions of
this Agreement.

         3.     Compensation.

                3.1.    Base Salary. Executive shall be paid a base salary (the
"Base Salary") at an annual rate of two hundred thousand dollars ($200,000),
payable in equal payments at such intervals as the other executive officers of
the Company are paid, but in any event at least on a monthly basis.

                3.2.    Bonus.

                        (a)     General. In addition to the Base Salary,
Executive shall be entitled to such bonus compensation ("Bonus Compensation") as
may be determined on a calendar year basis from time to time by the Compensation
Committee of the Board and subject to a budget to be agreed upon by the Board.
The Bonus Compensation for each calendar year shall be paid by the Company to
Executive no later than the date on which similar year-end bonuses are paid to
other senior executive officers of the

<PAGE>

Company.

                        (b)     First Calendar Year. The Company shall cause
the Board to work with Executive to establish in good faith on or prior to May
1, 2001 a bonus compensation plan for Executive for the period from the date
hereof through and including December 31, 2001 (the "First Year Plan Period").
Such plan shall provide for (a) "net income before taxes" targets (determined in
accordance with generally accepted accounting principles applied on a consistent
basis ("GAAP")) at least three separate levels, which, if achieved by the
Company during such period, would entitle Executive to Bonus Compensation of
fifty percent (50%), seventy-five percent (75%) and one hundred percent (100%),
respectively, of Base Salary earned by Executive during the First Year Plan
Period and (b) minimum Bonus Compensation for Executive for such First Year Plan
Period of $37,500.

                        (c)     Subsequent Calendar Years. The Board shall
establish a bonus compensation plan for senior executive officers of the Company
(including, the Executive, the CEO, and the chief financial officer of the
Company) for each calendar year on or prior to the commencement of such calendar
year. Such plan shall provide for "net income before taxes" targets (determined
in accordance with GAAP) at least three separate levels, which, if achieved by
the Company during such period, would entitle Executive to Bonus Compensation of
fifty percent (50%), seventy-five percent (75%) and one hundred percent (100%),
respectively, of Base Salary earned by Executive during such calendar year.

                3.3.    Stock Options.

                (a)     Upon the date hereof, the Company shall cause the
issuance to Executive of non-qualified options (the "First Options") to purchase
not less than 125,000 shares of common stock, $.01 par value (the "Common
Stock"), of the Company at a per share exercise price equal to the closing
market price of the Common Stock on the date hereof on the Nasdaq Stock Market
(the "Initial Closing Price"), subject to vesting pursuant to Section 3.3(c)
hereof and subject to and in accordance with the terms of the 1998 Stock Option
Plan of the Company or any successor stock option plan (the "Plan").

                (b)     The Company shall cause the Board to recommend to the
stockholders of the Company to approve the amendment (the "Amendment") of the
Plan to allow the Company to issue options to purchase up to an aggregate of
175,000 shares of Common Stock to a Plan participant within one fiscal year at
the meeting of stockholders of the Company to be held as soon as reasonably
practicable (the "Stockholders Meeting").

                        (i)     If stockholders approve the Amendment at the
Stockholders Meeting, on the date of the Stockholders Meeting (the "Meeting
Date"), the Company shall cause the issuance to Executive of non-qualified
options (together with the First Options, the "Options") under the Plan to
purchase up to an aggregate number of shares of Common Stock equal to the
greater of (a) 25,000, and (b) 25,000, multiplied by a fraction, the numerator
of which is the closing market price of the Common Stock on the Meeting Date on
the Nasdaq Stock Market (the "Second Closing Price) and the denominator of which
is the Initial Closing Price (the "Adjustment Fraction"), at a per share
exercise price equal to the Second Closing Price, subject to vesting pursuant to
Section 3.3(c) hereof and subject to and in accordance with the terms of the
Plan; provided, that, the Adjustment Fraction shall not exceed 2.

                        (ii)    If stockholders do not approve the Amendment at
the Stockholders Meeting, on the Meeting Date, the Company shall cause the
issuance to Executive of the same number of non-qualified options as would be
issuable under the Plan pursuant to clause (i) above as if stockholders approval
was duly obtained, except that such options shall not be issued under the Plan
(together with the

<PAGE>

First Options, the "Options"), and the Company shall provide Executive with
unlimited "piggyback registration rights" on customary terms and conditions at
the Company's expense. Such Options shall be subject to vesting pursuant to
Section 3.3(c) hereof and subject to and in accordance with the terms of the
Plan.

                (c)     Fifty percent (50%) of the Options shall vest on and be
exercisable as of April 1, 2002, and the remaining Options shall vest on and be
exercisable as of April 1, 2003. Such Options shall provide for "cashless"
exercise rights. Executive's vested Options shall be exercisable for a period of
ten years from the date of issuance. Upon termination of Executive's Employment
with the Company or any of its affiliates, any unvested Options shall lapse,
except as otherwise provided in Section 6 below, and Executive shall have ninety
(90) days from the date of termination in accordance with the terms of this
Agreement to exercise any vested Options (one year in the case of termination by
reason of death or Disability of Executive).

                3.4.    Employee Benefits. In addition to the Base Salary and
the Bonus Compensation, Executive shall be entitled (i) to receive the fringe
benefits now or hereafter provided by the Company to its executive officers,
including, but not limited to, life, hospitalization, surgical, major medical
and disability insurance and sick leave, (ii) to be a full participant in all of
the Company's other benefit plans, pension plans, retirement plans and
profit-sharing plans which may be in effect from time to time or may hereafter
be adopted by the Company, (iii) to all costs and expenses for the maintenance,
including insurance, and operation of Executive's automobile; provided, however,
that such costs and expenses shall not exceed $500 in any month, (iv) to a
reasonable relocation allowance, payable by the Company upon receipt of
appropriate substantiation of expenses and (v) to a housing allowance not to
exceed $3,000 per month, payable by the Company during the first two (2) months
of the Term.

                3.5.    Vacation. During the Term, Executive shall be entitled
to such vacation with pay during each calendar year of his Employment hereunder
consistent with his position as an executive officer of the Company, but in no
event less than three (3) weeks in any such calendar year (pro-rated as
necessary for partial calendar years during the Term). Such vacation may be
taken, in Executive's discretion, at such time or times as are not inconsistent
with the reasonable business needs of the Company. Executive shall not be
entitled to any additional compensation in the event that Executive, for
whatever reason, fails to take such vacation during any year of his Employment
hereunder. Executive shall also be entitled to all paid holidays given by the
Company to its executive officers.

         4.     Indemnification. Executive shall be entitled at all times to the
benefit of the maximum indemnification and advancement of expenses available
from time to time under the laws of the State of Delaware.

         5.     Expenses. During the Term, the Company shall reimburse Executive
upon presentation of appropriate vouchers or receipts in accordance with the
Company's expense reimbursement policies for executive officers, for all
out-of-pocket business travel and entertainment expenses incurred or expended by
Executive in connection with the performance of his duties under this Agreement.

         6.     Consequences of Termination of Employment.

                6.1.    Death. In the event of the death of Executive during the
Term, Executive's Employment hereunder shall be terminated as of the date of his
death and Executive's designated beneficiary, or, in the absence of such
designation, the estate or other legal representative of Executive
(collectively, the "Estate") shall be paid, Executive's unpaid Base Salary
through the month in which the death occurs and any unpaid Bonus Compensation
for any fiscal year which has ended as of the date of

<PAGE>

such termination or which was at least one half (1/2) completed as of the date
of death. In the case of such incomplete fiscal year, the Bonus Compensation
shall be pro-rated and all such Bonus Compensation payable as a result of this
Section 6.1 shall be otherwise payable as determined by the Compensation
Committee of the Board, in its sole discretion. The Estate shall be entitled to
all other death benefits in accordance with the terms of the Company's benefit
programs and plans.

                6.2.    Disability. In the event Executive shall be unable to
render the services or perform his duties hereunder by reason of illness, injury
or incapacity (whether physical, mental, emotional or psychological) (any of the
foregoing shall be referred to herein as a "Disability") for a period of either
(i) ninety (90) consecutive days or (ii) one hundred eighty (180) days in any
consecutive three hundred sixty-five (365) day period, the Company shall have
the right to terminate this Agreement by giving Executive ten (10) days prior
written notice. If Executive's Employment hereunder is so terminated, Executive
shall be paid, in addition to payments under any disability insurance policy in
effect, Executive's unpaid Base Salary through the month in which the
termination occurs, plus Bonus Compensation on the same basis as is set forth in
Section 6.1 above.

                6.3.    Termination of Employment of Executive by the Company
for Cause.

                (a)     Nothing herein shall prevent the Company from
terminating Executive's Employment for Cause (as defined below). From and after
the date of such termination, Executive shall no longer be entitled to receive
Base Salary and Bonus Compensation and the Company shall no longer be required
to pay premiums on any life insurance or disability policy for Executive. Any
rights and benefits which Executive may have in respect of any other
compensation or any employee benefit plans or programs of the Company, whether
pursuant to Section 3.4 or otherwise, shall be determined in accordance with the
terms of such other compensation arrangements or plans or programs. The term
"Cause," as used herein, shall mean that: (i) Executive shall embezzle funds or
misappropriate other property of the Company or any subsidiary; or (ii)
Executive shall willfully disobey a lawful directive of the CEO or the Board,
whether through commission or omission; or (iii) Executive shall breach this
Agreement in a material manner or engage in fraudulent conduct as regards the
Company.

                (b)     The Company shall provide Executive with written notice
stating that it intends to terminate Executive's Employment for Cause under this
Section 6.3 and specifying the particular act or acts on the basis of which the
Board intends to so terminate Executive's Employment. Executive shall then be
given the opportunity, within fifteen (15) days of his receipt of such notice,
to have a meeting with the Board to discuss such act or acts (other than with
respect to an action described in Section 6.3(a)(i) above as to which the Board
may immediately terminate Executive's Employment for Cause. Other than with
respect to an action described in Section 6.3(a)(i) above, Executive shall be
given seven (7) days after his meeting with the Board to take reasonable steps
to cease or correct the performance (or nonperformance) giving rise to such
written notice. In the event the Board determines that Executive has failed
within such seven-day period to take reasonable steps to cease or correct such
performance (or nonperformance), Executive shall be given the opportunity,
within ten (10) days of his receipt of written notice to such effect, to have a
meeting with the Board to discuss such determination. Following that meeting, if
the Board believes that Executive has failed to take reasonable steps to cease
or correct his performance (or nonperformance) as above described, the Board may
thereupon terminate the Employment of Executive for Cause.

                6.4.    Involuntary Termination. In the event the Company
terminates Executive's Employment hereunder, other than for Cause or on account
of death or Disability, or Executive terminates his Employment hereunder for
Good Reason, the Company shall promptly pay Executive a lump sum payment equal
to Executive's unpaid Base Salary for the remainder of the Term hereof and all

<PAGE>

Options shall automatically become fully vested and exercisable. For purposes of
this Agreement, "Good Reason" shall be deemed to exist if: (1) Executive is
assigned any duties inconsistent in any respect with Executive's position
(including status, offices, titles, and reporting requirements), authorities,
duties, or other responsibilities as in effect immediately prior to such
assignment or any other action of the Company which results in a diminishment in
such position, authorities, duties, or responsibilities, (2) the Company
requiring Executive to be based at a location outside of Southern California, or
(3) a breach by the Company of its obligations hereunder after notice in writing
from Executive and a reasonable opportunity for the Company to correct such
conduct.

         7.     Confidential Information.

                7.1.    Executive covenants and agrees that he will not at any
time, either during the Term or thereafter, use, disclose or make accessible to
any other person, firm, partnership, corporation or any other entity any
Confidential Information (as defined below) pertaining to the business of the
Company except (i) while employed by the Company, in the business of and for the
benefit of the Company or (ii) when required to do so by a court of competent
jurisdiction, by any governmental agency having supervisory authority over the
business of the Company, or by any administrative body or legislative body
(including a committee thereof) with jurisdiction to order the Company to
divulge, disclose or make accessible such information. For purposes of this
Agreement, "Confidential Information" shall mean non-public information
concerning the Company's financial data, statistical data, strategic business
plans, product development (or other proprietary product data), customer and
supplier lists, customer and supplier information, information relating to
practices, processes, methods, trade secrets, marketing plans and other
non-public, proprietary and confidential information of the Company; provided,
however, that Confidential Information shall not include any information which
(x) is known generally to the public other than as a result of unauthorized
disclosure by Executive, (y) becomes available to the Executive on a
non-confidential basis from a source other than the Company or (z) was available
to Executive on a non-confidential basis prior to its disclosure to Executive by
the Company. It is specifically understood and agreed by Executive that any
Confidential Information received by Executive during his Employment by the
Company is deemed Confidential Information for purposes of this Agreement. In
the event Executive's Employment is terminated hereunder for any reason, he
immediately shall return to the Company all Confidential Information in his
possession.

                7.2.    Executive and the Company agree that this covenant
regarding Confidential Information is a reasonable covenant under the
circumstances, and further agree that if, in the opinion of any court of
competent jurisdiction, such covenant is not reasonable in any respect, such
court shall have the right, power and authority to excise or modify such
provision or provisions of this covenant as to the court shall appear not
reasonable and to enforce the remainder of the covenant as so amended. Executive
agrees that any breach of the covenant contained in this Section 7 would
irreparably injure the Company. Accordingly, Executive agrees that the Company,
in addition to pursuing any other remedies it may have in law or in equity, may
obtain an injunction, without the necessity of obtaining a bond or other
security, against Executive from any court having jurisdiction over the matter,
restraining any further violation of this Section 7.

         8.     Non-Solicitation.

                8.1.    During the Term and for a period of six (6) months
following the termination of this Agreement, Executive agrees that, without the
prior written consent of the Company (and other than on behalf of the Company),
Executive shall not, on his own behalf or on behalf of any person or entity,
directly or indirectly hire or solicit the employment of any employee who has
been employed by the Company at any time during the six (6) months immediately
preceding such date of hiring or solicitation.

<PAGE>

                8.2.    Executive and the Company agree that the covenants of
non-solicitation are reasonable covenants under the circumstances, and further
agree that if, in the opinion of any court of competent jurisdiction such
covenants are not reasonable in any respect, such court shall have the right,
power and authority to excise or modify such provision or provisions of these
covenants as to the court shall appear not reasonable and to enforce the
remainder of these covenants as so amended. Executive agrees that any breach of
the covenants contained in this Section 8 would irreparably injure the Company.
Accordingly, Executive agrees that the Company, in addition to pursuing any
other remedies it may have in law or in equity, may obtain an injunction,
without the necessity of obtaining a bond or other security, against Executive
from any court having jurisdiction over the matter, restraining any further
violation of this Section 8.

         9.     Notices.        All notices and other communications hereunder
shall be in writing and shall be deemed to have been given if delivered
personally or sent by facsimile transmission, overnight courier, or certified,
registered or express mail, postage prepaid. Any such notice shall be deemed
given when so delivered personally or sent by facsimile transmission (provided
that a confirmation copy is sent by overnight courier), one day after deposit
with an overnight courier, or if mailed, five (5) days after the date of deposit
in the United States mails, as follows:

If to the Company, to:              Fotoball USA, Inc.
                                    6740 Cobra Way
                                    San Diego, California  92121
                                    Telecopy: (858) 909-9901
                                    Attention: Chief Executive Officer

If to Executive, to:                Mr. Scott Dickey

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

                                    ---------------------
                                    Telecopy:
                                              -----------

         10.    Entire Agreement.  This Agreement and the Plan (as amended by
the Amendment) contain the entire agreement between the parties hereto with
respect to the matters contemplated herein and supersede all prior agreements or
understandings among the parties related to such matters.

         11.    Binding Effect. Except as otherwise provided herein, this
Agreement shall be binding upon and inure to the benefit of the Company and its
successors and assigns and upon Executive. "Successors and assigns" shall mean,
in the case of the Company, any successor pursuant to a merger, consolidation,
or sale, or other transfer of all or substantially all of the assets or Common
Stock of the Company.

         12.    No Assignment. Except as contemplated by Section 11 above, this
Agreement  shall not be assignable or otherwise transferable by either party.

         13.    Amendment or Modification; Waiver. No provision of this
Agreement may be amended or waived unless such amendment or waiver is authorized
by the Board and is agreed to in writing, signed by Executive and by a duly
authorized officer of the Company (other than Executive). Except as otherwise
specifically provided in this Agreement, no waiver by either party hereto of any
breach by the other party hereto of any condition or provision of this Agreement
to be performed by such other party shall be deemed a waiver of a similar or
dissimilar provision or condition at the same or at any prior or subsequent
time.

<PAGE>

         14.    Governing Law. The validity, interpretation, construction,
performance and enforcement of this Agreement shall be governed by the internal
laws of the State of Delaware, without regard to its conflicts of law rules.

         15.    Titles. Titles to the Sections in this Agreement are intended
solely for convenience and no provision of this Agreement is to be construed by
reference to the title of any Section.

         16.    Counterparts. This Agreement may be executed in one or more
counterparts, which together shall constitute one agreement. It shall not be
necessary for each party to sign each counterpart so long as each party has
signed at least one counterpart.

         17.    Severability. Any term or provision of this Agreement which is
invalid or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining terms and provisions of this
Agreement or affecting the validity or enforceability of any of the terms and
provisions of this Agreement in any other jurisdiction.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first set forth above.

                                            FOTOBALL USA, INC.

                                            By: /s/ Michael Favish
                                                --------------------------------
                                            Name: Michael Favish
                                            Title: Chairman and Chief Executive
                                                   Officer

                                            /s/ Scott P. Dickey
                                            ------------------------------------
                                            Scott P. Dickey

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